ILLUSTRATIVE 
      
 
 
 
 
      
0 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Report  
2020 
 
 
 
 
 
 
This document has been translated into English for the convenience of the readers. In the event of 
discrepancy, the Italian language version prevails.

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TABLE OF CONTENTS 
 
 
GLOSSARY __________________________________________________________ 4 
INTRODUCTION ______________________________________________________ 7 
MANAGEMENT AND SUPERVISORY BODIES _________________________________________ 8 
COMPANY INFORMATION _______________________________________________________ 9 
SHAREHOLDER STRUCTURE _____________________________________________________ 10 
THE COMPANY _______________________________________________________________ 11 
Our mission ________________________________________________________________ 11 
The network ________________________________________________________________ 11 
Italo’s fleet _________________________________________________________________ 12 
ITALO AND SUSTAINABILITY _____________________________________________________ 13 
The road to sustainability ______________________________________________________ 13 
Green financing for green investment ____________________________________________ 13 
Italo’s sustainability pillars _____________________________________________________ 14 
REPORT ON OPERATIONS _______________________________________________ 16 
INTRODUCTION _____________________________________________________ 17 
KEY FINANCIAL AND OPERATIONAL DATA FOR 2020 _________________________________ 19 
An overview of 2020 _________________________________________________________ 20 
Financial highlights ___________________________________________________________ 21 
Non-recurring events _________________________________________________________ 21 
FINANCIAL REVIEW ____________________________________________________________ 23 
Operating results ____________________________________________________________ 23 
Financial position ____________________________________________________________ 24 
Net debt ___________________________________________________________________ 25 
Cash flow __________________________________________________________________ 26 
INVESTMENT DURING THE YEAR _________________________________________________ 27 
KEY EVENTS DURING THE YEAR __________________________________________________ 28 
Operating activities __________________________________________________________ 28 
Financial matters ____________________________________________________________ 31 
Corporate events ____________________________________________________________ 31 
Social and cultural initiatives ___________________________________________________ 31 
THE GENERAL CONTEXT ________________________________________________________ 33 
Macroeconomic environment __________________________________________________ 33 
Market environment _________________________________________________________ 34 
THE REGULATORY FRAMEWORK _________________________________________________ 36 
Applicable EU and national rules and regulations ___________________________________ 36 
The role of the Infrastructure Manager ___________________________________________ 37 
The functions of the Regulator__________________________________________________ 37

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Conditions for the provision of rail transport services _______________________________ 37 
RISK FACTORS ________________________________________________________________ 39 
Operational risk _____________________________________________________________ 39 
Risks related to the sector in which the Company operates ___________________________ 40 
Fare evasion risk _____________________________________________________________ 42 
Strategic risk ________________________________________________________________ 42 
Risks linked to climate change __________________________________________________ 43 
Risks related to pandemic events and other exogenous factors ________________________ 43 
Litigation risk _______________________________________________________________ 44 
FINANCIAL RISKS ______________________________________________________________ 45 
Risks related to financial liabilities _______________________________________________ 45 
Liquidity risk ________________________________________________________________ 45 
Interest rate risk _____________________________________________________________ 45 
Foreign exchange risk _________________________________________________________ 46 
Credit risk __________________________________________________________________ 46 
EVENTS AFTER DECEMBER 31, 2020 _______________________________________________ 47 
OUTLOOK ____________________________________________________________________ 47 
OTHER INFORMATION _________________________________________________________ 48 
Research and development ____________________________________________________ 48 
Related party transactions _____________________________________________________ 48 
Treasury shares and shares/equity interests in parent companies ______________________ 48 
Disclosures related to the environment and personnel ______________________________ 48 
Certifications _______________________________________________________________ 49 
The Energy Efficiency Program: White Certificates __________________________________ 50 
ESG Steering Committee ______________________________________________________ 51 
Internal control ______________________________________________________________ 51 
Internal Control and Organizational Model as per Legislative Decree 231/2001 ___________ 51 
Code of Ethics _______________________________________________________________ 52 
ALTERNATIVE PERFORMANCE INDICATORS ________________________________________ 53 
PROPOSED APPROVAL OF FINANCIAL STATEMENTS AND APPROPRIATION OF PROFIT ______ 57 
FINANCIAL STATEMENTS 2020 ___________________________________________ 58 
INCOME STATEMENT __________________________________________________________ 59 
STATEMENT OF COMPREHENSIVE INCOME _________________________________________ 60 
STATEMENT OF FINANCIAL POSITION _____________________________________________ 61 
STATEMENT OF CHANGES IN EQUITY ______________________________________________ 62 
STATEMENT OF CASH FLOWS ____________________________________________________ 63 
NOTES TO THE FINANCIAL STATEMENTS ___________________________________________ 65 
1. General information _______________________________________________________ 65 
2. Reporting standards _______________________________________________________ 65 
3. Accounting policies _______________________________________________________ 66 
4. Use of estimates __________________________________________________________ 79 
5. Financial risk management _________________________________________________ 81

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6. Segment reporting ________________________________________________________ 86 
7. Revenues from transport services ____________________________________________ 86 
8. Other operating revenues __________________________________________________ 86 
9. Access and electricity costs _________________________________________________ 88 
10. Train management costs ___________________________________________________ 88 
11. Personnel costs __________________________________________________________ 88 
12. Other operating costs _____________________________________________________ 89 
13. Depreciation, amortization and impairments ___________________________________ 90 
14. Gains (losses) on disposal of non-current assets _________________________________ 90 
15. Financial income (expenses) ________________________________________________ 90 
16. Income tax ______________________________________________________________ 91 
17. Goodwill ________________________________________________________________ 92 
18. Intangible assets __________________________________________________________ 92 
19. Property, plant and equipment ______________________________________________ 93 
20. Right-of-use assets ________________________________________________________ 93 
21. Deferred tax assets________________________________________________________ 94 
22. Non-current and current asset for Contribution for COVID-19 ______________________ 95 
23. Inventories ______________________________________________________________ 95 
24. Trade receivables _________________________________________________________ 95 
25. Current tax receivables and payables _________________________________________ 96 
26. Other current and non-current assets _________________________________________ 96 
27. Current financial assets ____________________________________________________ 97 
28. Cash and cash equivalents __________________________________________________ 97 
29. Equity __________________________________________________________________ 97 
30. Current and non-current borrowings__________________________________________ 99 
31. Net debt _______________________________________________________________ 101 
32. Current and non-current lease liabilities ______________________________________ 102 
33. Employee benefits _______________________________________________________ 102 
34. Deferred tax liabilities ____________________________________________________ 104 
35. Non-current provisions ___________________________________________________ 104 
36. Trade payables __________________________________________________________ 107 
37. Deferred revenues from transport services ____________________________________ 107 
38. Other current liabilities ___________________________________________________ 107 
39. Other information _______________________________________________________ 108 
40. Disclosure required by Law 124 of August 4, 2017 ______________________________ 113 
41. Events after December 31, 2020 ____________________________________________ 113

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GLOSSARY 
 
The terms and abbreviations listed below are those most regularly used in this document. 
The following explanations should not be regarded as technical definitions but as a support for the reader 
to understand certain terms used in this document. 
 
AGCM: Autorità Garante della Concorrenza e del Mercato, Italy’s Anti-Trust Authority. 
 
AGV: the Alstom 575 high-speed train.  
 
AGV fleet: the fleet, owned by Italo, consisting of 25 AGV trains. 
 
Alstom: Alstom Ferroviaria SpA 
 
ANSFISA: Agenzia Nazionale per la Sicurezza delle Ferrovie e delle Infrastrutture Stradali e Autostradali, 
(before called ANSF - Agenzia Nazionale per la Sicurezza Ferroviaria). Italy’s Rail Safety Regulator. 
 
ART: Autorità di Regolazione dei Trasporti, Italy’s Transport Regulator. 
 
CONSOB: Italian Securities and Exchange Commission, the authority responsible for the protection of 
investors and the efficiency, transparency and development of the Italian financial market. 
 
Contract for the Use of Infrastructure: this is an annual contract between the Company and the 
Infrastructure Manager, setting out the tracks on which the Company can operate during the following 
railway year in return for payment of the fees provided for in art. 17 of Decree 112/2015. 
 
Covenant: in a loan agreement, the commitment assumed by one party, generally the debtor, to carry out 
certain actions (a positive or affirmative covenant) or to refrain from carrying out certain actions (a 
negative covenant), or to comply with certain financial ratios (a financial covenant). 
 
ERA: European Railway Agency 
 
ESG: acronym of Environmental, Social and Governance. The ESG criteria are used to measure the 
environmental, social and governance impact of companies.  
 
EVO fleet: the fleet of EVO Pendolino trains owned by Italo.  
 
EVO pendolino: the Alstom ETR 675 “EVO” high-speed train. 
 
Framework Agreement: an agreement signed by Italo and RFI on January 17, 2008, and later amended, 
setting out the terms and conditions for access and use, in terms of track and services, of Italy’s national 
railway infrastructure. 
 
GME: Gestore dei Mercati Energetici, the state-owned company responsible for managing the energy 
market. 
 
GRI: Global Reporting Initiative, an international non-profit organization that helps businesses, 
governments and other organizations disclose their sustainable performance, through a Sustainability 
Report, also known as Corporate Social Responsibility Report.    
 
GSE: Gestore per i Servizi Energetici, the state-owned company responsible for promoting the use of 
renewable energy.

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HS/HC: services or markets relating to high-speed/high-capacity rail transport for medium- and long-haul 
destinations in Italy. 
 
Intermodal service: a service provided using different forms of transport. 
 
Italo’s fleet: the fleet of high-speed trains owned by Italo, consisting of the AGV fleet and the EVO fleet. 
 
Italobus: the intermodal road transport service offered by Italo. 
 
Leverage: the ratio of Net Debt to EBITDA (defined in the section, “Alternative Performance Indicators”). 
 
Load Factor: an indicator typically used in the air and rail transport sectors. It measures the utilization of 
capacity on trains, based on the ratio of the number of kilometers travelled by the passengers transported 
to the number of available seats (pass-km/seat-km). It enables the rate of capacity utilization on aircraft 
and trains to be assessed. 
 
Lounge: a facility offering particular types of customer additional comforts, services and refreshments and 
located in the principal stations served by the Company. 
 
MED: Ministry for Economic Development. 
 
MEF: Ministry of the Economy and Finances. 
 
MIT: Ministry of Infrastructure and Transport (renamed Ministry of Sustainable Infrastructures and 
Mobility in February 2021). 
 
Minimum Access Package or MAP: the services that the Infrastructure Manager must provide to the 
Railway Undertaking in return for payment of a fee for the right to access and utilize the infrastructure, 
including: (a) the handling of requests for infrastructure capacity for the purposes of concluding Contracts 
for the Use of Infrastructure; (b) the right to utilize such capacity as is granted; (c) the use of railway 
infrastructure, including track, points and junctions; (d) train control, including signaling, train regulation, 
dispatching and the communication and provision of information on train movements; (e) electrical 
supply equipment for traction current, where available; (f) all other information as is necessary to 
implement or to operate the service for which capacity has been granted. 
 
Pass-km or passenger kilometers: an indicator used in rail transport, representing total kilometers 
travelled by the total number of passengers transported in a certain period of time. 
 
RFI or Infrastructure Manager: Rete Ferroviaria Italiana SpA, the Ferrovie dello Stato group company that 
has the public role of managing the railway infrastructure and is thus responsible for lines, stations and 
other equipment. 
 
Safety Certificate: a certificate issued by the ANSF attesting to the railway undertaking’s compliance with 
the regulations governing specific technical and operational requirements for rail services and safety 
requirements for personnel, rolling stock and the undertaking’s internal organization. 
 
Seat-km or seat kilometers: an indicator used in rail transport, representing total kilometers travelled by 
the fleet by the total number of seats offered in a certain period of time. 
 
TOE (Ton of Oil Equivalent): this represents the quantity or energy released by burning a tone of crude oil 
and is normally equivalent to approximately 42 GJ (Gigajoules).

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Train-km or train kilometers: an indicator used in rail transport, representing total kilometers travelled by 
trains in a certain period of time, used to measure the capacity offered by the operator. 
 
WCs (White Certificates) or EECs: Energy Efficiency Certificates, introduced by decree issued by the 
Minister for Productive Activities, in agreement with the Minister for the Environment and Land 
Protection, on July 20, 2004 (Ministerial Decree of July 20, 2004 for electricity and Ministerial Decree of 
July 20, 2004 for gas), as amended.

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Introduction

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MANAGEMENT AND SUPERVISORY BODIES 
 
BOARD OF DIRECTORS - in office until approval of the financial statements for 2020 
 
Chairman 
 
 
 
 
 
 
 
 
 
 
 
 
 
Luca Cordero di Montezemolo 
 
Executive Deputy Chairman 
  
 
 
Flavio Cattaneo 
 
Chief Executive Officer and General Manager  
 
Gianbattista La Rocca  
 
Directors  
 
 
 
 
 
 
 
 
 
 
 
 
 
Lucy Chadwick 
Ines Gandini  
Philip Marc Iley  
Christoph Holzer 
Michael McGhee 
Scott Allen Stanley 
 
EXECUTIVE COMMITTEE - in office until approval of the financial statements for 2020 
 
Chairman 
  
 
 
Flavio Cattaneo 
 
Members 
 
 
 
 
 
 
 
 
 
 
 
 
 
Philip Marc Iley  
Gianbattista La Rocca 
Michael McGee 
Scott Allen Stanley 
 
 
 
 
 
BOARD OF STATUTORY AUDITORS - in office until approval of the financial statements for 2020 
 
Chairman    
 
 
 
 
 
 
 
 
 
 
 
 
Giovanni Fiori  
 
Standing auditors  
 
 
 
 
 
 
 
 
 
 
Gianfranco Orlando Fiorica 
Benedetta Navarra  
Alternate auditors  
 
 
 
 
 
 
 
 
 
 
Fabrizio Bonacci 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Franco Piero Pozzi 
 
INDEPENDENT AUDITORS – engaged to audit the financial statements for the period 2020-2022 
 
Deloitte & Touche SpA 
 
ENVIRONMENTAL SOCIAL GOVERNANCE (ESG) STEERING COMMITTEE 
 
Chairman 
  
 
 
Gianbattista La Rocca 
 
Deputy Chairman 
  
 
 
Roberto Vitto 
 
Members 
 
 
 
 
 
 
 
 
 
 
 
 
 
Paolo Belforte 
Fabrizio Bona 
Gabriele Cerrati  
Federico Meda 
Nicoletta Montella 
Fabio Sgroi

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COMPANY INFORMATION 
 
Italo - Nuovo Trasporto Viaggiatori SpA 
Viale del Policlinico n. 149/b, 00161 Rome (RM) 
Share capital: €60,017,725.00, fully paid-up 
Tax code and VAT number; 09247981005 
Rome Companies’ Register: 09247981005 
Business Registration Number in Rome (R.E.A.): 1150652

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 SHAREHOLDER STRUCTURE 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
72.6%  
GIP III GLOBAL 
INVESTMENT Sàrl 
 
11.5%  
ALLIANZ Spa 
of which 10% held through Allianz 
Infrastructure Luxembourg II Sàrl 
7.7%  
REINVESTING SHAREHOLDERS: 
Luca Cordero di Montezemolo  
through MCG HOLDINGS Srl 
Flavio Cattaneo 
through PARTIND TRE Srl 
Giovanni Punzo  
through MDP TRE Srl 
Isabella Seragnoli 
through MAIS Spa 
Alberto Bombassei 
through NEXT INVESTMENT Srl 
Peninsula Capital 
through PII1 Sarl 
7.6%  
IP INFRA INVESTORS LP 
 
0.6%  
MOLAGERS

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THE COMPANY 
 
Italo is Italy’s first and only private high-speed rail operator. It is a sector leader in Europe and today Italo 
and Italian deregulation are a case study and international rail operators look to the Company's business 
model and the effects of deregulation on rail transport.    
 
Italo has proven to be a unique example of private excellence in the rail transport sector. It was founded 
in 2006, with the first commercial service effected in 2012. After the start-up phase, in 2015 the Company 
successfully entered a turnaround phase, which ended in 2018 with the listing on the stock exchange and 
the acquisition by GIP. 
 
Our mission 
 
Italo's mission is to provide passengers safe, reliable and technologically advanced high-speed rail 
services, so our strategy is focused on safety, hospitality, quality, market presence and sustainability.  
 
Italo, created at a time when the development of sustainable economy models is paramount for a 
negligible impact of human activities on the ecosystem, has a deep sustainable soul that shows in every 
activity. The Company, which aims to "make a difference" in the world of transport, has made respect for 
the person, time as a value, protection of the environment the three principles around which the idea of 
sustainability revolves. A goal that is pursued every day by providing a service able to meet the needs of 
people and the world around them in the best possible way. 
 
Italo, with its high-quality services, is ready to meet the Italy’s demand for mobility. Its value-for-money 
offering aims to enable everyone to satisfy their right to travel for work, study, business or for leisure 
purposes.   
 
Italo provides comfortable and relaxing travel options, allowing passengers to avoid the stress of having 
to take their cars, especially over longer distances and in the most congested areas. 
With its station and onboard staff, the Company has introduced a new approach to rail passengers. At all 
stages of the customer experience, from when a passenger decides to travel with Italo to when they get 
to their departure station, and while on the train, they can contact the Company, tell it their needs and 
obtain the right solution. 
 
Italo’s mission is not immutable, but envisages an ongoing improvement in the service in order to 
continuously ensure that we can provide what our customers are looking for. 
 
The network  
 
Italo connects 41 stations in 35 towns throughout Italy. 
 
Moreover, Italo is not just a train but also a strong believer in intermodal transportation. To give a further 
contribution to a sustainable lifestyle, at the end of 2015 it launched a rail-bus integrated service able to 
reach cities not served by high speed, thus allowing places without a railway to benefit from mass transit 
services.  
 
In fact, Italo also offers Italobus road transport services, thus connecting to high-speed stations several 
locations in Northern and Southern Italy. The plan contributes to reduce the use of private automobiles, 
by moving a multiplicity of people in a single journey, to the benefit of eco-sustainable mobility.

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Italo’s fleet 
  
Italo uses 25 Alstom’s AGV (Automotrice Grande Vitesse) trains that use the same traction system as the 
train that, on 3 April 2007, set the world rail speed record of 574.8 km an hour.  
The trains, built at the Savigliano (near Cuneo) and La Rochelle (FRA) plants, first took to the rails of the 
Italian railway network in April 2012. 
  
Since inception, Italo has invested in an advanced-conception, innovative and sustainable train, which is 
98% made of such recyclable materials as aluminum, steel, copper and glass. The AGV combines 
technology, safety, energy savings and respect for the environment.  
 
Starting in 2015, the Company purchased also 22 EVO trains from Alstom, for a total fleet of 47 trains.  
The Italo EVO trains are the latest version of the "Pendolino" range, of which more than 500 trainsets are 
in circulation around the world. This "evolution" aims to improve the comfort for passengers. In addition, 
this particular train is fully compatible with the latest 2014 Technical Specifications for Interoperability 
(TSI-2014), and complies with all European and Italian safety and environmental regulations. 
 
In keeping with the AGV fleet, also the EVO trains are “green”, as they are manufactured with recyclable 
materials and are designed in accordance with eco-sustainability criteria to reduce CO2 emissions. The 
distributed traction system improves efficiency and recovers energy by regenerative braking. 
 
 
 
 
 
 
 
 
 
 
41 
stations 
connected 
35 
cities 
served 
 
47 
fleet 
trains

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ITALO AND SUSTAINABILITY 
 
Since the foundation of the Company, has been strongly committed to respecting and protecting the 
environment: from the choice of fleet of electric trains, the best in class, built with recyclable materials, to 
its approach to environmental protection, which provides for participation in initiatives aimed also at 
increasing awareness of the best ways to save energy. 
 
This behavior, which is part of Italo’s DNA, has led the Company to take an interest in all ESG issues, 
making its commitment to sustainable transport stronger every day. 
Italo's attention to ESG issues is in fact not only a question of added value, but also a necessary condition 
to ensure a sustainable future and fair development. 
 
The COVID-19 pandemic has had a strong impact on the Company’s business, as it faces the most difficult 
challenge of its life. The transport industry has experienced a profound crisis that has had a strong impact 
on Company activities and its financial performance. Nevertheless, Italo has maintained vital connections 
even in the most critical months of the emergency, ensuring health and safety for both our passengers 
and our employees. In addition, in order to respond to the COVID-19 emergency, the Company has put in 
place several initiatives aimed at mitigating the consequences of the pandemic on its staff and customers. 
 
The Company is proud of its contribution to the community and is committed more than ever to 
implementing its sustainability strategy.   
 
The road to sustainability 
 
Sustainability has accompanied Italo's growth since its foundation and has been one of the hallmarks of 
the Company.  
Over the years, Italo has progressively expanded its commitment to build a fully sustainable business and 
has embarked on a path that will lead the company to further integrate sustainability into its corporate 
strategy and to make progress in the development of its Corporate Social Responsibility (“CSR”). 
 
In view of these goals, in 2020 the Company achieved several milestones:  
• it expanded its corporate governance, appointing new bodies responsible for managing ESG issues (the 
ESG Steering Committee and the ESG Teams). 
• It carried out a Materiality Analysis to identify issues that reflect ESG impacts that are significant to the 
Company or that may influence stakeholder assessments and decisions. 
• It transformed the €1.1 billion Green Loan, making it sustainable. 
• It produced its third Sustainability Report which represents a further evolution in transparency and 
dissemination, adopting for the first time the GRI Sustainability Standards. 
• It defined its three-year Sustainability Plan, on the basis of six pillars: Environment, Safety, Quality of 
Service, People, Community and Territory, Engagement. 
 
Green financing for green investment 
 
In 2019, the Company received a €1.1 billion Green Loan, the largest ever in the transport sector 
worldwide, with the chance to change it to a Sustainability-Linked Loan, marking an unprecedented 
turning point in green financing for the transport sector.  
The loan, which was provided by a syndicate of Italian and international banks, was used to re-finance 
Italo's €900 million green investments and to further expand its modern and efficient fleet. 
Italo has proven to be a mass transport operator that uses a fleet of best-in-class eco-friendly trains and a 
leader in environmental sustainability in the high-speed rail market. This qualifies it as a "pure player", 
that is a company whose revenues are generated entirely by activities that involve a low level of CO2 
emissions and that is therefore able to combat climate change.

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Among the key factors that contributed to this great result, the environmental performance of its AGV 
fleet and the Company's high environmental standards played a decisive role: 
• the high percentage of recyclable materials used in train production; 
• about 81% and 95% lower CO2 emissions than car and air transport, respectively; 
• modern regenerative braking of the trains that leads to energy savings; 
• noise reduction lower than the most restrictive limits applicable; 
• energy consumption 10% lower than that of other high-speed trains; 
• adoption of a paperless policy with over 36,000 kg of paper saved, the equivalent of 62,220 kg of CO2, 
bringing paper consumption to only 5% of the original usage levels. 
 
In 2020, the Company converted the Green Loan in a Sustainability Linked Option receiving approval from 
the lenders required for the sustainability KPIs identified. Accordingly, the loan agreement can be 
classified as "green" and "sustainable". 
 
Italo’s sustainability pillars 
 
Environment - In recent years, the reduction of emissions, including greenhouse gases (GHGs), fine dust 
and noise, has become a priority for mobility providers. In 2017, transport accounted for a quarter of total 
energy-related CO2 emissions in the EU. However, only 0.5% of these emissions came from the rail sector, 
a sign of the increased energy efficiency due to the use of electricity for rail transport traction compared 
to other modes of transport.  
  
The policy adopted since inception by Italo in the choice of fully-electric AGV trains was also followed for 
the expansion of the fleet with the EVO trains. The energy efficiency of Italo's new trains has been, in fact, 
a fundamental element to mitigate the energy impact of increased operational capacity and made it 
possible to increase energy consumption and scope 2 emissions. 
 
Overall, Italo’s fleet saves 140 million kWh a year, compared to the baseline of reference.  
 
Safety 
 
Together with the quality of service, safety is not only a key element of Italo’s commitment to its 
employees, but also a value of its culture. Safety therefore involves both ensuring a safe workplace for 
employees and collaborators, and a safe journey for passengers, helping to minimize risks. This dual 
nature of how safety is understood by Italo is confirmed by the two objectives which the Company has 
decided to set for itself in this area: to ensure maximum safety for workers and passengers. 
 
Quality of service   
 
Customers are central in Italo's culture. The perspective of passengers is the primary and most important 
feedback for a business that is based on travelers’ satisfaction. 
Italo has studied a tool to measure customer experience and the strong results obtained so far have 
fueled the Company's ambition to continue to improve its performance in the coming years to further 
increase the percentage of travelers fully satisfied with the quality of service. 
 
People  
 
People are a key asset of business success, especially in the railway sector, which requires constant skill 
upgrading for operators. This makes training one of the most critical aspects of Italo's business. In 
addition to the mandatory courses provided by law, employees attend additional hours of non-
compulsory training.

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For this reason, the Company has decided to establish a highly specialized internal department focused on 
technical and regulatory issues, namely the Training School, which represents a feather in the cap for the 
Company.  
 
Community and Territory 
 
Italo was born as an Italian excellence and the link with the community has always been a distinctive 
feature of its identity and corporate strategy, a fundamental pillar of the strategy of sustainability. 
The Company's contribution to local realities is twofold and concerns the impact on the community 
through social and cultural projects, and the impact on the economy through its supply chain. In both 
areas, Italo considers shared value fundamental for its development and struggles to maximize it through 
a business strategy that takes the common good into account. 
 
Commitment 
 
Italo operates in a strategic business for the Italian economy and society. Therefore, a responsible, 
transparent and active relationship with all its stakeholders is of the utmost importance, especially with 
regard to sustainability. For this reason, Italo directs its sustainability commitment to its stakeholders, to 
make continuous dialogue with them the basis of every strategic development.

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Report on 
operations

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INTRODUCTION 
 
Fiscal year 2020 was characterized by the exceptional health, socio-environmental and economic 
situation, of extraordinary complexity, due to the spread of the COVID-19 virus (i.e. "Coronavirus") on a 
global scale. 
 
The spread of the pandemic has generated from the early months of the year a strong pressure on the 
country's health system and the consequent enactment by the Government Authorities of a series of 
measures restricting mobility, including lockdown, to limit the risk of further expansion of the virus among 
the population. As a result, the COVID-19 emergency has progressively had disruptive effects on the 
regular and ordinary performance of the Company's activities.  
 
In particular, with the spread of coronavirus, the transport market has experienced significant declines in 
the volumes of passengers transported overall. Particularly affected is the AV long-distance rail transport 
service which, in addition to the loss of demand related to the general pandemic situation and the 
restrictive measures introduced, has lost 50% of saleable km seats imposed by the Government 
authorities as a further measure to contain the contagion in May.  
 
Only from mid-May until the first half of September, with the reduction of lockdown measures and the 
progressive reduction of mobility restrictions, first within the regions and then between regions - was 
there a slight recovery in traffic volumes. However, for the long-distance sector, the 50% limitation of 
marketable km seats continued also in those months. 
 
Since October, a second wave of infections has forced Government Authorities to introduce new 
restrictive mobility measures that have lasted until the end of the year, resulting in a decrease in the 
volumes of passengers transported. 
 
From the start, the Company was strongly engaged in the operational management of the emergency 
situation, to guarantee the health and safety of its employees and travelers.  
 
To ensure the essential protection its assets, as well as its operating and financial stability, the Company 
reacted by taking immediate measures to mitigate the effects of events of an extraordinary nature that 
occurred progressively during 2020, taking numerous actions aimed at increasing resilience to the new 
scenario, leveraging a solid financial position, a flexible business model capable of mitigating the 
downturn and its battle-tested managerial skills, with the support of the entire shareholder base. 
 
In order to ensure the effectiveness, efficiency and speed of implementation of Company initiatives aimed 
at overcoming the COVID-19 emergency, the Company has set up working groups to: 
• implement initiatives aimed at preserving contact with customers and stakeholders in view of a 
continuing relationship; 
• plan the reactivation of the Company’s operational and commercial process; 
• safeguard and bring to bear the relationship with employees, developing appropriate information, 
dialogue and sharing initiatives, and ensuring the constant involvement and alignment of people in 
view of a turnaround; 
• prepare scenario simulation models in order to test dynamically the operating and financial adequacy 
of the initiatives. 
 
While ensuring the necessary support for the mobility of the population, management has adopted a 
system of modulation of its offering able to adapt the services provided at each stage of the epidemic, 
providing for the targeted suspension of non-productive services and the opening of new services 
previously not carried out.

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In addition, thanks to the support of the commercial partners, it was possible to review contractual terms 
and conditions according to the reduction of business activities, an action that made it possible to 
partially make up for the significant decrease in cash inflows. 
 
The use of the worker assistance programs made available by the Government also had an impact on 
personnel costs, reducing it according to the new levels of business and the temporary suspension of 
certain activities, which by their nature cannot be carried out via remote working. In order to financially 
support its employees, the Company has decided to advance to workers the funds to be disbursed by the 
redundancy fund.  
The Company has also signed with the national trade unions a "Defensive Solidarity Contract” for the 
reduction of employees' working hours in order to manage the temporary decline of Company business. 
It should also be noted that Article 214 of Law Decree 34 of May 19, 2020 (cd. "Turnaround Decree") 
introduced relief in the amount of €1,190 million (i.e. "COVID-19 grant") for companies that provide rail 
passenger and freight transport services not subject to public service obligations to make up for the 
adverse financial effects of the COVID-19 emergency suffered until July 31, 2020 (1st tranche). Any 
resources available following the allocation of the first tranche are reallocated to companies requesting it 
to make up for the losses suffered from August 1, 2020 to December 31, 2020 (2nd tranche).  
The 2021 Budget Law then made additional resources to the sector (420 million) available to make up for 
the losses suffered from January 1 to April 30, 2021 (3rd tranche). 
The procedures for the disbursement of the COVID-19 grant have been defined by the Ministry of 
Infrastructure and Transport in consultation with the Ministry of the Economy and Finances through Inter-
ministerial Decree 472 of 22 October 2020. The Inter-ministerial Decree also lays down, among other 
things, the criteria and procedures by which the beneficiary companies report the losses suffered.  
Grants will be disbursed to each beneficiary company in fifteen annual instalments. The sums receivable 
can be sold pursuant to article 1260, paragraph 1, of the Italian Civil Code.  
  
Finally, it should be noted that, as a result of the economic effects of the Covid-19 global pandemic 
emergency, an impairment test has been carried out in keeping with IAS 36 – "Impairment of assets". The 
results of this test did not show the need for a devaluation of the assets of the companies.

ITALO| ANNUAL REPORT | 2020     
              REPORT ON OPERATIONS | FINANCIAL STATEMENTS | NOTES  
 
      
19 
 KEY FINANCIAL AND OPERATIONAL DATA FOR 2020 
 
Key financial and operational data for 2020 and 2019 are shown below. 
 
(€m, as ratios and in %) 
2020 
2019 
Change 
Δ % 
Operating performance 
  
 
 
 
Total Operating Revenue  
413.5 
715.3 
(301.8) 
(42.2%) 
Revenues from Transport Services  
262.9 
680.6 
(417.7) 
(61.4%) 
Net Revenues from White Certificates 
0.7 
29.8 
(29.1) 
(97.7%) 
Other Revenues 
149.9 
4.9 
145.0 
2952.8% 
EBITDA 
111.8 
292.2 
(180.4) 
(61.7%) 
EBITDA margin 
27.0% 
40.8% 
(13.8pp) 
n.a. 
Organic EBITDA 
111.1 
262.4 
(151.3) 
(57.6%) 
Organic EBITDA margin 
26.9% 
38.3% 
(11.4pp) 
n.a. 
EBIT  
51.7 
235.7 
(184.0) 
(78.1%) 
EBIT margin 
12.5% 
33.0% 
(20.5pp) 
n.a. 
EBT 
35.6 
199.7 
(164.1) 
(82.2%) 
EBT Margin 
8.6% 
27.9% 
(19.3pp) 
n.a. 
Profit for the year 
31.9 
151.4 
(119.5) 
(79.0%) 
Profit margin 
7.7% 
21.2% 
(13.5pp) 
n.a. 
Financial position 
  
 
 
 
Net Working Capital 
(154.0) 
(222.1) 
68.1 
(30.7%) 
Non-current Assets   
2,955.3 
2,817.8 
137.6 
4.9% 
Net Non-current Assets  
2,873.7 
2,766.6 
107.2 
3.9% 
Net Invested Capital   
2,719.8 
2,544.4 
175.4 
6.9% 
Liquidity 
206.8 
93.2 
113.6 
121.9% 
Current financial assets   
20.2 
80.2 
(60.0) 
(74.8%) 
Current and non-current borrowings 
1,101.2 
900.2 
201.0 
22.3% 
Gross Debt 
1,152.8 
954.2 
198.6 
20.8% 
Net debt 
925.8 
780.8 
145.0 
18.6% 
Investment 
71.4 
144.7 
(73.3) 
(50.6%) 
Total Assets 
3,243.9 
3,041.5 
202.4 
6.7% 
Equity  
1,793.9 
1,763.6 
30.3 
1.7% 
Financial ratios 
  
 
 
 
Net debt / Equity  
0.5x 
0.4x 
0.1x 
n.a. 
Net debt / EBITDA 
8.3x 
2.7x 
5.6x 
n.a. 
Operational indicators 
  
 
 
 
Passengers (in millions) 
6.6 
20.1 
(13.5) 
(67.2%) 
Commercial offering (millions of train-km) 
14.2 
22.4 
(8.2) 
(36.7%) 
AGV fleet (at year end) 
                        25  
25 
- 
0.0% 
EVO fleet (at year end) 
                        22  
19 
3 
15.8% 
Total AGV + EVO fleet (at year end) 
                        47  
44 
3 
6.8% 
Workforce at year end (number) 
1,369 
1,420 
(51) 
(3.6%) 
 
A number of figures shown in the table constitute Alternative Performance Indicators, as defined in the 
section, “Alternative Performance Indicators” below.  
In addition, the financial data shown in this document is presented in millions of euros, and has been 
rounded with respect to the corresponding amounts in the financial statements for the year ended 
December 31, 2020, presented in euros. The totals for certain financial indicators may thus differ slightly 
from the effective mathematical totals and/or corresponding amounts in euros included in the financial 
statements for the year ended December 31, 2020.

ITALO| ANNUAL REPORT | 2020     
              REPORT ON OPERATIONS | FINANCIAL STATEMENTS | NOTES   
 
 
                            
                                                                                 20 
 
An overview of 2020  
 
The year just ended was characterized by two extraordinary events not foreseen in the Company's 
business plan: the Frecciarossa train derailment, which occurred on February 6, 2020 near Lodi, which 
made the rail line AV Milano – Bologna involved in the accident inaccessible until March 2, 2020, and the 
COVID-19 health emergency. 
 
The emergency situation caused by the COVID-19 pandemic has been very difficult for Italy and other 
countries to deal with, not only in terms of healthcare but also from an economic point of view. In fact, it 
was an anomalous and sudden recession that affected especially services, tourism and the restaurant 
sector. Italy was hard hit by the shortage of both domestic and foreign tourism. The transport sector was 
then particularly affected, due to the mobility restriction measures introduced. This in addition to the 
decrease in business travel, also as a result of the adoption of agile working (i.e. remote working) which 
has led to a contraction in the use of public transport. 
 
