RATP Group annual results for the year ended 2022

Evolution of key performance indicators

*  A pro forma statement of the 2021 accounts was established to enable comparability with accounts for 2022, following the reclassification of certain businesses abroad (London buses [excluding sightseeing buses] and tram operations in Algeria) in 2022, in compliance with IFRS 5.

Marked recovery in ridership across the Île-de-France region

In 2022, passenger numbers in the Île-de-France region clearly bounced back up, to reach 2.859 billion trips, the equivalent of a 21% increase from 2021. Such a recovery was buoyed by the gradually abating health crisis, resumption of tourism and the impact of rising fuel prices. The effects were most visible on rail networks (+32% on the metro network, +35% on the RER network, +17% on the tram network) than on the bus network (+2%), which was affected by major production hurdles in the second half of the year. Globally, ridership was on average 14% lower than at its pre-Covid levels (compared to 29% lower in 2021).

10% rise in consolidated turnover

The Group's consolidated turnover for 2022 attained €6.1 billion (up €536 million pro forma, equivalent to a 10% increase), a steady rise from 2021.

This recovery is attributed to the momentum gained with the expansion of subsidiaries (up €420 million); the increasingly profitable Tuscany contract (+€356 million); expansion in France, the United States and Egypt; and the favourable effects of the recovery in business and ridership on the Group’s earnings (up by €149 million, out of which an increase in €119 million for the RATP EPIC).

The contribution from subsidiaries to the Group’s overall turnover is on the rise, at €1.6 billion in 2022, or 26% of the consolidated turnover.
 

Operational performance and financial performance affected by difficulties on the macro-economic and social fronts

EBIT amounted to €193 million, compared to €327 million pro forma in 2021 (down by €134 million). This change reflects both the net impact (after applying indexation clauses) of inflation on service production costs (€96 million for the RATP EPIC), the effects of sick leave absenteeism and recruitment difficulties (with a notable €36 million increase in penalties for failure to meet contractual targets and a €35 million decrease in the earnings of the RATP health insurance scheme), as well as the €42 million provision made by RATP in 2022 for its dispute with URSSAF. These changes absorbed the positive effects of business recovery and continued performance plans, both for the EPIC and its subsidiaries.

The percentage of turnover attributed to consolidated operating income reached 3.2%, compared to 5.9% in 2021.

The Group share of net income stood at -€26 million, compared to +€207 million in 2021 (down by €233 million). This steep drop is mainly due to difficulties encountered in the public transport business operated by RATP Dev in London (reflected in the net income in line with IFRS 5), for which the Group has undertaken to review its strategic options, and also due to changes in deferred tax expense.
Cash flow is in decline, falling €76 million from 2021, to stand at €994 million.
Nonetheless, net debt has shrunk by €159 million (down by 2.8%), amounting to €5.536 billion at the end of 2022, benefiting from the marked improvement in working capital requirement. A slowdown in investments compared to 2021 affected only subsidised investments, with no impact on debt; the RATP EPIC’s equity investments are on a gradual rise (up by €29 million at €865 million).
Gearing (net debt equity ratio) has shown signs of improvement, and has been calculated at 1.02x compared to 1.14x at the end of 2021.
 

RATP is fully committed to implementing the ambitious investment programme set by the 2021-2024 contract signed with Île-de-France Mobilités (€8.5 billion over 4 years). The RATP EPIC invested €2.209 billion in the Île-de-France region in 2022 (€319 million of which were invested as part of project management delegated responsibility on behalf of Société du Grand Paris for the southern extension of metro line 14). It corresponds to a slight decrease compared to 2021 (-7%) due to the completion of several large-scale metro line extension projects and manufacturers encountering difficulties with the delivery of rolling stock:

• €1.202 billion were invested in upgrading the network and maintaining infrastructure: energy transition of the bus network (conversion of bus depots to electricity and biogas and purchase of electric buses); renewal of rolling stock on the metro (MF19 project), RER (MI20) and tram (TW20 for tram line T1) networks; renovation of MI2N and MI84 trains for the RER network; automation of metro line 4; upgrades to metro line 6 and commissioning of renovated MP89 trains; upgrades to infrastructure and maintenance workshops to accommodate new rolling stock; and fixed asset maintenance to ensure the durability and optimal working order of infrastructure (Track Ballast Renewal (RVB)[4] finalised on RER line A, Pont de Chartres bridge renewed, and so forth);
• €850 million metro and tram line extensions: northern and southern extensions of metro line 14, metro lines 11 and 12, connections with future Grand Paris Express’ metro line 15, tram line T1 extension to Val de Fontenay and tram line T3B to Porte Dauphine;
• €157 million to improve passenger comfort by upgrading stations and improving passenger information and accessibility: renovation of Auber, Vincennes and Charles de Gaulle-Étoile stations in addition to 11 metro stations; improving safety and accessibility (Place d’Italie and Saint-Michel Notre-Dame stations); upgrading of passenger information systems and installation of new displays on RER line A; and upgrading of ticketing systems to fit new digital tickets.

Overall, RATP Group’s consolidated investment amounted to €2.386 million (of which €319 million were spent on the southern extension of metro line 14 on behalf of SGP), a 12% drop compared to 2021. Investment by subsidiaries, summed to €177 million, has decreased compared to 2021, a year marked by the buyback of the assets necessary to operate buses in Tuscany.

