En-Financial Report 2016
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FINANCIAL REPORT AS OF DECEMBER 31, 2016 1 MANAGEMENT REPORT Board of directors’ management report on the 2016 consolidated and statutory financial statements .................3 2 CONSOLIDATED STATEMENTS Consolidated Financial Statements as of December 31, 2016 ............................................................................21 Statutory auditors’ report on the consolidated financial statements ...............................................................81 3 TRANSDEV GROUP S.A. STATUTORY ACCOUNTS Financial statements as of december 31, 2016 ................................................................................................85 Statutory auditors’ report on the financial statements..................................................................................103 BOARD OF DIRECTORS’ MANAGEMENT REPORT ON THE 2016 CONSOLIDATED AND STATUTORY FINANCIAL STATEMENTS TO THE ORDINARY GENERAL MEETING 3 CONTENTS ..................................................................................................................................................................................................................................................... MANAGEMENT REPORT ON THE CONSOLIDATED FINANCIAL STATEMENTS . .6 KEY FIGURES – CONSOLIDATED FINANCIAL STATEMENT . .6 GROUP KEY FIGURES . .6 GROUP PERFORMANCE IN 2016 . .6 FORESEEABLE TRENDS AND OUTLOOK . .8 RECENT DEVELOPMENTS AND SUBSEQUENT EVENTS . .8 RESEARCH AND DEVELOPMENT . .8 KEY FACTORS . .8 MANAGEMENT REPORT ON THE STATUTORY FINANCIAL STATEMENTS . .9 KEY FIGURES - STATUTORY FINANCIAL STATEMENTS . .9 BUSINESS ACTIVITIES OF THE COMPANY . .9 NEW INVESTMENTS AND DISPOSALS DURING THE FISCAL YEAR . .9 EXISTING BRANCHES . .9 RESEARCH AND DEVELOPMENT ACTIVITIES . .9 MISCELLANEOUS INFORMATION . .9 TABLE OF POWERS DELEGATED TO THE BOARD OF DIRECTORS . .9 EMPLOYEE SHAREHOLDING . .9 INFORMATION CONCERNING CORPORATE OFFICERS AND EXECUTIVE MANAGEMENT . .10 DIRECTORS’ FEES . .11 PROPOSED APPROPRIATION OF INCOME FOR 2016 . .11 AGREEMENTS ENTERED INTO BETWEEN SENIOR MANAGERS OR SIGNIFICANT SHAREHOLDERS OF THE COMPANY AND A SUBSIDIARY . .11 AMOUNT OF LOANS GRANTED BY THE COMPANY THAT ARE ANCILLARY TO ITS MAIN BUSINESS (ARTICLE L511-6 3 BIS, PAR. 2, OF THE FRENCH MONETARY AND FINANCIAL CODE (CODE MONÉTAIRE ET FINANCIER) . .11 INFORMATION ON TRANSDEV GROUP S.A. PAYMENT PERIODS . .11 APPENDICES . .12 RESULTS (AND OTHER KEY FIGURES) OF THE COMPANY DURING THE LAST FIVE FISCAL YEARS . .12 OFFICES AND POSITIONS HELD BY THE VARIOUS CORPORATE OFFICERS IN ALL COMPANIES . .13 Transdev • Financial Report 2016 5 MANAGEMENT REPORT ON THE CONSOLIDATED FINANCIAL STATEMENTS ..................................................................................................................................................................................................................................................... KEY FIGURES – CONSOLIDATED FINANCIAL STATEMENTS FISCAL YEAR 2015 FISCAL YEAR 2016 (€ millions) (12 MONTHS) (12 MONTHS) Revenue from ordinary activities 6,634.3 6,669.6 EBITDA (Earnings before interest, taxes, depreciation and amortization) (1) 416.9 392.1 Current operating result (1) 145.7 123.7 Net income 84.8 67.9 Net income – Group share 82.1 65.8 Net financial debt (NFD) 740.7 592.3 (1) Note VII.14.2. of the notes to the consolidated financial statements describes the conversion from EBITDA to current operating result and operating result. GROUP PERFORMANCE IN 2016 GROUP KEY FIGURES The financial results for 2016 confirm the financial stability of Transdev • The Group operates in 19 countries Group, which shows a net income Groupe share of €65.8 million. • Annual revenue : € 6,670 millions In 2016, the Group continued to make the effort to invest in new products (first full year of operations in the long distance bus market in France) and to adapt its on-demand transportation operations to the market in • 75,214 employees (1) a highly competitive environment. The Group posted a Current Opera- ting Result (COR) of €123.7 million, bolstered by the operational perfor- mance of the public transportation business in France, the United States, Germany, Sweden and the Netherlands. 