2016 - keolis : acteur majeur du transport de voyageurs › sites › default › files › atoms...

14 March 2017

2016 : a solid and promising year

Press release

2016 Annual Results

Keolis: a leader in mobility solutions

2016 ANNUAL RESULTS 2


• 2016 was a solid and productive year for Keolis. Following significant growth in 2015, the Group’s

revenue increased slightly in 2016, with an increase in profitability (+5.5%) four times higher than that of revenue (+1.4%).

• With strong results in its core business, Keolis continued to develop new mobility solutions and assert its position as a leader in passenger transport.

Innovations & new

mobilities 2016 Results

2 2

KEOLIS – RESULTATS 2016 4


Technology breakthroughs and user innovations Technology breakthroughs and user innovations


• The transport landscape is evolving, with an increase in passenger expectations and ever greater demand for efficient transport solutions. However, private cars still remain the preferred mode of transport.

• New technological breakthroughs and user innovations have appeared in the mobility sector.

• Mobility is a challenge that digital and artificial intelligence technology seeks to meet through innovative solutions, such as driverless cars.


Innovation strategy: 4 strategic areas

Keolis & Moi Piloted in 6 subsidiaries

Smart Glasses in Boston

Network surveillance

drones

Plan Book Ticket

Innovation strategy: four strategic areas

Passengers Our offer

Partners Industrial Internet

16% total revenue of the new school year

75% regular users

Pass Pass Easy Card 10,000 downloads

11,500 passengers in Lyon since September 2016

1 shuttle, 3,250 passengers over 11 days in Las Vegas

Business volume: +35% Launch of 2 services with high potential:

PLUS, 500+ regular users in 6 weeks MiniLeCab, driver numbers doubling every 2 months

Suite of transport apps in Boston


Keolis' innovation strategy is divided into four strategic areas:

• Facilitate passenger travel by developing innovative services such as Plan Book Ticket, a digital solution to manage end-to-end mobility, from journey planning, to ticket purchase and validation.

• Complementing our traditional mobility offering with new shared transport services

• PLUS, a next generation shared driver service launched with LeCab and Via

• NAVLY, an autonomous shuttle service

• Support the day-to-day work of our partners with initiatives such as the development of “Keolis & Moi”.

• Develop Internet of Things technology and expand the Group's innovation strategy to all its business areas.

Keolis confirme la pertinence de sa stratégie d’innovation

Key shareholdings Strategic partnerships

& Minority investments

9

Strategic partnerships to support innovation

Internal Keolis developments

« Demand side » : multimodal digital

integrator

« Supply side »: Global leader in shared mobility

solutions New shared transport service

Peer-to-peer wheelchair-friendly car rental

Manufacturer of autonomous shuttles

Global leader in shared mobility solutions

Public transport application

Internet of Things

M-Ticketing Plan Book Ticket

Application

2016 ANNUAL RESULTS


• 2016 marked a new stage in the development of new mobility solutions, confirming our ability to provide innovative transport offers.

• Keolis’ innovation strategy seeks to meet the needs of citizens and employees.

• Industry innovations must be developed to ensure their availability, affordability and accessibility for clients and passengers.

• Founded on an approach of inclusiveness , Keolis works in collaboration with strategic partners.

• An innovation strategy is encouraged by the Group and driven by our subsidiaries at a local level.

• Keolis was able to adapt to new challenges in the mobility sector. By investing in new market players such as LeCab or Navya, the Group seeks to progressively integrate these new innovations into its existing activities.

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France

2016 Results

3

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KEOLIS – RESULTATS 2016

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Une année majeure d’appels d’offres 2016: a successful year of call for tenders

equal to

30% of Keolis’ revenue in France

€800M in revenue

CONTRACT WINS

2016 ANNUAL RESULTS


• 2016 saw a high volume of call for tenders, which allowed Keolis to consolidate and develop its activities.

• The contracts awarded or renewed in France generated a full-year revenue of €800 million, or 30% of Keolis’ revenue in France.


