GTS Group 2015 Integrated Annual Report

IT

INTEGRATED ANNUAL REPORT 2015

INTE

GR

ATED

AN

NU

AL R

EPO

RT

2015

Integrated annual report 2015

Annual Report 2014

3 La nostra Storia 13 Mission 17 Vision 21 Il mercato di riferimento 29 La nostra forza 39 Bilancio consolidato

Integrated Annual Report 2015

TABLE OF CONTENTSLetter to Stakeholders 4Highlights 7Methodological introduction 8

1.IntroducingtheGroup 11 1.1 Our Story 15 1.2 Our Mission and Company Values 16 1.3 The Business Model 17 1.4 The management of sustainability for GTS 25 1.5 Our stakeholders 28 1.6 The materiality analysis 31

2.Theeconomicvalue 33 2.1 The Market 34 2.2 Freight and passengers transport 40 2.3 Group performance 42 2.4 Main financial ratios 45 2.5 Added value of the production and its distribution 46 2.6 Investments management 48 2.7 Business risks analysis 49

3.Thesocialvalue 50 3.1 Human resources 50 3.2 Our Clients 59 3.3 Suppliers and partners 63 3.4 Financial partners 64 3.5 The Community 65 3.6 Regulatory bodies 67 3.7 Railway Safety 68 3.8 Public Institutions 70 3.9 Trade Associations 70

4.EnvironmentalResponsibility 71 4.1 Transport and Intermodality 72 4.2 Energy savings 75 4.3 Waste management 75 4.4 Environmental investments 76

5.ConsolidatedFinancialStatements2015 77 – Balance sheet 79 – Note to financial statements 82 – Cash flow statement 103 – Auditor’s reports 104

GRI-G4 - Guidelines

Dear Stakeholders,2015 has been an exciting year!

It is a pleasure to introduce this document that you are holding right now in your hands or in the paperless version on the monitor in front of you. In 2014 we created our very first Sustainability Report together with the Annual Report.

This year we have decided to focus on the editorial of an integrated document that considers equally as relevant the sustainability information with that of economics and strategies, because this represents our way of doing business, a constant projection towards the future, all of this shared with you, because we believe that the involvement of our stakeholders is our strong point. That being said, it is part of a well-defined program aimed at achieving recognition within a short time.

The figures are important and deserve the utmost attention, but what is even more important is the daily feedback that the Vision and the GTS business model are headed in the right direction. The proof is noted in the recent measures taken by the Italian Government, and not only that, but also the industry incentives which aim to shift goods from road to rail in the same time frame. Important resources that will be used to allow us to grow even faster.

The rail / intermodal transport market has shown once again this year, at the European level, the constant and continuous disengagement of the incumbents. The market shares lost, or rather abandoned, are only partially recovered from private companies, resulting in a decline in intermodal transport volumes year after year. In Italy we are about 25% away from the EU White Paper targets fixed at 30% of the ‘intermodal traffics for distances greater than 300km’. Significant entry barriers and the current GTS organizational dimension create ideal conditions in order to consolidate paths of development and growth such as quantitative; the potential growth abroad, but especially growth in Italy, is incredible.

Our high vertical integrated system, where the entire supply chain is managed directly, produces efficiency benefits, affordability and quality that are recognized by the market. The GTS brand is establishing itself as the first reality of the sector at a national level and among the top ten in Europe. On the international stage the competitors are of considerable size, but also in this arena, the Company competes head to head by operating on equal terms on the market in UK, Belgium, Holland, France, Greece and Turkey. Investments in new rolling stock, professional skills and structure continue at a steady rate to strengthen the production capacity which aims to meet the growing demand.

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GTS is establishing itself as the best place to work. The attention we give to our employees is demonstrated by their very high degree of loyalty, commitment and sense of belonging. Values that help deliver excellent standards of quality it is not just this. In fact, to be recognized as an industry landmark, but also as a hotbed for the promotion of talent. It means that the average professionalism in all business areas, has grown tremendously in recent years. Olivetti docet.

The digital disruption is the new challenge that we have embraced. Clayton Christensen, a Harvard professor, forged the term digital disruption, which indicates the moment in which a new technology gives rise to a change in a particular activity and change completely the previous business model. The digital revolution is changing everything, in many sectors, in a radical manner, at an impressive rate. Companies that until a few years ago boasted solid leadership on the market, have been overwhelmed by new entries capable of implementing innovative digital models, “destructive” of existence. In this context, so fluid, we do not want to just stand by and watch. We are working hard to change the way we do business and the customer experience to bring GTS to new digitizing borders, in an industry where pen and paper are still the master.

The GTS project involves heavy investments to support growth. We believe that our ability to increase the volumes transported is directly proportional to the ability to acquire the key assets of the production. From an economic point of view we are in a rather strange market: demand exceeds supply and the latter fails to grow at a satisfactory pace, and as already mentioned, the trend goes in the exact opposite direction.

Previously dashed conditions have created an extraordinary competitive advantage for us. But the growth that we want to give to our Group must be characterized by elements of sustainability. It is unthinkable and we do not want to load our company with debts that go beyond physiological limits and safety. For this reason the best way is that of approaching the stock market of capitals. With a transparent view towards Stakeholders for the past eight years have been auditing our financial statements on a voluntary basis. In 2016 we have been admitted to the Elite project of the Italian Stock Exchange and we plan to obtain certification by 2016. The path is demonstrating all of its value of system evolution and consolidation of the organization with a view to “listed.”

We have to grow, we consider today’s dimension a passing phase. The more we grow, the more structure is consolidated, the more risks are fractionated, and the economies of scale make their positive weight, on the income statement, noticed. The railway is a complex world, capital intensive, in short, is not for everyone, rather it is for few. We are there, we will be there, and we want to be at the top of the class.

I left this to the end, but I would have liked to put it at the beginning, a huge thanks you to all our employees. We are surrounded by high professionalism, accompanied by the dedication to work towards an exceptional objective, that only a great team is able to bring to the field consistently every day.

The making of a great company requires passion and dedication. At GTS all you need to do is walk through the hallways to remain dazzled.

Alessio Michele Muciaccia Chief Executive Officer

[5]

Istanbul

Killingholme

Purfleet

Zeebrugge

Parigi

Rotterdam

MilanoPiacenza

Melzo

Pomezia

Marcianise

Bari

Patras Izmir

Teesport

Dublin

Istanbul

Killingholme

Purfleet

Zeebrugge

Parigi

Rotterdam

MilanoPiacenza

Melzo

Pomezia

Marcianise

Bari

Patras Izmir

Teesport

Dublin

HIGHLIGHTS

Financials 2015 2014 %

Revenues* 79.6 73.4 +8.4%Ebitda* 7.9 6.4 +23.4%Total net equity* 15.6 12.4 +25.8%Ebit* 4.5 3.7 +21.6%Net result* 3.1 2.5 +24.0%Ebit % 5.7% 5.5% +0.2%Ebitda % 9.9% 9.0% +0.9%*Valueexpressedin€millions

Production 2015 2014 %

Number of Loads 69,277 59,665 +16.1%

Train/KmItaly 1,077,330 917,321 +17.0%Europe 2,013,504 1,594,462 +26.0%

TOTAL Train/Km 3,090,834 2,511,783 +23.0%Number of clients served 766 746 +2.7%Number of trains 3,119 2,762 +12.9%

Social 2015 2014 %

Training days 272 226 +20%Social Projects 6 5 +20%Number of accidents on the job 2 10 -80%

Environmental 2015 2014 %

Co2 –saving Kg 91,342,576 86,022,453 +6%Noise pollution -21%Road accidents -24%

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METHODOLOGICAL NOTE The GTS Group, in line with the objective of improving the corporate reporting process that was predetermined, chose to communicate its own financial performance and sustainability through the preparation of a single report.

The 2015 GTS Group report is, in fact, in an integrated version which incorporates the contents of the Annual Report, essentially a type of financial disclosure expressions with that of the Sustainability Report, disclosure of topics of the non-financial kind.

The choice of a single document is in full agreement with what today recommends at an international level of professional practices and with the evolutionary guidelines on corporate reporting in respect of which are steering the main organizations in the world.

Therefore this year the GTS Group consolidates a gradual repositioning towards Corporate Social Responsibility in which the Integrated Annual Report becomes the main instrument for communication with its stakeholders.

The development of such an instrument over the past three years can be easily verified when considering the report:

• In 2013 the report implemented the content of the provisions of art. 2428 cc for disclosures on the environment and on the staff,

• In 2014 the report was accompanied by a sustainability report dedicated to the issues of social and environmental responsibility,

• In 2015 it represents the perfect synthesis of economic, financial, social, governance, risks, environmental collection of any non-financial information to present practices in the sustainability report.

The Integrated Annual Report 2015 by GTS Group was inspired once again by the international guidelines GRI-G4, approved by the Global Reporting Initiative (GRI), In accordance with option “core”. The report was also drawn up taking due consideration to the framework proposed by the International Integrated Reporting Committee (IIRC)

Compared to the latter we note that in line with the principle of conciseness (principle of brevity), brought by the same framework, which was introduced in the section “Highlights” In the same perspective it was also conceived in paragraph 1.3. “The business model,” an essential element required by the framework, which introduces change of the orientation, not only in the reporting process, but more specifically in business management, a management that has to look at the relationship with stakeholders in creating not just output (products / services), but most of all outcomes (impacts).

Continuing the theme of the methodological sources it is to be specified that the report has been prepared in consultation, as well as the editorial guidelines of the Social Report, by the Study Group for the Social Report (GBS), the new accountability release 1000 - Stakeholder Engagement Standard 2015, which pays special attention to listening and dialogue with stakeholders.

The area of the information on sustainability reporting does not coincide with the area of consolidation of the GTS group. The non-financial information in the consolidation area relate to the two subsidiaries GTS - General Transport Service S.P.A. and GTS RAIL S.P.A.

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Section 5 “Consolidated Financial Statements 2015 GTS” Group reports its consolidated financial statements 31.12.2015 GTS HOLDING S.R.L. Group prepared in accordance with law. The audit reports contained in the same section are relevant only to the aforementioned consolidated financial statements and do not refer to ‘’ Integrated annual report 2015 “as a whole. In particular, it is to be noted that the information contained in sections 1 to 4 and Appendix of ‘”Integrated annual report 2015” have not been subject to review.

The final work, even though it involved various capacities of the entire organizational structure, is the fruit of a joint work effort of a whole working group, composed as follows:

Mimmo Cavallo – Chief Commercial Officer

Teriana Corallo – Operations Manager

Giuseppe Desantis – General Manager

Vincenza Lassandro – Safety Manager GTS RAIL S.P.A.

Pasquale Todisco – Chief Financial Officer

Antonio Valenzano – Chief Operation Officer GTS RAIL S.P.A.

Head of the Working Group:

Ciro Armigero – Controller – [email protected]

The drafting of the information object to sustainability is attributable to CEO of GTS Holding Srl. With this reference, it is stated that the strategy and the associated responsibilities related to social and environmental aspects are, to date, due to the GTS Group CEO, Dr. Alessio Michele Muciaccia.

On this point, it is useful to note that in the context of the continuous improvement process in the definition of sustainability communication, we will proceed towards the identification of appropriate subject identified by the Group

[9]

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[10]

1. IntroducingtheGroup

GTS was founded in Bari in the late 70’s by Nicola Muciaccia who saw the future of transport intermodality, that combines the various transport systems, road, rail and maritime. Today his son Alessio (40 years of age) continues to realize, with vigor and competence, the vision of his father, the founder.Through vertical integration of the entire production process GTS (the first Italian company to realize it) ensures the total and efficient control of all parts of the freight transport chain for 766 customers, to whom it offers a full service; door to door and terminal to terminal, ensuring daily connections throughout the North / South and South / North corridors in Europe. In Italy GTS owns its railway enterprise, which includes a fleet of 8 of the latest generation electric locomotives TRAXX E483, this railway line covers substantially all the main lines on the Adriatic, Ionian and Tyrrhenian coasts, ensuring connections to the complete European railway network.Today, the GTS Group employs 132 people with an average age of 37 years with the title of the primary multimodal transport operator in Europe in terms of volume and turnover. In 2015, thanks to the fleet of more than 1,800 45 feet HighCube, GTS has realized 3,119 block trains on the various domestic and international routes by helping to eliminate road traffic, around 69,000 trucks, with significant environmental benefits and the cutting down on social costs of road transport.

GTS headquarter is located, Bari, Italy. The Group’s main areas of interest :

• Intermodal transport services of goods for third parties in most of Europe and the Mediterranean;

• Transportation services, Terminal to Terminal;• Organization and Management of Transport and logistics ser-

vices for third parties. • Rail Traction Services in Italy and Switzerland• Training and informative activities in managing and maintaining

expertise in the railway sector

The Group continues the path to insight on the European scene: after the UK and the Netherlands, during 2015 they took into consideration the fact that it would be strategic to invest in the Belgian area identifying a third commercial presence.

Trailers

280

Locomotives

8

Containers

1,800

1.IntroducingtheGroup [11]

On December 31st, 2015, the corporate margin includes the following entities:

GRoupEnTITIES REGISTEREDoFFICE

%paRT.

ToTalaSSET* DESCRIpTIon

parentCompany

GTSHolDInGS.R.l.

2,135the company which holds the shares of subsidiaries, whose shares are all held by the Muciaccia Family

Thesubsidiaries

Transportandlogistics

G.T.S.–GEnERalTRanSpoRTSERVICES.p.a.

52% 36,690

It is the group’s company that interfaces with customers and suppliers, dedicated to the organization and optimization of intermodal transport.

GTSlogisticuKlTD

65% 11 a commercial company, was established in 2013 in order to be present in uK market.

G.T.S.nederlandB.V.

65% 24Commercial company, was established in 2013 in order to be present in the netherlands market.

RailwayTransport

GTSRaIlS.p.a. 52% 14,152 It is the railway enterprise of the group. providing rail haulage services since 2009.

GTSRailSagl 100% 28It is the railway undertaking that will provide traction and haulage services on the Swiss and international territory.

Constructions

muciacciaCostruzioniGruppoGTSS.r.l.

62% 2,079 Company active in real estate.

* Value expressed in € thousands.

Locomotive fleet

September OctOber NOVember AprIL December JANUArY JUNe JUNe

[12] 1.IntroducingtheGroup

The composition of the turnover is almost entirely referable to the typical activities of the sector of reference implemented by two main subsidiaries. In comparison to the previous year, there were no changes in the governance system and the adoption of the traditional system has been confirmed for all companies, with the presence of the following cooperate bodies: The Shareholders, The Administrative Body and The Supervisory Board.On the 29th of September of 2015, GTS SpA adopted the model of organization, management and control pursuant to the Legislative Decree 231 of 2001. It is a set of rules and organizational procedures aimed towards institutions to prevent the commission of crimes subject of attention in the said law. Under the same decree, the Company has appointed the related Oversight Board (Odv): to this collective body, is entrusted the task of ensuring, in an independent manner, the correct implementation and compliance of the model itself. The composition of this body has been carefully considered by the Board and in relation to the company’s reality and the risks identified, fully respecting the autonomy and independence of the same, the skills have been identified.This implementation, already inclined inside the Multiannual commitments paper, will be extended through the next year at GTS General Transport Service S.P.A. The advantages of adopting this model are as follows:

• The guarantee of reliability in relations with commercial and institutional trading partners

• The approval of an appropriate organizational model to prevent crime, introduces the concept of administrative liability of legal entities, independent from that of the offender

• The importance of the same in the allocation process of the Legality Rating. This involves the instrument by which the Guarantor Authority of the Competition and of the Market assigns a score to the honest businesses in possession of a series of legal and quality requirements.

The respect for the principles of responsibility and sustainability, as part of a constant and continuous pursuit of the best skills and useful expertise in all areas and functions, has been confirmed to be a must for GTS. These principles have always described the selection and appointment of the members of the highest governing body.


The institutional structure of the two subsidiaries GTS – General Transport Service SPA and GTS RAIL is as follows:

BOARD OFDIRECTORS

Owner Muciaccia family

Administrators

GTS HOLDING S.R.L. Alessio Michele MuciacciaG.T.S. – GENERAL TRANSPORT SERVICE S.P.A. Nicola Muciaccia

GTS RAIL S.P.A. Alessio Michele Muciaccia

General Manager Giuseppe Desantis

SUPERVISORYBOARD

GTS HOLDING S.R.L.

Statutory Auditor Fabio Caputo

External Auditor Andrea Venturelli

G.T.S. – GENERAL TRANSPORT SERVICE S.P.A.

Board of Auditors

Beniamino Di Cagno

Fabio Caputo

Vito Montanaro

GTS RAIL S.P.A. Board of Auditors

Anna Lucia Muserra

Fabio Caputo

Michele Tetro

External Auditory Company PricewaterhouseCoopers S.p.A.

At GTS the strength of family governance effectively supports an industry-oriented approach to valuable creation in a short period but also in the long run. This allows the management, to which the owners have entrusted the control of operating activities, to plan short and long term actions to continue to grow significantly as a global player in the industry.

CEo

Generalmanager

macroorganizationalstructureforfunctioningareas

Sustainabilitymanager

InformationTechnology

managementcontrol

Humanresources

Financialadministration

andcontrolassetmanagermarketing&Salesoperations

Chairman

CEO

Founding date

1.1 Our StoryThe history of the GTS Group began in 1977, the year in which founder, Nicola Muciaccia, faced with courage the entrepreneurial challenge to create his own transport company. From the very beginning profound attention was paid to the widest audience of customers, trying to provide the best transportation service based on intermodality of rail + road.The following are the main steps that have affected the growth of the GTS Group.

1977

2014The Italian Ministry of Transport andInfrastructures releases to GTS RAIL S.P.A the national railway licence for passengers transport

2013

First participation in the international tradefair “Transport Logistic” in Munich

Setting-up of the subsidiaries G.T.S. Logistic UKLtd and G.T.S. Nederland B.V.

GTS Rail Srl is transformed into GTS RAIL S.P.A.

2011

2015

Territorial extension of the safety certificateand extension to the transport of dangerous goods

Admission to Elite project by Borsa Italiana S.p.A.

Obtainment of the safety certificate released by the National Agency for railway safety

2010Vertical integration of the GTS Rail production

2009The first trains produced by the GTS Railcompany leave

2008Obtainment of the railway licence on the Italian national network

1992First train from Bari to Naples

2007First international train leaves for Manchester

1.2 Our Mission and Company ValuesTo provide the best “green” intermodal transport solution for our clients, this is the company’s mission that has been carried out by Nicola Muciaccia and later passed down to his son Alessio. In these 39 years of activity, there has been a consistent commitment oriented towards the development of environmentally and socially compatible transport systems, a constant and continuous search for high quality processes which are able to transform the negative aspects of highway transport into effective and valuable ones in Railway transportation.GTS is firmly convinced that the attention to our environment and society cannot be overlooked or ignored because of economic and financial stability aimed at growth and creating development programs. To stand out in the world of transport GTS features the “Team Player,” who is actively integrating more and more sustainability in the business strategy, making the commitment distinguishable both inside the company and outside the company towards its customers, suppliers and territorial community of reference.GTS puts the creation of value shared by all the stakeholders at the core of its work and considers sustainability to be the way to carry out its mission: carrying goods throughout Europe fully respecting the environment.GTS offers a bidding system which bases the logistical part with the production, traction, and asset control. The aim here is to prove that the railway is an extraordinarily flexible and versatile tool. The GTS Group, basing their own work on values such as sustainability, safety, innovation, respect for individuals, cooperation, ethics and transparency, aims to seek technologically advanced solutions to meet the needs of an increasingly demanding clientele.

