PRESS RELEASE 29 March 2016 Solid annual results for 2015 Results in line with the strategic ambition to epitomize smart and sustainable mobility Record investment levels directly benefiting Paris region passengers Strong drive by subsidiaries in France and internationally Group revenue amounted to 5,556 million euros at 31 December 2015, up by 5.7% over one year. Subsidiaries revenue contribution to Group results amounted to 1,143 million euros, i.e., 20.6% of the Group s overall activity. Investment in the Paris region achieved a record level of 1,832 million euros, up by 16% Excluding non-recurring items and general economic factors, recurring net result, Group share was unchanged at 302 million euros. With non-recurring and economic factors taken into account, the net result amounted to 437 million euros. The new STIF contract should produce net results in the region of 200 million euros in 2016. The RATP board of directors, chaired by RATP President and Chief Executive Elisabeth Borne, met on 25 March 2016 to review and draw up the consolidated financial statements for RATP Group and the annual accounts of the EPIC entity for the year ending 31 December 2015. Elisabeth Borne stated at the meeting: RATP Group once again demonstrated its fine dynamism in 2015. With support from STIF, we achieved record investment levels in the Paris region to extend, modernize and maintain our networks for the direct benefit of our passengers. In France and internationally, we have won new contracts and continued to enjoy the trust of towns and cities where we are already present, thereby demonstrating our ability to offer tailored solutions meeting the expectations of local and regional authorities. In 2016, we intend of course to continue on this dynamic path at all times and in every place with the same ambition to epitomize sustainable mobility and the smart city. This desire lies at the heart of our strategic directions, which are: excellence in passenger service, promote innovation in all fields and assert RATP Group as a vital player in the sustainable city. 1
Trends in RATP Group key performance indicators In euro millions 31 December 2014 31 December 2015 Consolidated revenue * 5 257 5 556 Recurring EBIT 487 590 Net result, gross Group share 298 437 Cash flow 990 1 046 * with IFRIC 12 accounting standard applied High-performance consolidated results Group consolidated revenue at 31 December 2015 amounted to 5,556 million euros, a 5.7% increase over the previous year. The EPIC entity s contribution to Group consolidated revenue amounted to 4,413 million euros*, a 1.6% increase, attributable in particular to the increased offering on metro lines 6 and 14 and on the bus network and by the full-year effect of the entry into service of tramway lines T6 and T8. Revenue from subsidiaries amounted to 1,143 million euros, a 25% increase. Subsidiaries now account for 20.6% of overall Group revenue. The Group s operating performance remained robust with recurring EBIT at 590 million euros. The increase can be attributed for 90% to lower financial costs. With non-recurring items and general economic factors excluded, net result, Group share, was stable at 302 million euros given in particular the low increase in inflation (and consequently the minor rise in RATP remuneration by the STIF transport authority), the low rise in traffic (as a result of the attacks in particular) and expenditure to continue to improve service quality for Paris region passengers. Net result amounted to 437 million euros when specific accounting items and low financial costs are taken into account. Contrary to conventional PSDs, RATP also owns and manages infrastructure with a long-term view and is a major contributor to asset renewal on current networks. This requires generating significant results to finance investment. Cash flow amounted to 1,046 million euros, easily covering investments net of subsidies. The Group s gearing ratio fell to 1.4 as a clear statement of its control over debt levels. * with IFRIC 12 accounting standard applied Record investment levels in the Paris region and a slight increase in traffic Passenger traffic in the Paris region rose by 0.9% with 3,255 million journeys over the year despite the persistently depressed economic climate and tourism disrupted by the attacks in January and 2