Renewals Contract renewals

Lyon: showcase of Keolis’ expertise


• Long-standing operator of the TCL network, Keolis’ contract was renewed in Lyon on 7 October 2016 for a period of six years. The contract is expected to generate a revenue of €2.2 billion.

• The renewal of this contract is significant, as it is the largest for the Group in terms of revenue and passenger numbers. The TCL network serves 73 districts and catchment areas and transports 1.7 million passengers each day. It holds the national record for patronage, with more than 350 trips per year per inhabitant.

• Whether it is metros, trams, cable cars, trolley buses, buses or autonomous electric shuttles (since September 2016), the Lyon network combines all these modes and is a true showcase of the multimodal expertise and operational excellence of the Keolis Group.


Renewal Contract renewals

Dijon: the first “comprehensive mobility” contract in France


• On 22 December 2016, Keolis won the first tender for the totality public transport services in Dijon. For the first time in France, public transport, parking and self-service bicycle rental are all combined under the same “comprehensive mobility” contract.

• This is a six-year contract and is set to generate €435 million.


Renouvellements: consolidation du portefeuille Contract renewals: consolidation of our existing portfolio

Urban transport:

networks in Laval,

Narbonne and

Chantilly

Transport for

people with

reduced mobility:

PAM 75 (Paris) et

Optibus (Lyon)

Suburban rail:

€90M in renewed

contracts

Maritime:

Penn Ar Bed sea

shuttles

Greater Paris

region:

20 contracts

renewed with STIF


Numerous renewals have enabled Keolis to consolidate its portfolio and demonstrate its capabilities as a multimodal transport operator.

• Urban transportation contracts with Laval, Narbonne or Chantilly.

• Renewals in specialised transport services with PAM75 (Paris) and Optibus (Lyon).

• Operation of Penn Ar Bed sea shuttles and provision of services to the Ponant Islands.

• Numerous suburban transport contracts and the renewal of more than 20 contracts in the Greater Paris region totalling €180 million in annual revenue.

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Renouvellements: consolidation du portefeuille Significant contract wins

Transport services for people with reduced

mobility: PAM94 Val-de-Marne

Chronoplus network Côte Basque Adour

2016 ANNUAL RESULTS

21

• The Group has secured several important contracts in France including the operating contract for the Chronoplus network in the Côte-Basque-Adour region, scheduled to commence on 1 April 2017.

• In the Greater Paris region, Keolis strengthened its leadership in the transport market for people with reduced mobility, winning the contract for PAM94 in Val-de-Marne.

2016 ANNUAL RESULTS


Strong momentum for business revenues Strong growth in ticketing revenue

+ 3.9% + 7.0% revenue in Bordeaux

+ 6.5% in Lille and Dijon


• Despite a difficult economic climate, Keolis achieved an above-average performance for the sector, reflecting an effective business approach for acquiring new customers and retaining them, and fare evasion policies.

• An increase of 3.9% in ticketing revenue across our 16 largest urban networks - over 95% of total

revenue – with a 1.6% increase in patronage.


A continuing acquisition strategy Acquistions in suburban transport


• Keolis is pursuing its development strategy in suburban transport. The company has made strategic

acquisitions such as Transports Daniel Meyer (Essonne, revenue: €43 million), a coach company operating in the Greater Paris region, to consolidate Keolis’ presence in the Paris market.

• In the summer of 2016 The Group also acquired Jacquemard (Eure, revenue: €3 million), a company also specialising in coach services, through its subsidiary Keolis Seine-Normandy.


A year of innovation A year of innovation

NAVLY Technological innovation

Brest cable car A new mode of urban transport


NAVLY autonomous shuttle service in Lyon: • First public transport service using autonomous electric vehicles in the world • Service consisting of two autonomous shuttles, running over 1.3km of public road in the Confluence district in

Lyon • Service integrated into the existing public transport system • 11,500 passengers in six months

Brest cable car: • First urban cable car service in France • 150,000 visitors in 58 days • 2,600 passengers transported per day, a significant increase on the 1,800-2,000 initially projected.


