Corporate

Solid 2016 results in line with 2020 targets

The RATP board of directors, chaired by RATP President and Chief Executive Elisabeth Borne, met on 24 March 2017 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 2016.

A cette occasion, Elisabeth Borne a déclaré : « En 2016, le Groupe RATP fait preuve de solidité dans un environnement économique peu favorable marqué par une très faible inflation et une baisse de la fréquentation touristique.  Dans ce contexte, nous affichons un haut niveau d’activité et une bonne capacité d’autofinancement qui nous permet de concrétiser nos ambitions en tenant notre trajectoire financière. En Ile-de-France, avec l’appui du STIF, nous maintenons un niveau record d’investissements pour permettre l’extension, l’entretien et la modernisation du réseau au bénéfice direct des voyageurs. En France et à l’international, nous nous sommes positionnés sur de nombreux appels d’offres prometteurs.


En 2017, le Groupe RATP poursuivra sa mobilisation en vue d’incarner la mobilité durable et la ville intelligente : premier appel d’offres massif pour l’achat de bus électriques, tests de navettes autonomes, développement à l’international. L’innovation sera au cœur de nos préoccupations dans tous les domaines, dans l’exploitation, la maintenance, et les services aux voyageurs. Tous nos salariés sont pleinement mobilisés pour mettre en œuvre notre plan d’entreprise Défis 2025. »

Solid results

  • Results that demonstrate the Group's robustness in a difficult economic climate
  • First year of the new STIF contract with a renewed financial framework
  • Implementation of an extensive investment program with STIF support, directly benefiting passengers in the Paris region
  • Dynamic expansion policy in France and internationally
  • Heightened Group commitment to sustainable mobility and the smart city
  • Group revenue in 2016 amounted to 5,448 million euros, a slight contraction
  • Subsidiaries' contribution to Group revenue amounted to 1,126 million euros, i.e. 20.7%
  • A very high level of investment in the Paris region at 1,784 million euros
  • Net result, Group share, amounted to 171 million euros, in line with forecasts taking account of 28-million-euro tax standardisation effect.

 

Elisabeth Borne stated at the meeting: “RATP Group demonstrated its solidity in 2016 despite the unfavourable economic climate characterised by very low inflation and a drop in tourist numbers. Even so, we posted a high level of activity and sound cash flow that make it possible for us to make our ambitions come true and stick to our financial trajectory. With support from STIF, we are upholding a record investment level in the Paris region to extend, modernize and maintain our networks for the direct benefit of our passengers. Elsewhere in France and internationally, we enjoy a strong position with regard to multiple and promising bids.
 
RATP Group will continue its drive in 2017 to epitomise sustainable mobility and the smart city with the first large-scale bidding process for electric buses, tests in driverless shuttles and international development. Innovation will be central to our concerns in all fields -
operations, maintenance and passenger services. All our employees are fully geared up to implement our 2025 Challenge corporate plan.”

2 Trends in RATP Group key performance indicators

Tableau des prix du ticket T+
in euro millions 31 December 2015 31 December 2016
in euro millions
Chiffre d'affaires consolidé*
31 December 2015
5556
31 December 2016
5448
in euro millions
EBIT récurrent
31 December 2015
590
31 December 2016
374
in euro millions
Résultat net récurrent Part du Groupe
31 December 2015
302
31 December 2016
171
in euro millions
Résultat net Part du Groupe
31 December 2015
437**
31 December 2016
171
in euro millions
Capacité d'autofinancement
31 December 2015
1046
31 December 2016
912
* with IFRIC 12 accounting standard applied
** including non-recurring items

Solid consolidated results

Group consolidated revenue amounted to 5,448 million euros in 2016, a 2% contraction compared to 31 December 2015.
 
  • The EPIC entity contribution amounted to 4,322 million euros, a 2.1% contraction. The minor contraction, which had been announced in the results for the previous year, was the result of the 100 million-euro contraction in contributions (scheduled in the first year of the new STIF contract for 2016-2020) and of zero indexation in remuneration owing to low inflation in 2016.
  •  
  • The contribution from subsidiaries amounted to 1,126 million euros, a slight contraction of 1.5% owing to wide-ranging effects such as the terrorist attacks and their consequence for tourism and an extensive currency effect (64 million euros). Excluding the currency effect, subsidiaries' contribution grew by +4.1% The proportion of subsidiaries' contribution to Group revenue remained unchanged compared to 2015 at 20.7%.
The Group's operating performance remained robust; net result, Group share, amounted to 171 million euros (199 million euros before taxes). The result fell below 2015 figures, as planned, for the following reasons:
  • Impact of new STIF remuneration, as mentioned above
  • Increased development drive with RATP participation in multiple and significant bids across the world
  • A cyclical drop in margins from the sightseeing bus activity owing to the impact on the sector by terrorist attacks
  • Increased provisions to apply IFRS (+44 million euros in 2015 compared to -21 million euros in 2016).
 
It should be remembered that RATP is also the owner and long-term manager of its infrastructure and is a major contributor to the renewal of transport operator assets in the Paris region. Consequently, RATP results must be used to finance its network modernisation and renewal investments.
 
In sum, RATP Group maintained high cash flow at 912 million euros. Its gearing (net debt to equity ratio) also improved slightly to 1.3.

