2O14 FINANCIAL REPORT SNCF.COM O1 — ANNUAL MANAGEMENT REPORT PAGE 04 O2 — SNCF MOBILITÉS GROUP CONSOLIDATED FINANCIAL STATEMENTS PAGE 32 O3 — REPORT ON THE SNCF MOBILITÉS GROUP’S CORPORATE GOVERNANCE AND INTERNAL CONTROL PAGE 126 02 — SNCF MOBILITÉS FINANCIAL REPORT 2014 MANAGEMENT S TATEMENT FOR FINANCIAL REPORT LA PLAINE SAINT-DENIS, 12 FEBRUARY 2015 We attest that, to the best of our knowledge, the consolidated financial statements have been prepared in accordance with the applicable accounting principles and give a true and fair view of the assets and liabilities and the financial position of the Group as of 31 December 2014 and of the results of its operations for the year then ended, and that the accompanying management report fairly presents the changes in operations, results and financial position of the Group and a description of its main risks and uncertainties. GUILLAUME PEPY MATHIAS EMMERICH THE CHAIRMAN EXECUTIVE VICE-PRESIDENT, PERFORMANCE SNCF MOBILITÉS FINANCIAL REPORT 2014 — 03 O1 — ANNUAL MANAGEMENT REPORT IFRS – In € millions 04 — SNCF MOBILITÉS FINANCIAL REPORT 2014 SNCF MOBILITÉS GROUP IN 2014 GROUP RESULTS AND FINANCIAL POSITION CORPORATE GOVERNANCE 1. Major events of the year 06 1. General observations on group results 08 1. Board of Directors 30 2. Key figures 07 2. Activity and results by division 11 2. Management team 30 3. Subsequent events 07 3. Net investments and net debt 17 4. Consolidated statement of financial position and ratios 18 5. Financial relations with the French State, RFF (SNCF Réseau as at 1 January 2015) and local authorities 19 6. Employee matters 20 7. Challenges and outlook 21 CORPORATE SOCIAL RESPONSIBILITY 1. SNCF Mobilités and CSR – 4 challenges and 12 commitments 22 2. Customer challenge 22 3. Environment challenge 25 4. Employee challenge 26 5. Community challenge 27 6. Values and principles 28 SNCF MOBILITÉS FINANCIAL REPORT 2014 — 05 SNCF MOBILITÉS GROUP IN 2014 SNCF MOBILITÉS GROUP IN 2014 In this report, the terms “SNCF Mobilités Group,” “Group” effective date of the law, with the creation of a group organised and “SNCF Mobilités” designate the parent company EPIC according to three economically integrated EPICs: Société Nationale des Chemins de fer Français, known as SNCF Mobilités as of 1 January 2015, and its consolidated subsidiaries. — The current EPIC Société Nationale des Chemins de The State-owned public institution “(EPIC) SNCF Mobilités,” fer Français (SNCF until 30 November 2014), will become “EPIC,” “EPIC Mobilités,” “Mobilités” and “EPIC SNCF SNCF Mobilités and will continue to carry out all the transport Mobilités” refer solely to the parent company. activities for the SNCF Proximités, SNCF Voyages and SNCF Logistics (formerly SNCF Geodis) divisions, and manage 1. MAJOR EVENTS OF THE YEAR the stations of the Gares & Connexions division. 1.1. IMPAIRMENT LOSS REVERSALS — The current Réseau Ferré de France (RFF) will become Impairment loss reversals were recognised for €163 million SNCF Réseau and unify all the infrastructure management for rail freight production resources within the SNCF Logistics functions by combining SNCF Infra and Rail network operation division, formerly known as SNCF Geodis (all property, plant and management currently part of the SNCF Infra division. and equipment and intangible assets excluding land and It will guarantee fair access to the network for all rail companies. buildings). These reversals follow the change in business models that resulted in the reallocation of production resources — A “parent” EPIC, created on 1 December 2014 as part of the between the Rail freight and Rail freight fleet management cash reform and called SNCF, will be responsible for strategic control generating units and the adaptation of impairment testing and steering, economic coherence, and the public rail group’s methods in accordance with IAS 36. They were recognised industrial integration and social unity. under “Impairment losses” in the income statement. Accordingly, in accordance with IFRS 5 “Non-current assets held Detailed information is presented in Note 8 to the consolidated for sale and discontinued operations,” the profit or loss financial statements. components of the SNCF Infra division, which must be transferred under the law of 4 August 2014, were reclassified 1.2. RAIL REFORM under “Net profit/(loss) from transferred operations” in the 2014 The rail reform law definitively adopted on 22 July 2014 and 2013 income statements. The assets and liabilities of this and enacted by the President of the French Republic division that are to be transferred were reclassified under on 4 August 2014, under number 2014-872, is based on “Assets classified as held for sale” and “Liabilities associated five objectives: with assets classified as held for sale” in the statement of financial position as of 31 December 2014. — Confirmation of a public service that is strengthened and better managed; The law also stipulates that non-current assets and entities will be transferred to the