Presentation SNCF Group 2020 HY Results - 07.30.2020 · 5$,/ 5(&29(5< 3/$1 wdonv duh qrz xqghu zd\...
Transcript of Presentation SNCF Group 2020 HY Results - 07.30.2020 · 5$,/ 5(&29(5< 3/$1 wdonv duh qrz xqghu zd\...
SNCF GROUP – 2020 HALF-YEAR RESULTS— 30 JULY 20201
2020 HALF-YEAR RESULTSSNCF GROUP
30 JULY 2020
SNCF GROUP – 2020 HALF-YEAR RESULTS— 30 JULY 20202
LAURENT TRÉVISANI
DEPUTY CEO FINANCIAL STRATEGY, SNCF GROUP
SNCF STEPS UP IN A HALF YEAR SLAMMED BY STRIKES IN JANUARY, FOLLOWED BY THE COVID-19 PANDEMIC
SNCF GROUP – 2020 HALF-YEAR RESULTS— 30 JULY 20203
+ 1% of sales vs 16.2% in H2 2019
+ Covid-19 crisis: -€3.2bn
+ January strike: -€240m
GROSS PROFIT-EBITDA €136m
KEY FIGURES FOR H1 2020
NET PROFIT - €2.4bn
+ Stepped-up crisis mitigation plan deployed to cut costs, scale back projects and investments, and optimize liquidity. Full-year target €1.8bn.
CASH FLOWS +1.1bn
+ Down -21% from H1 2019
+ Covid-19 crisis: -€3.9bn
+ January strike: -€275m
REVENUE €14.1bn
The first half of the year was marked by labour disputes in January and, from 17 March on, the Covid-19 pandemic, both taking a heavy toll on SNCF Group and all rail activities.
+ Linked directly to impact of fall in EBITDA on financing capacity- €2.8bnFREE CASH FLOW
+ French State assumes €25bn of SNCF debt at 1 January 2020
+ Negative free cash flow: -€2.8bnNET DEBT - €38.3bn
+ Compared with €20m at 30 June 2019
SNCF GROUP – 2020 HALF-YEAR RESULTS— 30 JULY 20204
DURING LOCKDOWN, SNCF BUSINESSES COMPLIED WITH GOVERNMENT-IMPOSED RESTRICTIONS, DOING THEIR PART TO DELIVER ESSENTIAL SERVICES — AND MORE
SNCF Réseau pressed ahead with high-priority maintenance and urgent engineering works.
Geodis quickly scheduled charters to transport urgent shipments as normal air freight capacity was scaled back.
Geodis also played a decisive role in supplying masks to all of France, and set up an air freight service between China and France.
High-speed hospital trains transported critically ill patients to regions with available hospital beds, while other trains carried essential healthcare workers to communities hit hardest by the virus.
Rail freight services carried food, fuel, chlorine and other essentials to keep strategic production sites operating smoothly.
Transilien, TER and Keolis-operated networks cut service to the strict minimum, but continued to operate for workers commuting to essential jobs.
SNCF GROUP – 2020 HALF-YEAR RESULTS— 30 JULY 20205
PASSENGER NUMBERS PICKED UP AFTER THE JANUARY STRIKES, BUT RECOVERY CAME TO AN ABRUPT END AS COVID-19 HIT AND FRANCE ENTERED LOCKDOWN.
TER regional rail passengers (per month)(MILLIONS OF PASSENGER-KILOMETRES)
TGV high-speed passengers (per month)MILLIONS OF PASSENGERS
0
200
400
600
800
1 000
1 200
1 400
1 600
Janv Fev Mars Avril Mai Juin0
2
4
6
8
10
12
Janv Fev Mars Avril Mai Juin
-59%-88%-95%-53%-45%-87%-94%-33%-23% -16%
2019 2020 2019 2020
+6%+4%
-€50%vs H1 2019
-55%vs H1 2019
SNCF GROUP – 2020 HALF-YEAR RESULTS— 30 JULY 20206
RAIL SUFFERED MORE THAN OTHER FREIGHT BUSINESSES
RAIL FREIGHT: HIT FIRST BY JANUARY STRIKES, THEN BY COVID-19
0
200
400
600
800
1 000
1 200
1 400
1 600
1 800
Janv Fev Mars
-18%-30% -7%
SNCF Fret monthly trafficMILLIONS OF TKM
ASIA:IMPACT FROM
FEBRUARY
EUROPEIMPACT FROM
MARCH
UNITED STATES
E-COMMERCEDROVE
GROWTH
FROM MAY ON, GLOBAL FREIGHT VOLUMES RETURNED QUICKLY TO PRE-CRISIS LEVELS, WITH AIR FREIGHT CHARTERS PROVIDING A PARTICULAR BOOST.
