Growing Together: Our Story 2012 and Beyond

VEOLIA AUSTRALASIA Transdev Growing Together : Our Story

Contents 1 Foreword

1 Foreword 3 In 2011, the world’s This report tells the story of our largest private passenger sustainability approach, activities and 2 Context 4 transport company achievements that reflect our businesses, was created when Veolia their local geographies, our clients and 2.1 Transport in Australasia 4 Transport and Transdev stakeholders and our long term commitment 2.2 Veolia Transdev international 6 merged to become to be a significant contributor to the one organisation, Australasian users of our transport modes; 2.3 Our Australasian businesses 8 Veolia Transdev. trains, , buses, coaches, monorail and light rail. 3 Our Sustainability Strategy 13 In recognition of this and the increasing obligations on business to balance financial This is the first time Veolia Transdev* 3.1 Our management systems and governance 14 performance with the expectations of has prepared an independent report distinct stakeholders to manage organisations in from the wider Veolia Environnement 4 Our results for 2011 15 a socially responsible way, Veolia Transdev group. It represents our commitment to 4.1 Safety 15 Australasia (VTDA) has developed a renewed the communities in which we operate; Sustainability Strategy, entitled Growing our aim to be transparent in the way we 4.2 Customers 19 Together, to provide the integrated local communicate with stakeholders and our 4.3 People 25 (Australia and New Zealand) entity with intention to embed our sustainability aims a shared vision and commitment. and objectives across our entire operations 4.4 Performance 28 and activities. The Sustainability Strategy provides the 4.5 Partnerships 31 businesses across the region with the This report provides our stakeholders framework to identify and respond to with our story – looking at our learnings 5 Looking forward to 2012 and beyond 35 the social and environmental issues and from both and Transdev, opportunities that will help us toward our current operations, approach and our business vision ‘...to be Australasia’s achievements, and our future ambitions acknowledged passenger transport leader’. and plans to achieve continued business success in a socially and environmentally responsible way.

Jonathan Metcalfe

Chief Executive Officer Veolia

*Unless specified, all references to Veolia Transdev refer to our Australian and New Zealand operations.

3 Veolia Transdev Growing Together : Our Story

2 Context

2.1 Transport in Australasia

The urban influence The impact of the global financial crisis

Passenger transport in Australasia is strongly The key issue given increasing patronage is influenced by the fact that the population to be able to fund the necessary growth in is largely urbanised, with strong economic capacity to the networks within the context centres driving travel habits both in terms of constrained budgets. Our 2011 Multi- of mode choice and destination. This places Country Barometer found that even though great pressure on the system during peak the global financial crisis has not hit as hour travel, with many services overcrowded hard in Australia as in Europe and the USA, but leaving off-peak services under-utilised. PTAs are still under budgetary pressure and Congestion on the roads is equally a problem this is reflected in a significant increase with the cost on the economy forecast to of respondents looking for a reduction in reach $20 billion by 2020.1 costs, even if this may mean limiting the level of service. At the same time, cities are expected to continue to grow in coming years; in the It is no surprise that the focus has moved case of by over one third by 2026. to making the most of existing resources This will place even greater demands on in times when funding to invest in new Contractual context Customer-centric the already overstretched transport infrastructure and services is limited. In contrast to many of the other countries The past few years have seen a strong network. In our 2011 Multi-Country Our stakeholder survey showed that in which we operate, passenger transport shift in emphasis towards developing more Barometer, authorities while implementing new services such in Australasia is usually run under contract customer-centric services including senior (PTAs) cited the need to adapt in the as light rail or Bus Transit (BRT) to the government PTAs which generally level appointments at a number of PTAs light of a changing demographic as key went up as a priority from 17% to 28% take responsibility for fare levels and and increased requirements on operators to improving the service to customers. from 2010 to 2011 in Australia and New collection, information and marketing, to improve customer services through new Zealand, it remains the third priority after Infrastructure Partnerships Australia’s timetabling and route planning. and renewed contracts. According to a safety enforcement and improving modal Rethinking Cities report focuses on the need TNS report completed for the Tourism integration. The exception to this contractual 2 to remain competitive in a global market, & Transport Forum , “customers remain arrangement is where services are run citing the need to move from infrastructure This would reflect the issues around service concerned about issues such as: commercially, usually long distance coach delivery ideals to more tangible actions. capacity and the requirement to build in services or those run for private industry · The frequency and reliability of public In particular it suggests that governments extra capacity to carry the ever-increasing such as the mining industry contracts transport services; must consider better demand management passenger load. (Bus In, Bus Out) run by Veolia Transdev’s · The inconvenience associated with options such as time of day road pricing Vivo Connect, for example. interchange; and and market reforms to make best use of the private sector. · The effects of overcrowding.” Veolia Transdev is well placed to respond to this demand with a suite of proprietary customer service tools and 92% of PTAs

1 Bureau of Infrastructure, 2 Improving your commute; lifting customer service in stating that we are dedicated to passenger Transport and Regional Economics etc. public transport, Tourism & Transport Forum, July 2011 satisfaction and services.

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Veolia Transdev Growing Together : Our Story

2.2 Veolia Transdev international An international network in 27 countries across 5 continents.

Formed as a result of the merger in 2011 between Veolia Transport and Transdev, Veolia Transdev is the embodiment of a business vision whose basis is reconfirmed by the unceasing movement of people in their daily lives.

We operate in 27 countries across five continents, carrying 3.3 billion passenger trips per annum across 13 modes of transport, in 60,000 vehicles and vessels. Our two main shareholders are Caisse des Dépôts & Consignations and Veolia Environnement.

Multi-modal

The world’s most multi-modal company, Veolia Transdev connects people and communities through train, tram, metro, light rail, coach, bus, BusWay®, paratransit, , taxi, car-sharing, shared-ride airport shuttle and bicycle.

