SNCF GROUP FINANCIAL INFORMATION

Transcription

1 SNCF PRESS RELEASE PARIS, FEBRUARY 16, 2012 SNCF GROUP FINANCIAL INFORMATION 2011 ANNUAL RESULTS SNCF Group revenue totalled 32.6 billion in 2011, up 7.2% from 2010, with a 5.8% rise at constant scope of consolidation and exchange rates. EBITDA stood at 9.3% in 2011, a marked rise from 7.1% in 2010, but still too low to cover essential investments in service quality and development. Net profit totalled 125 million, reflecting the strong negative impact of 840 million in asset write-downs, including 700 million in TGV trains. Driven by a sharp rise in self-financing capacity (+ 716 million) and despite record capital investment of 2.4 billion, free cash flow rose 424 million to total 261 million for the year. Group debt was down 170 million to 8.33 billion. - Revenue 32,645 million, up 7.2%, and up 5.8% at constant scope of consolidation and exchanges rates - EBITDA 3,020 million (9.3% of revenue vs. 7.1% in 2010) - Recurring net profit 664 million vs. 231 million in Net profit attributable to equity holders of the parent of 125 million vs. 697 million in Free cash flow a positive 261 million vs. a negative 162 million in Net debt 8,329 million at 31 December 2011 vs. 8,499 million at the end of

2 Guillaume Pepy, Chairman of SNCF, comments: In 2011, all of our businesses reported higher EBITDA, as the recovery strategy we ve deployed since the beginning of the crisis paid off: - We have systematically addressed the structural challenges facing our company by restructuring rail freight transport in France in a new eco-friendly approach to transport; by negotiating an agreement with the French state for financing Trains d Equilibre du Territoire regional trains; and by signing a new infrastructure management contract in 2011 with Réseau Ferré de France (owner of the French railway network), on sounder terms. - Operating costs are now in hand and we have greater control of investments, most corresponding to commitments made prior to Marketing of our service offerings in France and abroad is gathering pace. Yet more progress is needed to ensure satisfactory levels of profitability in each division. In particular, rail freight services in France are still cash hungry and we were forced to write off TGV assets due to the insufficient profitability of our stock of TGV trains. While the outlook for 2012 is very uncertain, we stand by our strategic growth targets designed to make SNCF a world benchmark for people mobility and freight logistics. Turning to the upcoming reform of the French rail system following last autumn s national summit on the future of the railway transport in France (Assises du ferroviaire), we stand by our call to centralise infrastructure management expertise within SNCF Group, acting as system integrator and articulating all related competencies within a single group to ensure that the system continues to address genuine operating and business concerns. 2

3 KEY FIGURES AT 31 DECEMBER 2011 Consolidated data (in millions of ) Change (1) Change at constant scope of consolidation and exchange rates Revenue % % Gross profit (EBITDA) as % of revenue % % % % Current operating profit (loss) as % of revenue % % Operating profit Financial profit Recurring net profit (2) as % of revenue 0.8% 2.0% Net profit (attributable to equity holders of the parent) as % of revenue % % Self-financing capacity Net investment Disposals Free cash flow Net indebtedness (1) Changes in scope of consolidation: - SNCF Infra: consolidation of Systra and Inexia in SNCF financial statements under the equity method from 1 July SNCF Proximités: integration of Keolis from 1 February SNCF Voyages: impact of creation of EIL (Eurostar International Limited) from 1 September SNCF Geodis: primarily Giraud international, Ciblex and Bertola, acquired in 2010 (2) Recurring net profit: net profit excluding exceptional items 3

