SNCF RÉSEAU TITRE DE LA PRÉSENTATION SUR 2 LIGNES MAX SOUS-TITRE SUR QUELQUES LIGNES MAIS PAS PLUS LOREM IPSUM DOLOR SIT AMET

Transcription

1 TITRE DE LA PRÉSENTATION SUR 2 LIGNES MAX SOUS-TITRE SUR QUELQUES LIGNES MAIS PAS PLUS LOREM IPSUM DOLOR SIT AMET SNCF RÉSEAU GREEN BOND ISSUANCE PROGRAMME Ticker : RESFER RESTRICTED

2 SUMMARY 01. COMPANY OVERVIEW 02. SNCF RÉSEAU GREEN BOND FRAMEWORK AND DEBUT GREEN BOND ISSUE 03. INVESTMENTS DEDICATED TO THE GLOBAL CLIMATE CHALLENGE 04. REPORTING & METRICS 2

3 01. COMPANY OVERVIEW 3

4 SNCF RÉSEAU AND THE FRENCH RAILWAY NETWORK SNCF RÉSEAU IS THE OWNER AND MANAGER OF THE FRENCH RAILWAY INFRASTRUCTURE SNCF RÉSEAU MAIN RESPONSIBILITIES + Ensure a fair access to the French network, + Organize train services and development of rail traffic, + Ensure maintenance and enhancement of rail assets, + Ensure the development of the network. Per day : 15,000 trains - 5 million passengers tons of goods carried 4

5 IN LINE WITH THESE 4 RESPONSIBILITIES, SNCF RÉSEAU HAS PRIORITIZED : + Ensuring security, + Giving priority to the refurbishment and upgrade of the network, + Building and maintaining the structured network (particulary in the Paris area). SNCF Réseau aims to ensure, develop and operate a reliable, highly efficient and attractive network 5

6 CREDIT RISK EQUAL TO THE FRENCH STATE As a 100% State-owned public entity, SNCF Réseau benefits from a strong support from the French State based on its legal status (EPIC). AS AN EPIC, SNCF RÉSEAU : + is not subject to private-sector bankruptcy law, + may only be dissolved by an amending law transferring its rights and obligations to another public entity. SNCF RÉSEAU : + performs a public sector mission and enjoys a natural monopoly position as the sole owner and manager of the French railway infrastructure with no risk of deregulation, + was included in the Government Related Entity list by the European commission in 2002 and is eligible to the ECB Public Sector Purchasing Programme. RATINGS LONG-TERM SHORT-TERM Fitch AA F1+ Moody s Aa2 P-1 Standard & Poor s AA A-1+ SNCF Réseau debt is seen by credit rating agencies as implicitly guaranteed by the French State 6

7 02. SNCF RÉSEAU GREEN BOND FRAMEWORK AND DEBUT GREEN BOND ISSUE 7

8 WHY ISSUING A GREEN BOND? + Rely on a dynamic Green Bonds market in full expansion, + Diversify our funding sources and increase our funding capacity, + Highlight the industrial achievements of SNCF Réseau and their beneficial impact on climate, + A modern and innovative tool: #1 rail infrastructure manager in the world and #1 transport company in Europe to issue a Green Bonds. 110,0 100,0 90,0 80,0 70,0 60,0 50,0 40,0 30,0 20,0 10,0 0,0 Green Bonds issuances outstanding (in US$ Bn) 4,5 13,0 36,7 48,0 60,

9 GREEN BOND MARKET DEVELOPMENTS IN THE RAIL SECTOR CLIMATE BONDS STANDARD FOR LOW-CARBON TRANSPORT WERE FINALIZED IN 2016 Projects are eligible for certification based on whether or not they cope with emissions trajectory that limits global warming to 2 degrees. Eligible assets are : + Public passengers transport, + Dedicated freight railway lines and supporting infrastructure. CLEAN TRANSPORTATION IS PART OF ELIGIBLE SECTORS IN THE GREEN BONDS PRINCIPLES Use of proceeds must support: low energy or low emission transportation assets, systems, infrastructure, components and services (such as electric, public, rail, multi-modal transportation, infrastructure for clean energy vehicles and reduction of harmful emissions, etc.). 9