Passenger demand was down sharply compared to the previous year. Assuming that customers were 
divided into three main categories (i.e. business travelers, leisure travelers, including those who travel to 
visit family and friends, and international travelers), there was an 80-90% decrease in business travel 
compared with the previous year. On the other hand, as far as passengers that travel to visit family and 
friends are concerned, the decrease is about 55% compared to the previous year, also due to the 
measures that have imposed social distancing. There was almost no international traffic.  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
From an operational point of view, the Company's activity has been characterized by speed of action and 
flexibility in increasing or decreasing its offering, depending on the changes in a demand closely related to 
the epidemiological situation.  
The Italobus service was temporarily interrupted due to the contraction of market demand and the failure 
of travelers to use the bus to cover medium and long distances. 
Lastly, with the delivery of two new Pendolino, the EVO fleet reached 22 trains, bringing the total of the 
Italo fleet to 47. 
  
From an operating point of view, the early months of the year were marked by a drastic reduction in 
operating revenues, with significant repercussions on margins, which were negative for the first time in 
years. It was only from June that cumulative EBITDA returned to moderately positive, and thanks to the 
slight growth in passenger traffic in the summer months and the cost control actions implemented by 
management. This metric continued to be positive until the end of the year, despite the further restrictive 
measures in place from September to December. 
At year-end 2020, the EBITDA Margin stood at 27.0%, down 13.8 percentage points from the previous 
year.  
 
€71m 
investment 
 
 
-50.6% 
€145m in 2019 
 
 
6.6 m 
Passengers 
 
 
-67.2%  
20.1m in 2019 
 
€112m  
EBITDA 
 
 
-61.7% 
€292m in 2019 
 
€413m 
Operating  
revenue 
 
-42.2% 
€715m in 2019

ITALO| ANNUAL REPORT | 2020     
              REPORT ON OPERATIONS | FINANCIAL STATEMENTS | NOTES  
 
      
21 
From a financial standpoint, in light of the progressive results achieved during the year, and the scenario 
of deep uncertainty, the Company considered appropriate to ask its lenders – which gave their consent - 
for a waiver to reschedule its repayments under the new scenario. Moreover, to support liquidity, the 
Company drew down the full amount of its €200 million revolving line of credit. 
 
Financial highlights 
 
The following operating and financial performance was recorded in 2020: 
 
• Operating revenue amounted to €413.5 million, with a reduction of 42.2% compared to 2019. 
Transport service revenues fell by 61.4%, due to the significant impacts of the lockdown caused by 
COVID-19. This reduction was due to the decrease in the number of passengers transported compared 
to the previous year (-67.2%). This decrease was somewhat offset by the Government grants provided 
to support the rail sector, whose fair value is €141.2 million.  
 
• EBITDA amounted to €111.8 million, a reduction of 61.7% compared to the previous year and a margin 
of 27.0%, also down 13.8 percentage points compared to 2019. This without considering the 
contribution of White Certificates and other non-recurring items, EBITDA amounted to €111.1 million, 
which was down 57.6% compared to the previous year, representing on 26.9% of revenues, down 11.4 
percentage points compared to 2019. 
 
• EBIT stood at €51.7 million, with a negative change of 78.1% (-€184.0 million) compared to 2019. 
 
• Profit for the year amounted to €31.9 million, a reduction of 79.0% (-€119.5 million) compared to the 
previous year. 
 
• Investments for 2020 amounted to €71.4 million (€144.7 million in 2019). 
 
• Net debt amounted to €925.8 million, an increase of €145.0 million (+18.6%) on the previous year 
mainly as a result of the reduction in liquid assets determined by the sharp contraction in revenues. 
 
Non-recurring events 
 
Two extraordinary events not foreseen in Italo's business plan had a large impact on the Company's 
business in 2020, the Trenitalia railway accident (Frecciarossa no. 9595), which took place near Lodi on 
February 6, 2020, and, subsequently, the occurrence of a completely extraordinary and unpredictable 
event, attributable to force majeure, such as the spread of the COVID-19 epidemic. 
 
The Frecciarossa train derailment made the rail line involved in the accident (AV Milano – Bologna) 
inaccessible until March 2, 2020, forcing the cancellation of a large number of daily journeys by Italo. 
 
Starting in February 2020, with the first local lockdown measures, transport demand began to experience 
a sharp contraction, finally drying up with the national lockdown on March 9, 2020. In March, April and 
May there was an average reduction in the number of passengers transported and revenues of 94%. 
 
The lockdown ended on 3 June and, as restrictive measures were eased, there was a slow recovery in 
transport demand which, however was still 50% lower than the comparable level in 2019, also due to the 
social distancing measures enacted for long-distance rail travel.     
 
In the period from October to December, given the new increase in COVID-19 cases in Italy, containment 
measures were again and abruptly imposed. Thus triggering a new decline in demand that, in November 
and December 2020, was again down by about 95%, compared to 2019, given:

ITALO| ANNUAL REPORT | 2020     
              REPORT ON OPERATIONS | FINANCIAL STATEMENTS | NOTES   
 
 
                            
                                                                                 22 
• the establishment of the division of Italy into regions of different colors according to the level of 
severity and risk associated with the pandemic. In particular, a ban on entry and exit from/from other 
regions was established for "red" and "orange" regions. This mechanism has in fact had the same 
effect as the total lockdown for AV rail transport, since, by definition, the reference market for the AV 
segment is of national importance and, moreover, regions such as Lombardy, Piedmont, Veneto and 
Campania, important parts of Italo's network, were attributed an orange or red color from the 
beginning; 
• as of December 21, 2020, the ban on travel between regions was established regardless of the 
category of risk and the color attributed to each of them. 
The lower demand for transport is not only due to the implementation of measures such as the restriction 
of travel between regions (total lockdown between March-May and October-December) and the 
restriction on the capacity of trains (continuously in force since 26 April 2020), but also to the direct 
effects determined by all other containment measures, such as: 
• the closing or limitation of industrial, productive and commercial activities, together with the 
recommendation to use remote working (mandatory for Government offices) and to limit business 
travel, led to a sharp contraction of demand by the business segment; 
• the closing or limitation of tourist, cultural, concert and recreational activities led to a reduction in 
demand by the leisure segment; 
• the regulation on access from abroad, together with the pandemic emergency situation of other 
European and non-European countries, wiped out international tourism; 
• the closing of universities or the implementation of distance learning led to the reduction of demand 
for travel by students and their families. 
Finally, the mere continuation of the state of emergency and the communication activity aimed at raising 
public awareness of the health risks associated with the sociality and mobility of people, has had an 
immediate and direct impact on mobility in general, and in particular on that which entails the use of 
public transport. 
 
In the face of the health emergency, Italo was able to quickly modulate the daily trips that, starting from 
110 when fully operational, were progressively reduced and then gradually increased from the end of 
May / beginning of June, at the same time as the elimination of the ban on interregional travel, and 
subsequently reduced again with the second epidemiological wave begun in October.  
 
The trains also circulated in compliance with the social distancing measures imposed by the Government, 
with the consequence that the Company could provide only 50% of the seats available on board.  
 
In addition to the remodulation of the number of services offered, the Company has put in place 
additional measures to reduce the impacts of the health emergency on the business, including disciplined 
management of both variable and fixed costs.  
 
Regarding the reduction of variable costs, the Company's ability to reduce the offering of service in a 
timely manner with a positive effect on the two main variable costs - the infrastructure access fee and 
electricity costs, both of which fell significantly due to the contraction of the service offered - has played a 
decisive role. Equally important was the reduction of the infrastructure access fee ordered by the 
Government, to the benefit of rail companies that provide services in the open market.  
 
The reduction of services had also an impact on the costs related to the operation of trains, cleaning 
services, bar and catering service on board. Attention is called, however, to an increase in certain costs 
caused by the need to adopt the safety measures required by the Government in relation to the health 
emergency. 
 
Lastly, other important results have been achieved in terms of personnel costs, achieved through: (i) 
adherence to the wage guarantee fund and (ii) the signing of the "Defensive Solidarity Contract".

ITALO| ANNUAL REPORT | 2020     
              REPORT ON OPERATIONS | FINANCIAL STATEMENTS | NOTES  
 
      
23 
FINANCIAL REVIEW 
 
Operating results 
 
The difficult health and socio-environmental situation due to the pandemic emergency caused by the 
COVID-19, which has been amply illustrated previously and, in particular, the lockdown measures 
imposed both nationally and internationally, have greatly affected the performance of 2020, which was 
generally painful.  The Company implemented a plan to rationalize its offer by guaranteeing an offer that 
always meets the country's mobility needs. 
 
The table below shows the main operating results for 2019, compared with the previous year.  
 
OPERATING RESULTS (€m) 
2020 
2019 
Change 
Δ % 
Operating revenue 
413.5 
715.3 
(301.8) 
(42.2%) 
of which Revenue from transport services  
262.9 
680.6 
(417.7) 
(61.4%) 
of which Net revenue from White Certificates   
0.7 
29.8 
(29.1) 
(97.7%) 
of which Other revenue 
149.9 
4.9 
145.0 
2952.8% 
Operating costs 
(301.7) 
(423.1) 
121.4 
(28.7%) 
EBITDA    
111.8 
292.2 
(180.4) 
(61.7%) 
Amortization, depreciation, impairments, gains 
and losses on disposal of non-current assets  
(60.2) 
(56.5) 
(3.7) 
6.5% 
EBIT  
51.7 
235.7 
(184.0) 
(78.1%) 
Net financial income (expenses)  
(16.1) 
(36.0) 
19.9 
(55.3%) 
EBT   
35.6 
199.7 
(164.1) 
(82.2%) 
Income tax  
(3.7) 
(48.3) 
44.6 
(92.3%) 
Profit (loss) for the year  
31.9 
151.4 
(119.5) 
(79.0%) 
 
The net result for the year was sharply down from the comparable year-earlier figure, but was 
nonetheless positive, as it amounted to €31.9 million. 
 
Operating revenue of €413.5 million is down €301.8 million (-42.2%) compared with 2019.  
 
The decrease is driven by Revenues from transport services (-61.4%) as a result of the reduction in traffic 
volumes in terms of Trains/Km due mainly to the pandemic. The sharp contraction in revenues from 
transport services was offset only in part by the COVID-19 grant. The sum, which is meant to compensate 
the Company for the losses suffered until June 30, 2020, amounts to €145.6 million and contributes 
€141.2 million to the operating revenues for the year, in view of the fact that the collection will take place 
in annual instalments from 2021 to 2034, considering that the grant will be received in 15 annual 
instalments until 2034. The grant applicable to the second period (until December 31, 2020) was not 
recognized in the year under review, as it did not meet the requirements for recognition under IAS 20, the 
applicable standard.   
 
Revenues from White Certificates also fell (down €29.1 million). This was mainly due to the fact that, 
compared to the previous year, 2020 did not benefit from the contribution of the White Certificates 
related to the energy savings of the AGV fleet, whose project ended in 2019.  
As to the EVO fleet, however, there is a reduction linked to the lower circulation of trains due to the 
pandemic.  
 
Other revenue rose by €145.0 million, reflecting mainly the government grants provided to compensate 
for the losses incurred due to the pandemic.

ITALO| ANNUAL REPORT | 2020     
              REPORT ON OPERATIONS | FINANCIAL STATEMENTS | NOTES   
 
 
                            
                                                                                 24 
Operating costs amounted to €301,7 million and decreased by €121.4 million (-28.7%), also thanks to the 
measures implemented by the Company to contain costs in response to the health emergency.  
 
EBITDA decreased by 61.7%, to €111.8 million, compared to €292.2 million reported at the end of 2019, 
with a notable decline in the related margin, compared to the previous year (-13.8 percentage points). 
This decrease is due to the already commented drop in operating revenues, which could be offset only in 
part by the reduction in operating costs generated by the activation of all the necessary actions aimed at 
dealing with the aforementioned emergency and the relief obtained to support the Company's transport 
services. 
 
EBIT was down €184.0 million (-78.1%) compared to 2019, amounting to €51.7 million, after deducting 
amortization, depreciation and provisions for €60.2 million, which remained largely unchanged.  
  
EBT of €35.6 million is down €164.1 million compared with the €199.7 million of 2019. In terms of EBT 
margin, the decrease is 19.3 percentage points, going from 27.9% in the previous year to 8.6% in 2020.  
 
Net financial expense of €16.1 million is down €19.9 million compared with the previous year (-55.3%). 
 
Income tax decreased by €44.6 million (-92.3%) compared to 2019, amounting to €3.7 million, due to the 
deterioration of the results which resulted in the formation of deferred tax assets.    
 
Profit for the year totals €31.9 million, down €119.5 million (79.0%) compared to the previous year. In 
terms of margin, net profit accounted for 7.7% of revenues, which was 13.5 percentage points lower than 
the comparable figure for 2019. 
 
Financial position 
 
The table below shows key financial data for 2020, compared with data for the previous year.  
 
FINANCIAL POSITION (€m) 
2020 
2019 
Change 
Goodwill  
1,683.8 
1,683.8 
- 
Intangible assets   
108.8 
115.5 
(6.6) 
Property, plant and equipment 
970.1 
946.5 
23.6 
Right-of-use assets 
46.8 
52.5 
(5.7) 
Deferred tax assets  
23.4 
19.5 
3.9 
Non-current asset for Contribution for Covid-19 
122.5 
- 
122.5 
A. Non-current assets  
2,955.3 
2,817.8 
137.6 
Inventories  
0.8 
10.1 
(9.3) 
Trade receivables  
2.4 
8.3 
(5.9) 
Current tax receivables  
- 
- 
- 
Current asset for Contribution for Covid-19 
18.8 
- 
18.8 
Other current assets   
39.6 
31.9 
7.7 
Trade payables  
(145.3) 
(188.8) 
43.5 
Current tax payables 
(7.6) 
(14.2) 
6.6 
Deferred revenues from transport services 
(34.6) 
(44.6) 
10.0 
Other current liabilities 
(28.2) 
(24.8) 
(3.4) 
B. Net working capital  
(154.0) 
(222.1) 
68.1 
Employee benefits 
(20.4) 
(16.9) 
(3.5) 
Deferred tax liabilities  
(27.5) 
(30.3) 
2.8 
Non-current provisions 
(33.7) 
(4.1) 
(29.6)

ITALO| ANNUAL REPORT | 2020     
              REPORT ON OPERATIONS | FINANCIAL STATEMENTS | NOTES  
 
      
25 
C. Other assets (liabilities)  
(81.6) 
(51.2) 
(30.4) 
D. Net invested capital (A+B+C)  
2,719.8 
2,544.4 
175.4 
  
  
    
E. Net debt  
925.8 
780.8 
145.0 
 
  
 
 
F. Equity 
1,793.9 
1,763.6 
30.3 
 
  
 
 
G. Total sources of financing (E+F)  
2,719.8 
2,544.4 
175.4 
 
Non-current assets, which is up €137,6 million on the previous year, amounts to €2,955.3 million and 
include mainly of goodwill (€1,683.8 million) and other intangible assets (€95.6 million, consisting of 
“Customer Relationships”, totaling €75.4 million, and the Italo trademark, amounting to €20.2 million, 
gross of deferred tax liabilities of €30.3 million at the reporting date), which were recognized as non-
current assets following the merger completed in 2019.  
A major portion of the Company’s non-current assets is represented by its owned rolling stock, whose 
historical cost, inclusive of all its components, at December 31, 2020 amounts to €1,191.2 million, with an 
increase of €65.0 million in 2020 due to the expansion of the EVO fleet. 
The increase recorded during the year mainly originates from the recognition in the assets of the portion 
of the contribution to compensate for the damages suffered as a result of the Coronavirus, the regulation 
of which is expected in subsequent years until 2034. 
 
Net working capital is a negative €154.0 million. The retail nature of the business means that working 
capital is generally negative, due to the fact that most customers pay in advance for the service they then 
subsequently use. This results in a low amount of trade receivables compared with the volume of sales. In 
contrast, current liabilities, and above all trade payables, reflect payment terms for suppliers that are 
normally extended with respect to the date of supply. As a result, the value of current liabilities, and 
above all trade payables, tends to remain above the value of current assets. 
Compared to the previous year, there was a decrease of €68.1 million that reflects the events for the year 
and is mainly due to the lower trade payables and the lower deferred income for transport services to be 
provided, consistent with the significant reduction in activity due to the measures ordered by the 
competent Authorities for the containment of the COVID 19 health emergency. 
 
Other assets and liabilities recorded a change on €30.4 million due to the increase of liabilities. 
 
Net invested capital of €2,719.8 million, which is covered by equity of €1,793.9 million and net debt of 
€925.8 million. 
Compared to the previous year-end, there was an increase of €175.4 million mainly attributable to the 
increase in Net Debt and, residually, to the increase of equity resulting from the profit for the year.    
 
Net debt 
 
An analysis of net debt as of December 31, 2020, compared with amounts for the end of the previous 
year, is shown below.  
 
NET DEBT (€m)  
               2020  
               2019  
Change 
A. Cash   
1.1 
3.9 
(2.8) 
B. Other cash equivalents  
205.7 
89.3 
116.4 
C. Securities held for trading  
- 
- 
- 
D. Liquidity (A + B + C)  
206.8 
93.2 
113.6 
E. Current financial assets   
20.2 
80.2 
(60.0) 
F. Current bank borrowings  
- 
- 
-

ITALO| ANNUAL REPORT | 2020     
              REPORT ON OPERATIONS | FINANCIAL STATEMENTS | NOTES   
 
 
                            
                                                                                 26 
G. Current portion of non-current borrowings  
3.9 
2.4 
1.5 
H. Other current financial liabilities  
7.7 
5.8 
1.9 
I. Current debt (F + G + H)  
11.6 
8.2 
3.3 
J. Net current debt (I - E - D)   
(215.4) 
(165.1) 
(50.3) 
K. Non-current bank borrowings  
1,097.3 
897.8 
199.6 
L. Notes issued  
- 
- 
- 
M. Other non-current liabilities  
43.9 
48.2 
(4.3) 
N. Non-current debt (K + L + M)  
1.141.3 
946.0 
195.3 
O. Net debt (J + N)   
925.8 
780.8 
145.0 
 
Net debt of €925.8 million is up €145.0 million compared with December 31, 2019 mainly due to a 
decrease in cash inflows determined by the Covid-19 pandemic.  
The €113.6 million increase in cash was due to the utilization of the full amount of the €200 million of the 
revolving line of credit and the cash inflows from disposal of short-term financial assets for €60.0 million. 
All considered, a decrease of €146.4 million in cash and cash equivalents at year end is registered. 
 
The above is reflected by the change in the “Net debt/EBITDA” ratio, which went from 5.6x to 8.3x (2.7x 
in 2019), due both to the increase in net debt and the decrease in EBITDA.  
 
Also, the “Net debt/Equity” ratio deteriorated somewhat, as it went from 0.4x in 2019 to 0.5x in 2020.    
 
Cash flow 
 
The table below shows a summary of the cash flow statement for the years ended December 31, 2020 
and 2019. 
 
CASH FLOW (€m) 
 
2020 
2019 
Change 
Cash flow from/(for) operating activities  
 
(76.0) 
283.6 
(359.6) 
Cash flow from/(for) investing activities    
 
(7.4) 
(235.8) 
228.4 
Cash flow from/(for) financing activities    
 
197.0 
(243.6) 
440.6 
Total net cash generated/(used) during the period   
 
113.6 
(195.8) 
309.4 
 
There was a net cash inflow of €113.6 million in 2020, thanks to the positive impact of the cash inflow 
from operating activities which more than offset the negative performance of cash flows for operating 
and investing activities.   
 
In fact, cash flow for operating activities decreased by €359.6 million compared to year-end 2019, settling 
at a negative €76 million. The drastic reduction in operating activities is fully reflected in the related cash 
flows which stand at a negative value of €76.0 million. 
 
Investing activities were down, due both to reasons related to the Company’s growth and as a result of 
the postponement of investments not considered strategic or as priorities to ensure business continuity 
that management introduced to address the operating and financial uncertainty faced during the year. In 
addition, a positive impact to cash flows from financing activities was due to the Company’s disposal of 
short-term financial assets for €60 million, which offset nearly entirely capital expenditure.  
 
The cash outflow for operating and investing activities was offset by the cash inflow activated to protect 
the Company’s liquidity via the drawdown of the €200 million line of credit.   
 
At year-end cash on hand amounts to €227.0 million, if short-term investments in financial assets are 
taken into account.

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INVESTMENT DURING THE YEAR 
  
Investment amounted to €71.4 million in 2020, a reduction of €73.3 million compared with the previous 
year.  
 
Details of investment in property, plant and equipment and intangible assets in 2020 are provided below 
(for further details, reference should be made to the notes to the financial statements). 
 
INVESTMENT (€m) 
 
2020 
2019 
Change 
    
 
 
Property, plant and equipment  
   
 
 
Italo’s fleet 
 
36.6 
101.8 
(65.2) 
Onboard telecommunications 
 
- 
0.1 
(0.1) 
Investment assets under construction  
 
27.4 
34.7 
(7.3) 
Investment in railway stations  
 
- 
0.3 
(0.3) 
Other PPE  
 
0.1 
1.3 
(1.2) 
Total investment in property plant and equipment 
 
64.1 
138.2 
(74.1) 
  
  
 
 
Intangible assets  
   
 
 
Software  
 
2.9 
2.3 
0.6 
Investment in intangible assets in progress  
 
4.4 
4.2 
0.2 
Total investment in intangible assets 
 
7.3 
6.5 
0.8 
   
 
 
Total investment 
 
71.4 
144.7 
(73.3) 
 
Investment in new trains represents the main component of the Company’s investment, in line with 
previous years.  
 
Investment in the EVO fleet amounted to €62.7 million in 2020, including the remaining milestones for 
trains entering service during the year and payments on account for further trains under construction 
(recognized in assets under construction).  
 
At December 31, 2020 total investment in the Italo fleet, relating solely to the rolling stock component 
and ancillary costs, amount to €1,166.6 million.

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KEY EVENTS DURING THE YEAR 
 
Below, a description is provided of key events occurred during the year.    
Operating activities 
 
On January 7, 2020, the Chinese authorities identified the new virus called 2019-nCov, part of the 
Coronavirus family. 
 
On January 23, 2020, a lockdown was ordered in Wuhan and other Chinese regions. 
 
By order dated January 30, 2020, the Ministry of Health suspended all flights to and from China. 
 
On January 31, 2020, two Chinese tourists were the first two cases of Coronavirus in Italy. The Council of 
Ministers declared a state of emergency, which is still in force till the end of 2020. 
 
On February 6, 2020 near Lodi  there was a derailment  involving a Frecciarossa train, in service between  
Milan  and  Salerno, on the Milan - Bologna high-speed line. The AV railway line affected by the accident 
was seized by the Judicial Authority and made inaccessible until March 2, 2020, resulting in the 
cancellation of numerous Italo trains per day starting from February 6, 2020. 
 
On February 21, 2020, the first Italian case of Coronavirus was discovered (patient no. 1). 
 
On February 23, 2020, "red zones" were established in 11 municipalities in Lombardy and Veneto, with a 
ban on access and expulsion from the municipal territory and the suspension of events and any form of 
meeting in a public or private place, including of a cultural nature. 
 
On 4 March 2020, school activities were suspended throughout the country and the measures already in 
force in the red zones of the North were extended to the whole of Italy. 
 
As of March 9, 2020,  government authorities ordered the national lockdown  in order to contain the 
spread of the virus. The Company began to progressively to reduce the number of daily services. 
 
On March 11, 2020, the World Health Organization officially declared a state of pandemic. 
 
On March 17, 2020, the Government launched the first economic support measure to the country 
following the health emergency (so-called "health emergency". Decree "Cura Italia"). 
 
On March 20, 2020, the European Commission provided for a temporary suspension of the Growth and 
Stability Pact to allow Member States to implement actions to deal with the effects of the emergency. 
 
On March 22, 2020, the Italian Government adopted further restrictive measures, which the closing of 
most activities and the introduction of a ban on travel.   
 
On April 7, 2020, the Italian Government launched the second series of economic actions (i.e. "Liquidity" 
Decree), with the main objective of supporting the liquidity of companies overwhelmed by the economic 
emergency.   
 
On April 12, 2020, the Minister of Infrastructure and Transport, in agreement with the Minister of Health, 
adopted a ministerial decree containing, among others, specific provisions, inter alia, for rail transport. 
The general principle is that only essential minimum services are provided.

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On April 26, 2020, the cabinet Office Decree containing measures to address the COVID-19 emergency in 
the so-called "Phase Two" was signed. Specific protocols were introduced for means of transport 
(containment measures and information measures), in particular for long-distance transport: (i) the 
obligation to wear a mask on board trains and (ii) distancing on board with a maximum capacity of 50% of 
capacity.  
 
On May 4, 2020, in light of the reduction in the number of infections, the so-called "Phase 2" began in 
Italy.    
 
On May 17, 2020, the Prime Minister signed the Cabinet Office Decree laying down measures to contain 
the COVID-19 epidemiological emergency, effective May 18, maintaining the obligation to respect social 
distancing on board trains, fostered by a checkerboard reservation system with consequent application of 
markers on unusable seats. 
 
On May 19, 2020, the Government enacted Law Decree 34/2020 (i.e. "Turnaround" decree) containing 
specific economic support measures for families, workers and companies affected the COVID-19 health 
emergency. This law decree also laid down measures in favor of the rail transport sector, and therefore 
also of Italo. In particular, the most significant measures included: 
• the reduction of the infrastructure access fee for 2020 for all railway companies carrying passengers 
not subject to public service obligations, with an overall decrease in such fee of approximately: (i) 80% 
from March 10 to June 30, 2020, and (ii) 50% from July 1 to December 31, 2020; 
• Contribution to railway companies carrying passengers and freight which are not subject to public 
service obligations (i.e. Covid Grant). In this regard, the expenditure of €70 million for 2020 and €80 
million from 2021 and up to 2034 was authorized to cope with the negative economic effects directly 
attributable to the COVID-19 health emergency, which occurred from February 23 to July 31, 2020;  
• the extension of the validity of vouchers issued by railway companies: following the infringement 
procedure initiated by the European Commission against the Government, a new amendment has 
been proposed to the law of 24 April 2020, n. 27, which establishes the extension of the validity of 
vouchers issued, among other things, by railway companies by a further 6 months (i.e., for a total of 18 
months), with the right of passengers to be refunded in cash, at their request, 12 months after the 
issue of the voucher, as well as, automatically, 18 months in the absence of its use. 
 
On June 1, 2020, the Company signed with the national trade union representatives a "Defensive 
Solidarity Contract" for the reduction of employees' working hours in order to manage the temporary 
reduction of company production. 
 
Starting June 3, 2020 the Government reintroduced the possibility of moving freely between regions and, 
therefore, the Company has gradually resumed its operation, always in compliance with all the safety 
regulations provided for, such as distancing among travelers with unusable seats marked and not 
bookable, specific sanitization actions on board the train and at the station, disinfectant gel dispensers in 
the carriage and adequate ticket-checking distance between Italo staff and travelers for the protection of 
all those on board the train. 
 
On June 11, 2020, the Cabinet Office Decree was enacted, which entered into force on June 15, 2020, 
which started "Phase 3", with a series of re-openings and the easing of the restrictive provisions, while 
confirming the spread containment and prevention measures that had been established with the Cabinet 
Office Decree of May 17, 2020 for rail transport. 
 
On June 14, 2020, with the adoption of the summer schedule, Italo introduced new cities into its network, 
starting 4 trips per day to Cilento and Calabria. In fact, connections to Reggio Calabria have been 
introduced, without interchanges and with direct connections from Turin, Milan, Reggio Emilia, Bologna, 
Florence, Rome, Naples and Salerno - and with intermediate stops at the stations of 
Agropoli/Castellabate, Vallo della Lucania, Sapri, Paola, Lamezia Terme, Rosarno and Villa San Giovanni.

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As of July 2, 2020, throughout the summer season, trips to Rimini, Riccione, Pesaro and Ancona were 
restarted, thanks to 6 daily connections to Milan and Bologna. Moreover, the stations of Scalea and Vibo 
Pizzo were added to Calabrian network.  
 
On July 14, 2020, the Prime Minister signed the Cabinet Office Decree that extended until July 31, 2020 
the measures of the previous Cabinet Office Decree of June 11, 2020. 
 
On July 17, 2020, the conversion of Law Decree 34/2020 resulted also in the introduction of 
compensation for losses incurred by rail passenger and freight companies in the period from August 1 - 
December 31, 2020 with any remaining funds not allocated for the first contribution period. 
 
On August 1, 2020, by order of the Ministry of Health, the social distancing measures on board the trains 
were extended, remaining in force throughout 2020. 
 
On September 24, 2020 new waves of coronavirus exploded. 
  
As of October 1, 2020, the Company again reduced its offering. This arrangement was broadly stable until 
the end of the year, except for occasional changes when service was adapted to the country's mobility 
needs. 
 
On October 19, 2020 the Government enacted a new Cabinet Office Decree to curb the second wave of 
contagion with new restrictive measures for bars and restaurants, contact sports, school and distance 
learning, remote working. 
 
On 22 October 2020, the inter-ministerial decree signed by MIT and MEF was enacted to govern the 
criteria and methods for reporting the losses suffered by railway operators directly attributable to the 
COVID-19 emergency, for the purpose of allocating the extraordinary grant introduced by Article 214 of 
Law Decree 34/2020. 
 
On October 30, 2020, the Company applied for eligibility to the grant under Art. 214 of Law Decree 
34/2020 for the period until July 31, 2020. 
 
On November 4, 2020, a new Cabinet Office Decree signed by the Prime Minister divided Italy into three 
zones (red, yellow and orange) with different restrictions, which entered into force on November 6, 2020, 
in relation to the seriousness of the situation. A curfew was also ordered throughout the country from 
10.00 p.m. to 05.00 a.m. 
 
On December 2, 2020 the Infrastructure Manager announced that, due to the Covid-19 health 
emergency, no penalties would be applied due to the failure to use the railway lines between January 1 
and April 30, 2020. 
 
On December 9, 2020 Italo entered into an Access Agreement with the Infrastructure Manager (RFI) to 
provide for the assignment of slots for the use of railway lines and related services for the 2020/2021 
working timetable.   
 
On December 18, 2020, the Italian Government enacted the so-called "Christmas Decree", with a series of 
limitations - especially in the festive days, when Italy as a whole became a red zone - substantially similar 
to lockdown.   
 
On December 27, 2020,  anti-SARS-CoV-2/COVID-19 vaccinations began in Italy and Europe.

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By decree of 31 December 2020, the Ministry of Infrastructure and Transport accepted the application for 
eligibility to the grant pursuant to Art. 214 Law Decree 34/2020 submitted by the Company, authorizing 
the multi-year commitment to disburse the total amount requested.   
Financial matters 
 
On March 9, 2020 the Company requested to draw down the full amount of the €200 million revolving 
credit line.  
 
On June 26, 2020, the Company submitted a waiver request to its lenders, receiving consent from the 
majority on June 30. In particular, the lenders accepted all requests proposed by the Company regarding: 
• the financial covenants for 2020 and 2021; 
• the possibility of increasing the Company's debt up to Euro 300 million in order to support Italo's 
liquidity, if necessary, and cope with the COVID-19 health emergency. 
No further amendments to the original contractual provisions have been envisaged. 
 
On July 16, 2020, the Company exercised the Sustainability Linked Option provided for in the contracts 
signed, identifying three Sustainability KPIs with their objectives. On August 16, 2020 the Company 
received approval from the majority lenders required by the applicable provisions and therefore, after 
completing the relevant procedure, the loan agreement can be classified as "green" and "sustainable".  
 
Corporate events 
 
On March 23, 2020, the General Meeting of shareholders resolved to postpone until June 30, 2020 the 
distribution of dividends, originally scheduled for March 31, 2020, to June 30, while reserving the right to 
evaluate any choice in light of pandemic evolution and the consequent operating and financial situation of 
the Company. 
 
At the meeting on June 24, 2020, in order to preserve the Company's ability to operate also in an 
unprecedented situation, the shareholders decided on a further postponement, providing that the 
distribution would take place by December 31, 2020, in the presence of the right economic and financial 
conditions. 
 
Finally, on 16 December 2020, the shareholders decided to cancel the planned distribution of dividends, 
bringing forward the full amount of profit for 2019, thus putting the Company on a firmer financial footing 
in case of a prolonged period of market crisis.  
 
Social and cultural initiatives 
 
Starting in April, Italo made its services available to support the Italian Red Cross in dealing with the 
Coronavirus emergency. The volunteers of the Italian Red Cross were able to use Italo trains free of 
charge to carry out their work, to move between the different health facilities throughout Italy and to 
transport basic healthcare goods such as masks and sanitizing materials. 
 
Numerous welfare initiatives have been implemented by the Company to support of its employees, in 
particular with new opportunities for the health of employees and their families. 
The activation of a special COVID-19 health policy for its entire team, providing assistance from 
hospitalization to home stay, with ad hoc services such as baby-sitting, home shopping delivery and pet-
sitting. 
A telemedicine tool available to Italo's employees who, from home or from the workplace, have at their 
disposal a direct line with healthcare professionals 24/7.

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Another Italo initiative, in line with all those put in place during the period of the health emergency, is 
that relating to the flu vaccine, with the Company that decided to reimburse its employees for the 
expenses incurred to vaccinate. 
 
Lastly, even in such a difficult year, the Company has decided to make its contribution to scientific 
research with the collective interest in mind, contributing to the funding of a scholarship for a young AIRC 
researcher and offering its employees a dedicated editorial plan made available by AIRC to inform them 
and raising their awareness about the correct habits to follow daily to protect their health, highlighting 
the importance of scientific research.

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33 
THE GENERAL CONTEXT 
 
Macroeconomic environment1 
 
According to data published by the Bank of Italy in Economic Bulletin no. 1/2021, the recovery was 
weighed down by the new pandemic wave. The resurgence of coronavirus cases in the autumn led to a 
slowdown in global economic activity at the end of 2020, especially in the advanced countries. The start 
of the vaccination campaigns is affecting the medium-term prospects favorably, but the timing and 
intensity of the recovery remain uncertain 
 
In the euro area, the effects of the pandemic on economic activity and on prices are set to last longer 
than was previously assumed. The ECB Governing Council has expanded and prolonged monetary 
stimulus to ensure favorable lending conditions for all sectors for as long as necessary to guarantee full 
support to the economy and to inflation. It stands ready to recalibrate its instruments once again if 
necessary. 
 
In Italy, the higher-than-expected growth in the third quarter demonstrated the economy's strong 
capacity to recover. As in the other euro-area countries, the second pandemic wave nevertheless caused 
a further decrease in GDP in the fourth quarter. Based on the available indicators, this decline can 
currently be estimated at around -3.5 per cent, although there is a great deal of uncertainty over this 
figure. 
 
The downturn was considerable in services and marginal in manufacturing. 
 
Italian exports of goods and services recovered significantly in the third quarter of 2020, far more so 
than world trade; this continued in the autumn, but less markedly. Capital flows and purchases of Italian 
government securities by non-residents started up again. Thanks to the protracted current account 
surplus, Italy's net international investment position turned slightly positive after more than thirty years 
of negative balances. 
 
The recovery in employment weakened after the summer. With the reopening of the activities 
suspended during the first wave of the pandemic, in the third quarter the number of hours worked rose 
sharply and recourse to wage supplementation schemes declined. The number of payroll employment 
positions also returned to growth. However, the latest available data indicate another upturn in the use of 
the wage supplementation scheme (CIG), albeit much less so than during the first wave. In November, the 
increase in the number of new jobs essentially came to a halt, highlighting a gap compared with the same 
period of the previous year, particularly for young people and women. 
 
The change in consumer prices remained negative, reflecting price developments in the service sectors 
hit hardest by the crisis, whose growth continues to be affected by the weakness of demand. The inflation 
expectations of analysts and firms continue to point to very low rates over the next twelve months. 
 
