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Strictly Confidential
PAOLO GALLO
Cape Town - October 1 and 2, 2015
Building a Community of Leaders
for Growing their Enterprises in the two Countries and Continents
The European House - Ambrosetti is named best Private Think Tank in Italy, 4th in Europe, and in
top 20 in the World in the University of Pennsylvania’s “2015 Global Go To Think Tanks Report”

© 2015 The European House - Ambrosetti S.p.A. ALL RIGHTS RESERVED. This document has been created and prepared by TEH-A for
the recipient client. No part of it may be reproduced in any way whatsoever for third parties, or used by the same, without the written
authorization of TEH-A. It may not be used separately from the presentation and/or comments that accompanied it.
Strictly Confidential
The European House - Ambrosetti has been named best Private Think Tank in Italy and
4th in Europe, in the University of Pennsylvania’s “2015 Global Go To Think Tanks Report”
Cape Town - October 2, 2015
Building a community of leaders for growing
their enterprises in the two countries and continents
Italian railway stations: Grandi Stazioni case study
Paolo Gallo – Chief Executive Officer, Grandi Stazioni

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Grandi Stazioni: who we are
The mission
Our mission is to manage, refurbish and commercialize the main Italian railway
stations, in order to provide visitors with the highest service level and the best experience while
maximizing shareholder value.
Key numbers
 14 stations in Italy and 2 abroad
 750 million contacts each year
 Over 900 million € investment program
 Over 200 million € turnover
 1.5 million sqm of real estate
 500 shops opened so far…
 …and 1,500 by 2020
Our shareholders
60% Ferrovie dello Stato – 40% ES (Edizione/Benetton, Pirelli, Vianini/Caltagirone, SNCF)

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Grandi Stazioni: Our Value Proposition
The smartest way to enter the Italian
Retail market for top tenants
Milion visitors/year with
high purchase behaviour
750
Innovations to improve the customer
experience and digital marketing
New retail spaces located in
prestigious and
renewed historic buildings
Strong partnership approach
between Grandi Stazioni and its tenants

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The youngest,
most socially
active cluster with
the higest
spending capacity
among the Italian
population
Pepole under
35 yrs old
26
30
Grandi Stazioni consumers are young, curious, hi-tech and with high
spending capacity
44
29
42
24
26
11
Italian Average
GS
Percentage
Interested
in new
technologies
High spending
for personal
apparel
Willing to try out
new products
Purchase of products and
services through internet
24
15

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Grandi Stazioni is implementing a growth plan with clear targets for 2020
From 450 to ~1.400 stores: the largest «widespread» shopping mall
in Italy (~€1,2 bn store turnover, 5x the current largest Italian malls)
Retail spaces: ~230.000 mq (2,5x vs. today)
Distinctive customer experience: cleanliness, security and
comfort as in the best shopping malls
Digital stations: building a direct relationship with visitors through
targeted promotions and connectivity in the station (Wi-Fi)
850 million visitors per year (+13% vs. today)
Repositioning of the category mix to approach a higher
customers target through segmentation and zoning
In
2020

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Grandi Stazioni focuses in 3 key areas of business
Key activities
Refurbishment
and investment
management
 Refurbish prestigious historical rail stations and buildings
 Set up the buildings to maximize their appeal to visitors, retailers,
and advertisers
 Plan and execute works on a large scale and in critical urban areas
 Provide key services to tenants and visitors: maintenance, cleaning,
security, and utilities
 Manage parking lots in strategic areas near the key stations to serve
increasing travelers and non-travelers demand
Facility
management
and parking
 Manage a “shopping malls network” in the heart of the main Italian
cities and abroad
 Commercialize Media&Advertising space by offering a set of
increasingly digital and interactive assets
 Develop marketing campaigns to station visitors through traditional
and digital tools: co-marketing initiatives, promotional events,
smartphone app, websites, wi-fi, ...
Commercial
activities
1
2
3
2a
2b
2c

