annual results Record growth and continued transformation Press kit – 18 April 2019 2018 FIGURES Keolis pursues its strategy GROWTH PERFORMANCE TRANSFORMATION Keolis’ growth relies on two aspects: excellence in the Group’s core business and developing new solutions. This growth is reflected by the continuous improvement of operational performance, which supports the transformation of the Keolis Group. Increase in turnover and recurring EBITDA TURNOVER RECURRING EBITDA +10% +15% 2018 was a year of exceptional development for Keolis. Many tenders were won and turnover and EBITDA increased (+10% and +15% respectively). Turnover increased strongly (+10%) and is approaching the €6 billion mark at €5.93 Bn. This strong growth in turnover comes with an even larger increase in profitability (recurring EBITDA): +15%, from €342 M to €392 M. Strong increase in turnover Million € 5,934 Other activities 312 +10% International (+€535 M) 2,763 49% 5,399 International France + €325 M 2,859 (+13%) 51%(*) France + €160 M (+6%) 2017 Change Perimeter Organic 2018 * % of transport activity turnover Approximately 60% of the growth in activity comes from international markets, in particular due to performances achieved in the UK, continental Europe and Australia. The activity in France also strongly contributes to this growth, due to excellent performance in Urban. The acquisitions strategy also contributes to the growth in turnover, notably with the integration of Péglion and Keolis Santé in France, and Open Tours in Belgium. EFFIA had a historic year with numerous commercial successes. Even distribution of turnover in France and internationally 312 566 2 859 2 763 1 812 2008 Turnover 2018 (in million €) France International Other (EFFIA, Keolis Santé, Kisio) The Keolis Group has multiplied its turnover by 2.5 in ten years. Internationally, turnover has been multiplied by 4.9: 2008: Turnover €0.6 Bn 2018: Turnover €2.8 Bn In France, the activity has increased 60%: 2008: Turnover €1.8 Bn 2018: Turnover €2.9 Bn Increase in recurring EBITDA Million € +15% Recurring EBITDA is growing faster than turnover 6.6% Recurring EBITDA as a percentage of turnover 2017 Change Perimeter Organic 2018 Recurring EBITDA for 2018 was nearly €400 M (+15%), representing even greater growth than turnover (+10%). In France, this performance is the result of commercial successes and the ability to make contracts − whose performances have until now been insufficient − profitable through operational excellence Internationally, profitability is increasing in all major regions (UK, Australia, North America and Continental Europe), including for the Boston contract. The recurring EBITDA margin, as a percentage of turnover, is 6.6% compared to 6.3% in 2017. Recurring net income (Group share) RNIgs Tax increases €83 M €79 M 2017 2018 The recurring net income (Group share) was €79 M in 2018, slightly down compared to 2017 (€83 M). This variation is essentially due to French tax increases, notably CICE (tax credit for competitiveness and employment) and CVAE (contribution on the added value of companies). A strong financial structure INVESTMENTS AVAILABLE CASH FLOW 107 751 -€42 M 709 +€169 M 148 CashCash flow flow 246 266 horsexcl. Capex 28 acquisitionsacquisitions Net (41) netscapex (90) Acquisitions (62) 2017 2018 2017 2018 NET DEBT DEBT LEVER 1 011 -€29 M 982 -0.2x 2.4x 2.2x 0,1x Acquisitions of which +€41 M security 2,1x LevierLevel exclhors. purchases acquisitionsacquisitions 2017 2018 2017 2018 Keolis recorded an excellent performance in terms of free cash flow (€107 M). The level of debt has fallen below the billion euro mark (€982 M). The debt/EBITDA ratio has improved, decreasing 2.2x, well below the 3.5x threshold. This financial good health gives the Keolis Group the means to finance its growth strategy. Summary of 2018 TURNOVER RECURRING FREE CASH FLOW EBITDA & DEBT +10% +15% 2.2x (Net debt / EBITDA) 2018 was a year of exceptional development for Keolis, concluded by strong growth in turnover and recurring EBITDA. Our debt level remains largely within the limits of the Group’s commitments, providing the flexibility it needs to pursue its strategy: profitable growth, operational performance and transformation in order to consolidate its status as a global actor of shared mobility. International 2018 highlights In Boston, Keolis’s commitments are bearing fruit 2018 Increased passenger satisfaction Punctuality: 93% Passenger numbers: +22% since 2014 Keolis Commuter Services, Keolis’ subsidiary in Boston, succeeded in restoring the financial balance of the suburban train network, notably thanks to improved operational performance. To illustrate this turnaround: in 2018, the operational margin was €3 M. In Wales, Keolis wins the biggest contract in its history • 15 years • €6 Bn in cumulative revenue • 1,623 km of track • 128 trains • 247 stations and 3 depots • + 2,000 employees In May 2018, KeolisAmey, the Group’s UK-based subsidiary, won the entire national