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NS Annual Report 2018

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NS Annual Report 2018 See www.nsannualreport.nl for the online version NS Annual Report 2018 Table of contents 2 In brief 4 2018 in a nutshell 8 Foreword by the CEO 12 The profile of NS 16 Our strategy Activities in the Netherlands 23 Results for 2018 27 The train journey experience 35 Operational performance 47 World-class stations Operations abroad 54 Abellio 56 Strategy 58 Abellio United Kingdom (UK) 68 Abellio Germany 74 Looking ahead NS Group 81 Report by the Supervisory Board 94 Corporate governance 100 Organisation of risk management 114 Finances in brief 126 Our impact on the environment and on society 134 NS as an employer in the Netherlands 139 Organisational improvements 145 Dialogue with our stakeholders 164 Scope and reporting criteria Financial statements 168 Financial statements 238 Company financial statements Other information 245 Combined independent auditor’s report on the financial statements and sustainability information 256 NS ten-year summary This annual report is published both Dutch and English. In the event of any discrepancies between the Dutch and English version, the Dutch version will prevail. 1 NS annual report 2018 In brief More satisfied 4.2 million trips by NS app gets seat passengers in the OV-fiets searcher Netherlands (2017: 3.1 million) On some routes, 86% gave travelling by passengers can see which train a score of 7 out of carriages have free seats 10 or higher Customer 95.1% chance of Clean trains: 68% of satisfaction with HSL getting a seat passengers gave a South score of 7 out of 10 (2017: 95.0%) or higher 83% of passengers gave a score of 7 out of 10 or Cleaning during the higher journey got lots of positive reactions 2 NS annual report 2018 Passengers arrive on Passengers can tap 206 new Sprinter time more often: their own water trains 92.6% NS is installing over 200 First ones on the track at (2017: 91.6%) water taps starting in the end of 2018 2018 Profit of Investments of Revenue of €106 million €898 million €5,926 million (2017: €46 million) (2017: €618 million) (2017: €5,121 million) Passengers feel safer 21,011 employees in Revenues from the Netherlands Abellio 90% give a score of 7 out of 10 or higher for United Kingdom personal safety in trains €2,467 million and at stations (€1,743 million in 2017) Germany €357 million (€246 million in 2017) 3 NS annual report 2018 2018 in a nutshell For NS, 2018 was a year with good results on the main rail network. We continued the course that was set in 2017. Passengers were more satisfied and operational performance on the Dutch main rail network was good. HSL South remained a challenge though, demanding attention because of the infrastructure and a software update. With these results for 2018, we are working towards the midterm review, when the government will assess our performance in 2019. 4 NS annual report 2018 Our performance on the main rail network Target Realisation Realisation in Minimum Performance value for in 2018 2017 value 2018 2019 General customer satisfaction with the domestic 86% 80% 74% 80% main rail network General customer satisfaction with HSL South 83% 77% 68% 73% services Customer satisfaction with personal safety 90% 88% 81% 83% Punctuality for passengers (to 5 minutes) on the 92.6% 91.6% 88.9% 91.1% main rail network * Punctuality for passengers (to 15 minutes) on the 97.7% 97.4% 96.7% 97.3% main rail network Punctuality for passengers (to 5 minutes) on the 82.5% 83.5% 82.1% 84.1% HSL * Quality of connections to other carriers 95.8% 95.0% 94.0% * 95.6% Seat availability at peak times (main rail network) 95.1% 95.0% ** 94.3% 95.5% Seat availability at peak times (HSL) 94.0% 96.0% ** 91.2% 94.9% Top 10 busiest trains 2.5% 2.4% 4.9% 4.0% Journey information during the train journey 85.0% 84.7% * 81.4% * 83.1% Information on the train and at stations about 85.2% 83.2% 75.0% 80.0% delays * A small number of performance indicators were changed and one information indicator amended in 2018. Regarding punctuality, there was a technical change to the underlying measurement system. The number of stations was increased from 18 to 27 for the quality of connections. For journey information during the train journey, technical adjustments were made to the calculations and the reference point was changed. ** The comparative figures for the chance of getting a seat on the main rail network and the HSL South have been corrected by 0.1% and 0.8% respectively as a result of physical recounts of the numbers of seats in the train. The train journey improved from the perspective of passengers