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Refurbishment initiatives in the recent past significantly improved
historical Italian railway stations and other projects are in place for the
future
Milano Centrale: restyling
of the «Galleria delle
Carrozze» for Expo 2015
(project by Giugiaro)
MetroNapoli: commercial
gallery with 24 new spaces
for retail leasing (project by
D. Perrault)
Roma Termini: new
commercial spaces and
restyling of the existing
commercial gallery
Already achieved … … and what is coming up
1
Milano Centrale:
refurbishment of «Magazzini
Raccordati» (130 shops and
40,000 sqm area) - (project
by Giugiaro)

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7 new projects are on their way to further expand the offering
Project Available from…
2015
2016 (first parcel)
2017-18 (second parcel)
2018
2017
2017-18 (first parcel)
2019-20 (second parcel)
2017
A
C
D
E
F
B
G
Milano Centrale: 6 new glass spaces in Galleria delle
Carrozze for the EXPO 2015 event
Metronapoli: creation of 24 new retail spaces of ~6,000
sqm in piazza Garibaldi
Roma Termini: new F&B area of 7,000 sqm
Roma Termini: restyling of the shopping gallery
(«Galleria gommata») at the platform level
Venezia Santa Lucia: refurbishment of Edificio 4 with
1,500 sqm of new retail spaces
Milano Centrale: refurbishment of Magazzini Raccordati
with the creation of ~130 new commercial spaces
Creation of a shopping gallery in the new high-speed
railway station of Bologna
2015 (first parcel)
2016 (second parcel)
Finalized
1

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Refurbishment of Piazza Garibaldi in front of Napoli station and
creation of MetroNapoli commercial areas
1

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Refurbishment of Roma Tiburtina station and creation of new
commercial areas
1

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Roma (x2)
Milano
Napoli
Torino
Firenze
Venezia (x2)
Verona
Bologna
Genova (x2)
Palermo
Bari
Grandi Stazioni’s network of “shopping malls” is positioned in the
central areas of the most prominent Italian cities and will significantly
grow in the near future
Praga
Shops
Retail
square
meters 1
Visitors
(million)
2014 2020
~500
~1,500 x3.0
~220
~95
x2.3
~870
~750
x1.2
1 Includes only commercial areas
2
Prague

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Grandi Stazioni network hosts a mix of International and Italian brands
and has started a successful journey of high-end repositioning
2A
New brands – repositioning towards high-end brands
Existing brands – a wide range of brand with consolidated market reputation

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Turnover’ tenants per square meter is the same as high street
Food
25% sqm
Services
15% sqm
Retail
60% sqm
Best performer tenants’ turnover per sqm
‘000 Euro/sqm
2A
25
50
20
50
Jewelry
Fashion Cosmetics
and beauty
Food &
beverage

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At Milano
Centrale
At Roma
Termini
Considered
as the most
beautiful
store of the
group
First SPA
within a
railway
station
First example
of new
F&B
format for
Autogrill
First
fitness
center
within a
railway
station
The biggest
store with
4 levels of
2.500 sqm
First store
opened in
Italy
Many retailers implemented innovative projects within Grandi
Stazioni network
2A

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Success stories: Desigual became a widespread brand in Italy by
opening its first stores within GS network
Key figures in 20141
Number of stores
in Grandi Stazioni
8
Total covered area
~2.200 mq
Average area per
store
~270 mq
Number of stores
in Italy
76
Openings timeline
March 2011
Entrance in
the Italian
market
through the
opening at
Milano Centrale
(60 sqm)
November
2011
Napoli
Centrale
(60 sqm)
Torino Porta
Nuova (300
sqm)
December
2011
July
2012
Roma
Termini
(350 sqm)
Verona
Porta
Nuova
(150 sqm)
August
2012
December
2012
Milano
Centrale –
Flagship
store
(1.000
sqm)
Venezia
Santa Lucia
(150 sqm)
Roma
Tiburtina
(120 sqm)
December
2013
March
2015
Firenze
SMN (90
sqm)
2A

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Calvin Klein opening in Galleria delle Carrozze Milano Centrale - project
by Giugiaro
2A

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Shopping Garden in Venezia Santa Lucia
2A