10 SNCF RÉSEAU GREEN BOND FRAMEWORK SNCF RÉSEAU FRAMEWORK WILL BE IN LINE WITH THE GREEN BOND PRINCIPLES USE OF PROCEEDS : + An amount equal to net proceeds will be allocated to investments defined as Eligible Green Projects, + Eligible Green Projects include new and ongoing projects with disbursements up to 2 years prior to the Notes issuance. INVESTMENTS RELATED TO MAINTENANCE, UPGRADE AND ENERGY EFFICIENCY OF THE RAIL SYSTEM + This category includes projects related to SNCF Réseau s efforts to ensure the efficiency of the rail system throughout its various worksites, + Typology of projects could be: track, catenary or signaling system upgrade, electrification of lines, etc. INVESTMENTS RELATED TO NEW RAIL LINES AND RAIL LINES EXTENSIONS + Investments related to new rail lines and rail lines extensions which ensure access to the network and the efficient movement of people and freight, for example, LGV Est-Européenne, LGV SEA, Projet EOLE, etc. OTHER INVESTMENTS LINKED TO THE GLOBAL CLIMATE CHANGE CHALLENGES, THE PROTECTION OF BIODIVERSITY AND NATURAL RESOURCES + This category will include projects which ensure the inclusion of the protection of biodiversity and natural resources in the management approach of the existing railway network. 10

11 A RECURRENT PROGRAMME FOCUS ON MAINTENANCE SNCF RÉSEAU GREEN BOND S CATEGORIES INVESTMENTS RELATED TO MAINTENANCE, UPGRADE AND ENERGY EFFICIENCY OF THE RAIL SYSTEM INVESTMENTS RELATED TO NEW RAIL LINES AND RAIL LINES EXTENSIONS TYPOLOGY OF PROJECTS INVESTMENT IN MILLION Track, ballast, sleepers & switches catenary's system renewal signalling's system renewal ss-total : LGV EE Phase 2 (2016), LGV SEA (2017), LGV BPL (2017),LGV CNM (2017), Projet EOLE (2022/2024) OTHER INVESTMENTS LINKED TO THE GLOBAL CLIMATE CHANGE CHALLENGES, THE PROTECTION OF BIODIVERSITY AND NATURAL RESOURCES Currently examples are not yet available in this category but are expected to be developed over time. nd nd nd nd Total SNCF RÉSEAU AIMS TO ISSUE AT LEAST ONE GREEN BOND BENCHMARK EVERY YEAR 11

12 03. INVESTMENTS DEDICATED TO THE GLOBAL CLIMATE CHALLENGE 12

13 RAILWAY TRANSPORT IS KEY TO A LOW CARBON ECONOMY TRANSPORT AND ENERGY ARE THE LARGEST CLIMATE THEMES Transport (66.8%) Energy (18.8%) Multi-Sector (8.2%) Water (2.6%) Building & Industry (2%) Agriculture & Forestry (0.9%) Waste & Pollution Control (0.7%) Rail dominates the transport theme (93%) Source : CBI State of the Market 2016, CBI/HSBC (July 2016) 13 TRANSPORT SECTOR IS THE LARGEST THEME IN THE CLIMATE-ALIGNED UNIVERSE TOTALLING $464bn (1 605 CLIMATE-ALIGNED BONDS, 148 ISSUERS) + Transport theme accounts for 70% of the investment grade segment of the climate-aligned universe, + In general, bonds within the transport theme tend to be the largest, with an average issuance size of over $400m (compared to the average bond in the energy theme of $135m) and have the longest tenor (since the majority are rail projects), + The majority of issuance is from government entities. This group of issuers includes the largest issuer in the universe, i.e. China Railway Corp, Network Rail, the EIB, EUROFIMA, the New York Metropolitan Transportation Authority, etc. + Transport themed labelled green bonds total $8.6bn.