SSoCIalValuE

aEnVIRonmEnTal

ValuE

EEConomICal

ValuE

Profit People Planet

• Profitability and creation of value

• Innovation• Clients’ satisfaction• Economic-financial

planning

• Health and wellbeing in workplaces

• Internal mood• Combining personal life

and work• Professional growth

• Transport with a low environmental impact

• Sustainable investments• Control of emissions

Economicperformance

Socialperformance

Environmentalperformance


1.3 The Business ModelThirty-nine years of experience have allowed GTS Group to develop a business model based on the principles of sustainable development. This approach derives mainly from the vision of the business entity and management, and by the fact of operating in a sector, such as rail and intermodal transport where the sustainability element is absolutely essential. An approach to sustainability through theory, but above all through concrete plans which the GTS Group calls the adoption of good practices such as: the choice of more efficient engines, the use of clean energy sources, the adoption of ecological locomotive models and of new technology for the reduction of harmful emissions and fuel consumption, driver training for more effective driving, the adoption of monitoring systems to optimize the use of fuel.The three pillars that the Group GTs bases its business model on are:

• The development of innovative projects able to create shared value for all stakeholders, keeping amongst them a constant dia-logue that is always open

• A constant control of the internal environment, where maxi-mum attention is paid to all employees, internal and external

• The safekeeping of the environment and of the future genera-tions.

The business model is geared towards the creation of added sustainable value, size this expression of outcome indicators such as economical, environmental and social, all in close synergy with one another. Enhancement and interaction of 6 assets financial, infrastructural, human, intellectual, relational and natural is realized by the GTS group through the creation of a differentiated and customized supply system that meets the needs of its customers who are increasingly more sensitive to the issues of innovation and sustainability.

VALUEBUSINESS ACTIVITY

Financial capitalShare capital, Payables and Cash equivalents

Infrastructural capitalLocomotives, Trailers, Transport Goods containers, Real Estate

Human capitalNumber of Employees, Outside Workers, Corporate Officers

Intellectual capitalRailway license Management System protocols, IT

Natural capitalEnergy consumption, Material consumption, Waste

Social Capital and RelationshipsCustomers, Suppliers, Lenders, Human Resources, Institutions

INPUT

NET INCOME EBITEBITDAECONOMIC AND FINANCIAL SOLIDITY

Economical

HUMAN RESOURCES TRAININGWORKPLACE QUALITYDEVELOPMENT OF LOCAL COMMUNITIES

Social

POLLUTIONNOISEACCIDENTSCONGESTION

Environmental [17]

The externalities produced in the transportation industry

Social reporting is of particular interest when it is capable of demonstrating what the positive and negative externalities can be, and that any economical entity is able to generate in respect to a community.Over the last few years the companies have worked very hard and made a big effort to integrate the principles and practices of sustainability into their business strategies and by promoting actions aimed at improving the living conditions of the communities in which they operate.The main idea behind this new approach is the definition of sustainability, understood as the ability to meet present needs without compromising the ability for future generations to meet their own needs.Company strategies are starting to move towards the integration of activities relating to sustainability in their own business models, to achieve long-term objectives, an approach that takes into consideration the shared value, that is able to assess the competitive advantages and benefits for the cooperation which they adopted.


With this view, the GTS Group has always shown a willingness and a particular degree of sensitivity. Rail transport in comparison to road transport is without a doubt considered the better way to move goods logistically respecting the environment. The topic of the external costs in the transport sector is one of the most important challenges that European politicians will have to face in the next few years.The rapid growth of transport and environmental awareness has merged these factors to the present political agenda. Transport services (goods or people) not only cause considerable environmental damage (air pollution, climate change, noise, ecosystems, etc.) but also have a cost in terms of loss of life and injuries caused by highway accidents. Generally speaking, main externalities caused by transport are as follows; air and noise pollution, accidents, congestion and, more importantly, climate change.

[19]

TYPES OF EXTERNALITIES ‘ CAUSED BY ROAD TRANSPORT

Externality Breakdownofcosts Keyfactors

accidents

• Damage of property• Administrative costs• Medical expenses• Production losses• Risk value

Road transport: Type/ characteristics/ vehicle maintenance; vehicle speed; traffic speed and density; time of day; weather conditions; position, technology and infrastructure maintenance. Air transport: the maintenance level of the aircraft, weather conditions and the level of training and pilot training.Rail transport: Type / characteristics / maintenance of rolling stock, level of infrastructure maintenance. Like air transport, It is essential also for rail transport the level of railroad engineer training.

airpollution

• Healthcare costs • Costs of material

damage• Crop losses

Population and population density. Receptor density in the vicinity of the emission source. Sensitivity of the area. Emission levels (according to the different modes of transport)

Climatechange

• Prevention costs to reduce the risk of climate change

• Costs of the damage due to rise in temperature

Type of vehicle and its equipment. Speed. Driving style. Fuel consumption and fuel carbon content.

Congestionandscarcity

• Congestion: costs related to time and operation

• Scarcity: costs for delays and opportunity costs

Congestion: type of infrastructure, traffic levels and employees skills depending mainly on the time of day, location, accidents and the type of infrastructure.Scarcity: type of infrastructure, traffic levels and employees skills depending mainly on the time of day and location.

noise

• Disturbance • Medical costs

Time of day. Receptor density in the vicinity of the emission source. Existing noise levels.

Lately, a particular interest in the definition of the costs or benefits of transport has been expressed by several parties. This phenomenon has become a trend that has been growing over time proportionally compared to the amount of sales in the sector in question. The expansion of the transport sector as well as the strong predominance of highway mode, has led to substantial environmental and social repercussions. Alongside this consideration another question has emerged, about price or better yet, one asks if road transport prices reflect in their entirety the social costs deriving from it in terms


of pollution, wear and tear of infrastructure, and road accidents. Obviously these types of costs are not included in the market price and therefore makes the road transport a misleading choice as the best solution to adopt.Within the commercial economy, the decisions made by the economic players are highly dependent on the pricing system: when market prices fail to reflect the relative scarcity of resources (such as clean air, the environment’s absorption capacity of pollution, infrastructure, etc ..) the decisions of individuals as consumers and producers of goods and services do not lead to the best welfare conditions for the community. The Externalities indicate that the decisions of individual operators don’t lead to a desirable condition from a community point of view. In this way, the pricing policy based on the “full social cost” takes on a crucial role in the definition of an efficient and sustainable transport system. There is talk about the consideration of such costs included in the determined selling price of the service provided. Lacking this information in the final quotation of the information processed by the stakeholders (the price in particular) turns out to be misleading or incomplete for the overall assessment of the convenience of a service. In this case, it is clear that the lack of disclosure of information of costs will only result on the market as distortion or alteration of the competition between road and intermodal transport.The section dedicated to the development of this study, strongly backed by the CEO of the Group, aims to identify and quantify the real contribution of GTS to environmental protection.To do this two studies were conducted; the first by the Joint Research Centre - Society for Research in house of the European Commission - which has drawn up the cost coefficients relating to the methods of transportation by road and rail in Europe. These values are designed to express in a methodological key, the negative externalities generated by the business model of a transport company that operates on the road compared to railway.

ExTERNAL AND SOCIAL COSTS: COSTS NOT

DIRECTLY BORNE BY ThOSE whO CREATED ThEm,

BUT OF SOCIETY AS A whOLE

“” 1.IntroducingtheGroup [21]

The following values are expressed in Euros and refer to 1,000 tons / km.

Externalities Road Railway

pollution € 8.58 € 1.00

Climate € 3.92 € 1.46

noise € 1.93 € 1.49

accidents € 0.64 € 0.33

Congestion € 3.43 € 0.20

ToTal € 18.50 € 4.48

Source: Eur JRC 2013

The values quoted above, clearly and unmistakably represent the positive contribution which rail transport generates directly towards the environment and society. The ability to make the information available is a distinctive feature of the most advanced enterprises. The management systems – economic, quality, environmental – are more effective if supported by factual detection elements of monitored parameters. The ability to properly manage the flow of information, however, requires a series of interventions on both the technological level, and the organizational and procedural level.

GTS has invested in people and infrastructure in order to inform the stakeholders, with particular reference to the customer, relative to the positive impact generated by their choice of intermodal transport. With this objective, as well as communicating in each invoice the amount of CO2 saved, GTS has implemented the periodic report system to measure the external costs and social costs saved by the community thanks to their choice of green transport.

This is GTS 2015 contribution in terms of lower social and environmental costs.


Congestion

-4,498,922 €

Accidents

-431,785 €

Dear partner, displayed amounts represent environmental and social costs saved to the community preferring rail and intermodal transport services instead of road ones, in the period between January and April for a total of 111 loads.

Kg

-91,342,576 Kg

Noise

-612,856 €

Climate change

-3,426,424 €

CO2 saved equivalent to the sequestration capacity of

+456,712 trees

The second study refers to the coefficients calculated, from the European program called “Marco Polo.” This initiative aims to reduce road congestion and improve the environmental performance of the whole transport system by transferring a portion of the road freight traffic to short sea shipping routes, as well as rail and inland navigation.The following are the coefficients described above:

Sector Coefficient1 Externalcosts2

0.035 4.73

0.015 2.00

Delta (2.7)

1 Euro tonnes for km; 2 Values expressed in billion €.

The application of the coefficients just described, clearly expresses what the key environmental contribution of rail transport would generate towards the environment if all the goods travelled by Rail.

-57%Cost saving from the use of intermodal transport in the terms reduction of CO2

This analysis allowed to clearly and unmistakably measure the tangible contribution that GTS, at present time, contributes to the community.The amount of the annual transport totaled 1.23 million tons, which multiplied by the distance covered, reached the total amount of 3.81 billion tonnes / km transported. This means that, by applying the coefficients shown earlier, the social and environmental benefits arising from the quantity of goods transported by rail compared to road transport, over equal distances, amount to 76 million Euros. This value expresses the delta between the environmental and social costs related to road and rail transport.Ultimately it is clearly demonstrated, how the use of intermodal transport in the definition of the transport process has a very positive impact on the social dynamics as a whole, reducing significantly the production of negative externalities. In other words, the economic activity performed by the Group minimizes the production of social costs, as opposed to other forms of transport, particularly the road.

Trasport ReferenceValues

Externalcosts*

Road 0.035 132.9

Rail 0.015 56.9

(75.9)* Value expressed in € millions. -76.0

1.4 The management of sustainability for GTS

Managing sustainability for GTS is based on the full integration of the economic dimension with the social and environmental part. The implementation of a CSR strategy has focused over the previous year:

• the analysis of benchmarking the best habits in relation to sustainability made by other players operating in the logistics and combined transport;

• the preparation of the Group’s first Sustainability Report;• Active communication and negotiation with the stakeholders.

This last activity, started for the first time at the 2014 reporting, it allowed valuable tips to be collected on topics such as: the methods of negotiation and engagement, the topics of interest, cautionary aspects. 80% of the stakeholders considered the best instrument for negotiating to be the focus on the groups dedicated to the shared objectives and business strategies in the sustainability field.

With this input, GTS responded by organizing the first CSR meeting on December 11th, 2015, at the Bari headquarters, an event in which the Group explained the results achieved, as well as the short and long term objectives. The event was attended not only by its customers and suppliers, but also by financial institutions and representatives from local institutions. This event was proposed again in Rotterdam, Netherlands, December 17th, 2015, this time involving client partners and suppliers from the area.

Sustainability for GTS is synonymous of collaborative internal climate and attention to human resources. On that note, one of the Group’s efforts is aimed at ensuring the best working conditions for all employees. And studying the employees work environment more, a special section was devoted.

The document that identifies the strategy adopted by the Group on sustainability outlined in goals and related actions to be implemented, is called the commitments to sustainability document adopted during the previous year and covers a three-year period (2015-2017). The following are the approved actions and targets achieved by December 31st, 2015.

Rotterdam, December 2015.

Bari, December 2015.


Governance, organization and processesHeading aim action

Strengthen the integration of the principles of sustainability in the company’s identity and in business management

internal and external distribution of environmental policy introduced in 2011

Assign a specific delegation regarding sustainability

Business management according to ethical and transparent principles

Establishment of a code of ethics

Definition of standardized procedures, approved by the Board, for the protection from risks and ethical business management

Management and prevention of risks

Adoption of an organizational model in accordance with the requirements of Legislative Decree 231/01

Improve definition of the KPI Process

Strengthen the communication of information ESG (Environmental, Social, Governance) outgoing

Greater alignment with the process standard and the GRI reporting

Affidavit of the sustainability report

Section <sustainability> on the company website

SafetyHeading aim action

Improve the levels of safety in the workplace

Implementation of a safety management system meeting the requirements of OHSAS 18001

Higher standardization of internal procedures currently present

EnvironmentHeading aim action

Improve procedures on environmental management

Implementation of an environmental management system that meets the requirements of ISO 14001: 2004

ClientsHeading aim action

Improve the outgoing flow of information to customers

Communicative format at the time of order confirmation with the amount of CO2 saved

Formalization of the new structure dedicated to customer complaints management

SuppliersHeading aim action

Improve the supplier selection process

Establishment of a list of suppliers where, amongst the requirements, all certificates in the security and environmental sectors are shown.

53%TaRGET

Once again in terms of planning, it should be noted that the GTS Group has been admitted to the Elite program of the Italian Stock Exchange. This initiative is part of the Group’s growth program. The added value expected from this training course aims to broaden the stakeholders, improve communication including financial, strengthen the internationalization project underway and the global leadership. Through the Elite project, GTS intends to strengthen its cultural and organizational growth process, an essential feature in order to bring the Group to large investors and the possible listing. The route taken by the Group is divided into three steps:

The first phase of the path ELITE (November 2015-April 2016) consists in a preparation able to stimulate change, through an innovative approach that involves entrepreneurs, successful managers and experts. This step was divided in eight days organized into four modules, coordinated by the Academy of Italian Stock Exchange and by prestigious Italian universities.In the second phase (September 2016) all the suggestions and guidelines acquired during Get Ready phase will be put into practice. Through a self-assessment test and a subsequent check-up by the Elite team of consultants specialized in the field, GTS will achieve the Quality ELITE certificate that will give GTS access to a selected international community made up of institutional investors, banks, entrepreneurs and management of groups listed.It is estimated to reach this goal by December 31st, 2016.

GET Ready

GETFit

GETValue

Milano, November 2015. Milano, November 2015.

Connected to this reporting process there appears to be the active involvement of various stakeholders, initially interested in understanding in depth the more popular topics as well as the strengthening of collaboration with them.

The stakeholders all have different expectations: the main challenge lies in meeting everyone’s needs even when you are missing the convergence between them. The process of mapping stakeholders in GTS consists of the following stages:

Establishlistening

momentsinsideandoutside

thecorporateperimeter

understandingoftheexpressed

needs

Issuerelatedfeedback

1.5 Our stakeholdersGTS has undertaken the Corporate Sustainability path with a very simple gesture: listening to others. During the month of December 2015, GTS completed the revision of the map of its stakeholders and of the related forms of dialogue, which had begun in the previous year, with the materiality analysis. In that regard it is increasingly more evident that the communication with the stakeholders is an important moment of growth. For this reason, the Group has launched an active dialogue characterized by the following stages:

Identificationoftheactorsinvolved Dividingtheactors

intocategoriesalikeassignapriorityleveltoeach[28] 1.IntroducingtheGroup

Below are the main channels and communicative approaches used with the respective categories of stakeholders, as well as a brief explanation of the topics covered.

STaKEHolDERSappRoaCHanDCommunICaTIonCHannEl

TopICS

Clients

dedicated web portalservice for 24H Booking

ensure a top notch quality service, promptly and efficiently

Suppliers

Mail, dedicated staff, and telephone contacts

establish long-term relationships designed to determine solid synergies

human resources

regular meetings, internet, corporate magazine, Yammer

Improved indoor climate, professional development and continuous learning, meritocracy and delegation

Credit lenders

regular meetings a stable relationship aimed at obtaining the best credit conditions

Regulators

auditing activitiesthroughout the correct bureaucratic exchange gtS ensures compliance and respect to laws and regulations

Selected associations

regular Meetings Stable relationship with the associative and entrepreneurial sides

The stakeholders identified by Group were as follows:

Clients

Credit lenders regulators Selected associations

Suppliers Human resources


The comparison with corporate stakeholders (see analysis of material from the Sustainability Report 2014) has strengthened the Group’s decision-making process by directing them to make some investment choices which covered topics considered material for these same stakeholders, such as:

• the improvement of the indoor climate and the levels of safety in the workplace (OHSAS 18001),

• quality enhancement of rail transport (new investment) and the subsequent monitoring of the produced externalities (enhance-ment process indicators),

• the implementation of an environmental management system (ISO 14001),

• greater control of business risks and Sustainability (institution of the Supervisory Body pursuant to Legislative Decree 231/01).

[ 28 ]

La nostra forza 10 buoni motivi per preferire GTS

Leadership di mercato costruita in 36 anni di attività al servizio dei clienti e dell’ambiente. Serviamo oltre 600 clienti in tutta Europa: grandi multinazionali industriali e distributive e PMI in cerca di una soluzione logistica “green” ed efficiente per trasportare le proprie merci.

Integrazione verticale del processo produttivo. Abbiamo costruito con passione, sacrificio e grandi investimenti un format unico in Europa che consente il controllo delle variabili fondamentali del nostro servizio (materiale rotabile e casse mobili, trazione ferroviaria) per garantire efficienza, competitività e soluzioni green a misura delle necessità del cliente.

Network logistico europeo consolidato ed efficiente. Collegamenti giornalieri per tutta l’Europa da tutta l’Europa senza rotture di carico e con un ampia gamma di servizi: Door to Door, Terminal to Terminal, Door to Terminal, Terminal to Door. Tutto con un unico interlocutore.

Risorse umane motivate, orientate al problem solving, giovani ma esperte. Il vero capitale sociale è rappresentato dalle nostre 120 persone. Età media 37 anni con una quota rosa negli uffici del 55%. Passione, spirito di servizio, competenza guidano il lavoro di squadra con cui ogni giorno ci assicuriamo di consegnare in giro per l’Europa oltre 300 casse mobili. Formazione specialistica, wellness

1

23

4

[ 29 ]

1.6 The materiality analysisTo identify the issues to be reported in the Integrated Annual Report a materiality analysis was conducted with a methodology which complies with the requirements contained in the new GRI G4 guidelines, issued in 2013 by the Global Reporting Initiative (GRI), and in the framework of ‘International Integrated Reporting Committee (IIRC).In 2015 The GTS Group initiated a series of activities involving stakeholders who have consolidated anything previously done in 2014.The group was inspired by the new AA1000SES guidelines, Stakeholder Engagement Standard 2015, applying the principle of materiality required by GRI-G4 guidelines.For the material issues, the Group started from the analysis of relative materiality from 2014, supported by an internal survey, on behalf of the Executive Board, on additional topics to be considered as significant for the impact that they could have on the process of value creation in the short and medium term.From the stakeholders panel (customers, suppliers, employees, regulators, banks and trade associations) a sample of stakeholders was selected. The redemption rate was approximately 70%; with a total n. 120 questionnaires handed out to the Group n. 80 answers were obtained. In this exercise, it is to be specified that, employees were surveyed in the workforce and at the headquarters.Stakeholders included in the analysis of materiality were selected based on: the criteria of influence (which could impact the Group’s decision-making processes), on the strategic importance (representing key stakeholders for corporate strategic choices), and on the proximity (they have established lasting relationship with the Group).

[31]

The data collection was carried out by administrating a questionnaire in which relevant stakeholders were asked to express themselves in the following areas:

• the quality of the 2014 Sustainability Reports (cognitive function, completeness of information, clarity, informational use, layout, the quality of specific informational section of the report)

• level of importance of the selected themes (n. 24 item)• any other topics of interest

The administration of the questionnaires took place both online and later carried out in paper form at the company’s workshop held December 2015.The assessment of each item, on behalf of the stakeholders took place considering the level of importance assigned by the carrier of interest, therefore, it combines the level of attention to the issue with the level of impact that it can have on stakeholder expectations.The materiality matrix below defines the placement of the material issues, according to fields, crossing the different levels of importance assigned to them by the types of issues stakeholders and the company’s organizational structure. The topics listed in the upper right quadrant identify those of greater importance.The analysis identified the material aspects related to both subsidiary GTS GENERAL TRANSPORT SERVICE S.P.A. and GTS RAIL S.P.A. which falls into the Group’s plan of consolidation as of 31 December 2015. The aspects analyzed are obviously impacted even outside of the organization where the Group operates, and in the categories of stakeholders identified, and are relevant to both the intermodal transport and the railway sector.