There is greater optimism on the financial markets. The optimism of financial market operators in Italy 
and abroad has been boosted by the announcement of the rollout of vaccines, further monetary policy 
and fiscal support, and the end of the uncertainty surrounding the presidential elections in the United 
States. The yield spread between Italian and German ten-year government bonds remains at lower levels 
than those observed before the healthcare crisis. Financial markets nevertheless remain sensitive to the 
course of the pandemic. 
 
 
1 Source: data published by the Bank of Italy in Economic Bulletin n. 1 – 2021 (January 2021).

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Italian banks continued to meet demand for funds from firms. Supply conditions remained relaxed 
overall, thanks to the continuing support of monetary policy and public guarantees. Banks' bond funding 
costs declined further, and rates on lending to firms and households remained low. 
 
In response to the resurgence of the health crisis, the Government enacted additional measures to 
support households and firms in the last quarter of 2020. Compared with the scenario at unchanged 
policies, the budget envisages an increase in net borrowing both this year and the next. Further 
expansionary stimulus should come from the measures that will be defined under the Next Generation EU 
(NGEU) program. 
 
According to macroeconomic projections for the Italian economy in the three-year period 2021-23, spring 
should witness a return to sustained growth but the risks to be faced are still high. 
  
Market environment 2 
 
Owing to the severity of the lockdowns, the associated travel restrictions and the expected global 
recession associated to a historical and unprecedented economic crisis caused by the COVID-19 
pandemic, UIC (Union Internationale des Chemins de fer) estimates a loss of revenue from rail passenger 
and freight transport services of 125 billion dollars for both 2020 and 2021, in a slow recovery scenario.   
 
Globally, restrictions on services and people movement, combined with authorities’ advice not to travel, 
led in 2020 to a decrease in passenger volumes of approximately 80% for all national rail services during 
lockdowns.  
For international rail passenger services, the passenger volumes have dropped by almost 100% for all 
operators, in line with international passenger border closures.  
 
The main forecast drivers of the slow recovery include an evaporated passenger demand as some 
countries continue to be in lockdown and borders remain closed to prevent the spread of the virus, which 
have a huge impact on the rail sector. Further, without customer confidence, passenger revenues are 
expected to decline, despite marketing actions implemented by the rail operators such as price 
stimulation policies.  
Looking at the revenues, the UIC estimate shows more than $36 billion of losses for rail operators in the 
first half of 2020, and the decrease continues into the second half, while having a lower impact, (i.e. 
approximately $23 billion of lost revenues) in the second part of the year, leading to a total loss of 60 
billion dollars in 2020. 
Most losses occur in Asia (53%) and in Europe (44%), where there is an active passenger market. 
Elsewhere in the world, losses are less significant as passenger rail does not play such a big role in the rail 
market. 
For 2021 estimated losses amount to 22 billion dollars.  
 
While it is not clear whether the virus will develop further, whether a second or even a third wave will 
occur and involve additional losses, almost all rail operators have taken immediate measures to adapt 
their operations to maintain the minimum required capacity and to reduce all costs.  
 
The rail sector is undergoing a historical, unprecedented crisis calling for governmental economic 
measures. Several governmental authorities have already expressed appropriate economic measures to 
be taken to support the rail sector, in line with the priority given to a rail sector competitive with other 
transport modes.  
 
 
2 Source: UIC COVID-19 Task Force, MANAGEMENT OF COVID-19 – First estimation of the global economic impact of Covid-19 on 
Rail Transport (July 2020)

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In Italy, passenger rail transport is characterized by the provision of market-based transport services, 
which are left to the choices of the individual railway companies, and services that are provided on the 
basis of public service contracts executed by the State (with regard to long and medium-distance rail 
services) and by the regions (for regional and interregional connections). The main market-based services 
are provided by high-speed trains. 
 
In view of the sharp reduction in rail traffic as a result of the COVID-19 epidemic, Law Decree 34 of 2020 
provided substantial financial support to railway companies that perform market-based services. 
In particular, the total expenditure of €1.190 billion was authorized (in installments equal to €70 million 
for 2020 and €80 million per year from 2021 to 2034) in order to support companies that provide rail 
passenger transport services not subject to public service obligations due to the direct adverse effects of 
the COVID-19 emergency suffered from February 23, 2020 to July 31, 2020. 
Companies will also be assigned any remaining resources, also for the adverse effects suffered from 
August 1, 2020 to December 31, 2020.   
Lastly, the 2021 budget law (paragraph 675) authorized the expenditure of an additional €30 million a 
year from 2021 to 2034 (making a total of €420 million) for the benefit of the companies indicated above 
to compensate them for the losses directly attributable to the COVID-19 emergency suffered from 
January 1, 2021 to April 30, 2021. 
 
Still for the benefit of railway operators providing market-based services, a reduction in the fee for the 
use of the railway infrastructure for passenger and freight rail services not subject to public service 
obligations will be activated, and borne by RFI (in the period from March 10, 2020 to December 31, 2020).  
The 2021 budget law (paragraph 679) then authorized the payment of €20 million for 2021 and €10 
million a year from 2022 to 2034 (for a total of €150 million) to RFI, so that this entity might, from January 
1, 2021 to April 30, 2021, reduce the access fee by up to 100% of the amount exceeding the cost directly 
linked to the provision of the rail service for passenger rail services not subject to public service 
obligations and for rail freight services. The measure is therefore aimed at supporting railway operators. 
Any remaining resources will be used to compensate the operator of the national railway infrastructure 
for the lower revenue from the access fee during the same period. 
 
Finally, with regard to companies that carry out long-distance public rail services or undivided 
interregional services, reductions in transport services as a result of measures to contain the COVID-19 
virus will not entail reductions in prices or the application of sanctions or penalties due to the fewer 
trips made from February 23, 2020 to December 31, 2020.

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THE REGULATORY FRAMEWORK 
 
The Company’s business is subject to the rules governing railway transportation services, especially 
(HS/HC) passenger transportation services, in a free market regime (i.e. not subject to public service 
obligations). 
This section provides a description of the regulatory framework for the sector in question, thereby 
providing the reader with information on the regulatory environment in the Company operates. 
 
Applicable EU and national rules and regulations   
 
Directives 2001/12/EC, 2001/13/EE and 2001/14/EC (the “First Railway Package”) kicked off the 
liberalization of the railway market, establishing the principle of freedom of access by railway 
undertakings to the railway network and the provision of transport services on a non-discriminatory, fair 
and transparent basis. These directives were transposed into the Italian legal system by Legislative Decree   
188 of July 8, 2003 (“Implementation of directives 2001/12/EC, 2001/13/EE and 2001/14/EC in the matter 
of railways”). 
 
The foregoing directives were recast into directive 2012/34/EC of November 21, 2012. This directive was 
eventually transposed by Legislative Decree 112 of July 15, 2015 (“Implementation of directive 
2012/347EU of the European Parliament and the Council of November 21, 2012 establishing a single 
European railway area”), which repealed and replaced Legislative Decree 188 of July 8, 2003.  
 
Directives 2004/49/EC, 2004/50/EC and 2004/51/EC (the “Second Railway Package”) introduced 
measures aimed at rail safety and interoperability of the European rail system (the possibility for the 
trains of every Member State to travel throughout the European network). These directives were 
transposed into the Italian legal system by: 
• Legislative Decree 162 of August 10, 2007 (“Implementation of directives 2004/49/EC, 2004/50/EC and 
2004/51/EC relating to the safety and development of EU railways”), subsequently repealed and 
replaced by Legislative Decree 50 of May 14, 2019 (“Implementation of directive 2016/798 of the 
European Parliament and Council, dated May 11, 2016, on railway safety”), with the exception of 
safety certificates valid at the date of entry into force of the latter decree, which will continued to be 
valid until their original expiry date; 
• Legislative Decree 163 of August 10, 2007 (“Implementation of directive 2004/50/EC amending 
directives 96/48/EC and 2004/51/EC on the interoperability of the trans-European high-speed rail 
system”). 
 
Further directives have been subsequently adopted: 
•  directives 2007/58/EC and 2007/59/EC – constituting the “Third Railway Package” to create an 
integrated European railway area - and transposed by Law 99 of 23 July 2009, by Legislative Decree 15 
of January 25, 2010 and by Legislative Decree 247 of December 30, 2010; 
• directives 2016/797/EU, 2016/798/EU and 2016/2370/EU (interoperability and safety), Regulation 
2016/796 on the organization and tasks of the European Union Agency for Railways, and directive 
2016/2370/EU  which amended directive 2021/34/EU -  constituting the “Fourth Railway Package” – 
and transposed into law by Legislative Decree 57 of May 14, 2019, Legislative Decree 50 of May 14, 
2019 and Legislative Decree 139 of November 23, 2018 (which amended Legislative Decree 112/2015) 
the aim of which is to increase the competitiveness of railway services and consolidate establishment 
of the single European railway area. 
 
Law Decree 109 of September 28, 2018, converted as amended by Law 130 of November 16, 2018 
established, as of January 1, 2019, the National Agency for the Safety of Railways and Road and Motorway 
Infrastructure (ANSFISA) based in Rome. Without prejudice to the tasks, obligations and responsibilities of

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37 
the owners and operators in the field of safety, ANSFISA promotes and supervises the safety conditions of 
the national railway system and of road and motorway infrastructure. 
In a note of December 3, 2020, the Ministry of Infrastructure and Transport announced the registration of 
the Cabinet Office Decree that appointed the ANSFISA Steering Committee and completed the 
appointment of ANFISA’s governance and management bodies. This led the National Agency for the 
Safety of Railways and Road and Motorway Infrastructure to become fully operational and to take over all 
the assets and liabilities as well as the human resources, capital and financial assets of the National 
Railway Safety Agency – ANSF, which was eventually abolished.    
 
The role of the Infrastructure Manager   
 
The Infrastructure Manager is the party responsible for building, operating and maintaining the railway 
infrastructure, which consists of the lines – including high-speed lines – and equipment utilized for train 
circulation (excluding regional and isolated local networks or those used only for urban and regional inter-
city transportation and private networks). 
 
The Infrastructure Manager allocates infrastructure capacity – in terms of train paths - to the railway 
undertakings and sets and collects the relevant fees (in accordance with the criteria established by the 
Transport Regulator).  
 
The Infrastructure Manager is RFI by virtue of the concession granted by the Ministry of Infrastructure 
and Transport in ministerial decree 138T of October 31, 2000. 
 
The functions of the Regulator 
 
The regulator oversees the relationships between the Infrastructure Manager and Railway Undertakings 
and may deal with appeals from Undertakings that think they have been treated unjustly, have been 
subject to discrimination or have been damaged in any other way by the Infrastructure Manager in terms 
of the allocation of train paths and charges. The decisions of the Regulator may be challenged before an 
administrative court.  
 
The regulator in Italy is the Transport Regulator (ART), which was established pursuant to article 37 of Law 
Decree 201 of December 6, 2011 (converted into law, as amended, by Law 214 of December 22, 2011) in 
connection with regulatory authorities for public services under Law 481 of November 14, 1995.  
 
The Transport Regulator is responsible also for drawing up the criteria to be used by the Manager in 
setting the fees charged for access and use of the infrastructure.      
 
Conditions for the provision of rail transport services   
 
According to Legislative Decree 112 of July 15, 2015 – in line with Legislative Decree 188 of July 8, 2003 – 
the following conditions must be met in order to provide rail transport services: 
• a railway license corresponding with the service provided;  
• a safety certificate;  
• a contract governing use of the infrastructure. 
 
The railway license is valid throughout the European Union and confers on the holder the ability to 
provide rail transport services as a “railway undertaking” (the ability can be limited to the provision of 
specific types of service).  
 
The railway license is issued by the Ministry of Infrastructure and Transport. To obtain such licenses an 
operator must fulfil certain requirements relating to integrity, financial strength, professional competence 
and adequate civil liability insurance.

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Licenses are for an unlimited period of time. However, the Ministry can review from time to time whether 
the above requirements have been met and, if they have not, licenses may be suspended or revoked.  
The procedures involved in the issue, review and confirmation of licenses are contained in specific 
Guidelines adopted by the Ministry.  
 
Legislative Decree 50 of May 14, 2019 transposed Directive (EU) 2016/798 on railway safety, which 
provides that access to railway infrastructure is only permitted for railway undertakings holding the Single 
Safety Certificate (SSC) issued in accordance with Article 10 (Article 9 of the Transposition Decree). 
 
The Single Safety Certificate is issued by the European Union Agency for Railways (ERA) in the case of a 
railway operator carrying out the service in an operating area comprising the railway networks of more 
than one Member State of the European Union, while it is the applicant's right to identify the safety 
certification body, choosing between the ERA or the national safety authority, in the case of rail services 
carried out in a single Member State's operating area. 
 
Article 8 of Legislative Decree 50/2019 requires infrastructure managers and railway undertakings to 
develop their own Safety Management Systems (SGS) in order to ensure that the railway system reaches 
at least the CST (common safety objectives), complies with the safety requirements contained in the TSIs 
(technical specifications for interoperability) and that the relevant elements of the CPMs (common safety 
methods) and national standards are applied. In the same Article 8 of Legislative Decree 50/2019, the 
requirements and essential elements of a railway safety management system are also established. 
 
Italo's Railway Safety Management System is drawn up in compliance with the provisions of Legislative 
Decree 50/2019 and in accordance with Regulation (EU) 762/2018, which establishes common safety 
methods relating to the requirements of the safety management system in accordance with Directive (EU) 
798/2016. 
As part of the expansion of its network, Italo submitted in October a request to update its valid Safety 
Certificate (issued in accordance with Legislative Decree 162 of August 10, 2007), fulfilling the new 
procedures for issuing the Single Safety Certificate to the railway undertakings referred to in Directive 
2016/798/EU and obtaining the issue of the Certificate n.IT1020200015 valid until March 14, 2024. 
 
The contract to use the infrastructure is an agreement between the Infrastructure Manager and a railway 
undertaking, whereby the latter is granted permission to use the infrastructure in terms of train paths in 
exchange for the payment of fees for a period in which the service timetable applies. 
The service timetable is set every year by the Infrastructure Manager and includes the period between 
the second Sunday in the month of December of year x and the second Saturday in the month of 
December of year x + 1.  
Use of the infrastructure entails the right for railway undertakings to use the services covered by the 
minimum access package (MAP) and other services not covered by the MAP. The services covered by the 
MAP are provided by the Infrastructure Manager and include: the handling of requests for railway 
infrastructure capacity in view of agreements on the use of the infrastructure; the right to use the 
allocated capacity; use of the railway infrastructure, including points and crossings; train control including 
signaling, regulation, dispatching and the communication and provision of information on train 
movements; the use of power supply equipment for traction current, where available; all other 
information required to implement or operate the service for which capacity has been granted. 
The contract for the use of railway infrastructure is signed after the allocation of train paths in relation to 
each service timetable and governs the use of the infrastructure (and other MAP services) – in legal and 
financial terms – in accordance with the regulatory framework implemented by the Infrastructure 
Manager and by the Transport Regulator in pursuance of Legislative Decree 112 of July 15, 2015.    
The Company entered into a Framework Agreement with RFI in 2008. This sets out the terms and 
conditions for access and use of Italy’s national railway infrastructure. The Framework Agreement, drawn 
up on the basis of the model annexed to the Network Prospectus, was later amended. An addendum was 
signed in 2019, among other things extending the duration of the agreement until 2033.

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RISK FACTORS 
 
The first paragraph of art. 2428 of the Italian Civil Code requires a description of the principal risks and 
uncertainties the Company is exposed to, which might have an impact on the Company's situation in the 
foreseeable future.  
The overall factors deemed to give rise to corporate risks, together with the activities carried out to 
monitor and mitigate them, are described below. 
 
Operational risk 
 
Risks related to reliance on the manufacturer and maintenance provider for Italo’s fleet 
 
The Company’s activity relies heavily on the supplier, Alstom, from which Italo has purchased its AGV and 
EVO fleets and maintenance services. 
If the supplier were to be unable, or no longer wished, to provide maintenance services to the required 
standard, the Company might encounter difficulties in identifying a provider of maintenance services with 
the same technical capabilities at an acceptable price, with possible negative effects on the operation of 
Italo’s fleet and safety levels. These occurrences might have an adverse impact on the Company’s ability 
to deliver its services. 
For this reason, the contract governing the maintenance services supplied by Alstom sets clear levels of 
service and includes a system of penalties applicable should the supplier fail to meet such levels, thereby 
enabling the Company to mitigate this risk. 
There have never been any instances in which Alstom has failed to carry out maintenance of the trains to 
the required standard. 
 
Risks related to maintenance facilities and interruptions to their operation 
 
The Company does not own the facilities in which maintenance of its trains takes place. The potential 
impossibility of continuing to use these facilities could have a negative impact on the Company’s business 
and, as a result, on its future prospects and operating performance, financial position and/or cash flow. 
Maintenance of Italo’s fleet is carried out at the Interporto Campano site (Nola, near Naples), owned by 
Alstom, and at the facilities located at Milan-Porta Garibaldi station and at Venice Santa Lucia station, 
both owned by RFI. The availability of these two facilities is governed by specific contracts and 
supplements to the Framework Agreement. In all the centers, maintenance is carried out by Alstom. 
The ability to ensure timely and regular maintenance of Italo’s fleet is a crucial factor for the Company’s 
business. 
There have never been any instances in which it was not possible to carry out maintenance of Italo’s fleet 
in a timely manner and with regularity. 
 
Risks related to information systems, network infrastructure and data protection 
 
Italo is dependent on technology infrastructure (hardware and a telecommunications network) and its 
application platforms (software) in order to coordinate planning and other aspects of the services 
provided, as well as the sale of tickets for the rail and bus services connected to the Italobus service, 
accounting and numerous other functions. Any malfunctions in this technology infrastructure and the 
related systems, or the Company’s inability to ensure their maintenance and development, could have a 
negative impact on the Company’s business and, as a result, on its operating performance, financial 
position and/or cash flow. 
Information systems play a key role in ensuring that the Company can operate smoothly and in 
guaranteeing the desired level of customer satisfaction.  
In order to safeguard the continuity of its essential processes and IT systems, and avoid serious 
malfunctions, the Company has adopted technological infrastructure with highly-reliable redundant

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services which were integrated, on core systems, with clone Disaster Recovery infrastructure. Systems 
and Cybersecurity processes provide a stable environment capable of ensuring that data is protected.  
To date, there have not been any cyber-attacks on the Company’s IT systems.  
 
Risks related to industrial relations 
 
The Company may have to deal with labor disruption that could interfere with its business and could have 
a negative impact on the Company’s operations and, as a result, on its operating performance, financial 
position and/or cash flow. 
The Company’s relations with its employees are governed by the applicable legislation and collective 
agreements (CCL Italo and CCNL Dirigenti delle Aziende Commerciali), which include provisions covering 
the management of employee relations and, in certain cases, the termination of employment. The CCL 
Italo contract is a collective agreement entered into by the Company with the unions representing its 
employees after lengthy negotiations. 
The difficulties and disagreements encountered with the workforce or with the unions could lead to, 
among other things, strikes, stoppages and other forms of industrial action by the workers concerned, 
and the Company could be forced to deal with significant disruption to its operations and an increase in 
personnel costs. 
To date, the above difficulties and disagreements encountered during talks with the workforce or with the 
unions have not had a significant negative impact on the Company’s operating performance, financial 
position and/or cash flow. 
 
Risks related to services provided by other suppliers 
 
Italo relies on certain suppliers that perform activities necessary for the proper running of the business 
and for the safety and comfort of its customers and employees.  
The provision of these services is more complex from a logistical point of view, due to the nationwide 
extension of activities and locations, and the fact that many of these services are provided on board trains 
whilst they are traveling.  
In addition, the Company relies on external companies for the supply and operation of the buses used for 
Italobus services. 
Should such companies discontinue their services, or in the presence of irregularities and malfunctions in 
the delivery of the services, NTV would be forced to identify and contact alternative suppliers. This 
circumstance could cause disruption to services and might, in turn, negatively affect its reputation and 
business. 
In 2020 and in previous years, there were no instances of key suppliers being unable to provide 
contracted services to the required standard.  
 
Risks related to the sector in which the Company operates 
 
Risks related to access to and management of the infrastructure 
 
The Company does not own or operate the rail transport infrastructure network, and related structures 
and services, that it uses for its activities. Moreover, it shares access to rail infrastructure with other 
operators. 
Even though access to and utilization of the rail network and other infrastructure is specifically regulated, 
the Company’s operation relies on the activities and decisions of the infrastructure manager, on the 
regulatory decisions taken by the Italian authorities and on the rulings of Italian administrative courts.  
Furthermore, the Company is exposed to the risk that agreements with the infrastructure manager and 
with other service providers may be terminated. 
In the event that the Company is unable to negotiate the technical, operational and financial terms for 
access and utilization of the rail infrastructure, it might not be able to provide a commercial offering

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capable of attracting customers or might be forced to incur greater operating costs, which might make its 
business less profitable or even impractical. For example, if it cannot secure train paths in the hours of 
greater interest to customers, the Company’s commercial offering might be considered less attractive, 
leading to a loss of passengers. In addition, any expansion of services, on existing or new paths, requires 
amendment of the Framework Agreement to obtain new access rights. 
The Company has in place a Framework Agreement guaranteeing its right to access and use the Italian rail 
network through to 2033. 
 
Risks related to the utilization of rail stations  
 
The availability of the spaces utilized by the Company in the main rail stations is governed by lease 
agreements entered into with RFI, Grandi Stazioni Rail SpA and Grandi Stazioni Retail SpA. 
These companies operate a large number of rail stations throughout Italy. The ability to provide optimal 
locations for ticket offices and automated ticket vending machines, waiting rooms and areas, information 
points and other services is fundamental for the Company’s business. However, the Company relies to a 
significant extent on these third parties to access the most attractive commercial areas in every station.  
Should the Company be unable to reach agreement with railway station operators, Italo can request ART 
to take action in order to have its requirements met. In fact, in the past, the Company had to ask ART to 
intervene to resolve a number of disputes with station management companies. The resulting solution 
met Italo’s requirements regarding the location of ticket offices and automated ticket vending machines, 
“Casa Italo” offices and lounges, obtaining the same degree of visibility given to the Company’s 
competitor. 
 
Risks related to changes in the fees for infrastructure access and in the cost of electricity 
 
In the Network Prospectus, RFI fixes the level of fees applicable to railway operators based on specific 
regulatory guidelines (the criteria for setting the fees applicable to the MAP and services other than those 
covered by the Package) issued by ART. ART examines and approves the fees to ensure that they are in 
line with the above guidelines before they are applied to operators. ART’s guidelines establish the 
principles and criteria applicable over periods of five years. The current period will be expired as at 
December 2021. 
An increase in access costs (the fees relating to the MAP, other services or electricity costs) could 
compromise the Company’s cost structure.  
In terms of electricity costs, RFI passes on the electricity costs it pays to its energy suppliers to railway 
operators. These costs are determined in application of the current regulations for electricity prices, 
included in the regulations governing the industry and set out in specific determinations issued by the 
Regulatory Authority for Energy, Networks and the Environment (“ARERA”).   
In this regard, the criteria for calculating the cost of traction energy have changed in the past few years – 
lastly in 2020 with a decrease - and might change also in the future.  
 
Risks related to the suspension or revocation of licenses  
 
Rail transport is a highly regulated industry. More specifically, to operate a railway company it is 
necessary to obtain a license from the Ministry of Infrastructure and Transport to provide international 
rail passenger services and authorization to operate at national level.  
Retention of these authorizations, permits and licenses is subject to specific requirements, which are 
reviewed from time to time by the competent authorities. 
The suspension or cancellation of any of these authorizations, permits or licenses would limit or prevent 
the Company from conducting its business, seriously jeopardizing its prospects. 
Since its establishment, none of the Company’s licenses have ever been suspended or revoked. 
 
Risks related to changes in industry regulations

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The Company is subject to the risk that the large number of legal, administrative and regulatory 
requirements applicable to rail passenger transport may change over time. 
Rail transport, especially high-speed rail passenger transport, is subject to numerous, stringent and 
constantly changing legal, administrative and regulatory requirements regarding, among others, the 
fitness of railway operators to provide rail transport services, the testing of rolling stock to be used in 
operations, safety certification and access to rail infrastructure.   
Many of these requirements must be constantly met in the course of the railway operator’s activity and 
are subject to constant checks and supervision by the regulator. 
Failure by the Company to comply with applicable laws, regulations or provisions, or any change or 
interpretation thereof, might entail delays in the submission of additional applications for access to RFI or 
in the general operation of the train paths allocated, leading in some cases to an increase in the costs 
incurred to operate the business or an increase in the risk of incurring in sanctions, fines, civil actions or 
other unexpected expenses. 
 
Fare evasion risk 
 
The Company is subject to the risk of lost revenue due to fare evasion or other frauds perpetrated by 
customers. 
If customers do not pay for the services rendered, the Company would still incur the costs related to the 
service without obtaining the relevant revenues. Loss of revenue is a general risk that concerns all 
transport operators, taking place when passengers take a train without purchasing a ticket and refuse to 
pay the ticket on board, or give false personal information to the conductor demanding payment, or 
commit frauds in using the payment system when they have to pay for the ticket.   
The Company is committed to combating fare evasion. While it is not currently significant, this 
phenomenon has led the Company, over the years, to undertake a number of initiatives to deter fare 
evasion, mainly by increasing the number of inspectors on board its trains to collect the fare from 
passengers traveling without tickets and intensifying credit collection activities, related to the fines levied 
on evaders.  
Among the main risks of fraud identified within the Company, that related to commercial transactions 
effected with electronic payment methods is a constantly growing phenomenon. To limit the impact of 
such a problem, the Company, through a team of dedicated staff, has adopted a series of measures 
designed to prevent and combat such activity, including with the support of specific anti-fraud software 
and partners, market leaders with which action is taken to mitigate this risk.    
 
Strategic risk 
 
Risks related to the competition  
 
The Company is exposed to competition from the only other operator of high-speed railway services in 
Italy and from the operators of other passenger transport services.  
In the first place, the Company competes on the basis of the quality of the services offered, the 
composition of its commercial offering, including the convenience of its train timetables, and price. 
Competition is expected to remain fierce, considering the aim of each competitor is to gain market share 
at the expense of the other. In addition, even though the high-speed passenger rail transport industry has 
high barriers to entry, the entry of new competitors in this market could further intensify these 
competitive pressures.  
The Company must also deal with competition from the airline industry (particularly on the Rome-Milan 
route), private automobile transport and bus services. Consumer preferences and the competition among 
the different transport services is largely determined by travel times, the degree of comfort on offer, the 
ease of access to urban centers on departure and arrival, and the price and frequency of services. Even 
though in the last few years consumers have shown a preference for high-speed rail transport over air

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transport, an increase in the number of air carriers, especially low-cost airlines, might constitute a further 
challenge for the Company.  
In response adequately to these competitive pressures, the Company has devised a strategy that includes 
the expansion of intermodal services – on rail and road – through the introduction of new services, an 
increase in existing services, improved operating efficiency and expansion of the fleet.  
In addition, in the belief that the quality of service provided – a feature considered to form part of our 
distinctive brand identity – offers a means of creating a lasting competitive advantage and of creating 
value, the Company has set up a unit with responsibility for the continuous monitoring of quality, both on 
board its trains and in the stations it serves. 
 
Risks related to the concentration of the business in Italy and changes in the macroeconomic environment 
 
The Company is subject to the risk that adverse macroeconomic market conditions in Italy could adversely 
affect its operating results, business and its financial condition. 
The macroeconomic situation in Italy, the only country where the Company operates, affects its activity. 
The Italian economy is affected by national, European and global macroeconomic developments.  
Italo’s customers primarily use the services offered for business or leisure, each of which is significantly 
influenced by the state of the economy. A deterioration in economic conditions might have a negative 
impact on customers’ propensity to travel.  
The Company responds to this risk by continuously monitoring the market and through appropriate 
commercial and promotional initiatives. 
 
Risks related to traffic volumes and changes in customer preferences  
 
The Company is exposed to the risk of a downturn in traffic and, as a result, an adverse change in demand 
for Italo’s services. 
In a business characterized by substantial fixed costs (depreciation of rolling stock, infrastructure access 
fees, personnel costs), the Company’s profitability depends, in essence, on its ability to generate 
revenues, which in turn depends on the number of tickets sold and the price of these tickets. 
The ability to identify and meet customer expectations with a quality service in terms of high 
technological standards and comfort, at a competitive price, on routes with high demand and at 
appropriate hours, is a key factor for the Company’s prospects and success.  
 
Risks linked to climate change 
 
The Company is exposed the risks linked to climate change, which could have a negative impact on the 
business. The reduction of water resources, soil instability, forest fires and land consumption are some of 
the risk factors that characterize the entire Mediterranean basin, in addition to the additional pressures 
caused by the current climate change acting as "amplifiers" with consequences that could be extremely 
negative in the coming decades if a new model of sustainable development, able to reduce impacts and 
strengthen the resilience of the territory, is not pursued. 
Italo is firmly convinced of the strategic importance of protection of the environment and the land, 
resulting in our commitment to supporting the development of intermodal collective transport with a 
minimal impact on the environment. To this end, Italo is performing an analysis on the main risks deriving 
from climate change for the Italian territory focusing on its sector with the aim of identifying any 
economic impacts, in order to create a greater awareness on the subject and on the need to adapt one’ 
behaviors and choices. 
 
Risks related to pandemic events and other exogenous factors 
 
The spread of the Coronavirus epidemic has had, in addition to the inevitable dramatic health problems, 
also repercussions on the Company, both at the level of processes and in terms of content, for the 
possible effects on the company's activity.

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The pandemic, in fact, is characterized as an event capable of compromising the continuity of railway 
operations (i.e. " Business Continuity). This is an event falling within the category of purely exogenous risk 
factors, such as terrorism, natural disasters, changes in the macroeconomic framework and, in fact, 
epidemics and pandemics.  
For such events, which invasively affect business continuity, the Company believes that the internal 
control system alone is unsuitable for mitigating their potential impacts within acceptable thresholds. The 
Company therefore tends to manage these risks by transferring them to the insurance market.  
It should be noted that the events that took place during the year prompted an analysis of all external 
factors that could compromise business continuity and an evaluation of the related management 
methods currently implemented. The analysis carried out identified a number of actions to be taken in 
the 2021 financial year in order to mitigate this category of risks. 
 
Litigation risk 
 
The Company is or may be involved in court and/or out-of-court legal proceedings brought by various 
categories of interested or entitled parties (including, but not limited to, customers, suppliers and 
employees, etc.).  
For information regarding the litigation risk to which the Company is exposed, reference should be made 
to the notes to the financial statements. 
The Company, based on the opinion of its legal counsel, has made specific provisions for risks and charges 
to cover potential losses, where quantifiable, that it might incur in unsolved disputes.  
Provisions have been made for losses considered probable. No provisions have been made for losses 
considered remote or only possible, as explained in greater detail in the notes to the financial statements.

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FINANCIAL RISKS  
 
Pursuant to art. 2428 of the Italian Civil Code, an assessment of the Company’s exposure to financial risk 
is provided below. Further Details are provided in the notes to the financial statements. 
 
Risks related to financial liabilities 
 
The Company pays interest and financial charges on funds borrowed from banks. In addition, the 
Company is exposed to the risk that failure to comply with the obligations and commitments contained in 
the loan agreements may result in, among other things, the forfeiture of the benefit of the term of the 
existing loans. 
The provisions contained in these loan agreements also impose some limitations on the Company's 
operations that could cause negative effects on its business, as well as on its economic, asset and / or 
financial situation. 
In fact, the existing loan agreement contains provisions that legitimize the counterparties to ask the 
debtor, upon the occurrence of certain events, for the immediate repayment of the sums lent. 
The occurrence of these events provides for some agreed materiality thresholds, exceptions (carve out) 
and guarantee periods (grace period). 
 
No events of default occurred in the period under review, the Company honored all its obligations under 
the loan agreements in force from time to time and complied with all the covenants. For more 
information on borrowings and positive (i.e. obligation to do) and negative (i.e. prohibition to do) are 
illustrated in the Notes.    
 
Liquidity risk 
 
As of December 31, 2020, the Company's available cash amounts to €227.0 million, including the €20.2 
million invested in short-term financial assets.  
The Company expects to be able to generate adequate operating cash flow to meet its requirements and 
pursue its planned objectives. 
 
Any default or acceleration of payment might give rise to a liquidity risk for the Company, given that its 
lenders could demand immediate repayment of the debt, but the occurrence of any such event is unlikely.   
 
Despite the profound uncertainty, the Company does not currently believe that it is exposed to a 
significant level of liquidity risk, also in view of the possibility to obtain further credit from its lenders to 
support Italo’s liquidity, if necessary, to cope with the COVID-19 emergency.  
 
Interest rate risk 
 
Italo’s interest rate risk management policies are designed to minimize the risk related to interest rate 
fluctuations. 
 
As the Company has variable-rate liabilities, it is exposed to interest rate fluctuations. In line with its 
hedging policy, the Company implemented a new interest rate hedging strategy through Interest Rate 
Swaps, which can be classified in part as ESG Linked Swaps.    
 
These are not speculative instruments and all of them have a hedged item as underlying. In accounting 
terms, they are treated as cash flow hedges, in keeping with the risk mitigation strategy adopted by the 
Company.

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Foreign exchange risk 
 
The Company is not exposed to foreign exchange risk. 
 
Credit risk 
 
The extension of credit terms is governed by operational practices intended to achieve commercial 
growth in keeping with the Company’s risk appetite. The selection of debtors takes the form of an analysis 
designed to assess creditworthiness. The constant monitoring of receivables allows the Company to 
promptly identify any risk of default or deterioration in the creditworthiness of counterparties and to 
adopt the necessary mitigating actions.  
 
The type of business and the payment methods used guarantee that the Company’s overall exposure to 
credit risk is limited. Specifically: 
• payment for the services offered to customers is usually made before the service is used, as tickets are 
generally purchased before journeys are made; 
• the sales channels and related payment methods offered to customers (electronic money, bank 
transfer, cash) guarantee the certainty of collection at the time of sale, except in the event of credit 
and debit card fraud.

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EVENTS AFTER DECEMBER 31, 2020  
 
Reference should be made to the section of the notes to the financial statements entitled “Events after 
December 31, 2020”.  
 
OUTLOOK  
 
In consideration of the actions taken described above and taking into account the evidence that emerged, 
the Directors positively assessed the assumption of business continuity as they verified the absence of 
financial, managerial or other indicators that could signal critical issues regarding the capacity of the 
Company to meet its obligations in the foreseeable future and in particular in the next 12 months. 
 
However, it should be noted that, given the current situation, the measures in force and the forecasts of 
the competent authorities, it is not possible to imagine a market recovery, albeit minimal, before the 
second half of 2021, it being understood that: 
• the so-called "third wave" is currently underway,  
• the vaccination plan approved by the Italian Government in December is already late due to delays in 
the vaccine delivery plan,  
• the State of Emergency has been extended to 30 April 2021. 
 
At present, among other things, there are still restrictive measures that strongly limit mobility, a strict and 
extremely limiting constraint that places long-distance transport on AV in a lockdown condition, as well as 
the obligation to limit the capacity of trains to 50%. 
 
In view of this situation of uncertainty, the Company is continuously monitoring of the main asset and 
financial indicators, as well as in monitoring and analysis the market in order to adapt its evaluation 
scenarios and adapt its business to the context.

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OTHER INFORMATION 
 
Research and development 
 
There was no expenditure on research and development during the year.  
 
Related party transactions  
 
The Company has adopted regulations aimed at establishing basic principles and defining criteria for the 
identification of related party transactions in order to provide procedural regulations designed to ensure 
that such transactions are conducted in compliance with fairness and procedural criteria, and on an arm’s 
length basis.    
 
The Company transactions with related parties during the year are described in the notes to the financial 
statements. 
 
Treasury shares and shares/equity interests in parent companies  
 
Pursuant to art. 2428 of the Italian Civil Code, the Company hereby declares that is does not directly or 
indirectly own treasury shares or shares in parent companies, either through trust companies or proxies.    
 