14 THE CARBON RELEVENCY PRINCIPLE RAIL EMITS LESS GREENHOUSE GASES THAN OTHER MODES OF TRANSPORT To maintain a safe and operational network, and thus favor a modal shift towards rail, SNCF Réseau is carrying out a major renovation program of its rail network. GREENHOUSES GASES EMISSIONS BY passengers-km tons-km Sources : SNCF (2014), Eurolines (2014), DGAC (2014), base Carbone ADEME (2015) Sources : Fret SNCF (2014), SNCF Logistics (2011), ADEME

15 CARBON AMORTIZATION FOR A RENEWAL OF A RAILWAY MAIN HYPOTHESIS REFERENCE SCENARIO If not renovated, rail service will eventually be stopped, traffic will be carried over the other modes and GHG emissions will increase accordingly. FRENCH RAILWAY TRAFFIC (2013) High-Speed Trains 53,7 Bn p.km* MODAL SHIFT HYPOTHESIS 50 % airplane, 40 % self-owned car, 10 % buses CARBON AMORTIZATION DEPENDS ON TWO PARAMETERS + Emissions due to regeneration works. For reference, steel used for the tracks stand for 2/3 of the overall emissions. + Emissions saved thanks to the regeneration works depend on the traffic volumes on the tracks throughout the life cycle of the infrastructure (30 years). Transnational & InterRegional Trains Regional Trains 7,7 Bn p.km 13,6 Bn p.km 75 % self-owned car, 20 % buses, 5 % airplane 90 % self-owned car, 10 % buses Paris area Trains 12,3 Bn p.km 100 % self-owned car Freight 32,2 Bn t.km 90 % Trucks, 10 % river traffic *p.km : passenger per km and t.km : tons per km Source : prospective study by SNCF Réseau (RFF), Mathieu, Pavaux, Gaudry, «Evaluation de la contribution du réseau et de la politique ferroviaires à l objectif du facteur 4 pour les déplacements des voyageurs à moyenne et longue distance» (2013) 15

16 FULL TRACK RENEWAL CARBON RELEVENCY THE EXAMPLE OF THE MONTPELLIER - NARBONNE LINE + With a carbon footprint of 53,200 tons eq CO 2 for the line regeneration between Montpellier and Narbonne, the line renewal shows about : 100,000 tons equivalent CO 2 issued + Based on the real number of trains circulating between Montpellier and Narbonne, yield assumptions on trains as well as modal shift assumptions toward other means of transport, railroad services between the two cities allows to save up to 100,000 tons eq CO 2 per year, i.e : 3 million tons eq CO 2 saved over 30 years 16

17 04. REPORTING & METRICS 17

18 SNCF RÉSEAU S CSR POLICY 4 CHALLENGES & 16 COMMITMENTS + The CSR policy was drafted in 2015 by the Environment and Sustainable Development Department, with SNCF Réseau s four core businesses, regional departments and transversal functions, + A policy validated by the Audit Committee and the Supervisory Board, + A policy which is the CSR reporting base of SNCF Réseau. 18

19 SECOND OPINION & CLIMATE CERTIFICATION SECOND OPINION SNCF Réseau has selected Oekom research to deliver a Second Party Opinion on this framework in order to provide investors an independent assessment on the alignment of the framework with the Green Bond Principles. CLIMATE BONDS CERTIFICATION Each Green bond issue will be reviewed by an independent assessment on the alignment of the framework with the Climate Bonds Initiative delivered by Oekom research. REPORTING An annual report will be established by SNCF Réseau and will focus on the correct allocation of funds to eligible projects (certified by independent financial auditors) and the monitoring of metrics by type of eligible project categories. 19

