SNCF Group 2009 Annual Results. Paris 24 March 2010

Transcription

1 SNCF Group Annual Results Paris 24 March SNCF Group Annual Results March 24, 2010

2 Preliminary observations This document does not present separate accounts for the Gares&Connexions division. Created in April, the new division will publish it own financial figures along with the 4 other Group divisions starting 1st January Please note that the 2007 and figures presented herewith correspond to published accounts, excluding IFRS restatements linked to changes in accounting methods. 2 SNCF Group Annual Results March 24, 2010

3 Summary 1 Key figures and observations in the context of 2 Revenue and Gross Profit 3 I Other consolidated results 4 Group financial position 3 SNCF Group Annual Results March 24, 2010

4 Key figures and observations in the context of 4 SNCF Group Annual Results March 24, 2010

5 Contained downturn in Revenue Structural decline in Gross Profit amplified by the crisis Positive Current Operating Profit and positive Net Profit before exceptional items Net Profit attributable to equity holders of the parent affected by depreciation KEY FIGURES SNCF GROUP in millions of Euros % revenue % revenue vs Revenue 24,882 25,188 (306) (1.2)% Gross profit 1, % 2, % (903) (34.8)% Current operating profit % % (836) (85.2)% Operating profit (460) (1.8)% % (1,316) (153.8)% Financial profit (303) (1.2)% (504) (2.0)% 201 (39.9)% Net profit before exceptional items Net profit attributable to equity holders of the parent 3 0.0% % (527) (99.4)% (980) (3.9)% % (1,555) (270.2)% Self-financing capacity 1,499 2,043 (544) (26.6)% Free cash flow (491) (82) (409) 498.1% (1) Net profit before exceptional items : net profit excluding exceptional items 5 SNCF Group Annual Results March 24, 2010

6 Results affected by exceptional items amounting to 1 billion FROM NET PROFIT BEFORE EXCEPTIONAL ITEMS TO NET PROFIT in millions of Euros Net Profit Net Profit before Before Exceptional items Items SNCF Infra Asset depreciation Fret SNCF Asset depreciation CPA/CET (1) Active Deferred Tax Net proceeds from Batignolles asset disposal Change in fair value Miscellaneous (2) Net Net Profit (1) Provisions for Progressive Cessation of Activity and Employee time savings plans (2) Positive exceptional items 6 SNCF Group Annual Results March 24, 2010

7 The very unfavourable crisis context impacted volumes of goods transported In millions of Euros Industrial production GNP INDUSTRIAL PRODUCTION AND GNP GROWTH affected by an unprecedented economic crisis GNP % t/t : % quarterly growth / Industrial Prod. % t/t : % quarterly growth / Eurostat source Base 100 in OECD GNP Global trade GNP AND GLOBAL TRADE CURVES Decline in global trade (- 30% in ) greater than drop in economic activity 7 SNCF Group Annual Results March 24, 2010

8 affecting SNCF and the entire transport industry sector Passenger air travel SNCF long distance passenger travel European rail travel % % % PASSENGERS Significant decline in passenger transport (air traffic -5%) Rail transport resists comparatively well compared to air transport (SNCF -2.8% / European railways -2.4%) Freight transport by road - France Rail freight transport - Europe Rail freight transport - SNCF % % % GOODS Significant drop in goods transport by road With less competitive pricing and a drop in traffic, Fret SNCF declines less than European rail freight (-26.3% vs %) and is more resistant thanks to its subsidiaries (-19.3%) 8 SNCF Group Annual Results March 24, 2010

9 Considerable impact of crisis on all transport activities: one example is the Geodis subgroup GEODIS REVENUE OVER 12 MONTHS (AT A CONSTANT CONSOLIDATION SCOPE) in millions of Euros 5,187,6 5, , , , % 4, dec 08 feb 08 apr 08 jun 08 aug 08 oct 08 dec 09 feb 09 apr 09 jun 09 aug 09 oct 09 dec 9 SNCF Group Annual Results March 24, 2010

10 Activities subject to contractual agreements affected by negative impact of price escalation indices IMPACT OF PRICE INDICES ON REVENUE in millions of Euros M M M SNCF Infra SNCF Proximités Total Variation compared to the previous fiscal year 10 SNCF Group Annual Results March 24, 2010