+ Relevance for the company

Rel

evan

ce fo

r the

sta

keho

lder

-

social economic environment

-

+

Financial / econ. Plan

Transport sustainability

Commercial transportationProfessional growth

Job quality

Research and development

Work – life balance

Reputation

Claims

Training

Net income

Work place health

Services and Post sales

Job Stability

Internal atmosphere

Innovation

Communication quality

Payment duration

Complaints Management

Price

Conformity and service information

Meritocracy and responsibility

Remuneration and benefit

Trasparence

[32]

2. TheeconomicvalueStudying in depth the corporate events and related dynamics with regard to the various economic profiles, asset and financial, represents a key moment in order to appreciate and investigate the working conditions of the enterprise system and the implementation of technical procedures and technical production. The company, a place for production of wealth and value, is also considered in terms of distribution of what has been generated.The wealth produced, in this sense, must be such that you can congruously remunerate all factors of production on the basis of the factors of the competitor in comparison.In this outline mentioned above we need to add the necessity of obtaining the profit, the production of which becomes an essential element in order to maintain the company’s system, strengthening its operating conditions, following a path of growth and development of quality and quantity.Profit isn’t seen as an end result, but as a means withheld and reinvested in the economy of the enterprise in order to establish the necessary vital cycle of productive development. In doing so, improving the balance of the individual profiles, a small cell of the economic system, is a fundamental condition to the macroeconomic dynamics as a whole which are characterized in positive terms.

ThE COmPANY AS ENGINE AND DIFFUSER OF SOCIAL wELL - BEING:

ThIS IS hOw wE CONCEIVE AND LIVE

OUR COmPANY

“” 2.Theeconomicvalue [33]

2.1 The marketThere is no functioning economy, in the modern sense, without adequate transportation and logistic systems, and with this in mind between all types of intermodal transport Rail has a prominent role in the competition with all roads and features a great potential for development. In fact, recent studies have estimated that the current demand for intermodal road-rail transportation services is well below the potential demand. There has always been a large gap between Italy and other countries when talking about freight transport systems, this is due to the dominance of road transport, in spite of the fact that Road Transport has shown more critical issues than other sectors (just think of the high costs, high accident rates and environmental repercussions) with the infrastructure investments on one hand and support policies on the other, the last sixty years been focused on the road transport industry.A contradiction when you consider the unquestionable environmental sustainability of Rail freight transport, along with influential positive externalities on mobility, the cost of fuel and the number of accidents in general. Intermodal transport is the main alternative to the road, but despite recent developments, rail intermodal transport, still has considerable problems that impede the ability to effectively compete fully with the Road transport industry. A number one critical topic of infrastructural nature: when rail infrastructure is insufficient and the market situation makes the lack even more obvious.

[34]

Starting with the domestic market, the trend of Italian goods moved, for the second consecutive year, was characterized, with regard to transport volumes and revenues, gave positive signs for all transport modes, in particular rail cargo, which recorded a growth of + 2.6% as noted in Note Congiunturale of 2015, prepared by the Centre for Studies Confetra. It is therefore clear that the Italian Market has a huge growth potential and when you consider that the rail freight transport still holds a minority share of traffic in comparison to the other modes: it is estimated that it will reach a value not greater than 6% in Italy and at the European level the figure stands at an altitude that varies between 12% and 18% (in countries “virtuous” like Austria it even exceeds 30% - EURISPES).

Supporting the potential for growth in freight transport, alternative to road, consideration has been taken for the potential flow of goods along the Italian dorsal and the Tyrrhenian and Adriatic coasts.

adriaticcoastTons/year: 5,049,447north - South: 2,647,781South - north: 2,401

TyrrheniancoastTons/year: 4,286,747north - South: 2,624,082South - north: 1,662,665

Barimarcianise

Pomezia

Roma

Piacenzamilano

2.Theeconomicvalue [35]

What’s even more relevant, is the attention paid by many countries towards the railway transport capacity, particularly in Switzerland, where transport from road freight traffic to rail is one of the main goals of their transport policy. Approving the article on the protection of the Alps (art. 84 of the Federal Constitution), the Swiss have clearly expressed the will to transfer as much as possible especially the heavy goods being transferred through the Alps, from road to rail. The Data concerning the main relationships between countries of origin and destination in transalpine freight traffic is very interesting, where the main flow of goods across the Alps leaving from Italy and heading up to Germany (37.8%), Benelux (29.1%), followed at a distance are the goods travelling between northern Switzerland and Italy (12.2%).

TransalpinefreighttrafficFlow of goods of important relation between source and destination countries (2014)

Other relationship

Scandinavia-Italy

Great Britain / Ireland-Italy

France-Italy

Switzerland-Northern Italy

The Benelux countries-Italy

Germany-Italy

0 2 4 6 8 10 12 14 16Mio. t

4,64

0,49

1,07

1,91

4,71

11,26

14,64

[36] 2.Theeconomicvalue

14,64

The transportation of goods by rail remains the most efficient overland mode from an energy point of view as well as being the safest mode of transport integrating itself more and more with the productivity of many sectors of the economy through competition, which ensures simultaneously efficiency and innovation thus the consumer benefits.Therefore the undoubted potential of the sector that GTS acts in as a key player on the North southern Europe is worth almost 50% of the total freight traffic.

36%

WEST AXIS

Axis weight(% Flows)

NORTH-SOUTH AXIS EAST AXIS

47% 17%

The north-south axis is strategic: it is about 50% of total flows of rail traffic

Source: ISTAT 2013 - the Inter-trade route by rail and tire from Italy with other European countries, obtained as the sum of imports and exports in volume.


Another interesting note is that the total internal annual volume transported (Italy-Italy) in iron in the year 2015 amounted to 10.15 billion tons / km (+0.5 vs 2014), while abroad towards Italy (abroad -Italy) 6.25 billion tons / km (+1.4 vs 2010) and Italy towards Abroad (I - A) 4.1 billion tons / km (+0.5 vs 2014).The result in the global growth of rail freight amounted to +2.0 billion tonnes / kilometer.

National and international traffic, inbound and outbound of goods by railway expressed in billion tonne-kilometers (t-km)

Transportofgoodsperroutedifference%

2013 2014 2015

I-I -1.9 -0.7 0.5

E-I -3.8 -0.9 1.6

I-E -1.4 1.2 0.5

Total -2.5 -0.3 1.0

Confcommercio Studies Office calculations based on Eurostat data, Istat, National Account of Infrastructure and Transport Source: Eurostat

Explanatory that CONFETRA in its Economic note on domestic transport published in February 2016; during the period from January to December 2015, in relation to goods transported in Italy, which records the resumption of rail cargo with a + 2.5% of trains / km more than in 2014. Increased mainly due to significant growth in rail carriers (+ 10% of trains / km compared to 2014) different from Trenitalia that continue to gain market share.

Always supported by the various industry benchmarks GTS continues to be firmly convinced that the train has an important future and represents the optimum and most effective response to the change of mode of transportation, thus transferring all the goods transferred over long distance, from road to rail .The rail mode continues to consume a fraction of energy compared to the road, but still has huge potential for improvement. With suitable infrastructure, and main tunnels, trains will have the same energy consumption but will transport 50% more goods.In Italy still over 94% of goods are transported by road. Major industries such as retail, with consumer goods, continue to show up to invest in intermodal transport. These customers are showing sensitivity towards reducing polluting emissions and are looking for alternative models to “all road” in compliance with an increasingly eco-compatible and environmentally friendly approach.The goal is to shift the hundreds of thousands of road transported goods onto the railways, both in Italy and abroad with enormous

AN ExAmPLE: A SINGLE

FREIGhT TRAIN IS EqUIVALENT TO

ABOUT 40 TRUCKS OFF ThE ROADS.


development potential; it is estimated, in fact, that more than 450,000 loading units could no longer travel by road but by rail. GTS firmly believes in the tremendous potential that the railway could actively give, contributing in competitiveness and sustainability, that is now needed to meet the challenges of a globalized market.The goal is still to continue to move the land transport while doubling the current share of the intermodal transport market.A reachable goal: GTS is working to achieve these goals with team spirit, sense of responsibility and passion!

1

40


2.2 Freight and passengers transport

As for the Group’s railway division, there are many similarities between goods and passengers. In fact, the GTS RAIL S.P.A. was created with the specific goal to enter also into this market. Liberalization, from a regulatory point of view, has made great strides boasting throughout Europe, especially in freight transport. As far as passengers are concerned, this route was slower but we can say that today it is flat operating. Unlike other EU countries, where the train is seen as a formidable asset to close the gap not only physical but also economical and cultural, in Italy it has become “the topic”.The high public debt and spending cuts have inevitably affected the subsidized sectors of mobility, including, of course, the railways.Long-distance and regional transport links have become a privilege of few regions (richer ones) at the expense of many regions of the country. Obsolete and poorly maintained rolling stock material has fueled a general feeling of “abandonment” of certain geographic areas who feel discriminated against for this. The train has therefore become territorial discrimination flag recalled whenever you want to emphasize the differences in treatment for the citizens.If abroad, you can go in 2 hours 30 minutes from Paris to London, while in Italy to go from Bari to Rome it takes more than 4 ½ hours, on trains that are everything but modern.

preciso di entrare anche in questo mercato.

mobilità, tra cui, come è ovvio, le ferrovie.

appannaggio di poche regioni (ricche) a discapito di molte aree del Paese.

sentono per questo discriminate.Il treno è diventato pertanto bandiera di discriminazione territoriale

Italia per andare da Bari a Roma servono più di 4 ore e mezza, con treni

A livello regionale le varie ferrovie concesse, sussidiate dalle regioni, stanno seguendo la stessa sorte dell’incumbent nazionale. Meno risorse

GTS RAIL e il trasporto passeggeri


preciso di entrare anche in questo mercato.

mobilità, tra cui, come è ovvio, le ferrovie.

appannaggio di poche regioni (ricche) a discapito di molte aree del Paese.

sentono per questo discriminate.Il treno è diventato pertanto bandiera di discriminazione territoriale

Italia per andare da Bari a Roma servono più di 4 ore e mezza, con treni

A livello regionale le varie ferrovie concesse, sussidiate dalle regioni, stanno seguendo la stessa sorte dell’incumbent nazionale. Meno risorse

GTS RAIL e il trasporto passeggeri

GTS comes witha fundamental competitive advantage:its structure is 80%ready to be adaptedto passengerstransport.

At the regional level the various railways granted, subsidized by the regions, are following the same fate as national incumbent. Less resources equals cuts, and therefore less services to citizens. We are therefore witnessing the unraveling of a past highly subsidized sector, which now opens very large spaces for private companies, which will impose a logic of efficiency and quality. The users are just waiting to sponsor an independent brand that proves that citizens deserve better. GTS RAIL S.P.A. comes with a key competitive advantage: its structure is already suitable for a good 80% for the transport of passenger trains. Just think about the facts, the drivers, the training facility, the safety management systems and the operating rooms. We Just turn the key and wait for the station master to blow his whistle, and we’re on track!


Millions Euros

Year 2004

80.0

2005 2006 2007 2008 2009 2010 2011 2012 2013

70.0

60.0

50.0

40.0

30.0

20.0

10.0

Turnover evolution

[ 11 ]

La sostenibilità ambientale da slogan di marketing si è radicata nella coscienza collettiva orientando le aziende di produzione/distribuzione nel B2C ad adeguarsi, scegliendo il trasporto intermodale per non rischiare l’abbondono da parte dei consumatori di quelle marche. Oramai ogni attività deve essere interpretata in chiave “green”.La stessa Comunità Europea ha imposto obiettivi precisi di shift modale verso la ferrovia che nel 2030 deve rappresentare almeno il 30% (nel 2014 in Europa siamo al 12,5%).Il percorso è ancora lungo ma la strada imboccata è oramai senza ritorno.Da quel dì del 1977 di treni ne partono ad oggi più di 3.000 all’anno, e molti sono trainati dall’impresa ferroviaria del Gruppo.La visione era quella giusta, il presente lo dimostra, ma il futuro ce ne dà la certezza.

2015 2014

72.7

77.8

71.6

70.6

61.3

49.5

42.6 47.6

40.4

35.8

24.0

20.8

CAGR12.7%

2.3 The management performanceThe past year also recorded a net profit of 3.1 million euro, with a profit before tax of 4.1 million euro. The GTS turnover appears to be properly divided over the portfolios with some special concentration on individual multinational clients.The increase compared to the previous year was even more noticeable in its qualitative composition, as generated by the positive change of intermodal traffic.The following is a breakdown of revenues, at the reporting date classified by type of activities carried out:

TypEoFaCTIVITIES* 2015 2014 Delta

revenues from transport services 77,831 72,620 5,211

rental of rail material 79 308 (229)

rail transport services and accessories 1,263 95 1,168

other revenues 455 393 61

Total 79,629 73,417 6,212* Values expressed in thousands €.

Incomebeforetaxes

5.5%ofsales

Millions Euros

Year 2004

80.0

2005 2006 2007 2008 2009 2010 2011 2012 2013

70.0

60.0

50.0

40.0

30.0

20.0

10.0

Turnover evolution

[ 11 ]

La sostenibilità ambientale da slogan di marketing si è radicata nella coscienza collettiva orientando le aziende di produzione/distribuzione nel B2C ad adeguarsi, scegliendo il trasporto intermodale per non rischiare l’abbondono da parte dei consumatori di quelle marche. Oramai ogni attività deve essere interpretata in chiave “green”.La stessa Comunità Europea ha imposto obiettivi precisi di shift modale verso la ferrovia che nel 2030 deve rappresentare almeno il 30% (nel 2014 in Europa siamo al 12,5%).Il percorso è ancora lungo ma la strada imboccata è oramai senza ritorno.Da quel dì del 1977 di treni ne partono ad oggi più di 3.000 all’anno, e molti sono trainati dall’impresa ferroviaria del Gruppo.La visione era quella giusta, il presente lo dimostra, ma il futuro ce ne dà la certezza.

2015 2014

72.7

77.8

71.6

70.6

61.3

49.5

42.6 47.6

40.4

35.8

24.0

20.8

CAGR12.7%

The following is the reclassified income statement of Added value;

REClaSSIFIEDaDDEDValuE 2015 % 2014 %

Valueofproduction* 79,629 73,417

production costs (64,198) -80.6% (60,002) -81.6%

Value added 15,431 19.4% 13,414 18.4%

personnel costs (7,559) -9.5% (7,008) -9.3%

operatingmargin(EBITDa) 7,872 9.9% 6,407 9.0%

amortization and depreciations (3,319) -4.2% (2,720) -3.6%

operatingprofit 4,552 5.7% 3,687 5.5%

Financial results (227) -0.3% (259) -0.3%

other non-operating results 69 0.1% 40 -0.2%

Incomebeforeincometaxes 4,394 5.5% 3,469 5.0%

Income taxes (1,272) 2.0% (996) 2.5%

netincome/(loss) 3,122 3.9% 2,473 2.9%*: The general balancesheet Class does not take into account the amount of contributions for operating expenses exposed as a correction between the cost of services.

The analysis of the reclassified balance sheet for liquidity, demonstrates the Group’s strategic decision-oriented investment and growth.

BalanCESHEET 2015 % 2014 %

WoRKInGCapITal 31,316 45.5% 30,040 43.7%

Cash 3,163 4.6% 723 1.1%

Cash and cash equivalents 3,163 4.6% 723 1.1%

otherliquidassets 28,153 40.9% 29,317 47.1%

Short-term receivables 27,061 39.3% 27,616 44.3%

Short-term investments - - 487 0.7%

prepayments and accrued income 1,007 1.4% 1,213 1.9%

Inventory 86 0.1% - -

FIXEDaSSETS 37,432 54.4% 32,170 51.7%

Intangible assets 636 0.9% 814 1.3%

tangible assets 36,421 52.9% 29,149 46.8%

Financial assets 375 0.5% 432 0.6%

Medium and long-term receivables - - 1,126 1.8%

pre-payments for assets - - 650 1.0%

ToTalaSSETS 68,748 100.0% 62,210 100.0%


The increase in cash simultaneously of contractions of short-bank exposures, enables the substantial balance of the payment terms of suppliers. The positive value of networking capital ensures the hedging of exposure in the short term for the Group.

ConSolIDaTEDBalanCESHEET 2015 % 2014 %

lIaBIlITIES 53,149 68.7% 49,733 79.9%

Currentliabilities 28,034 40.7% 27,258 43.8%

Short-term debts and overdrafts 25,914 37.6% 25,138 40.4%

accrued expenses and deferred income 2,120 3.0% 2,120 3.4%

non-currentliabilities 25,115 36.5% 22,475 36.1%

Medium and long-term debts 18,434 26.8% 14,937 24.0%

other liabilities 3,296 4.7% 3,190 5.1%

termination indennity 1,351 1.9% 1,241 2.0%Medium and long-term portions of accrued expenses and deferred income 2,034 2.9% 3,106 4.9%

EQuITy 15,599 22.6% 12,477 20.0%

Share capital 891 1.3% 891 1.4%

reserves 3,976 5.7% 2,700 4.3%

net income/(loss) 3,122 4.5% 2,473 3.9%

Consolidation reserves 1,756 2.5% 1,756 2.8%

non-controlling interest 5,854 8.5% 4,657 7.4%

lIaBIlITIESanDEQuITy 68,748 100.0% 62,210 100.0%

netfinancialpositionoftheGroup

2015 2014 Delta

Cash 3,163 723 2,440

Currentfinancialreceivables - 487 (487)

part of short-term financial investments - 487 (487)

Short-termfinancialdebts (4,442) (5,164) 722

Bank overdrafts and advances on invoices (510) (2,006) 1,496

Short-term part of long-term debts (1,534) (1,293) (241)

Short-term debts for leasing (2,398) (1,864) (534)

Short-termfinancialposition (1,278) (3,953) 2,675

mediumandlong-termfinancialdebts (18,434) (14,937) (3,497)

loans from banks (4,727) (4,739) 12

long-term debts for leasing (13,707) (10,199) (3,508)

netlong-termfinancialposition (18,434) (14,937) (3,497)

ToTalFInanCIalpoSITIon (19,712) (18,891) (822)


The correlation between all the sources of medium / long term financing and the part of the company’s assets is likely to continue for several production cycles, represented by the margin of the second degree structure, ensuring the funding of working capital. The positive net working capital, guarantees coverage of short-term exposure of the Group.The ability to tap into funding sources at a lower cost compared to the return on capital invested, allows a benefit from the effect of leverage. The GTS Group has credit lines granted to more than 8 million Euros used for only 510,000 Euros.

2.4 The main financial ratiosThe definition of a system of indicators is needed in order to be able to express, in a synthetic key, the company’s ability to operate properly under different aspects which manifest the activity of management. Consequently, this proceeded to the identification and enhancement of a set of indicators that can operationally illustrate the reflections just conducted in economic and financial terms.The 2015 Fiscal year results demonstrate the Group’s commitment to continued growth. In particular, it is observed, the confirmation of the constant attention of the shareholders and to the dynamics of the individual components, the equity increase of the share capital followed by the transition to the latter part of the retained earnings previously achieved.

InDEX 2015 2014

roe (return on equity) 25.02% 24.72%

roI (return on investment) 6.62% 6.80%

roS (return on sales) 5.7% 5.5%

rate of equity growth 25%

average collection days 102 105

average days of payment 85 85

assets growth rate 10.7%


The determination of ROE highlights the level of compensation on equity achieved by the Group, by comparing the profit size with the size of the risk capital. ROI allows you to analyze the profitability of business investments, relating the operating income to total business engaged in business management. With reference to ROS, the same measures the affordability of sales, accordingly and consequently the efficiency level of income management, depending on the ability to define selling prices profitability of production costs.The growth rate of assets and the growth rate of net assets possible to assess the ability of dimensional and operational growth in development paths.