Slightly higher traffic in the Paris region

Patronage rose moderately in the Paris region by 1.6% at over 3.3 billion journeys in 2016. The increase can be explained in part by a beneficial calendar effect (an additional day compared to 2015). Excluding the calendar effect, the increase amounted to 1.2%, broken down by transport mode as follows:
 
  • RER: traffic up by 1.6 thanks to the implementation of all zones fixed rates
  • Bus: traffic up by 1.9%, again as a result of all zones fixed rates
  • Metro: traffic down by 0.5% owing to the contraction in tourism
  • Tramway: traffic up by 7.4% with a major impulse from the increasing popularity of lines opened at the end of 2014 and the extension of T6.
 
Over the year, the metro network posted production in peak hours of an average of 98% for all lines, thereby confirming the sound results obtained in 2015.
 
Punctuality on RER B remained close to 2015 levels (88.5% vs. 90% in 2015). RER A line posted a punctuality rate of 83.9% and was very severely impacted by suspicious packages (which prompted a loss of over one point over the year).
 
For the surface network, a higher headcount and new trip times on specific bus lines included in the STIF contract ensured significant reductions in internal production losses (from 1.4% in 2015 to 0.5% in 2016). Transport supply in the surface network amounted to 96.4% over the year (compared to 95.7% in 2015).

Investments remain at very high levels in the Paris region

Investments remain at very high levels

Investment by RATP Group in the Paris region in 2016 with STIF assistance remained at very high levels at 1,784 million euros:
  • 743 million euros to increase transport capacity
  • 299 million euros to renew and renovate rolling stock.
  • 743 million euros to modernise infrastructures and current facilities

Investment to increase transport capacity

Investment to renew and renovate equipment

Investment to modernise current infrastructure and facilities

Confirmed expansion in France and internationally

RATP Dev continued to expand in 2016, in particular in France. Teams also worked on major bids in the Middle East and North Africa.
 
In France, 2016 witnessed the launch of transport contracts in Epernay and Laon. Revenue from the region rose compared to 2015 despite the difficult economic situation. The improvement was driven in particular by the full year effect of the acquisition of Dupas Lebeda Entreprises (inter-urban and school transport) and the acquisition of Groupe Finand in the Hauts de France region, which
consolidated the position of RATP Dev in the provinces.
 
RATP Dev also won the contract in Vannes, had its contracts renewed in the Paris region for Flexcité 95 and Stile and in La Roche-sur-Yon and took part in the bid for Caen, for which a response is expected this year.
 
Internationally, 2016 was a particularly dynamic year in:
  • the USA, where the Washington D.C. tramway was inaugurated in February. RATP Dev will run the eight-station line for five years. RATP Dev recently won the contract for Lake County in Florida.
  • Canada: RATP Dev took part in and was short-listed for the automatic metro contract for which results are expected in 2017.
  • North Africa: RATP teams took part in the bid to renew line 1 and operating subsequent tramway lines in Casablanca.
  • the Middle East: RATP Dev teams worked on the bid for metro systems in Doha and Riyadh, with results to be announced in 2017.
  • Senegal: RATP and SNCF signed a framework agreement to become involved in the operation and maintenance of the future TER system connecting Dakar and its airport. This  will be a new major rail reference in Africa for RATP, following on from Gautrain in South Africa.
  • In Italy, the major operating contract for the bus fleet in Tuscany, which was won in 2015, is still disputed by current operators. The Tuscany regional authorities have just re-designated RATP Dev subsidiary Autolinee Toscane, the provisional successful bidder for the contract. The Italian Council of State will consider the matter in April 2017.
RATP Group subsidiary Ixxi, which focuses on developing new digital mobility solutions, is continuing its development trajectory. It set up a regional subsidiary in Bordeaux and acquired NAVOCAP (which specialises in operation assistance and passenger information systems) and SETIM (which specialises in the same systems and in ticketing). Ixxi also won an operating assistance system contract in Caen involving two tramway lines and 68 bus lines).
 
Systra, the subsidiary jointly owned by RATP ad SNCF, confirmed its global leadership in public transport infrastructure engineering. In 2016, SYSTRA confirmed its international development strategy: 60% of its revenue was generated outside its domestic market. The increase can be attributed to the acquisition of new companies in high-potential countries: Dalco Elteknik (Sweden), Scott Lister (Australia), SIAS (United Kingdom) and VETEC (Brazil). Another factor was the signature of large-scale contracts in the Middle East (Dubai tramway), northern Europe (modernising the Brussels metro), Africa (Dakar TER) and Asia (metro systems in Nagpur and Mumbai in India; Jakarta in Indonesia and Kuala Lumpur in Malaysia).

2017 outlook

RATP Group intends to continue the same dynamic of investment and growth in 2017 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, 2017 will witness:
 RER line A fully equipped with double-decker trains
 launch of the first large-scale electric bus bid as a sign of the acceleration in the Bus 2025 plan, which will mean an RATP fleet of 100% ecologically friendly buses by 2025
 continued work to extend lines 4,11,12 and14
 intensified experiments with driverless vehicles. After the success of current tests on the Charles de Gaulle bridge in Paris, shuttles will be tested at the CEA Saclay site and between the château and floral park in Vincennes.
 
The group can boast strong positions in France and internationally in bids for which results are expected this year and which are potentially worth over 900 million euros, almost 50% of which will be in driverless metro systems. Experimentation with driverless vehicles will feature prominently in 2017, for example in Boulogne-sur-Mer and in Austin, Texas, two networks operated by RATP Dev.
 
Thanks to this dynamic drive and the commitment of all its personnel, RATP Group is on a firm footing to achieve the financial targets set for 2020, i.e., revenue of seven billion euros (of which 30% generated by subsidiaries) and a Group gearing (ratio of net debt to equity) of close to 1.