RATP: sound results in 2014 confirm Group strategy

Transcription

1 PRESS RELEASE 16 March 2015 RATP: sound results in 2014 confirm Group strategy Solid operating and financial results A record year for investment Lower debt levels Strong international dynamic by subsidiaries Group revenue amounted to 5,257 M in 2014, a 3.4% increase over Subsidiaries contribution to Group revenue rose by 13.7% amounting to 914 M, i.e., 17.4% of the Group s overall activity. All the Group s regions of activity are profitable. Subsidiaries contribution has tripled in six years. Investment in the Paris region was a record 1,580 M. Cashflow at 990 M (up by 8.6%) easily covered net investment. The Group generated positive cash flow for the second year running and confirmed the contraction of its net debt levels. Net result, Group share, remained consistently high and stable at 298 M compared to 293 M in 2013, i.e., a net margin of 5.7%. The meeting of the RATP board of directors on Friday, 13 March chaired by Pierre Mongin reviewed and drew up the RATP Group consolidated financial statements and the company accounts of the EPIC entity for the year ending 31 December At the meeting Pierre Mongin stated: RATP Group demonstrated a remarkable dynamic despite a difficult economic climate in Performance in 2014 is the result of rigorous management and ensured consolidated cash flow close to 1 billion for the first time in the group s history. RATP was accordingly in a position to finance record investment levels in the Paris region whilst at the same time reducing debt. In addition, subsidiaries now contribute nearly 18% of the group s income and have demonstrated that they are profitable in every region worldwide. We will consolidate and amplify these results in 2015 and implement significant programs including three metro line extensions and the renovation of RER A track, studies for line 14 to Orly and line 11 to Rosny Bois-Perrier. Our international operations also offer significant perspectives for expansion. RATP Dev is aiming at a growth rate at least equal to that achieved in 2014 with new bids in Riyadh, Singapore and Manila. The foundations of our successful strategy are the know-how of RATP Group employees and the trust they enjoy from our clients. 1

2 Trends in RATP Group key performance indicators In millions Consolidated revenue 4,934 5,083 * 5,257 EBIT * 516 Net result, Group share Cash flow * Pro forma as a result of the application of the new IFRS 11 standard Solid results Group consolidated revenue amounted to 5,257 M, an increase of 3.4% on a like-for-like method basis. The contribution of the EPIC entity to Group consolidated revenue amounted to 4,343 M, which was driven in particular by a new and major offering decided upon by the STIF transport authority (launch of tramway lines T6 and T8, the full-year effect of tramway lines T5 and T7 and a stronger offering on metro lines 1, 6 and 14 and on bus lines, etc.). Subsidiaries' contribution amounted to 914 M (an increase of 13.7%) to account for 17.4% of Group revenue. Subsidiary-managed revenue, which includes equity-method companies in proportion to equity held by the Group (Systra, Open Tour Paris, etc.) amounted to 1.2 billion. The Group's operating performance remained high. The Group booked positive cash flow for the second year running ( 128 M excluding non-recurring items). EBIT fell by 1.9% to 516 M as a result of two factors: the growing proportion of depreciation from very high levels of investment since the start of the STIF contract in 2012, and the cost of expanding RATP Dev, from which a positive impact on accounts is expected from 2015 onwards. (This includes the signature of a contract to manage buses in Riyadh, the launch of sightseeing activity in New York and the acquisition of The Original Tour in London.) Net result, Group share, rose by 1.7% to amount to 298 M. Cash flow rose by 8.6% to achieve a record level of 990 M, which easily covered investments net of subsidies. The Group also confirmed its ability to control its net debt levels, which fell by 163 M to 5,020 M. Improved service quality in the Paris region thanks to continuous modernisation Investments rose to historic levels of 1,580 M and are broken down as follows: M to increase transport capacity M to renew and refurbish rolling stock M to modernise infrastructure and current facilities 2