A thriving business

In 2011, 15 new major contracts were awarded to Veolia Transdev with two to four new contracts awarded in each operating “zone” and 35 re-tendered contracts were successfully retained by Veolia Transdev. More than 80% of the value of these contracts is located in France, Benelux or North America. 69% of annual turnover re-tendered in 2011 was successfully renewed (or retained).

Responding to changing societal and environmental needs Americas Europe, Africa and Middle East Asia As in Australasia (see 2.1), population growth, newly emerging countries Canada Ireland Poland India and rapid urbanisation are creating an intensifying demand for transport United States United Kingdom Slovenia China Netherlands Croatia that will become even more pronounced by mid-century. Colombia South Korea Chile Belgium Serbia Australasia At the same time, the imperatives of the environment are altering travel France Finland patterns that can no longer be sustained by our planet and its growing Germany Australia Spain New Zealand cities. New mobility “ecosystems” are needed to balance socio-economic Portugal Czech Republic Morocco development of regions with respect for the environment and better Slovakia quality of life. Improved safety for travellers, accessibility, inter-modality, operational efficiency and personalised services also must be a part of new mobility solutions. “Above all, Veolia Transdev is a community of women and men Local authorities are looking for trusted partners who can work with them who, through their skills, commitment and combined cultural closely and that possess the strength, skills, resources, innovation and diversity, offer their fellow citizens the very best in mobility.” investment required to improve quality, without increasing the demand on public finances. Jérôme Gallot, Chief Executive Officer, Veolia Transdev

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Veolia Transdev Growing Together : Our Story

2.3 Our Australasian business

Veolia Transdev has been operating Our services include bus, rail, light rail, passenger transport services in Australasia monorail and ferry for public transport and since 1997. Veolia Transdev Australasia coaches for the industrial sector. We have operates across five different regions and over 3,000 staff and over 1,200 vehicles six modes of transport. and vessels carrying 86 million customer journeys per annum.

Vivo Connect Central Qld (coach) Staff 15 Vehicles 18

VT Qld (bus) Staff 212 Vehicles 144

Brisbane Ferries Strong market growth in 2011 Staff 192 Vessels 28 In 2011 Veolia Transdev successfully The eight year contract, which started acquired a new business in New South in May 2011, covers the northern suburbs VT Wales () and won a key tender of Perth and includes 113 buses, 210 VT NSW (bus) Staff 440 in (Joondalup). employees and three depots. VT Perth (bus) Staff 922 Vehicles 39 VT WA (bus & coach) Vehicles 441 The Caringbah bus service had been Given the timing of this report in 2012 Staff 1,101 operated by the Wood family since the we can also report that during 2012 we Vehicles 601 Harbour City Ferries early 1940s, originating with services in have been successful in tendering for Staff 560 the Royal National Park based at Loftus Ferries (in partnership with Vessels 28 and then moving on to regular route Transfield Services), a new industrial VT Sydney service around the Caringbah area. contract in central , as well (light/mono rail) as defending our existing contract in The Joondalup contract was put out to Staff 147 and consolidating our business tender for renewal in June 2010 by the Vehicles 12 with the contract for Orange School Western Australian PTA, . Veolia Buses in Busselton, WA. Transdev was announced as the preferred tenderer for the contract in November 2010.

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Our vision Our Values

Our vision is to be Australasia’s acknowledged Safety passenger transport leader. Safety is our number one priority – it underlines every activity we undertake whether on the front line, the depots or the offices. The safety of ourselves, our teams, our customers and our communities is paramount. Our mission Commitment

Our mission is to deliver high quality passenger Faced with the local and global challenges of mobility, we are committed to ongoing innovation. We deliver on our daily mission transport services in partnership with stakeholders. through inventiveness, creativity, sharing best practice and applying modern techniques. Our commitment underlies our client focus, our recognition of our societal responsibility and our results orientation.

Our promise Partnership

Partnership with each client means remaining close at hand, understanding Our promise is our guarantee of what you can and sharing their culture and listening and exchanging. This proximity allows us to foster dialogue with local public authorities and customers, expect when you travel, work or partner with us. relying on our diverse, collective strength to deliver solutions that anticipate their every need and expectation.

Passion

Around Australasia, it is passion that fuels the daily commitment of our teams. Supported by a company that encourages diversity and dialogue, each employee performs their professional responsibilities with the same entrepreneurial spirit and the same drive to be a trusted partner.

Performance

In committing ourselves individually and collectively, our focus is on performance. Constant quality improvement of operations and service, risk management and high results-based standards at all levels: these are the strengths that enable us to create value and offer a full array of mobility solutions with real and enduring benefits.

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3 Our Sustainability Strategy

Veolia Transdev’s Sustainability Strategy is built around our Sustainability Framework which reflects our business strategy.

In 2011 we set out to achieve a number of goals in relation to our Sustainability Strategy. These included:

Safety Customers · Reduce LTIFRs in relation to · Review Mystery Traveller program 2010 baseline · Extend Going for Green training · Business wide participation to all Veolia Transdev businesses in Safe Work Week · Extend Driver of the Year award · Development of new staff recognition to other bus businesses program Golden Safety Star Performance People · Investigate extension of Eco-drive or low · Development of our new values carbon fuel pilots to other subsidiaries · Develop mentoring and health Partnerships and wellbeing programs · Review our community and payroll giving program

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4 Our results for 2011

4.1 Safety

Safety is at the core of everything we do and a key platform of Veolia Transdev’s promise. Our continuous effort – from our drivers, maintenance teams and engineers through to our senior executive - to demand safety excellence and performance centres on measuring our performance, setting annual improvements targets, staff training and a safety culture campaign.