4 SNCF GROUP PERFORMANCE At 31 December 2011, consolidated revenue totalled 32,645 million, up 7.2% from Factors including full consolidation of Keolis (since 1 February 2010), acquisitions through SNCF Geodis (primarily the impact on 2011 of acquisitions made in 2010), the creation of a new engineering unit combining Systra and Inexia (consolidated in SNCF financial statements under the equity method from 1 July, 2011) and exchange-rate variations together represented 430 million, contributing growth of 1.4%. At constant scope of consolidation and exchange rates, revenue rose 5.8%. This includes 4.5% linked directly to operational activity, and 1.3% generated by contractual agreements signed in 2010 (a rail infrastructure maintenance contract; an operating agreement with Réseau Ferré de France (RFF), owner of the French railway network; and a financing agreement for regional Trains d Equilibre du Territoire (intercity services) with the French state in its capacity as transport organising authority). International business accounted for nearly 30% of growth resulting directly from operations. At year-end 2011, 23% of SNCF Group revenue was generated outside France. Gross profit (EBITDA) exceeded 3 billion to reach a record 3,020 million or 9.3% of revenue, up 890 million at constant scope of consolidation and exchange rates. This compares with 7.1% in All divisions reported gains in operating profit. The rise was driven primarily by SNCF Proximités (up 301 million at constant scope of consolidation and exchange rates), reflecting developments at Keolis, signing of the financing agreement with the French state for regional Trains d Equilibre du Territoire, growth in ticket sales and good production quality. SNCF Geodis contributed 123 million at constant scope of operation and exchange rates, with two-thirds from Fret SNCF (rail freight transport in France). SNCF Infra (+ 103 million at constant scope of operation and exchange rates) benefited from new contractual agreements for 2011 on sounder terms (rail infrastructure maintenance contract and operating agreement with RFF). The SNCF Voyages contribution rose by 59 million at constant scope of consolidation and exchange rates thanks to strong sales and moves to bring operating costs under better control, which offset a steep rise in external costs (track access charges for the railway network and energy costs for trains). Current operating profit totalled 1,255 million in 2011, up 780 million from 2010 at constant scope of consolidation and exchange rates. Operating profit came to 821 million, down 532 million from 2010 at constant scope of consolidation and exchange rates. It is worth noting that the 2010 figure was buoyed by major nonrecurring items including revaluation of Keolis, Ermewa and Eurostar shares, valued at 586 million. In contrast, 2011 bore major negative non-recurring items linked to 840 million in asset writedowns (including 700 million for TGV trains). Net profit attributable to equity holders of the parent amounted to 125 million, down 534 million from 2010 at constant scope of consolidation and exchange rates. This includes a tax charge of 295 million, 221 higher than in 2010 due to new 2011 legislation capping tax loss carryforwards and a rise in the TREF tax on profits of rail operators. 4

5 CAPITAL EXPENDITURE In 2011, capital investments amounted to 2,364 million or 238 million more than in 2010, topped up by additional outlays that were directly financed by organising authorities. Gross investments thus totalled 2,923 million 1, broken down as follows: 58% for rolling stock, including: - 20 TER regional trains, 26 Francilien trains for the Paris region s Transilien network, and 11 tram trains (six Dualis serving the region east of Lyon and five for Nantes Clisson) - 11 double-decker TGV trains - 33 locomotives - upgrades to vehicles and rolling stock used by Keolis, Eurostar, Geodis, Ermewa and STVA, as well as investments needed for their development 42% for Technicentre maintenance centres for rolling stock, station redevelopment and upgrades (including Gare de Lyon and Gare St Lazare in Paris, and the Besançon and Bellegarde stations on the Rhine/Rhone TGV line), technical equipment and IT systems. FINANCIAL POSITION Free cash flow was positive in an amount of 261 million, reflecting: - 2,364 million in capital investments that were partly covered by 2,148 million in selffinancing capacity (thus 91% cover in 2011, up from 67% in 2010) million in proceeds on disposals Net financial debt at 31 December 2011 amounted to 8,329 million, down 170 million from 8,499 million at the end of Part of investments financed by transport organizing authorities are booked as financial assets and not investment in tangible assets, in accordance with IFRIC 12 (accounting standard applying to concession contracts for public services). 5