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Today Tomorrow: reduce by 30% footprint
By 2020 GS media has planned a significant investments to
improve technology and design of its equipment to double
again its market share
GS Media has increased revenues (+4% yearly increase)
doubling its market share in the last 5 years.
Equipment:
 1.000 VDC - 160 interactive Digitotems with touch
features, webcam and NFC reader, 10 Videowall
 >600 traditional equipments
Grandi Stazioni is moving to a digital media and advertising offering
2B
 Total renewal of the VDC (700 new VDC screens) and
extension of existing digital network (including 160 new
Digitotem)
 12 new Iconic and spectacular equipments designed by
Giugiaro (Milano Centrale)
 Digital transparent panels to be installed in Roma Termini
 5 new Maxiled across the Network

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Some large and recurring clients consistently invest in advertising with
the GS Media network
Engagement with
equipments
Traditional and
digital
Total domination with
engagement
campaings
Largest domination, with
high adv spending
on large and
traditional
equipment
Interactive digital campaings
with audience measurement
Advertising campaings
integrating equipments
traditional and
pop-up store
2B

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Adidas launched a huge interactive campaing by controlling all the
Digital products for the launch of the Predators
Brand
1-21 Sptember
2014
(interactive
digital
campaing on
Digimupi
circuit)
Time
Milan Centrale
Station
Tradizitional,
Digital
GS Media
equip-
ment
Engagement based on
digital interactive
equipment; campaing
continued for 21 days
(75-100% air time) with
audience monitoring
2B

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Armani e Dolce&Gabbana, with these consistent investment in adv,
have the largest domination in the Grandi Stazioni network
Brand
12 months
(Armani)
5-6 months
(D&G, in Milano
during fashion
weeks)
Time
Network GS
(Armani)
Milan Centrale
(D&G)
Stations
Traditional
GS Media
equip-
ment
Year long domination
in all the GS network
(Armani) or focused on a
specific timeline and one
specific station (D&G) with
large traditional equipment
2B

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Vodafone acquired huge visibility in the short term through campaings
in Napoli and Milan stations
Brand
2014
Time
Napoli Centrale,
Milano Centrale
Stations
Tradizionale,
Engagement
Equip-
ment Full monitoring of the
flows through
integration of large
traditional and
engagement equipment
2B

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In order to pursue its innovative marketing strategy, Grandi Stazioni is
focusing on some primary initiatives
2C
Goal
 Attract visitors and increase
traffic
 Improve the conversion rate
(visitors who purchase)
 Increase the average ticket
 Build a strong customer base
 Offer a valuable and
exclusive service to visitors
Digital marketing primary initiatives
 App and Websites restyling with additional
services (e.g. train timetables, maps)
 Customized push notifications
App ‘Around
Station’, Web
and Social
repositioning
2
 Free Wifi connectivity within 2015 in 5
major stations
 Visitors geolocalization and flows tracking
Station WiFi
1
 Partnership with tenants to create
customized offers for visitors
 Partnership with train operators to reach a
wide range of passengers
Co-marketing
initiatives
3
 Engagement events to promote the
station
 Visitors data collection through contest
registration
Promotional
events
4

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Grandi Stazioni is launching concrete initiatives in order to improve the
customer experience of its railway stations
Launch of personalized digital marketing campaigns through the
implementation of free Wi-Fi in the 14 railway stations (6 already in 2015)
and relaunch of the app “Around Station”
Realization of new retail
spaces for ~130.000 sqm
Higher investments in
cleanliness, security and
comfort in order to improve the
customer experience
New services for travellers: luggage
storage, porter, shipping services
Positioning of GS network as a
“shopping gallery” by increasing
advertising expenditures
(+100% by 2018)
Digitalization of the
advertising equipment among
the entire network (+50% digital
and iconic systems)
2C

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Train schedule
New
notification
system
New layout
and wayfinding
New stations
App <Around Station>
2C

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Ongoing events for promoting GS Commercial Galleries and building a
database of the railway station users
Goals
 Promoting GS
Commercial Galleries
 Building a database
of railway station
users
 Attract visitors
increasing traffic in
the station
 Enhance sales in the
commercial spaces
Activities
 Show (music, theatre,
urban garden)
 Contest through
registration
2C

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GS Digital Directory on Digitotem
2C

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Digitotem: new equipments and functionalities
New functions
Touch-
screen
Video
analytics
QR code
support
Webcam
Card
reader
Parfume
blowers
2C