11 Revenue and Gross Profit 11 SNCF Group Annual Results March 24, 2010

12 In, divisions under contract grew steadily, SNCF Voyages declined slightly SNCF Geodis dropped significantly, consistent with freight industry averages REVENUE BY DIVISION in millions of Euros 23,691 25,188 24, ,908 6,340 6,579 6,891 7,469 8,027 7,726 7,375 7,377 4,532 4,823 5,146 SNCF INFRA SNCF PROXIMITES SNCF Voyages + Gares&Connexions SNCF GEODIS Groupe SNCF 12 SNCF Group Annual Results March 24, 2010

13 A slight downward trend in Group Revenue Declined -1.2% compared to but -3.9% (- 986 million) at a constant consolidation scope CONSOLIDATED GROUP REVENUE - in millions of Euros , , m - 1,2% Revenue Consolidation effects Growth in SNCF Infra Division Growth in SNCF Proximités Division Decline in SNCF Voyages Divison (+ stations) Decline in SNCF Geodis Division Other Revenue (1) Consolidation effects : IBM 4PL (SCO) 531 ITL 24 (2) Other : Common functions and shares Giraud 57 Cool Jet 30 excluding inter-division revenue Thalys (8,6) Ermechem SNCF Group Annual Results March 24, 2010

14 From Revenue to Group Gross Profit vs. in millions of Euros Consolidation effect on (1) pro-forma consolidation scope vs. vs Revenue 24, ,202 25,188 (986) (3.9%) (306) (1.2%) Employee benefits expenses (10,415) (66) (10,349) (9,841) (508) 5.2% (574) 5.8% Other income and expenses (7,953) (617) (7,336) (8,058) 722 (9.0%) 105 (1.3%) Energy and fuel (706) (3) (703) (794) 91 (11.4%) 88 (11.0%) Track access charges (2) (3,190) 0 (3,190) (3,038) (152) 5.0% (152) 5.0% Taxes and duties (930) (2) (928) (867) (61) 7.1% (64) 7.3% Gross profit 1,688 (8) 1,696 2,591 (895) (34.5%) (903) (34.8%) as % of Revenue 6.8% (1.2%) 7.0% 10.3% (1) Consolidation effects : IBM 4PL (SCO) ITL (2) Mix Price / volume ratio : million of which million RFF track access charges (price impact : +3.8%; Giraud Cool Jet volume impact : +1.2%) Thalys Ermechem 14 SNCF Group Annual Results March 24, 2010

15 SNCF Infra Division (infrastructure & engineering) In m REVENUE REVENUE GROWTH -: +6.7% (+ 323 million) 4,823 5,146 Production volume growth of 280m (of which 241m due to network renovations and upgrades and related development programmes such as the Rhine Rhône high speed line, HSL) Partial compensation paid by RFF of additional costs for pensions and heavy work bonuses Réel Réel Growth in INEXIA and SYSTRA businesses Decline in price escalation indices used to calculate revenue from the Infrastructure Management Contract In m 13 GROSS PROFIT (LOSS) m m DECLINE IN GROSS PROFIT (LOSS): million Negative impact of CPA/CET* provisions in (Excluding CPA/CET, Gross Profit shows a variation of + 12m). Variable costs higher contribution margins generated by growing production volumes, offset by rising personnel costs Compensation payments for pensions and heavy work bonuses -92 Rising contributions of INEXIA and SYSTRA Excluding CPA/CET Negative impact of price escalation indices * CPA/CET : Progressive Activity Cessation and Employee time savings plans 15 SNCF Group Annual Results March 24, 2010

16 SNCF Proximités Division (local & regional transport) In m REVENUE 6,579 6,340 Réel Réel REVENUE GROWTH -: +3,8% (+ 239 million) Higher volumes due to new TER and Transilien services (reopening the Aix-Marseille line, interval-service timetables in Normandy, R and N lines, ) and new TER contracts (Champagne-Ardenne, Aquitaine and Auvergne) Positive pricing impact linked to higher rates, offset by sharing mechanisms with rail Organising Authorities (results below contractual objectives) Positive price escalation impact, though well below previous years (due to the economic crisis). Weakened passenger traffic for Transilien (+0.3%) and TER (+1.2%) lines, negative for Intercités interregional lines (-3.0% of which 2.1% is due to the decline in offers). In m GROSS PROFIT (LOSS) Excluding electricity cost adjustments m m Excluding CPA/CET DECLINE IN GROSS PROFIT (LOSS) -: million Excluding exceptional items, (CPA/CET, electricity cost adjustments), gross profit dropped million Operating costs higher than price escalation indices governing TER and Transilien contracts Crisis impacted parent company traffic levels and EFFIA contracts, partially offset by renegotiating new contracts and developing new offers 16 SNCF Group Annual Results March 24, 2010