3 Investments have been used to extend the Paris region tramway network to over 100 km in length with the launch of tramway lines T6 and T8. RATP is bolstering its ambition to become the world leader in tramway services. The first hybrid buses were launched along with the Bus 2025 plan in 2014, which will enable RATP to set the standard in clean buses by 2025 thanks to a fleet comprising 80% electric buses and 20% biogas-fuelled vehicles. Group investment also focused on simultaneous extension works for metro lines 4, 12 and 14, which are growing to cater to new suburban areas, and on continued deployment of double-decker rolling stock on RER line A to increase capacity on the line by a further 30%. Ridership in the Paris region rose by 3% to billion journeys thanks in particular to tramway network extensions, a consolidation of the bus network to cater to new areas and the streamlining of zone pricing measures on weekends and during holiday periods. The Group's carefully developed investment policy helped ensure a significant improvement in the quality of service on our networks, as noted by multiple STIF indicators. On the metro network, twelve out of fourteen lines exceed production targets during peak hours. On RER line B, regularity rose by five points, which demonstrates the effectiveness of the Unified Control Centre set up in Denfert-Rochereau. Regularity also improved on the Group's surface networks, which were significantly extended by the commissioning of two new tramway lines and the STIF development policy for buses. There are, however, many challenges still to be faced in terms of passenger information during unforeseen disruptions and of regularity on RER line A, which remains insufficient despite improving by one point in one year (84.8% in 2014). Furthermore, results in all modes of transport demonstrate the efforts made in hygiene (for example, +6% in metro station cleanliness between 2012 and 2014; +7% in RER B stations between 2012 and 2014) and in ease of access (availability of wheel-chair supports on buses and the pavement stop indicators exceed 98% on all networks; escalator and moving walkway availability also rose by 2% on line A). Multiple successes by subsidiaries in 2014 Group subsidiaries enjoyed a particularly good For RATP Dev, which now generates over 70% of its activity abroad, 2014 was the year of the commissioning of the Tucson tramway and the launch of a new sightseeing bus activity in New York, the commissioning of the first metro line in Mumbai, India, the acquisition of London Sovereign and The Original London Sightseeing Tour (TOT) in the United Kingdom as well as the signature of the contract to operate the future bus network in Riyadh, Saudi Arabia. In France, RATP Dev won operating contracts in Valenciennes and Aix-les-Bains. All RATP Dev regions of activity are profitable. Systra, the engineering subsidiary jointly owned by RATP/SNCF, also had an excellent year with growth of 18%, net results up by 55% and an order book in excess of 1 billion. 3

4 Outlook and ambition RATP results will be consolidated and amplified in 2015 with strong ambitions: - Negotiate a new STIF contract at least as ambitious as the current one in terms of investment and improvement in service quality The main events of 2015 will be the talks on the new STIF contract. RATP wishes to remain within a globally standardised framework. The current contract has demonstrated RATP s ability to draw service quality upwards thanks in particular to an ambitious investment policy. - Continue to assert the Group s role as a major player in the Grand Paris project The Group aims to be a major player in the future transport network of the Grand Paris project. In addition to its role as the infrastructure manager of the future network, RATP will operate the extended metro line 14 as the backbone of Grand Paris. It was also recently awarded the contracting authority contract to extend the line southwards as far as Orly. Thanks to its world-leading position in driverless metro systems, RATP is also preparing to bid to operate future lines. - Consolidate its world-leading position in driverless metro systems Thanks to its successful experience with line 14, the first fully driverless, broad-gauge metro line in the world when it entered service, and line 1, the first line to be fully automated without significant disruption in traffic, RATP has become the undisputed world leader in 100% driverless metro systems, a growing global market. The status of RATP will be confirmed by the automation of metro line 4, preparatory work for which has already begun. - Become the world leader in tramway services With the acceleration in development of the tramway network in the Paris region in which RATP now operates 100 km, making it the third largest in Europe in patronage with over a million passengers daily, and multiple international successes (Manchester, Florence, Hong Kong, Algiers, Oran, Constantine, Casablanca and Tucson), RATP Group is gradually asserting itself as one of the world leaders in tramway services. The Group intends to confirm this status in the years to come thanks to its unique know-how in commissioning and its ability to operate any type of tramway (rail line, tyres, modern and historic, etc.) with all kinds of equipment. - Set the standard in sustainable development RATP will be a particularly committed party to COP 21. RATP wishes to serve as the reference in energy transition through its Bus 2025 plan with a network of 100% green buses and zero emissions, zero particles, zero noise by RATP will be experimenting in partnership with STIF from 2015 onwards on the first standard electrical buses in the Paris region following the contract co-financed by STIF and RATP signed with Bluebus, a Bolloré group company. - Continue its international expansion In France, RATP Dev may soon consolidate its presence in the Nord Pas de Calais region thanks to the acquisition of the DL Entreprises group which specialises in interurban services and with which it has begun exclusive talks. Internationally, 2015 will witness the entry into service of the tramway line in Washington D.C. RATP Dev will also be participating in several large-scale bids including the 4

5 Riyadh metro, buses in Singapore and Manila s metro line 2. The Group will continue its development dynamic in 2015 both in France and internationally. - Carry the ethical values of the Group The Group attaches vital importance to the human factor among its values. This is demonstrated by its hiring, training and skills development policy that promotes improving staff professionalism and by the importance it attaches to the well-being of its employees and to safety at work. These priorities, in conjunction with collective bargaining, are vital factors in the success of the mission statement of RATP Group. 5