November 2015. The trend can be attributed in particular to the full-year effect of the entry into service of the T6 and T8 tramway lines. Investments made by RATP in the Paris region in 2015 with assistance from the STIF transport authority rose by 16% to achieve a record level of 1,832 million euros: - 494 million euros to increase transport capacity - 594 million euros to renew and renovate equipment - 744 million euros to modernise current infrastructure and facilities. Among noteworthy events in 2015 for rail networks were simultaneous programs to extend four metro lines (line 4 to Bagneux, line 11 to Rosny-sous-Bois, line 12 to Mairie d Aubervilliers and line 14 to Mairie de Saint-Ouen) and the first phase of works to renew the track and ballast on the central section of RER line A, a project of unprecedented and outstanding extent. RATP continued to deploy MI09 double-decked rolling stock along RER A at the rate of two new trains per month. It acquired an additional ten MI09 trains to bolster its offering, completed the renovation of its 66 MI79 trains for RER B and acquired 35 new MP14 trains for metro line 14. Metro line 5 has been equipped since July 2015 with the OTCYS digital system that shortens times between trains with complete safety. Line 9 is currently being equipped with the same. On the tramway network, four extensions are in progress (T3 to Porte d Asnières and T6 to Viroflay) or under preparation (T1 and T7). Six new trains intended for the T2 tramway were received for a subsequent offer consolidation. As part of its Bus 2025 plan, RATP accelerated the energy transition of its bus fleet with 150 hybrid bus vehicles in service at the end of 2015 (520 planned for mid-2016) and experiments starting with 100% electrical standard buses on its lines. As for new services and passenger information, RATP has developed monrera, an application enabling RER A passengers to be better informed, in particular in the event of disruptions. RATP also launched RATP Apps, a platform offering a selection of the best applications to make passengers daily life easier. The deployment of 3G/4G is continuing; RER lines A and B and metro line 1 are now fully equipped. Development drive confirmed in France and internationally RATP Dev continued to expand in 2015 in France, Asia, the Middle East, Africa and America. In France, RATP Dev significantly bolstered its presence in the Nord-Pas-de-Calais-Picardy region through three operations. RATP Dev has been the operator since 1 January 2015 of the multimodal network for the Valenciennes region (two tramway lines and 30 bus lines). RATP Dev acquired the Dupas Lebeda Entreprises group in the region, which specialises in inter-urban and school bus services. RATP Dev also won the operating contract for the region in and around Laon. Furthermore, RATP Dev won bids to operate the bus network in Epernay and the express bus line between Paris and Vatry airport. RATP Dev also had its contract renewed in Annemasse and Vierzon, once again proving its ability to meet the expectations of transport authorities. On the international scene, in April 2015 RATP Dev teams began the preparation phase for the scheduled commissioning of the future bus network in Riyadh, which will have over 1,000 vehicles. In 3
Manila, RATP Dev now contributes its expertise to operating metro line 1. In Algeria, RATP Dev ushered in the extension of metro line 1 (four kilometres and four stations) in July 2015. In addition, the contract to operate the bus network in Austin, RATP Dev s biggest contract in the USA, was extended by four years until September 2019. Systra, the engineering subsidiary jointly owned by RATP and SNCF, also continued to expand and confirmed its world-leading position in public transport infrastructure engineering. Its order book exceeded 600 million euros in new orders for the second year running. Successes included the signature of contracts for the Suez Canal, the Lusail tramway in Qatar, the Awash-Weldiya railway in Ethiopia and the Medina metro in Saudi Arabia. Results in line with objectives After a 2015 of exceptional items and the renegotiation of the STIF contract, 2016 should end with results in the region of 200 million euros. Over the 2016-2020 time frame, RATP has set itself an objective to continue its ambitious investment policy in the Paris region without increasing debt levels. RATP Group will continue the same dynamic of investment and growth in 2016 in both the Paris region and internationally, keeping in mind the same three priorities: passenger service, innovation and the sustainable city. In the Paris region, 2016 will witness the implementation