2.5 The added value of the product and its distributionThe way of exposure and the consequent income statement for chosen configuration allows you to appreciate, together with the wealth generated by the production process, the distribution phase of such value. In relation to this, highlighting the great added value allows us to read an enlarged size of the company’s results, intercepting a wider observation angle where the company is seen as an entity in which converges the interests of most social partners (shareholders, employees, external funders, public administration and the community of reference). Ultimately, the added value obtained from the difference between the volume of production and external costs of production, factors not related to work, capital factor and the technical factor, facilitates the analysis of the distribution process of the wealth produced by the social partners

[46]

involved. Below you’ll find the statement of determination of the distinct added value for the referred stakeholders. From an analysis of this reclassification emerges strong and clear, the Group’s growth trend which continues to invest much of the economic value generated.It should be noted, in particular, as in the comparison between 2014 and 2015 the distribution of added value has remained fairly constant for the company stakeholders, while it increased for shareholders (+ 2.7%) and for the State (+0.6%). The reduction in terms of incidence of the cost of capital to minority interests (-0.4%) confirms the improvement trend.

DaTa 2015 2014 Delta Delta%

Value of production 79,629 73,416 6,213 8.5%

external operating costs 64,038 59,927 4,111 6.9%

positive outcomes 15,591 13,489 2,102 15.6%

employees remuneration 7,559 7,008 551 7.9%

remuneration of debt capital 523 454 69 15.2%

remuneration of public administration 1,272 995 277 27.8%

risk return on capital 3,122 2,472 650 26.3%

remuneration of the company (amortization and provisions) 2,563 2,155 408 18.9%

* Values expressed in thousands.

2014

2015

REmUNERATION OF RISK CAPITAL 24%I 21.3%I

REmUNERATION OF PUBLIC ADmINISTRATION 8%I 7.4%I

REmUNERATIONOF LOCAL CAPITAL 3%I 3.4%I

REmUNERATIONOF ThE COmPANY

16%I 16%I

REmUNERATIONOF EmPLOYEES

48%I 52%I


2.6 InvestmentsThe following table shows the summarized information on the main investments made during the year

Increases for the year mainly refer to the purchase of n. 27 railway wagons and additional n. 100 containers for transporting goods.The investment in these assets reveals a strategic choice of the shareholders to continue along the path of Group growth with the full knowledge and willingness to positively meet the challenges arising from the market.It also noted the completion during 2015 of the additional purchase contract No. 3 locomotives for railway traction that will join the fleet of the Group during the second half of 2016.The analysis green for these investments is the subject of description in section 4.5 entitled “Environmental investments.”

Increase of materialassets in 2015

9.5million euros

[48]

2.7 Business risksGTS considers it’s reputation to be a strategic factor for competitive advantage. To this end, the Group has adopted a risk management policy aimed at:

• identifying the main areas from which events may arise that could affect the relationship of trust established with customers;

• defining the guidelines of risk control both through the analysis of the application of the redigenda policy, or through monitoring third party involvement.

The following areas are among the main areas of risk:

• Corporate Governance,• the behavior of the staff,• transportation of dangerous goods,• the environment.

To oversee these areas of risk, the Group companies have launched, in line with what is defined within the Charter of the commitments, the adoption of an organizational model pursuant to Legislative Decree 231/01 aimed at defining rules and procedures to prevent commission of the offenses provided for in the decree. GTS RAIL S.P.A. adopted the Organizational Model in question and the related Supervisory Board on the 29th September, 2015.This collective body took steps in April an email address where even anonymous reports could be sent. On 31 December 2015, we note the absence of any conduct or reports relating to unethical or illegal events.


3. ThesocialvalueA management model marked on its corporate social responsibility is characterized by the centrality of its relationship with stakeholders, by the principles of continuous improvement and innovation. The above shows very clearly that CSR goes beyond simple declarations of communication strategies, qualifying it as a management concept, governance, integrated into strategies, plans and programs based on the specificities of each company. To sum it up, if the company’s ultimate goal is to create value, the underlying processes must be sustainable, or durable as far as being able to engage and reward the various stakeholders, which provide functional resources to long-term success of the organization. These processes should enhance and consolidate relations, therefore ensuring sustainability.

3.1 Human resourcesPreparation, professionalism, ethics and motivating people are decisive variables to approach the market and competitive challenges, in the interest of the customers and all other stakeholders. The Company is continuously guided by principles of conduct such as “the human factor”, knowing completely that entrepreneurial action is based on economic principles which, obviously, cannot be ignored. The life of an enterprise is determined by the people. The realization of the objectives depends on their level of involvement and their capacity. When the individuals’ activity is in harmony with that of others their interests converge towards the superior general interest of the company. The GTS Group focuses on its management policy and not only that, but also the people subject to their own

[50]

organizational structure. This attention is spent on the continuous search for the best standards such as:

• Care for the workplace environment, the place that has always been appointed to transfer the company’s values

• selection procedures and training of personnel to ensure high professional standards

• The consolidation of relationships with universities and colleges especially in the areas of both personnel training courses and specific projects

The GTS Group’s total workforce consists of 132 employees. The increase in the number of human resources compared to December 31st, 2014, was determined not only by the increase in sales volume, but also by the need to equip GTS with specific key figures. The particular historical moment that the international economy is experiencing, suggests that GTS Group adopts a multifaceted figure in the management of credit risk that contributes, with appropriate expertise, to the preservation and to the growth of corporate profit.In this figure, the company intends to delegate the selection of customers, the management of the current credit or better the recovery, out of court under the supervision and coordination of the Administrative and Financial Manager.It is also noted that there has been an addition to the organizational structure of the GTS Group, as sustainability manager dedicated to the three main stream areas: quality, safety and environment. The core of these issues is reflected in the choice objective, strongly supported by the Group’s CEO, who wants to direct the business so that the definition of Corporate Strategy is taken into account, not only the profit targets and service quality, but also those intangible elements desired and appreciated by stakeholders ranging from environmental protection responsibilities towards the company as a whole.

StaffComposition men Women Total

Manager 2 – 2

Middle Managers 4 5 9

Office Workers 32 15 47

Train drivers and rail operators 48 – 48

Drivers 17 1 18

Laborers 8 – 8

Total 111 21 132

34%of employeesis in line with the gender policies

3.Thesocialvalue [51]

The ability to select and retain new resources within the company, is also aimed at ensuring the proper downsizing, reducing overtime and minimizing the possibility that fatigue impacts the safety and inevitably Affecting the accident rates. GTS resorts to overtime to meet temporary peaks of activity. Such work is accomplished on a voluntary basis. The company pays any overtime according to the scale provided by the National Collective Bargaining Agreement, constantly monitoring the evolution and impact.

2015 2014 Delta

numberHR 132 126 +4.7%

regular working hours* 276 253 +9.1%

% overtime 4.6% 5.2% -0.6%


The following table shows the main information about the hires made over the course of 2015.

Hiresfortheperiod men Women Total

administrative staff 8 1 9

train drivers and rail operators 7 – 7

Total 15 1 16

The newly exposed data shows both the attention given to the needs coming from the implementation of the technical production process, as well as the importance given to the organizational and administrative dimension to support the production circuit. Turns out to be interesting, also, the analysis of the evolutionary dynamics of the personal component related to age categories identified below.

Employeesaccordingtoage men Women Total

under 30 years 3 – 3

From 31 – 40 years 8 1 9

From 41 – 50 years 2 – 2

over 51 years 2 – 2

Total 15 1 16

Recruitmentaccordingtoagefor2015 men Women Total

under 25 years 5 – 5

From 26 – 30 years 16 1 17

From 31 – 40 years 48 10 58

From 41 – 50 years 25 7 32

over 51 years 17 3 20

Total 111 21 132

Average age of personnel

37years

+4.7%human resources compared to 2014

GTS aims to build long-term lasting relationships over time. The Group grows with the absolute awareness that stable relationships allow the employee to devote himself to work in the most serene way and fully invest their skills and their commitment to the company.The people who work for the Group are almost all entirely subordinate employees and the collaboration agreements seem to be quite marginal.

Employeeswithtemporarycontracts men Women Total

drivers 1 – 1

train drivers and rail operators 2 – 2

laborers 8 1 9

Total 11 1 12

number of employees with permanent contracts 100 20 120

ToTalEmployees 111 21 132

Only 9% of human resources lends his work under a temporary contract.

levelofEducation men Women Total

degree 12 10 22

diploma 70 12 82

other 27 1 28

Total 109 23 132

Thanks to the constant strategies of highly specific skills research, GTS was confirmed once again in 2015, as rich with distinctive professionalism.

91%of the contracts are permanent employment contracts

TrainingThe growing competition and scenery complexity in which GTS is measured daily, significantly influence the quality in work requirements and, therefore, the necessary training initiatives. The model introduced by GTS, consistent with this context, gives great importance to factors such as: entrepreneurship, strategic vision, ability to involve others and to manage change, flexibility of thought and action, a very ethical approach.In this case, training is the main tool to develop good behavior and further the implementation of the leadership in everyday actions. Training initiatives are differentiated according to the needs and are aimed at different targets, from the youngest in the beginning stages to the more senior profiles, which possess a valuable “critical know-how” in which the company does not intend to give up. The constant attention to growth also depends on a targeted training action which, on one hand, further boosts the skills of its human capital and, on the other hand, introduces custom development paths.

TypeofCourses n.Courses n.days n.hoursofTraining

Courses for acquiring skills /railway qualifications 17 211 1,688

Vocational training courses 23 34 272

professional training courses 3 27 216

Total 43 272 2,176

Training in a field such as rail transport acquires, however, a now growing importance in the light of continual updates that are continuing at the regulatory level. Training has become a necessity, and in this perspective GTS RAIL S.P.A. was able to transform a constraint into an opportunity in a competitive sense.The educational structure of GTS RAIL S.P.A. is made up of the following professionals:• Training Coordinator, who’s task is to program the training acti-

vities and coordinate the activities of the teaching staff.• Certified Instructors (teaching staff), professional staff accor-

ding to ANSF (Agenzia Nazionale per la Sicurezza delle Ferrovie - National Agency of Railway Safety) legislation, in charge of trai-ning and monitoring the performance of staff involved in tasks relating to railway safety.

• Safety Consultants (for the safety of dangerous goods), person-nel in possession of a vocational training certificate issued by the Ministry of Infrastructure and Transport.

Fotolia © Dmitry Goygel-Sokol

+20%days

of training compared

to 2014

[54] 3.Thesocialvalue

Health and SafetyThe health and safety of its employees are of strategic importance for GTS; such attention is confirmed by the huge investments that the Group has maintained for a long time but above all in the reports of the two materiality analysis’ conducted in 2014 and 2015. In fact, the transition from 2014 to 2015 shows that the level of materiality of the topic has gained importance not only for management, but also for stakeholders, especially employees. To ensure the highest standards of safety for operators, the Group companies are constantly trying to find and adopt, through organizational and management measures, the continued alignment with new technologies, the creation of personal protective equipment, and the development of related training courses.The Group’s policy on health and safety has inspired constant and continuous actions to improve the health management system and safety at work. In 2015, GTS RAIL S.P.A. achieved the OHSAS 18001 quality certification (Occupational Health and Safety Assessment Series). This certification attests to the voluntary application, within an organization, of a system that allows to ensure adequate control on safety and health of workers, in addition to compliance with the mandatory standards.

It is the will of the Corporate Property to adopt an integrated quality management system, occupational health and safety in order to extend this awareness level of the issue to the whole enterprise perimeter. This aspect is, however, confirmed by the paper of commitments 2015 - 2017 (the security field) where one of the objectives include the extension of this system within the Group.

The large number of accidents at work, confirms the low level of interest shown.

numberofaccidentsatwork 2015 2014 Delta%

drivers 1 4 -75%

train drivers and rail operators 1 6 -83%

Total 2 10 -80%

Sick days for recovery 22 243 -91%

The Group’s recorded indexes are higher in areas where the risk of exposure to injury is higher. The cause analysis shows that almost all accidents refer to general inattention on behalf of handling staff.

• WorkSafetyawareness

• spreadworksafetyawarenessinallbusinessactivities

• raiseawarenessoftheriskspresentintheworkplaceandtheabilitytoidentifyandreportthem

• facilitatesafebehaviorthroughfunctionalintegrationof the concepts of health and safety in all tasksperformedatwork

• useofsafelyequipment.

Health for GTS means psycho-physical well-being. With the intention of improving the quality and experience of the working environment, which was renovated in 2015, the project was called GTSENTE, the project designed to define business practices

The projectThe vision of this creation took place within the company, we’re talking about a space where the Facilitator, in certain days and hours established, will become available to listening, in individual form, to all the employees. This is a health promotion service intended in the broadest sense, that gives the World Health Organization: physical, mental, social and relational, prevention goals of discomfort and deviance, as well as education in the management of an individual’s mental equilibrium respecting their own individuality. The presence of such a figure in the company is a sign of attention to the welfare of their employees.Also, taking note of a signal the employees gave during the first survey in 2014 about the issue, the Group launched a second project called “Skills and Skin – Knowing, knowing how to do, and knowing how to


be” edited by a Life & Business Coaching industry professional. A 20 hour session in which issues in relation to improving of the internal conflict, cooperation, teamwork, negotiation and motivation were developed.THINK BOLD: excellence in customer management, is the third project activated during the financial year of similar duration, aimed at improving interpersonal relationships and problem solving skills. At corporate wellness, intended as the psychological well-being of its employees,there is a Ju-Jitsu course, the ancient Japanese martial art that combines high spirituality with excellent self-defense bases. It was noted there was the high degree of participation in the sessions organized in 2014, GTS has also renewed these weekly appointments for another year.

With this initiative, we have been added, by the request of the employees, a “cross fit” course taught by a competent and qualified instructor. This course takes place at different times in the schedule. It is personal fitness services useful to the athlete to master the ten fundamental points of fitness:

The need to create a cooperative atmosphere, a serene working environment, the firm conviction that making healthy team building means efficient work, and this often leads to organizing tournaments that will also provide recognition of awards.The well-being of employees are also shown through the organization of two annual recreational events which have become “a must”: the summer Party and the Christmas party. Both events are open to extended family, friends, customers, partners and suppliers of the Group. Also this year GTS did not fail to include the employees’ children, many moments of fun entertainment, even the organization of small animated performances which involved storytellers and funny entertainers.From the partnership between a major international financial institution and GTS another project was born on Educating, it focuses on the Daily issues of economic and financial matrix. This initiative stems from the belief that the bank should exercise their social role to bridge the information gap in the bank-customer relationship. The issues related to supplementary pensions and long-term finance or investment forms, have been studied in depth,: a three-day training program where all participants were provided with the possibility to choose responsibly because understanding makes doing easier.The adequacy and the quality of personnel management policies Is the direct evidence that there are no complaints or disputes about labor.

• Cardio respiratory endurance• Muscular endurance• Strength• Flexibility• Speed

• Coordination• Agility• Equilibrium• Precision

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CommunicationIn the integrated growth of the GTS group communication a part of the foundation on which the relationships with all stakeholders are built. Employees, suppliers, partners and customers are a real strategic asset to the company and, as such, the Group’s evolution has taken place alongside the evolution of the communication tools and processes seeking the common goal of a harmonious and sustainable development. The technology in this process of growth is a key enabler which has allowed in few years to pursue national and international avant-garde achievements.Currently, the company develops its physical and digital identity, internal and external identity through multilingual web portals, compatible with Smart phones and tablets, social public and business networks, mobile apps, platforms for real-time collaboration and team-management and a monthly magazine, all of which use a strong identity and corporate image.This year the customer service desk, now has a new application that goes in the direction of making the most of timely and efficient services offered to our customers. It is the instant messaging service with a dedicated intermodal operator: this simple tool is a new element within all the tools made available by GTS to communicate and act on in a rapid and timely service.

WEB SITES

MOBILEAPPS

REAL TIMECOLLABORATION

PLATFORMS

SOCIAL NETWORKS

Web site

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Facebook2.087

Analyzing the concrete tools used:

• web site (gtslogistic.com; gtstrasporti.it) – multi-language portals developed with the mobile-first technologies that offer an overview of information and data on the various Group companies;

• social networks – company oversight of exchange sites and the network relationships in which the GTS brand develops its community activities and strengthens influencers;

• mobile apps – applications that enable streamlined and flexible communication with stakeholders, targeted notifications and system monitoring in real-time;

• real-time collaboration platforms – team management tools, task monitoring and real cloud work space that facilitate the pursuit of business objectives on behalf of all business areas.

The work on the digital front is characterized by an engaging approach; the marketing and communication area, has recently been the subject of a genuine revolution, together with that of IT they are constantly engaged in research, development and implementation of highly innovative solutions.Internet of things, big data, virtual reality and machine learning are the main themes on which the GTS group has currently focused its development activities.

3.2 Our ClientsThe GTS’s commitment towards a continuous innovation of its services with the ultimate aim to respond promptly and more effectively to customer’s expectations. Relationship consolidation is the Group’s key objective, that the company is at the center of all activities from the beginning of the customer’s request until after the sale. For GTS an essential condition for the prosperity of the company in the long term is the ongoing commitment to meet or exceed customer expectations, both current, and potential.Customers, like the employees, are the primary stakeholders and this is the reason that the Group puts in place the solutions that will enable them to serve at best, to build day after day, a quality relationship based on trust, dialogue and transparency.

2015 2014 Delta%

distance travelled in train (Km) 3,090,834 2,511,783 +23%

Sales to Italian Customers* 36,7 36,5 +0.5%

Sales to european Customers* 38,5 32,4 18.8%

Sales to customers outside of the eeC* 4,3 4,4 -2.2%


+2.7%client served

2014746

2015766

Linkedin809

Twitter549


The figures shown represent the evolution of a customer portfolio which recorded an increase of about 3% in a historical moment in which a good part of trend data confirm the numbers of the previous year or a reverse trend.GTS provides its services to customers operating in different sectors.

The effort made in recent years, aimed at obtaining the best level of satisfaction for the referred customers, has enabled the Group to operate in different sectors indiscriminately, trying to ensure that for everyone the same quality standards are met.The Group’s market of reference is represented by the entire European area. Of the 28 member states, over 20 have been served to which Turkey and Switzerland can be added.

48%Food

& Beverage

6%Technology

3%Other

27%home &

body care

4%waste transport and

dangerous goods12%Industrial

Customer SelectionThe growth trend for the number of clients in addition to witnessing a growing openness of the Group into new markets, promotes a lower risk of uncollectible credit. However, At the same time, this expansion requires a greater effort to carefully monitor every single credit rating. The punctual assessment and safety of the customer’s solvency level is ensured by daily monitoring of credit exposures, the internal credit management, and the direct relationship with customers. To this end, GTS has enhanced the area in defense of this risk in order to reduce the average time of collecting compensation. The collaboration with a leading company outside of the financial sector has been confirmed again for 2015, GTS has entered into a contract, relative to the amount of receivable insurance, with this company.The ambitious objective of the Group is headed in the direction of creating a unique quality system, the ultimate goal is to ensure a common language with the customer aimed at maximizing the service provided by GTS in terms of perceived quality, guaranteed reliability and performance delivered.

Customer satisfaction and related complaints

2015 2014 2013

number of Complaints 46 72 43

number of containers handled 69,277 59,665 57,276

% of complaints 0.06% 0.12% 0.08%

Fotolia Ewe Degiampietro

-36%complaints compared to 2014

[61]

The audit work from some international customers enabled the Group to evaluate areas for improvement. It was, in fact, shared with a major customer, the need to equip even GTS RAIL SpA with a structure dedicated to customer complaints management. This structure will allow you to monitor any differences in terms of services rendered. The Group firmly believes that a customer satisfaction monitoring system through the establishment of procedures and the identification of resources dedicated to the quality of service could be an important element of observation for continuous improvement.It is confirmed that, even in 2015, there were no recorded complaints or claims for damages arising from prejudicial conduct or for the right to privacy or the disclosure of personal data.

Participation in events and trade fairsGTS for the third time, took part in the international logistics, mobility and supply chain management fair organized in Munich (Germany) in May 2015. In that circumstance the group was exposed to over 50,000 visitors from and within the said sectors. Thanks to the B2B business meetings organized, GTS gathered the interest of diverse companies interested in establishing rapports with the company of the Group.

