A more effective rail/road integration in the local public service, expansion abroad into new profitable markets and strengthening on the Milan-Rome route. All with the aim of 9,5 billion in revenues in 2017. These are some of the key points of the industrial plan of the Ferrovie dello Stato group which will cover the four-year period 2014-2017 illustrated today in Milan by the managing director Mauro Moretti. Who didn't spare a few jabs regarding the controversy over his salary cut and his eventual resignation.
"If there is a better alternative, it is welcome" at the helm of the State Railways, said Moretti who then added at the press conference that he was waiting for "Renzi's proposal" on a possible salary cut. Then, he said, "I'll make my assessments, let's see if he can convince me". In the meantime, however, it was Moretti who wanted to convince his shareholder (the Government) and the Italians of the goodness of his work by decisively rattling off the figures of the group's turnaround one after the other: if in 2006 there was talk of risk of bankruptcy, today the group achieved a margin of 23,1% (Ebitda first half of 2013) against 12,7% of the German Db and 8,1% of the French Snfc. Thus, says Moretti, today the group has left behind the phases of rationalization (2007-2008), repositioning (2008-2010), innovation, sustainability and flexibility (2010-2013) and is preparing for a three-year period of "enhancing the net invested capital".
Translated into figures, the group aims for an average revenue growth rate of 3,5% per year, driven in particular by transport services, both rail and road, which will exceed 7 billion in 2017. The Ebitda margin is expected to increase over the three-year period by three percentage points to 26,3% for an absolute value of 2,5 billion (+6,9%) on a like-for-like basis. The operating margin, Ebit, is expected to grow at a rate of 9,6% per year and profit at 4,6% per year. The investments envisaged in the plan reach almost 24 billion euros, of which over 8,5 billion in self-financing. Of these, 6,4 billion are earmarked for trains and technologies serving the business and 1,7 billion for the High Speed/Ac network. The investment plan will be implemented with total debt that will grow by 0,3 billion euro over the four-year period.
Moretti reiterated that the group has what it takes to be listed on the Stock Exchange but that the shareholder's decision has not yet been made. “We are ready for any kind of operation,” he said. Finally, from the sale of Grandi Stazioni, Moretti said that he hopes "to receive a lot and according to estimates they could bring in many hundreds of millions of euros".
As far as high speed is concerned, the new red arrow, i.e. the Etr 1000 "will arrive between 2015 and 2017 to re-determine national services and enhance the most profitable part of international services". The group is ready to take advantage of the opportunities that have opened up on the Milan-Rome route, with Rynair having exited the market and with the expectation that Alitalia will also reduce its efforts. Thus Ferrovie dello Stato, through Trenitalia, estimates it will reach a market share of 57% against the current 52% while, in the presentation slides of the plan, the aircraft is seen falling to 21% from 24% and Ntv's share is seen decreasing to 12% from 13%. Here Moretti said he expects Ntv to "not increase the service".
As far as the development guidelines of the plan are concerned, on the local public transport front the objective is more effective rail/road integration, interventions on infrastructures and traffic management systems. The plan also includes a review of business models. In particular, specialized business units will be set up in the freight sector for national and European corridors.
Abroad, the group aims to develop decisively in Germany. The governance review will also lead to an enhancement of the group's real estate assets from which the aim is to extract resources for financing the growth of the core business. Lastly, Rete Ferroviaria Italiana (RFI) will have a new organization consistent with European regulations which will highlight the role of sole manager of the railway network with respect to the management of other market services.