of the new STIF contract, which includes an 8.5-billion-euro investment plan over five years (of which 4.2 billion euros from RATP equity) by 2020 to finance network maintenance, modernisation and development. In 2016, the first line fully equipped with 100% electrical standard buses will be inaugurated as a sign of the acceleration in the Bus 2025 plan resulting in an RATP fleet of 100% ecologically friendly buses by 2025. The underground section of the tramway T6 line will also be inaugurated. Work to automate metro line 4 and extend line 14 southwards will also begin this year. Internationally, 2016 began well with the recent entry into service of the Washington D.C. tramway (operated and maintained by RATP Dev) and the adjudication in favour of RATP Dev in the tender to operate all urban and inter-urban buses in Tuscany. The latter is penultimate step before the contract is signed. It represents nearly 3,000 buses, over 5,400 employees and over 100 million km travelled per year. Thanks to its dynamic drive, RATP Group is in full working order to achieve the financial objectives set for 2020, i.e., revenue of 7.5 billion euros, 30% of which generated by subsidiaries, reduced debt levels and a group gearing ratio of below 1. NOTES FOR EDITORS: RATP Group With 14 million passengers every day worldwide, RATP Group is the fifth largest urban transport operator in the world. The multimodal network operated by RATP in the Paris region, with its 14 metro lines (including two driverless lines), two regional express network (RER) lines, four tramway lines, 350 bus lines and shuttle services catering to the region's two international airports, is the largest of its kind in the world to be managed by a single company. 4
RATP Group can devise, design and implement infrastructure development projects, operate and maintain networks irrespective of the transport mode (metro, regional train, tramway and bus) and develop innovative services to promote mobility such as passenger information, electronic ticketing, pricing and customer marketing. The automation of Paris metro's Line 1, which was completed at the end of 2012, is a world first and once again has demonstrated the ability of RATP Group to complete particularly complex projects. RATP Group has a workforce of nearly 60,000 worldwide and in 2015 generated revenue of 5,556M. RATP Dev RATP Dev is the RATP Group subsidiary established in 2002 to export the group s operation and maintenance know-how outside the historic network operated by RATP in the Paris region. RATP Dev now operates in 14 countries on four continents (United Kingdom, France, Italy, Switzerland, Algeria, Morocco, South Africa, Saudi Arabia, the USA, Brazil, India, China, South Korea and the Philippines). In 2015, RATP Dev generated revenue of 1,114 M. RATP Dev in the United Kingdom and Ireland The United Kingdom is a strategic market for RATP Dev with revenues in excess of 300 million and a workforce of over 4,500. RATP Dev s presence in the United Kingdom comprises the following activities: o RATP Dev London, through its subsidiaries London United, London Sovereign and Quality Line: - employs 3,400 staff - operates more than 1,000 buses under contract to Transport for London (TfL) - has an annual turnover of 204 million. o RATP Dev operates and maintains the UK s largest tram network, Metrolink, on behalf of its partner Transport for Greater Manchester (TfGM) - Employs 700 staff, including over 300 drivers - Transports 34 million people per year. o Under the Yellow Buses brand, RATP Dev s subsidiary Bournemouth Transport operates award-winning commercial bus services in and around Bournemouth. Further de-regulated bus services are provided also by the Bath Bus Company. o RATP Dev has significant coach operations, both in private hire and as a contractor for National Express inter-urban coaches, based primarily in Epsom Coaches (Surrey) and Selwyns Travel (Cheshire). Bournemouth Transport and RATP Dev London also have some coach operations. o RATP Dev is a major player in the hop-on, hop-off sightseeing bus tour activity. Following its 2014 acquisition of The Original London Sightseeing Tour, RATP Dev now has operations of this kind in London, as well as Paris and New York, whilst Bath Bus Company specialises in such services in Bath, Windsor and Cardiff. 5
CONTACTS: RATP Dev UK Press Contact: Peter Headden T +44 207 413 3125 peter.headden@hkstrategies.com RATP Group Press Service T +33 1 58 78 37 37 servicedepresse@ratp.fr 6