4.1.1 Measuring safety performance These are:

At Veolia Transdev we combine our safety · Public injuries and fatalities performance standards and commitment to (both passenger and non-passenger) excellence along with the expectations of · Employee injuries in terms of: each client. · Lost time injuries (LTI) Whilst the performance may vary according · Lost time injury frequency rate (LTIFR) to mode of transport and baseline our · Lost time injury severity rate (LTISR) commitment to meet and where possible · Number of near misses exceed is a consistent goal we set ourselves. · Fatalities 3.1 Our management systems and governance In terms of our operations, we use a number of different metrics to measure our · Severity of injury performance. · Vehicle safety Our Sustainability Strategy is managed The annual review will assess: through a Sustainability Steering Committee · Vehicle collisions · the overall direction of the Strategy comprising the Veolia Transdev Executive · Number of collisions with team (including the head of safety) plus · the relevance of the initiatives in the damage exceeding $15K AUD context of overall business direction, a representative from the businesses. · Number of near accidents client and customer expectations It is chaired by the CEO. The committee · Number of fires · the requirement to change or add new provides leadership and governance of · Serious Rule Violations initiatives, or to change timeframes, our approach, initiatives and reporting to help deliver business objectives · Signals Passed at Danger and meets quarterly. The Strategy is and strengthen our position as market (rail and light rail only) reviewed annually in line with our business leaders · Trespassing planning cycle and is monitored on a · progress against targets and outcomes (rail and light rail only) three monthly cycle. with a qualitative explanation of why · Groundings (ferry only) we have or have not been successful against projected outcomes. RAE bends over backwards to show Specific initiatives within the Sustainability the perils of incorrect handling

My job can be back breaking sometimes. I’ve been lifting all manner of heavy and awkward items to highlight the dangers of incorrect handling. Strategy are managed through project Poor manual handling accounts for roughly 20% of all accidents at work, so it’s worth taking care. Keep an eye out for potential obstacles, don’t attempt unmanageable items and get help led working groups, and other KPIs form where needed. part of each business’ monthly reporting.

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Each business provides a monthly report One of the benchmark indicators of on these key metrics. In the event of any safety and performance is LTIFR and our severe injuries or fatalities, Veolia Transdev performance for the year shows progress has a crisis management procedure to in the right direction. Whilst there is escalate any incident on the day of the more work to be done to achieve even event which is followed up by the lower rates of LTIFR, the focus on safety Executive team and company boards, and performance is encouraging. as appropriate.

FIG.1 Total Lost Time Injuries and Lost FIG.2 Non-passenger injuries and passenger injuries Time Injury Frequency Rate for 2011. per 100,000 km.

16 8 0.30 14.3 14 7 13.5 0.25

12 11.3 6 0.20 10 9.4 5

8 7.5 7.4 4 0.15 7.1 6.8 6.6 6.9 6.8 6.9 6 3 0.10 4 2 0.05 2 1

0 0 0.00

Jul 11 Jan 11Feb 11Mar 11Apr 11May 11Jun 11 Aug 11Sep 11Oct 11Nov 11Dec 11 Jan 11Feb 11Mar 11Apr 11May 11Jun 11Jul 11Aug 11Sep 11Oct 11Nov 11Dec 11 In the first year of the introduction of Vigil Left axis: Total LTI per month Passenger injuries Vanguard to the bus business, the following Right axis: Total LTIFR per month Non passenger injuries was achieved:

Case Study: The Vigil Vanguard • 37% reduction in accidents Driver Training System • 31% reduction in customer complaints The Vigil Vanguard Driver Training System was introduced into the Queensland bus business Vigil Vanguard consists of onboard cameras, • Reduction in maintenance costs through in 2009. The aim is to assess driver standards a GPS unit, and a comfort sensor unit. The from the perspective of safety, customer program is supplemented by a Mystery Rider minimisation of wear and tear to the comfort and customer service. on board the bus who can corroborate the data collected via the system. value of $35,400. Three assessments are conducted with all new applicants to ensure their driving standard Drivers are not aware of being observed It’s a key component of our driver training is at an acceptable level prior to their and therefore the program provides probationary period ending. As well, annual irrefutable evidence of inappropriate and definitely here to stay. assessments are conducted on all employees. techniques or behaviours.

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Right: Jonathan Metcalfe and joint 4.2 Customers Golden Safety Star winner Zane Young.