20 METRICS RELATED TO THE ELIGIBLE GREEN PROJECTS CATEGORIES INVESTMENTS RELATED TO MAINTENANCE, UPGRADE AND ENERGY EFFICIENCY OF THE RAIL SYSTEM INVESTMENTS RELATED TO NEW RAIL LINES AND RAIL LINES EXTENSIONS METRICS Issued and avoided emissions: + Total GHG emissions of the renewal project (teqco 2 ) + Modal shift + Total GHG emissions saved thanks to the renewal project (teqco 2 ) Frequency Natural resource preservation : + Share of re-used rails from the renewal project (tons of steel) + Share of recycled rails (tons of steel) + Share of ballast re-used on the renewal project (tons) + Volume of wooden sleepers recycled for energy purposes (tons) + Number of kilometers of catenary replaced Issued and avoided emissions : + Total GHG emissions of the project (teqco 2 ) + Modal shift + Total GHG emissions saved thanks to the project (teqco 2 ) Natural resource preservation : + KWh generated / saved & volume of water re-used + Number of hectares compensated + Soil volume re-used 20 OTHER INVESTMENTS LINKED TO THE PROTECTION OF BIODIVERSITY AND NATURAL RESOURCES RESTRICTED Currently metrics are not yet available in this category but are expected to be developed over time

21 SNCF RESEAU WASTE MANAGEMENT, A SOLUTION TO THE CLIMATE CHALLENGE Waste : All materials/products wasted or generated by the projects on the rail network Increase from 80% to 95% recycled products by 2030 BALLAST 110 M tons throughout the network 2 M tons recycled per year 40% direct re-use WOODEN RAILWAY SLEEPERS 1,6 M tons throughout the network tons recycled per year 100% energy recovered TRAIN TRACKS/ FERROUS METAL 5,5 M tons throughout the network tons recycled per year 7% re-use / 93% recycled CATENARIES / NON-FERROUS METAL tons throughout the network tons recycled per year 100% materials recycled CONCRETE RAILWAY SLEEPERS 15 M tons throughout the network tons recycled per year 100% materials recycled + Safety + Waste extraction/recuperation + Circular Economy + Innovation for re-use Quantity and Quality guaranteed over 40 years SHIFT FROM WASTE MANAGEMENT TO RESOURCES AND MATERIALS GENERATION 21

22 SNCF RÉSEAU S CSR POLICY SNCF RÉSEAU S CSR PERFORMANCE IS RATED BY NON-FINANCIAL RATING AGENCIES WITH STRONG PROGRESSION OVER THE LAST 18 MONTHS AGENCY RATING 2016 RAKING ENVIRONMENT SCORE : 61/100 (Vigéo) VIGÉO 49/100 OEKOM research C+ #6 out of 29 companies #5 out of 45 companies The main elements accounting for the score increase remain the more exhaustive approach to management of climate change issues through more reliance on renewable energy and facilities and fleet optimisation programmes throughout the Company's operations. According to Vigéo, SNCF Réseau s overall ranking in the Transport & Logistics sector is #6 out of 29 companies A robust performance is displayed regarding the Environment and Social pillars, which appear to be the main drivers of SNCF Réseau s performance. According to Oekom research, SNCF Réseau s overall ranking in the Transportation Infrastructure sector is #5 out of 45 companies Mainly active in the operation of environmentally sound rail infrastructure; adequate measures to minimize transport-related noise emissions; reasonable measures to ensure health and safety of users, inhabitants and/or passers-by 22

23 CONTACTS + Guillaume HINTZY - Vice president Financing and Treasury (guillaume.hintzy@reseau.sncf.fr) + Etienne OBERTHÜR - Financial Market operations Treasury (etienne.oberthur@reseau.sncf.fr) + Sophie JALABERT - Corporate social responsibility (sophie.jalabert@reseau.sncf.fr) 23

