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2017 Management Report July 2018 Contents

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2017 Management Report July 2018 Contents 2017 Management Report July 2018 Contents Introduction Governing bodies 7 Management bodies 8 Mission, vision and values 9 Summary of the management report of Projectes i Serveis de Mobilitat, SA 10 Business development Demand 12 statement Bus service offering Places-km provided 21 Usable vehicle-km operated 22 Number of passengers per usable vehicle-km 23 Other service quality indicators 24 Metro service offering Places-km provided 25 Usable vehicle-km operated 26 Number of passengers per usable vehicle-km 28 Other service quality indicators 30 Telefèric de Montjuïc service offering 31 Progress of costs per passenger Cost per passenger carried 35 carried and per hour of bus service Total cost per hour of the service 36 Revenue development 39 Progress made in rolling stock and Composition and average age of the fleet 41 fuel consumption Fleet reliability 42 Fuel consumption 43 New developments, improvements and In search of efficiency and improving the environment 46 projects for Bus Key actions in the Network Support Centre. 49 Projects to coordinate fleet programming and maintenance 51 Key measures in the Business Operations Centres . 55 New developments, improvements and New developments, improvements and projects for the Metro 57 projects for the Metro Service improvement 63 Improvement in the availability of trains and infrastructure 66 Development of 2020 maintenance 68 Measures taken in the field of security 71 Measures taken in the field of civil protection/self-protection plans 73 Measures taken to improve accessibility 77 Measures taken in the field of maintenance and cleaning 78 Contents Business development Management of quality and the environment Quality management 83 statement in TMB, TB and FMB Environmental sustainability 84 Studies 92 MB 99 Administration and Finance for the Metro 108 People Management People Management - Bus 110 People Management in the corporate area for Bus 113 People Management in the corporate area for Metro 125 People Management - Metro 131 Innovation and technology 135 International business 150 Communication, customer service and strategic marketing 154 TMB Foundation 179 Events during the financial year 186 Statement on the current situation Most significant data about the Bus network 208 of the company Barcelona Bus Turístic and Tramvia Blau 215 TB workforce as at 31 December 2017 218 Investments in TB 220 TB income statement 222 Most significant data about the Metro network 227 Metro workforce as at 31 December 2017 229 Investment in FMB 232 FMB income statement 234 Most significant data about the Telefèric de Montjuïc 239 Montjuïc Cable Car investments 240 Income statement of Projectes i Serveis de Mobilitat, SA. 241 Statement of financial position of Projectes i Serveis de Mobilitat, SA, as at 31 December 242 Most significant data about the TMB network 244 Consolidated income statement - TMB 248 Statement of financial position of the Consolidated TMB Group as at 31 December 251 Significant events after the close of the financial year 253 Outlook for the company TMB Strategic Lines 258 and future projects Company Plan 2018-2021 259 Situation regarding holdings in other companies 265 1 Introduction 2017 Introduction 5 Management Report Transports Metropolitans de Barcelona (TMB) is the common name for the companies Ferrocarril Metropolità de Barcelona, SA, (FMB) and Transports de Barcelona, SA, (TB) that manage the Metro and Bus network on behalf of the Metropolitan Area of Barcelona. It is the largest company within the Group, Ferrocarril Metropolità de Barcelona, SA, that prepares the consolidated financial statements. The Group also includes the companies Projectes i Serveis de Mobilitat, SA, (PSM) which operates the Telefèric de Montjuïc, Transports Metropolitans de Barcelona, SL, which manages fare products through the e-commerce platform Barcelona Smart Moving and other transport services and the associated company consolidated through the equity method, Transports Ciutat Comtal, SA. TMB also has the TMB Foundation, which takes care of TMB's historical heritage and promotes public transport values through social and cultural activities. The companies FMB and TB provide service in Barcelona and its metropolitan area covered by the Integrated Fare System (STI) of the metropolitan region of Barcelona, and they do so in a completely coordinated way which on a business level is achieved by sharing corporate and management structures. Ferrocarril Metropolità de Barcelona, SA, is the company responsible for producing the annual consolidated accounts, for the following reasons: — The Group's transport strategy is structured around Ferrocarril Metropolità de Barcelona, SA. — The business activity of Transports de Barcelona, SA, is complementary to that of Ferrocarril Metropolità de Barcelona, SA. — As a result of the previous points, Ferrocarril Metropolità de Barcelona, SA, heads up the Group's transport policy. 