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Going forward, Grandi Stazioni aims to further improve the services
offererd to tenants and visitors
3
Facility management
Key ongoing initiatives
Maintena
nce
 Daily maintenance in commercial
gallery areas; Front, glass walls and
ceilings maintenance
 Daily mainenance in commercial
gallery areas
 Front, glass walls and ceilings
maintenance
Parking: improve mobility
Cleaning
 Staff’s number and and cleaning
shift increase to improve service level
Security
 Staff’s number boost in the primary
stations; new gates to access
platforms
Utilities
 Light units substitution or upgrade
 Cost savings by energy efficiency:
LED installation, high efficiency boilers
installation, cogeneration, solar thermal
installation
14 new parkings opened over the next years
# car slot Opening year
 Verona Porta Nuova
 Genova
 Firenze SMN
 Milano
 Torino Porta Nuova
 Venezia Mestre
 Palermo Centrale
 Napoli
 Roma
 Bologna Centrale
 ~300
 ~400
 ~30
 ~700
 ~200
 ~300
 ~30
 ~750
 ~1400
 ~100
 2015
 2015
 2015
 2015/17
 2016
 2016
 2016
 2017/18
 2019/20
 2020
Total of
4.400
new
spaces
by 2020

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International Experience: GS Ceska

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Map Pictures
GS Ceska:
Prague station Hall

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GS Ceska:The New Hall offers several opportunities for
tourists, commuters, and people visiting the station
•Apparel and accessories
•Books and magazines
•Perfumery and jewelry
•Health and beauty
Retail (26 stores)
•Supermarket
•Confectionary
•Restaurant
•Fast-food
Food&beverage (18 stores)
•Bank
•Money exchange
•Travel agency
•Pharmacy
Services (22 stores)
A safe and clean railway station
thanks to a modern facility management

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Grandi Stazioni Ceska Republika has already brought the
New Hall to a new life
The New Hall was transformed into a
modern, clean and pleasant Station

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Map Pictures
GS Ceska:
Fanta station building in Prague

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Grandi Stazioni is going through a corporate reorganization that will lead
to the privatization of the retail business
From one Company…
 Commercial lease
 Directional lease
 Media & Advertising
 Facility Management
 Parkings
 Luggage deposit and toilets
 Engineering services
 Property
 GS Ceska
… to 3 Companies and privatization of GS Retail
Rationale
 Focus on
business areas
with similarity
of business,
counterparties
and business
objectives
 Increased
specialitization
GS
Retail
 Commercial lease
 Media & Advertising
 Luggage deposit and toilets
 GS Ceska
GS
Rail
 Facility Management
 Directional lease
 Parkings
 Ticket offices for train operators
 Engineering services
GS
Real
Estate
 Lease of property spaces
Privatization
process is
ongoing

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Grandi Stazioni’s skills are transferable to other countries as shown by the
participation in Czech Republic and several ongoing international discussions....
 Concession until 2046 to manage 2 stations in
Czech Republic
 Ongoing discussions for future collaboration with:
• Russia
• India
• Kazakhstan
• Saudi Arabia
 Continuous contacts with other major railway
company from other countries (e.g., Poland,
Turkey, Canada)
GS international networking
The effort in Czech Republic is a successful case of the GS
know-how internationalization
 Results Highlights: transformation of Prague station into a
modern, safe and functional transport&retail hub
 Ongoing work: Refurbishment and revitalization of historical
building (FantaBuilding) in Prague

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....could South Africa become one of GS partners in the future?
 Renewal and refurbishment of railway stations transforming them in attractive and safe
transportation&retail hubs, accompanying current PRASA effort of fleet renewal to deliver a full
turnaround of service/travel experience
 Shaping attractive and efficient retail spaces to further increase the value through cutting-edge
approach (e.g., station masterplan, zoning,…)
 Identification and retention of interesting retail tenants through a structured methodology
(e.g., brand database, sales funnel approach, revenue sharing model with tenants)
 Transfer of GS expertise also outside the railway stations context e.g., by helping the re-launch of
downtown areas or in other transportation hubs (e.g., cruise terminal)
Potential areas where GS could help South Africa

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Thank you for your time