in some key respects in 2018, with more trains per day, more trains running on time and a slightly greater chance of getting a seat. That was reflected in the general customer satisfaction, which rose by 6% to 86%, a record. This was the first year in which we ran Intercity trains every 10 minutes between Eindhoven and Amsterdam. We also started the gradual introduction of 118 new Sprinter trains, adding a total of 20,000 seats. More new trains will be brought into operation in the timetable over the next few years, including the New Generation Intercity trains. At the end of December, we announced an order for another 88 Sprinters. HSL South also saw an improvement in customer satisfaction thanks to the measures taken in 2017, in particular for the IC direct service. HSL South’s performance deteriorated compared with 2017 as regards punctuality (82.5% as opposed to 83.5%) and seating availability (94.0% as opposed to 96.0%). 5 NS annual report 2018 Performance in 2018 Customer satisfaction Punctuality 90 93.0 85 92.0 % 80 % 91.0 75 90.0 70 89.0 2014 2015 2016 2017 2018 2013 2014 2015 2016 2017 2018 Customer satisfaction Punctuality OV Fiets Revenue 5 000 000 6 500 6 000 4 000 000 5 500 3 000 000 5 000 Million € numbers 4 500 2 000 000 4 000 1 000 000 3 500 2014 2015 2016 2017 2018 2013 2014 2015 2016 2017 2018 Journeys Revenue (in millions of euros) Abellio NS is continuing to acquire experience on the European railway market through Abellio and we are preparing for any further deregulation of the railways. Revenue grew once again in 2018 following the addition of West Midlands in the United Kingdom and the expansion of our stake in WestfalenBahn in Germany from 25% to 100% at the end of 2017. This trend is expected to continue in the next year when Dieselnetz Sachsen-Anhalt and Rhein Ruhr Express start operation. The performance of ScotRail and Greater Anglia was disappointing. 6 NS annual report 2018 Finance It is crucial for NS to remain financially sound in the future as well. NS has invested substantially in new trains and IT, among other things. These investments are much needed but the outlay needs to be recouped. However, NS only has limited options for growing its income. NS can look back on a healthy year in financial terms. Revenues were €5,926 million, which is an increase with respect to 2017 (€5,121 million). NS made investments totalling €898 million. The main rail network franchise KPIs for 2019 are also determining factors in the financial policy for the NS business plan: for example, we are continuing to invest in programmes that will help us achieve the KPIs, as well as in customer satisfaction, new rolling stock and IT systems. Our impact Passengers travelled over 250 million kilometres more by train in 2018 compared to 2017, which means that our positive social impact on mobility and safe travel with respect to cars has improved once again. Our environmental impact also improved because our trains have been running entirely on wind power since 2017. Furthermore, measures were taken that reduced the negative impact of time spent travelling in packed trains. Studies into how passengers spend their time in the train and at the station showed that they are increasingly making good use of this time, reducing the negative impact of journey time. NS in 2019 Over the coming year, the focus will be on performing as well as possible for our passengers on the main rail network. As regards the HSL South, it is incredibly important that everyone involved remains sharp and focused on delivering good performance. We are continuing to invest in new trains; the new CAF Sprinters are being brought into operation in phases starting with the new 2019 timetable. 7 NS annual report 2018 Foreword by the CEO NS achieved good results last year. Passengers were more satisfied, and performance on the main rail network in the Netherlands was good. New Sprinter trains came into service, we smartened up stations and we improved door-to-door journeys. Together with the stakeholders and our colleagues, we formulated a new mission: ‘Together, we make the Netherlands accessible. For everyone.’ We achieved good results on the main rail network in 2018. All the objectives that we have agreed with our franchise authority, the Ministry of Infrastructure and Water Management, are on target. That is something to be proud of: it means that travelling with NS was a pleasant experience for passengers. It means that they almost always arrive on time, can usually count on finding a seat (even at peak times), feel safe at the station and on the train, and travel in clean trains.
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