Disclosures related to the environment and personnel   
 
The Company recognizes railway safety, the health and safety of workers and environmental protection as 
key factors of every activity performed in the context in which it operates. 
 
To this end, the Company has adopted an integrated policy on operational safety on the railway, safety at 
work and environmental protection. This defines the values that the Company, its employees, other staff 
and all those that, for any reason work on behalf of Italo, whether on an ongoing or on an occasional 
basis, must comply with. 
 
Italo ensures constant improvements in safety, with reference to the peculiarities of the work involved, its 
experience and technical standards and in relation to changes in the socio-economic context in which it 
operates, making choices consistent with universally accepted sustainability principles. 
 
To guarantee the safety of its railway operations, the Company is committed to: 
• conducting information and educational initiatives focusing on safety in order to reduce the risk of 
dangerous behavior on the railway network, aimed at all types of user, in terms of age, nationality, 
gender and role;  
• guaranteeing effective oversight of maintenance activities in keeping with the Common Safety 
Methods to ensure that they meet the specific requirements and established standards; 
• combining aspects related to the human organizational factors in the railway safety management 
system and in its operational procedures; 
• promoting the development of a positive “Safety Culture” in its operations and those of suppliers; 
• ensuring that the findings of investigations on incidents and problems are used to review risk 
assessment and learn from it, to improve safety and adopt corrective or improvement measures.   
 
To guarantee health and safety at work, the Company is committed to: 
• pursuing a constant and substantial reduction in occupational injuries, with the long-term objective of 
achieving “zero injuries”;  
• pursuing a constant and substantial reduction in the number of accidents at work;

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• improving the culture of safety with systematic training and specific information initiatives, designed 
to enhance the awareness of hazards and risks and knowledge of the techniques involved in 
preventing injuries and managing emergencies;  
• ensuring the effectiveness and efficiency of the occupational health and safety management system, 
by performing regular audits and implementing the corrective actions recommended following the 
audits performed; 
• advancing the physical, psychological and social well-being of employees through a system based on 
health prevention and promotion programs, linked to factors of an organizational nature.  
  
Considering the prevention of pollution and environmental protection to be mandatory objectives, to be 
achieved and improved constantly, the Company is also committed to: 
• monitoring the electricity consumption of the Italian fleets of AGV575 and ETR675 through the 
measurement systems installed on board and considering the steps to minimize them; 
• analyzing the impacts and risks of climate change to minimize the exposure and vulnerability of Italo's 
activities and to improve the ability both to restore functions quickly and effectively in the face of 
interruptions and to adapt to an extreme climate event;   
• reducing the risk of damage to the environment by implementing a system for monitoring Italo’s 
activities across all its operating sites; 
• reducing the environmental impact of the activities of Italo’s personnel (for example, in managing 
waste and in consuming electricity, water and paper), including by promoting development of a 
positive “Sustainability Culture”; 
• implementing and improving recycling schemes for the waste produced on board Italo’s trains and at 
other sites. 
 
To meet the foregoing commitments, the Company uses the following Management Systems: 
• Railway Safety Management System (compliant with Legislative Decree 162/2007); 
• Integrated Health and Safety and Environmental Protection Management System (compliant with 
standards UNI ISO 45001 and UNI ISO 14001. 
 
During 2020:  
• Italo was involved in only one major safety-related accident, when a person not authorized to cross 
the tracks at a duly closed level crossing was hit by a train. The investigation initiated to ascertain the 
dynamics and cause of the aforementioned accident have ruled out any responsibility for Italo and its 
staff; 
• there were no deaths or serious injuries at work;  
• the Company was not held responsible for the occupational illness of employees or former employees 
and does not have any contingent liability for the occupational illness of employees or former 
employees or for legal actions brought in relation to harassment,  
• there was no legal action brought against the Company in relation to environmental damage.   
 
Certifications 
 
Occupational health and safety 
 
The UNI ISO 45001 standard of 2018 "Occupational health and safety management systems – 
Requirements and guidance for use" is the first international standard to define minimum standards of 
good practice for the protection of workers worldwide. It establishes a framework for improving safety, 
reducing risks in the workplace and improving the health and well-being of workers, thus increasing 
health and safety performance for any organization that chooses to certify its management system under 
accreditation. 
 
In this way, by regularly monitoring our trains, offices, ticket offices, lounges and training centers located 
around Italy, Italo guarantees not only the safety of its workers but also that of all those people operating

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                                                                                 50 
or present at the various sites. This represents further confirmation of Italo’s long-standing commitment 
to continuously improving people’s safety and well-being. 
 
As of March 2021, at the end of a transition period of three years from publication, UNI ISO 45001 will 
replace BS OHSAS 18001 as the only standard for the certification of occupational health and safety 
management systems. 
 
Italo obtained the first OHSAS 18001 certification, valid for three years, at the end of 2017 and, during 
2020, the planned audit was conducted with success, certifying that the adopted system is in compliance 
with the law and capable of achieving the goals set.  
 
The audit planned for 2020 did not reveal any areas of non-compliance; this clearly indicates the degree 
of effectiveness achieved by Italo’s health and safety management system. 
 
On a statistical level, the number of injuries to Italo’s personnel and reported to INAIL in 2020 fell 
compared with the number registered in 2019. In greater detail, in 2020 there were a total of 9 accidents 
at work in 2020, while the figure was 23 in 2019, marking a reduction of 60%. 
  
Environmental protection 
 
Italo obtained its first certification in May 2018, valid for three years. During 2020, the second planned 
audit was conducted with success, certifying that the adopted system is in compliance with the law and 
capable of achieving the goals set. The auditors did not find any area of non-compliance.  
  
ISO 14001:2015 certification provides confirmation, at international level, of Italo’s voluntary and 
substantial commitment to adopting a system that allows it to control and manage all its activities, in 
order to minimize the impact of its business processes on natural resources, contributing to their 
conservation and to protection of the environment. 
 
In this way, by regularly monitoring our trains, offices, ticket offices, lounges and training centers located 
around Italy, Italo guarantees protection of the environment, underlining once again the Company’s long-
standing commitment to continuous improvement in relation to the environment.  
 
The Energy Efficiency Program: White Certificates   
 
The AGV and EVO fleets have been admitted to a program designed to foster energy efficiency supported 
by the Italian Government and governed, as regards the AGV fleet and the ETR fleet (numbers 1 to 12), by 
the Ministerial Decree of December 28, 2012 and, as regards the ETR fleet (numbers 13 to 22) by the 
Ministerial Decree of January 11, 2017. 
 
This program calls for the assignment of White Certificates (or EECs – Energy Efficiency Certificates) which 
attest to the achievement of energy savings through the application of efficient technologies and systems. 
The certificates, issued by the GSE, certify the savings obtained by the party admitted to the program.  
 
One certificate is equivalent to the saving of one TOE (ton of oil equivalent), the conventional unit of 
measure commonly used in energy reports to express all the sources of energy based on their heating 
value. 
 
The White Certificates assigned by the GSE can be sold either through bilateral contracts or through the 
market for EECs organized and managed by the GME.  
Sales are not subject to limits on time or quantity. The largest buyers are electrical energy distributors 
which – as an alternative to the energy saving measures to be implemented with final consumers to meet

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51 
the goals set in the Ministry for Economic Development’s guidelines published each year – can fulfil the 
obligations provided for by the applicable regulations by purchasing White Certificates.  
In the Company’s case, the calculation is made on the basis of an algorithm that evaluates, for every 
period of reference, the energy efficiency of the service considering, among other things, energy 
consumption, the kilometers travelled and the load factor. 
 
The duration of the program for the AGV fleet was five years, from January 1, 2015 to December 31, 2019.   
The duration for the ETR fleet (from numbers 1 to 12) is the same, starting from January 1, 2018. 
The duration of the program from the ETR fleet (from numbers 13 to 22) is, however, 10 years from May 
2019 for ETRs 13 to 17 and from January 2020 for ETRs 18 to 22. 
In 2020 requests for the issue of certificates for the ETR project (numbers 1 to 22) were submitted to the 
GSE in relation to trains in circulation in 2019 and 2020. 
 
ESG Steering Committee 
 
To ensure a consistent approach to governance and specialist oversight of Environmental Social 
Governance (ESG) projects, the Company has set up an ESG Steering Committee, with responsibility for 
defining and promoting Italo’s ESG policies and the related governance procedures, ensuring their 
alignment with the Company’s growth plans and strategies. 
 
Internal control  
 
On 19 February 2020, the Company's Executive Committee approved the Audit Plan for the year 2020. 
This plan was updated in July 2020, following the impacts deriving from the spread of the COVID-19 
pandemic.  
In light of the indications deriving from the business risk management process, the Audit Plan identifies 
the areas of analysis and the types of reviews of business processes and procedures for the periodic 
assessment of the adequacy of the related internal control activities. The preparation of the Audit Plan 
takes into account the principles and guidelines issued by the Italian Internal Auditors Association and is 
shared in advance with the Board of Statutory Auditors. 
As of December 31, 2020, the planned audits for 2020 were completed and the report on the last planned 
audit is being shared. 
During 2020, the Enterprise Risk Management process was upgraded through the structured 
integration of risk analysis and assessments and controls carried out by the various control Functions, 
for a holistic and efficient management of the different types of risk and related improvement actions. 
The results of the Integrated Risk Assessment conducted in the fourth quarter of 2020 provided the inputs 
for the preparation of the proposed Audit Plan 2021 - 2023 which, at the beginning of 2021, will be 
presented to the Board of Statutory Auditors and, for approval, to the Executive Committee of the 
Company. 
 
Internal Control and Organizational Model as per Legislative Decree 231/2001   
 
In line with the provisions of articles 6 and 7 of Legislative Decree 231 of 2001 (hereinafter “the Decree”), 
the Organizational, Management and Control Model was adopted by the Company in order to prevent, or 
in any event reduce to an “acceptable level”, the risk of commission of the offences referred to in the 
legislation by senior management or subordinates.  
Italo's Model 231 is updated whenever organizational or regulatory needs require it. 
During 2020, with the aim of continuously updating its internal control system for the purposes of the 
Decree, the Company launched a project aimed at including in its Model 231 the regulatory developments 
occurred since the last approval of the Model, in particular with the introduction in the Decree of the new 
article 25-quinquiesdecies.

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With Law 157 of December 19, 2019, published on December 14, 2019, article 25-quinquiesdecies was 
introduced within the Decree, providing for the administrative liability of institutions in case certain tax 
offenses are committed. 
To update Model 231, the Company used the same methodological approach followed in the past. The 
Model was developed following identification of areas at risk of commission of offenses and any at-risk 
activities and, therefore, on the basis of the Company’s exposure to such risks in the conduct of its 
business, taking into account the controls used to minimize them. 
 As a result of the above activities, all the annexes to Model 231 have been updated and a new Special 
Part "H" relating to tax offenses has been introduced, in the context of which, after a description of the 
relevant tax offenses, the risk areas were identified on the basis of the results of the risk assessment 
carried out. 
Model 231 was approved by the Board of Directors on July 15, 2020. 
 
The Supervisory Board – established by Board of Directors’ resolution – has three members and is 
responsible for overseeing application of and compliance with the Organizational, Management and 
Control Model's content and provisions. 
On February 21, 2020, the Supervisory Board approved the 2020 Supervisory Plan and then updated it on 
July 14, 2020, following the spread of the COVID-19 epidemic. During 2020, the Internal Audit department 
performed the planned activities and periodically reported the results to the Supervisory Board. 
  
Code of Ethics 
 
The Code of Ethics, forming an integral part of the Organizational, Management and Control Model, 
represents the set of ethical principles and values that should inspire the conduct and behavior of all the 
people who operate, internally and externally, within the Company's sphere of action. Aware of the 
importance of the social impact of its business, the Company aims to be competitive in the marketplace 
via fair and functional use of its resources, while fully respecting the quality of the environment and the 
social system, partly with a view to growing its capacity to create value and wellbeing for the communities 
it serves.   
 
The Code of Ethics, which the Company adopted in 2011 and was recently updated by the Board of 
Directors at their meeting of July 15, 2020, consists of general principles and behavioral standards. The 
Code is available on the Company’s website and is referred to in the various agreements entered into by 
Italo.

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53 
ALTERNATIVE PERFORMANCE INDICATORS  
 
This section describes the key financial and non-financial indicators used by management to monitor the 
Company’s operating performance and financial condition (hereinafter “Alternative Performance 
Indicators” or “APIs”). These differ from those defined or required by the applicable accounting standards.  
The Company deems the information provided by APIs to be an additional important metric for evaluating 
performance, as it makes it possible to closely monitor its operating results and financial position, and 
represents tools that help management to identify operational trends and to take decisions on 
investment, the allocation of resources and other operational decisions. 
The Company believes that: 
• EBITDA is, in addition to the operating result, an indicator that is useful in assessing the Company’s 
operating performance and provided information on its ability to service its debt; 
• the EBITDA margin is a useful indicator of the Company’s ability to generate a profit on revenue. In 
fact, the EBITDA margin represents the proportion of revenue that becomes EBITDA; 
• Net Working Capital enables management to assess whether or not the Company has sufficient 
current assets to meet its short-term trading liabilities and, together with net non-current assets and 
net invested capital, to assess the balance between the structure of investments on the one hand and 
that of its sources of financing on the other; 
• the ratio of Net Debt to EBITDA is a useful indication of the Company’s ability to service its financial 
debt.  
 
To correctly interpret the APIs used by the Company, it should be noted that they are derived from the 
financial statements and from calculations performed on the basis of data available in the accounting 
records. 
APIs are not indicators measured in accordance with the accounting standards used in preparation of the 
Company’s financial statements and, even though they are derived from the financial statements, they 
are not audited. 
APIs should not, therefore, be regarded as a substitute for indicators calculated in accordance with the 
applicable accounting standards. In addition, given that they are unrelated to the applicable accounting 
standards, the APIs used by the Company are calculated using methods that may not be consistent and 
comparable with those adopted by other companies.   
The alternative performance indicators used are illustrated below.   
 
EBITDA, calculated as follows: 
 
(€m) 
 
2020 
2019 
Profit for the year 
 
31.9 
151.4 
Income tax  
 
3.7 
48.3 
Financial expenses  
 
16.3 
36.8 
(Financial income)  
 
(0.2) 
(0.8) 
Losses (gains) on disposal of non-current assets 
 
0.0 
0.1 
Depreciation, amortization and impairments  
 
60.1 
56.4 
EBITDA   
 
111.8 
292.2 
 
EBITDA margin, calculated as the ratio of EBITDA to “Total operating revenue”. 
 
Organic EBITDA, calculated as follows: 
 
(€m) 
 
2020 
2019 
EBITDA    
 
111.8 
292.2 
Revenues from White Certificates 
 
(0.7) 
(29.8) 
Organic EBITDA   
 
111.1 
262.4

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Organic EBITDA margin, calculated as the ratio of “Organic EBITDA” to “Total operating revenue”, after 
deducting revenues from White Certificates. 
 
EBIT, calculated as follows: 
 
(€m) 
 
2020 
2019 
Profit for the year 
 
31.9 
151.4 
Income tax  
 
3.7 
48.3 
Financial income  
 
(0.2) 
(0.8) 
Financial expenses 
 
16.3 
36.8 
EBIT   
 
51.7 
235.7 
 
EBIT margin, calculated as the ratio of EBIT to “Total operating revenue”. 
 
EBT, calculated as follows: 
 
(€m) 
 
2020 
2019 
Profit for the year 
 
31.9 
151.4 
Income tax  
 
3.7 
48.3 
EBT   
 
35.6 
199.7 
 
EBT margin, calculated as the ratio of EBT to “Total operating revenue”. 
 
Profit margin, calculated as the ratio of “Profit for the year” to “Total operating revenue”. 
 
Net Working Capital, calculated as follows: 
 
(€m) 
2020 
2019 
Inventories  
0.8 
10.1 
Trade receivables 
2.4 
8.3 
Tax receivables 
- 
- 
Current asset for Contribution for Covid-19 
18.8 
- 
Other current assets  
39.6 
31.9 
Trade payables  
(145.3) 
(188.8) 
Current tax liabilities  
(7.6) 
(14.2) 
Deferred revenues from transport services 
(34.6) 
(44.6) 
Other current liabilities  
(28.2) 
(24.8) 
Net Working Capital  
(154.0) 
(222.1) 
 
Non-current assets, calculated as follows. 
 
(€m) 
2020 
2019 
Goodwill  
1,683.8 
1,683.8 
Intangible assets  
108.8 
115.5 
Property, plant and equipment  
970.1 
946.5 
Right-of-use assets  
46.8 
52.5 
Non-current asset for Contribution for Covid-19 
122.5 
- 
Deferred tax assets  
23.4 
19.5 
Non-current assets  
2,955.3 
2,817.8 
 
Net Non-current Assets, calculated as follows:

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55 
(€m) 
2020 
2019 
Non-current Assets  
2,955.3 
2,817.8 
Employee benefits 
(20.4) 
(16.9) 
Deferred tax liabilities  
(27.5) 
(30.3) 
Non-current provisions 
(33.7) 
(4.1) 
Net Non-current Assets 
2,873.7 
2,766.6 
 
Net Invested Capital, calculated as follows. 
 
(€m) 
2020 
2019 
Net Working Capital  
(154.0) 
(222.1) 
Net Non-current Assets  
2,873.7 
2,766.6 
Net Invested Capital  
2,719.8 
2,544.4 
 
Liquidity, calculated as follows: 
 
(€m) 
 
2020 
2019 
Short-term bank deposits 
 
- 
- 
Cash and cash equivalents 
 
206.8 
93.2 
Total Liquidity  
 
206.8 
93.2 
 
Gross Debt, calculated as follows: 
 
(€m) 
 
2020 
2019 
Current borrowings   
 
3.9 
2.4 
Non-current borrowings   
 
1.097.3 
897.8 
Current and non-current borrowings  
 
1.101.2 
900.2 
Current lease liabilities  
 
7.7 
5.8 
Non-current lease liabilities  
 
43.9 
48.2 
Current and non-current lease liabilities  
 
51.6 
54.0 
Gross Debt   
 
1.152.8 
954.2 
 
Net Debt, calculated as follows: 
 
(€m)  
               2020                 2019  
A. Cash   
1.1 
3.9 
B. Other cash equivalents  
205.7 
89.3 
C. Securities held for trading  
- 
- 
D. Liquidity (A + B + C)  
206.8 
93.2 
E. Current financial assets   
20.2 
80.2 
F. Current bank borrowings  
- 
- 
G. Current portion of non-current borrowings  
3.9 
2.4 
H. Other current financial liabilities  
7.7 
5.8 
I. Current debt (F + G + H)  
11.6 
8.2 
J. Net current debt (I - E - D)   
(215.4) 
(165.1) 
K. Non-current bank borrowings  
1,097.3 
897.8 
L. Notes issued  
- 
- 
M. Other non-current liabilities  
43.9 
48.2 
N. Non-current debt (K + L + M)  
1.141.3 
946.0 
O. Net debt (J + N)   
925.8 
780.8

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Net Debt/Equity, calculated as follows: 
 
(€m) 
 
2020 
2019 
Net Debt 
 
925.8 
780.8 
Equity  
 
1,793.9 
1,763.6 
Net Debt / Equity  
 
0.5x 
0.4x 
 
Net Debt /EBITDA, calculated as follows:  
 
(€m) 
 
2020 
2019 
Net Debt  
 
925.8 
780.8 
EBITDA  
 
111.8 
292.2 
Net Debt / EBITDA  
 
8.3x 
2.7x 
 
The impact on key indicators of first-time adoption of IFRS 16 is shown below. 
 
(€m) 
 
2020 
IFRS 16 
2020 Adj 
EBITDA  
 
111.8 
(6.8) 
105.0 
EBIT  
 
51.7 
(1.1) 
50.6 
EBT  
 
35.6 
0.8 
36.4 
NET DEBT 
 
925.8 
(51.6) 
874.2

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57 
PROPOSED APPROVAL OF FINANCIAL STATEMENTS AND APPROPRIATION OF 
PROFIT 
 
Dear Shareholders, 
 
Your Company’s Board of Directors has convened this Ordinary General Meeting of shareholders to 
recommend that you approve the financial statements of Italo – Nuovo Trasporto Viaggiatori SpA as of 
and for the year ended December 31, 2020 and to the proposed appropriation of profit. 
 
The Financial Statement as of December 31, 2020 reports a profit for the year of 31,867,079 Eur, which is 
proposed to entirely allocate to Retained Earnings.  
 
 
************ 
 
With approval of the financial statements as of and for the year ended December 31, 2020 the term of 
office of the Board of Directors and the Board of Statutory Auditors will expire. We therefore ask you to 
elect a new Board of Directors and a new Board of Statutory Auditors.    
 
Rome, April 26, 2021 
 
 
For the Board of Directors 
 
Chairman 
 
Luca Cordero di Montezemolo

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                                                                                 58 
 
 
 
 
 
 
Financial 
Statements 
2020

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59 
INCOME STATEMENT 
 
(€) 
Note  
2020 
2019 
Revenue from transport services 
7 
        262,914,026  
        680,565,276  
Other operating revenues 
8 
        150,569,004  
           34,734,807  
Total operating revenues 
  
   413,483,030  
   715,300,083  
Access and electricity costs 
9 
         (72,278,970) 
       (161,587,758) 
Train management costs 
10 
         (66,903,787) 
         (91,991,675) 
Personnel costs 
11 
         (63,769,625) 
         (69,445,177) 
Other operating costs 
12 
         (98,709,295) 
       (100,079,705) 
Operating profit (loss) before depreciation, amortization, impairments and 
(losses) gains on disposal of non-current assets 
  
   111,821,353  
   292,195,768  
Depreciation, amortization and impairments 
13 
         (60,121,716) 
         (56,423,449) 
(Losses) gains on disposal of non-current assets  
14 
                 (33,482) 
                (116,667) 
Operating profit (loss) 
  
     51,666,155  
   235,655,652  
Financial income  
15 
                  174,833  
                  820,455  
Financial expenses   
15 
         (16,253,024) 
         (36,792,732) 
Profit (loss) before tax 
  
     35,587,964  
   199,683,375  
Income tax 
16 
            (3,720,885) 
         (48,263,118) 
Profit (loss) for the year 
  
     31,867,079  
   151,420,257

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                                                                                 60 
STATEMENT OF COMPREHENSIVE INCOME 
 
(€) 
Note  
2020 
2019 
Profit (loss) for the year 
  
     31,867,079  
   151,420,257  
Profit on cash flow hedges 
29 
(2,178,896) 
2,160,004  
Profit on cash flow hedges - taxation 
29 
      522,935  
(518,401) 
Other components of comprehensive income that will be reclassified to 
profit or loss in future years 
  
      (1,655,961) 
1,641,603  
Actuarial (loss) / profit for employee benefits 
29, 33 
    125,806  
(1,308,745) 
Actuarial (loss) / profit for employee benefits - taxation 
29 
    (30,193) 
314,099  
Other components of comprehensive income that will not be recycled to 
profit or loss in future years 
  
  95,613  
(994,646) 
Total other components of comprehensive income 
  
      (1,560,348) 
646,957  
Comprehensive income (loss) for the year 
  
     30,306,731  
   152,067,214

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61 
STATEMENT OF FINANCIAL POSITION 
 
(€) 
Note  
2020 
2019 
Goodwill  
17 
          1,683,797,961  
        1,683,797,961  
Intangible assets 
18 
              108,815,198  
            115,448,392  
Property, plant and equipment 
19 
              970,094,241  
            946,448,789  
Right-of use assets 
20 
                 46,799,193  
               52,533,059  
Deferred tax assets 
21 
                 23,385,485  
               19,533,435  
Non-current asset for Contribution for COVID-19  
22 
              122,452,072  
                                     -  
Total non-current assets 
  
   2,955,344,150  
  2,817,761,636  
Inventories 
23 
759,892 
               10,145,787  
Trade receivables 
24 
                   2,415,991  
                  8,261,756  
Current tax receivables  
25 
18,912 
-  
Current asset for Contribution for COVID-19  
22 
                 18,793,648  
-  
Other current assets 
26 
                 39,619,475  
               31,943,578  
Current financial assets  
27 
                 20,212,824  
               80,187,753  
Cash and cash equivalents 
28 
              206,770,653  
               93,206,101  
Total current assets 
  
       288,591,395  
      223,744,975  
Total assets 
  
   3,243,935,545  
  3,041,506,611  
Share capital 
  
                 60,017,725  
               60,017,725  
Share premium reserve 
  
2,672 
2,672 
Other reserves 
  
          1,551,511,656  
        1,553,167,617  
Retained earnings  
  
              182,385,631  
            150,422,939  
Total equity 
29 
   1,793,917,684  
  1,763,610,953  
Non-current borrowings 
30 
          1,097,349,355  
            897,791,129  
Non-current lease liabilities 
32 
                 43,907,921  
               48,184,666  
Employee benefits 
33 
                 20,396,811  
               16,886,706  
Deferred tax liabilities 
34 
                 27,544,659  
               30,254,912  
Non-current provisions 
35 
                 33,668,676  
                  4,064,838  
Total non-current liabilities 
  
   1,222,867,422  
      997,182,251  
Current borrowings 
30 
                   3,875,432  
                  2,418,285  
Current lease liabilities 
32 
                   7,694,586  
                  5,826,314  
Trade payables 
36 
              145,298,109  
            188,804,299  
Deferred revenues from transport services   
37 
                 34,555,290  
               44,585,304  
Current tax payables 
25 
                   7,560,245  
               14,233,337  
Other current liabilities 
38 
28,166,777  
               24,845,868  
Total current liabilities 
  
 227,150,439  
      280,713,407  
Total liabilities 
  
1,450,017,861  
  1,277,895,658  
Total equity and liabilities 
  
3,243,935,545 
  3,041,506,611

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                                                                                 62 
 STATEMENT OF CHANGES IN EQUITY 
 
(€) 
Share 
capital 
Share 
premium 
reserve 
Other reserves 
Retained 
earnings 
Total Equity 
As of January 1, 2019 
60,017,725  
49,615,855         21,644,947  
  117,345,065  
248,623,592  
Profit for the period  
-  
-  
-  
151,420,257  
151,420,257  
Cash flow hedge reserve (Note 29) 
-  
-  
1,641,603  
-  
1,641,603  
Actuarial gain (loss) on employee benefits (Note 29) 
-  
-  
-  
(994,646) 
(994,646) 
Comprehensive income (loss) for the year  
-  
-  
1,641,603  
  150,425,611  
   152,067,214  
Reverse merger 
-  
-  
1,766,164,742  
-  
1,766,164,742  
Dividends 
-  (49,613,183) 
(236,283,676) 
(117,347,738) 
(403,244,597) 
As of December 31, 2019  
60,017,725                2,672    1,553,167,617  
  150,422,939    1,763,610,953  
Profit for the period 
         -  
-  
-  
31,867,079 
31,867,079 
Cash flow hedge reserve (Note 29) 
          -  
-  
(1,655,961) 
- 
(1,655,961) 
Actuarial gain (loss) on employee benefits (Note 29)  
-  
-                            -  
95,613 
95,613 
Comprehensive income (loss) for the year 
-  
-  
(1,655,961) 
31,962,692 
30,306,731 
As of December 31, 2020   
60,017,725                2,672    1,551,511,656  
182,385,631 
1,793,917,684

ITALO| ANNUAL REPORT | 2020    
              REPORT ON OPERATIONS | FINANCIAL STATEMENTS | NOTES  
 
 
      
63 
STATEMENT OF CASH FLOWS 
 
(€) 
Note  
2020 
2019 
Profit (loss) before tax 
  
     35,587,964  
   199,683,375  
Adjustments for: 
  
  
  
Depreciation, amortization and impairments 
13 
            60,121,716  
            56,423,449  
(Releases from) / accruals for provisions for risks and charges 
24, 35 
            29,943,694  
                  953,222  
Net financial expenses/(income) 
15 
            16,078,191  
            35,972,277  
Other non-monetary items3 
8,12 
       (136,557,434) 
              3,709,621  
Payment of employee benefits 
33 
                 (708,972) 
             (6,280,682) 
Interest paid 
 
          (12,786,942) 
          (20,606,670) 
Interest paid on leases 
 
             (1,222,798) 
             (1,575,558) 
Tax paid  
 
          (16,425,964) 
          (14,988,560) 
Interest collected  
 
                  258,841  
                  152,518  
Cash flow generated by/(used in) operating activities 
before changes in net working capital 
    (25,711,704) 
   253,442,992  
Change in inventories 
23 
              9,385,895               (2,712,964) 
Change in trade receivables 
24 
              5,815,279               (1,180,608) 
Change in trade payables 
36 
          (47,034,918) 
            23,111,608  
Change in other assets/liabilities 
25,26,37,38 
          (18,449,006) 
            10,877,711  
Cash flow generated by/(used in) operating activities (A) 
    (75,994,454) 
   283,538,739  
Investment in property, plant and equipment 
19 
          (61,486,310) 
       (149,384,228) 
Investment in intangible assets 
18 
             (5,927,712) 
             (6,455,553) 
Disposals of property, plant and equipment and intangible assets 
 
                     18,500  
                     74,070  
Investment in current financial assets  
27 
                                  -  
       (100,000,000) 
Divestment of current financial assets  
27 
            60,000,000  
            20,000,000  
Cash flow generated by/(used in) investing activities (B)  
 
      (7,395,522) 
  (235,765,711) 
New long-term borrowings  
30 
         200,000,000  
     1,047,791,129  
Repayment of long-term borrowings  
 
                                  -  
       (880,000,000) 
Financial expenses on early repayment of borrowings  
 
                                  -               (5,070,100) 
Repayment of lease liabilities 
32 
             (3,045,472) 
             (4,507,734) 
Dividends paid  
 
                                  - 
       (401,855,169) 
Cash flow generated by/(used in) financing activities (C)  
   196,954,528  
  (243,641,874) 
Total change in cash and cash equivalents (A + B + C)  
  
   113,564,552  
  (195,868,846) 
Cash and cash equivalents at beginning of year 
 
            93,206,101  
         289,044,460  
Cash and cash equivalents resulting from the reverse merger 
  
                                  -  
                     30,487  
Cash and cash equivalents at the end of the year 
  
   206,770,653  
     93,206,101  
 
3 As at December 31, 2020, other non-monetary items include the Covid-19 Grant (Law Decree no. 34 of 19 May 2020) recognized 
at its fair value and not yet collected at the reporting date.

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Notes

ITALO| ANNUAL REPORT | 2020                                       REPORT ON OPERATIONS | FINANCIAL STATEMENTS | NOTES 
      
 
 
 
 
      
65 
NOTES TO THE FINANCIAL STATEMENTS  
 
1. General information  
 
Italo - Nuovo Trasporto Viaggiatori SpA (hereinafter “Italo” or the “Company”) is a joint-stock company, 
with registered office in Rome, Viale del Policlinico no. 149/B, structured in accordance with the 
legislation of the Italian Republic. ITALO is the first and only private Italian operator on the high-speed rail 
network. 
 
2. Reporting standards  
 
These financial statements have been prepared in compliance with International Financial Reporting 
Standards (hereinafter “IFRS”) issued by the International Accounting Standards Board (hereinafter 
“IASB”) and adopted by the European Commission according to the procedure set forth in art. 6 of (EC) 
Regulation no. 1606/2002 of the European Parliament and Council of July 19, 2002. IFRS also cover all 
international accounting standards (“IAS”) and all interpretations of the International Financial Reporting 
Standard Interpretations Committee, previously called the “Standard Interpretations Committee” (SIC).  
 
IFRS have been applied consistently and voluntarily to all of the periods included in this document, taking 
account also of the view of highly qualified scholars in this field. Any future orientations and updates to 
interpretations will be reflected in future years, in accordance with the procedures required on each 
occasion by the applicable standards. 
 
The financial statement schedules and the related classification criteria adopted by the Company are 
illustrated below, in accordance with the options set out in IAS 1 – Presentation of Financial Statements: 
• the Statement of financial position has been prepared, classifying assets and liabilities according to the 
“current and non-current” criterion; 
• the Income statement has been prepared, classifying operating costs by nature; 
• the Statement of comprehensive income is presented separately to the income statement and 
includes, in addition to the profit or loss for the year resulting from the income statement, the income 
and the charges that by express provision of IFRS are recognized directly in equity; 
• the Statement of changes in equity shows the comprehensive income (loss) for the year, transactions 
with shareholders and other changes in equity; 
• the Statement of cash flows is prepared according to the “indirect method”, by adjusting the profit or 
loss for the year on the basis of non-monetary components. 
This structure best reflects the elements that have led to the Company’s profit or loss as well as its 
financial and equity structure. 
 
The Financial Statements have been prepared by applying the historical cost method, also considering, 
where appropriate, value adjustments, with the exception of financial statements items which, according 
to IFRS, must be recognized at fair value, as indicated in the accounting policies and without prejudice to 
cases in which IFRS provisions permit a different accounting policy. 
 
All amounts in these financial statements and the accompanying notes are in euros. 
 
Going concern 
 
As described extensively in the Report on operations, to which reference is made for more information, 
2020 was characterized by the health emergency resulting from the worldwide spread of the COVID-19 
virus. Since the beginning of the year, the pandemic put strong pressure on Italy's health system, 
prompting the government authorities to enact a series of measures to restrict mobility, so as to limit the

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risk of spreading the virus among the population. As a result, the COVID-19 emergency has had disruptive 
effects on the regular and ordinary performance of business activities. Passenger transport, particularly 
the high-speed sector, also suffered the consequences of the pandemic.  
 
The Company, in this turbulent context, reacted by taking immediate measures to mitigate the effects of 
events of an extraordinary nature that occurred progressively during the year. It implemented numerous 
actions, in operational and financial terms, to increase resilience to the new conditions, leveraging a 
flexible business model capable of mitigating the downturn and its managerial skills with the support of all 
the shareholder. 
 
From an operational standpoint, to ensure the effectiveness, efficiency and speed of implementation of 
Company initiatives aimed at overcoming the COVID-19 emergency, the Company has set up working 
groups to: 
• carry out initiatives intended to keep in contact with customers and stakeholders to preserve 
continuity in relationships; 
• plan the operational and commercial reactivation process of the company; 
• safeguard and enhance the relationship with employees, developing appropriate information, dialogue 
and sharing initiatives, and ensuring the constant involvement and alignment of people in view of the 
turnaround; 
• prepare scenario simulation models in order to dynamically test the economic and financial adequacy 
of the activities undertaken. 
 
Regarding the financial aspects, reference is made to the extensive description of the procedures through 
which the Company does (and did) manage its financial risks in note 5 “Financial risk management”, with 
particular reference to liquidity risk. 
 
Based on the actions undertaken and the evidence emerged, the Directors prepared the Financial 
Statements on a going concern basis, insofar as the Directors have confirmed that there are no indicators 
- financial, operational or of any other nature - that could point to a difficulty in the Company’s ability to 
meet its obligations in the foreseeable future and in particular in the next twelve months 
 
3. Accounting policies 
 
The most important accounting standards and policies adopted in the preparation of the financial 
statements are briefly illustrated below. 
 
Non-current assets 
 
(i) Goodwill 
 
The Goodwill recognition originates from the reverse merger whereby Italo acquired its parent company, 
GIP III Neptune SpA, which carried this intangible on its Balance Sheet as of December 31, 2018 as a result 
of the completion of the Purchase Price Allocation (or PPA) process related to the Italo shares. 
The Goodwill resulting from acquisition is determined as the difference between the cost of the business 
combination and the acquirer’s interest in the difference between the assets acquired and liabilities 
assumed measured at fair value. 
 