BUSINESS VOLUMES ROSE MORE GRADUALLY IN RAIL FREIGHT FOR THE AUTOMOTIVE INDUSTRY AND MANUFACTURING.
BY JUNE, BUSINESS WAS HOVERING BETWEEN 90% AND OVER 100% OF NORMAL LEVELS WORLDWIDE, DEPENDING ON THE SECTOR AND THE COUNTRY.
GEODIS SUFFERED LESS FROM THE PANDEMIC, AND BOUNCED BACK TO PRE-COVID VOLUMES MORE QUICKLY
SNCF GROUP – 2020 HALF-YEAR RESULTS— 30 JULY 20207
-€700 million
REVENUE WAS MORE RESILIENT IN FREIGHT THAN IN PASSENGER TRAVELGEODIS UP +0.3%, TGV DOWN -58%
-21%
REVENUE H1 2019
14.1
REVENUE IN €BN
-37%
REVENUE H1 2020
SNCF Voyageurs-58% TGV -17% TER
-14% Transilien
-12%
Keolis SNCF Réseau
-5% SNCF Gares & Connexions
+0.3%
17.9
Geodis
-20%
TFMM rail & multimodal freight
transport
-20%
-€120 million-€325 million-€350 million-€3bn
Incl €2.4bn for TGV
Impact of Covid-19
X%
XX
Change in revenue
SNCF GROUP – 2020 HALF-YEAR RESULTS— 30 JULY 20208
CRISIS MITIGATION PLAN HELPED KEEP GROSS PROFIT-EBITDA JUST ABOVE BREAK-EVEN AFTER HEAVY TOLL OF JANUARY STRIKES AND COVID-19
-€2.8bn
136
EBITDAIN €M
€3,200m
Gross profit-EBITDAH1 2020
Health crisis
-€240m
January strikes
+€350m
2,888
Crisis mitigation plan
Gross profit-EBITDAH1 2019
+€338m
Other scope and inter-segment eliminations
SNCF GROUP – 2020 HALF-YEAR RESULTS— 30 JULY 20209
AT €136M, GROSS PROFIT-EBITDA REFLECTS HEAVY TOLL OF COVID-19 CRISIS (-€3.2BN) AND JANUARY STRIKES (-€240M)
136
EBITDAIN €M
-2,000
Gross profit-EBITDAH1 2020
SNCF Voyageursincl -€1.5bn for TGV
-120
Keolis SNCF Réseau
-135
2,888
Geodis
-720-70
Gross profit -EBITDAH1 2019
TFMM rail & multimodal freight
transport
COVID IMPACT ON EBITDA BY BUSINESS
SNCF GROUP – 2020 HALF-YEAR RESULTS— 30 JULY 202010
+€1.8bn
SNCF RESPONDED WITH A SWEEPING PLAN TO MINIMIZE THE IMPACT ON GROUP FINANCES OF BOTH THE JANUARY STRIKES AND COVID-19
NO IMPACT ON:
• Investments essential to network and rail operations
• Rail-sector jobs
Investment totalled €3.7bn in H1 2020 (65% financed by SNCF) and focused on priority rail works
Recruitment of rail-sector staff planned for 2020 in France is unchanged.