parent EPIC. Non-current assets and — Creation of an integrated public industrial group; the assets of entities to be transferred as identified at the year-end were reclassified under “Assets classified as held for — Introduction of a national agreement to ensure the financial sale” in the statement of financial position as of 31 December future of the public service; 2014. The liabilities of these entities were reclassified under “Liabilities associated with assets classified as held for sale.” — Creation of a labour framework for all rail sector players by As the application decrees are still being drafted, the scope maintaining the status of railway employees and unifying their of the entities and assets to be ultimately transferred could group; be expanded. — Greater regulatory authority to guarantee the impartiality of Detailed information is presented in Note 27 to the network accessibility. consolidated financial statements. The current organisation of the French rail system and 1.3. LABOUR MOVEMENT specifically the State-owned industrial and commercial A strike involving a portion of SNCF employees took place institution (or EPIC) Société Nationale des Chemins de fer between 11 and 23 June 2014 in opposition to the rail reform Français was profoundly changed as of 1 January 2015, the bill and to debate the future of the rail sector. Despite a 06 — SNCF MOBILITÉS FINANCIAL REPORT 2014 SNCF MOBILITÉS GROUP IN 2014 significant mobilisation of SNCF resources to limit customer 3. SUBSEQUENT EVENTS impacts, the strike had repercussions in almost all Group Other than the coming into force of the rail reform law divisions, particularly in terms of revenue losses and additional on 1 January 2015 (see Note 3 to the consolidated financial costs for customer compensation. statements), the main subsequent events are as follows: 1.4. ASSIGNMENT OF A RECEIVABLE 3.1. A NEW ORGANISATION BY BUSINESS LINE The receivable generated in the period by the Competitiveness The new SNCF set up with the coming into force of the rail and Employment Tax Credit set up by the French government reform law (see Note 3) is organised into five business lines, (see Note 1.1.2.3) and recorded for French tax consolidation of which three within SNCF Mobilités: groups was assigned under the Dailly Law. As this involves an operating receivable, its assignment led to a posting of — SNCF Voyageurs which handles operations for all passenger a net receipt of €306 million in “Net cash from operating rail transport activities based on the Transilien, Voyages SNCF, activities” on the cash flow statement. Intercités and TER activities, and Gares et Connexions, which covers station management and development. Details are provided in Note 28.3 to the consolidated financial statements. — Keolis, which handles passenger mass transit operations. 2. KEY FIGURES — SNCF Logistics, which specialises in freight transport and logistics. In € millions 2014 2013 (1) Revenue 27,243 27,030 In 2015, the organisational change will bring about a new presentation for SNCF Mobilités Group’s segment reporting Gross profit 2,383 2,486 in accordance with IFRS 8. Current operating profit 678 721 Operating profit after share of net profit 3.2. DECISION OF THE FRENCH RAIL REGULATORY of companies consolidated under the AUTHORITY (ARAF) equity method 1,050 -528 Following the referral procedure of the Syndicat des Finance costs -412 -284 Transports d’Ile de France (STIF) with respect to a dispute with the Gares & Connexions division of SNCF Mobilités, the French Net profit attributable to equity holders of the parent company 605 -180 Rail Regulatory Authority (ARAF) handed down its decision on 3 February 2015. The claim relating to the allocation of the Cash from operations 2,058 2,181 cash flow from operations generated by the Ile-de-France Net investments 2,168 2,240 stations was dismissed. Among the other components of the Current operating profit after share of net decision, only the following three could impact the consolidated profit of companies consolidated under the financial statements: equity method 685 726 — The ARAF’s order that SNCF Mobilités limit the capital ROCE (2) 3.9% 4.1% investment rate to a range of 5.5% to 6.9% before tax, Employees 245,763 244,570 compared to the 9.2% currently applied, with respect to regulated services (passenger information facilities for example). (1) The 2013 income statement was restated for the reclassification of the SNCF Infra division’s net profit under the heading “Net profit/(loss) from transferred operations” pursuant to IFRS 5 (see Notes 3 and 27 — The request to classify the underground stations of Paris to the consolidated financial statements). Austerlitz, Paris Gare du Nord and Paris Gare de Lyon as (2) ROCE or return on capital employed = the ratio between current operating Category B stations (regional stations) as of the 2015 service profit after share of net profit of companies consolidated under the equity schedule. This classification will determine fee levels.