2016 REVENUE - 12 MONTHS In terms of external growth, the Group acquired the remaining 50% equity & NUMBER OF EMPLOYEES IN 2016 (1) stake in the company that manages and maintains the Sydney Ferries ser- vice, as well as 100% of Urbis Park Services, the third-largest company 74,388 75,214 M€ 6,634 M€ 6,670 providing car parking management services in France. This last acquisi- tion gives the Group the ability to offer a broader range of services, by combining transportation and parking. Furthermore, the Group reduced its Net Financial Debt (NFD) by €148 million during the year. In addition, the Group gained financial autonomy during the fiscal year by: • Refinancing the debt owed to shareholders through two credit facilities obtained from banks; 2015 2016 Employees Employees • Raising a loan on the “Schuldschein” market (private placements Revenues Revenues 2015 2016 governed by German law) directly with international banks and ins- titutional investors. (see note VII.3.2 to the consolidated financial statements). (1) Figures do not include the contribution of public-private partnerships. Data on number of employees are stated as a weighted average number of employees and do not include discontinued operations or employees of joint ventures and associates. These transactions, combined with the increase in share capital of Caisse des Dépôts, which now holds a 70% stake in Transdev, provide the Group with additional leeways, now forward-looking future growth prospects. 6 Transdev • Financial Report 2016 MANAGEMENT REPORT ON THE CONSOLIDATED FINANCIAL STATEMENTS ..................................................................................................................................................................................................................................................... BUSINESS DEVELOPMENT AND ACTIVITIES GROUP ACTIVITIES AND RESULTS IN 2016 The Group experienced notable commercial successes during the year in The Group’s consolidated revenue totaled €6,670 million in 2016, a level numerous locations. of business that was adversely affected by an unfavorable foreign exchange impact of €24 million due to the depreciation of the British and In France, the Group was the successful bidder for the TADAO operating Swedish currencies. contract (communities of Lens-Liévin, Hénin-Carvin and Béthune-Bruay), Excluding this foreign exchange impact, revenue increased due to the the contract to operate the Ulysse network (in the Aix-Marseille metro- commencement of the Mittelsachsen rail contract in Germany and the politan area), and the contract to operate and manage the Pau-Pyrénées Wellington rail contract in New Zealand, as well as the vigorous growth airport as part of the Air’Py consortium. It also renewed the Calais urban of public transportation operations in the United States and Sweden. and Côtes d’Armor interurban transportation contracts. Moreover, the Group is actively preparing offers for several significant tenders. BREAKDOWN OF THE 2016 REVENUE BY LOCATION In the Netherlands, the operating contract of the Amsterdam region (Amstelland-Meerlanden), one of the Group’s largest contracts in that 8% 38% geographical area, was renewed. 5% In Germany 7% France US/Canada • The Group was awarded the Bad Homburg, Rendsburg, Kirchheim- Netherlands Treck, Wiesbaden Nord, RTK-Baderstabe and Offenbach-Ost bus 9% Germany Australia/NZ contracts; Sweden • In the rail sector, the Group was awarded the contract to operate 15% 18% Others the R6 rail line in Saxony, between Leipzig and Döbeln, and the contract for ticket sales and subscription management in the Rhein- Main region. At year-end 2016, EBITDA totaled €392 million, i.e. a margin of 5.9% of revenue, lightly decreasing compared to 2015. In the United States, the Group was awarded the QLINE streetcar contract (M1-Rail) in Detroit and the Valley Metro paratransit contract in Current Operating Result (COR) totaled €123.7 million at year-end versus Arizona. €145.7 million in 2015. In addition to these offensive and defensive commercial successes, seve- Despite the operational improvement of the public transportation business, ral contracts were extended (in particular in Sweden, the Netherlands, EBITDA and COR declined in the B2C sector, where the Group faces fierce Germany and Chile), with the effect of increasing the weighted average competition from new and disruptive operators. The Group intends to maturity of the contract portfolio already in operation. continue its operations in these activities where new mobility solutions are designed and to implement actions plans that should lead to improved Innovation is at the core of the Group’s commercial policy, as confirmed results. by the following major initiatives in 2016: • Development of electric mobility solutions in most countries in Revised forecasts in the United States due to this competitive situation led which the Group operates, in particular in the Netherlands, where the Group to recognize an impairment of €38.3 million on intangible assets the renewal of the Amstelland-Meerlanden contract, together with with an indefinite useful life used in the on-demand transportation business. the fleets in Helmond and Eindhoven, will ultimately bring up to 400 the number of 100% electric buses operated by the Group in that The cost of the Net Financial Debt totaled €24.6 million for the fiscal year. country,