Fotolia © Balloge

Munich 2015.

3.3 Suppliers and partnersGTS is aware of being part of a larger system, which involves a range of subjects with the aim of creating long-term value, through respect for legality, integrity, fairness, transparency and dignity of the people. The Group’s suppliers are an integral part of this system and are based on transparency and respect for these principles in their relations. Thanks to this approach, over time fair and clear relations were built with all suppliers based on a mutual trust, which look to the future by focusing on investments that can create value in the long term. The turnover of the suppliers in the past three years has improved slightly, thanks to the consolidation of previous trade agreements due to the birth of new partnerships.

Strengthening the adoption of a sustainable supply chain is a constant verification of the achievement of high standards of proper supply. It has been confirmed for 2015, the rigorous process of accreditation in terms of safety and reliability standards. GTS has always opted for the activation of long-term partnerships preferring the high quality of service, instead of the unpleasant search for companies that however have competitive prices.


To this end, the supplier selection process cannot disregard the following elements:

• the presence of the legal requirements, fairness and transpa-rency

• compliance with laws and social and environmental regulations • compliance with quality standards that mainly include the high

level of security

Over the course of 2015, GTS has completed the process of mapping and monitoring the suppliers, who operate under the social and environmental concern. In this direction, the Group hopes to introduce in the short term period, as part of the qualification process for professional registration of suppliers, the presence of good practices on sustainability.

3.4 Financial partnersWith this category of stakeholders GTS has established a balanced relationship and fruitful exchange of qualitative and quantitative information. The Group has always paid particular interest and attention to relationships with lenders, trying to implement careful financial policies that could contemplate the economic equilibrium in the form of equity and financial.The concrete demonstration of the above, is visible to the extent that the credit system has always seen the Group as a partner of primary interest, attributing through time appropriate rating measures. The implementation of appropriate planning and financial control systems is key, it turns out to be an important element in this category of stakeholders as well as being a requirement for the Group from which it cannot break away.

3.5 The CommunityGTS has taken on one of the leading challenges in the Italian economic system to promote a culture of corporate sustainability that looks to the future and the safeguarding of future generations.The Group’s responsible approach towards local communities where the work is aimed at improving the quality of life through the development of these projects of dialogue, participation and sharing of interests.During the course of 2015 GTS has donated essential supplies to a voluntary association for assistance to the homeless and needy families. In the sports sector GTS sponsored the participation of a football team, made up of Professional Accountants and also Accountants from the Order of Trani, who competed in a tournament.A national demonstration under the auspices of the Federation, with a total prize pool amounted to 20 thousand euro. The “Trophy Sasha Open Tournament Catch & Release”, organized in collaboration with the provincial section Fipsas (Italian Federation of Sport Fishing and Diving Bari) Where many fishing teams have been pushing the limits for the last two years in the waters of the Adriatic sea coast between Bari and Mola di Bari.It is a race for fans to hunt bluefin tuna, a species that provides the highest coefficient of multiplication of the fish, in the determination of the final score. The catch follows the immediate release, in full respect of the marine environment and ironclad sport fishing regulations. Sign-up to the tournament has been confirmed, and there are many authentic samples of the discipline from many regions of Italy.In the last quarter of 2015, GTS was nominated for the second annual “Industry Felix Award - The Puglia that competes” sponsored by the Politecnico di Bari, from the Universities of Bari, Foggia, and Salento and Confindustria Puglia. This competition was attended by over one thousand companies with registered offices in Puglia and with a turnover in excess of three million euro. the task of selecting the excellence to be awarded, was entrusted to a scientific committee composed of academics, Dott. accountants and lawyers and managers of the banking sector.


Present at numerous conferences and editorial presentations, GTS has never failed to contribute to these events. Here just shows the last event in chronological order, organized by the Polytechnic of Bari called “Humanity: corporate social achievement.”

Universities and schoolsGTS has reconfirmed for 2015 it’s commitment and attention to the world of education. As already accounted for in the previous publication, it is also confirmed for this year. Many agreements have been signed with the Politecnico di Bari, the University “Aldo Moro” and the University of Salento. These agreements have enabled several students to be able to carry out curricular internships at the Group’s headquarters.During the course of the year, GTS has expressed complete willingness to the initiative of a foundation aimed at setting up a higher technical institute for sustainable mobility, management of mobility and logistics infrastructure. This legal entity wants to put together the universities, schools, training institutions, local authorities and companies in order to create a dense and fruitful collaboration network. To this end, GTS adhering to the project partnership, has confirmed:

• Support for the initiative• Willingness to accept students in the internship phase, and to

evaluate a subsequent employment• Finding managers for the role of trainers / teachers for the

course of studies• Diffusion of results• Transfer of good practices

We’re talking about technical institute, highly specialized technology promoted by the Ministry of Education, University and Research which is committed to achieving free two-year post-diploma courses. GTS has shared the objective of the initiative or better, the combination of “knowing” with “knowing how to do.” The course provides 1,800 hours of training including 600 hours of internship at the company.In the month of April 2015, GTS accepted an invitation, from Polytechnic of Bari, to participate in the educational project called “Natural..mente scuola” (naturally school). Open to students of Puglia secondary schools, the educational program engaged the kids in a creative competition aimed at proposing a new start up “sustainable.” 2015 saw the participation of about 500 students from the provinces of Bari, Taranto and Brindisi who worked on 15 ideas in the competition.


The incubator of the business ideas of the University of Salento, was in the crowd funding project called “I want to do business.” This initiative aims to fund the start up of two legal firms whose business idea will be developed by the Department of Economic Sciences of the University of Salento. With the funds raised, two groups of students will be able to make sure they have everything they need formally for their working group to become a company in its own right. In this initiative, GTS has received the mention of Evangelist in relation to contributions paid.In the field of scientific research, the Group is considered to be a “best practice” on the issue of corporate social responsibility, it is considered by university professors to be a case study to bring attention to prestigious conferences. “The Strategic Repositioning Towards Corporate Social Responsibility and the Creation of economic value” is the title of a paper presented at the conference “Re-positioning of SMEs in the Global Value System” organized in Urbino, September 24-25, 2015, by a Small business magazine.

3.6 Regulatory bodiesGTS is the subject of ongoing monitoring and verification administrated by the Italian Agency for Railway Safety (ANSF). It also provides railway operators the guiding principles of the provisions and requirements within their jurisdiction and ensure that current safety levels are maintained.The main operational tasks that the Agency carries out are as follows:

• Define the reorganization of the regulatory framework for rail traffic safety,

• Verify the application of the rules adopted,• Validate the authorization and type approval processes of sy-

stems, subsystems and components;• Issuing safety certificates to railway undertakings and safety au-

thorizations to infrastructure managers.

During 2015 there have been no reports from this supervisory authority.


3.7 Railway SafetySafety in rail transport is an absolute must at GTS RAIL SpA great attention is paid to the priority of these issues.The main safety operation supervision is represented by the Safety Management System (Sistema di Gestione della Sicurezza “SGS”), prepared in accordance with Legislative Decree 10 August 2007, 162 and to the requirements of national and international standards in the field of Safety Management (Safety Management System), in order to prevent and reduce risks related to railway operation.The main objective is to eliminate or at least reduce the likelihood of hazardous events resulting in damage to people, environment and property, obtaining continuous improvement of conditions and quality of work.The Safety Management System enables the GTS RAIL to demonstrate to all stakeholders, its commitment to safety in compliance with laws and regulations.Its validity is a fundamental requirement for the maintenance of the Safety Certificate issued to the company. In accordance with Regulation (EU) No. 1078/2012, the Company adopted a common safety method for the SGS monitoring, in order to allow for effective safty management and improve SGS adopted.In particular, GTS RAIL implements an SGS monitoring strategy based on systematic monitoring of the processes and activities carried out through the application of specific procedures that define the data collection system, tools and monitoring of the same through the comparison with the objectives set in the directional Review of SGS.The GTS RAIL S.P.A. SGS monitoring strategy is defined and, if necessary, re-examined through continuous risk management , dynamic and iterative process that involves all business functions at various levels, through monitoring of the correct application and effectiveness of the procedures of SGS, for effective safety during operation and maintenance and, where possible, improvement of the system itself.The Risks analysis and assessment process is based on the identification, analysis, evaluation and systematic control of the risks associated with railway operations, for the portion of the railway system which falls under the responsibility of GTS RAIL S.P.A.

[68]

In the presence of changes such as; technical / operational / organizational accidents for operating safety, GTS RAIL S.P.A. undertakes analysis and evaluates the possible risks introduced by the amendment, in accordance with Regulation (EU) No. 402/2013 and s.m.On the basis of the iterative process described above for analysis and risk assessment, GTS RAIL implements its monitoring strategy through the systematic application of the following processes:

a) Internal audit of SGS: The auditing process ensures the monitoring of the correct

application and the effectiveness of the SGS procedures for the effective safety management during operation and maintenance and, where possible, improvement of the system itself.

b) Collection and analysis of safety performance data: This process is based on gathering and processing security data

through the compilation of appropriate indicators of safety performance, in accordance with the indications national and Community legislation, and internally developed following a review of corporate performance.

The collection and storage of data, needed for the development of safety performance indicators are designed to ensure, over time, monitoring of processes related to security for the purpose of continuous improvement.

c) SGS directional review: The SGS directional review process provides a general review,

at least annually, of all the system elements, and aims to ensure that the system is still suitable, adequate and effective. The review brings to our attention any need to update all or part of the system elements.

The analysis of the monitoring process identifies the data cases of non-compliance considered unacceptable on the basis of the performance targets set in the directional review, which could lead to accidents, incidents or other dangerous occurrences.The commitment of the Direction of GTS RAIL, is designed to ensure safety in both road and rail operations, in line with national standards and with the guidelines provided by ANSF / GI, it is formally declared, in the SGS “Safety Policy Document “distributed to all levels of the company and monitored in order to verify the results achieved.

Fotolia © gilles lougassi

[69]

Fotolia © Frog 974

3.8 Public InstitutionsAs of December 31st, 2015, the GTS Group paid local authorities and the State around 1.3 million Euros. The relationship with public institutions is evidenced by the ability with which the GTS Group contributes financially to taxes and various fees related to the exercise of the economic activity of the enterprise.

Taxes/Taxes 2015 2014 Delta%

localsocieties 255 413 -40%

State 1,143 773 +48%


3.9 Trade AssociationsFor over 15 years GTS has ensured the active participation within different associations and also within the working committees within these. The CEO, Alessio Michele Muciaccia, is actively present in the Presidential Committee of Confindustria Bari-Bat. GTS is one of the founders of Fercargo, an association of Italian private railway companies that operate in the freight sector. The contribution to the Association of rail and intermodal operators Assofer, is not lacking either. From 2015, GTS is also present in Anita, National Association of Automobile transport companies.

aSSoCIaTo


4. EnvironmentalResponsibility

Protecting the environment, improving energy efficiency and providing services that will reduce greenhouse gas emissions and other pollutants are GTS’ fundamental intervention areas of concern, to support sustainable development in these areas of influence. The specific actions taken are, therefore, to reduce their environmental impacts and to propose the best mode of transportation.The Group adopted an environmental strategy that is founded on the following principles:

• continuous search of better energy and environmental perfor-mance by minimizing the negative impacts

• diffusion of a correct approach to environmental issues• optimizing the use of energy sources and other environmental

resources

The effective and sustainable management of operational processes characterized by particular environmental impacts through the adoption of an Environmental Management System (EMS) which is certified to ISO standard 14001.

It is a voluntary standard recognized internationally and in 2015 GTS RAIL S.P.A decided to obtain it. Compliance with the requirements contained in this standard, allows an organization to build a management system based on a cyclical and dynamic process of continuous improvement through research, this allows management of environmental risk through:

• the activation of a workflow, decision making and horizontal le-arning. All employees take note that in the performance of each organization everyone is responsible for his behavior towards environmental protection

• increasing the growth of competitive edge on the market, thanks it’s growing reputation engaged in sustainability organization

• promoting the forms for interaction with the environment, the territory and the people involved.

Foto

lia ©

Tor

ian

[71]

Promoting the forms of interaction concerning the environment, the territory and the people involvedThe Group’s objective, as set out in the Charter of the three-year commitments, is the definition of an environmental management system integrated with that of the Quality Management based on ISO 9001 and also with the system for safety Management based on the OHSAS 18001.On cue with the Global Compact, GTS adopts a policy geared to the progressive and gradual reduction of direct impacts in terms of consumption (energy, paper, toner) and carbon dioxide (CO2). The environmental impacts generated by the services provided by GTS Group concern mainly road transport, electricity consumption, emissions and waste products.Leading indicators that the environmental performance is measured by at GTS Group, the following trends were shown:

4.1 Transport and IntermodalityThe Paris Conference on Climate Change (COP 21), held from November 30th to December 12th , 2015, enabled 196 countries to sign the Paris Agreement, a global pact to reduce emissions. Each country that ratifies the agreement will be required to set a goal of reducing emissions, but the amount will be voluntary. The text adopted at the Paris Conference on climate from a fundamental premise: “Climate change represents an urgent and potentially irreversible threat to human societies and the planet.” Therefore it requires “full cooperation of all countries” with the aim to “accelerate the reduction of greenhouse gas emissions.” Investing in railways to reduce emissions, the appeal of Cop21. The argument on the opportunity to redirect global investments from road to rail has returned for debate.Redefining the way in which goods are transported is one of the many great challenges that Italy faces. A challenge that has important economic repercussions and which also involves port activities, the redefinition of the roles of the Alpine passes and the now endemic problem of air quality.

poWERConSumpTIon254,739 KW

Co2

91,342,576 Kg

“Invest in the railways

to reduce emissions”

[72] 4.EnvironmentalResponsibility

The firm decision of wanting to protect future generations starting today, causes the company to constantly monitor this figure. This is confirmed by the counter placed on the Group’s Internet portal. This data, updated in real time, the amount reported in kg of CO2, that hasn’t entered the environment from the year of the Group’s foundation. This value read on December 31st, 2015 amounted to 838 million kg.

-75%Reduction of CO2 in the environment compared to the road transport

Our respect for the environment is mirrored by these numbers

saved to the environmentfrom 1977 to 2015

equivalent to the sequestration capacity of

trees

838,127,951 Kg. of CO2

41,520,000

838127951

4.EnvironmentalResponsibility [73]

The distinctive element for GTS is represented by a trademark that represents the Group’s winning philosophy.

As of December 31st , 2015, the volume of traffic generated by the GTS Group is as follows:

The competitiveness of the GTS Group’s strategy to focus on CO2 saved, ie reduction of carbon dioxide emissions due to the replacement of mileage of road kilometers with that of rail km.

Road 23%

Sea 7%

Rail 70%

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ites

tro

[74]

4.2 Energy savingsThe electricity consumption of GTS is essentially made up of the workplace lighting as well as the rail traffic.With reference to the first case, the increase over the previous year is mainly due to the expansion of lighted areas.The fuel consumption is due mainly to a large use of cranes for the handling of containers at the Bari Lamasinata terminal .The electricity used outside the company pertains to the circulations of GTS trains. The consumption regarding railway operations, has a proportional trend compared to the increase of railway circulations during the year. The cost / consumption Kw charged again by Italian Railway Network, as the infrastructure manager, was as follows during the last three years:

TypEoFConSumpTIon 2015 2014 2013

railway power supply* 432 321 286

For the workplace * 58 51 48

* Values expressed in thousand.

4.3 Waste managementThe daily product waste separation policy is working at full capacity at GTS. It is basically the management of paper, plastic and humid generated as part of daily business dynamics. The Group provides the broadcast of the Model Environmental Statement pursuant to and by effect of the law 70 of 1994, as amended.

The disposed materials are largely traceable to maintenance and repair activities:

• Business cars• Wood packaging• Toner for printers supplied to Rail crews.

With reference to the collection, disposal and replacement of toner relative to the printers put in the offices, it should be noted that this activity has been contractually entrusted to the supplier.The decision to externalize the maintenance of the main assets (locomotives and tractors), it is now possible to restrict the collection, management and disposal of waste reducing it primarily during the activities carried out in the offices and the small maintenance of vehicles made in the garages.

Fotolia © Twixx

[75]

4.4 Environmental investmentsDuring the last year three locomotives were acquired, that will become operational presumably in the second half of 2016. Even for this type of purchase, the company policy on the environment was complied. They are all equipped with a dry filter able to provide air cleaning withdrawn from the lower part of the locomotive, which allows the release of moisture condensed by air compression which is then removed. In order to ensure the security and quality of supply, GTS RAIL S.P.A. launched over the last two months of 2015, a selection process of suppliers to whom to entrust the work related to the creation of workshop rolling stock maintenance. This procedure took into account not only the technical and economic evaluation of the offer, even the possession of quality certifications related to environment, health and safety of workers. The search for a sustainable competitive advantage has driven the GTS Group to adopt fair and responsible trade practices in order to define and consolidate a sustainable supply chain policy.

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Rom

an M

ilert

[76] 4.EnvironmentalResponsibility

Consolidated Financial Statements 2015

Assets

Consolidated financial statemets as of 31/12/2015Gruppo GTS Holding srl

BALANCE SHEET

Assets

Consolidated financial statemets as of 31/12/2015Gruppo GTS Holding srl

BALANCE SHEET2015 2014

€ €B) Fixed AssetsI - Intangible assets1) Set-up costs 25,877 215,6363) Industrial and intellectual property rights 207,227 96,1946) Pre-payments and other intangible assets in progress - 90,1937) Other intangible assets 403,302 411,943

Total intangible assets 636,407 813,966

II- Tangible assets1) Land and industrial buildings 5,204,823 5,313,5222) Machinery and equipment 30,003,946 22,989,4273) Industrial machinery 18,044 19,9384) Other tangible assets 433,630 671,0085) Pre-payments and other intangible assets in progress 760,364 154,760

Total tangible assets 36,420,807 29,148,655

III- Financial assets1) Investments 81,952 81,952

a) Investments in subsidiaries 67,369 67,369d) Investments in other affiliates 14,582 14,582

2) Receivables - -a) Non consolidated subsidiaries receivables 64,816 59,912d) Other Receivables 227,892 777,179

Crediti verso altri debitori 227,892 289,692Esigibili entro esercizio successivo - 487,487Total financial assets 374,659 919,042

Total assets (B) 37,431,873 30,881,663

C) Current AssetsI- Inventory

Total Inventory 85,795 -

II- Receivables1) Trade Receivables 22,612,341 22,366,9504-bis) Tax Receivables 941,518 2,694,8704-ter) Deferred Tax Assets Receivables 407,442 341,8415) Other receivables 3,099,286 3,338,121

Total current receivables 27,060,587 28,741,782

IV- Cash and cash equivalents1) Bank and postal deposits 3,086,636 701,5932) Cheque 51,357 -3) Cash on hand 25,343 21,195

Total cash and cash equivalents 3,163,335 722,782

Total current receivables (C) 30,309,717 29,464,850

D) Accrued income and prepaymentsAccrued income 1,006,335 1,863,508Total Accrued income and prepayments 1,006,535 1,863,508

Total assets 68,748,125 62,209,741

5.ConsolidatedFinancialStatementsGTS2015 [79]

LiabilitiesBALANCE SHEET


€ €A) Net EquityI- Share capital 890,530 890,530IV- Legal reserve 56,080 44,502VI- Portfolio treasury shares reserve - -VII- Other reserves 3,920,346 2,659,108VIII- Net income (loss) carried forward - (3,111)IX- Net income (loss) 1,644,629 1,275,927

Consolidation Reserves 1,756,180 1,756,180Total Group’s net equity 8,267,765 6,623,137

minority Interests Reserves 5,853,785 4,656,754minority Interests Net Result 1,477,523 1,197,032minority Interests - Total 7,331,308 5,853,786

Total net equity 15,599,073 12,476,921

C) Provisions for contingencies and liabilities1) Pension liabilities 200,000 350,0002) Deferred tax provision 1,496,329 1,555,8113) Other provisions 1,599,355 1,284,343