RATP Group continued its fast-paced expansion in 2022, both in France and abroad, with 50% pro forma growth of its subsidiaries’ activities.
The increase in subsidiaries’ activities was boosted by an outstanding pick-up in ridership, notably with sightseeing buses which benefited from the resumption of tourism in major capital cities, the indexation of contributions from transport authorities and the positive effects of commercial development.
RATP Dev successfully started executing its new operating contracts: for buses in Tuscany and in Greensboro, United States; for trams in Lusail, Qatar; for train services in Egypt’s new capital city, and continued its dedicated work to prepare the commissioning of Riyadh's metro network in 2023. Along with its partner Keolis, RATP Dev met the major challenge of operating the Doha metro network during the FIFA World Cup while providing an exemplary quality of service. RATP Group deployed 75 experts to support the metro’s operational management during this outstanding major sporting event.
In the Île-de-France region, RATP Cap Île-de-France started operating two Optile contracts won in 2021 (Paris-Saclay and Bièvre networks).
Commercially, RATP Dev confirmed its position in France by renewing most of its urban contracts (except in Valenciennes) and strengthening its activities in the Auvergne-Rhône-Alpes and Centre-Val de Loire regions.
Abroad, RATP Dev won two major contracts at the end of 2022 that demonstrate RATP Group’s expertise in automated metro networks:

• The operating contract for the future metro line connecting to Western Sydney’s future international airport. As from 2023, RATP Dev, along with its partners Siemens, WeBuild and Plenary as part of the Parklife Metro consortium, will participate in designing and preparing the Sydney Metro-Western Sydney Airport (WSA) line for 4 years, before operating and maintaining it for the following 15 years;
• The technical assistance contract with the city of Belgrade to prepare for the operation of the three future automated lines of the Belgrade metro, set to be commissioned in 2028.
   

In the bus sector, RATP Dev also won the contract for the city of Raleigh, thus strengthening its position in the south of the United States.
In the United Kingdom, in a tense market due to macro-economic imbalance, staff shortage and social tensions, bus operations in London have faced challenges, like the majority of operators in this sector. In this difficult context, RATP Dev initiated discussions on measures to strengthen the strategic position of the companies in question on the London market, to help them continue their ambitious energy transition plan, regardless of their shareholding. The company currently owns 6 electrified depots and 256 clean buses, which represent 30% of its fleet.
In Algeria at the end of 2022, RATP Dev undertook to sell its SETRAM (tram operator) shares to the Algerian state in agreement with the concessionary authority.
RATP Dev and RATP Cap Île-de-France’s commercial activity kept a sustained pace in 2023, with ongoing calls for tenders in the Île-de-France region for the operation of buses (Optile and Paris inner-suburb networks), Grand Paris Express metro lines, tram trains for tram lines T4/T11 and T12/T13, and also the operation of urban networks in Lyon, Reims and Toulon, as well as regional train lines (TER) in several regions.
RATP Solutions Ville, RATP Group’s urban services subsidiaries, achieved several commercial successes in 2022: BNP Paris Real Estate and Apsys won the call for tenders to renovate the AP-HP headquarters (public assistance and Paris hospitals), then signed a black fibre and 3G/4G coverage contract for the southern extension of metro line 14 with Société du Grand Paris, opened a new 4,000m² site in Bagneux to develop the urban logistics offering, and acquired Cityscoot jointly with Banque des Territoires to support the company through changes to its organisational model. In 2022, RATP Solutions Ville started executing the concession contracts to operate Grand Paris Express’ fibre optics network (in partnership with CDC) and produce and distribute cooling energy for the City of Paris, in partnership with Engie. The subsidiary also developed its corpo-working activity on RATP’s commercial sites.
RATP Smart Systems continued its development of RATP Group’s MaaS project, as represented by the Bonjour RATP and Mappy applications, and enriched with new services.
Systra is the world leader in railway transport engineering and RATP Group holds 43.4% of its capital. In 2022, Systra achieved a turnover of over €900 million, with 18% growth in its activity, which was boosted by the surge of the HS2 high-speed line project in the United Kingdom. With over €1 billion worth of orders, Systra’s total orders amounted to over €1.3 billion, which corresponds to 16 months of turnover.
 

As a committed player in the ecological transition to sustainable cities and a carbon-neutral economy, RATP Group chose to willingly comply with the reporting system set out by European regulation 2020/852 regarding European Green Taxonomy. 
Eligibility and compliance indicators are evidence of the Group’s goal to publish an analysis of the sustainability of its activities for the sake of transparency and to demonstrate its full commitment to the climate change mitigation approach:

• 89% of consolidated turnover eligible (of which 97% for the RATP EPIC) and 51% aligned (of which 69% for the RATP EPIC);
• 86% of consolidated investment eligible (of which 93% for the RATP EPIC) and 32% aligned (of which 36% for the RATP EPIC);
• 64% of operating expenditure eligible (of which 87% for the RATP EPIC) and 55% aligned (of which 75% for the RATP EPIC).

This result is due to the enforcement of a policy committed to mitigating and adapting to climate change. It also exposes the areas for improvement and will be targeted by special action plans in 2023.
2022 also saw a 21% drop in greenhouse gas emissions (gCO2e) per passenger.km compared to 2015. This decrease is due to the reduction of GHG produced by RATP (measured in tonnes of CO2e), measured at -28% compared to 2015.
At the end of 2022, the Science Based Targets (SBTi) initiative approved RATP’s climate commitments in line with the Paris agreement’s most ambitious challenge, thus deeming them compatible with the goal to limit global warming to 1.5°C.

[1] For results to be comparable year on year, variations were calculated based on pro forma financial statements for 2021, owing to the reclassification of certain businesses abroad (London buses [excluding sightseeing buses] and tram operations in Algeria) in 2022 in compliance with IFRS 5.