Some project costs trimmed or postponed
EXPENSES
-€350m
CASH
+€600m
+€1.1bn AT 30 JUNE 2020
Activation of cash flow levers (including +€300 m from securitizing the 2017 CICE tax credit receivable
Review of investments INVESTMENTS
-€130m
2020 TARGET
FREE CASH FLOW
SNCF GROUP – 2020 HALF-YEAR RESULTS— 30 JULY 202011
+20
-2,786 -2,389
Lower interest expense
IMPACT OF CHANGE IN EBITDA
Net profit at 30 June 2019
Net profit at 30 June 2020
+330
IMPACT OF TRANSFER TO FRENCH STATE OF PART OF
SNCF DEBT
NET PROFIT WAS A NEGATIVE -€2.4BN
Other scope and inter-segment eliminations
+47
NET PROFIT IN €M
SNCF GROUP – 2020 HALF-YEAR RESULTS— 30 JULY 202012
DESPITE COVID-19, URGENT INVESTMENTS ESSENTIAL TO RAIL SYSTEM AND SERVICE QUALITY CONTINUED
€3.7bn (-€600M VS H1 2019) WITH 65% FINANCED BY SNCF
+ €2.1bn to regenerate and upgrade existing rail network
+ €1.2bn to acquire rolling stock including 43 new passenger trains: 9 Francilien, 15 Régiolis, 1 Régio2N et 5 TGV trainsets
+ €0.4bn to upgrade and renovate stations, Technicentres, passenger information and more
95%SPENT ON
RAILIN FRANCE
SNCF GROUP – 2020 HALF-YEAR RESULTS— 30 JULY 202013
FREE CASH FLOW AT A NEGATIVE -€2.8 BNWAS DIRECTLY HIT BY LOWER SELF-FINANCING CAPACITY LINKED TO THE STEEP FALL IN GROSS PROFIT-EBITDA
IN €M
-€1,186m*-1,666
-2,457
+653
+667
-2,809
Free cash flow30/06/2020
Free cash flow30/06/2019
CASH TRANSACTIONS AND DISPOSALS
Self-financing cap
INVESTMENTS DELAYED
*At constant scope of consolidation and exchange rates
Strikes and Covid-19: -€2,786m from EBITDALower interest expense: +€288mLower taxes: +€63m
SNCF GROUP – 2020 HALF-YEAR RESULTS— 30 JULY 202014
AFTER TRANSFER OF PART OF SNCF’S DEBT TO THE FRENCH STATE ON 1 JANUARY 2020, THE FALL IN FREE CASH FLOW TRIGGERED BY THE CRISIS LED TO A RISE IN DEBT
Net debt01/01/2020
3) Partial transfer of
SNCF Réseaudebt
Impact of negative free cash flow
Net debt30/06/2020
35.3
-25.0+2.8
38.3
IN €BN
Net debt31/12/2019
60.3
Other scope and inter-segment eliminations
+0.2
SNCF GROUP – 2020 HALF-YEAR RESULTS— 30 JULY 202015
BUSINESS DEVELOPMENT CONTINUED, DESPITE THE PANDEMIC
Spain
10-year framework agreement signed, marking SNCF’s official entry into the country’s high-speed rail market
Keolis contracts extended
• United Kingdom: Southeastern• Denmark: Odense bus network
• United States: Boston suburban rail network; rail service in Virginia and in Washington, DC
Denmark
Keolis wins new electric bus contract for Greater Copenhagen
SNCF GROUP – 2020 HALF-YEAR RESULTS— 30 JULY 202016
H2 FOCUS: RECOVERY IN BUSINESSWITH VIGILANCE TO KEEP PASSENGERS SAFE DURING COVID-19
RECOVERY PLAN
SummerMore special offers, including the sale of heavily discounted tickets for both TGV and TER services, to increase train occupancy.
September• recovery plan focused on adapting price bands and digital tools to new
customer behaviours, in particular working from home.• new multimodal offers for occasional travellers• ambitious sales strategy targeting business travellers
COMPETITION IN HIGH-SPEED RAIL
Since July, OUIGO has been running from Paris to Lyon city centre, ahead of the route opening up to competition.
RAIL RECOVERY PLAN: talks are now under way with the French State to define the financial support needed to strengthen the resilience of the national rail network and deliver rail services as planned with healthy finances.
SOUND LIQUIDITY: SNCF Group currently enjoys sound liquidity that enables it to meet its obligations. Investor confidence has not wavered, as shown by the recent successful rounds of bond issues. In mid-July, the Group had liquid resources of €6.8bn, plus an available credit facility of €3.5bn.
SNCF GROUP – 2020 HALF-YEAR RESULTS— 30 JULY 202017
THANK YOU!