Outlook for 2017 Outlook for 2017

Contract renewals: €770 million in annual revenue including €560M for our five major urban networks


• 2017 will be marked by a wave of contracts up for renewal including five major urban networks: Lille, Rennes, Caen, Amiens and Lorient, with a combined revenue of €560 million.

• The Greater Paris region will be equally important for Keolis in 2017. The Group will position itself in major markets with the launch of the T11 Express tram-train as well as future tenders, such as the T9 and T10 trams and the CDG Express.


Parking: a year of strong growth for EFFIA Parking: record growth for EFFIA in 2016

External growth

Contracts won in 2016

+30,000 parking spaces

19

175,000 parking spaces

managed in France


• Continued organic development

2016 was a year of record growth for EFFIA. With a success rate of more than 50% of tenders this year, (19 contracts were won), the parking subsidiary has acquired 30,000 additional car park spaces and now manages 175,000 parking spaces in France. EFFIA won several major contracts, including the first one for public parking in the city of Saint-Malo. The subsidiary is also in charge of all parking as part of the “comprehensive mobility” contract in Dijon. EFFIA’s contract was also renewed for several car parks in Lille.

• External growth

EFFIA continues its external growth strategy initiated in 2015 by acquiring a stake of 33% in SAEMES, a partially government-owned parking company in Paris and the second-largest player in the parking market in the Greater Paris region. This strategic operation allows EFFIA to strengthen its presence in the region, which represents more than 40% of the parking market in France. In line with our digital strategy, EFFIA also took a 35% stake in OnePark, a specialist in online parking reservation and one of the most promising players in the sector. • Outlook for 2017

EFFIA intends to continue its organic growth having responded to around 40 calls for tender.

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International 4

2016 Results

32



Successes in 2016

Manchester 7 lines,

96km,

93 stations,

94 trams

37 million passengers annually


• The second largest city in England, Manchester, has the largest tram network in the UK: 7 lines, 96km of track, 94 trams, 93 stations.

• Keolis, which already operates the Docklands Light Railway (DLR) in London, will provide its expertise in mass transit for the 37 million annual passengers on the network.


Successes of 2016

Newcastle - Australia

1st multimodal contract in Australia


• The Newcastle contract is the first multimodal contract in Australia to be awarded to a private operator. Keolis will operate the bus network, ferries and the future tram network to be launched in 2019 for a 10-year period.

• With this contract, Keolis asserts its status as a preferred partner for the transformation of cities around the world.

37

Successes of 2016

Keolis consolidates its positions in Continental Europe

+1 rail contract in Germany

+2 bus contracts in the Netherlands

2016 ANNUAL RESULTS


• Present in Continental Europe since 2003, Keolis is established in 6 countries (Belgium, Denmark, Germany, the Netherlands, Norway, Sweden). The Group operates 5,600 buses and over 100 trains and trams.

• With the contract to operate the S-Bahn Rhein Ruhr suburban train network in North Rhine Westphalia, a region with 11 million inhabitants (awarded on 7 July 2016), Keolis will double its number of train-km, from 11 to 22 million. It will therefore become the first private company to operate high-speed, suburban and regional trains.

• In the Netherlands, Keolis continues to establish itself in the transport market securing two new bus contracts: one to operate 110 buses in Almere, Amsterdam, and another in Utrecht, where the Group started running a fleet of 200 buses on 11 December 2016.

• These new contracts in Germany and the Netherlands, in addition to several bus contracts in Sweden and the extension of the Bergen tram network in Norway, have enabled Keolis to strengthen its position in Continental Europe.


A positive trend for Boston

Successes of 2016

More than 1,000km

135 stations, 134 million passengers annually

Punctuality rate: 93% the best performance in

13 years


• In Boston, after a difficult year in 2015, operational performance levels improved significantly. Punctuality rates reached 93% on average over the year: its best performance in 13 years.

• Boston’s public transport authority voted on 6 March 2017 to give Keolis greater responsibility and control over increased services and the campaign against fare evasion. This is demonstrative of improvements in the operational performance of the network and the relationship between Keolis and the local transport authority.