6 PERFORMANCE BY DIVISION Revenue by division at 31 December 2011 (in millions of euros) SNCF Infra (infrastructure & engineering) SNCF Proximités (regional passenger transport) SNCF Voyages (high-speed passenger rail services) SNCF Geodis (freight transport & logistics) Gares & Connexions (station management & development) 2010 pro forma 2011 Change Change at constant scope of consolidation and exchange rates % +4.6% % +7.2% % +5.9% % +3.3% % +2.9% SNCF Group total % +5.8% EBITDA by division at 31 December 2011 (millions of euros) SNCF Infra as % of sales SNCF Proximités as % of sales SNCF Voyages as % of sales SNCF Geodis as % of sales Gares & Connexions as % of sales 2010 pro forma % % % % % 2011 Change % % % % % Change at constant scope of consolidation and exchange rates Note Pro forma financial statements for 2010: Figures for Téoz and Lunéa services, previously included in the SNCF Voyages division, have been attributed to the SNCF Proximités division since 1 January 2011 and consolidated with figures for intercity services to form the Trains d'equilibre du Territoire, which is subject to an agreement with the French State. To facilitate comparisons with 2011, figures from Téoz and Lunéa services in 2010 has been attributed to the SNCF Proximités division for accounting purposes. 6

7 PERFORMANCE BY DIVISION SNCF INFRA Revenue came to 5,295 million, up 2.2% or 113 million from At constant scope of consolidation and exchange rates, the rise was 4.6%, or 232 million. Key contributing factors were continued growth in renovation projects and development of the rail network, as well as contracts between SNCF and Réseau Ferré de France (owner of the French railway network) covering maintenance, train management and circulation agreements in EBITDA came to 229 million, up 93 million from 2010 and up 103 million at constant scope and exchange rates. The rise is due primarily to items related to operations, including firm control of payroll costs in the face of rising production volumes, greater efficiency in programme management and a return to breakeven for the 2011 maintenance agreement, now renegotiated on a sounder basis. A 57 million decline in gross profit from the Direction de la Circulation Ferroviaire (independent division within SNCF, which manages traffic and circulation on behalf of the owner of the railway network (RFF)) reflects changes in the method used to calculate payments with Réseau Ferré de France. Subsidiaries contributions to EBITDA are down 10 million, due primarily to the creation of the new Systra group from 1 July. As this is now consolidated under the equity method, Systra made no contribution to revenue and EBITDA in the second half of the year. SNCF PROXIMITÉS Revenue came to 12,324 million, up 10.1% or 1,128 million from At constant scope of consolidation and exchange rates, the rise was 7.2%, or 804 million. Keolis accounted for nearly one-third of this increase, reflecting buoyancy in international markets and the renewal of contracts in Lille and Lyon. Last but not least, TET Intercity trains (for lines serving regional and local planning & development) contributed nearly a quarter of division growth under an agreement with the French State. Other SNCF Proximités contracts (Transilien in the Paris region and TER service in the rest of France) benefited from strong ticket sales (up 8.2% for TER and up 3.6% for Transilien) and account for remaining growth reported by the division. EBITDA came to 811 million, showing a rise of 314 million from 2010 or 301 million at constant scope and exchange rates. An agreement with the French state on the operation of TET trains made a direct contribution of 208 million, while a strong showing from Keolis added 25 million, linked to a robust rise in business. The balance came from ticket sales combined with more efficient operation in 2011 (more trains running on time and fewer trains cancelled). SNCF VOYAGES Revenue came to 7,279 million, a rise of 5.4% or 373 million compared with The year got off to a rough start as track renovation and the sluggish economy took a toll, but the division rallied in mid-year. At constant scope of consolidation and exchange rates, full-year revenue was up 5.9% ( 408 million) compared with 3.6% in the year to June, driven by equally robust 5.8% growth in ticket sales on high-speed TGV trains in France and a 6.5% rise for international services. The number of passengers rose by 3.6%. 7