4.1.2 Safety Campaign 2011 Over the past 10 years there has been Complaints per 100,000 passengers is a a paradigm shift in the transport sector standard measure employed by all of our In 2011, as part of our commitment in Australia and internationally from an businesses. Although complaints do not to safety, we developed and launched operational focus to a customer service one. necessarily correlate to satisfaction, it is a safety campaign centred around the Many transport companies around the world a useful proxy for customer satisfaction in character RAE (Risk Assessment Expert). are reflecting this with the introduction of between the major satisfaction surveys. The safety strategy was developed to: Customer Service Charters and a focus on Other tools that we use to measure ongoing getting the basics right. customer satisfaction are Mystery Traveller · renew Veolia Transdev's focus (see case study below), Listen +, our For Veolia Transdev, responding to this on safety customer relationship management tool and challenge is reflected in our Customer Service · fully comply with global safety standards Meet the Managers, an ongoing program in The winners of the Golden Safety Star Award Strategy – a long term approach to develop · improve Veolia Transdev's overall which our managers go out on the network 2011 were two mechanics from our Shorelink relationships with customers – clients and safety performance. to interact with customers directly. business in NSW. The pair had designed and passengers. Our customer service philosophy developed new pit covers for the workshop The 2011 safety campaign focused is built upon a two-part proposition: FIG.3 Complaints per 100,000 passengers that were far less affected by wear and tear on three key activities: anticipating and responding to the needs 30 than the previous pit covers. The new pit of our current and potential customers. The · year-long communications focused 25 covers also minimised the risk of employees Customer Service Strategy will be centred on RAE, the safety icon falling into the pits - which is one of the on three key elements: 20 · participation in Safe Work Week Australia biggest safety hazards in bus workshops. 15 · People - including recruitment · Golden Safety Star Award. In late October the businesses took part and training 10 in Safe Work Week Australia, a campaign RAE quickly became the safety icon in 2011. · Customer communications - redesigning 5 coordinated by the Commonwealth The purpose of this was to have an easily our channels and tools and processes Government. Our train business in Auckland 0 recognisable character to communicate · Customer experience – including also hosted a safety specific week which Bus business in 15.7 safety messages to our employees. RAE vehicles, information, interchanges capitalised on the Australian program but was Bus business in Perth 2.8 was used to deliver key safety messages and ticketing. designed to suit the New Zealand business. Bus business in south west WA 9.5 associated with injuries, manual handling Bus business in north Sydney 6.5 and ergonomics. A number of different activities took place Customer service satisfaction results Bus business in south Sydney 12.2 throughout the week to put ‘safety in the To further reinforce the safety message Each year, in partnership with our clients, Ferry business in Brisbane 1.5 spotlight’. One of the aims of the week was we also introduced the Golden Safety Star we undertake customer service satisfaction Light rail/monorail business in Sydney 1.7 to take a more engaging and interactive Awards. These received very positive results surveys across each of our businesses. While Train business in Auckland 29.9 approach to safety, this was achieved through with over 25 nominations being submitted. these surveys differ in content and context workplace quizzes and daily ‘fun facts’ Our most recent annual performance on according to the unique expectations for The five finalists were invited to head office to relating to health and safety. The Internal customer satisfaction survey results from markets and mode, we have systems in attend lunch with the Executive team. At this Communications Survey, which was conducted the PTAs are summarised overleaf. place to collate our own data enabling us to time we also had a presentation to announce in December 2011, indicated that safety compare results in terms of the number of the Golden Safety Star Award winner(s). communications throughout 2011 had been customer complaints per 100,000 passengers, successful; two of the top three most recalled reliability and punctuality. messages from 2011 were safety related.

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New South Wales Western Australia

FIG4. NSW bus contract customer satisfaction FIG.5 Perth bus contract customer satisfaction

100 100

80 80

60 60

40 40

20 20

0 0

Bus Region Contract Customer Bus Region Contract Customer Ranking Satisfaction Ranking Satisfaction Average bus user 86% Average bus user 82% 97% 11 - South East 1 94% Fremantle CAT 1 92% 10 - South 2 92% Perth CAT 2 86% 13 - Mid West 4 90% Joondalup CAT 4 83% 12 - 6 89% Fremantle/Cockburn 6 Rockingham/Mandurah 6 83% Queensland New Zealand In NSW our bus services ranked among the highest in the 2011 Bureau of Transport In South West Western Australia the In Queensland the customer satisfaction In Auckland 84% of respondents rated Statistics Customer Satisfaction Survey, a customer service satisfaction surveys surveys are undertaken only by Brisbane the train service as good/very good/ survey of over 6,000 people. are not done by the PTA but the business City Council (for Brisbane Ferries). In 2011 excellent overall. Ratings of the Veolia undertakes monthly surveys. Eighty-four TransLink (for the Brisbane bus business) Transdev staff were also positive, with “It’s gratifying to see that the effort we’re per cent of our customers rated the service decided to stop undertaking customer 89% of respondents giving a rating of at putting in to improve our bus services has as average or above average. satisfaction surveys. least good for staff providing assistance resulted in some of the most satisfied bus to passengers when required, while 85% of In Perth, customer satisfaction surveys CityCat and CityFerry services (Brisbane users in Sydney, but we’re still focussed on respondents gave a positive rating for staff on behalf of the government are done by Ferries) continue to be regarded extremely initiatives that will take our operations to providing useful and relevant information. highly by our customers with a Customer the next level, particularly in areas of a research company called Painted Dog Research. The bus business in Perth runs Satisfaction Index of 86.9. When service Source: Gravitas report, January 2012 information, convenience and accessibility,” prepared for Auckland Transport attributes outside operator control are Managing Director of Veolia Transdev’s NSW services in five contract regions and, as removed the index goes even higher, to 88.2. bus operations, Morris Caputi. with NSW, are among the highest ranked contracts in terms of customer service. The report comments that ferry staff In Sydney 96% of customers rated the light in particular, are a key strength for the rail1 customer service as excellent or very ferry service, with customers spontaneously good and 90% of monorail2 customers were commenting on staff friendliness and very satisfied or somewhat satisfied with professionalism. customer service. Source: TNS report, December 2011, prepared for Brisbane City Council 1 Light rail survey undertaken Mar 2011 (note pre MyZone integration) 2 Monorail survey undertaken Feb 2009

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Who’s your favourite bus driver?

Vote for your favourite driver in To submit your nomination* for the Veolia Transdev Driver of the Year visit veoliatransportnsw.com.au Your chance the Veolia Transdev Driver of the to download a nomination form or contact us on the CB2609/NSW details below by 14 November. Make sure you include to WIN a Year Award for 2011 and you will the date, time, route number, driver’s name and the free double go into the draw to WIN one of reason you’re nominating them. movie pass! Email us on [email protected] 10 double movie passes! or write to us at: Driver of the Year, Veolia Transdev NSW, PO Box 209, NSW 2198.

* All nominations received become the property of Veolia Transdev and may be used in external publications and advertising to promote Veolia Transdev.