17 SNCF Voyages Division (long distance transport) In m REVENUE 7,469 7,375 Réel Réel DECLINE IN REVENUE -: -1.3% ( 94 million) Crisis and weakening weighed heavily on revenue (of which - 9 million due to consolidation effects). Passenger travel income considerably affected by: - Slump in demand : travel volumes (vk) down 2.8 %, - Drop in average purchase : overall price impact 1.4%, affected by the depreciation of / exchange rates and modified consumer habits (seeking lower rates in leisure travel, 2nd vs. 1st class in business travel) Contrasting trends : TGV progression consolidated with idtgv (+1.7%) offset by declines for Teoz (-4.2%), Thalys (-4.4%) and Eurostar (-13.2%). TGV occupancy rates : -4.1% In m GROSS PROFIT (LOSS) Excluding electricity cost adjustments m m Excluding CPA/CET DECLINE IN GROSS PROFIT (LOSS) -: million Excluding exceptional items (CPA/CET and electricity cost adjustments), gross profit dropped by million Decline in revenue Rising external costs, including track access charges (price impact 5.3%) taxes and duties (financing for ARAF, French rail regulation authority), Exceptional items : Temporary Share Revenue (Eurostar transformation) and impact of SNCF accounting rules Excluding external costs and exceptional items, progression of operating costs limited to 1.1% thanks to savings initiatives 17 SNCF Group Annual Results March 24, 2010

18 SNCF Geodis Division (freight transport & logistics) In m REVENUE 8,027 7,377 Réel Réel DECLINE IN REVENUE -: -8.1% (- 650 million) and -16.1% at a constant consolidation and currency scope Division-wide drop in activity of million : million,geodis businesses, of which million Parcel Distribution and million Freight Forwarding million Fret SNCF with MTKT dropping 26 % (26.5 MTKT in vs in ) Positive consolidation effects of 688 million * Negative exchange rate impact - 46 million (Freight Forwarding) in m SNCF GEODIS GROSS PROFIT (LOSS) FRET SNCF GROSS PROFIT (LOSS) SNCF Group Annual Results March 24, 2010 GROSS PROFIT (LOSS) Excluding Excluding electricity cost Excluding CPA/CET adjustments CPA/CET DECLINE IN GROSS PROFIT (LOSS) -: million Excluding CPA/CET and electricity accrual costs, drop of 250 million Geodis Gross Profit negative at million million for Fret SNCF of which 30 million due to CPA/CET and 50 million of electricity cost adjustments To counter declining revenue : 200 million savings thanks to adjustment measure taken, excluding mechanical adaptations to the drop in activity * Consolidation effects : Geodis 644m (of which 531m due to IBM 4PL/SCO, 57m for Giraud and 30m for Cool Jet), ITL 24m and Ermechem 21m

19 Persistent prior structural weaknesses (Infrastructure, train services for sustainable land planning, rail freight) Substantial deterioration of SNCF Voyages Gross Profit GROSS PROFIT (LOSS) BY DIVISION - in millions of Euros SNCF Infra TAT (Intercités + Teoz) SNCF Proximités Except IC SNCF Voyages + G&C Except Teoz Fret SNCF SNCF Geodis Except Fret 19 SNCF Group Annual Results March 24, 2010

20 Group reacts effectively to crisis, adjusting costs to massive drop in activity CHANGE IN GROSS PROFIT (LOSS) in millions of Euros Change in Gross Profit excluding consolidation effects and exceptional items m Gross MOP profit réel Track access charges Duties and taxes Decline in Revenue Cost-cutting Change in consolidation scope Exceptional items (1) MOP Gross profit réel (1) Impact on Gross Profit : Electricity adjustments : m (2007 impact on ) CPA/CET : - 332m ( impact) Positive impact of exceptional items : m Change in swap gasoil fair value : + 6 0m ( impact) 20 SNCF Group Annual Results March 24, 2010