(ii) Intangible assets  
 
Intangible assets are assets without physical substance, controlled by the Company and able to produce 
future economic benefits, as well as goodwill arising on an acquisition of a business. The definition of an 
intangible asset requires it to be identifiable to distinguish it from goodwill. This requirement is usually 
met when:

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67 
• the intangible assets arise from a legal or contractual right; or 
• the assets are separable, or may be sold, transferred, rented or exchanged, either individually or as an 
integral part of other assets. 
Intangible assets are recognized at purchase or production cost including directly attributable ancillary 
charges to bring it to working condition. No revaluations are permitted, even for the application of 
specific Italian laws. 
Intangible assets with a defined useful life are amortized systematically over the asset’s useful life, 
meaning the estimated period for which the assets will be used by the Company. 
 
Trademark  
The Trademark recognition originates from the reverse merger whereby Italo acquired its parent 
company, GIP III Neptune SpA, which carried this intangible on its Balance Sheet as of December 31, 2018 
as a result of the completion of the Purchase Price Allocation (or PPA) process related to the Italo shares.  
The asset refers to the fair value of the Italo brand, determined by estimating fair value, with the 
assistance of an independent expert, on the basis of estimates based on assumptions deemed to be 
reasonable and realistic, and based on the information available at the acquisition date. The choice of 
method used to estimate the value of the trademark was made taking into account the purpose of the 
transaction and the nature of the intangible asset itself. In particular, in line with expert opinion and 
generally accepted practice, the value of the trademark owned by Italo was determined by using the 
income method, discounting the future economic benefits generated by the intangible asset being 
measured. The income method was applied using the discounted value of expected royalty income.  
 
Customer Relationships 
The recognition of Customer relationships originates from the reverse merger whereby Italo acquired its 
parent company, GIP III Neptune SpA, which carried this intangible on its Balance Sheet as of December 
31, 2018 as a result of the completion of the Purchase Price Allocation (or PPA) process related to the 
Italo shares. Recognition was based on measurement of discounted future income on the basis of the 
expected residual margin to be earned on the Company’s customer base. Fair value measurement of 
customer relationships was based on discounted future cash flows.  
 
The estimated useful lives of our primary intangible assets are as follows:  
 
Intangible asset 
Useful life in years  
Software   
3-5 
Railway license and safety certificates 
5 
Trademark 
10 
Customer relationships 
14 
 
(iii) 
 Property, plant and equipment  
 
Property, plant and equipment are recognized at cost and recorded at the purchase price or at the cost of 
production including directly attributable ancillary charges to bring it to working condition, after 
deducting any impairments. No revaluations of property, plant and equipment are permitted, even for 
the application of specific laws. 
Leasehold improvements, upgrades and transformations are capitalized to the applicable asset when it is 
likely that they will increase the future economic benefits expected from the use or sale of the asset. They 
are:  
• recorded as an increase to the asset in question; 
• depreciated over the useful life of the improvements made or the remaining term of the related lease 
contract, whichever is shorter. 
 
When measuring the term of the lease contract, the possibility of renewing it must be considered, in the 
event that this is reasonably certain and therefore dependent on the will of the lessee.

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                                                                                 68 
Property, plant and equipment is depreciated on a straight-line basis over the asset’s useful life, meaning 
the estimated period for which the asset will be used by the Company. Said period starts from the month 
in which the asset starts to be used or could have been used. When the item of property, plant and 
equipment is comprised of a number of significant components with different useful lives, depreciation is 
performed for each component separately. The amount to be depreciated is represented by the 
recognition amount less the presumed residual value at the end of its useful life. Land, even if purchased 
jointly with a building, fine art collections, as well as property, plant and equipment held for sale are not 
depreciated. Any changes to the depreciation plan resulting from a revision of the useful life of the 
property, plant and equipment, of the residual value or the manner in which the economic benefits of the 
asset are obtained, are recognized prospectively. 
 
The estimated useful lives of items of property, plant and equipment are as follows:  
 
Property, plant and equipment 
Useful life in years 
AGV/EVO rolling stock 
30 
Buildings  
10-30 
Other property, plant and equipment  
5-10 
Onboard telecommunications 
5 
Seat upholstery 
6 
Investments at railway stations and depots 
Base on the lease term 
 
(iv)  Financial expenses capitalized 
 
The financial expenses incurred to purchase, build or produce an asset that justify capitalization are 
included in the cost of the same asset. Such financial expenses are capitalized as part of the cost of the 
asset if it is likely that they will lead to future economic benefits for the Company and if they can be 
reliably calculated. 
The capitalization of said financial expenses starts from the moment in which the Company satisfies the 
following conditions: 
• it has incurred the costs relating to the asset in question (costs for the purchase/production of the 
asset that led to the need to take out a loan); 
• the activities required to prepare the asset for the use envisaged or for its sale are in progress. 
 
The Company must suspend the capitalization of financial expenses: 
• during prolonged periods in which the development/production of the asset that justifies its 
capitalization is suspended; 
• when all of the operations required to render the asset (that justify said capitalization) in a condition 
to guarantee the envisaged use or the sale, have been substantially completed.  
 
(v)  Right-of-use assets and current and non-current lease liabilities  
 
Finance and operating leases are accounted for in accordance with IFRS 16, which requires the lessee to 
recognize the leased item as an asset and a matching financial liability initially measured at the present 
value of future lease payments. The depreciation of right-of-use assets and interest on the lease liability 
are recognized in the income statement. 
The Company, acting in accordance with the standard, does not recognize arrangements where the 
underlying asset is of low value (assets with a value lower than €5,000) or leases contracts with terms 
equal to or less than 12 months as a lease.  
 
Contracts for which the exemption has been applied fall mainly within the following categories: 
• computers, phones and tablets; 
• printers; 
• other electronic devices.

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69 
 
The Company has determined the duration of the lease as the non-cancelable period of the contract, 
together with periods covered by an option to extend and terminate the contract, if it is reasonably 
certain that these options will be exercised. 
The Company uses its judgment in assessing whether the extension option is reasonably certain.  
In carrying out this assessment, the Company takes into account all relevant factors that involve an 
economic incentive in the exercise of the extension option. 
 
After the commencement date, the Company must reassess the carrying amount of the lease liability to 
take into account any new assessment or lease modifications. This reassessment may concern: 
 
• the duration of the lease upon the occurrence of a significant event or significant change in 
circumstances within the Company’s control and has an impact on the reasonable certainty of 
exercising an option not previously included in its assessment of the duration of the lease or of not 
exercising an option previously included in its assessment of the duration of the lease (for example, a 
change in the Company strategy) or as a result of amendments to contractual terms; 
• the contractually agreed-upon payment. 
 
The Company has included the extension period in the duration of the lease with reference to the leases 
of the Company’s headquarters and the stations and maintenance and formation plants of the fleet 
(where applicable) as they are of significant importance for its activities. Such leases have a short non-
cancelable period and the absence of a promptly available replacement would have a negative effect on 
the Company’s business activities. 
 
(vi)  Impairment of non-financial assets 
 
At the end of each reporting period, non-financial assets are analyzed to assess whether there is any 
indication that they may be impaired. If events occur that result in the presumed impairment of the non-
financial assets, their recoverability is assessed by comparing the carrying amount with the related 
recoverable amount represented by the higher of the asset’s fair value less costs of disposal and its value 
in use. The value in use is calculated on the basis of reasonable and demonstrable assumptions that 
represent the best estimate of the future cash flows that will be generated during the residual useful life 
of the asset, giving due importance to external indicators. When the recoverable amount of a single asset 
cannot be estimated, the Company estimates the recoverable amount of the cash generating unit to 
which the asset belongs. More specifically, the calculation is made for a single asset or for the smallest 
identifiable set of assets that generate autonomous incoming cash flows resulting from its use on a 
continuous basis (cash generating unit – “CGU”). The impairment is recognized in the income statement. 
If the reasons for the impairment no longer apply, the value of the assets is reinstated and the adjustment 
is recorded in the income statement as a write-back (reversal), except for goodwill. The reversal is made 
at the lower of the recoverable amount and the carrying amount before the impairments made and 
reduced by the charges for amortization that would have been made if no impairment loss been 
recognized. 
 
Current assets 
 
(i) Inventories 
Final inventories of finished products are recognized at the lower of purchase cost and net realizable 
value represented by the amount that the Company expects to obtain from their sale during the normal 
course of business, net of ancillary sales costs. The cost of inventories is determined by applying the 
weighted average cost method, written down on the basis of market trends and the presumed lack of use 
of the inventories linked to obsolete or slow-moving goods.

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White certificates 
 
White certificates (Energy Efficiency Certificates or EECs) are awarded by the Ministry of Infrastructure 
and Transport (currently Ministry of sustainable infrastructures and mobility), through the Gestore dei 
Servizi Energetici (Energy Services Operator) based on the achievement of energy savings through the 
application of efficient technologies and systems.  
 
In the period between the Company acquiring the right to the certificates by providing the service and the 
effective issue of the EECs on completion of the certification process and their subsequent sale, revenues 
from EECs are recognized in the Company’s financial statements on an accruals basis, based on the best 
estimate of the number of EECs to be issued, in proportion to the estimated saving of TOE (Tons of Oil 
Equivalent) recorded during the period. They are measured at the weighted average market value for the 
energy year (as defined by the Italian Energy Services Operator) on the reporting date for the financial 
statements and recognized in warehouse inventories until their sale. Given the timing difference between 
the Company acquiring the right to receive the certificates (the end of each period in which the Company 
provides the service) and their effective issue to the recipient (following certification by the Italian Energy 
Services Operator) and sale, the Company recognizes revenues in its accounts based on the estimated 
number of EECs it believes it has the right to receive at the end of each period, measured at the weighted 
average market value for the energy year available on the reporting date. When the certificates are 
effectively sold, the Company then recognizes any loss or gain with respect to the previously estimated 
amount.  
 
(ii) Grants 
 
Grants, including non-monetary grants measured at fair value, are recognized when there is reasonable 
certainty that they will be received and that the Company will meet all of the conditions required for their 
disbursement. 
 
(iii)  Receivables and current financial assets  
 
Trade receivables, other receivables and current assets and current financial assets are held within the 
context of a business model where contractual cash flows collected represent solely of payments of 
principal and interest accrued thereon. Consequently, they are initially recognized at fair value adjusted 
by directly attributable transaction costs and subsequently recognized at amortized cost on the basis of 
the effective interest rate method (namely the interest rate that, at the time of initial recognition, renders 
the present value of future cash flows and the carrying amount equal), appropriately adjusted to take any 
write-downs into account, through the recognition of a provision for doubtful accounts. Receivables due 
from customers and other financial receivables are included in current assets, with the exception of those 
whose contractual expiry date is over twelve months from the reporting date, which are classified as non-
current assets. 
 
Financial assets, including, among other things, bank deposits and other financial instruments that do not 
qualify as cash equivalents, are classified in the following categories in accordance with IFRS 9: financial 
assets at amortized cost; financial assets at fair value through other comprehensive income; financial 
assets at fair value through profit or loss.  
Classification within the above categories is based on the business model used to manage the financial 
asset and the nature of the contractual cash flows generated by the asset. 
 
(iv)    Impairment of financial assets  
 
At the end of each reporting period, all financial assets, other than those measured at fair value through 
profit or loss are analyzed to assess whether there is objective evidence that they may be impaired. IFRS 9 
requires the application of a model based on expected credit loss. The Company uses the simplified

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71 
approach to estimate credit losses throughout the life of the receivables and takes into account its 
historical credit loss experience, as adjusted to reflect current conditions and estimated future economic 
conditions. If there is evidence of impairment, the loss is accounted for as a financial expense.  
 
The expected credit loss model requires the immediate recognition of credit losses expected throughout 
the life of the financial asset, without the need to wait for the materialization of a trigger event. 
 
For financial assets recognized at amortized cost, when an impairment loss has been identified, the value 
of the impairment loss is measured as the difference between the carrying amount of the asset and the 
present value of expected future cash flows, discounted on the basis of the original effective interest rate. 
This amount is recognized in the income statement. 
 
(v) Derecognition of financial assets 
 
Financial assets are derecognized when one of the following conditions is met: 
• the contractual right to receive the cash flows from the asset has expired; 
• the Company has substantially transferred all of the risks and rewards related to the asset, transferring 
its rights to receive the cash flows from the asset or assuming a contractual obligation to pass the cash 
flows received to one or more beneficiaries by virtue of an agreement that meets the requirements set 
out in IFRS 9 (pass through test); 
• the Company has not transferred nor substantially maintained all of the risks and rewards related to 
the financial asset, but has transferred control. 
 
(vi)  Offsetting financial assets and liabilities 
 
The Company offsets financial assets and liabilities if and only if: 
• there is a legally exercisable right to offset the amounts recognized in the financial statements;  
• there is an intention either to offset or to dispose of the asset and settle the liability at the same time. 
 
(vii) Cash and cash equivalents 
 
Cash and cash equivalents comprise cash on hand, demand deposits, together with financial assets whose 
maturity from the date of acquisition is equal to or less than three months, that can readily be convertible 
into cash, and that are subject to an insignificant risk of changes in value. The components of cash and 
cash equivalents are measured at fair value. Term deposits are not included in cash and cash equivalents 
as they do not meet the requirements of IFRS. 
 
Short-term bank deposits whose original maturity is equal to or more than three months, which do not 
meet the requirements of IAS 7, are included separately in the statement of financial position as part of 
total current assets.  
Collection transactions are recorded by date of the bank transaction, while payment operations also take 
into account the order date.   
 
Current and non-current liabilities 
 
(i)  Financial liabilities and trade payables 
 
Financial liabilities and trade payables are recognized when the Company becomes a party to the related 
contractual clauses and are initially recognized at fair value, adjusted by any directly attributable 
transaction costs. 
They are later recognized at amortized cost using the effective interest rate method.

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(ii) Derecognition of financial liabilities 
 
Financial liabilities are derecognized when they are extinguished, namely when the contractual obligation 
has been met, cancelled or prescribed, or when they are sold with a substantial transfer of all the risks 
and rewards of their ownership. An exchange of debt instruments with substantially different contractual 
terms, must be accounted for as an extinguishment of the original financial liability and the recognition of 
a new financial liability. Similarly, a substantial variation of the contractual terms of an existing financial 
liability must be accounted for as an extinguishment of the original financial liability and the recognition 
of a new financial liability.   
 
(iii)  Provisions for risks and charges 
 
Provisions for risks and charges regard costs and charges of a specific nature, whose existence is certain or 
likely, for which at the closing date of the reference period, the amount and/or date of occurrence have 
not been established.  
Allocations to these provisions are recognized when: 
• the existence of a current, legal or constructive obligation, resulting from a past event, is likely; 
• it is likely that the obligation will be fulfilled against payment; 
• the amount of the obligation can be reliably estimated.    
 
Provisions are recognized at a value that represents the best estimate of the amount that the Company 
should reasonably pay to extinguish the obligation or to transfer it to third parties on the closing date of 
the period. When the financial impact of the passing of time is significant and the payment dates of the 
obligations can be reliably estimated, the allocation is determined by discounting the expected cash flows 
taking the risks associated with the obligation into account; the increase of the provision related to the 
passing of time is recognized in the income statement under “Financial expenses”. 
The costs that the Company expects to incur to implement restructuring programs are recognized in the 
year in which the program is formerly defined and the interested parties have a valid expectation that the 
restructuring will take place. 
Provisions are updated periodically to reflect changes in cost estimates, realization timing and the 
discounting rate; revised estimates are recorded under the same income statement item that previously 
covered the allocation. When the liability relates to tangible assets, the changes in estimates of the 
provisions are recognized in a balancing entry to the asset to which they refer within the limits of the 
recognition amounts; any surplus is booked to the income statement. 
If it is expected that all expenses (or a part of the same) required to extinguish an obligation are repaid by 
third parties, the indemnity, when virtually certain, is recognized as a separate asset. 
 
(iv)  Employee benefits 
 
Short-term benefits are represented by salaries, wages, the related social security contributions, 
compensated holiday leave and incentives paid in the form of a bonus. These benefits are accounted for 
as personnel cost components for the period in which the employee works. 
In defined benefit plans, which include the post-employment benefits due to employees under art. 2120 
of the Italian Civil Code (“TFR”), the amount of the benefit to be paid to the employee can only be 
quantified when the employment ends, and is linked to one or more factors, such as age, years of service 
and pay; therefore, the related charge is recognized in the relevant income statement on the basis of an 
actuarial calculation. The liability recognized in the financial statements for defined benefit plans 
corresponds to the present value of the obligation on the date of the reporting period. The obligations for 
defined benefit plans are determined annually by an independent actuary using the Project Unit Credit 
method. The present value of a defined benefit plan is determined by discounting the future cash flows at 
a specific interest rate. The actuarial gains and losses resulting from the above-cited adjustments and 
changes in actuarial assumptions are recognized in the statement of comprehensive income.

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73 
If the employee opts for external pension funds, the company is only responsible for paying a defined 
contribution into the chosen fund and, from said date, the newly-accrued amounts are considered as 
defined contribution plans and are not subject to actuarial valuations. 
The liabilities for obligations relating to other medium/long-term benefits to employees, such as 
management incentive plans, are calculated on the basis of actuarial assumptions. The impact resulting 
from changes in actuarial assumptions or from adjustments based on past experience are recognized in 
the income statement. 
 
(v) Fair value measurement 
 
Fair value measurements and disclosures are made or prepared applying IFRS 13 “Fair value 
measurement”. The fair value represents the price that would be received from the sale of an asset or 
paid to transfer a liability in an orderly transaction between market participants at the measurement 
date. 
The fair value measurement is based on the assumption that the sale of the asset or transfer of the 
liability takes place in the principal market, namely the market with the greatest volume and level of 
transactions for the asset or liability. In the absence of a principal market, it is assumed that the 
transaction takes place in the most advantageous market to which the Company has access, namely the 
market that maximizes the amount that would be received to sell the asset or minimizes the amount that 
would be paid to transfer the liability. 
The fair value of an asset or a liability is determined by considering the assumptions that market 
participants would use to set the price of the asset or liability, on the assumption that they are acting 
according to their best economic interest. Market participants are informed, independent buyer or 
sellers, able to enter into a transaction for the asset or liability and motivated but not obliged nor induced 
to perform the transaction. 
 
Measuring the fair value of financial instruments 
 
The fair value of quoted financial instruments is measured by observing prices that can be directly 
accessed on the market, while for non-quoted financial instruments, by using specific measurement 
techniques that make the greatest use possible of inputs observable on the market. In the event in which 
this is not possible, the inputs are estimated by management, taking the characteristics of the 
instruments to be measured into account. Changes in the assumptions made in input data estimates 
could impact the fair value recognized in the financial statements for the instruments.  
 
The fair value of derivative financial instruments entered into by the Company is measured using 
valuation techniques widely used in the financial markets and market data at the date of preparation of 
the financial statements. 
 
The fair values of the financial instruments listed below are classified on the basis of a fair value hierarchy 
which reflects the significance of the inputs used to measure the fair value (IFRS 13 “Fair value 
measurement”).  
• Level 1 - Quoted prices (active markets): the data used in measurements is represented by quoted 
prices in markets in which assets and liabilities that are identical to those to be measured are traded; 
• Level 2 - Use of parameters observable on the market (for example, for derivatives, the exchange rates 
recorded by the Bank of Italy, market interest rate curves, volatilities provided by Bloomberg, credit 
spreads calculated on the basis of Credit default swaps, etc.) other than the quoted prices of level 1; 
• Level 3 - Use of parameters that cannot be observed on the market (internal assumptions, for 
example, cash flows, risk-adjusted spreads, etc.). 
The fair value measurement of instruments entered into by the Company is made according to methods 
that are classified in level 2.

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(vi)  Derivative financial instruments 
 
Derivative instruments are considered as assets held for trading and measured at fair value through profit 
or loss, with the exception of cases in which they are structured as effective hedges against a specific risk 
relating to the underlying assets or liabilities or commitments undertaken by the Company. 
More specifically, the Company uses derivative instruments in its hedging strategies with a view to 
offsetting the risk of changes in the fair value of financial assets and liabilities recognized in the financial 
statements or of contractually-defined commitments (fair value hedges) or of changes in expected cash 
flows relating to contractually-defined or highly likely transactions (cash flow hedges). 
The effectiveness of hedges is documented and tested both at the beginning of the transaction and 
periodically (at least at each financial statement reporting date) and is measured by comparing the 
changes in the fair value of the hedging instrument with those of the hedged element or, in the case of 
more complex instruments, through statistical analyses based on the change in the risk. 
 
Cash flow hedges 
 
Changes in the fair value of derivatives designated as cash flow hedges and that qualify as such, are 
recognized, limited to the “effective” portion only, in the statement of comprehensive income through a 
specific equity reserve (“Cash flow hedge reserve”), which is then reversed to the income statement at 
the time the underlying asset or liability impacts profit and loss. The change in the fair value relating to 
the ineffective portion is immediately recognized in the income statement for the period. If the 
occurrence of the underlying transaction is no longer considered highly likely, the portion of the “Cash 
flow hedge reserve” relating to the transaction is immediately reversed to the income statement. If, 
instead, the derivative instrument is sold, reaches maturity or no longer qualifies as an effective 
instrument to hedge the risk against which the transaction had been performed, the portion of the cash 
flow hedge reserve relating to the transaction is maintained until such time as the underlying contract 
materializes. The recognition of the hedge as a cash flow is terminated prospectively. 
 
(vii) Revenue and costs 
 
Revenue is recognized when control of the good or service passes to the customer. Revenue is measured 
at the transaction price, which is based on the consideration that the Company expects to receive for the 
transfer to the customer of the goods and services promised, net of taxes paid by the customer to the tax 
authority.  
 
The Company enters into agreements that, in general, can be distinguished and treated as separate 
performance obligations. Revenue is recognized to the extent of the price that the Company expects to 
receive. The Company attributes the price of the transaction to performance obligations on the basis of 
stand-alone selling prices (SSP) for every obligation. In the absence of an SSP, the Company estimates 
such price by using a market adjusted approach. 
 
The Company generates revenue from transport services and recognizes a contract with a customer when 
it is legally binding between the Company and the customer, the parties’ rights are identified, the contract 
has commercial substance and the collection of the price is probable. Payments from customers are 
generally due before the service is used, as tickets are purchased before the journey.  
The Company does not recognize any asset that it does not expect to recover. Revenue is recognized as 
the service is provided (at a point-in-time). The Company has also opted to apply the practical expedient 
indicated by he standard, allowing it to recognize any incremental costs to obtain the contract as they are 
incurred, if the asset that would otherwise be recognized is to be fully depreciated in a year or less.  
 
Revenue from transport services is recognized in the income statement as soon as passengers are 
transported, taking into account any commercial discounts, premiums and customer loyalty programs. 
Train tickets sold but not yet used for travel are recognized as “Deferred revenues from transport services”

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75 
under current liabilities, taking into account the terms and conditions of the tickets.    
 
Revenue from the provision of services is recognized when the service has been rendered; revenues from 
sales when control is effectively transferred. 
 
Costs are recognized on an accrual basis when relating to services and goods purchased or consumed 
during the period or are systematically distributed, namely when the future usefulness of the same 
cannot be identified. 
Operating lease payments are recognized in the income statement on a straight-line basis over the term 
of the lease contract, unless they fall within the scope of IFRS 16 – Leases, as described above. 
The income and the expenses generated by the disposal and/or sale of non-current assets are recognized 
in a specific income statement item “(Losses) gains on disposal of non-current assets”.  
Financial income and expenses are recognized in the income statement over the course of the year in 
which they accrued.  
 
Non-recurring expenses and revenues 
 
Non-recurring expenses and revenues are generated from non-recurring events or transactions, namely 
transactions or events that do not occur frequently in the normal course of operations. These items are 
reported separately from recurring revenues and costs.  
 
(viii) Foreign currency transactions 
 
The revenues and the costs relating to transactions in currencies other than the Company’s functional 
currency are recognized at the current exchange rate on the day on which the transaction is recorded. 
 
Monetary assets and liabilities in currencies other than the functional currency are converted into the 
functional currency by applying the current exchange rate on the reporting date of the financial 
statements, recognizing the impact on the income statement. Non-monetary assets and liabilities 
expressed in currencies other than the functional currency, measured at cost, are recognized at the 
exchange rate at the time of initial recognition; when the measurement is made at fair value, or at the 
recoverable or realizable amount, the current exchange rate on the date the said value is determined is 
adopted. 
 
(ix)   Dividends 
 
Dividends are recognized on the date on which the resolution of the Shareholders’ Meeting that 
established the right to receive the payment is approved, except when the sale of shares before the ex-
dividend date is reasonably certain. 
The dividends approved by the Shareholders’ Meeting are represented as changes in equity in the year in 
which they are approved. 
 
(x) Income tax and deferred taxation 
 
Current taxes on income for the year - recognized under “Current tax payables” net of any advances paid, 
or under “Current tax receivables”, when the tax account shows a debit balance - are calculated on the 
basis of an estimate of taxable income and in accordance with tax legislation in force. Taxable income 
differs from net profit in the income statement because it excludes items of income and expenses that are 
taxable or deductible in other years or that are non-taxable or non-deductible. More specifically, said 
payables and receivables are determined by applying the tax rates applicable on the reporting date.

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Current taxes are booked in the income statement, with the exception of those relating to items 
recognized outside of the income statement, which are directly booked to other comprehensive income 
or equity.  
Deferred taxes are calculated based on the temporary differences between the carrying amount recorded 
in the financial statements and the corresponding amounts recognized for tax purposes, by applying the 
tax rate in force on the date on which the temporary difference will reverse, on the basis of the tax rates 
applicable on the reporting date.  
 
Deferred tax assets arising from all temporary differences, tax losses or tax credits are recognized when 
their recovery is highly probable, that is when it is expected that future taxable income will be sufficient 
to recover the tax assets. Recoverability of deferred tax assets is reviewed at every year-end.  
Deferred tax assets not recognized in the financial statements are re-analyzed on each reporting date and 
are recognized to the extent to which it is probable that future taxable income will enable their recovery. 
Deferred tax liabilities and assets, resulting from the application of legislation relating to the same tax 
authority, are offset if there is a legally exercisable right to offset current tax assets against the current tax 
liabilities that will be generated at the time of their reversal. 
 
(xi)  Related parties 
 
Related parties are considered those that share the same controlling entity as the Company, companies 
that directly or indirectly control it, are subsidiaries, or are subject to joint control by the Company and 
those in which the Company holds an investment that enables it to exercise a significant influence. 
Related parties also include members of the Board of Directors and key management personnel. Key 
management personnel are those persons having authority and responsibility for planning, directing and 
controlling the activities of the Company, either directly or indirectly.   
 
Recently-issued accounting standards 
 
(i) Accounting standards, amendments and interpretations not yet applicable and not adopted early by 
the Company 
 
At the reporting date, the competent bodies of the European Union have not yet completed the 
endorsement process required for adoption of the following accounting standards and amendments: 
 
IFRS 
17 
“Insurance 
Contracts” 
On May 18, 2017, the IASB issued IFRS 17 “Insurance Contracts”, which 
establishes the criteria to be applied in the recognition, measurement, 
presentation and disclosure of insurance contracts included in the standard. The 
aim of IFRS 17 is to ensure that an entity provides relevant information that 
faithfully represents such contracts, thus enabling the users of financial 
statements to assess the effect that insurance contracts have on the entity’s 
financial position, operating performance and cash flows. 
On 25 June 2020, IASB issued certain amendments to IFRS 17 to: 
• reduce costs by simplifying some requirements in the Standard; 
• make financial performance easier to explain;  
• ease transition by deferring the effective date of the Standard to 2023. 
As such, the provisions of IFRS 17 are effective for annual periods starting on or 
after January 1, 2023. 
 
 
Amendments to IAS 1 
“Presentation 
of 
Financial Statements” 
On January 23, 2020, the IASB issued certain amendments to IAS 1, to clarify how 
to classify debts and other liabilities as current or non-current. 
The amendments will take effect for the annual reporting periods falling on or 
after January 1, 2023.

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77 
Amendments to IFRS 
3 
“Business 
Combinations” 
On May 14, 2020, the IASB issued certain amendments to IFRS 3, to update a 
reference in IFRS 3 to the Conceptual Framework for Financial Reporting without 
changing the accounting requirements for business combinations. 
The amendments to IFRS 3 will take effect for the annual reporting periods falling 
on or after January 1, 2022. 
 
 
Amendments to IAS 
16 “Property, Plant 
and Equipment” 
On May 14, 2020, the IASB issued certain amendments to IAS 16. The 
amendments prohibit a company from deducting from the cost of property, plant 
and equipment amounts received from selling items produced while the company 
is preparing the asset for its intended use. Instead, a company will recognize such 
sales proceeds and related costs in profit or loss. 
The amendments to IAS 16 will take effect for the annual reporting periods falling 
on or after January 1, 2022. 
 
 
Amendments to IAS 
37 
“Provisions, 
Contingent Liabilities 
and 
Contingent 
Assets” 
On May 14, 2020, the IASB issued certain amendments to IAS 37, to specify which 
costs a company includes when assessing whether a contract will be loss-making. 
The amendments to IAS 37 will take effect for the annual reporting periods falling 
on or after January 1, 2022. 
 
 
Amendments to the 
“Annual 
Improvements to IFRS 
Standards 2018-2020 
Cycle” 
On May 14, 2020, the IASB issued certain amendments to IFRS 1 “First-time 
Adoption of International Financial Reporting Standards”, IFRS 9 “Financial 
Instruments”, IAS 41 “Agriculture” and the Illustrative Examples accompanying 
IFRS 16 “Leases”.  
 
The amendments to the “Annual Improvements to IFRS Standards 2018-2020 
Cycle” will take effect for the annual reporting periods falling on or after January 
1, 2022. 
 
The Company does not think that the adoption of these standards and amendments had a significant 
impact on its financial condition and operating results at the reporting date. 
 
(ii) Accounting Standards, amendments and interpretations IFRS and IFRIC approved by the European 
Union, not yet applicable and not adopted early by the Company as at December 31, 2020 
 
At the date of the annual financial statements, the competent bodies of the European Union have not yet 
completed the endorsement process required for adoption of the following accounting standards and 
amendments: 
 
Amendments to IFRS 
4 
“Insurance 
Contracts” 
On May 28, 2020 the IASB issued certain amendments to IFRS 4, to defer to 
January 1, 2023 the fixed expiry date of expiration of the temporary exemption 
from applying IFRS 9 “Financial Instruments” for insurance companies. 
 
The amendments to IFRS 4 will take effect for the annual reporting periods falling 
on or after January 1, 2021. 
 
 
Amendments to IFRS 
9, IAS 39, IFRS 7, IFRS 
4 
and 
IFRS 
16 
“Interest 
Rate 
Benchmark Reform – 
Phase 2” 
On August 27, 2020 the IASB issued certain amendments to IFRS 9, IAS 39, IFRS 7, 
IFRS 4 and IFRS 16. These amendments form the second part of the two-phase 
plan to reform benchmark interest rates. 
The amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16 will take effect for 
the annual reporting periods falling on or after January 1, 2021.

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The Company does not think that the adoption of these standards and amendments had a significant 
impact on its financial condition and operating results at the reporting date. 
 
(iii) Accounting Standards, amendments and interpretations adopted early by the Company  
 
At the reporting date, the competent bodies of the European Union have approved the adoption of the 
following accounting standards and amendments, which had been adopted early by the Company in the 
previous year. 
 
Interest 
Rate 
Benchmark 
Reform 
(amendments to IFRS 
9, IAS 39 and IFRS 7) 
On September 26, 2019, the IASB published “Amendments to IFRS 9, IAS 39 and 
IFRS 7: Interest Rate Benchmark Reform”, which impacts on IFRS 9 “Financial 
Instruments” and IAS 39 “Financial Instruments: Recognition and Measurement”, 
in addition to IFRS 7 “Financial Instruments: Disclosures”.  
In particular, the amendments have modified a number of requirements for the 
application of hedge accounting, with a view to mitigating the impact of 
uncertainty over future cash flows as a result of the reform of the InterBank 
Offered Rate (IBOR), which reverberates on interest rates.    
 
The IASB has adopted a phased approach to the provision of adoption guidelines 
following the above reform. With these amendments, the Board has limited itself 
to a first phase regarding to the accounting effects of uncertainty in the period 
leading up to the reform. The amendments require companies to provide 
additional information to investors about their hedging relationships which are 
directly affected by these uncertainties. 
 
The amendments are effective from January 1, 2020 but early adoption at 31 
December 2019 is permitted. 
 
The above amendments are considered relevant to the Company, given that 
hedge accounting is applied to its exposures to changes in interest rate 
benchmarks.  
 
As a result, the Company has opted for early adoption of the amendments for the 
year ended December 31, 2019.  
 
At the reporting date, the Company holds floating rate debt instruments linked to 
Euribor (bank borrowings), with the related cash flows partially hedged via 
interest rate swaps (“IRSs”) expiring in 2022 and having a total notional value of 
€500 million. Further information is provided in note 5. “Financial risk 
management” and note 38 “Other current liabilities” in this document. 
 
Early adoption of these amendments means that: 
• the Company will continue to classify its derivative instruments as hedges and 
to apply hedge accounting, despite uncertainty over changes to the floating 
interest rates included in the interest rate swaps;  
• as permitted by the amendments themselves, the Company will continue to 
account for gains and losses on changes in the fair value of the derivative 
instruments classified as hedges, and which are subject to the reform, in a 
specific cash flow hedge reserve in equity. It has opted to do this despite the 
uncertainty caused by the IBOR reform in relation to the timing and amount of 
the cash flows connected with the hedged items.

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79 
(iv) New accounting Standards, amendments and interpretations adopted by the Company  
 
At the reporting date, the competent bodies of the European Union had approved adoption of the 
following accounting standards and amendments, which have therefore been adopted for the first time 
by the Company in 2020. 
 
 Amendments 
to 
references 
to 
the 
Conceptual 
Framework for IFRS 
On March 29, 2018, the IASB issued amendments to the references in IFRS to the 
Conceptual Framework. The amendments aim to update existing references to 
the Conceptual Framework in the various standards and interpretations, 
replacing them with references to the Revised Conceptual Framework. 
The amendments are effective for reporting periods starting on or after January 
1, 2020. 
 
Amendments to IFRS 
3: Definition of a 
Business 
On October 22, 2018, the IASB issued this amendment to IFRS 3 to clarify the 
definition of business, to resolve the difficulties that arise when an entity 
determines whether it has acquired a business or a group of assets that does not 
meet the definition of business provided in IFRS 3. 
The amendment is effective for reporting periods starting on or after January 1, 
2020. 
 
 
Amendments to IAS 1 
and IAS 8: Definition 
of Material 
 
On October 31, 2018, the IASB issued this amendment to IAS 1 and IAS 8 to clarify 
the definition of “material”, to help companies decide whether information 
should be included in their financial statements. 
The amendment to IAS 1 and IAS 8 is effective for reporting periods starting on or 
after January 1, 2020. 
 
 
Amendments to IFRS 
16 “Leases” 
On May 28, 2020, the IASB issued certain amendments to IFRS 16, introducing a 
practical expedient that allows lessees not to consider rent concessions occurring 
as a direct consequence of the COVID-19 pandemic as lease modifications.    
The amendments to IFRS 16 will take effect for the annual reporting periods 
falling on or after June 1, 2020. 
 
The Company thinks that the application of these amendments to the relevant IFRSs will not have a 
significant impact on its operating performance or financial condition. 
 
4. Use of estimates 
 
Preparation of the financial statements entails the use of accounting estimates, often based on complex 
and/or subjective assessments, based on past experience and assumptions considered reasonable and 
realistic with regard to the information known at the time of the estimate. The use of these estimates 
influences the carrying amount of assets and liabilities and the disclosure of potential assets and liabilities 
at the reporting date, as well as the amount of revenues and costs in the accounting period represented. 
Actual results may differ from estimated ones due to the uncertainty that characterizes the assumptions 
and the conditions on which the estimates are based. Conditions become even more uncertain in a 
context such as the current one, with the significant slowdown in nearly all the sectors of the national and 
international economy due to the COVID-19 pandemic emergency.  
 