2017 Introduction 6 Management Report Furthermore, this is reinforced in terms of passengers carried, volume of business and the value of its fixed assets. As the main public transport operator for Barcelona, and as part of the daily life of thousands of citizens, TMB provides two regular transport networks (surface transport by bus and underground transport by metro) as well as various leisure transport options in order to: — Meet mobility needs and make journeys for the general public quicker and more convenient for reasons of work, shopping, leisure, etc. — Provide a public service that is accessible to everybody. — Improve the quality of life in the metropolitan area of Barcelona, cutting the journey times down between its various cities and towns. 2017 Introduction 7 Management Report Governing bodies In the case of Transports de Barcelona, SA, and Ferrocarril Metropolità de Barcelona, SA, the administrative and representative body of the company is the Board of Directors of each of these companies, which is the highest decision-making body. The appointment of members to the Board of Directors of Transports de Barcelona, SA, and of Ferrocarril Metropolità de Barcelona, SA, is done by the Metropolitan Council of the Metropolitan Area of Barcelona, constituted as a general shareholders meeting of each of the companies. Currently, the chair, vice chair, chief executive officer and six of the board members serve on both boards. In the case of Projectes i Serveis de Mobilitat, SA, and Transports Metropolitans de Barcelona, SL, the governing body consists of a sole administrator, the chief executive officer, common to the companies Ferrocarril Metropolità de Barcelona, SA, and Transports de Barcelona, SA. In the case of the TMB Foundation (Transports Metropolitans de Barcelona), the last change to the Board of Trustees was made on 22 June 2016. 2017 Introduction 8 Management Report Management bodies Upon being constituted, the boards of directors of Transports de Barcelona, SA, and Ferrocarril Metropolità de Barcelona, SA, nominated a chief executive officer delegated with the responsibilities and powers to take charge of the day-to-day administration of the companies. The integrated management of the different services provided under the Transports Metropolitans de Barcelona (TMB) umbrella has enabled common management structures over the course of its history. That way, the various activities carried out at the heart of TMB are, whenever possible, managed in a common way across all of the companies making up TMB. The group has two management bodies: — The Executive Committee, which is TMB's highest executive management body, composed of seven senior managers from TMB, one of which is the chief executive officer who acts as its chair. — The Management Board, composed of the chair of TMB, the General Manager of the Metropolitan Area of Barcelona (AMB), the director of AMB Mobility and Transports, the Executive Committee plus various senior managers from TMB.<1> 2017 Introduction 9 Management Report Mission, vision and values The mission of TMB is: TMB's values are: — Commitment and a vocation for public services. To provide a public transport network: — Excellent service, efficient management. — that contributes to the improvement of public mobility — Socially responsible behaviour. and to the sustainable development of the metropolitan — Openness to innovation. area, — “Win-win” relationships. — guarantees the best customer service, — Recognition and fairness. — develops policies aligned with social responsibility, — Teamwork and team spirit. — within a framework of economic viability and efficiency. — Integrity and honesty. — Commitment to personal and professional growth. The vision of TMB is: — Respect. To be a point of reference throughout Europe as a competitive public transport and mobility company: — for its contribution to improving mobility in the Metropolitan Area, urban sustainability and the environment; — for the technical quality provided and the quality perceived by the general public; — for the efficiency of its processes and optimisation of resources; — for the efficient use of technology as a lever for improving service levels and efficiency; — for the excellence of its workers; — for its commitment to society and the general public; — for its international presence. 2017 Introduction 10 Management Report Summary of the management report of Projectes i Serveis de Mobilitat, SA The Telefèric de Montjuïc cable car completed its tenth full year of The maintenance work due to be carried out on the cabins includes operation in 2017 after it was totally renovated
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