rail network of Transport for Wales. This win represents Keolis’ first rail contract in the UK as a majority partner. The contract, effective October 2018, includes the operation, maintenance and transformation of the network. In Doha, Keolis focuses on opening Qatar’s first metro in 2019 1,000 650,000 employees recruited and trained. passengers will be transported Eventually, this figure will reach 3,000 every day Deployment in stages until the 2022 Football World Cup In Qatar, at the end of 2017, Keolis won a contract worth €3 Bn in revenue as part of the Keolis, RATP Dev and Hamad Group consortium for the operation and maintenance of the Doha automated metro and the Lusail tram network. The launch of the Red metro line, connecting Lusail to the international airport, will take place by the end of H1 2019. In Melbourne, Keolis begins a new era for the tram network 500 Project launched to renovate 70 km of track tram networks 85% of the fleet modernised over 7 years (9 different types, some of them over 4 years 60 years old) 27 Titre de la présentation After being awarded seven more years for the operation and infrastructure management of the Melbourne tram network in 2017, Keolis started modernising the network in 2018. In 10 years, the passenger satisfaction rate has increased 10%. In 2018, the overall reliability of the network reached 99%. In Hyderabad, Keolis is gradually opening India’s second largest metro 99.7% 50 million 56 km of lines opened punctuality passengers transported in 17 months safely 29 Titre de la présentation Once the network is fully opened, the number of daily passengers is expected to reach 1 million. In Shanghai, Keolis inaugurates the city’s first tram and automated driverless metro 7 years of fruitful collaboration with Shanghai Shentong Metro Group 31 Titre de la présentation Shanghai Keolis, the JV formed by Shanghai Shentong Metro Group Co. Ltd. (51%) and the Keolis Group (49%), has been operating the first section of the Songjiang tram line, a district in south-west Shanghai, since December 2018. This is the first tram operated by the Keolis Group in China. In March 2018, Shanghai Keolis began operating the driverless metro line of Pujiang. The line covers 6.7 km and links six overhead stations, optimising service to the Pujiang district in the south of the city. An innovative mobility offer for an even more flexible, accessible service Real-time, on-demand transport Autonomous electric shuttles • In Orange County (USA) • In town, in Candiac (Canada) • In the suburbs of Sydney • In a university zone: Flinders University, • In Newcastle (Australia) Adelaide (Australia) • Tourist sites (Belgium) 2018 was a year of innovations in new mobility, with numerous trials in Canada, Australia and in the United States. Outlook 2019 Start of operation of the Greensboro bus network, North Carolina Fleet of 43 buses, 10 of which are electric Ambition: electrification of the entire fleet The year started well for Keolis in the United States with the contract to operate the Greensboro bus network, which started on 1 January. The first fully-electric bus line was opened on 21 February 2019. Keolis Transit America will soon operate the East Coast’s second-largest electric fleet. Outlook 2019 New contracts in the United States RTC Nevada, bus line, Fort Lauderdale in Florida, 37 Titre de la présentationnew contract contract renewal Keolis won two new contracts in the United States: ● Starting 1 July 2019, Keolis will operate a fleet of 64 buses serving the large region of Reno and Washoe county, in Nevada State. ● Keolis’ management contract for transport at Fort Lauderdale airport in Florida was renewed Outlook 2019 Tram network / automated metro launches 39 Titre de la présentation In 2019, Keolis will launch: ● Trams: Waterloo network in Canada Entire Aarhus network opened in Denmark Entire Songjiang network in China ● Automated metros: Final section opened in Hyderabad, India Doha metro in Qatar Automated metro of Pudong airport in Shanghai, China France Major wins in urban and in Île-de-France New contract wins Contract renewals Tours Orléans Nancy Chambéry Arras Montargis Bourg-en-Bresse Riom Saintes Thiers Vitré 2018 was characterized by multiple calls to tender and punctuated with commercial successes, both in terms of new contract wins and renewals, in an increasingly competitive context. New contract wins, effective 1 January 2019, for the urban networks of Nancy, Chambéry and Bourg-en-Bresse together represent over €90 M in annual revenue. The Hello Paris consortium, comprising Keolis and RATP Dev, was designated preferred bidder for the contract to operate CDG Express, the future direct link between Gare de l’Est station and Roissy-Charles de Gaulle airport. Leadership confirmed in the French market Revenue earned: €413 M in 2018 Revenue from renewals: €327 M 2018 was marked by contract renewals in urban (networks of Tours, Orléans, Arras, Montargis, Riom, Saintes, Thiers and Vitré).