The estimates and assumptions are periodically reviewed and the effects of any change are reflected in 
the income statement. 
 
To better understand the interim financial statements, the most significant estimates made during the 
preparation process of the interim financial statements, because they are substantially based on

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subjective opinions, assumptions and estimates relating to areas which, by their very nature, are 
uncertain, are illustrated below. Changes to the conditions underlying the judgements and assumptions 
adopted could have a significant impact on the subsequent results. 
 
Impairment of assets 
 
Assets are analyzed to ascertain whether there is any impairment loss, recognized by means of a write-
down, if there are indicators that lead to assumed difficulties in recovering the related net carrying 
amount through its use. Verifying the existence of the above-cited indicators requires Directors to make 
subjective assessments based on information available within the Company and on the market as well as 
past experience. Furthermore, if it is decided that a potential impairment may have been generated, the 
Company measures the amount of the impairment using measurement techniques that are deemed 
suitable. The correct identification of the elements indicating the existence of any impairment, as well as 
the estimates to determine the amount of impairment, depend on factors that may change over time, 
influencing the measurements and the estimates made by the Directors. 
 
Recoverability of deferred tax assets 
 
Deferred tax assets are recorded in the financial statements, mainly relating to the recognition of tax 
losses and financial expenses that may be used in future years and, to a lesser extent, to income 
components with deferred tax deductibility, for an amount whose recovery in future years is expected to 
be probable. The recoverability of the above-cited deferred tax assets is conditional on the generation of 
future taxable income that is sufficient to absorb the aforementioned tax losses or up to the amount of 
the deferred taxes related to other deferred tax assets. Significant management judgement is required to 
determine the amount of deferred tax assets that may be recognized in the financial statements on the 
basis of the timing and the amount of future taxable income. In particular, it should be noted that 
deferred tax assets have been recognized on financial expenses not previously deducted to the extent 
that it is deemed probable that future taxable profits will be available against which the asset can be 
utilized. This is based on the Company’s updated strategic plans and the fact that the above items may be 
carried forward over an unlimited period.  Despite the current context of the health crisis, the Company 
expects to achieve sufficiently large future taxable profits for the purpose of recovering deferred tax 
assets. 
 
Goodwill 
 
In accordance with the accounting standards applied in preparing the financial statements, goodwill is 
tested for impairment at least annually. To this end, goodwill is allocated to one or more separate cash 
generating units (CGUs), coinciding with the Company, Italo, and its recoverable amount is calculated on 
the basis of the higher of fair value and value in use. If the recoverable amount is less than the carrying 
amount of the CGU, the Company recognizes an impairment loss on the goodwill allocated to the CGU. 
Based on the impairment test carried out as below, the value of the goodwill tested was judged to be 
adequately justified in terms of expected income and the related cash flows. There was, therefore, no 
evidence of impairment such as to require the Company to recognize any impairment loss. 
 
The Company tested goodwill for impairment bearing in mind that the operational and market 
assumptions underlying the plan are affected – in the short/medium/long run - by a greater degree of 
uncertainty related to the overall instability, market volatility risk, the difficult predictability of the health 
and regulatory contexts and, last but not least, the resulting purchasing behavior of passengers. In light of 
these considerations, the value of the goodwill tested during the period was judged to be adequately 
justified in terms of expected income and the related cash flows. As such, there was nothing that 
suggested that the Company should take a goodwill impairment loss. For more information, reference is 
made to note 17. “Goodwill”.

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81 
Lease liabilities 
 
Lease liabilities are initially recognized at the present value of future lease payments at the 
commencement date, using a discount rate equal to the interest rate implicit in the lease. If this rate 
cannot be readily determined, the rate used is the lessee’s incremental borrowing rate. Lease payments 
included in the value of the lease liability include: (i) the fixed component of the lease payments, less any 
lease incentives received; (ii) variable lease payments that depend on an index or a rate (e.g. inflation); 
(iii) any residual value guarantees that the lessee expects to pay; (iv) the exercise price of the purchase 
option; and (v) the extension or termination option only when the exercise of these options is considered 
to be reasonably certain.  
 
Contingent liabilities 
 
The Company recognizes a liability against legal disputes and risks resulting from existing or potential 
lawsuits when it believes that a financial disbursement is likely and when the amount of the liability may 
be reasonably estimated. In the event in which a financial disbursement becomes probable but the 
amount cannot be determined, this fact is reported in the notes to the financial statements. The Company 
continually monitors the status of lawsuits underway and consults experts in legal and tax-related 
matters.  
 
Employee benefits 
 
The liabilities for employee benefits are measured using an actuarial method which requires the use of 
estimates and assumptions to determine the net value of the obligation. The actuarial method considers 
financial parameters, such as the discount rate and the inflation rate curve, and demographic factors, 
such as the mortality rate and the rate of employee turnover. The COVID-19 pandemic in progress has not 
triggered any changes to the assumptions used for the assessment of employee benefits compared to the 
previous year. 
 
5. Financial risk management 
 
The Company’s operations are exposed to the following risks: interest rate risk, risk related to financial 
liabilities, credit risk and liquidity risk.  
 
Exposure to these risks is continuously monitored by the relevant internal department which, in keeping 
with the Company’s risk management strategy, identifies the action to be taken. Certain types of risk are 
mitigated through the use of derivative instruments. 
 
Interest rate risk 
 
In November 2019, the Company revised its capital structure by obtaining a green loan and using the 
proceeds to repay early its existing borrowings4.  
As the Company has floating rate debt, it is exposed to interest rate fluctuations. 
In keeping with the existing hedging policy, the Company has entered into interest rate swaps, most of 
which classifiable as ESG-linked. 
 
As of December 31, 2020 the total notional value of the derivative portfolio is €600,000,000 
(€450,000,000 as of December 31, 2019), with a negative fair value of €2,180,376 (negative fair value of 
€1,480 as of December 31, 2019). For accounting purposes, these transactions qualify as cash flow 
hedges, in line with the risk mitigation strategy adopted by the Company 
 
4 Further information is provided in note 30. “Current and non-current borrowings”.

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If the floating interest rate had been 0.1% higher/lower (10 basis points) than that recorded as of 
December 31, 2020, with all other variables equal, but considering the effect of the derivative contracts, 
the profit/loss for the period before tax would have been €1,230,770 thousand lower/higher (€238,278 
thousand in 2019), and the profit/loss for the period after tax would have been €992,556 lower/higher 
(€181,091 thousand in 2019). 
 
As described in note 3. “Accounting policies – ii) Accounting standards, amendments and interpretations 
adopted early by the Company”, the Company will continue to apply the amendments to IFRS 9 “Financial 
Instruments” and IAS 39 “Financial Instruments: Recognition and Measurement”, in addition to IFRS 7 
“Financial Instruments: Disclosures” until the uncertainty resulting from the reform of interest rate 
benchmarks continues. Once these uncertainties have been resolved, appropriate changes will be made 
to the contract terms of both the hedged and hedging instruments.  
 
It is noted that the impacts of the health crisis on financial markets might determine a change in the fair 
value of these instruments, with effects on equity and income statement.  
  
Risk related to financial liabilities  
 
The Company is exposed to the risk that failure on its part to meet the obligations and commitments laid 
down in the loan agreements might trigger, among others, the relevant acceleration clauses. In addition, 
the provisions of these loan agreements set a number of restrictions on the Company’s operations, with 
adverse effect on its business and, consequently, on its financial condition, operating performance and 
cash flows.    
 
In fact, the loan agreement in place allows lenders to ask the borrower to repay immediately any balance 
outstanding, upon occurrence of certain events. 
The occurrence of such events is subject to certain agreed-upon materiality thresholds, carve-outs and 
grace periods.  
 
The existing loan agreement sets out certain events of default, which are standard conditions for these 
types of loan, such as:  
• Any missed payment, unless remedied as per the contractual timing; 
• Breach of Financial Covenants;  
• Failure to meet the disclosure obligations provided for by the loan agreement, unless remedied as per 
the contractual timing; 
• Cross-default in case of default on any other Company debt;    
• Insolvency due to the Company’s inability to pay its debt or a declaration of insolvency for the 
Company under the law;   
• Failure to comply with the Intercreditor Agreement and the contracts related to it;  
• In the event of a Material Adverse Change as defined by the contract.  
 
Furthermore, a mandatory repayment clause is triggered in case of: 
• Change of control;  
• Sale of all the Company’s assets or issue of a new financial instrument in the capital market.   
 
No events of default occurred in the period under review, the Company honored all its obligations under 
the loan agreements in force from time to time, as illustrated in note 30. “Current and non-current 
borrowings”.  
 
Credit risk 
 
Credit risk represents the Company’s exposure to the risk of potential losses resulting from a 
counterparty’s inability to discharge an obligation.

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83 
The Company’s exposure to credit risk is linked to i) financial investments, such as short-term bank 
deposits and other bank and post office deposits, where counterparties are major banks and ii) the 
Company’s trading activities. 
 
The trade receivables accounted for in the financial statements primarily relate to the indirect sales 
channel, represented by agencies. The measurement of these receivables and establishment of the 
related credit limits are based on credit scores provided by specialist agencies. 
Most ticket sales take place through direct channels without the involvement of an intermediary. As a 
result, the related receivables are collected almost immediately. Specifically:  
• payment for the services offered to customers is usually made before the service is used, as tickets are 
generally purchased before journeys are made;  
• the sales channels and related payment methods offered to customers (electronic money, bank 
transfer, cash) guarantee the certainty of collection at the time of sale, except in the event of fraud 
linked to cloned credit cards.  
 
Ensuring effective management of credit risk is of strategic importance for the Company and, in this 
sense, the type of business and the payment methods used ensure that the Company’s overall exposure 
to credit risk is limited. 
The following table provides a breakdown of trade receivables as of December 31, 2020 and 2019, 
grouped by due dates. 
 
(€) 
2020 
2019 
Current 
      1,658,257  
      8,039,904  
Past due for 0-60 days 
          733,786  
          277,727  
Past due for 61 to 180 days 
                9,779  
                9,305  
Past due for over 181 days 
          385,408  
          275,572  
Total gross trade receivables 
  2,787,230  
  8,602,509  
Provisions for doubtful accounts 
         (371,239) 
         (340,753) 
Total trade receivables 
  2,415,991  
  8,261,756  
 
The Company continuously monitors the recoverability of trade receivables through a specific department 
set up for this purpose. Impairments and/or provisions for doubtful accounts are made on the basis of 
historical experience of the creditworthiness of a counterparty, assessments of expected credit losses and 
of specific evidence in relation to individual exposures, also taking into account the type of contractual 
relationship with the counterparty within the context of the Company’s commercial policies. In this sense, 
provisions for doubtful accounts for each financial year are estimated primarily on the basis of receivables 
past due for over 180 days. As of the reporting date, past due trade receivables for which the Company 
had made no provisions, as they are fully collectible, amount to €757,734. 
 
Given the type of business and the model implemented to manage sales, together with the payment tools 
used, even though the Company’s exposure to credit risk cannot be quantified accurately, it is not 
expected to have a significant impact on the Company’s accounts. 
 
Currency risk 
 
The Company is not exposed to currency risk. 
 
Liquidity risk 
 
Liquidity risk is associated with the Company’s ability to meet its business obligations. Prudent liquidity 
risk management as regards the Company’s ordinary business activities implies maintaining an adequate 
level of cash and cash equivalents and the availability of funds that may be obtained through the use of 
credit facilities.

ITALO| ANNUAL REPORT | 2020                                       REPORT ON OPERATIONS | FINANCIAL STATEMENTS | NOTES  
 
 
                            
                                                                                 84 
The measures adopted by the Italian Government to curb the risk of spread of COVID-19 resulted in a 
temporary drop in the Company’s sales, with repercussions on its cash reserves. Thanks to constant 
monitoring and a number of measures taken to preserve its liquidity, the Company believes that it has 
sufficient cash to meet its requirements over a period of time consistent with expectations of the end of 
the crisis triggered by the pandemic. This consideration should be framed against a backdrop of 
uncertainty due mainly to the operational and commercial restart of the Company and the timeliness with 
which regulatory, monetary and fiscal measures are undertaken to support the economy, particularly the 
high-speed rail sector. 
 
 It should also be noted that, with Law Decree no. 23 of April 8, 2020, the Government Authorities 
introduced urgent measures to facilitate companies’ access to credit for by expanding the possibilities for 
using State guarantees, such as that by SACE SpA. As of December 31, 2020, the Company did not 
consider it necessary to use this measure to support liquid assets. However, this is an additional 
instrument available in the event that the contraction in sales and, consequently, the repercussions on 
liquidity continue beyond expectations.  
Attention is also called to the fact that the Company has recognized in its accounts a financial receivable 
of €141,245,720, which reflects the present value of the grant obtained through Law Decree no. 34 of 
May 19, 2020 which, as established therein, may be transferred pursuant to art. 1260 paragraph 1 of the 
Italian Civil Code.  
Both of the above instruments can be used by the Company within the limits of the law and the 
requirements of the current loan agreement. 
 
At December 31, 2020 cash and cash equivalents amount to €206,770,653. It should be noted that in 
March the Company drew on the available revolving line of credit made available by the current loan 
agreement.   
 
The following tables show cash flow forecasts for future years (including principal and interest) as regards 
financial assets and liabilities as of December 31, 2020 and 2019:   
 
As of December 31, 2020   
Carrying amounts  
 
Expected cash 
flows  
Expected cash 
flows  
Expected cash 
flows  
(€)   
 
Within 12 
months 
Between 1 and 5 
years 
Over 5 years 
Current and non-current borrowings 
1,101,224,787 
 
16,380,120 
1,153,799,543 
-  
Current and non-current lease liabilities 
51,602,507 
 
9,387,447 
20,778,687 
37,037,404 
Trade payables 
145,298,109 
 
145,298,109 
-  
-  
Total financial liabilities excluding derivative financial 
instruments 
 1,298,125,403 
 
171,065,676 
1,174,578,230 
37,037,404 
 
   
 
 
 
Derivative financial instruments 
2,180,376 
 
1,047,326 
1,121,451 
-  
Total 
  1,300,305,779  
      172,113,002  
  1,175,699,681  
37,037,404  
 
As of December 31, 2019 
Carrying 
amounts   
 
Expected cash 
flows 
Within 12 
months  
Expected cash 
flows  
Between 1 and 5 
years  
Expected cash 
flows 
Over 5 years  
(€) 
  
 
 
Current and non-current borrowings 
900,209,415  
12,392,400 
961,479,490 
- 
Current and non-current lease liabilities 
54,010,980   
 7,662,623  
 26,702,395  
37,124,647 
Trade payables 
188,804,299  
188,804,299 
- 
- 
Other current and non-current liabilities 
1,307,193  
1,332,666 
- 
- 
Total financial liabilities excluding derivative financial 
instruments 
1,144,331,887  
210,191,988 
988,181,885 
37,124,647 
 
   
 
 
 
Derivative financial instruments 
1,480  
304,251 
(300,876) 
- 
Total 
  1,144,333,367   
210,496,239 
987,881,009 
37,124,647

ITALO| ANNUAL REPORT | 2020                                       REPORT ON OPERATIONS | FINANCIAL STATEMENTS | NOTES  
 
 
 
      
85 
Financial and non-financial assets and liabilities by category  
 
Non-current and current financial assets and liabilities are settled or measured at market rates and 
therefore it is deemed that their fair value is substantially in line with their current carrying amounts. 
 
The table below shows the classification of financial and non-financial assets and liabilities by category as 
of December 31, 2020 and 2019. 
 
As of December 31, 2020  
Financial assets 
and liabilities at 
amortized cost 
Financial 
assets and 
liabilities at 
FVTPL 
Hedging 
derivatives 
Non-financial 
assets / 
liabilities 
Total  
(€) 
Assets   
 
 
 
 
  
Non-current asset for Contribution for COVID-19  
- 
- 
- 
122,452,072 
122,452,072 
Trade receivables 
2,415,991 
- 
- 
- 
2,415,991 
Current asset for Contribution for COVID-19  
- 
 
 
18,793,648 
18,793,648 
Other current and non-current assets 
3,027,507 
- 
- 
36,591,968 
39,619,475 
Current financial assets  
- 
20,212,824 
- 
- 
20,212,824 
Cash and cash equivalents 
206,770,653 
- 
- 
- 
206,770,653 
Total assets 
212,214,151 
20,212,824 
- 
177,837,688 
410,264,663 
Liabilities  
 
 
 
 
 
Current and non-current borrowings 
1,101,224,787 
- 
- 
- 1,101,224,787 
Current and non-current lease liabilities 
51,602,507 
- 
- 
- 
51,602,507 
Trade payables 
145,298,109 
- 
- 
- 
145,298,109 
Deferred revenues from transport services  
- 
- 
- 
34,555,290 
34,555,290 
Other current and non-current liabilities 
130,744 
- 
2,180,376 
25,855,657 
28,166,777 
Total liabilities 
1,298,256,147 
- 
2,180,376 
60,410,947 1,360,847,470 
 
As of December 31, 2019  
Financial assets 
and liabilities at 
amortized cost 
Financial assets 
and liabilities at 
FVTPL  
Hedging 
derivatives 
Non-financial 
assets / 
liabilities 
Total  
(€)  
Assets  
 
 
 
 
  
Trade receivables 
8,261,756  
-  
-  
-  
8,261,756  
Other current and non-current assets 
 5,019,800  
-  
-  
26,923,778  
31,943,578  
Current financial assets  
 -  
80,187,753  
-  
-  
80,187,753  
Cash and cash equivalents 
 93,206,101  
 - 
-  
-  
93,206,101  
Total assets 
106,487,657 
80,187,753 
- 
26,923,778  
213,599,189  
Liabilities  
  
  
  
  
  
Current and non-current borrowings 
 900,209,414  
-  
          -  
-  
900,209,414  
Current and non-current lease liabilities 
54,010,980  
-  
-  
-  
54,010,980  
Trade payables 
188,804,299  
-  
-  
-  
188,804,299  
Deferred revenues from transport services  
-  
 -  
-  
44,585,304  
44,585,304  
Other current and non-current liabilities 
1,361,868  
-  
1,480  
23,482,520  
24,845,868  
Total liabilities 
1,144,386,561 
- 
1,480 
68,067,824  
1,212,455,865  
 
Fair value measurement 
 
The following table summarizes the assets and liabilities that are measured at fair value as of December 
31, 2020 and 2019, based on the level that reflects the inputs used to determine the fair value.  
 
(€)  
2020 
2019 
Liquidity 
20,212,824 
40,101,283 
Short-term deposits 
- 
40,086,470 
Derivative liabilities   
(2,180,376) 
1,480 
Total  
18,032,448 
80,189,233

ITALO| ANNUAL REPORT | 2020                                       REPORT ON OPERATIONS | FINANCIAL STATEMENTS | NOTES  
 
 
                            
                                                                                 86 
The fair value measurement of liquidity is made according to methods that are classified as level 1, whilst 
the fair value measurement of derivative liabilities and short-term deposits are classified as level 2.  
There were no transfers between different levels of the fair value hierarchy during the periods in 
question.  
 
6. Segment reporting 
 
IFRS 8 defines an operating segment as a component (i) that engages in business activities from which it 
may earn revenues and incur expenses, (ii) whose operating results are reviewed regularly by the entity's 
chief operating decision maker and (iii) for which separate financial information is available.  
The Company’s operating segments are identified based on the information provided to and analyzed by 
the Board of Directors, which represents the chief operating decision maker, making decisions regarding 
the allocation of resources and assessing performance. For the purposes of IFRS 8, the activities 
performed by the Company are identified as belonging to a single operating segment, given that the 
Company’s business consists of the provision of rail transport services in Italy. 
 
7. Revenues from transport services 
 
The following table shows a breakdown of revenue from transport services:  
 
(€) 
2020 
2019 
Change  
Transportation revenues 
       262,914,026  
       680,565,276  
       (417,651,250) 
Total  
  262,914,026  
 680,565,276  
 (417,651,250) 
 
This item refers to revenue originating from rail transport services and the intermodal ItaloBus integrated 
rail and bus service, after commercial discounts, returns, rebates, adjustments for fraud and customer 
loyalty programs.  
 
The Company recognizes revenues following satisfaction of the related performance obligation “at a point 
in time”, that is when passengers are transported. 
 
The decrease in revenue is attributable to two non-recurring and unpredictable events that took place in 
2020: 
• The accident due to the derailment of a Trenitalia train, near Lodi on February 6, 2020;  
• The COVID-19 pandemic. 
 
8. Other operating revenues 
 
The following table shows a breakdown of other operating revenues: 
 
(€)  
2020 
2019 
Change  
COVID-19 Contribution   
       141,245,720  
                                -  
         141,245,720  
White certificates  
                 689,233  
          29,825,222  
          (29,135,989) 
Royalties and advertising space 
                 449,740  
             1,217,044  
                (767,304) 
Recharges for services to third parties 
             1,285,279  
             1,323,533  
                   (38,254) 
Other income 
             6,899,032  
             2,369,008  
              4,530,024  
Total  
  150,569,004  
    34,734,807  
   115,834,197  
 
The item "COVID-19 Contribution" includes the operating grant provided for by the Government for the 
Company to compensate for the losses suffered as a result of the COVID-19 epidemic.

ITALO| ANNUAL REPORT | 2020                                       REPORT ON OPERATIONS | FINANCIAL STATEMENTS | NOTES  
 
 
 
      
87 
The grant is governed by: (i) Article 214 of Law Decree 34/20205 (Turnaround Decree), enacted by the 
Italian Government and subsequently converted into law, and (ii) an inter-ministerial decree issued by the 
MIT and the MEF6, laying down the criteria and procedures by which the beneficiary companies proceed 
to report the losses suffered.  
 
The grant provided or by the Government, for a total amount of €1,190 million, is intended for rail freight 
and passenger operators - not subject to a public service obligation and licensed to perform transport 
services in Italy, in accordance with European legislation – which, compared to the corresponding period 
of 2019, recorded lower revenues and higher costs directly attributable to the COVID-19 emergency. Such 
grant refers to public services provided without receiving any compensation from the State for rail 
transport until December 31, 2020 (i.e. contribution period). This period has been divided by the Italian 
legislation into two parts: (i) a first contribution period until July 31, 2020; and (ii) a second contribution 
period from August 1, 2020 to December 31, 2020.  
The payment of the grant assigned to each railway undertaking will take place in 15 annual instalments 
until 20347. However, the receivables arising from this grant can be sold pursuant to art. 1260 paragraph 
1 of the Italian Civil Code. 
 
The benefit for the second contribution period, not recognized in these financial statements, will be 
disbursed if resources remain available after the first allocation. 
 
On October 30, 2020, the Company submitted to MIT the grant application, accompanied by the report 
signed by an independent external party, as provided for by Inter-ministerial Decree No. 472 of October 
22, 2020. With the subsequent commitment decree issued on December 31, 2020, the MIT authorized the 
multi-year payment commitment (IPE) for 2020. 
 
As described in note 41.” Events after December 31, 2020” the European Commission has issued a 
declaration of compatibility for the resources8 granted by the Italian Government according to the 
aforementioned Law Decree in reference only to the period March-June 2020 for an amount equal to 
Euro 145.6 million. Consequently, the amount of income recorded in the Financial Statements refers only 
to the quantification of the effects suffered in that time frame. 
 
On April 14, 2021, the Company submitted to the Ministry of Infrastructure and Sustainable Mobility an 
application for admission to the contribution, according to the various parameters contained in the 
declaration of compatibility issued by the European Commission. 
 
Since the COVID-19 Contribution will be paid in fifteen annual instalments and there is no interest on the 
extended payment term, the grant has been recognized in the Company's Financial Statements at its fair 
value, equal to €141,245,720, that is the amount allocated net of the interest component deemed 
significant.9 
 
Finally, refers to change in “Other operating revenues” the five-year energy savings program related to 
the AGV fleet ended on December 31, 2019. As such, at December 31, 2020, the item “White Certificates” 
refers solely to the Energy Efficiency Certificates (EECs) issued by the Gestore dei Servizi Energetici (GSE, 
or Energy Services Operator) on the basis of the energy savings achieved by the EVO fleet with respect to 
a specific threshold. 
 
5 Law Decree no. 34 May 19, 2020 (Turnaround Decree), as amended and supplemented, containing "Urgent measures in the 
matter of health, support for work and the economy, as well as social policies related to the epidemiological emergency of Covid-
19". 
6 Inter-ministerial Decree No. 472 of October 22, 2020. 
7 The resources allocated are divided into €70 million for the year 2020 and €80 million for each of the years from 2021 to 2034. 
8 "[...] article 108(3) of the Treaty on the Functioning of the European Union." 
9 The time value of money is not reflected in the nominal value of the grant, so it was appropriate to deduct the interest 
component.

ITALO| ANNUAL REPORT | 2020                                       REPORT ON OPERATIONS | FINANCIAL STATEMENTS | NOTES  
 
 
                            
                                                                                 88 
 
“Other income” mainly consists of revenues for ancillary services to passenger transport and insurance 
proceeds as a result of claims submitted.       
 
9. Access and electricity costs 
 
The following table shows a breakdown of access and electricity costs: 
 
(€) 
2020 
2019 
Change  
Access costs  
          51,723,591  
       128,468,944  
          (76,745,353) 
Electricity costs 
          20,555,379  
         33,118,814  
          (12,563,435) 
Total  
    72,278,970  
 161,587,758  
    (89,308,788) 
 
This item refers to fees paid to the railway infrastructure operator for access costs and electricity costs.  
 
The decrease posted for the period is due mainly to the reduction in the commercial services provided 
cause by the traffic decline resulting from the implementation of the measures to contain and prevent the 
COVID-19 epidemiologic emergency. In fact, the emergency situation led rail operators to cancel services, 
with the resulting drop in volumes.  
Moreover, to help the railway industry cope with the losses inflicted by the contraction of rail traffic due 
to the COVID-19 pandemic, the Government cut the fee for the use of the infrastructure for passenger 
and freight rail services not subject to public service obligations for the period between March and 
December 2020 and did not apply penalties for the cancellation of available train paths. 
 
10.  Train management costs 
 
The following table shows a breakdown of train management costs: 
 
(€) 
2020 
2019 
Change 
Rolling stock maintenance 
          56,960,362  
         78,649,061  
          (21,688,699) 
Cleaning costs for trains 
             7,937,487  
         11,397,227  
            (3,459,740) 
Other train costs 
             2,005,938  
            1,945,387  
                     60,551  
Total 
    66,903,787  
    91,991,675  
    (25,087,888) 
 
This item primarily regards the costs incurred for the maintenance and management of Italo’s fleet of 
trains and for the internal and external cleaning of trains. The total decrease of this item compared to the 
previous year is due to the lower activity level linked to the COVID-19 pandemic, together with cost-
containment actions taken by management, in agreement with the commercial partners, in response to 
the emergency.  
 
11.  Personnel costs 
 
The following table shows a breakdown of personnel costs: 
 
(€) 
2020 
2019 
Change  
Wages and salaries 
          47,277,982  
         50,614,895  
            (3,336,913) 
Social security and insurance 
contributions 
          10,994,615  
         13,152,274  
            (2,157,659) 
Post-employment benefits (TFR) 
             2,537,806  
            2,407,395  
                  130,411  
Other personnel costs 
             2,959,222  
            3,270,613  
                (311,391) 
Total  
    63,769,625  
    69,445,177  
      (5,675,552) 
 
“Personnel costs” primarily consist of remuneration, salaries, wages, social security and pension 
contributions. In addition, this item includes amounts paid into supplementary pension funds and flat

ITALO| ANNUAL REPORT | 2020                                       REPORT ON OPERATIONS | FINANCIAL STATEMENTS | NOTES  
 
 
 
      
89 
taxes, totaling €676,753 for the year ended December 31, 2020 (€559,936 in the year ended December 
31, 2019).  
 
Attention is called to the information, consultation and joint review report signed by the Company in 
March to obtain access to the furlough scheme (Cassa Integrazione Guadagni Ordinaria – CIGO) made 
available by the Italian Government during the year.  
Later, in June, an agreement was entered into with the trade unions for the application of the Solidarity 
Contract until the end of the year.   
  
The decrease in this item was primarily due to the use of the foregoing social programs in the period 
under review and, to a limited extent, to staff reduction.    
 
The following table shows figures for the Company’s workforce: 
 
  
Average number of employees  
Number of employees  
(number) 
2020 
2019 
2020 
2019 
Officers  
            17  
            17  
            17  
            17  
Managers   
            66  
            65  
            65  
            68  
Employees  
     1,136  
         965  
     1,155  
     1,058  
Others 
         197  
         288  
         132  
         277  
Total   
  1,416  
  1,335  
  1,369  
  1,420  
 
12.  Other operating costs 
 
The following table shows a breakdown of other operating costs, which have risen in line with expansion 
of the business:  
 
(€)  
2020 
2019 
Change  
Consultants’ fees 
          12,848,003  
          12,159,984  
                  688,019  
Ticket sale commissions 
          10,723,601  
          26,442,445  
          (15,718,844) 
Third party services 
          10,357,669  
          18,416,535  
            (8,058,866) 
Other operating costs 
             8,370,839  
          10,175,494  
            (1,804,655) 
Insurance services 
             5,877,088  
             4,492,183  
              1,384,905  
Rental and lease expenses 
             5,578,325  
             3,256,874  
              2,321,451  
Connectivity 
             3,712,358  
             3,870,020  
                (157,662) 
Promotional expenses 
             3,491,138  
             6,549,057  
            (3,057,919) 
Maintenance 
             2,982,776  
             3,040,393  
                   (57,617) 
Travel expenses 
             2,528,375  
             3,913,652  
            (1,385,277) 
Credit card fees 
             2,295,429  
             6,809,846  
            (4,514,417) 
Provisions for doubtful accounts 
                   30,486  
                 124,610  
                   (94,124) 
Net provisions for risks 
          29,913,208  
                 828,612  
           29,084,596  
Total other recurring operating costs 
    98,709,295  
  100,079,705  
      (1,370,410) 
 
“Third party services” mainly include the costs for the on-board caring service, for the cash management 
service for the automatic vending machines, for the Italobus integrated rail and bus service and for office 
cleaning and sanitization, security and surveillance services. 
 
“Other operating costs” mainly includes costs for staff catering, costs connected with ancillary services to 
passenger transport, the cost of staff training, indirect taxes and duties, utility costs and telephone 
expenses as well as costs for safety and protection devices necessary to deal with the health emergency.   
 
“Connectivity” includes the costs for on board connectivity services and those at operating units.

ITALO| ANNUAL REPORT | 2020                                       REPORT ON OPERATIONS | FINANCIAL STATEMENTS | NOTES  
 
 
                            
                                                                                 90 
“Net provisions for risks” includes quantifiable provisions for risks deemed probable. The increase is 
mainly due to the amount set aside in light of ART resolution no. 39 of March 25, 2021 described 
extensively in note 35. “Non-current provisions”, to which reference is made.   
 
As described in the previous notes, the overall decrease in other operating costs is due in part to the 
contraction of operating activities and in part to the cost-containment actions taken by management.    
 
13.  Depreciation, amortization and impairments 
 
The following table shows a breakdown of depreciation, amortization and impairments:  
 
(€) 
2020 
2019 
Change  
Depreciation of rolling stock 
          36,703,461  
         32,287,541  
              4,415,920  
Amortization of intangible assets 
          13,897,721  
         14,406,846  
                (509,125) 
Depreciation of right-of-use assets 
             5,747,354  
            5,783,017  
                   (35,663) 
Depreciation of other property, plant and 
equipment 
             3,773,180  
            3,946,045  
                (172,865) 
Total  
    60,121,716  
    56,423,449  
       3,698,267  
 
The increase in depreciation of the fleet reflects the entry into service of three new EVO trains in 2020.   
 
14.  Gains (losses) on disposal of non-current assets 
 
The following table shows a breakdown of this item: 
 
(€) 
2020 
2019 
Change  
Losses on disposal of non-current assets  
                  (43,000) 
              (140,696) 
                     97,696  
Gains on disposal of non-current assets 
                      9,518  
                   24,029  
                   (14,511) 
Total  
           (33,482) 
        (116,667) 
             83,185  
 
During the year the disposal of certain tangible assets generated gains for €9,518. Losses for the period 
were due to the cancellation of certain investments in the planning phase. 
 
15.  Financial income (expenses) 
 
The following table shows a breakdown of net financial income (expenses): 
 
(€)  
2020 
2019 
Change  
Interest on bank deposits  
                   79,505  
                 311,512  
                (232,007) 
Change in fair value of current financial assets  
                                -  
                 288,349  
                (288,349) 
Income from current financial assets  
                   33,879  
                 172,901  
                (139,022) 
Other interest income 
                   32,013  
                   47,693  
                   (15,680) 
Other financial income  
 29,436  
-  
                     29,436  
Total financial income 
          174,833  
          820,455  
         (645,622) 
  
 
 
Interest expense on borrowings 
          13,282,969  
          19,452,492  
            (6,169,523) 
Financial expenses on early repayment of borrowings 
                                -  
          10,674,219  
          (10,674,219) 
Financial expenses on derivative instruments 
                 423,427  
             1,924,833  
            (1,501,406) 
Financial expenses on leases  
             1,846,462  
             1,778,290  
                     68,172  
Fees  
                 506,970  
             1,389,638  
                (882,668) 
Change to fair value of derivative instruments 
                                -  
             1,061,883  
            (1,061,883) 
Change in fair value of current financial assets 
  -  
                 228,543  
                (228,543) 
Interest on post-employment benefits (TFR) 
                 123,512  
                 145,253  
                   (21,741) 
Other financial expenses  
                   69,489  
                 137,133  
                   (67,644) 
Net foreign exchange losses 
                          195  
                          448  
                          (253) 
Total financial expenses  
    16,253,024  
    36,792,732  
    (20,539,708)

ITALO| ANNUAL REPORT | 2020                                       REPORT ON OPERATIONS | FINANCIAL STATEMENTS | NOTES  
 
 
 
      
91 
Financial income 
 
“Financial income” primarily regards accrued financial income on bank current accounts and current 
financial assets.  
The decrease compared with the previous year, amounting to €645,622, is due in essence to lower 
financial income generated from financial assets and lower interest rates applied to cash balances in bank 
accounts.    
 
Financial expenses 
 
“Financial expenses” primarily refer to interest and fees paid on the Company’s financial instruments. In 
the year under review this item fell by €20,539,708, compared to the previous year. 
 
Interest on loans obtained, together with financial expenses incurred in connection with the early 
repayment of loans, decreased by €16,843,742, compared to the previous year, due to the different 
funding structures adopted in the two years under review, details of which are provided in note 30. 
“Current and non-current borrowings” in this document. 
 
“Financial expenses on derivative instruments” and “Changes to the fair value of derivative instruments” 
refer to recognition of the derivative instruments entered into by the Company in order to hedge interest 
rate risk on existing borrowings, using hedge accounting. 
Specifically, these items include i) the cost of negative differentials on outstanding derivatives ii) charges 
and/or income recognized in profit or loss and representing the ineffective portion of hedges.  
 
16.  Income tax 
 
The following table shows a breakdown of income tax:  
 
(€) 
2020 
2019 
Change  
Current income tax expense 
             9,790,445  
          24,949,691  
          (15,159,246) 
Deferred tax income 
           (2,710,253) 
           (2,710,253) 
                                  -  
Deferred tax expense 
           (3,359,307) 
          26,023,680  
          (29,382,987) 
Total  
      3,720,885  
    48,263,118  
    (44,542,233) 
 
This item includes current income tax and the impact on profit or loss of deferred tax assets and liabilities.  
Income tax expense for the year under review decreased by €44,542,233 compared to the previous year, 
owing to the reduction of taxable income, due to the diminished results and the lower reversal of 
deferred tax assets recognized in the financial statements in 2020.    
 
