FINANCIAL2019 AND CSR REPORT Statement by the parties assuming responsibility for the annual financial report We declare that, to our knowledge, the accounts are maintained in accordance with applicable accounting standards and give a true picture of the assets, the financial situation, and the income of the company and of all the companies covered by the scope of the consolidation. We also declare that the enclosed management report contains a table faithfully reflecting the growth, the income, and the financial situation of the company and of all the companies covered by the scope of the consolidation, as well as a description of the main risks and uncertainties that they face. Paris, 6 March 2020 Chairwoman and Chief Executive Officer Catherine Guillouard Chief Financial Officer Jean-Yves Leclercq This is a free translation into English of the Rapport financier et RSE 2019 issued in French and is provided solely for the convenience of English speaking readers. Editorial 4 RATP Group today 6 Our expertise 8 Our model for creating value 10 RATP Group organisation chart 12 Management Corporate report 13 Governance Financial results 14 Report 89 Internal control Composition of the Board and risk management 26 of Directors and terms of office 90 Non-financial performance Compensation and benefits 92 declaration 48 Diversity policy 93 Appendix 1 – List of directors and their terms of office at 31 December 2019 93 Consolidated Financial financial statements 158 statements 96 Statutory Auditors’ Report on the Financial Statements 159 Statutory Auditors’ Report on the Consolidated Financial Statements 97 Epic balance sheet 162 Consolidated statements Epic income statement 163 of comprehensive income 101 Notes to the financial Consolidated balance sheets 103 statements 164 Consolidated statements of cash flows 104 Consolidated statements of changes in equity 105 Notes to the consolidated financial statements 106 RATP Group — 2019 Financial and CSR Report 3 “Now more than ever, the Group is making operational, economic, and environmental performance Catherine Guillouard RATP Group Chairwoman its core values.” and Chief Executive Officer Despite the detrimental impact the social unrest on metro and RER lines. As such, in November, our Group had at the end of the year concerning economic and Île-de-France Mobilités signed a historic €2.9 billion deal performance, amounting to –€150 million in to upgrade the rolling stock on eight metro lines. 2019, RATP Group achieved solid results in 2019, with a turnover of €5.7 billion, a net income RATP has stepped up its innovation policy through its of €131 million, and a net debt of €5.2 billion, autonomous vehicle trial programme, the launching of a stable compared to 2018. Excluding the effect mobility as a service trial in Île-de-France with Île-de-France of the strikes, turnover would have grown by Mobilités, the creation of a digital factory, and the striking of €327 million and net income would have increased several partnerships, notably with Airbus and Mobileye. by €181 million. The company has made customer satisfaction and However, the past year cannot be boiled down to the improving customer experience in public transport the strikes, long as they were. All throughout 2019, RATP key objectives in its strategy. We are focusing our efforts Group continued to grow, moving from fifth place to fourth on all aspects of customer experience, whether it be the among the global public transport groups, in France and relationship with our staff, stations (cleanliness, accessibility), internationally. ticketing, or passenger information. Focusing on customers Moreover, RATP pursued its significant investment efforts was our priority during the strikes, as witnessed by the (€1.8 billion in 2019), to the benefit of Île-de-France unprecedented mobilisation of over 1,200 employees to residents, to extend and upgrade its network and improve direct and inform our customers every day. its quality of service, continuing the energy transition The unrest at the end of 2019 should not make us forget on its bus network, extending four metro lines, pursuing that social dialogue was a reality over the past year, with automation works on line 4, and upgrading the rolling stock no fewer than 19 collective agreements signed. The year 4 RATP Group — 2019 Financial and CSR Report was also marked by our regional action policy to support headquarters was awarded the first E+ C– certification for local employment, encourage social inclusion, and support a positive-energy and carbon-reduction building. vulnerable groups, notably through our social outreach unit. In April 2019, our Group published its first non-financial Throughout 2019, RATP Group also stayed on course performance declaration, in response to a request made as for more responsible growth. This priority is at the heart much by investors as by our customers, our partners, and of our CSR commitments and was clearly demonstrated our employees. throughout the past year. Finally, with the successful issuance of €500 million in green In 2019, RATP Group further enhanced its commitment bonds in June 2019, RATP once again combined financial to ecological transition. We continued transitioning our performance and environmental performance. This issuance approximately 4,700 buses towards “clean” energies such met with considerable success, with a request made for as electricity and NGV, with the clear objective of reducing more than €2.6 billion, demonstrating the strong credibility our greenhouse gas emissions by 50% by 2025. In 2019, our of RATP Group’s commitments with regard to sustainable tourism subsidiaries in Paris and London rolled out the first development and the attractiveness of its brand. 