Total provisions for contingencies and liabilities 3,295,684 3,190,154

Employee termination indemnity 1,350,914 1,241,374

D) Payables4) Due to banks within 12 months 4,441,395 5,163,873

expiring over 12 months 18,434,479 14,937,2825) Due to other financial partners 2,695 2,5986) Prepayments received 5,926 5,9267) Trade payables 19,483,727 17,778,1629) Due to not consolidated company 6,000 6,00012) Tax payables 549,835 559,13913) Due to social security institutions 254,156 281,77714) Other debts 1,176,534 1,346,518

Total debts 44,354,746 40,081,275

E) Accrued expenses and deferred incomeAccrued expenses and deferred income 4,147,707 5,220,015Accrued expenses 33,967 8,714Deferred Income 4,113,740 5,211,301

Total Accrued expenses and deferred income 4,147,708 5,220,015

Total liabilities 68,748,125 62,209,741

2015 2014

INCOME STATEMENT as of 31 December 2015

[80] 5.ConsolidatedFinancialStatementsGTS2015



INCOME STATEMENT as of 31 December 20152015 2014

€ €A) Value of production 1) Revenues from sales and services 79,420,187 73,023,4715) Other revenues 5,724,247 4,481,479

a) Operating grants 5,515,443 4,087,989b) Other revenues 208,804 393,492

Total value of production 85,144,434 77,504,952

B) Costs of production6) Costs for raw materials (1,018,266) (1,151,606)7) Services costs (65,321,511) (59,495,234)8) Costs for leases and rentals (2,860,264) (3,073,711)9) Personnel costs (7,559,065) (7,007,580)

a) Wages and salaries (5,519,077) (5,168,143)b) Social security contributions (1,592,471) (1,520,075)c) Employee termination (359,077) (312,012)d) Pension liabilities and similar - (2,815)e) Other costs (88,441) (4,535)

10) Amortization and depreciation (2,965,006) (2,425,363)a) Intangible amortization (324,713) (305,967)b) Tangible amortization (2,238,026) (1,848,757)d) Depreciation of assets in current receivables (402,267) (270,639)

Other provision charges (354,376) (294,300)Other costs (513,661) (369,930)

TOTAL COSTS OF PRODUCTION (80,592,149) (73,817,724)

DIFFERENCE BETwEEN VALUES AND COSTS OF PRODUCTION (A-B) 4,552,285 3,687,228

C) Financial Income and charges

16) Other financial income 219,570 229,447

17) Interest and Other financial charges (522,574) (454,049)17-bis) Net Income (loss) on exchange 75,964 (34,331)

Total (15+16+17+17bis) (227,040) (258,933)

E) Extraordinary income and charges - -20) Extraordinary income

Gain on assets sales 7,785 1,788Other non current income 460,232 194,916

21) Extraordinary chargesOther non current income (399,475) (156,293)

Total extraordinary income and charges 68,541 40,411

Before tax result (A-B+C+E) 4,393,787 3,468,706

22) Income taxesCurrent taxes (1,376,552) (966,082)Deferred tax charges and benefits 104,917 (29,665)

Total income taxes (1,271,634) (995,747)

23) Net income 3,122,152 2,472,959


Note to financial statements

1. Principles of Consolidation

The principles of consolidation followed in the preparation of the consolidated financial statements are outlined below.a) The consolidated financial statements are the result of the aggregated financial statement as of 31

December 2014 of the parent company and of its subsidiaries as mentioned above, respectively approved by their boards of directors or sole administrators, adequately reclassified and amended in order for them to be consistent with the Group consolidation policies.

b) The result of the companies that are consolidated for the first time during the financial year is fully consolidated only in case the consolidation conditions arise in the first period of the year. The net profit (loss) is shown in a different line of the consolidated profit and loss.

c) The financial year, for all the Group’s companies, coincides with the calendar yea.d) The assets and liabilities of subsidiaries are consolidated on a line-by-line basis and the carrying

value of intercompany investments held is eliminated against the related shareholder’s equity accounts. The non-controlling interests of consolidated subsidiaries are separately reported in the consolidated balance sheets and consolidated statements of operations. All intercompany balances and transactions are eliminated in consolidation.

The difference between the carrying value of intercompany investments of subsidiaries and the related shareholders’ account, at the date of acquisition, is allocated, where possible, to the related either asset or liabilities of the subsidiaries’ financial statements.

In case of positive difference, which constitutes the goodwill paid for the subsidiaries, the different amount is allocated in the line “goodwill arising from acquisitions” and it is amortized over five years.

In case of negative difference, this is recorded in the line “consolidation reserve” unless the negative difference has to be referred to adverse forecasted result of the subsidiary following the acquisition. In this case the difference is allocated line “other liabilities”. The amount will be released to the profit and loss when the forecasted negative result is realized.

e) All intercompany balances and transactions are eliminated in consolidation. Profits and losses deriving from intercompany transactions and not realized with third independent parties are eliminated, when material, also considering the relative tax effects.

f) The non-controlling interests of consolidated subsidiaries are separately reported in the consolidated balance sheets and consolidated statements of operations in line “minority interests”.

g) The fiscal effect of consolidation adjustments, when material, is recorded and represented in the financial statements. The deferred tax assets and the deferred tax liabilities are respectively and separately shown in the balance sheet. In the consolidated statements of operations, deferred taxes are shown in the group “net income taxes”.

h) In the consolidated financial statements the tax on dividends distribution are not recorded when it is assumed that the profit will be reinvested in the company. In the same case no taxes are recorded on reserve that will be subject to taxation only in case of distribution to the shareholders.


2. Evaluation and accounting principles adopted for the preparation of the consolidated financial statements

The present consolidated financial statements are prepared according to Italian legal law requirements governing financial statements, considered in conjunction with established accounting principles promulgated by the Italian Accounting Profession (OIC). Assets and liabilities are evaluated based on the general criteria of prudence and matching principle, on the basis of the going concern assumption. The evaluation criteria and significant accounting policies followed in the preparation of the consolidated financial statements are outlined below.

Intangible assets

Intangible assets are recorded at cost, net of the amortization expense calculated on the straight-line method. Other intangible assets primarily include software and trademarks, and are stated at cost, net of the amortization expense calculated on the straight-line method over their estimated useful life.Set-up costs, advertising costs and goodwill are recorded with the consent of the board of statutory auditors, and are stated at cost, net of the amortization expense calculated on the straight-line method over a period of five years. The carrying amounts of these assets are reviewed to determine if they are in excess of their recoverable amount at the consolidated balance sheet date. If the carrying amount exceeds the recoverable amount, the asset is written down to the recoverable amount.

Tangible assets

Properties, plants and equipments are stated at historical cost except for certain buildings that were revaluated in 2000, 2001 and 2009 according to Italian revaluation laws.The cost or revaluation of fixed assets is depreciated on the straight-line method over the assets’ estimated useful lives. The assets acquired by the user of leasing contracts are recorded in the balance sheet using the so-called “financial method”, so the value of the asset is recorded among the equipments and the debt towards leasing companies is recorded among the liabilities and progressively reduced on the basis of the relative amortization plan. In the profit and loss the leasing costs are replaced by costs of interest and by amortization costs according to the useful lives of the acquired good.Maintenance and repairs are expensed; significant improvements are capitalized and depreciated over the useful life of the related assets.

Investment in affiliates and other financial assets

Investments in controlled and associated companies that are not consolidated according to the full method are evaluated according to the equity method. Investments in affiliates and other financial assets are recorded according to historic cost criteria. Eventually they are write-off when their market value results to be permanently inferior. Investments in controlled companies and affiliates which are held for sale are evaluated at the lower value between historic cost and market value.

Accounts receivable and payable

Receivables are recorded at their probable realization value at the balance sheet date. This is realized by stating the receivables at their nominal value net of an allowance for doubtful accounts. Payables are stated at their face value.


Cash and cash equivalents

Cash is booked at its face value, whereas bank accounts and deposits are recorded at their probable realization value, that, in this case, coincides with face value. Bank deposits in currencies other than Euro are converted using the exchange rate at the date of balance sheet published by Bank of Italy.

Employees’ leaving entitlement

Leaving entitlements represent amounts accrued for each Italian employee that are due and payable upon termination of employment, assuming immediate separation, determined in accordance with applicable Italian labour laws. The Group accrues the full amount of employees’ vested benefit obligation as determined by such laws for leaving entitlements.

Contingencies

Liabilities for loss contingencies are recorded when it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated.

Current income taxes

Current income taxes are determined on the basis of a realistic estimate of the taxes payable under current tax law and stated, as part of the equity, net of prepayments and withholdings. Any excess credit is entered on the assets under the item “Tax receivables balance sheet”, while the debt under “tax liabilities”.

Prepaid and deferred taxes

Prepaid and deferred taxes are recognized in order to reflect the future benefits and / or tax burdens found with temporary differences between the carrying amounts of assets and liabilities recorded in the financial statements and the corresponding values considered for the purpose of the calculation of current taxes, as well as from any tax losses carried forward.Deferred taxes are recorded, in respect to the principle of prudence, if there is a reasonable certainty in the years in which the temporary differences are deductible, leading to the recognition of deferred tax, an income tax not less than the differences that will be reversed. Conversely, the deferred tax liabilities are not recorded if there is little likelihood that the corresponding liabilities may occur.The credit relating to the tax benefit connected to loss carried forward is recognized in the balance sheet if the following conditions occur at the same time: there is a reasonable certainty that sufficient taxable income in the future that will be able to absorb the losses carried forward within the period in which they are deductible according to the tax legislation; the losses in question are derived from easily identifiable circumstances and it is reasonably certain that these circumstances will not be repeated in the future.Deferred taxes are determined based on the tax rates for the taxation of income for the years in which the temporary differences will be eliminated. The effect of the change in tax rates on these taxes are recognized in the period in which they are approved relevant legislative measures.In the balance sheet, deferred taxes and deferred tax liabilities are recognized separately under the section “Deferred tax assets” and “provisions for risks and charges”. In the income statement, deferred and prepaid taxes are included under “Income taxes”.


Other income and expenses

They are recorded in accordance with the principles of prudence and competence with the recognition of accruals and deferrals.

Leased goods

Capital goods held under finance leases are accounted for under the financial method, and are appropriately enrolled among tangible fixed assets giving evidence to the substance as a financing transaction.

Potential liabilities

Losses from potential liabilities are recognized Amongst the risks when there arethe following conditions:• the availability at the time of preparation of the financial statements with information which suggest

the likely occurrence of the events involving the rise of a liability or the reduction of an activity;• the ability to estimate the extent of the burden to a reasonable degree.

“Off balance sheet”

As of December 31.2015, the Company G.T.S. - GENERAL TRANSPORT SERVICE SPA had contracts to cover interest rates (IRS) on the leasing contracts, with a notional of about 2 million Euros, paid on a monthly basis and are thus already reflected in the income statement.


3. Reconciliation scheme between the parent company’s net worth equity and result and consolidated net worth equity and result

Below the reconciliation scheme of GTS Holding S.r.l. as of 31 December 2015 and Group financial statements:

2015Net worth equity

€/1000

Parent company book value 2014 2,002difference between the carryng value and intercompany investments against the related shareholders net worth equity 6,839

Consolidation adjustments 1,756

other consolidation adjustments 37

aid for investment (1,210)

leasing operation 3,130

dividend elision -

tax effect of consolidation adjustment (77)

net income 3,122

Booking value of Group financial statement 15,599

Reconciliation net income 2015Net worth equity

€/1000

Net income parent company (23)

Subsidiaries net income 2,092

Ias 17 adjustement 1,275

tax credit (262)

amortization (7)

Tax on earnings 47

Net income 3,122


4. Intangible assets

accountingnetvalue Balanceasof31/12/15 Balanceasof31/12/14 Taxrate

Set-up cost 25,877 215,636 25%

Industrial and intellectual property rights 207,227 96,194 25%

Concessions, licenses, trademarks and the like - -

Start up - -

assets under development and advances - 90,193

other 403,304 411,943 20%

Total 636,407 813,966

HistoricalCostBalanceasof

31/12/2014 Gains DecreasesBalanceasof

31/12/2015

plant and expansion costs 1,301,876 - - 1,301,876

research, development and advertising - - - -

industrial and intellectual property patent rights 303,790 162,970 - 466,760

Concessions, licenses, trademarks and the like 2,400 - - 2,400

Start up - - - -

assets under development and advances 90,193 72,387 (162,580) -

other intangible assets 1,242,086 74,376 (162,580) 1,316,462

Total historical cost 2,940,345 310,183 (162,580) 3,087,498

Accumulated depreciationBalance as of

31/12/2014 Gains DecreasesBalance as of

31/12/2015

plant and expansion costs (1,086,239) (189,759) - (1,276,998)

research, development and advertising - - - -

industrial and intellectual property patent rights (207,596) (51,938) - (259,534)

Concessions, licenses, trademarks and the like (2,400) - - (2,400)

Start up - - - -

assets under development and advances - - - -

other (830,143) (83,017) - (913,160)

Total (2,126,380) (324,714) - (2,451,092)

Plant and Expansion welcomes the investments made for the expansion of the railway, and the costs for the acquisition of railway licenses. Rather, the area of industrial patent rights and intellectual properties include the spending of investments in software, used by Group companies. In particular in 2015 they were capitalized as construction in progress and advances in the design and development costs related to the European Project named I-Cargo. A breakdown of other intangible assets includes investments on real estate, in order to adapt to the operational needs and security, held under the lease title.


5. Tangible assets

CountablenetValue Balanceasof31/12/15 Balanceasof31/12/14

land and industrial buildings 5,204,823 5,313,522

equipment and Machinery 30,003,946 22,989,427

Industrial machinery 18,045 19,938

other tangible assets 433,630 671,009

assets in progress and advances 760,363 154,760

Total Tangible Assets 36,420,808 29,148,655

Historicalcost

Balanceasof

12/31/14

IncrementiTotal

Increases Sales TransfersDecreases

total

Balanceasof

31/12/15Thirdpartypurchases Transfers

land and Buildings 6,713,681 52,553 - 52,553 - 22,000 22,000 6,788,234equipment and Machinery 30,504,324 8,716,764 - 8,716,764 (15,243) 11,500 (3,743) 39,217,344Industrial and commercial equipment 102,606 5,817 - 5,817 - - - 108,423

other assets 2,961,134 96,892 - 96,892 (165) - (165) 3,057,695assets in progress and advances 154,761 662,000 - 662,000 - (56,397) (56,397) 760,363

Total 40,436,505 9,534,025 - 9,534,025 (15,408) (22,897) (38,305) 49,932,060

Depreciation FundBalance as of 12/31/14

IncreasesTotal

Increases Sales TransfersDecreases

total

Balance as of

31/12/15Third party purchases Transfers

land and Buildings (1,400,159) (183,251) - (183,251) - - - (1,583,411)equipment and Machinery (7,514,897) (1,715,110) - (1,715,110) 16,608 - 16,608 (9,213,398)Industrial and commercial equipment (82,668) (7,709) - (7,709) - - - (90,378)

other assets (2,290,125) (331,956) - (331,956) - - - (2,624,066)assets in progress and advances - - - - - - - -

Total Funds (11,287,849) (2,238,026) - (2,238,026) 16,608 - 16,608 (13,511,253)

The land property and buildings body welcomes the Group properties where the headquarters carry out production. These properties are located in the industrial area of Bari and Piacenza. Of these properties a pursuant revaluation was performed according to Law n. 2 as of the 28th of January 2009, and the budget remains a non-amortized value of 835,234 Euros. On the G.T.S. building of properties - GENERAL TRANSPORT SERVICE SPA was granted a loan to anticipate the purchases of locomotives, later sold to GTS RAIL S.P.A. in the operation of splitting the railway business unit. During the year the subsidiary GTS RAIL S.P.A. bought a railway service area at the terminal Bari Lamasinata. This service area is dedicated to the maneuvering of locomotives in the terminal. The area will later be equipped and also operate as a workshop for the maintenance of the same and other rolling stock.


The Equipment and Machinery sector includes the amounts attributable to the instrument adopted by the Group companies for the production of railway traction and transport services. In particular, this includes the value of 7 owned locomotives; the historical total cost is more than € 22.4 million, acquired through leasing contracts. The estimated useful life of these amounts to 30 years. For the Appropriate liability items there are funds allocated for the maintenance required by safety regulations and rail traffic. Between the equipment and machinery allocation is found even for extra swap bodies and containers, equal to about 1,800, and the value of 130 Rail Wagons. During 2014 and 2015, the Group Company G.T.S. - GENERAL TRANSPORT SERVICE SPA has made an 8.3 million euro investment in railway wagons by replacing part of the owned fleet with rentals. This transaction was financed in part with financial leases and partly with long-term loans. Other assets further include the value of industrial vehicles, such as cranes for handling containers on the ground, the fleet of transport vehicles and their trailers.

6. Financial Assets

Details 2015 2014 Delta

Investments in subsidiary companies 67,369 67,370 -

Investments in other companies 14,582 14,582 -

total Investments 81,951 81,951 -

loans V / Companies not Consolidated 64,816 59,911 4,905

total V / unconsolidated 64,816 59,911 4,905

deposits for leasing and rentals 221,947 270,580 (48,633)

Various deposits 5,945 19,112 (13,168)

Credits other Financial - 487,487 (487,487)

Total current receivables 227,892 777,179 (549,287)

Total Financial Assets 374,659 919,042 (544,383)

The assessment according to the Equity method of unconsolidated companies would not differ from the value of those valued at cost. The reduction in long-term receivables during the last financial year is attributable to receivable amounts of 487,487 Euros owed by the liable Company.

7. Receivables of the current assets

Credits 2015 2014 Delta

trade receivables 22,612,341 22,366,950 245,391

tax receivables 941,518 2,694,870 (1,753,352)

deferred taxe 407,442 341,841 65,601

others receivables 3,099,286 3,338,121 (238,835)

Total receivables from Current assets 27,060,587 28,741,782 (1,681,195)


Trade receivables can be broken down as follows:

2015 2014 Delta

account receivables 22,319,695 22,257,938 61,757

receivables from invoices to be issued 1,041,667 649,822 391,845

Bank Bills and receipts 673,675 433,929 (239,746)

Subtotal 24,035,038 23,341,689 693,349

Credit notes to be issued (169,743) (80,064) (89,679)

allowance for doubtful accounts (1,252,953) (894,675) (359,278)

Total receivables from clients 22,612,341 22,366,950 245,391

The receivables are stated at their estimated realizable value. There are no receivables which are expected after one year. The provision for doubtful receivables was adjusted in order to align receivables to their estimated realizable value.

provisionfordoubtfulreceivables

Balance 2014 (894,675)

Increase (402,267)

decrease 43,988

Balance 2015 (1,252,953)

Here is a classification of receivables by geographical area in order to highlight the Countries at Risk.

2015 2014

Customers Clients operating in countries in the e.u. 8,977,945 9,525,311

Customers Clients operating in countries outside the e.u. 818,250 712,899

Customers Clients in Italy 12,816,146 12,128,740

Total 22,612,341 22,366,950

The following tables provides details of receivables for tax purposes at the date of the financial statements.