Case study: Driver of the Year Award Case study: Going for Green emotional state and respond appropriately. The training involves role plays that reflect The Driver of the Year Award program invites The program seeks written nominations Going for Green is Veolia Transdev’s real-life situations followed up by refresher customers to nominate their favourite driver from customers and is promoted in each of proprietary customer service training training throughout the year. The program is in their local area. The award is a great the local businesses by advertising in local program used by our businesses worldwide. measured in terms of customer satisfaction way of acknowledging team members that newspapers, posters in buses and editorial The program has been in place in Australia levels before and after the training.” consistently offer great customer service coverage in local media. since 2010 at all our Veolia Transport and is an opportunity for Veolia Transdev businesses (pre-merger) and will be rolled FIG.6 Percentage of staff trained to promote our involvement in the local The local business management team in out to our other businesses in 2013. 100 community. each location determined the selection Bronwyn Edwards, master trainer and nomination criteria for awarding 80 In 2011 the program was hosted in three of for Australasia, tells more: winners. In total just over 250 nominations our bus businesses in Queensland and NSW. 60 were received and the response from both “As at the end of 2011 we had trained This was the first year both the businesses bus drivers and customers was extremely 76% of our drivers from the Veolia Transport 40 in NSW have participated and the third time positive. side of the business in Going for Green and Queensland has run the award. Driver of the 20 we aim to have trained 100% of those by Year awards were voted for, and awarded, the end of 2012. The program is now being 0 in each of the respective businesses. redeveloped to suit the larger organisation Bus business in Brisbane 100% (post merger). We are looking at how it can Bus business in Perth 42% be adapted to also suit the ferry business. The Bus business in southwest WA 69% key focus of the program is to empower staff Bus business in south Sydney 100% to improve interpersonal skills and take better Light rail/monorail business in Sydney 100% care of customers. Using a traffic light analogy Train business in Auckland 96% staff are taught to identify a customer’s

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4.3 People

Human Resources provides structured Mentoring program models and expert advice to build a high Mentoring allows knowledge transfer, performing workforce, growing the skills, leadership development and broader talents and capabilities of our employees organisational development by adding and maintaining an environment where new skills often outside of an individual’s people want to work and perform at normal expertise. Our mentoring program their best. contributes to our aim of creating a high The HR team consists of functional performance workforce and culture through: specialists in head office who support our · providing a program that will help operations throughout Australia and New to actively engage employees Zealand. Our approach is people-centred, · furthering the career development respectful, clear, and supports growth and opportunities of our managers development as evidenced by our mentoring · creating an avenue for knowledge program which has been adopted at Veolia sharing between experienced managers Transdev internationally. and potential future leaders. We also understand the importance of culture as a driver of day-to-day behaviours The mentoring model was originally and have embarked on a broad-based designed for the transport industry by culture change program called Better the Transport and Logistics Centre (TALC). Together to create a spirit of inclusiveness The model has four phases that combined, and partnership. make up a continuous improvement cycle: analyse, design, implement and improve. We support our leadership teams with The cycle, and therefore the phases and the structure to promote and maintain a activities of the mentoring program, safe, healthy and harassment-free working revolve around the achievement of a “If anyone offers you this chance, welcome environment featuring fair and equitable set of outcomes specifically designed by it with open arms as it is probably one of conditions of employment. Veolia Transdev the mentor and mentee to improve the is committed to being an equal opportunity capability of the mentee. the best things you can do in your career.” employer. We set up a pilot mentoring program in Auckland in mid 2010. The pilot included “It’s great to pass on your knowledge and mentoring pairs and each pair attended a one day training workshop. The program is see someone else develop as a result.” now being rolled out across our businesses. The program has been extremely well received and is a key part of our talent strategy. Mentor, Auckland

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This is your opportunity to shape and define better our culture. together Come along and hear our CEO Jonathan Metcalfe share some exciting news about Better our company’s vision for the future. Better Better communication opportunities workplace

date: Friday 15 July time: 10.30 am All welcome

Better Together Case study: Happy Heart Promotion - Perth Better Better Better – the development of our values environment teamwork future In 2010 the bus business in Perth was A great organisation is differentiated from contacted by GIO Insurance to implement a good one by its culture and the values a health and wellbeing program, developed that underpin what it means to work in better by it in collaboration with Edith Cowan and together that organisation. Following the merger in This is your opportunity Curtin Universities. The management agreed to shape and define our culture. March 2011 between Veolia Transport and that there could be significant benefit to Transdev the new merged entity embarked the program which was designed to assess on a world-wide culture development In Australasia this program included employees with regards to the top seven Case study: Weight for health - NSW program during which process we identified intensive staff engagement through risk factors for developing cardiovascular One of the NSW bus businesses, Shorelink, a new set of values to underpin our work. extensive internal communication, disease. The program was designed by also took up the challenge of a health competitions, focus groups, and a series GIO with key health messages from expert The program was called Better Together and wellbeing campaign in 2011. In this of workshops including staff and senior bodies such as Nutrition Australia, Health and is based on the premise that because instance the program ran for eight weeks management. Each business appointed a Promotion Services and National Heart so many business challenges are common, with the aim being to educate participants culture change champion to lead on local Foundation. a business can only be truly successful by on nutrition information and to correct activity which ultimately fed into the working together, sharing ideas and guided It was first conducted in January/February misinformation and food myths. As well, national submission. by common values. 2011 and was offered to all staff on a the program encouraged participants to The resulting submissions were compiled voluntary basis. Activities included a The aim of the program was to: make and maintain changes to ensure at a one day workshop with the culture participant self-rating healthy heart maintenance of a healthy weight. · ensure all employees had a voice in champions in Melbourne and then submitted questionnaire, heart and lung screening The sessions were run by a qualified shaping the shared culture and values to our head office in where they assessments (blood pressure and height dietician and participants could bring in · encourage a sense of ownership in the became part of the international process for weight assessment), and individualised cholesterol or blood glucose results to values to define the global Veolia Transport educational counselling of pertinent health concerns, where there was participant discuss before the sessions. · connect everyday behaviours to the values. The results of this process, released interest. We were delighted with the vision and mission so as to complete during 2012, were five new values: Safety, response with over 40% of employees the picture of what is needed for success Commitment, Partnership, Passion and Performance. participating in the first year. · engage people in a new deeper way · foster the best aspects of the existing Contexutalised with the strategy of the businesses into the new company. organisation in a roadshow, the program has been very successful in making people feel involved and valued, and providing a clear vision everyone can all take pride in.