100% electric double-decker buses. Thus, in 2019, RATP Group concentrated on reconciling Towards the end of 2019, the reduction in greenhouse gas operational performance, quality of service provided emissions per passenger.kilometre reached –13% compared to customers, economic performance, and social and to 2015. environmental responsibility. This priority, which is at the This ecological transition also involves our building assets: as heart of RATP Group’s values, remains more relevant today such, in 2019, the construction of the future RATP Habitat than ever before. RATP Group — 2019 Financial and CSR Report 5 RATP Group today RATP Group is a historic leader in passenger transport and a recognised pioneer in automated systems. Today, it is leading the way in new forms of mobility, harnessing its wide-ranging expertise to deliver flexible urban mobility solutions meeting exacting standards. We work with territories to design made-to-measure solutions for passengers and residents, adopting an integrated approach all along the mobility chain and delivering innovative services and infrastructure to shape sustainable cities. A strategy for profitable growth Our ambition Group To be a world leader in urban, sustainable, €7 billion gearing <1 and connected in turnover in 2025, of which Net debt/ approximately 1/3 is outside mobility and become of Île-de-France or in new shareholder the privileged partner forms of mobility equity of smart cities ratio 4 priorities 4 levers 1. Operational excellence 1. Innovation and digital technology 2. Competition and development in France 2. HR policy and social dialogue 3. Smart and sustainable cities 3. Financial performance 4. Global development 4. Governance 6 RATP Group — 2019 Financial and CSR Report The macro trends at the heart of the Group’s transformation Urbanisation and the rise of megacities The 500 biggest cities in the world Megacities will contribute, between now Urban share and 2025, to of the global population More 50% more than 100 in 2015, 70% in 2050 cities with over 5 million residents than 75% (15% of the world’s population), in 2030 of growth in global GDP New customer expectations and new uses Emergence of the sharing economy Smart cities 35% €2,200 billion of journeys will take place Global smart city market in a shared vehicle in 2030 in 2025 Environmental awareness Cost of congestion Commitment Cost of pollution 2% to 4% COP21 1.5% of an urban area’s GDP France set to be carbon neutral of French GDP (source: McKinsey, 2017) in 2050 Increased and newly-formed competition Opening up RATP’s historic Borders are being erased with manufacturers monopoly to competition and major tech firms (Google, Apple, Facebook, Amazon and Microsoft) New 15% €2.5 billion of transport bookings are done market in Île-de-France in 2025 via an aggregator (Maps, etc.) RATP Group — 2019 Financial and CSR Report 7 Our expertise RATP Group has developed unique time-honoured expertise as a multimodal operator and is a world leader in urban mobility. RATP Group relies on six areas of expertise to build the city of tomorrow. 8 transport modes 5 partnerships 16 million operated in new forms of mobility daily journeys worldwide Metro Urban and Demand-responsive Railway Autonomous Scooter Smart interurban buses transport vehicle car park 4.8 billion journeys per year including 1.5 billion outside Île-de-France Sightseeing Tram Maritime shuttle Cable car Carpooling Car sharing Urban mobility RATP is a major player in urban public transport in Île-de-France. RATP Dev is the subsidiary that develops and manages contracts for operating transport networks outside of RATP’s traditional area, in France and internationally. Passengers Buy transport tickets. Mobility offering combining fluidity, high Transport authorities quality service, and safety. Delegate operations Group employees and maintenance. Payment of wages, Define the pricing policy. training, etc. Transport authorities, Suppliers State, local authorities Advertising Energy purchases, chartering, Joint funding and businesses materials, rolling stock, of investments. Contribute to the Group’s intellectual services, etc. revenue derived from the use of spaces. State and investors State and local authorities Shareholding Payment of taxes and duties. and financing. An economic model integrating a vast ecosystem of stakeholders “Traditional” revenues for a transport operator.