Highlights of 2017

Launch of the Hyderabad overhead automated metro

3 lines, 66 stations,

57 trains, 71km


• With 71km of track, Hyderabad's automated metro will be the second largest network in India and one of the longest elevated metros in the world.

• With this contract, Keolis highlights its ability to respond to the specific needs of growing regions.


Highlights of 2017

Launch of the 8.3km driverless automated metro in Shanghai

25 million people Largest city in China

2nd driverless automated metro in China


• World leader in driverless automated metros, Keolis will operate the first service of this kind in Shanghai.


A year of strong mobilisation

Several network launches


Launches scheduled for 2017

• Hyderabad, India: third quarter of 2017 • Newcastle, Australia: 10 July 2017 • Manchester, United Kingdom: 15 July 2017 • Aarhus, Denmark: summer 2017 Launch of the first Danish tram network. Contract awarded in 2015. • Teutoberger-Wald-Netz, Germany: December 2017 Rail contract won in 2015. A network that represents 5.3 million annual train-kilometres • Launch of the regional train line (Overrijsel, Netherlands) : December 2017 2 train lines between Zwolle/Enscheide/Kampen • Launch of the Almere bus contract, Amsterdam, Netherlands : December 2017

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Financial results 5

2016 Results

47


1 975 2 036 2 378

2 647

3 249 3 562

4 033 4 138 4 459

5 002 5 075

2 006 2 007 2 008 2 009 2 010 2 011 2 012 2 013 2 014 2 015 2 016

2017/03/14 KEOLIS – 2016 RESULTS

Revenue* multiplied by 2.6 over the past 10 years

+10% CAGR in 10 years

* Including IFRS 10-11 for 2013-2016, but excluding UK minority partnerships and Holland between 2006 and 2012

+2.6%

+12.2%

2013-2015 : +20.9%


The revenue was multiplied by 2.6 over the past ten years.

• Keolis activity displayed steady growth averaging 10% per year over ten years.

1 570 1 665 1 812 2 021 2 245 2 366 2 629 2 735 2 798 2 819 2 879

406 371 566

626

1 004 1 196

1 405 1 403 1 662

2 183 2 196

1 975 2 036 2 378

2 647

3 249

3 562

4 033 4 138 4 459

5 002 5 075

2 006 2 007 2 008 2 009 2 010 2 011 2 012 2 013 2 014 2 015 2 016

14/03/2017 KEOLIS – RESULTATS 2016

21%

79%

43%

57%

+10% CAGR in 10 years

…43% of which was achieved internationally in 2016

X5 INTERNATIONAL

FRANCE X2


• International revenue was multiplied by five in ten years. The contribution from international activities has almost doubled from 21% to 43%.

• In France, revenue doubled over the same period.

5 002 5 075


Moderate growth in annual revenue

+€72M +1.4%

2015 revenue

2016 revenue


• Between 2015 and 2016 revenue grew by 1,4% despite a stagnant urban market with local authorities tending to reduce their level of support due to tight budgets and an unfavourable economic climate with inflation close to 0% impacting contractual indexation formulas.

5 002 (28) 106 (6) 5 075



2015 revenue

Foreign exchange

Scope 2016 revenue

Organic

+€72M +1.4%

-0.6% +2.1% -0.1%


• Keolis publishes its accounts in euros. Its activities outside the euro zone led to forex effects depending on the variation of the currencies relative to euros. In 2016, the euro appreciated compared to the sterling, the Swedish krona, and the Canadian and Australian dollars which led to a negative forex effect of €28M resulting in a -0.6% decrease in annual growth.

• The group carried on with its strategy of targeted acquisitions. The scope is built with both the full year effect of 2015 acquisitions, of which the acquisition of ATE in Australia in May 2015 but also the acquisitions made in 2016 including Daniel Meyer and Fouache bus companies, and LeCab in France, Gembloutois coaches in Belgium and Skyport in Canada. These activities led to growth of 2.1%.