21 With revenue down 3.9% (at a constant consolidation scope) the Group has succeeded in cutting ordinary operating costs by 3.3% (excluding track access charges, duties and taxes) - COMPARATIVE EXCLUDING CONSOLIDATION EFFECTS OPERATING COSTS (GROSS PROFIT/LOSS) AND REVENUE as % of recurrent evolution Track access charges 5.0% Duties and taxes 7.1% Employee benefits expenses 1.8% Energy / Fuel -20.6% Other expenses -7.6% Total operating expenses -1.8% Recurring operating expenses excluding tracks access charges, duties and taxes -3.3% 21 SNCF Group Annual Results March 24, 2010

22 Reacting effectively and adapting to crisis conditions IMPACT OF ADAPTATION MEASURES COMPARED TO BUDGET in millions of Euros Initial guidelines vs. Budget Actual vs.budget Purchases and external charges HR leveraging Additional pension costs Specific streamlining cost-cutting measures (1) and cost-cutting measures (1) TOTAL (1) Sales relaunching plan, Cuts in track access charges, 22 SNCF Group Annual Results March 24, 2010

23 Other consolidated results 23 SNCF Group Annual Results March 24, 2010

24 Current Operating Profit of 145 million strongly affected by the deterioration of Gross Profit Excluding consolidation effects, deterioration of 816 million GROUP CURRENT OPERATING PROFIT - in millions of Euros Consolidation effects on (1) pro-forma consolidation scope vs vs Gross profit (loss) 1,688 (8) 1,696 2,591 (895) (34.5)% (903) (34.8)% Depreciation and amortisation Net movements in provisions Current operating profit (loss) (1,344) (9) (1,334) (1,257) (77) 6.2% (87) 6.9% (200) (2) (198) (354) 156 (44.1)% 154 (43.5)% 145 (19) (816) (83.3)% (836) (85.2)% (1) Geodis (4PL, Cool Jet, Giraud, Mory, Sincrolog/SCRI), ITL, Ermechem, Veolia Cargo, Novatrans, Thalys (passage d IG à IP) et NTV Amortisation allowances increasing for Rolling stock - 47m Information systems - 17m Net provisions variations : 156m Provision for cleaning pollution - 66m in, - 14m in Provision for asbestos removal - 108m in Provision for losses in CGI ending losses - 60m in, + 8.5m in 24 SNCF Group Annual Results March 24, 2010

25 Current Operating Profit 145 million Exceptional items in the amount of million GROUP CURRENT OPERATING PROFIT - in millions of Euros million ROCE ROCE Exceptional items (1) Recurring ROCE (1) Exceptional items : Variation in fair value (- 60m), Electricity cost adjustments 2007 impact ( 152m) (2) Of which - 13m for IBM 4PL/SCO and - 4m for Novatrans (3) Exceptional items : CPA/CET (- 332m), miscellaneous ( 106m) Decline in recurring operating profit (loss) at a constant consolidation scope Change in consolidation scope (2) Recurring ROCE Exceptional items (3) ROCE ROCE 25 SNCF Group Annual Results March 24, 2010

26 Group Operating Profit million, strongly affected by impairment losses totalling 1,037 million GROUP OPERATING PROFIT - in millions of Euros Consolidation effects on (1) pro-forma consolidation scope vs vs Current operating profit 145 (19) (817) (83.3)% (836) (85.2)% Impairment losses (1,037) 0 (1,037) (368) (669) 181.8% (669) 181.8% Net proceeds from asset disposal % % Operating profits (loss) (460) (19) (442) 856 (1,298) (151.6)% (1,316) (153.8)% Year end Depreciation ( m) breakdown: SNCF Infra (- 245M) SNCF Geodis (- 738m) including - 730m rolling stock SNCF Proximités (- 36m) : - 33m Intercités Materials (- 12m) : repairable parts of FRET SNCF equipment depreciated 70% Proceeds from asset disposal (+ 432m) of which Batignolles (+ 344m) & housing ( 61m) Compare to Year end : - Depreciation (- 368m) consisting of SNCF Infra asset depreciation (- 324m), New investments in depreciated SNCF businesses (Fret, Corail and Intercités : - 104m) and + 63m reversal of impairment losses on France Wagons - Proceeds from asset disposal (+ 244m) including real estate ( 220m : housing sold by State-owned public industrial and commercial institution (EPIC) and Novedis) 26 SNCF Group Annual Results March 24, 2010