The following table shows the reconciliation of the tax charge at the statutory rate and the effective 
charge for the years ended December 31, 2020 and 2019: 
 
(€) 
2020 
2019 
Change  
Profit (loss) before tax 
          35,587,964  
       199,683,375  
       (164,095,411) 
Theoretical tax charge (24%) 
             8,541,111  
          47,924,010  
          (39,382,899) 
Other differences  
           (7,763,553) 
        (11,285,781) 
              3,522,228  
Effective charge for IRES 
          777,559  
    36,638,229  
    (35,860,670) 
Effective charge for IRAP  
      2,943,326  
    11,624,889  
      (8,681,563) 
  
  
  
 
Effective tax charge   
      3,720,885  
    48,263,118  
    (44,542,233) 
 
Further details of movements in deferred taxes are provided below in notes 21. “Deferred tax assets” and 
34. “Deferred tax liabilities”.

ITALO| ANNUAL REPORT | 2020                                       REPORT ON OPERATIONS | FINANCIAL STATEMENTS | NOTES  
 
 
                            
                                                                                 92 
17.  Goodwill 
 
The following table shows details of this item: 
 
(€) 
2020 
2019 
Change  
Goodwill  
            1,683,797,961  
       1,683,797,961  
                                       -  
Total 
     1,683,797,961  
 1,683,797,961  
                            -  
 
Goodwill, which resulted from the reverse merger of 2019, reflects the unallocated excess purchase price 
recognized in intangible assets with indefinite useful lives. 
 
Goodwill has been allocated to a single identified Cash Generating Unit (CGU), represented by the 
Company, Italo. Management has not identified any other smaller CGUs that generate largely 
independent cash flows to which goodwill could be allocated.  
 
With the assistance of an independent expert, the Group tested the recoverability of net invested capital 
as of December 31, 2020 (including goodwill), in accordance with IAS 36. Based on ESMA’s public 
statement no. 32-63-1041 of October 28, 2020, “European common enforcement priorities for 2020 
annual financial reports”, and the “Guidelines on the post-COVID-19-pandemic effects on impairment 
tests” published by Organismo Italiano di Valutazione (OIV) in July 2020, the COVID-19 pandemic has been 
considered as an indicator of impairment observable at year-end 2020. To determine the recoverable 
value – the CGU’s value in use – use was made of the Company’s expected future cash flows, which were 
estimated on the basis of the 2021 budget and the operational plan, as updated to reflect potential risks 
arising from the market uncertainty in the short and medium term as a result of the COVID-19 pandemic. 
The expected cash flows were discounted to present value at a rate (“UDCF Model”) that reflects, among 
others, the Company’s return on equity and cost of debt (WACC). For periods not covered by the business 
plan, cash flows were estimated by extrapolating the figures forecast for the most representative year, 
considering a perpetual growth rate (g) and the gradual return to normalcy of the healthcare situation in 
the long run.  
Based on the impairment test carried out as above and the sensitivity analyses performed on key factors, 
the total value of net invested capital as of December 31, 2020 (including goodwill) was judged to be 
adequately justified in terms of expected income and the related cash flows. In particular, a sensitivity 
analysis was conducted on the recoverable value resulting from a stress test of the possible medium/long-
term impacts determined also by the current health emergency. The result of the sensitivity analysis  
confirmed the recoverability of the full value of the Company’s assets.  
 
Based on the above, there was, therefore, nothing to suggest that the Company should recognize an 
impairment loss for its net invested capital at December 31, 2020 (inclusive of goodwill). 
 
18.  Intangible assets 
 
The following table shows a breakdown of intangible assets and the related movements: 
 
(€) 
Railway 
license 
Software 
Trademark 
Customer 
relationships 
Intangible assets 
in progress 
Total 
As of December 31, 2019 
19,425 
5,857,372 
22,926,667 
82,053,667 
4,591,261 
115,448,392 
of which:  
- historical cost 
183,845 
44,629,505 
27,512,000 
93,142,000 
4,591,261 
170,058,611 
- accumulated amortization  (164,420) 
(38,772,133) 
(4,585,333) 
(11,088,333) 
- 
(54,610,219) 
Reclassifications  
- 
2,491,125 
- 
- 
(2,469,624) 
21,501 
Additions  
- 
2,858,730 
- 
- 
4,427,300 
7,286,030 
Reductions  
- 
(43,000) 
- 
- 
- 
(43,000) 
Amortization  
(7,413) 
(4,486,112) 
(2,751,200) 
(6,653,000) 
- 
(13,897,725) 
As of December 31, 2020  
12,012 
6,678,115 
20,175,467 
75,400,667 
6,548,937 
108,815,198

ITALO| ANNUAL REPORT | 2020                                       REPORT ON OPERATIONS | FINANCIAL STATEMENTS | NOTES  
 
 
 
      
93 
of which:  
 
 
 
 
 
 
- historical cost  
183,845 
49,936,360 
27,512,000 
93,142,000 
6,548,937 
177,323,142 
- accumulated amortization  (171,833) 
(43,258,245) 
(7,336,533) 
(17,741,333) 
- 
(68,507,944) 
 
As of December 31, 2020, intangible assets amount to €108,815,198, a decrease of €6,633,194 compared 
with December 31, 2019.  
  
This decrease was due to the combined effect of investment and reclassifications for €7,307,531, 
amortization for €13,897,725 and divestments for €43,000. 
  
The additions to “Software” and “Intangible assets in progress” primarily regard investment in the 
upgrade of the Company’s IT systems, to implement the new ERP system and to make other 
improvements to expand the data management capabilities of the production systems necessary to 
ensure the Company’s full operational efficiency as a result of the increased commercial offering and the 
growth of the business.  
 
19.  Property, plant and equipment 
 
The following table shows a breakdown and the related movements: 
 
(€) 
AGV fleet 
EVO fleet 
Onboard 
telecomm-
unications 
AGV fleet 
Onboard 
telecomm-
unications  
EVO fleet 
Assets 
under 
construction 
Investments 
at plants 
and railway 
stations 
Land and 
buildings 
Other PPE 
Total 
As of December 31, 2019  
480,809,554 
397,402,661 
705,737 
1,060,857 
51,722,652 
5,734,635 
36,913 
8,975,782 
946,448,789 
of which:  
 
 
 
 
 
 
 
 
 
- historical cost 
638,401,339 
415,833,549 
12,310,267 
1,489,507 
51,722,652 
12,879,920 
132,465 
22,312,551 1,155,082,250 
- accumulated depreciation  
(157,591,785) 
(18,430,888) 
(11,604,530) 
(428,650) 
- 
(7,145,286) 
(95,553) (13,336,770) 
(208,633,462) 
Reclassifications  
470,400 
30,104,169 
1,824 
198,206 
(32,301,651) 
568,007 
- 
937,545 
(21,500) 
Additions  
- 
36,599,950 
- 
12,000 
27,393,762 
17,854 
- 
129,302 
64,152,869 
Reductions  
- 
- 
- 
- 
 
- 
- 
(9,135) 
(9,135) 
Depreciation  
(21,360,373) 
(15,343,087) 
(341,205) 
(325,727) 
- 
(540,389) 
(8,314) 
(2,557,685) 
(40,476,781) 
As of December 31, 2020  
459,919,581 
448,763,693 
366,356 
945,335 
46,814,763 
5,780,107 
28,599 
7,475,808 
970,094,241 
of which:  
 
 
 
 
 
 
 
 
 
- historical cost 
638,871,739 
482,537,668 
12,312,091 
1,699,713 
46,814,763 
13,465,782 
132,465 
23,339,107 1,219,173,327 
- accumulated depreciation  
(178,952,158) 
(33,773,975) 
(11,945,735) 
(754,378) 
- 
(7,685,675) 
(103,866) (15,863,299) 
(249,079,086) 
 
As of December 31, 2020 property, plant and equipment amounts to €970,094,241, an increase of 
€23,645,452 compared with December 31, 2019, due to the combined effect of investment and 
reclassifications, amounting to €64,131,369, depreciation of €40,476,781, and net disposals, amounting to 
€9,135. 
 
Investment and reclassifications primarily regard the EVO fleet, with a residual amount relating to 
improvements to AGV trains, investment in railway equipment and stations and other property, plant 
and equipment.  
 
“Assets under construction” include €45,222,000 attributable to progress under the EVO long-term 
contract. 
 
Disposals refer to other equipment with a carrying amount of €9,135, which was sold for €18,500, at a 
gain of €9,365.   
  
20.  Right-of-use assets 
 
This item breaks down as follows:

ITALO| ANNUAL REPORT | 2020                                       REPORT ON OPERATIONS | FINANCIAL STATEMENTS | NOTES  
 
 
                            
                                                                                 94 
 
(€)  
Train 
maintenanc
e centers 
Marshalling 
yards 
Station spaces 
and self-service 
ticket machines 
Offices  
Self- 
service 
ticket 
machines 
IT systems 
Vehicles  
Total  
As of December 31, 2019   
11,727,091 
782,975 
32,470,574 
1,384,979 
5,339,656 
656,278 
171,505 
52,533,059 
of which:   
  
  
  
  
  
  
  
  
- historical cost 
12,220,528 
844,549 
35,613,855 
2,397,937 
6,032,434 
936,884 
265,607 
58,311,794 
- accumulated depreciation   
(493,437) 
(61,574) 
(3,143,281) 
(1,012,958) 
(692,778) 
(280,605) 
(94,102) 
(5,778,735) 
Additions  
-  
-  
532,358 
-  
417,193 
27,302 
158,948 
1,135,801 
Reductions  
-  
-  
(1,012,683) 
(109,253) 
-  
-  
(51,997) 
(1,173,933) 
Depreciation   
(486,274) 
(60,243) 
(3,111,542) 
(1,008,883) 
(732,947) 
(227,521) 
(68,321) 
(5,695,733) 
As of December 31, 2020  
11,240,816 
722,732 
28,878,707 
266,842 
5,023,902 
456,059 
210,134 
46,799,193 
of which:  
 
 
 
 
 
 
 
  
- historical cost 
12,220,528 
844,549 
35,133,530 
2,288,684 
6,449,627 
964,186 
372,558 
58,273,661  
- accumulated depreciation  
(979,712) 
(121,817) 
(6,254,822) 
(2,021,842) 
(1,425,726) 
(508,126) 
(162,423) (11,474,468)  
 
As of December 31, 2020, right-of-use assets total €46,799,193, a decrease of €5,733,866 compared with 
December 31, 2019. 
 
The decrease reflects the combined effect of: 
• new lease contracts entered into (€1,015,979); 
• modifications of existing leases (€119,821); 
after deducting: 
• reductions in right-of-use assets (€1,173,933); 
• depreciation (€5,747,354), shown after deducting decreases in accumulated depreciation (€51,621). 
 
21.  Deferred tax assets  
 
The following table shows a breakdown of movements in deferred tax assets: 
 
(€)  
2020 
2019 
Balance at January 1, 2020   
19,533,435 
45,761,418 
Differences from income tax return and other adjustments 
22,578 
310,804 
Reversals to profit or loss  
             3,336,730  
(26,334,485) 
Reversals to comprehensive income statement   
                 492,742  
(204,302) 
Balance at December 31, 2020   
23,385,485 
19,533,435 
 
“Deferred tax assets” refer to temporary differences primarily relating to: 
• Partial deduction of excess financial expenses in previous years;   
• derivative liabilities; 
• other timing differences (mainly due to provisions not deducted during the reporting periods, 
mismatches between book and tax amortization and depreciation, and other timing differences, 
including the medium/long-term incentive programs and bonuses).  
 
The following table shows details of deferred tax assets: 
 
(€)   
Financial 
expenses 
Derivative 
liabilities 
Other timing 
differences 
Total 
Balance at December 31, 2019  
13,382,893 
355  
6,150,187  
19,533,435  
Differences from income tax return and other adjustments 
123,526 
- 
(100,948) 
22,578  
Reversals to profit or loss  
(7,039,224) 
- 
10,375,954  
3,336,730  
Reversals to comprehensive income statement   
- 
522,935  
(30,193) 
492,742  
Balance at December 31, 2020   
6,467,195 
523,290  
16,395,000  
23,385,485

ITALO| ANNUAL REPORT | 2020                                       REPORT ON OPERATIONS | FINANCIAL STATEMENTS | NOTES  
 
 
 
      
95 
22.  Non-current and current asset for Contribution for COVID-19 
 
The item “Non-current and current asset for Contribution for COVID-19” breaks down as follows: 
 
(€) 
2020 
2019 
Change 
Nun current asset for Contribution for COVID-19 
122,452,072  
- 
122,452,072  
Current asset for Contribution for COVID-19 
18,793,648  
- 
18,793,648  
Total 
  141,245,720  
- 
141,245,720  
 
This item reflects the receivable arising from the grant payable to the Company for the lower revenues 
and higher costs directly attributable to the COVID-19 emergency until July 30, 2020. This grant meets the 
requirements for recognition under IAS 20.  
 
The receivable, which consist of a current and a non-current portion, was still outstanding at the reporting 
date. In addition, since it is non-interest accruing and payable in fifteen equal annual instalments, the 
receivable was recognized at its fair value for a total of €141,245,720. For more details, reference is made 
to note 8. “Other operating revenues”.  
 
At April 9, 2021 the Ministry of sustainable infrastructures and mobility (previously named The Ministry of 
infrastructures and transport) authorized the payment of the first two installments of the contribution for 
a total amount of Euro 19,4 million. 
 
23. Inventories 
 
Inventories consist of Energy Efficiency Certificates (EECs or white certificates) representing the TOE (tons 
of oil equivalent) accruing during the period, not yet issued by the Italian Energy Services Operator (GSE) 
and thus not yet sold. 
 
(€) 
2020 
2019 
Change  
White certificates (EECs)  
759,892 
10,145,787 
(9,385,895) 
Total  
759,892 
10,145,787 
(9,385,895) 
 
As of December 31, 2020, this item related to the energy efficiency projects of the EVO trains and includes 
mainly EECs accrued in January-December 2020 and, for a residual amount, in May-December 2019. 
Certificates are measured at the weighted average price for the energy year (as defined by the Italian 
Energy Services Operator) at the end of the reporting period.  
 
The decrease compared with the previous year is due to the completion of the AGV fleet project at the 
end of the previous year.  
  
24.  Trade receivables 
 
The following table shows a breakdown of trade receivables: 
 
(€) 
2020 
2019 
Change  
Receivables due from customers  
                     2,787,230  
                 8,602,509  
                 (5,815,279) 
Provisions for doubtful accounts  
                       (371,239) 
                   (340,753) 
                        (30,486) 
Total  
             2,415,991  
         8,261,756  
          (5,845,765) 
 
Trade receivables primarily regard the indirect sales channel, consisting of travel agencies, and have 
decreased as a result of lower ticket sales.

ITALO| ANNUAL REPORT | 2020                                       REPORT ON OPERATIONS | FINANCIAL STATEMENTS | NOTES  
 
 
                            
                                                                                 96 
Given the type of business and the structure of sales operations, as well as the payment methods used, 
the Company’s overall exposure to credit risk is limited. The following table shows changes in provisions 
for doubtful accounts: 
 
(€) 
Provisions for doubtful 
accounts 
As of December 31, 2019 
                340,753  
Additions  
                            47,014  
Utilizations/Releases  
                          (16,528) 
As of December 31, 2020 
                371,239  
 
25.  Current tax receivables and payables   
 
This item breaks down as follows: 
 
(€) 
2020 
2019 
Change 
Other tax credits  
                           18,912  
                -  
18,912  
Total tax receivables  
                  18,912  
  -  
18,912  
IRES payable  
5,689,862 
10,847,572  
(5,157,710) 
IRAP payable  
1,870,383 
3,385,765  
(1,515,382) 
Total current tax payables  
7,560,245 
14,233,337  
(6,673,092) 
 
At December 31, 2020 total tax receivables amounted to €18,912. This item reflects the tax credit under 
Law Decree of 19 May 2020 no.34, article 125, for the sanitization and purchase of personal protection 
devices.  
  
At December 31, 2020 total tax payables amount to €7,560,245 net of tax withholdings paid and offsets of 
tax withholdings by third parties, reflecting a decrease as a result of the diminished profitability.   
 
26.  Other current assets 
 
This item breaks down as follows: 
 
(€) 
2020 
2019 
Change  
VAT receivables 
                  19,174,302  
              11,054,788  
                   8,119,514  
Advances to vendors 
                  11,199,471  
              11,711,448  
                     (511,977) 
Other assets 
                     4,346,309  
                 3,232,130  
                   1,114,179  
Social security contribution receivables 
                     1,671,460  
                     727,536  
                       943,924  
Deposits and guarantee deposits 
                     2,810,320  
                 2,756,370  
                          53,950  
Receivables resulting from credit cards 
                         217,187  
                 2,263,430  
                 (2,046,243) 
Amounts due from employees 
                         200,426  
                     197,876  
                            2,550  
Total 
          39,619,475  
       31,943,578  
           7,675,897  
 
The increase in “VAT receivables” reflects the activities for the period.   
 
“Other assets” primarily consist of prepayments relating to commission on sureties, insurance policies and 
other payments made in advance for future periods.    
 
“Social security contribution receivables” rose following the advance payment, made by the Company, of 
the salary supplements provided for by the Solidarity Contract signed with the trade unions, as described 
in note 11. “Personnel costs”.   
  
“Receivables resulting from credit cards” fell due to lower sales volumes.

ITALO| ANNUAL REPORT | 2020                                       REPORT ON OPERATIONS | FINANCIAL STATEMENTS | NOTES  
 
 
 
      
97 
27.  Current financial assets 
 
This item reflects the liquidity invested with a primary asset management company. The following table 
shows a breakdown. 
 
(€) 
2020 
2019 
Change  
Short-term investment of liquidity  
20,000,000 
80,000,000 
(60,000,000) 
Fair value gains/(losses) through profit or loss 
     212,824  
187,753 
25,071 
Total  
          20,212,824 
  80,187,753  
(59,974,929)  
 
In addition to changes to fair value through profit or loss, this item reflects the liquidity amount invested 
with a primary asset management company.  
In view of the business model used and the contractual nature of the cash flows, the financial asset is 
measured at fair value through profit or loss. The investment of liquidity is considered short-term as the 
related instruments are held for trading and or are expected to be sold within twelve months of the 
reporting date. 
 
At December 31, 2020 this item was €59,974,929 lower than the comparable year-earlier amount due to 
the divestments for the year.    
 
28. Cash and cash equivalents 
 
The following table shows a breakdown of cash and cash equivalents: 
 
(€) 
2020 
2019 
Change  
Bank and post office deposits  
                205,710,055  
              89,301,165  
              116,408,890  
Cash at bank and in hand  
                     1,060,598  
                 3,904,936  
                 (2,844,338) 
Total  
        206,770,653  
       93,206,101  
       113,564,552  
 
This item includes current account balances and cash held at the various operating units around the 
country.  
The increase on December 31, 2019 is due to the utilization of the revolving line of credit in March for the 
full amount available (€200 million).  
 
More detailed information on movements in this item is provided in the statement of cash flows. 
 
29.  Equity    
 
Equity breaks down as follows: 
 
(€) 
2020 
2019 
Change  
Share capital   
                  60,017,725  
        60,017,725  
                                       -  
Share premium reserve   
                              2,672  
                             2,672  
                                       -  
Other reserves 
            1,551,511,656  
              1,553,167,617  
                 (1,655,961) 
Retained earnings   
                182,385,631  
                  150,422,939  
                31,962,692  
Total 
     1,793,917,684  
            1,763,610,953  
         30,306,731  
 
Share capital 
 
As of December 31, 2020, the Company’s share capital amounts to €60,017,725 and consists of   
64,013,275 no par ordinary shares divided in three classes, each of which attributes to the relevant 
shareholders specific rights under the Articles of Association.

ITALO| ANNUAL REPORT | 2020                                       REPORT ON OPERATIONS | FINANCIAL STATEMENTS | NOTES  
 
 
                            
                                                                                 98 
The shares that make up the share capital do not entail any rights, constraints or obligations to distribute 
preference dividends or to make other preferential distributions. The shares have been pledged to 
lenders pursuant to the loan agreement in place. For additional information reference should be made to 
note 30. “Current and non-current borrowings”. 
 
Share premium reserve  
 
The share premium reserve reflects the share premium paid by shareholders at the time of the share 
capital increases subscribed in previous years.  
 
Other reserves and retained earnings   
 
(i) Other reserves 
 
The breakdown of “Other reserves” is as follows: 
 
(€) 
2020 
2019 
Change  
Legal reserve  
                  12,004,000  
              12,004,000  
                                       -  
Cash flow hedge reserve 
                   (1,657,086) 
                        (1,125) 
                 (1,655,961) 
Reverse merger reserve 
            1,541,164,742  
       1,541,164,742  
                                       -  
Total   
     1,551,511,656  
 1,553,167,617  
          (1,655,961) 
 
The legal reserve has reached the threshold required by law. 
 
Movements in the cash flow hedge reserve are as follows:  
 
(€) 
Cash flow hedge reserve 
As of December 31, 2019   
                   (1,125) 
Gain/(Loss) on cash flow hedges  
                   (2,178,896) 
Gain/(Loss) on cash flow hedges - tax effect  
                         522,935  
Other comprehensive income/(loss) 
           (1,655,961) 
As of December 31, 2020   
           (1,657,086) 
 
(ii) Retained earnings/ (Accumulated losses)   
 
Movements in “Retained earnings/ (Accumulated losses)” are as follows: 
 
• an increase of €31,867,079 due to profit for the period; 
• an increase of €95,613 in the actuarial reserve for employee benefits. 
 
Movements in the actuarial reserve for employee benefits are as follows:  
 
(€) 
Actuarial reserve 
As of December 31, 2019 
               (997,318) 
Actuarial gains/(losses) on employee benefits  
                         125,806  
Actuarial gains/(losses) on employee benefits - tax effect  
                          (30,193) 
Other comprehensive income/(loss)  
                  95,613  
As of December 31, 2020 
               (901,705) 
 
Lastly, the table below shows the equity components at December 31, 2019, with indications for each of 
origin, possible use and distributability.

ITALO| ANNUAL REPORT | 2020                                       REPORT ON OPERATIONS | FINANCIAL STATEMENTS | NOTES  
 
 
 
      
99 
(€) 
 
As of December 
31, 2020  
Possible uses   
(A, B, C) 
Amount available as 
of December 31, 
2020  
Share capital   
  
60,017,725  
 
                                    -  
Share premium reserve   
  
 2,672  
A, B, C 
2,672   
Legal reserve 10  
  
12,004,000  
A, B 
455   
Reverse merger reserve 
  
1,541,164,742  
A, B, C 
1,541,164,742   
Cash flow hedge reserve 
  
(1,657,086) 
 
                                    -  
Actuarial reserve 11 
  
    (901,705) 
 
(901,705)  
Retained earnings  
  
183,287,336  
A, B, C 
183,287,336   
Total  
  
1,793,917,684  
 
1,723,553,500  
 
Legend:  
A: for share capital increase  
B: to cover losses  
C: for distribution to shareholders 
 
30.  Current and non-current borrowings 
 
The following table provides a breakdown of current and non-current borrowings. 
 
(€) 
2020 
2019 
Change  
Non-current portion of bank borrowings  
            1,097,349,355  
           897,791,129  
              199,558,226  
Current portion of bank borrowings 
                     3,875,432  
                 2,418,285  
                   1,457,147  
Total current and non-current borrowings 
     1,101,224,787  
     900,209,414  
       201,015,373  
 
The following table shows movements in current and non-current borrowings in 2020. 
 
(€) 
Non-current 
borrowings 
Current borrowings 
Total 
 
As of January 1, 2020  
        897,791,129  
         2,418,285  
       900,209,414  
New issues /increase in borrowings  
                200,000,000  
                                    -  
              200,000,000  
Repayments/reductions  
                                         -  
                                    -  
                                       -  
Non-monetary effects  
                       (441,774) 
                 1,136,836  
                       695,062  
Interest 
                                         -  
                     320,311  
                       320,311  
As of December 31, 2020 
     1,097,349,355  
         3,875,432  
   1,101,224,787  
 
The breakdown of the current and non-current portions of borrowings as of December 31, 2020 and 2019 
is as follows. 
 
As of December 31, 2020 
Within 12 months Between 1 and 5 years 
After 5 years 
Total 
(€)  
Bank borrowings  
                     3,875,432  
       1,097,349,355  
-  
        1,101,224,787  
Total 
             3,875,432  
 1,097,349,355  
-  
  1,101,224,787  
 
As of December 31, 2019  
Within 12 months 
Between 1 and 5 
years 
After 5 years 
Total 
(€)  
Bank borrowings  
2,418,285 
897,791,130 
- 
900,209,415 
Total 
          2,418,285  
         897,791,130  
                                  -  
900,209,415 
 
The following table shows the breakdown of bank borrowings by bank as of December 31, 2020 and 2019. 
 
10 The amount of the legal reserve in excess of the legal limit set by article 2430 of the Italian Civil Code is available for share 
capital increases.    
11 The actuarial reserve is to be covered out of retained earnings and must not be considered for dividend distribution purposes.

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                                                                                 100 
 
(€) 
  
  
As of December 31, 
As of December 31, 
Bank 
Nominal 
value 
Interest rate 
of which current 
2020 
of which 
current 
2019 
Banca IMI, Unicredit, BPM, Mediobanca, Natixis, 
Santander, Caixa, NatWest, MUFG, ING, BNL, BPER, 
Société Générale 
900,000,000 
Euribor 3m + 
spread 
 
 2,841,152  
 
900,632,282 
2,418,285 
900,209,215 
Banca IMI, Unicredit, BPM, Mediobanca, Natixis, 
Santander, Caixa, NatWest, MUFG, ING, BNL, B PER, 
Société Générale 
200,000,000 
+Euribor 6m + 
spread 
1,034,280 
200,592,505 
- 
- 
Total 
 
 
3,875,432 
1,101,224,787 
2,418,285 
900,209,415 
of which at a fixed interest rate 
  
  
  
 - 
  
 - 
of which at a variable interest rate 
  
  
  
1,101,224,787 
2,418,285 
900,209,415 
 
On November 6, 2019, the Company obtained a new syndicated green loan worth a total of €1,100 
million, a sum that was used in part to repay early the full amount of the previous loan outstanding. The 
green transaction was hailed as the largest ever in the transport sector.    
In the meantime, the Company activated a process to support the growing commitment and attention 
that it intends to devote to ESG issues, with the objective of increasingly integrate sustainability in its 
strategy.   
In particular, in January 2020, an analysis was conducted on the stakeholders that might affect, or be 
affected by, the Company, its activities and the relevant results, in tandem with a materiality analysis 
designed to identify the factors that might have a significant economic, environmental and social impact 
for the Company or its stakeholders.  
The assessment, which included also benchmark analyses with comparable companies in terms of 
business size and nature, identified a number of sustainability indicators, from which the Company 
selected the three considered most fitting with its ESG strategy.  
Thus, by exercising the Sustainability Linked Option set out in the agreement, the Company presented to 
the lenders the three KPIs selected and related targets, obtaining their approval in August, which makes it 
possible to qualify the loan as both sustainable and green.  
  
 
The Loan Agreement (hereinafter “the Agreement”) consists of two credit facilities, to be drawn down by 
way of cash disbursements, in particular:   
• A “Facility A”) for a total of €900,000,000, with a 5-year tenor, which was used in 2019 to repay the 
existing loan and to pay for borrowing fees, costs and expenses; 
• A Revolving Facility for a total of €200,000,000, fully drawn down in 2020, to meet working capital and 
general cash requirements.  
 
Facility A is a bullet loan for repayment at maturity (November 2024), whilst the Revolving Facility will 
expire on the last day of the relevant interest period, save for any extension. This facility has been 
recognized as part of non-current borrowings, based on assessments made on the reporting date.   
 
The interest rate applied is given by a spread plus Euribor, it being understood that the total of both can 
never be lower than zero.  
 
The Agreement calls for several general obligations, as well as positive and negative covenants, in line 
with market practice for loans of a similar nature and amount. Moreover, by way of example, the 
Agreement calls for, among other things:   
• early repayment of the loan upon occurrence of certain events, including among others: (i) change of 
control; (ii) acts of disposition of all or substantially all of the Company’s assets; (iii) use of proceeds 
from any listing (within the limits indicated in the Agreement); (iv) use of proceeds from acts of 
disposition of company assets, the issue of financial instruments, listing and insurance proceeds, 
within the limits indicated in the agreement; 
• a prohibition on the payment of management, consulting or other fees to a shareholder of the 
Company;

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101 
• specific limitations on dividend distributions. 
 
The Agreement also contains cross-default provisions in the event that: 
• any borrowing, within the meaning of the Agreement, is not repaid at maturity or by the end of the 
original grace period, if any; 
• repayment of any borrowing is accelerated following a default;  
• the total of the borrowings, as referred to in the previous two points, should exceed €10,000,000. 
 
In addition, there are other events of default, such as:   
• missed or late payment of any sum due (except for cases where such missed or late payment is due to 
technical errors and/or to errors related to a failure of payment systems and the relevant payment is 
made within the following 5 business days;  
• failure to comply with the additional obligations provided for in the Agreement that is not remedied 
within 15 days from the time the Company is made aware of the issue; 
• untrue and incorrect representations and warranties in relation to substantial aspects that are not 
remedied within 15 days from the time the Company is made aware of the issue;  
• the start of pre-bankruptcy or bankruptcy proceedings and other insolvency events; and/or  
• occurrence of a Material Adverse Effect that is not remedied within 15 days from the time the 
Company is made aware of it. 
 
In addition to the Loan Agreement, the Company signed a Deed of Pledge over 100% of the Company’s 
shares to secure the Loan. 
 
Following the extraordinary and exceptional events occurring during the year, the Company submitted a 
waiver request to its lenders in June, obtaining the consent to waive compliance with the ratios set in the 
financial covenants throughout 2020, as well as to changes to such ratios for 2021. 
 
The table below compares the thresholds for the financial covenants indicated in the loan agreement with 
the ratios applicable to the Company at December 31, 2020 and December 31, 2019.  
 
  
Covenants12 
2020 
2019 
  
  
Contractual 
threshold   
Ratio at the 
reporting date 
Contractual 
threshold   
Ratio at the 
reporting date 
Senior Facilities Agreement   
  
  
  
        1  Consolidated Net Leverage Ratio 
(Net Debt/EBITDA Adj.)  
n.a.  
8.3x 
< 5.5x  
2.5x  
        2  Fixed Charge Coverage Ratio 
(EBITDA Adj./interest expenses)   
n.a.  
7.8x 
> 3.5x  
14.4x  
 
31.  Net debt 
 
The table below shows the composition of the Company’s net debt and reported net debt as of December 
31, 2020 and December 31, 2019. 
 
(€) 
 
2020 
2019 
Change  
A. Cash   
                  1,060,598  
              3,904,936             (2,844,338) 
B. Other cash equivalents  
            205,710,055  
            89,301,165  
       116,408,890  
C. Securities held for trading  
                                     -                                    -                                  -  
D. Liquidity (A + B + C)  
      206,770,653  
     93,206,101  
  113,564,552  
E. Current financial assets   
        20,212,824  
     80,187,753  
   (59,974,929) 
F. Current bank borrowings  
                                     -                                    -                                  -  
 
12 The ratios under the financial covenants are set by contract.

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                                                                                 102 
G. Current portion of non-current borrowings  
                  3,875,432  
              2,418,285  
             1,457,147  
H. Other current financial liabilities  
                  7,694,586  
              5,826,314  
             1,868,272  
I. Current debt (F + G + H)  
        11,570,018  
        8,244,599  
      3,325,419  
J. Net current debt (I - E - D)   
    (215,413,459) 
  (165,149,255) 
   (50,264,204) 
K. Non-current bank borrowings  
        1,097,349,355  
         897,791,129  
       199,558,226  
L. Notes issued  
                                     -                                    -                                  -  
M. Other non-current liabilities  
               43,907,921  
            48,184,666             (4,276,745) 
N. Non-current debt (K + L + M)  
  1,141,257,276  
   945,975,795  
  195,281,481  
O. Net debt (J + N)   
      925,843,817  
   780,826,540  
  145,017,277  
 
32.  Current and non-current lease liabilities 
 
The table below provides details of current and non-current lease liabilities.    
 
(€) 
2020 
2019 
Change  
Non-current portion of finance leases 
                  43,907,921  
              48,184,666                   (4,276,745) 
Current portion of finance leases 
                     7,694,586  
                 5,826,314                     1,868,272  
Total current and non-current lease liabilities 
          51,602,507  
       54,010,980  
          (2,408,473) 
 
The aging schedule for outstanding current and non-current lease liabilities as of December 31, 2020 and 
2019 is shown below: 
 
As of December 31, 2020  
Within 12 months 
Between 1 and 5 
years 
After 5 years 
Total 
(€)   
Finance leases  
                     7,694,586  
              15,277,032  
                28,630,889  
              51,602,507  
Total 
             7,694,586  
       15,277,032  
         28,630,889  
       51,602,507  
 
 
As of December 31, 2019 
Within 12 months 
Between 1 and 5 
years 
After 5 years 
Total 
(€)   
Finance leases  
5,826,314 
19,491,755 
28,692,911 
54,010,980 
Total 
    5,826,314  
 19,491,755  
28,692,911  
54,010,980 
 
Movements in lease liabilities during the period are shown below: 
 
(€) 
Lease liabilities 
As of January 1, 2020 
          54,010,980  
Additions due to new leases 
                     1,015,979  
Additions/(Reductions) due to lease modifications 
                   (1,002,644) 
Financial expenses  
                     1,846,462  
Payments 
                   (4,268,270) 
As of December 31, 2020  
          51,602,507  
 
33.  Employee benefits 
 
Employee benefits include the provisions relating to post-employment benefits (TFR) for Company 
employees and the liabilities relating to medium/long-term incentive plans awarded to several of the 
Company’s employees. The following table shows a breakdown:  
 
(€) 
2020 
2019 
Change  
Post-employment benefits (TFR)  
                  16,084,574  
              14,730,588  
                   1,353,986  
Medium/long-term incentive plan  
                     4,312,237  
                 2,156,118  
                   2,156,119  
Total  
          20,396,811  
       16,886,706  
           3,510,105  
 
As of December 31, 2020, “Employee benefits” amount to €20,396,811 (€16,886,706 as of December 31, 
2019) and include liabilities relating to:

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103 
• post-employment benefits (TFR) for Company employees, determined on the basis of actuarial 
techniques; 
• the medium/long-term incentive plan for several key management personnel whose roles are 
considered to contribute to the achievement of strategic results. 
 