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4.4 Performance

Performance at Veolia Transdev goes As well, all our businesses are accredited Punctuality Reliability beyond the contractual KPIs which or working towards accreditation for Punctuality is the measure of number Reliability is the measure of number are based around customer numbers, ISO9001 (Quality management), AS 4801 of services which turn up on time. of services run out of the total number reliability and punctuality to ensure that (Occupational Health & Safety) and ISO14001 The definition of on time varies slightly of services contracted. our financial and operational performance (Environmental management). The following from contract to contract but is usually reflects environmental responsibility three graphs show performance in terms of based around no more than one minute and innovation. passenger growth, punctuality and reliability. early and 5 minutes late. Passenger Growth

FIG.7 Passenger Numbers 2011 FIG.8 Passenger Growth 2011 FIG.9 Punctuality 2011 FIG.10 Reliability 2011

50 100 100

40 80 80 30

60 60 20

10 40 40

0 20 20 -10

-20 0 0

Total Passenger Journeys 68,062,314 Target % Actual% Actual% Actual%

Bus business in Brisbane 3,341,624 Bus business in Brisbane 2.5 5.1 Bus business in Brisbane 99% Bus business in Brisbane 100% Bus business in Perth 28,453,619 Bus business in Perth 14.1 20.91 Bus business in Perth 87% Bus business in Perth 100% Bus business in south west WA 2,087,856 Bus business in south west WA 10.0 49.62 Bus business in south west WA 100% Bus business in south west WA 100% Bus business in north Sydney 3,465,961 Bus business in north Sydney 1.0 2.4 Bus business in north Sydney 100% Bus business in north Sydney 100% Bus business in south Sydney 13,341,528 Bus business in south Sydney 1.0 6.3 Bus business in south Sydney 99% Bus business in south Sydney 100% Ferry business in Brisbane 3,536,402 Ferry business in Brisbane 0.1 -18.03 Ferry business in Brisbane 100% Ferry business in Brisbane 100% Light rail/monorail business in Sydney 3,261,883 Light rail/monorail business in Sydney -3.7 22.44 Light rail/monorail business in Sydney 98% Light rail/monorail business in Sydney 99% Train business in Auckland 10,573,441 Train business in Auckland 17.0 19.0 Train business in Auckland 82% Train business in Auckland 96%

1 Figures include the new contract at Joondalup from July 2011. 2 Figures include the Worsley contract from July 2011. 3 Brisbane Ferries was particularly hard hit by the floods early in 2011 with ferries being out of action for a total of five weeks and 23 terminals needing to be rebuilt. This resulted in lower passenger numbers all year which are only gradually building back up to pre-flood levels. 4 From June 2011 an agreement was reached whereby users of MyMulti tickets were able to use these on the light rail system resulting in a massive increase in passenger numbers.

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4.5 Partnerships

4.4.1 Environment Our work with partners spans not just FIG.12 our work with our clients but also our National Greenhouse and Energy Reporting community partnerships, charitable The National Greenhouse and Energy As a company that meets the NGERs work and payroll giving. Our work in the Reporting Act 2007 (NGER Act) introduced reporting thresholds, Veolia Transdev community is recorded annually and then a single national framework for the provides an annual report to the Clean verified and benchmarked by the reporting and dissemination of information Energy Regulator which covers emissions Benchmarking Group (LBG). about the greenhouse gas emissions, by type of energy, Figure 4 below shows Spirit – Staff payroll greenhouse gas projects, and energy the outturn for 2011. use and production of corporations. Spirit is our staff workplace giving program which was launched in 2009. The program Cash contributions $81,165 FIG.11 NGERS outtur n 2011 encourages and facilitates staff to donate to In-kind contributions $41,031 Item Reported Unit 2011 Outturn one of our selected charity partners, both Staff time $3,505 national and local. Electricity Consumption KWHs 6,040,574 Employees can donate to the charities Case Study: Freedom Ride Diesel Consumption litres 19,330,000 directly from their pay and Veolia Transdev Bus business in north Sydney Unleaded Petrol Consumption litres 180,000 matches the contribution dollar for dollar, ‘In 1965 a group of University students from Natural Gas Consumption GJ 401,713 up to $500 per employee per annum. Sydney embarked on a 2,300km journey Liquefied Petroleum Gas for transport energy purposes GJ 1,465 In 2011 Veolia Transdev and its employees through northwest and coastal NSW. The donated over $100,000 to our charity Diesel GHG Emissions tCO2-e 52,657 ambition of their journey was to provide partners including $45,000 of matched Unleaded Petrol Emissions tCO2-e 364 exposure to the state of Aboriginal health, funding. Natural Gas Emissions tCO2-e 21,532 education and housing. I am a driver at Spirit is only one important way our LPG Emissions tCO2-e - Shorelink buses and was lucky enough to staff choose to support the community. be assigned to the task of transporting 25 Direct GHG Emissions tCO2-e 74,554 Many of our businesses and staff make students for two weeks on the Freedom Indirect (Electricity) GHG Emissions tCO2-e 5,615 additional contributions to charities and Ride 2011 journey, coordinated by Total Greenhouse Gas Emissions tCO2-e 80,169 community groups in their surrounding youthconnections.com.au. The Freedom Ride communities. initiative was developed in collaboration with Ecodrive Figure 12 shows how our contributions Aboriginal communities to expose the courage In 2009 we commenced our first Ecodrive Staff are provided training over three are broken down by cash, in-kind and of our ancestors by retracing the path taken in program at our business in south Sydney. sessions, each a drive of nine kilometres. staff time. 1965. Shorelink provided the bus for the two The program relates to driving techniques, The fuel, time and kilometres are measured week excursion and also covered the cost of mechanical knowledge of the vehicle and by on-board diganostics which reset after my time without which I would not have been health and wellbeing. The aims are to: each drive to give drivers their total fuel able to afford to participate. What seemed consumption. The trial showed a 9.8% at first like a two week job turned into an · improve the lifespan of the mechanical reduction in fuel use from the first to eye-opening experience and one that I will components of the vehicles the third drive. never forget. It is a real privilege to work for · reduce energy consumption and a company that provides these opportunities, therefore greenhouse gas emissions not only to their employees, but to the local · reduce stress and fatigue. community as well.’ John Oberg Operations Supervisor 30 31 Veolia Transdev Growing Together : Our Story

Right: Colin Jennings, MD of the bus business in Queenland, presents first prize for the poster competition to students from Mountain Creek.