27 Finance Costs improved by 201 million (- 303 million in vs million in ), principally affected by changes in fair value GROUP FINANCE COSTS - in millions of Euros Finance Costs Finance Costs Net borrowing costs excluding fair value Finance costs of employee benefits Fair value and hedge profit (loss) Worsening of employee benefits costs by - 27m including finance costs of the CPA Deterioration of - 27m in net borrowing costs end, in phase with indebtedness Positive spread of 254m between fair value and hedge end (+ 79m vs m in ) 27 SNCF Group Annual Results March 24, 2010

28 Net profit down - 1,555 million against Exceptional items : - 1,028 million Impact of drop in activity limited to million GROUP NET PROFIT - In m ,555 m Net Profit Net Profit Exceptional items Net Profit Net profit Before Exceptional Before Items Exceptional Items Decline in ordinary net profit (loss) at a constant consolidation scope Change in consolidation scope Net Profit Net profit Before Exceptional Before Exceptional Items Items Exceptional items (2) Net Profit Net Profit (1) exceptional items Impairment losses Deferred tax assets Change in fair value TARTAM 2007 impact +152 (2) exceptional items Impairment losses CPA/CET Deferred tax assets Net proceeds from Batignolles real estate asset disposal Change in fair value + 98 Miscellaneous SNCF Group Annual Results March 24, 2010

29 Financial position 29 SNCF Group Annual Results March 24, 2010

30 Free Cash Flow of million at year end, a notable deterioration of million compared to linked to decline in Cash Flow from Operations DECLINE IN GROUP FREE CASH FLOW In m Participation in economic recovery plan m Cash Invest. flow /equity from operations Asset disposal Net invest. Free cash flow Cash Invest. flow /equity from operations Asset disposal Net invest. Free cash flow Cash Invest. flow /equity from operations Asset disposal Net invest. Free cash flow SNCF Group Annual Results March 24, 2010

31 Decline largely due to decrease in SNCF Voyages Free Cash Flow FREE CASH FLOW BY DIVISION In m SNCF Infra SNCF Proximités SNCF Voyages Fret SNCF SNCF Geodis excluding Fret 31 SNCF Group Annual Results March 24, 2010

32 Progression of net debt to 1,140 million GROUP NET DEBT In m ,140 m Net Debt Net Debt Consolidation effects Cash flow from operations Equityfinanced investments Asset disposal Payment of dividends Other (2) Net Debt Net Debt (1) Consolidation effects : IBM 4PL (SCO) 283 NTV 34 (2) Change in fair value -100 Veolia Cargo 105 Cool Jet 27 Change in BFR operations + 13 Giraud 36 Autres 25 Other SNCF Group Annual Results March 24, 2010

33 Group capital-employed balance sheet analysis In m dec 31, 09 dec 31, 08 dec 31, 07 Goodwill Intangible assets Property plant and equipment 23,074 22,384 20,794 Investment subsidies (7,294) (6,423) (5,925) Equity shares Investments in associates Net deferred tex assets 896 1, BFR (1) (2,033) (2,548) (2,371) Provisions (3,090) (2,269) (1,961) Net asset of (5) (21) 0 Net capital-employed assets 13,769 13,938 12,712 Equity, Group share 6,519 7,898 7,884 Minority shareholders Net borrowing costs 7,172 5,965 4,480 Total permanent financing 13,769 13,938 12,712 Impaiment losses (2,075) (1,483) (1,340) Net capital-employed assets before impaiment losses 15,843 15,421 14,052 (1) The BFR figure includes a 225M advance payment to RFF for 2010 track access charges. 33 SNCF Group Annual Results March 24, 2010

34 Group Financial Ratios GROUP NET DEBT / EQUITY (GEARING) Increase in gearing due to higher level of debt and decrease in equity DETTE NETTE / MOP (HORS RETRAITEMENTS S&P) NET DEBT / GROSS PROFIT (LOSS) (EXCLUDING S&P RESTATEMENTS) Higher due to increased debt and worsening Gross Profit (Loss). Excluding Fret SNCF, the ratio is 2.1 in vs. 4.2 for the Group Group Excluding Fret SNCF and except recapitalization 34 SNCF Group Annual Results March 24, 2010

35 Financial Ratio Net Debt / Gross Profit from Ordinary Operations by division NET DEBT/ GROSS PROFIT (LOSS) FROM ORDINARY OPERATIONS BY DIVISION - In m SNCF Infra SNCF Proximités SNCF Voyages Fret SNCF SNCF Geodis Except Fret 35 SNCF Group Annual Results March 24, 2010

36 SNCF Group Annual Results Thank you for your attention 36 SNCF Group Annual Results March 24, 2010