Taxreceivables 2015 2014 Delta

Irap C/ reimbursements – - 74,663 (74,663)

tax authorities c/ Vat 759,723 420,957 338,766

tax Credits for investments 2,050,014 (2,050,014)

excise taxes Fuel 43,415 57,471 (14,056)

Income taxes 108,356 - 108,356

other receivables v/taxes 30,024 91,765 (61,741)

Total tax receivables 941,518 2,694,870 (1,753,352)


Investments led to the creation of a tax credit pursuant to article 1, paragraphs 271-279 of law 27 December 2006, n. 296, and subsequent amendments of Decree law 3 June 2008, n. 97, it was used financially in compensation during the last year. This tax credit, in the consolidated financial statements, from an economic point of view, was related to depreciation of the assets that have generated profit. The anticipated taxes recorded in the financial statements are because they are believed to be recoverable referring to the following table of taxes:

Deferredtaxassets(€) 2015 2014 Delta

revaluation of asset by law 53,990 53,990 -

other liabilities 178,386 93,019 85,367

accumulated doubtful accounts 141,220 164,613 (23,393)

leasing contracts 21,656 14,099 7,557

other minor differences 12,190 16,120 (3,930)

Total deferred tax assets 407,442 341,841 65,601

Other receivables are analyzed as follows:

otherreceivables(€) 2015 2014 Delta

receivables for Ministry of transport grants 1,623,410 1,647,775 (24,365)

receivables for other non-national bodies grants 1,061,256 1,423,007 (361,751)

other 414,620 267,339 (147,281)

Total other receivables 3,099,286 3,338,121 (238,836)

A detail is given of other receivables analyzed in terms of estimated collectability:

otherreceivables(€) Within12months Within5years over5years Totalreceivables for Ministry of transport grants 203,971 1,005,583 413,456 1,623,410receivables for other non-national bodies grants 1,061,256 - - 1,061,256

other 414,620 - - 414,620

Total other receivables 1,679,847 1,005,983 413,456 3,099,286


8. Cash and cash equivalents

Cash and cash equivalents as of 31 December 2015 are analyzed as follows:

Cashandcashequivalents(€) 2015 2014 Delta

Bank and postal deposits 3,086,636 701,593 2,385,043

Cash on hand 76,699 21,195 55,504

Total 3,163,335 722,788 2,440,548

These available funds reside on National credit Bodies and are highly liquid. Under the cash, foreign Exchange stocks they were converted at the exchange rate as of 31.12.2015. Liquid assets have increased to 2,440,548.

9. Accrued income and prepayments

Accrued income and prepayments mainly include deferred costs regarding not concluded transport services

2015 2014 Delta

accrued income 37,367 21,608 15,759

prepayments and deferred costs 969,167 1,841,900 (872,733)

Total 1,006,534 1,863,508 (856,974)

The Active Accrued income refers the interest earned, but not yet received by 31.12.2015. The Prepaid Expenses consist, for the most part, of the deferred costs related to benefits for transport services that have not had economic recognition during the year, as revenues, since its performance was completed in the following year. Related passive benefits not concluded, are instead suspended between the deferred income. Both parts, costs and suspended revenues, will receive economic recognition in the following year, when it can be considered a concluded action. This being said, in strict adherence to the principle of accrual laid down by Article. 2423 of the Civil Code and recalled by the National Accounting Standards. The same is expressed in the report of company incidents for the period where they see themselves in terms of their maturity achieved, complex utility and sales as well as the use raw material resources. To this effect, the balance system as it stands now expects, as a preliminary, to determine the economic competence with respect to revenues, and then correlate all of those capital costs of obtaining the same. About to, properly and in accordance with the law to the accrual method for revenue, you have to the extent that the provision of transport is to be completed. The assessment behavior in question has led to the quantification of specific masses of active expenses and deferred income, determined analytically, representative of the intangible tank report to the next period, where we will witness the accrual of related cost and revenue profiles. The reduction of Prepaid Expenses item is mainly due to the advance transfer entry equal to 645,000 Euros granted to the Institute Mediocredito Centrale for the purchase in leasing of two new locomotives delivered in 2015.


10. Net equity

Net equity as of 31 December 2015 is analyzed as follows:

netequity(€) 31/12/2014 Increments Decrements Balance

Share Capital 890,530 - - 890,530

legal reserve 44,502 11,578 - 56,080

other reserve 2,659,108 1,261,238 - 3,920,346

net income(loss) carried forward (3,111) 3,111 - -

net income(loss) 1,275,927 1,644,629 (1,275,927) 1,644,629

Consolidation reserve 1,756,180 - - 1,756,180

Total Group Equity 6,623,136 2,920,556 (1,275,927) 8,267,765

Minority interests reserves 4,656,754 1,197,031 5,853,785

Minority interests net income(loss) 1,197,032 1,477,523 (1,197,032) 1,477,523

minority interest total 5,853,786 2,674,554 (1,197,032) 7,331,308

TOTAL 12,476,922 5,595,110 (2,472,959) 15,599,073

The increases refer to the result from the exercise achieved.

11. Provisions for contingencies and obligations

Provisions are analyzed as follows:

provisions(€) 2015 2014 Delta

pension liabilities 200,000 350,000 (150,000)

deferred tax provision 1,496,329 1,555,811 (59,482)

legal actions provision - 43,950 (43,950)

Maintenance fund 1,581,708 1,227,333 354,375

agent termination fund 17,737 13,060 4,677

Total provisions for contingencies and obligations 3,295,774 3,190,154 105,620


The deferred tax provision expenses were as follows:

Deferredtaxliabilities(€) 2015 2014 Delta

art. 88/B grants 31,788 313,268 (281,480)

art 42. ld n. 78/2010 reserve 103,638 103,638 -

deferred taxes on leasing contracts 1,330,961 1,060,306 270,655

deferred taxes on retained earnings 26,880 73,505 (46,625)

other temporary differences 3,062 5,094 (2,032)

Total deferred tax liabilities 1,496,329 1,555,811 (59,482)

Deferred taxes on Financial Leasing have been allocated in the consolidation phase followed after the enrollment in the financial statements, according to the financial lease method instead of equity, as is adopted in the separate financial statements of consolidated companies. This methodology differs from the tax treatment that these assets have had from the individual companies, and therefore, in order to align the tax rate during the years of payment of the lease and those to follow, it was decided to allocate the related deferred tax liabilities. These taxes will be rebated when the lease expires and for consolidation purposes they will continue to bring in depreciated assets based on their useful life, according to the depreciation rates adopted. Taxes on retained earnings, on the other hand, concern the expenses that the parent company would have to bear in order to benefit from the dividends, if distributed.

The amount of deferred tax in the financial statement is as follows:

Deferredtax2014(€) 1,555,811

Increments on leasing 270,655

decrements (281,480)

other decrements (48,657)

Deferred tax 2015 1,496,329

The following table shows the changes in the legal disputes fund. The Group currently has no ongoing disputes which determine with reasonable probability the outlay of sums.

accrualforlegalcases2014(€) 43,950

decrements due to dispute closures (43,950)

accrual for new disputes -

Accrual for Legal cases 2015 -

The provision for maintenance expenses is related to extraordinary maintenance costs that will be incurred for locomotives acquired by the GTS RAIL SPA Group, after the achievement of the distances in kilometers and time limits provided for by its maintenance plans, as regulated by national law and forwarded to the competent supervisory authority in the Institute of national Agency for Railway Safety (ANSF). The provision has been increased by 354,375 Euro.


13. Employee termination indemnity

It amounts to € 1,350,914 and represents the Group’s effective amount as of 31/12/2015 to employees in service at that date, net of advances paid and calculated according to the provisions of C.C.N.L. of category and to the applicable laws.

Employeeterminationindemnityasof31/12/2014(€) 1,241,374

Increases 346,042

decreases (236,503)

Employee termination indemnity as of 31/12/2015 1,350,914

13. Payables

The total of payables amounts to € 44,354,746 Euros with an increase of € 4,273,471 Euros and is analyzed as follows:

payables(€) 2015 2014 Delta

due to banks (within 12 months) 4,441,395 5,163,873 (722,478)

due to banks (over 12 months) 18,434,479 14,937,282 3,497,197

due to other financial partners 2,695 2,598 (97)

prepayments received 5,926 5,926 -

trade payables 19,483,727 17,778,162 1,705,564

due to not consolidated company 6,000 6,000 -

due tax payables 549,835 559,139 (9,304)

due to social security institutions 254,156 281,777 (27,621)

Other debts 1,176,534 1,346,518 (169,984)

due to other group companies 750 750

other debts 1,175,784 1,345,768 (169,984)

Total 44,354,746 40,081,275 4,273,471

Amounts due to Banks receive exposure to bank credit on advance account bills for 500 thousand euro, the remaining amount of Capital due in Debts for Medium / Long-term loans making a total of 6 million 260 thousand euro, and the remaining amount due in capital of amounts due under loans against the Company of Leasing for a total of EUR 16 million 105 thousand. For clarity the data is laid out in the table below.

Debtsduetobanks(€) 2015 2014

advances on invoices 509,632 2,006,398

Bank overdraft - 5,911

long term loan - Mediocredito gtS 972,222 1,527,778

long term loan - Carime gtS 2,986,519 2,363,742

long term loan - San paolo 1,450,173 1,121,511

long term loan - Banca popolare di Bari 852,536 1,013,056

debt vs. leasing companies 16,104,792 12,062,759

Total debts due to banks 22,875,874 20,101,155


During the financial year 2015, the company G.T.S. - GENERAL TRANSPORT SERVICE SPA, has entered into a new medium-term loan agreement with the Carime Bank for a total amount of 1 million € and new leases for 841,000 Euros for the completion of the acquisition of 100 new rail wagons the transaction was finalized in February 2015 with the delivery of the last 27 railway wagons. In 2015 GTS RAIL S.P.A. increased its fleet with two additional locomotives by switching to a new lease agreement amounting to 5 million 439 thousand Euros.

Trade payables are analyzed as follows:

Tradepayables(€) 2015 2014 Delta

trade payables for invoices received 19,439,715 17,017,114 2,422,601

trade payables for invoices to be received 1,374,421 1,479,047 (104,626)

Credit notes to be received (1,330,409) (717,938) (612,471)

Total 19,483,727 17,778,162 1,720,565

The due tax payables line includes the following:

Taxpayables(€) 215 2014 Delta

Withholding taxes 204,277 193,509 10,768

Vat – 14,327 (14,327)

other taxes 11,498 13,427 (1,929)

Ires (income taxes) 324,884 269,309 55,575

Irap (income taxes) 9,176 68,567 (59,391)

Total due tax payables 549,835 559,139 (9,304)

A detailed description of payables due to social security institutions and of other payables is given below

Socialsecurityinstitutions(€) 2015 2014 Delta

InpS 245,073 258,432 (13,359)

Inail 1988 – 1,988

other social security institutions 7,095 23,345 (16,250)

Total of other social security institutions 254,156 281,777 (27,621)

oherpayables(€) 2015 2014 Delta

personnel compensation 1,010,405 973,437 36,968

Customers guarantee deposits 59,600 59,600 –

Sole administrators 3,445 14,100 (10,655)

Shareholders for dividends 88,100 299,381 (211,281)

other 14,234 - 14,234

Total 1,175,784 1,346,518 (170,734)


14. Accrued expenses and deferred income

Accrued expenses and deferred income are analyzed as follows:

accruedexpensesanddeferredincome(€) 2015 2014 Delta

deffered income 33,967 8,714 25,253

deferred income on not complete orders 1,075391 1,015,642 (59,749)

deferred income on governing grants 69,988 1,098,011 (1,028,023)

deferred income on tax credit 2,968,362 3,097,649 (129,287)

Total accrued expenses and deferred income 4,147,708 5,220,015 (1,072,307)

Deferred incomes of Services include the portion of revenues relating to transport and at year end are not completed and therefore cannot be recognized as such. The cash flow effect in terms of the credit report is not representative of the economic representation, so, properly on the basis of regulatory signs, and related OIC accounting principles, they were analytically determined individual deferred income shares of each transport position. Deferred income about Contributions belongs to contributions received and / or accounted for which economic event will be correlated to costs to be sustained in future periods.The same account also includes the deferral of the tax credit on the locomotives. Regarding the deferral of the tax credit, in accordance with the method of accounting with the financial assets acquired by leasing, on which the loan was granted, steps were taken to reformulate the competition of the same to the consolidated income statement on the basis of depreciation of the assets entered in the budget.

15. Statements of operations - Value of production

In 2015 the Group reached a turnover of 79.6 million €. In addition to this, grants for operating expenses of 5.5 million Euros relating for the most part to additional Contributions to rail transport. These contributions, common to the whole sector, aim to make the mode of transport by rail more attractive to the market considering the positive impacts in terms of benefits for the community, the environment and safety, the gradual replacement of transport by road with transport via Rail.The operating grants also include the amount of the tax credit part of the competence related to the amortization of locomotives.

Valueofproduction(€) 2015 2014 Delta Var.

revenues from sales and services 79,420,187 73,023,471 6,396,716 8.8%

other revenues 208,804 393,492 (184,688) (46.9%)

total revenues by geographical area (€) 79,628,991 73,416,963

operating grants 5,515,443 4,087,989 1,427,454 34.9%

Total Value of Production 85,144,434 77,504,952 7,639,482 9.9%


The following is a breakdown of revenues by geographical area:

RevenuesbyGeographicalarea(€) 2015 2014 Inc%15 Inc,%14

Italy 36,745,815 36,544,928 46% 50%

europe 38,538,801 32,477,219 48% 44%

non e.u. 4,344,375 4,394,816 6% 6%

Total 79,628,991 73,416,963

16. Raw material Costs

The Costs for raw materials mainly includes the costs incurred in buying fuel, tires and workshop materials used for all the resources of the Group’s Companies. It has quickly decreased by 133 thousand euro, passing from 1.151 million to 1.018 million Euros.

17. Services Costs

Services costs are analyzed as follows:

Servicescosts(€) 2015 2014 Delta %

railroad transport Services (22,335,737) (20,465,557) (1,870,179) 9.14%

Highway transport Services (23,940,265) (23,032,735) (907,530) 3.94%

terminal services (4,910,319) (4,214,327) (695,992) 16.51%

Maritime transport services (5,970,256) (5,433,695) (536,561) 9.87%

Services railway traction (3,272,805) (2,508,417) (764,388) 30.47%

Insurance Costs (494,432) (451,133) (43,299) 9.60%

expenses for Meals and lodging (445,759) (388,271) (57,488) 14.81%

Maintenance (1,642,913) (1,009,197) (633,715) 62.79%

Commercial services (610,499) (471,754) (138,745) 29.41%

Consultations (341,395) (340,602) (793) 0.23%

directors and auditors Compensation (228,834) (232,976) 4,142 (1.78%)

utilities (145,066) (135,911) (9,155) 6.74%

other costs general (983,231) (810,659) (172,572) 21.29%

Total (65,321,511) (59,495,234) (5,826,276) 9.79%

Rising costs is proportional to the increase in production. In particular, we highlight how the increase of maintenance costs is due both to the increase of the fleet of locomotives, and the rising maintenance costs for railway wagons.


18. Compensation of Directors and Auditors

Compensation of directors and auditors are analyzed as follows:

CompensationofDirectorsandauditors(€) 2015 2014 Delta

directors (228,834) (205,450) (23,384)

auditors (44,761) (61,168) 16,407

Total (273,595) (266,618) (6,977)

19. Costs for leases and rentals

Costsforleasesandrentals(€) 2015 2014 Delta

rental of rail material (2,122,774) (2,323,535) 200,761

leases of properties (695,902) (733,011) 37,109

other leases costs (41,588) (17,165) (24,423)

Total (2,860,264) (3,073,711) 213,445

This includes freight rates for locomotives and railway wagons, as well as the rental payments for areas used by the Group to carry on its business. The railway equipment rental decreases are due to the re-duction of leased wagons followed by the purchase of own wagons.

20. Personnel costs

Personnel costs are analyzed as follows:

personnelcosts(€) 2015 2014 Delta

Wages and salaries 5,519,077 5,168,143 350,934

Social security contributions 1,592,471 1,520,075 72,396

Severance indemnity 359,077 314,827 44,250

other costs 88,440 4,535 83,905

Total 7,559,065 7,007,580 551,485

The average number of employees of the Group’s companies included in consolidation for the 2015 fi-nancial year is analyzed as follows:

n.employees

executives 2

Managers 9

Clerks 47

train drivers and rail operators 48

truck drivers 18

labourers 8

Total 132 5.ConsolidatedFinancialStatementsGTS2015 [99]

21. Amortization

Below amortization recorded in the statement of operations for each asset category:

Tangibleassets(€) 2015 2014 Delta amm.

land and buildings 183,251 171,318 11,933

Machinery and equipment 1,715,110 1,279,541 435,569 3% - 15%

Industrial and commercial equipment 7,709 7,483 226 12%-20 %

other assets 331,956 390,415 (58,459) 10%-20%

Total amortization of tangible assets 2,238,026 1,848,757 389,269

Intangibleassets(€) 2015 2014 Delta amm.

Set-up costs 189,759 184,640 5,119 20% -25%

Industrial and intellectual property rights 51,938 48,418 3,520 20% -25%

other intangible assets 83,017 72,909 10,108 20% -25%

Total amortization of intangible assets 324,714 305,967 18,747

22. Provision charges for risks and liabilities

Provisions for costs exist in order to be divided among the various years, following the principle of responsibility, the cost for major maintenance of locomotives by the contract, which will be supported to achieve the expected mileage in the maintenance plan required to be able to circulate in the national network in accordance with the current legislation on safety in the rail traffic. The provision for the current financial year amounted to € 354,376 versus € 294,300 in 2014. In order to adjust the receivables to their estimated collectability steps were taken to increase the provision for doubtful receivables of more € 402,000.

23. Financial income and charges

Financialincome(€) 2015 2014 Delta

Interest income bank 1,128 11,667 (2,714)

Interest income on governing grants 80,410 88,626 (8,216)

Financial discounts 138,032 129,154 8,878

Total Active Financial management 219,570 229,447 67,658

Interest on contributions referring to loans to the Ministry of Infrastructure and Transport delivered with delay.


Financialcharges(€) 2015 2014 Delta

on loans 503,434 380,404 123,030

on advances on invoices 11,010 19,304 (8,294)

on bank accounts 208 96 112

others 7,922 54,245 (46,323)

Total financial charges 522,574 454,049 68,525

Interest charges on loans include charges paid against medium and long-term financing and against financial leasing.

24. Extraordinary income and charges

This section mainly includes income and charges referring to previous financial year.

25. Income taxes

The Group’s consolidated companies are subject to the following income tax rates:

2015

IreS 27.5%

Irap 3.90%-4.82%

Income taxes are composed as follows:

Taxes (€) 2015 2014

Ires - current income tax 1,142,880 772,541

Irap - current income tax 233,671 392,464

Ires deferred taxes charges (39,316) (85,637)

Irap deferred taxes charges - -

Ires deferred taxes benefits (65,602) (83,621)

Irap deferred taxes benefits - -

Total 1,271,634 995,747


Below a scheme of reconciliation regarding Income taxes of Companies of current year.

Reconciliationbetweentheoreticaltaxesonnetincomeandfiscaltaxableincome(€)

Rate Taxes Ires

Before taxes result 4,393,797 27.50% 1,208,294

temporary differences taxable in subsequent years (1,301,239) 27.50% (357,841)

temporary differences deductible in subsequent years 412,867 27.50% 113,538

reversal of temporary differences from previous years 849,246 27.50% 233,543

permanent differences 320,131 27.50% 88,036

non-taxable income (518,875) 27.50% (142,691)Operating losses carry-forwards from current year/Taxable income 4,155,927 27.50% 1,142,994


CONTO ECONOMICO al 31.12.2015

CONTO ECONOMICO al 31.12.2015

CASh FLOw STATEmENT

2015 2014€/1,000

Cash flow from operating activitiesnet earning (loss) 3,122 2,473

adjustement reconciliat income (loss) to net cash provided by operating activitiesamortization 2,563 2,155depretation 664 582 allowance for debt account 358 369other non monetary activities 338 - Severance pay (241) (125)

Changes in assets and liabilitiestrade receivables (604) (3,310)other receivables 239 575Suppliers 1,620 727tax 1,744 1,192

other debts (198) (135)other liabilities 546 138accrued income and prepaid expanses (215) (195)

Total 6,815 1,973

Cash generated by operating activities 9,937 4,446

Cash flow from investing activitiesproperty plant & equipement

additions (9,534) (9,176)disinvestments - (118)

other assetsInvestments (147) (123)disinvestments 15 845

Cash generated from financing activities (9,666) (8,572)

new long terms debts and leasing 8,031 5,488 reimbursement bank overdraft (4,365) (3,940)

Bank (1,496) 1,251

Cash generated (used) from financing activities 2,169 2,799

Increase & decrease in cash 2,440 (1,327)

Cash & cash equivalent at beginning of year 723 2,050

Cash & cash equivalent as of end of the year 3,163 723






GRI-G4GuIDElInESThe table below guides the reader through the identification of information required by GRI G4 guidelines. For every type of information, indication is given of: the code required by the standard, the number of the page where the piece of data can be found, the level of compliance with the standard:

● identifies a piece of information fully reported, in other words data and information totally meet the standard requirements

○ identifies a piece of information partially reported, in other words data and information meet the standard requirements only partially

— identifies a piece of information that is not reported because it is not available or because it is not significant and, therefore, not applicable in the specific case.