• The Group did not benefit from the start of significant new contracts during the year. The organic base proved to be fairly resilient, despite low rates of indexation, a decrease in subsidies in line with contractual commitments but also despite the important reduction of works mandated by the local authority in Melbourne (with a negative effect of -€58M).

296 313


…accompanied by an improvement in profitability

+€16M +5.5%

2015 recurring EBITDA



• Growth in group profitability, measured by EBITDA, increased by +5.5%.

296 (1) 16 1 313

KEOLIS – 2016 RESULTS

…accompanied by an improvement in profitability

+€16M +5.5%

-0.4% +5.5%

+0.4%

2017/03/14

Foreign exchange

Scope Organic 2015 recurring EBITDA



• The forex evolution led to a negative impact of -€1M, mainly explained by the foreign exchange effect of our British, Swedish and Canadian activities.

• The acquisitions that we outlined earlier explain the growth of +5.5%. This confirms the satisfactory integration of these activities that achieved the business plans committed to during the acquisition process.

• The organic part remained relatively constant. At this point, it is important to underline the success of our performance plans, both inside and outside France. Annual objectives have been achieved, with a particular focus on the Boston recovery program which is ongoing. In short, the Group will have managed to maintain its margins in a context of low indexation.


…while maintaining a solid financial structure

Capex

228 235

2015 2016

+€7M


• We can see that the amount of capex remained almost stable between 2015 and 2016 with a volume of €235M.



Capex

228 235

2015 2016

+€7M

Free Cash Flow

-19

121

-107 -96

25

-126

+€151M

Cash flow excl. acquisitions

Acquisition cash flow

2016 2015


• Overall, the FCF increased by €151M between 2015 and 2016.



Capex

228 235

2015 2016

+€7M

Free Cash Flow

Net debt

791

2015 2016

+€79M 870

-19

121

-107 -96

25

-126

+€151M



2016 2015


• This solid financial control allowed Keolis to limit the increase in net debt to €79M. The level of net debt was therefore contained at €870M.



Capex

228 235

2015 2016

+€7M

Free Cash Flow

Net debt

791

2015 2016

Leverage ratio

+€79M 1.9x

2015 2016

2.3x 870

-19

121

-107 -96

25

-126

+€151M



2016 2015

+0.4x


• The leverage ratio which compares the debt level at year-end to the EBITDA for the year is at 2.3x, and therefore +0.4 compared to 2015. It means that we will be able to reimburse our debt within slightly more than two years of EBITDA. Keolis to limit the increase in net debt to €79M. The level of net debt was therefore contained at €870M.



791

2015 2016

+€79M 1.9x

1.9x

0,4x

Levier acquisitions

Levier hors

acquisitions

2015 2016

2.3x 870

Capex

228 235

2015 2016

+€7M

Free Cash Flow

Net debt Leverage ratio

Leverage ratio from acquisitions

Leverage ratio excl. acquisitions

-19

121

-107 -96

25

-126

+€151M



2016 2015

+0.4x


• The ratio would be unchanged at 1.9 by neutralising the impact of new acquisitions. The Group is well below the maximum authorized ratio of 3.5x.

• Keolis’ financial structure stayed strong and the Group has a real financing capacity for its future investments, particularly in innovation. We also managed to extend the maturity of our credit facility from 2020 to 2021 and will negotiate this year to extend it to 2022.


Summary of 2016

MODERATE GROWTH

SOLID FINANCIAL STRUCTURE

ANNUAL REVENUE

X 2.6 in 10 years

Annual revenue multiplied by 2.6 in 10 years

x5 internationally since 2006

x2 in France over the same period

DEBT LEVERAGE RATIO

2.3x …while maintaining a solid financial structure

ANNUAL REVENUE

+1.4% in 2016


+2.1% as a result of acquisitions

PROFITABILITY

+5.5% in 2016

… accompanied by an improvement in profitability

+5.5% as a result of acquisitions

Good integration of acquisitions and continued growth of the organic base

KEOLIS – RESULTATS 2016 71

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