Opposite: Brisbane Ferries staff showing their support for Day for Daniel.

Case Study Kids Teaching Kids

Kids Teaching Kids is a national education learning model and program of events that inspires future environmental leaders.

The program, which has been running for over 13 years, has been recognised by national and state education departments as offering a free, credible and quality curriculum program to schools nationally. In 2011 Veolia Transdev was the official transport partner of the Kids Teaching Kids program and international conference.

Our support of Kids Teaching Kids helped in three ways: Case study: Case Study: Case Study: Margaret River Bushfire Appeal Day for Daniel – Ferries in Brisbane Premier's Disaster Relief Appeal · Our travel fund helped 20 schools from – Bus business in south west WA – Bus business in Brisbane around Australia, with many being in ‘Daniel Morcombe was a young boy who went lower socio-economic areas, to attend the ‘On 23 November 2011 a severe fire started missing in our local area in Brisbane whilst ‘As with many other businesses, our bus annual conference on the Sunshine Coast in the Margaret River region of Western waiting for public transport. As a parent I business in Brisbane made a contribution to of Queensland. Without our support, many Australia. The fire burnt through about 3400 can relate to the difficulties associated with help Queenslanders that were impacted by the of these schools were unable to raise the hectares of land, destroyed 32 houses, five educating children to be aware and safe in floods early in 2011. As a company we gave a funds necessary to attend and participate sheds and nine chalets, including the historic public environments and unfortunately the $2500 donation. We also provided a free bus in an exciting week of learning and fun Wallcliffe House, while 22 houses and one young trusting nature of children can result which one of our drivers volunteered to drive about the environment. shop were damaged at Prevelly, Gnarabup in heartbreaking consequences. We here at for our staff to go out and help for a day. This and Redgate, some of which belonged to Brisbane Ferries chose to participate in ‘Day for bus would normally have cost $560 to hire for · Whilst at the conference, students the families and friends of our employees. Daniel’ on 28 October 2011 to mark our support the day. Our staff really appreciated being able moved around the local Sunshine Coast for Daniel’s family, and as a public transport to get out and help with the clean-up effort – area with the help of the bus business This was a unique time in WA, as operator, to help educate people in our it was such a massive event for all of us and in Queensland that provided a fleet communities were brought together to care community about travelling safely. All our staff it was good to see we were able to make a of buses. for affected families and salvage what was were asked to wear a touch of red on the day difference. We actually had run extra services left among the blackened land. Instantly, · The schools also participated in a and we sold wristbands, badges and pens to on the day of the floods to help get people out employees at VTWA were eager to get national poster competition to help raise money for the Morcombe Foundation. We of the city but we also lost two vehicles due to involved – and using our workforce and embed our key messages around the also included a slide promoting the Morcombe the flooding so it was definitely something that mobility we knew there was plenty we positive environmental impact of public Foundation and Day for Daniel on our onboard affected all of us personally in one way could do to assist the affected areas.’ transport in modern sustainable cities. screens to help raise community awareness.’ or another.’ Julien McGowan Business Development Justine Day HR and Communications Colin Jennings Managing Director

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5 Looking forward to 2012 and beyond Right: XXX

A new shareholder Safety Case Study: Charity Bus Wrap Case study: Big Help Mob – Bus business in south Sydney – Bus business in Perth In December 2011 Veolia Environnement Safety continues to be our number (international), a 50% shareholder in Veolia one priority. 'Two years ago I approached the Cancer Our team in Perth regularly help out Big Transdev, globally announced its intention 2012 will see the development of a new Council to see if we could work more closely Help Mob (BHM) in community activities to sell its share of Veolia Transdev and safety culture campaign, based around our together, given that they are a charity such as tree planting, or cleaning up a thereby exit the transport business. partner for our Spirit program. We agreed wildlife park for the rehabilitation for own staff, called Hear Our Safety Stories. to decorate a bus for Daffodil Day. This endangered birds. As well as our staff This move is part of a much wider The campaign will include videos of staff seemed like a terrific opportunity that getting involved, the business provides restructure of the group, over the next sharing their safety experiences. would resonate with our employees. buses and drivers to pick up young people two or three years, to reduce its debt and The Lost Time Injury Frequency Rate (LTIFR) who have volunteered to take part. enhance its long term prospects. We donated the bus and a local graphics continues to be a key performance indicator, company kindly applied the bus livery for free. Case study: Mobile phone recycling As well as selling off the transport division, one that shows what we are accomplishing The bus was used at the key events in Circular for the Starship Foundation Veolia Environnement is restructuring its in improving safety for our staff and our Quay, Sydney, and we kept it on our bus to – Train business is Auckland other businesses in response to a vastly target is to reduce the number from the perform our usual routes afterwards. Our drivers changed global economic climate. At the result of 7 in 2011 to 6 or below in 2012. In Auckland, where Starship Foundation were noticeably proud to drive the Daffodil bus time of printing there is no update on the is one of our charity partners, we donated Customers so we decided that decorating a bus would be new shareholder for Veolia Transdev. Caisse both old company and staff mobile phones an ongoing charity contribution at our business. des Dépôts, our other 50% shareholder, 2012 will see the development of a which are then recycled by the Starship has confirmed its commitment to the comprehensive, group-wide Customer Service In 2011 we supported the Prostate Cancer Foundation either giving them new life business and is considering increasing its Strategy focused around the framework of Foundation and decorated the bus in Eastern Europe or recycling their parts shareholding. people, process, and customer experience. with a blue ribbon. We chose this charity for use in new phones. The money raised because of its relevance to our employees goes to the Starship air ambulance service. However, at some stage during the second Included within our Customer Service and we ran it alongside an awareness Staff love this initiative as it is easy, they half of 2012, or perhaps early in 2013, we Strategy will be the development of a campaign which included things like only have to give away something that is expect to be in a position to announce a Customer Service Charter. As well we will blue payslips which had important facts virtually worth nothing and can feel good new shareholder, and as a result, a new be reviewing our Mystery Traveller program on the reverse. about donating trash to a good cause. corporate identity. at Brisbane Ferries, with the view to Likewise we found a good home for the developing a Mystery Traveller program that Not only is this a way for us to give back to many phones we use and break each can be used at our other ferry businesses the community, it is an opportunity to raise year as a business expense and now get across the world. awareness and to educate our employees. a benefit from those old and broken phones. Our workforce is mostly male with an average Our customer relationship management age of 50 - this group has the highest risk tool, Listen + is being upgraded and our of being diagnosed with prostate cancer. staff training program, Going for Green, Contributing to charity is important because will be redeveloped and rebadged. we can contribute to the health and wellbeing of our employees.'