8 EBITDA was nearly unchanged from 2010 at 1,020 million (+ 14 million), showing a 59 million rise at constant scope of consolidation and exchange rates. Despite major external impacts including a steep rise in track access charges for the railway network (+ 240 million) and energy for trains (+ 34 million) when rates were deregulated), the division managed to stabilize its business performance in 2011, building on its strong sales effort and a drive to control external expenses and payrolls. SNCF GEODIS Revenue came to 9,427 million, a year-on-year rise of 6.0% or 538 million, with 251 million of growth coming from acquisitions made largely in Fluctuations in exchange rates had a limited impact (- 4 million). At constant scope of consolidation and exchange rates, revenue rose 3.3%, or by 291 million, driven in large part by the division s logistics and parcel service. The division s revenue grew in the first half of 2011, with a 6.3% rise (at constant scope of consolidation and exchange rates) at the end of June. It then stalled in the last six months, rising 0.4% (at constant scope of consolidation and exchange rates) as freight forwarding (down 7.8%) and road transport (down 5.1%) lost ground. At the end of December 2011, international markets accounted for 45% of the SNCF Geodis division s business. EBITDA came to 237 million, more than doubling from 2010 to 2011 (rising from 104 million to 237 million) saw a 133 million increase from 2010 and a 123 million rise at constant scope of consolidation and exchange rates. All activities within the division showed a rise, with Geodis up 46 million, with EBITDA of 222 million. Rail freight was up 68 million (at constant scope of consolidation and exchange rates, with a marked rise for Fret SNCF, handling rail freight transport in France (+ 81 million trimming the unit s loss to million), a slight improvement for all railway freight transport services (up 1 million) and, in contrast, a 15 million decline for multimodal businesses (due primarily to Novatrans). GARES & CONNEXIONS Revenue totalled 1,166 million, a year-on-year rise of 2.9% or 32 million, with two-thirds of revenue coming from station access charges paid by carriers. Access charges rose 4.5% in 2011, while revenue from shops grew 6%. EBITDA amounted to 175 million, unchanged from 2010, with charges keeping pace with the rise in business. 8

9 OUTLOOK Forecasts for 2012 call for economies in the euro area to level off amid significant uncertainties surrounding the debt crisis, price trends in major commodities, and trends in key currencies and interest rates. The rail transport business in France will also be affected by the major works and infrastructure upgrades called for the year Against this backdrop of generally unfavourable trends, SNCF's 2012 priorities will be to: - pursue efforts to resolve all structural difficulties, - pursue effective control of costs and investments, - adapt available resources to meet passengers' needs during 2012, improving client safety and comfort. SNCF Group is slightly ahead of schedule in deploying a business plan that calls for a lasting return to sustainable finances by 2015 both overall and in each of its divisions. While EBITDA showed a marked increase between 2009 and 2011, rising from 6.8% to 9.3% in response to the Group s recovery strategy, it is still below the 10.3% level achieved in 2008 before the crisis. SNCF's main goal is unchanged: to reach EBITDA equal to 10-12% of estimated Group revenue as quickly as possible, and to generate funds for ongoing investments essential to quality service and growth. *** In autumn 2011, a national debate on the future of French rail transport laid the foundation for a sweeping, coordinated reform of the industry. Measures could be implemented in the near future. As stakeholders address the changes required by the reform, SNCF is championing its vision of bringing all infrastructure management roles together within SNCF Group, as system integrator articulating all system-competencies within one group, to enhance performance at both operational and business levels. 9

10 KEY FINANCIAL DATES First-quarter revenue: 31 May 2012 Half-year results: 26 July month revenue: 25 October consolidated financial statements are available on the SNCF Group website ( under Finance About SNCF Group SNCF is a world leader in mobility and logistics with a presence in 120 countries and a total workforce of 245,000 generating revenue of 32.6 billion in 2011, including 23% in international markets. A public sector group dedicated to public service, SNCF builds on its foundations in rail to offer an extended range of services for smooth door-to-door mobility in the interest of transport and logistics operators, passengers, and the regional and local governments that are its organizing authorities. Targeting cross-border and international markets, the Group is made up of five divisions: SNCF Infra, managing, operating, maintaining and developing rail and related infrastructure; SNCF Proximités, operating local, urban and regional passenger services; SNCF Voyages, operating high-speed passenger rail services; SNCF Geodis, providing freight and logistic services; and Gares & Connexions, charged with train-station management and development. 10