NS Annual Report 2017
Total Page:16
File Type:pdf, Size:1020Kb
See www.nsannualreport.nl for the online version NS Annual Report 2017 Table of contents 2 In brief 4 2017 in a nutshell 8 Foreword by the CEO 12 The profile of NS 16 Our strategy Activities in the Netherlands 22 2017 Results 25 An attractive physical offering 29 Optimising the customer experience 34 World-class stations 39 Performance on HSL South 44 Perfect execution 48 New and upgraded rolling stock 50 Organisational improvement 55 Safe and sustainable travel Operations abroad 63 Abellio 65 Abellio’s strategy 67 Abellio UK 74 Abellio Germany 79 Outlook for 2018 NS Group 84 Report by the Supervisory Board 96 Corporate Governance 101 Managing risks 114 Finances in brief 126 Our impact on the environment and on society 138 NS as an employer in the Netherlands 144 Dialogue with our stakeholders 164 Scope and reporting criteria Financial statements 168 Financial statements 236 Company financial statements Other information 243 Combined independent auditor’s report on the financial statements and sustainability information 253 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 2017 In brief 2 NS annual report 2017 3 NS annual report 2017 2017 in a nutshell 2017 was a successful year for NS. We met the targets for passengers in the Netherlands, continuing the upward trend from 2016. We improved our performance in areas such as punctuality and we introduced new trains. We also made travelling by train more attractive, for example with high- frequency trains. In this way, we are working towards the midterm review in 2019 when the government will assess our performance. Abellio started the new West Midlands franchise in December 2017. 4 NS annual report 2017 Our performance on the main rail network Minimum Realisation in Realisation in value Target value Performance 2017 2016 for 2017 for 2019** General customer satisfaction with the 80% 77% 74% 80% domestic main rail network General customer satisfaction with 77% 78% 68% 73% HSL South services Customer satisfaction with personal safety 88% 87% 81% 83% Punctuality for passengers (to 5 minutes) on 91.6% 90.6% 89.2% 91.1% the main rail network* Punctuality for passengers (to 15 minutes) 97.4% 97.3% 96.7% 97.3% on the main rail network* Punctuality for passengers (to 5 minutes) on 83.5% 81.7% 82.5% 84.1% the HSL* Quality of connections to other carriers * 94.5% 94.1% 93.7% 95.6% Seat availability at peak times (main rail 95.1% 95.1% 94.3% 95.5% network)* Seat availability at peak times (HSL)* 96.8% 97.3% 91.2% 94.9% Top 10 busiest trains 2.4% 2.4% 4.9% 4.0% Journey information during the train journey 86.3% 85.8%* 78.0%* 83.1% Information in the train and at the station 83.2% 82.0% 75.0% 80.0% about disruptions * New value with respect to 2016 as a result of technical changes or changes to the methodology that have been taken into account in the performance indicators. The results are therefore not comparable to the results from the 2016 annual report. See Results for 2017 for an explanation. ** Target from the Transport Plan 2018 The completely revised timetable and the introduction of new trains improved train journeys in 2017. All the new FLIRT trains have been running since 2017 and, together with ProRail, we have been working on improvements to the facilities at smaller stations. As a result, the nationwide customer satisfaction figure for stations rose to 73% (2016: 70%). More bicycle storage facilities and public transport bicycles (OV-fiets) let us improve the door-to-door journey too. The introduction of the new timetable saw us bring in high-frequency services between Eindhoven and Amsterdam, with an Intercity train every ten minutes. This increased capacity on this busy route. All our trains in the Netherlands have been running exclusively on green power from wind energy since 1 January 2017. This means that the net impact of our train operations is CO2 neutral. These milestones boosted general customer satisfaction. The introduction of the new route from The Hague to Eindhoven on the High-Speed Line (HSL) South resulted in a disappointing first quarter because of the complexity of the system and product; performance on the HSL South improved considerably after that. This allowed NS to meet the performance agreements that were made with the Ministry of Infrastructure and Water Management. 5 NS annual report 2017 Performance on the main rail network in the Netherlands in the longer term Punctuality for passengers OV-fiets 93 3,500,000 3,000,000 92 2,500,000 % 91 Amount 2,000,000 90 1,500,000 89 1,000,000 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017 Punctuality Journeys Customer opinion Revenue 82 5,250 5,000 80 4,750 % 78 4,500 In millions of euros 76 4,250 74 4,000 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017 Customer opinion Revenue (in millions of euros) Abellio NS is continuing to acquire experience in the United Kingdom and Germany through Abellio and we are preparing for any further deregulation of the railways. In 2017, Abellio UK and its partners won the West Midlands franchise in the United Kingdom and Abellio Germany added WestfalenBahn to tis portfolio. Abellio is now the fourth largest carrier on the railways in both the United Kingdom and Germany. 6 NS annual report 2017 Finances In financial terms, NS had a positive year in 2017, but healthy business operations with sufficient returns remain a challenge. Revenues were €5,121 million, which is an increase with respect to 2016 (€5,093 million). The main rail network franchise KPIs for 2019 are leading factors in the financial policy as well for the NS business plan: total investments of €618 million meant we continued to invest in programmes that help us achieve the targets for the KPIs, customer satisfaction, new rolling stock and productivity. A profit of €24 million was recorded as opposed to €212 million in 2016. Whereas in 2016 NS still had exceptional income items from the sale of property (€117 million), in 2017 NS had exceptional items of expenditure, in particular the fine of €41 million imposed by the Netherlands Authority for Consumers and Markets (ACM). Our impact Passengers in the Netherlands travelled 150 million more kilometres by train in 2017 compared with 2016 (up by 0.8%), 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 were running entirely on wind energy in 2017. 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 show that this is increasingly being done usefully, reducing the negative impact of journey time. NS in 2018 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, it is important that everyone concerned remains focused so that the upward trend in performance can be retained. From April onwards, Eurostar will be running between London and Amsterdam. From the autumn of 2018 onwards, there will be a phased introduction of new Sprinters from CAF onto the tracks. We are continuing to invest in new trains and in modernising existing rolling stock. In addition, we are keeping our full attention on conduct and integrity within our organisation. We are continuing to work on improvement programmes for our key franchise KPIs. Furthermore, we are looking at the issues that are hot topics in the regions and at how NS can help improve mobility throughout the Netherlands. In Germany we are mobilising as part of the new franchises, whereas the focus in the United Kingdom is on operational improvements, taking account of the effects of Brexit on passenger behaviour and revenues. 7 NS annual report 2017 Foreword by the CEO NS can look back on 2017 with a suitably modest degree of pride. In addition to the good results, 2017 was once again a year in which we invested in our passengers. We also see the challenges: keeping the Netherlands accessible, good public transport in the regions and services on the High-Speed Line (HSL). The Netherlands is becoming increasingly urbanised, traffic congestion records are broken almost every week, the tracks are overcrowded during peak hours and Schiphol Airport is getting ever busier. The entire mobility sector – whether it’s cars, bikes, buses, metro or trains – is feeling how urgently the Netherlands needs to be offered the infrastructural space that it deserves in this period of economic growth. NS has an important role and responsibilities in keeping the Netherlands accessible and in motion. Our key focal point is the main Dutch rail network. But our customers don't travel by train exclusively: it's just part of the overall door-to- door journey. And we want to play a prominent role there too. On the right track NS has a franchise for the Dutch main rail network until 2025 and the government will be weighing up progress so far in the midterm review in 2019. Our performance in 2017 on the twelve franchise KPIs shows that we are on the right track, even if the services on the HSL will continue to demand our full attention over the coming years.