Leanne Garland Executive Assistant

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People

Diversity Strategy

Veolia Transdev globally is a signatory to the “Charte de la Diversité en Enterprise” (Diversity Charter). The Diversity Charter is intended to demonstrate our commitment to cultural, ethnic and social diversity within our organisation.

During 2012 we will continue to develop our Diversity Strategy. There will be three key aspects of diversity which will receive special attention – age, gender and Indigenous Australians. The reasons for this is that we know from our 2011 Social Report that we have an ageing population (a large proportion of our staff are over 50) and that women are under-represented, particularly at management level. Our plan in the area of Values (Creating, Sharing, Living) Performance Cities will now have the ability to coordinate and connect services across age is complementary – on one level working 2012 will also see the continued In 2012 a measure of success in their entire transport network, including on health and wellbeing and flexible work development of our Values. performance will be business development, subways, trams, buses, vehicular and options and on the other hand mentoring and led by and our industrial Having created the Values in 2011, 2012 bicycle traffic, and more. succession planning to support successful contract in Central Queensland. is focused on sharing and living them. replacement of staff when they do chose to We intend to redevelop our green office Another group-wide roadshow will be the Other potential opportunities include retire. The priority for gender is to continue policy and continue to work on our initial forum to share the values with our Melbourne Bus and an employee transport work on attracting women into what has environmental credentials with the staff, followed by extensive communications contract in Darwin. Our work in the been seen as non-traditional career choices opening of a new, sustainably designed, and the inclusion of the values in our industrial markets will be supported by including bus driving, maintenance, train transport depot in South Granville, NSW. recruitment, induction, training and staff the launch of the new brand Vivo Connect. drivers, ferry masters and continue to work This depot should reduce dead running by on the representation of women at more review processes. As well as operational opportunities, we around 100,000 kilometres per year. senior levels. As well, the values will be brought to life will be developing our joint project with Internal and external communications through the introduction of the Golden IBM, Smarter Mobility. The smarter mobility We have spent a number of months educating will be extended by the development of a Star Awards – staff awards that reward solution brings together Veolia Transdev’s ourselves and are continuing to learn more group-wide social media strategy. Baseline exceptional results in safety, commitment, expertise in the public transit industry and about developing a Reconciliation Action work completed in 2011 indicated that the partnership, passion and performance. IBM’s expertise in managing massive data Plan (RAP), the aim of which will be to make most likely channels would be Facebook, quantities and advanced analytics. steps towards overcoming Aboriginal and LinkedIn and Twitter and that the audiences Torres Strait Islander social disadvantage. will be both staff and stakeholders. In The business which will start with the first most cases our clients look after the direct RAP will be the bus business in Sydney. communications with customers.

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Glossary

Brisbane Ferries Ferry services CityCat & CityFerry

G4G Going for Green proprietary training program

LTIFR Lost time injury frequency rate

LTISR Lost time injury severity rate

NGER National Greenhouse and Energy Reporting

VTAK Veolia Transport Auckland (train operations)

Shorelink Sydney bus operations Region 12

Spirit Payroll giving and community grants program

VTD Veolia Transdev (international)

VTDA Veolia Transdev Australasia

VTWA Veolia Transport Western Australia (Bunbury & Busselton bus operations)

Partnerships We will continue to work with industry VTP Veolia Transport Perth (Perth, Fremantle, Joondalup, partners such as the Tourism & Transport Rockingham and Mandurah bus operations) An important focus for our partnerships Forum, Infrastructure Partnerships is always our clients – in 2011 we undertook VTNSW Veolia Transport NSW Australia and the Committee for Economic a region wide PTA survey, the multi-country (Sydney bus operations Regions 10, 11 and 13) Development Australia. We support barometer. these organisations through sponsorship VTQ Veolia Transport Queensland In 2012 and beyond we will continue to of events, participating in the debate (Brisbane bus operations) engage actively with our clients to ensure and discussion on transport policy we understand what is important to them, and contributing to papers written for where there are new pressures or changing government submission. priorities and how we can best work with We will also continue to support other them to support their goals and objectives. groups and build on our relationships Our Spirit program will be revised to allow with the relevant unions. staff to choose new charities and we are intending to launch a community grants program which will allow employees to nominate local community groups to receive up to $1,000 to fund specific local projects.

38 39 GPO Box 5092, Melbourne 3001, Australia T: +61 3 8681 7500 E: [email protected] W: veoliatransdev.com.au veoliatransdev.com