Post-employment benefits (TFR) 
 
Movements in post-employment benefits (TFR) break down as follows: 
 
(€) 
Post-employment 
benefits (TFR) 
As of December 31, 2019   
          14,730,588  
Interest on the obligation 
                         123,512  
Service costs 
                     2,547,021  
Due from INPS under solidarity contract    
                            80,109  
Utilizations and prepayments  
                   (1,270,851) 
Actuarial loss/(gain) 
                       (125,805) 
As of December 31, 2020  
          16,084,574  
 
The actuarial assumptions used to calculate the post-employment benefits (TFR) are shown in the 
following table: 
 
  
2020 
2019 
Economic assumptions 
  
 
Annual discount rate 
0.34% 
0.77% 
Annual inflation rate 
0.80% 
1.20% 
Annual increase in post-employment benefits 
2.10% 
2.40% 
Annual salary increases 
Managers 2.50% 
Managers 2.50% 
Non-managers 1.00% 
Non-managers 1.00% 
Demographic assumptions 
  
  
Frequency of advance payments 
1.20% 
1.20% 
Employee turnover rate 
2.00% 
2.00% 
 
With regard to the discount rate, for all of the periods in question, the Iboxx Corporate AA with a duration 
of 10+ on the valuation date was used as the reference rate. 
The table below provides a sensitivity analysis of the liability for post-employment benefits (TFR) in terms 
of changes in the main actuarial assumptions for the year ended December 31, 2020: 
 
(€) 
2020 
Employee turnover rate + 1% 
                  15,605,530  
Employee turnover rate - 1% 
                  16,666,383  
Inflation rate + 0.25% 
                  16,703,579  
Inflation rate – 0.25% 
                  15,495,604  
Discount rate + 0.25% 
                  15,329,367  
Discount rate – 0.25% 
                  16,892,207  
 
Medium/long-term incentive plan 
 
This item reflects the three-year incentive plan for the period 2019-2021 that was launched for several 
key management personnel whose roles are considered to contribute to the achievement of strategic 
results. The incentive is assigned when certain future performance goals for the Company are achieved.  
 
As of December 31, 2020, the liability has been calculated on the basis of the Company’s results for the 
three-year period 2019-2021, and the benefit linked to the incentive plan, to be paid at the end of the 
period, is determined on the basis of the expected cash flows, calculated at a discounting rate of 0.34%.

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Movements in the provision relating to the medium/long-term incentive plan (also long-term incentive 
plan or “LTIP”) as of the reporting date break down as follows. 
 
(€) 
Medium/long-term 
incentive plan 
As of December 31, 2019   
             2,156,118  
Interest on the obligation 
                            14,703  
Provisions 
                     2,141,416  
As of December 31, 2020  
             4,312,237  
 
34.  Deferred tax liabilities 
 
(€) 
2020 
2019 
Change  
Deferred tax liabilities   
                  27,544,659  
              30,254,912  
                 (2,710,253) 
Total  
          27,544,659  
       30,254,912  
          (2,710,253) 
 
“Deferred tax liabilities” consist of temporary differences on the mismatch between the carrying amounts 
of the trademark and customer relationships and the related fair value recognized on completion of the 
PPA.  
 
The following table shows movements in deferred tax liabilities. 
 
(€)  
Trademark 
Customer Relationships 
Total 
As of December 31, 2019  
 6,607,374  
 23,647,538  
 30,254,912  
Positive Impact on profit or loss 
        (792,885) 
       (1,917,368) 
       (2,710,253) 
As of December 31, 2020  
 5,814,489  
 21,730,170  
 27,544,659  
 
35.  Non-current provisions 
 
The following table shows movements in non-current provisions: 
 
(€) 
Disputes with third 
parties 
Disputes with 
personnel 
Other provisions 
Total 
As of December 31, 2019   
             2,812,687  
                          91,588  
           1,160,563                 4,064,838  
Additions 
                  30,881,280                             128,795                         270,000  
      31,280,075  
Releases  
                   (1,321,937) 
(19,358) 
           (25,573) 
   (1,366,868) 
Utilizations 
                          (40,856) 
   (101,512)                      (167,001) 
     (309,369) 
As of December 31, 2020  
          32,331,174  
                 99,513  
           1,237,989                33,668,676  
 
As of December 31, 2020 “Non-current provisions” amount to €33,668,676 (€4,064,838 as of December 
31, 2019) and primarily include provisions for pending legal proceedings.  
“Other provisions” primarily include provisions made in previous years for operating costs that the 
Company may be requested to pay.  
 
The following paragraphs provide a brief description of the main pending legal proceedings that the 
Company is involved in, for which it has made non-current provisions as of December 31, 2020 in the 
belief, as the requirements of IAS 37 are satisfied, based also on counsel’s legal opinion, that an adverse 
ruling is probable.  
 
Lawsuits brought before the Civil Court of Rome - On July 29, 2014, a supplier notified the Company of a 
court order to pay an amount of €166,104 plus interest and legal costs, which the Company has 
challenged before the court. At the first hearing, the court denied the claimant’s request for provisional 
enforcement of the above order. The same supplier also notified the Company of the following: (i) on 
April 9, 2015 another provisionally enforceable court order to pay an amount of €197,640 plus interest

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105 
and legal costs and a corresponding writ of execution, which the Company has challenged; (ii) on January 
28, 2016, a further court order for the amount of €244,000 plus interest and legal costs, which the 
Company has challenged. 
All the above challenges of the court orders have been combined with a previous lawsuit brought by the 
Company against this supplier - regarding termination for breach of the procurement contract awarded to 
the latter and consequent compensation for damages. The hearing was adjourned until May 5, 2021 for 
clarification of the pleadings.  
 
Lawsuits brought before the Civil Court of Rome - On December 29, 2017, a supplier notified the Company 
of a court order to pay an amount of €12,519 plus interest, court fees, VAT, legal fees and other expenses. 
The Company has appealed. The application for the court to grant provisional enforceability of the 
injunction was rejected. The hearing was adjourned until June 10, 2021 when oral discussion of the case 
will take place, with a deadline of May 30, 2021 for final briefs to be filed. 
 
Lawsuit brought before the Civil Court of Rome - On December 14, 2018 a network of travel agencies 
notified the Company of an action requesting the court to rule on: i) the Company’s non-fulfilment of the 
obligations referred to in the train ticket sale agreement; and ii) Italo’s non-contractual liability. As a 
result, the plaintiff requested total damages of €721,689 plus legal expenses. The hearing was adjourned 
until September 29, 2021 for clarification of the pleadings.    
 
Extraordinary appeal to the President of the Republic by Trenitalia SpA against the new Lounge rates of 
GS Retail Italia SpA - On August 25, 2020 notified an extraordinary appeal to the President of the Republic 
for the nullification (a) of the measure implemented by Grandi Stazioni Retail SpA, prot. 401 of February 
28, 2020, containing “ART Resolution no. 130/2019 – application of new rates for lounge areas”, after 
ascertaining the unlawfulness of the different rates charged by the same company pursuant to 
Resolutions ART no. 130/2019 and no. 96/2015, for the use by railway operators, including the Company, 
of areas in train stations designed to welcome and assist passengers (i.e. Lounge); and (b) of any other act 
in any way related, coordinated, preliminary or consequent. Following the challenge filed by Grandi 
Stazioni Retail SpA pursuant to article 10, paragraph 1, Presidential Decree 1199/1971, Trenitalia 
transferred the appeal to a jurisdictional venue, before the Administrative Regional Court (TAR) of the 
Lazio Region. A hearing date is awaited for this case.  
 
Lawsuit brought before the Civil Court of Rome – On October 20, 2020 the Company filed an appeal 
against an order to pay notified by a railway operator for €191,786 plus interest, proceeding expenses 
and any necessary alleged training costs under Legislative Decree 247/2020 and decree of the Ministry of 
Infrastructure and Transport of November 30, 2012. The dispute was settled by the parties and at the 
hearing scheduled for March 31, 2021 the Judge took the case under advisement revoke the injunction 
and to declare that the action was deprived of purpose, with each party paying its own costs.     
 
Lawsuit against resolution ART no.70 of October 31, 2014 concern “The regulatory measures the 
equitable and non-discriminatory access to railway infrastructures” 
On  January 8, 2015, the Company notified an appeal requesting the annulment of Transport Regulator’s 
resolution no. 70/2014 of  October 31, 2014 concern “The Regulatory measures for equitable and non-
discriminatory access to railway infrastructures” and of any other original, connected and/or 
consequential act with particular reference to the inclusion of investments among the costs to be 
considered for the purpose of determining HS access costs. By order of March 10, 2016 the Lazio Regional 
Administrative Court rejected its territorial jurisdiction over the matter, indicating as the competent court 
the Piedmont Regional Administrative Court. The Company proceeded to file its appeal with this new 
Court. On June 5, 2017, the Company, following the examination of the documents filed by ART and RFI 
SpA at the request of the Regional Administrative Court (order no. 388 of March 17, 2017) notified - in 
connection with the case - an appeal for reasons added to confirm the complaints already raised in the 
application of the judgment and the illegality of the tariff determinations made by ART with resolution 70

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of 2014. By judgment no. 1239 of November 20, 2017, the Piedmont Regional Administrative Court 
dismissed the action brought by the Company. 
On February 20, 2018 the Company appealed this ruling. On August 5, 2019 the Council of State ordered a 
review of the complaints raised by the Company. The hearing is scheduled for October 7, 2021. 
 
On July 26, 2017, Rete Ferroviaria Italiana SpA (RFI SpA) notified the Company its appeal against decision 
no. 541 of April 21, 2017 by which the Piedmont Regional Administrative Court rejected in part and in part 
declared inadmissible the appeal brought by RFI SpA for the annulment of resolution no. 70/2014 of 
October 31, 2014 by the Transport Regulator and any other original, connected and /or consequential act. 
By judgment no. 6108/2019 of September 9, 2019, the Council of State upheld the appeal brought by RFI 
SpA. 
 
On October 31, 2019, the Company notified an appeal for the reversal of the decision of the Council of 
State of September 9, 2019 no. 6108, containing acceptance of the appeal brought by RFI against the 
decision of the Piedmont Regional Administrative Court no. 541/2017, concerning the Transport 
Regulator’s resolution no. 70/2014. In that case, on November 29, 2019, the Transport Regulator notified 
a counterclaim, with an injunction application (which it subsequently withdrew). By judgment no. 
1262/2019 of February 12, 2021, the Council of State, after meeting on the appeal brought by Trenitalia 
SpA against the same decision, declared the appeals inadmissible.  
 
On November 29, 2019 Trenitalia SpA notified an appeal for the reversal of the decision of the Council of 
State of September 9, 2019 no. 6108, containing acceptance of the appeal brought by RFI against the 
decision of the Piedmont Regional Administrative Court no. 541/2017, concerning the Transport 
Regulator’s resolution no. 70/2014. By judgment no. 1262/2019 of February 12, 2021 the Council of State, 
after meeting on the appeal brought by Italo SpA against the same decisions (see above), declared the 
appeals inadmissible. 
 
On December 23, 2019, the Transport Regulator notified an appeal, brought in accordance with art. 111, 
paragraph 8 of the Constitution, against Council of State judgement 6108 of September 9, 2019, 
upholding the appeal brought by RFI against Piedmont Regional Administrative Court judgement 
541/2017, concerning the Transport Regulator’s determination 70/2014. In connection with this lawsuit, 
on January 31, 2020, both the Company (backing the appeal brought by the Transport Regulator) and RFI 
(challenging the Regulator’s appeal) filed cross-appeals. A date for the relevant hearing is awaited. 
 
In compliance with judgment 6108/2019 of the Council of State, by resolution no. 39 of March 25, 2021 
ART initiated a procedure to identify the criteria for the redetermination of the HS/HC rail infrastructure 
access fee for the period between November 6, 2014 to December 31, 2015 and, to this end, called for a 
public consultation on the draft containing the criteria for the redetermination of the access fee to the 
HS/HC railway infrastructure for the aforementioned period. 
 
Lawsuit brought before the Civil Court of Rome – On February 24, 2021, a supplier appealed under Art. 
702 bis of the civil procedure code to obtain a Court order for the Company to pay €152,618 for incorrect 
calculation of the sums due in relation to the purchase of advertising space and related premiums. The 
hearing for the appearance of the parties is scheduled for April 2021. 
 
Lawsuit brought before the Labor Court Judge - The Company is the defendant in actions concerning the 
following matters: request for classification as permanent employee; appeals against disciplinary 
measures and alleged anti-union conduct. Where quantifiable and if the risk of losing the case is deemed 
to be likely, specific provisions have been allocated for risks and charges. 
 
Lawsuits brought before Justices of the Peace and Courts – The Company is the defendant in lawsuits 
brought by certain passengers requesting reimbursements or complaining about alleged damage, 
financial and otherwise, caused by problems linked to the COVID-19 epidemic, delays to the train in which

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107 
they were travelling or by accidents affecting them on board trains. Where quantifiable and if the risk of 
losing the case is deemed to be likely, specific provisions have been allocated for risks and charges. 
 
36.  Trade payables 
  
The following table shows a breakdown of trade payables: 
 
(€) 
2020 
2019 
Change  
Trade payables 
                  87,406,105  
           131,780,023  
               (44,373,918) 
Invoices to be received 
                  57,892,004  
              57,024,276  
                       867,728  
Total  
        145,298,109  
     188,804,299  
       (43,506,190) 
 
At December 31, 2020 the reduction of trade payables, in the amount of €43,506,190, is due mainly to the 
contraction of activities determined by the pandemic and by the introduction of restrictive measures by 
the Government Authorities, which resulted in a decrease in operating costs as well as a review of the 
terms and conditions of arrangements with certain partners in light of the diminished business.  
 
The supplier of the trains in Italo’s fleet has sold trade receivables due from Italo and related to the supply 
of EVO pendolinos to a factoring company. These items are accounted for in trade payables as of 
December 31, 2020. This transaction: 
• does not involve any modification of payment terms for the Company, although it can allow the 
deferment of payments due to the use, by the factoring company, of more favorable interest rates 
than those specified in the original contract with Alstom; 
• does not entail the payment of any fees to the factor by the Company. 
 
Since there have been no changes in the nature of the debt that has been factored (no significant 
amendments to payment terms or additional costs for the Company), it continues to be classified as a 
trade payable and not as a financial liability.  
 
As of December 31, 2020 trade payables due to the factoring company amount to €18,796,279.  
 
37.  Deferred revenues from transport services 
 
The following table shows a breakdown of this item: 
 
(€) 
2020 
2019 
Change  
Deferred revenues from transport services  
                  34,555,290  
              44,585,304  
               (10,030,014) 
Total  
          34,555,290  
       44,585,304  
       (10,030,014) 
 
This item primarily includes revenues collected for train tickets sold for services to be provided after the 
end of each period under review and, to a lesser extent, reimbursements due to passengers as a result of 
delays or disruptions to services.  
 
The decrease compared with the previous year, amounting to €10,030,014, is mainly due to lower ticket 
sales as a result of the restrictive measures adopted by the government authorities to combat the health 
emergency determined by the pandemic.  
 
38. Other current liabilities 
 
The following table shows a breakdown of this item: 
 
(€) 
2020 
2019 
Change  
Due to employees 
                  18,556,376  
              13,590,050  
                   4,966,326

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                                                                                 108 
Tax liabilities and social security payables 
                     5,853,018  
                 6,402,936  
                     (549,918) 
Other liabilities 
                     1,446,263  
                 3,489,534  
                 (2,043,271) 
Current liabilities for amounts settled 
                                         -  
                 1,307,193  
                 (1,307,193) 
Derivative liabilities 
                     2,180,376  
                          1,480  
                   2,178,896  
Payables for derivative financial expenses 
                         130,744  
                       54,675  
                          76,069  
Total   
          28,166,778  
       24,845,868  
           3,320,909  
 
The decrease in “Tax liabilities and social security payables” was due to the use of measures implemented 
by the Government to support the liquidity of businesses hit by the pandemic. 
  
“Other liabilities” include mainly the security deposits received from travel agencies in relation to the sale 
of tickets and other liabilities toward customers. The decrease in this item was due to lower sale volumes.    
 
The item “Derivative liabilities” indicates the fair value of derivative instruments held by the Company at 
the reporting date.  
The instruments involve the periodic exchange of cash flows (outflows at a fixed rate and inflows at a 
variable Euribor rate) with a notional value hedging a portion of the underlying debt. The above derivative 
instruments, some of which are classified as “ESG-linked”, qualify for the application of hedge accounting 
and as cash flow hedges of existing debt. The increase was due to the combined effect of the overall 
notional value of the derivative portfolio and a shift of the yield curve.   
 
The following table shows financial assets and liabilities measured and recognized at fair value as of 
December 31, 2020 and December 31, 2019: 
 
As of December 31, 2020  
Level 1 
Level 2 
Level 3 
Total 
(€) 
Financial assets 
  
  
  
  
Bonds 
                                    -  
        -  
-  
                         -  
Term deposits 
                                    -  
     -  
-  
-  
Cash 
                  20,212,824  
  
   -  
20,212,824  
Total financial assets 
          20,212,824  
                              -  
                              - 
20,212,824 
Financial liabilities 
  
  
  
  
Non-current borrowings  
  
(1,097,349,355) 
-  
(1,097,349,355) 
Current borrowings 
-  
(3,875,432) 
-  
 (3,875,432) 
Derivative instruments 
-  
(2,180,376) 
-  
    (2,180,376) 
Total financial liabilities 
       -  
(1,103,405,163) 
                            -  
       (1,103,405,163) 
 
As of December 31, 2019 
Level 1 
Level 2 
Level 3 
Total 
(€) 
Financial assets 
  
  
  
  
Bonds 
- 
- 
- 
- 
Term deposits 
- 
40,086,470 
- 
40,086,470 
Cash 
40,101,283 
- 
- 
40,101,283 
Total financial assets 
40,101,283 
           40,086,470  
                                  -  
80,187,753 
 
  
  
  
  
Financial liabilities 
  
  
  
  
Non-current borrowings  
- 
(897,791,129) 
- 
(897,791,129) 
Current borrowings 
- 
(2,418,285) 
- 
(2,418,285) 
Derivative instruments 
  
(1,480) 
- 
(1,480) 
Total financial liabilities 
- 
       (900,210,894) 
                                  -  
(900,210,894) 
 
39.  Other information 
 
Remuneration of directors and statutory auditors

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109 
Pursuant to article 2427, paragraph one, no. 16 of the Italian civil code, the table below shows the annual 
compensation payable to Directors and members of the Board of Statutory Auditors.  
 
(€)  
2020 
2019 
Directors   
11,433,494 
5,262,619 
Board of Statutory Auditors  
140,000 
140,000 
Total  
11,573,494 
5,402,619 
 
Auditors’ fees 
 
Pursuant to article 37, paragraph 16, of Legislative Decree 39/2010 and sub-paragraph 16-bis of article 
2427 of the Italian Civil Code, it is noted that fees payable to the audit firm for the year ended December 
31, 2020 amount to €403,000 (net of VAT and expenses incurred) and include: 
• the audit of financial statements for the year ended December 31, 2020; 
• the procedures performed in relation to completion of the quarterly and annual tax returns; 
• other audit and non-audit services.  
 
(€)  
2020 
Audits 
95,000 
Tax attestation services  
18,000 
Other audit services 
110,000 
Other non-audit services 
180,000 
Total 
403,000 
 
 
Guarantees 
 
The guarantees issued by banks to third parties on the Company’s behalf break down as follows: 
 
(€) 
2020 
2019 
Sureties to guarantee performance of lease contracts  
                     2,424,733  
                 2,433,755  
Sureties to guarantee repayment of surplus VAT  
-  
              34,968,801  
Sureties in favor of RFI SpA for use of infrastructure  
                  15,876,000  
              15,876,000  
Other  
                     1,031,679  
                     632,138  
Total  
          19,332,412  
       53,910,694  
 
During the periods in question, the Company did not directly grant any guarantees to third parties.  
 
Commitments  
 
The main commitments made by the Company relate to purchases of new EVO trains and maintenance 
contracts Italo’s fleet.  
 
Expected payments for non-cancellable contracts as of December 31, 2020 and 2019 are as follows.  
 
(€) 
  
2020 
  
2019 
 
Purchase of EVO trains 
Train maintenance 
 
Purchase of EVO trains 
Train maintenance 
Within 12 months 
                43,972,000  
                       65,349,191  
    62,660,356  
       74,725,250  
Between 1 and 5 years 
                                    -  
                    352,121,953  
    43,972,000  
     330,682,069  
After 5 years 
                                    -  
                 1,913,582,121  
                     -  
  1,957,348,955  
Total  
                43,972,000  
                 2,331,053,265  
  106,632,356  
  2,362,756,274

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                                                                                 110 
 
Contingent liabilities 
 
The Company is a party to civil, administrative, labor and social security proceedings arising as a result of 
its ordinary activities. Based on the information currently available, and considering risk provisions in 
place, the Company believes, based also on counsel opinion, that the outcomes of these proceedings can 
be reasonably expected not to have a significant negative impact on the financial statements. Therefore, 
in line with the provisions of IAS 37, contingent liabilities resulting from pending legal actions brought 
against the Company, where an adverse outcome is not deemed likely and, in any case, cannot be 
quantified, have not been recognized in the financial statements for the periods under review. The 
following paragraphs provide a brief description of the pending proceedings.  
 
Lawsuit brought before Lazio Regional Administrative Court – On February 11, 2014, a consumers' 
association notified the Company of a petition requesting annulment of (i) measures to authorize the 
installation of “Train Repeater” systems and “Wi-Fi access points” on board Italo trains, and (ii) any other 
related, connected or consequential action. A date for the hearing is awaited. 
 
Lawsuit brought before the Council of State by a consumers’ association against Piedmont Regional 
Administrative Court judgement 1181/2017 - On February 9, 2018, a consumers’ association notified Italo 
SpA of an appeal against sentence no. 1181 of 9 November 2017, with which the Piemonte Regional 
Administrative Court rejected the appeal brought by the same association for the cancellation (i) of art. 3, 
paragraphs 1, 2, 4 and 5 of the Transport Regulator’s determination 54/2016 of May 11, 2016, regarding 
"Measures concerning the minimum content of the specific rights of passengers in possession of season 
tickets in respect of the operators of high-speed rail services" and (ii) of any other related, connected 
and/or consequential action. On March 16, 2018, Trenitalia SpA notified a cross-appeal against the 
aforementioned Piedmont Regional Administrative Court sentence 1181 of November 9, 2017. A date for 
the appeal is awaited.  
 
Lawsuit brought before Piemonte Regional Administrative Court by Trenitalia SpA against the Transport 
Regulator’s determination 152/2017, the Network Prospectus for 2019 and the Transport Regulator’s 
determination 33/2018 - On February 20,2018, Trenitalia SpA notified the Company of an appeal with 
which it has requested the annulment - subject to precautionary relief - of the Transport Regulator’s 
determination 152/2017 of December 22,2017, concerning "Conclusion of the proceeding initiated with 
determination 77/2017. Additions to the principles and criteria applied in regulation of the national 
railway system ... ", as well as of the January 2018 edition of the Network Prospectus for 2019, limited to 
certain paragraphs, and of any other related, connected and/or consequential action. On March 22, 2018, 
Italo SpA declared that it would appear before the court, challenging the territorial jurisdiction of Lazio 
Regional Administrative Court. As part of the same lawsuit, on May 21, 2018, Trenitalia notified the 
Company of additional reasons for its appeal, also requesting annulment (i) of the Transport Regulator’s 
determination 33/2018, concerning “Application of the principles and criteria for regulating access to the 
national railway system established in determination 152/2017: approval, subject to certain 
requirements,  of the formats for the information published by RFI SpA in accordance with provision 1 in 
Annex A; compliance with the requirements of the new rate system drawn up by RFI SpA”, (ii) of the 
Network Prospectus for 2019 – March 2018 edition, limited to certain paragraphs, and of any other 
related, connected and/or consequential action. On June 22, 2018, in order 6977, Lazio Regional 
Administrative Court declared that it did not have jurisdiction, indicating Piedmont Regional 
Administrative Court as the competent court. Following the appeal under article 16 of the code for 
administrative proceedings lodged by Trenitalia SpA against the above order 6977/2018, the Council of 
State with order no.7321 of December 31, 2018, upheld the jurisdiction of Piedmont Regional 
Administrative Court over the challenge to the measures adopted by the Transport Regulator. As notified 
on January 14, 2019, Trenitalia SpA thus resumed its action before Piedmont Regional Administrative 
Court, subsequently declaring that it was no longer interested in precautionary relief. A hearing has been 
scheduled for May 11, 2021.

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111 
 
Lawsuit before the Council of State brought RFI SpA against Piedmont Regional Administrative Court  
264/2019 – On June 10, 2019 RFI SpA notified an appeal against decision no. 264/2019 of March 11, 2019, 
whereby Piedmont Regional Administrative Court rejected the appeal filed by the RFI SpA against 
resolution no. 78/2018 of the Transport Regulator and any other related, connected and/or consequential 
action. Following the hearing held on March 11, 2021, the appeal was held under advisement.  
  
Lawsuit brought before the Supreme Court of Cassation by ARERA (the Regulatory Authority for Energy, 
Networks and the Environment) against Council of State judgement 3348/2019 – On September, 23 2019, 
ARERA (the Regulatory Authority for Energy, Networks and the Environment) notified the Company of its 
decision to appeal Council of State judgement 3348/19 before the Supreme Court of Cassation, in 
accordance with art. 111 of the Constitution, art. 362 of the of the Code of Civil Procedure and art. 110 of 
the code for administrative proceedings. The case concerns subsidies for energy intensive companies. A 
date for the relevant hearing is awaited. 
 
Extraordinary appeal to the President of Italy by Trenitalia SpA against the Transport Regulator’s 
determination 130/2019 -  On January 31, 2020, Trenitalia notified an extraordinary appeal to the 
President of Italy, requesting cancellation of (a) The Transport Regulator’s determination 130/2019 of 
October 01, 2019, concerning “Conclusion of the proceeding initiated with determination 98/2018 - 
Regulatory measures concerning access to service facilities and rail-related services”, and in particular the 
measures prescribed in some paragraphs of the same determination, and (b) any other related, 
connected, prior and/or consequential action.  
Following the appeal filed by the Transport Regulator, pursuant to article 10, paragraph 1, Presidential 
Decree 1199/1971, on March 24, 2020 Trenitalia SpA transferred the case to a jurisdictional venue, before 
the Regional Administrative Court of the Piedmont Region. On July 7, 2020, Trenitalia SpA – in connection 
with the case – notified an appeal for additional reasons requesting cancellation of the Transport 
Regulator’s protocol 6839/2020 of May 8, 2020, laying down “Transport Regulator’s Resolution no. 
130/2019 containing “Measures concerning access to service facilities and rail-related services”. 
Statement of exclusion from scope of Transport Regulator’s resolution no. 130/2019. Response”. At the 
end of the hearing of November 25, 2020, the case was taken under advisement.  
 
Lawsuit brought before Lazio Regional Administrative Court – On January 19, 2021 a railway operator 
notified the Company of an appeal for reasons added for the cancellation of the measures whereby the 
Ministry of Infrastructure and Transport rejected this operator’s request for the grant under article 214 of 
Law Decree 34 of May 19, 2020, converted into Law 77 of July 17, 2020; and (ii) any related, connected 
and consequential action. The Company filed an appearance. On March 15, 2021 the railway operator 
notified further added reasons with respect to further measures relating to the Company’s ineligibility to 
the grant in question. A date for the hearing is awaited.  
 
Extraordinary appeal to the President of Italy by Trenitalia SpA against the Plans To Use GS Retail SpA’s 
Stations – On April 2, 2021, Trenitalia notified an extraordinary appeal to the President of Italy, requesting 
cancellation of (a) Grandi Stazioni Retail SpA’s “Plan To Use Station 2022 – Measure 11.6 of Resolution no. 
130/2019 of the Transport Regulator” e (b) and any other connected and coordinated, preceding and 
consequential action.  The proceedings are under way.   
 
Finally, the Company could be involved in future in court cases and/or proceedings brought by: (i) 
suppliers that raised exceptions concerning contractual obligations, (ii) travelers who claim alleged unfair 
commercial practices can ask for refunds or damages for problems related to the COVID-19 pandemic, the 
purchase of tickets, delays of the trains with which they travelled or accidents occurred on board the 
train; (iii) consultants, employees and former employees regarding the payment of amounts deemed to 
be due and damages, appeals against disciplinary action and dismissal, requests for position upgrade, 
resulting in claims for payment of the related differences in pay, and other claims for work-related

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                                                                                 112 
payments or damages; (iv) third parties claiming damages for the alleged breach of image rights; (v) other 
rail companies claiming compensation under articles 1 et seq of the Ministry of Infrastructure and 
Transport decree of  November 30, 2012; and/or (vi) the Italian Antitrust Authority (“AGCM”) or the 
Transport Regulator regarding the Company’s handling of refunds payable as a result of the COVID-19 
epidemic. 
 
Related-party transactions 
 
The following paragraphs show the details of transactions performed by the Company with related 
parties, identified according to the criteria defined by IAS 24 “Related Party Disclosures”, for the years 
ended December 31, 2020 and December 31, 2019. 
 
In the following tables, related party transactions include transactions with the following in the periods 
shown: 
• Shareholders: Allianz SpA. 
• Subsidiaries of shareholders: Essecieffe Investment Srl. 
• Senior managers: members of the Board of Directors, the Chairman of the Board of Directors, the 
Executive Deputy Chairman, the Chief Executive Officer and key management personnel. 
 
The following tables summarize the impact of related party transactions on the income statement for the 
years ended December 31, 2020 and December 31, 2019 and on the statement of financial position as of 
December 31, 2020 and 2019. 
 
 
(€)   
Shareholders 
Subsidiaries of 
shareholders 
 Members 
of the 
Board of 
Directors  
 Key 
management 
personnel  
 Total 
related 
parties  
Financial 
statement item 
Impact on 
financial 
statement 
item 
  
  
  
  
  
  
  
  
 Impact of transactions on the 
income statement   
  
  
  
  
  
  
 Personnel costs 
  
  
  
  
  
  
  
 Year ended December 31, 2020  
- 
- 
(11,273,592) 
(1,508,934) 
(12,782,526) 
(63,769,625) 
20.04% 
 Year ended December 31, 2019  
- 
- 
(5,122,996) 
(1,472,331) 
(6,595,327) 
(69,445,177) 
9.50% 
 Other operating costs   
 Year ended December 31, 2020  
(217,671) 
(600,000) 
(12,429) 
(41,699) 
(871,799) 
(98,709,295) 
0.88% 
 Year ended December 31, 2019  
(219,964) 
(598,348) 
(11,213) 
(37,383) 
(866,908) 
(100,079,705) 
0.87% 
  
(€)   
Shareholders 
Subsidiaries of 
shareholders 
 Members 
of the 
Board of 
Directors  
 Key 
management 
personnel  
 Total 
related 
parties  
Financial 
statement item 
Impact on 
financial 
statement 
item 
  
  
  
  
  
  
  
  
Impact of transactions on the 
statement of financial position 
  
  
  
  
  
 Employee benefits 
  
  
  
  
  
  
  
 As of December 31, 2020  
- 
- 
1,111,828 
658,360 
1,770,188 
20,396,811 
8.68% 
 As of December 31, 2019  
- 
- 
554,430 
581,708 
1,136,138 
16,886,706 
6.73% 
 Other current liabilities 
 As of December 31, 2020  
- 
- 
9,054,200 
226,856 
9,281,056 
28.166.777 
32,95% 
 As of December 31, 2019  
- 
- 
2,930,634 
232,151 
3,162,785 
24.845.868 
12,73% 
 
Personnel costs refer to salaries, remuneration, bonuses and incentives, inclusive of social security 
payables, paid to members of the Board of Directors and key management personnel.

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113 
 
Other operating costs mainly refer to: 
• premiums payable on insurance policies stipulated by the Company with Allianz SpA; 
• the cost of consulting services provided by Essecieffe Investment Srl; 
• the cost of leasing company cars granted as benefits to senior managers. 
 
Employee benefits refer to post-employment benefits (TFR), amounts payable under medium/long-term 
incentive plans and other accrued and unpaid benefits due to senior management and key management 
personnel at the reporting date. 
 
Other current liabilities refer mainly to accrued but unpaid compensation and bonuses due to members of 
the Board of Directors and key management personnel as of the reporting date. 
 
40.  Disclosure required by Law 124 of August 4, 2017 
 
Pursuant to Law 124 of 4 August 2017, the following is the disclosure required.  
 
Entity  
Description  
Amount in € 
MINISTRY OF INFRASTRUCTURE AND TRANSPORT 
Reduction of infrastructure access fee (Law Decree no. 34 
of May 19, 2020)    
30,150,857 
 
By Law Decree no. 34 of May 19, 2020, the Government Authorities provided, among other measures, for 
the reduction of the access fee to the railway infrastructure for 2020 in favor of all railway companies 
carrying passengers not subject to public service obligations, with an overall reduction in the 
infrastructure access fee of approximately: (i) 80% from March 10 until June 30, 2020; and (ii) 50% from 
July 1 until December 31, 2020. 
 
Since there is no real monetary disbursement that would allow the point in time at which the grant was 
received to be fixed, it was considered appropriate to adopt the accrual basis of accounting, although the 
legislation on the transparency of public grants provides for the disclosure in the notes to the financial 
statements of "[...] information relating to grants, subsidies, benefits, contributions or aid, in cash or in 
kind, not of a general nature and provided without consideration - in the form of remuneration or 
compensation - for such disbursements by the public authorities referred to in Article 1, paragraph 2, of 
Legislative Decree 165 of 30 March 2001 and by the parties referred to in Article 2-bis of Legislative 
Decree 33 of 14 March 2013”, indicating the use of cash basis accounting.  However, in the case at hand,  
 
41.  Events after December 31, 2020 
 
On January 11, 2021 the Ministry of sustainable infrastructures and mobility (formerly Ministry of 
Infrastructure and Transport), in concert with the Ministry of the Economy and Finances, enacted the 
grant eligibility decree, pursuant to article 214 of Law Decree 34 of May 19, 2020. 
 
By Cabinet Office Decree 30 of March 13, 2021, the Government Authorities again imposed restrictive 
measures in almost the entire country for the period March 15- April 6, tightening in particular on the 
days close to the Easter holidays, strongly recommending to avoid all unnecessary travel and thus starting 
a new decline in demand and, therefore, services. Eventually, with law decree no. 44 of April 1, 2021, such 
measures were substantially extended until April 30, 2021.  
  
On March 15, 2021 the Company submitted to the Ministry of sustainable infrastructures and mobility an 
application for grant eligibility status under paragraph 5-bis of article 214 of Law Decree 34 of May 19, 
2020, converted as amended by Law 77 of July 17, 2020. The report prepared in accordance with the 
same criteria, manners and procedures laid down by Inter-ministerial Decree 472 of October 22, 2020, on

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                                                                                 114 
which the first application was based, is designed to obtain another grant to mitigate the effects of the 
COVID-9 emergency, between August 1, 2020 and December 31, 2020 (second grant period).  
  
By Law Decree 41 of March 22, 2021, the government authorities enacted new provisions aimed at 
strengthening the tools to combat the spread of COVID-19 infection and containing the social and 
economic impact of the prevention measures adopted. The effects of these provisions will unfold in five 
areas: i) support for service enterprises and operators, ii) work and the fight against poverty, iii) health 
and safety, iv) support for local and regional authorities; v) additional sector actions. 
 
In March, the European Commission issued the declaration of compatibility pursuant to Article 108(3) of 
the Treaty on the Functioning of the European Union with reference to the resources provided to railway 
undertakings for goods and passengers in accordance with Article 214 of Law Decree 34 of May 19, 2020. 
To that effect, the amount to compensate the Company for the damage suffered up to June 30, 2020, 
which amounts to €145.6 million, representing a contribution of €141.2 million to the operating revenues 
for the year, in view of the fact that the collection will take place in 15 annual instalments until 2034. 
By virtue of the above declaration, on April 9, 2021 the Ministry of infrastructure and sustainable mobility 
authorized the disbursement of the first two grant installments for a total amount of €19.4 million, upon 
trasmission to the competent bodies for registration. 
 
 
*  *  *  *  * 
 
These financial statements, consisting of the statement of financial position, the income statement, the 
statement of comprehensive income, the statement of changes in equity, the statement of cash flows and 
the related explanatory notes provide a true and fair view of the Company’s financial position, the profit 
(loss) for the period and cash flows, in compliance with the IFRS adopted by the European Union.  
 
Rome, April 26, 2021 
 
 
For the Board of Directors 
 
The Chairman 
 
Luca Cordero di Montezemolo