GRICoDE InDICaToR lEVEl paGESTRaTEGyanDanalySISg4-1 provide a statement from the most senior decision-maker of the

organization (such as Ceo, chair, or equivalent senior position) about the relevance of sustainability to the organization and the organization’s strategy for addressing sustainability

● 4

g4-2 provide a description of key impacts, risks, and opportunities ○ 25–49oRGanIZaTIonalpRoFIlEg4-3 report the name of the organization ● 11g4-4 report the primary brands, products, and services ● 10g4-5 report the location of the organization’s headquarters ● 11g4-6 report the number of countries where the organization operates,

and names of countries where either the organization has significant operations or that are specifically relevant to the sustainability topics covered in the report

● 12

g4-7 report the nature of ownership and legal form ● 14g4-8 report the markets served (including geographic breakdown, sectors

served, and types of customers and beneficiaries).● 6

g4-9 report the scale of the organization ● 7g4-10 report the total number of employees by employment contract and

gender, by employment type and gender, total workforce (by region and gender) by employees and supervised workers and by gender

○ 51_53

g4-11 report the percentage of total employees covered by collective bargaining agreements

● 52

g4-12 describe the organization’s supply chain ● 63g4-13 report any significant changes during the reporting period regarding

the organization’s size, structure, ownership, or its supply chain

● 63

g4-14 report whether and how the precautionary approach or principle is addressed by the organization

● 25_49

g4-15 list externally developed economic, environmental and social charters, principles, or other initiatives to which the organization subscribes or which it endorses

● 27

g4-16 list memberships of associations (such as industry associations) and national or international advocacy organizations

● 70

5.ConsolidatedFinancialStatementsGTS2015[109]

GRICoDE InDICaToR lEVEl paGEIDEnTIFIEDmaTERIalaSpECTSanDBounDaRIESg4-17 list all entities included in the organization’s consolidated financial

statements or equivalent documents● 9

g4-18 explain the process for defining the report content and the aspect Boundaries and how the organization has implemented the reporting principles for defining report Content

● 8_9

g4-19 list all the material aspects identified in the process for defining report content

● 31_32

g4-20 For each material aspect, report the aspect Boundary within the organization

● 31_32

g4-21 For each material aspect, report the aspect Boundary outside the organization

● 8_9

g4-22 report the effect of any restatements of information provided in previous reports, and the reasons for such restatements

● 8_9

g4-23 report significant changes from previous reporting periods in the Scope and aspect Boundaries

● 8_9

STaKEHolDEREnGaGEmEnTg4-24 provide a list of stakeholder groups engaged by the organization ● 28_29g4-25 report the basis for identification and selection of stakeholders with

whom to engage● 28_29

g4-26 report the organization’s approach to stakeholder engagement, including frequency of engagement by type and by stakeholder group, and an indication of whether any of the engagement was undertaken specifically as part of the report preparation process

● 28_30

g4-27 report key topics and concerns that have been raised through stakeholder engagement, and how the organization has responded to those key topics and concerns, including through its reporting. report the stakeholder groups that raised each of the key topics and concerns

○ 30

REpoRTpRoFIlEg4-28 reporting period (such as fiscal or calendar year) for information provided ● 8g4-29 date of most recent previous report (if any) ● 8g4-30 reporting cycle (such as annual, biennial) ● 8g4-31 provide the contact point for questions regarding the report or its contents ● 9g4-32 report the ‘in accordance’ option the organization has chosen. report

the reference to the external assurance report, if the report has been externally assured

● 9

g4-33 report the organization’s policy and current practice with regard to seeking external assurance for the report

—

GoVERnanCEg4-34 report the governance structure of the organization, including committees

of the highest governance body. Identify any committees responsible for decision-making on economic, environmental and social impacts

○ 14

g4-35 report the process for delegating authority for economic, environmental and social topics from the highest governance body to senior executives and other employees

○ 9

g4-36 report whether the organization has appointed an executive-level position or positions with responsibility for economic, environmental and social topics, and whether post holders report directly to the highest governance body

● 8

g4-37 report processes for consultation between stakeholders and the highest governance body on economic, environmental and social topics. If consultation is delegated, describe to whom and any feedback processes to the highest governance body

● 28_30

g4-38 report the composition of the highest governance body and its committees ● 14g4-39 report whether the Chair of the highest governance body is also an

executive officer (and, if so, his or her function within the organization’s management and the reasons for this arrangement)

○ 14


GRICoDE InDICaToR lEVEl paGEg4-40 report the nomination and selection processes for the highest

governance body and its committees, and the criteria used for nominating and selecting highest governance body members

● 14

g4-41 report processes for the highest governance body to ensure conflicts of interest are avoided and managed

○ 26

g4-42 report the highest governance body’s and senior executives’ roles in the development, approval, and updating of the organization’s purpose, value or mission statements, strategies, policies, and goals related to economic, environmental and social impacts

—

g4-43 report the measures taken to develop and enhance the highest governance body’s collective knowledge of economic, environmental and social topics

○ 17

g4-44 report the processes for evaluation of the highest governance body’s performance with respect to governance of economic, environmental and social topics

○ 17

g4-45 report the highest governance body’s role in the identification and management of economic, environmental and social impacts, risks, and opportunities. Include the highest governance body’s role in the implementation of due diligence processes

—

g4-46 report the highest governance body’s role in reviewing the effectiveness of the organization’s risk management processes for economic, environmental and social topics

—

g4-47 report the frequency of the highest governance body’s review of economic, environmental and social impacts, risks, and opportunities

—

g4-48 report the highest committee or position that formally reviews and approves the organization’s sustainability report and ensures that all material aspects are covered

● 8

g4-49 report the process for communicating critical concerns to the highest governance body

● 58

g4-50 report the nature and total number of critical concerns that were communicated to the highest governance body and the mechanism(s) used to address and resolve them

—

g4-51 report the remuneration policies for the highest governance body and senior executives

—

g4-52 report the process for determining remuneration. report whether remuneration consultants are involved in determining remuneration and whether they are independent of management. report any other relationships which the remuneration consultants have with the organization

—

g4-53 report how stakeholders’ views are sought and taken into account regarding remuneration, including the results of votes on remuneration policies and proposals, if applicable

○ 50_53

g4-54 report the ratio of the annual total compensation for the organization’s highest-paid individual in each country of significant operations to the median annual total compensation for all employees (excluding the highest-paid individual) in the same country

—

g4-55 report the ratio of percentage increase in annual total compensation for the organization’s highest-paid individual in each country of significant operations to the median percentage increase in annual total compensation for all employees (excluding the highest-paid individual) in the same country

—

ETHICSanDInTEGRITyg4-56 describe the organization’s values, principles, standards and norms of

behavior such as codes of conduct and codes of ethics● 16

g4-57 report the internal and external mechanisms for seeking advice on ethical and lawful behavior, and matters related to organizational integrity, such as helplines or advice lines

○ 47

g4-58 report the internal and external mechanisms for reporting concerns about unethical or unlawful behavior, and matters related to organizational integrity, such as escalation through line management, whistleblowing mechanisms or hotlines

○ 47


GRICoDE InDICaToR lEVEl paGEEConomICpERFoRmanCEg4-eC1 report the direct economic value generated and distributed

(eVg&d) ● 46_47

g4-eC2 report risks and opportunities posed by climate change that have the potential to generate substantive changes in operations, revenue or expenditure

—

g4-eC3 Where the plan’s liabilities are met by the organization’s general resources, report the estimated value of those liabilities

—

g4-eC4 report the total monetary value of financial assistance received by the organization from governments during the reporting period

—

maRKETpRESEnCEg4-eC5 When a significant proportion of the workforce is compensated

based on wages subject to minimum wage rules, report the ratio of the entry level wage by gender at significant locations of operation to the minimum wage.

○ 51

g4-eC6 report the percentage of senior management at significant locations of operation that are hired from the local community

○ 51

InDIRECTEConomICImpaCTSg4-eC7 report the extent of development of significant infrastructure

investments and services supported (none)—

g4-eC8 report examples of the significant identified positive and negative indirect economic impacts the organization has

● 18_24

pRoCuREmEnTpRaCTICESg4-eC9 report the percentage of the procurement budget used for

significant locations of operation spent on suppliers local to that operation (such as percentage of products and services purchased locally)

○ 61

maTERIalSg4-en1 report the total weight or volume of materials that are used to

produce and package the organization’s primary products and services during the reporting period

—

g4-en2 report the percentage of recycled input materials used to manufacture the organization’s primary products and services (none)

—

EnERGyg4-en3 energy consumption within the organization ● 73g4-en4 energy consumption outside of the organization ● 73g4-en5 report the energy intensity ratio —g4-en6 reduction of energy consumption ● 73g4-en7 reductions in energy requirements of products and services —WaTERg4-en8 report the total volume of water withdrawn from the following

sources—

g4-en9 report the total number of water sources significantly affected by withdrawal by type

—

g4-en10 report the total volume of water recycled and reused by the organization

—


GRICoDE InDICaToR lEVEl paGEBIoDIVERSITyg4-en11 report the following information for each operational site owned,

leased, managed in, or adjacent to, protected areas and areas of high biodiversity value outside protected areas

—

g4-en12 description of significant impacts of activities, products, and services on biodiversity in protected areas and areas of high biodiversity value outside protected areas

—

g4-en13 Habitats protected or restored —g4-en14 report the total number of IuCn red list species and national

conservation list species with habitats in areas affected by the operations of the organization, by level of extinction risk

—

EmISSIonSg4-en15 direct greenhouse gas (ghg) emissions ● 72_73g4-en16 energy indirect greenhouse gas (ghg) emissions ● 72_73g4-en17 other indirect greenhouse gas (ghg) emissions (none) —g4-en18 report the gHg emissions intensity ratio —g4-en19 reduction of greenhouse gas (ghg) emissions ● 72_73g4-en20 emissions of ozone-depleting substances (ods) —g4-en21 noX, SoX, and other significant air emissions (none) —EFFluEnTSanDWaSTEg4-en22 total water discharge by quality and destination —g4-en23 total weight of waste by type and disposal method ● 76g4-en24 report the total number and total volume of recorded significant

spills—

g4-en25 Weight of transported, imported, exported, or treated waste deemed hazardous under the terms of the basel convention annex i, ii, iii, and viii, and percentage of transported waste shipped internationally

● 76

g4-en26 report water bodies and related habitats that are significantly affected by water discharges based on the criteria described in the Compilation section below, adding information on: size of water body and related habitat, whether the water body and related habitat is designated as a protected area (nationally or internationally), biodiversity value (such as total number of protected species)

—

pRoDuCTSanDSERVICESg4-en27 report quantitatively the extent to which environmental impacts

of products and services have been mitigated during the reporting period

● 71_76

g4-en28 report the percentage of reclaimed products and their packaging materials for each product category (none)

—

ComplIanCEg4-en29 Monetary value of significant fines and total number of non-

monetary sanctions for non-compliance with environmental laws and regulations

—

TRaSpoRTg4-en30 Significant environmental impacts of transporting products and

other goods and materials for the organization’s operations, and transporting members of the workforce

○ 71_74


GRICoDE InDICaToR lEVEl paGEoVERallg4-en31 total environmental protection expenditures and investments by

type○ 76

SupplIEREnVIRonmEnTalaSSESSmEnTg4-en32 report the percentage of new suppliers that were screened using

environmental criteria○ 61

g4-en33 report the number of suppliers subject to environmental impact assessments

● 61

EnVIRonmEnTalGRIEVanCEmECHanISmSg4-en34 report the total number of grievances about environmental

impacts filed through formal grievance mechanisms during the reporting period

○ 69

EmploymEnTg4-la1 report the total number and rate of new employee hires during

the reporting period, by age group, gender and region○ 51_53

g4-la2 report the benefits which are standard for full-time employees of the organization but are not provided to temporary or part-time employees, by significant locations of operation

—

g4-la3 return to work and retention rates after parental leave, by gender —laBoR/manaGEmEnTRElaTIonSg4-la4 report the minimum number of weeks’ notice typically provided

to employees and their elected representatives prior to the implementation of significant operational changes that could substantially affect them

—

oCCupaTIonalHEalTHanDSaFETyg4-la5 report the level at which each formal joint management-worker

health and safety committee typically operates within the organization (none)

—

g4-la6 type of injury and rates of injury, occupational diseases, lost days, and absenteeism, and total number of work-related fatalities, by region and by gender

● 56

g4-la7 report whether there are workers who are involved in occupational activities who have a high incidence or high risk of specific diseases

● 56

g4-la8 report whether formal agreements (either local or global) with trade unions cover health and safety (none)

—

TRaInInGanDEDuCaTIong4-la9 average hours of training per year per employee by gender, and

by employee category○ 54

g4-la10 report on the type and scope of programs implemented and assistance provided to upgrade employee skills

○ 54

g4-la11 report the percentage of total employees by gender and by employee category who received a regular performance and career development review during the reporting period

—

DIVERSITyanDEQualoppoRTunITyg4-la12 Composition of governance bodies and breakdown of employees

per employee category according to gender, age group, minority group membership, and other indicators of diversity

○ 51_52


GRICoDE InDICaToR lEVEl paGEEQualREmunERaTIonFoRWomEnanDmEng4-la13 report the ratio of the basic salary and remuneration of women

to men for each employee category, by significant locations of operation

—

SupplIERaSSESSmEnTFoRlaBoRpRaCTICESg4-la14 report the percentage of new suppliers that were screened using

labor practices criteria○ 63

g4-la15 Significant actual and potential negative impacts for labor practices in the supply chain and actions taken

—

laBoRpRaCTICESGRIEVanCEmECHanISmSg4-la16 report the total number of grievances about labor practices

filed through formal grievance mechanisms during the reporting period (none)

—

InVESTImEnTg4-Hr1 report the total number and percentage of significant investment

agreements and contracts that include human rights clauses or that underwent human rights screening (aspects already covered by the Italian legislation)

—

g4-Hr2 report the total number of hours in the reporting period devoted to training on human rights policies or procedures concerning aspects of human rights that are relevant to operations (aspects already covered by the Italian legislation)

—

non-DISCRImInaTIong4-Hr3 report the total number of incidents of discrimination during

the reporting period (aspects already covered by the Italian legislation)

—

FREEDomoFaSSoCIaTIonanDCollECTIVEBaRGaInInGg4-Hr4 operations and suppliers identified in which the right to exercise

freedom of association and collective bargaining may be violated or at significant risk, and measures taken to support these rights (aspects already covered by the Italian legislation)

—

CHIlDlaBoRg4-Hr5 operations and suppliers identified as having significant risk for

incidents of child labor, and measures taken to contribute to the effective abolition of child labor (aspects already covered by the Italian legislation)

—

FoRCEDoRCompulSoRylaBoRg4-Hr6 operations and suppliers identified as having significant risk

for incidents of forced or compulsory labor, and measures to contribute to the elimination of all forms of forced or compulsory labor (aspects already covered by the Italian legislation)

—

SECuRITypRaCTICESg4-Hr7 report the percentage of security personnel who have received

formal training in the organization’s human rights policies or specific procedures and their application to security (aspects already covered by the Italian legislation)

—

InDIGEnouSRIGHTSg4-Hr8 report the total number of identified incidents of violations

involving the rights of indigenous peoples during the reporting period (aspects already covered by the Italian legislation)

—


GRICoDE InDICaToR lEVEl paGEaSSESSmEnTg4-Hr9 report the total number and percentage of operations that have

been subject to human rights reviews or human rights impact assessments, by country (aspects already covered by the Italian legislation)

—

SupplIERHumanRIGHTSaSSESSmEnTg4-Hr10 report the percentage of new suppliers that were screened using

human rights criteria (aspects already covered by the Italian legislation)

—

g4-Hr11 Significant actual and potential negative human rights impacts in the supply chain and actions taken (aspects already covered by the Italian legislation)

—

HumanRIGHTSGRIEVanCEmECHanISmSg4-Hr12 report the total number of grievances about human rights

impacts filed through formal grievance mechanisms during the reporting period (aspects already covered by the Italian legislation)

—

loCalCommunITIESg4-So1 report the percentage of operations with implemented local

community engagement, impact assessments, and development programs

● 65_67

g4-So2 operations with significant actual and potential negative impacts on local communities

● 65_67

anTI-CoRRupTIong4-So3 total number and percentage of operations assessed for risks

related to corruption and the significant risks identified—

g4-So4 report the total number and percentage of governance body members that the organization’s anticorruption policies and procedures have been communicated to, broken down by region (none)

—

g4-So5 report the total number and nature of confirmed incidents of corruption (none)

—

puBlICpolICyg4-So6 report the total monetary value of financial and in-kind political

contributions made directly and indirectly by the organization by country and recipient/beneficiary (none)

—

anTI-CompETITIVEBEHaVIoRg4-So7 report the total number of legal actions pending or completed

during the reporting period regarding anticompetitive behavior and violations of anti-trust and monopoly legislation in which the organization has been identified as a participant (none)

—

ComplIanCEg4-So8 Monetary value of significant fines and total number of

non-monetary sanctions for non-compliance with laws and regulations

● 70

SupplIERaSSESSmEnTFoRImpaCTSonSoCIETyg4-So9 report the percentage of new suppliers that were screened using

criteria for impacts on society—

g4-So10 Significant actual and potential negative impacts on society in the supply chain and actions taken

—


GRICoDE InDICaToR lEVEl paGEGRIEVanCEmECHanISmSFoRImpaCTSonSoCIETyg4-So11 report the number of suppliers subject to assessments for

impacts on society—

CuSTomERHEalTHanDSaFETyg4-pr1 report the percentage of significant product and service

categories for which health and safety impacts are assessed for improvement

—

g4-pr2 report the total number of incidents of non-compliance with regulations and voluntary codes concerning the health and safety impacts of products and services within the reporting period

—

pRoDuCTanDSERVICElaBElInGg4-pr3 type of product and service information required by the

organization’s procedures for product and service information and labeling, and percentage of significant product and service categories subject to such information requirements

—

g4-pr4 total number of incidents of non-compliance with regulations and voluntary codes concerning product and service information and labeling, by type of outcomes

—

g4-pr5 results of surveys measuring customer satisfaction —maRKETInGCommunICaTIonSg4-pr6 results of surveys measuring customer satisfaction (none) —g4-pr7 total number of incidents of non-compliance with regulations and

voluntary codes concerning marketing communications, including advertising, promotion, and sponsorship, by type of outcomes (none)

—

CuSTomERpRIVaCyg4-pr8 total number of substantiated complaints regarding breaches of

customer privacy and losses of customer data● 62

ComplIanCEg4-pr9 report the total monetary value of significant fines for non-

compliance with laws and regulations concerning the provision and use of products and services

● 62


BARI (IT)HeadquarterVia del Tesoro, 1570132 BariTel. +39 080 5820411Fax +39 080 5820499

ROTTERDAM (NL)G.T.S. Nederland B.V.Vesteland, 38J3011 BM RotterdamTel. +31 (0) 10 7371 685 orext.686

www.gtslogistic.comwww.gtsrail.comwww.gtsgo.itinfo@gtslogistic.com

LONDON (UK)GTS Logistics UK LtdUnit G10, The BlocSpringfield Way, AnlabyHull HU10 6RJTel. +44 (1) 48 2427 060

Printed on paper (FSC) and ink environment friendlyMay 2015

Printed by: Ragusa Print & Multimediawww.ragusaprintemultimedia.it

All photos were taken by Antonio & Roberto Tartaglione unless otherwise stated.

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INTEGRATED ANNUAL REPORT 2015

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Documents

GTS Group 2015 Integrated Annual Report