24 DISCLAIMER This document is being furnished to you solely for your information on a confidential basis and may not be reproduced, redistributed or passed on, in whole or in part, to any other person. This document does not constitute or form part of any solicitation, offer or invitation to purchase or subscribe for any securities issued by SNCF Réseau and neither it nor any part of it shall form the basis of, or be relied upon in connection with, any contract or commitment whatsoever. Accordingly, it is not directed to the specific investment objectives, financial situation or particular needs of any recipient. You should consult with your own legal, regulatory, tax, business, investment, financial and accounting advisers to the extent that you deem it necessary, and make your own investment, hedging and trading decisions (including decisions regarding the suitability of an investment in SNCF Réseau securities) based upon your own judgment and advice from such advisers as you deem necessary and not upon any view expressed in this document. No representation or warranty, express or implied, is made as to, and no reliance may be placed for any purposes whatsoever on, the fairness, accuracy, completeness or correctness of the information or opinions contained herein. None of SNCF Réseau, or any of its affiliates, advisers or representatives shall have any liability whatsoever (in negligence or otherwise) for any loss howsoever arising from any use of this document or its contents or otherwise arising in connection with this document. Certain statements in this document are forward-looking, including statements concerning SNCF Réseau s plans, objectives, goals, strategies, future events, future revenues or performance, capital expenditures, financing needs, plans or intentions relating to acquisitions, competitive strengths and weaknesses, business strategy and the trends SNCF Réseau anticipates in the industries and the political and legal environment in which it operates and other information that is not historical information. By their nature, forward-looking Statements involve inherent risks and uncertainties, both general and specific, and risks exist that the predictions, forecasts, projections and other forward-looking Statements will not be achieved. SNCF Réseau does not make any representation, warranty or prediction that the results anticipated by such forward-looking Statements will be achieved, and such forward-looking Statements represent, in each case, only one of many possible scenarios and should not be viewed as the most likely or standard scenario. Such forward-looking Statements speak only as of the date on which they are made. Any opinions expressed in this document are subject to change without notice and SNCF Réseau does not undertake any obligation to update or revise any forward looking Statement, whether as a result of new information, future events or otherwise. Not for distribution into the United States. In the United Kingdom, this document is being distributed only to, and is directed at (a) persons who have professional experience in matters relating to investments falling within article 19(5) of the Financial Services And Markets Act 2000 FSMA (Financial Promotion) Order 2005 (the Order ) or (b) high net worth entities falling within article 49 of the Order, and other persons to whom it may be lawfully be communicated or (c) qualified investors as defined in s86(7) of the FSMA (all such persons together being referred to as Relevant Persons ). Any person who is not a Relevant Person should not act or rely on this document or any of its contents. In France, this document will be not distributed or caused to be distributed and will not be distributed or caused to be distributed to the public in France, and any distribution of this document have been and will be made in France only to (a) providers of investment services relating to portfolio management for the account of third parties, and/or (b) qualified investors (investisseurs qualifiés), other than individuals, all as defined in, and in accordance with, Articles L.411-1, L.411-2, and D to D of the French code monétaire et financier. This document is an advertisement and not a prospectus for the purposes of applicable measures implementing Directive 2003/71/EC ( Prospectus Directive ). Neither this document nor any copy thereof may be taken or transmitted or distributed, directly or indirectly, into the United States or to a U.S. Person (as defined in Rule 902 of Regulation S under the Securities Act of 1933, as amended (the Securities Act ) ). The distribution of this document in other jurisdictions may be restricted by law and persons into to whose possession this document comes should inform themselves about, and observe, any such restriction. Any failure to comply with these restrictions may constitute a violation of the laws of any such other jurisdiction. This document does not constitute or form a part of any offer or solicitation to purchase or subscribe for securities in the United States. Securities may not be offered or sold in the United States absent registration or an exemption from registration under the Securities Act. Neither this document nor any copy thereof may be retained by you or reproduced, redistributed or passed on, in whole or in part, to any other person. By attending the presentation you agree to be bound by the foregoing restrictions. 24