annual results - keolis · 2018 was a year of exceptional development for keolis. many tenders were...

Record growth and continued transformation

Press kit – 18 April 2019

annual results

2018FIGURES

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

+15%+10%

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

International

+ €325 M(+13%)

France

+ €160 M(+6%)

2017 Change Perimeter Organic 2018

+10%

Other activities 312

International

2,763

49%

France

2,859

51%(*)

Million €

(+€535 M)

* % of transport activity

turnover

5,399

5,934

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

1 812

566 2 8592 763

312

2008 2018

France International Other (EFFIA, Keolis Santé, Kisio)

Turnover

(in million €)

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


In France, the activity has increased 60%:



Increase in recurring EBITDA

Recurring EBITDA is

growing faster than

turnover

+15%

2017 Change Perimeter Organic 2018

Million €

Recurring EBITDA as a

percentage of turnover

6.6%

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)

€83 €79

2017 2018

RNIgs

MM

Tax increases

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

DEBT LEVERNET DEBT

AVAILABLE CASH FLOW

246 266

2017 2018

Capexnets

-€42 M751 709

(90)(41)

28

148

2017 2018

Cash flowhorsacquisitions

Acquisitions

(62)

107

+€169 M

1 011 982

2017 2018

-€29 M

of which

+€41 M

security

purchases2,1x

0,1x

2017 2018

Acquisitions

Levier horsacquisitions

2.2x2.4x -0.2x

Net

capex

Cash flow

excl.

acquisitions

Level excl.

acquisitions

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

EBITDA

FREE CASH FLOW

& DEBT

+15%+10% 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

1,000employees recruited and trained.

Eventually, this figure will reach 3,000

Deployment in stages until the

2022 Football World Cup

650,000passengers will be transported

every day

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

Titre de la présentation27

500tram networks

(9 different types, some of them

60 years old)

Project launched to renovate

85% of the fleetover 4 years

70 km of track modernised over 7 years

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


56 km of lines opened

in 17 months

50 millionpassengers transported

safely

99.7%punctuality

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 yearsof fruitful collaboration with Shanghai

Shentong Metro Group

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.

Autonomous electric shuttlesReal-time, on-demand transport

An innovative mobility offer for an even more flexible, accessible

service

• In town, in Candiac (Canada)

• In a university zone: Flinders University,

Adelaide (Australia)

• Tourist sites (Belgium)

• In Orange County (USA)

• In the suburbs of Sydney

• In Newcastle (Australia)

2018 was a year of innovations in new mobility, with numerous trials in Canada,

Australia and in the United States.

Fleet of 43 buses, 10 of which are electric

Ambition:

electrification of the entire fleet

Outlook 2019

Start of operation of the Greensboro bus network, North Carolina

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,

new contractFort Lauderdale in Florida,

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

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

Bourg-en-Bresse

Nancy

Chambéry

Tours Orléans

Arras Montargis

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).

Revenue from renewals represented €327 M whereas revenue from urban and

interurban contract renewals represented an annual value of €413 M

Excellent trend in commercial urban income


+ 5.3%

Bordeaux + 9.3%

Lyon + 6.7%

Tours + 5.2%

Dijon + 4.4%

IDF (Optile) + 3.4%

The Keolis Group recorded a strong increase in sales income within its 15

largest urban networks – which account for over 95% of traffic income – with an

iso-perimeter progression of 5.3% compared to 2017.

The number of passengers on these networks increased by 3.2%.

These figures testify to the Keolis Group’s expertise in designing attractive

networks, sales actions to win and retain customers and anti-fraud measures.

Keolis Santé pursues its development


• 12 companies acquired and

integrated in 2018

• 4,200 professionals

and 2,600 vehicles in the Jussieu

Secours network

• Cumulative revenue: €210 M

At the end of 2017, Keolis Santé and Jussieu Secours joined forces to create

France’s leading medical transport network.

This strategy is in line with the Keolis Group’s ambition to participate actively in the

concentration of the sector, with a view to developing synergies and improving

efficiency for patients.

A historic year for our parking activity


240,000 spaces (x4 since Keolis took over

EFFIA in 2010)

25 contracts won,

including 17 new

Hit rate record:

70%

2 acquisitions:

EMPARK France

Mediaco stationnement

● Keolis’ parking subsidiary had a historic year in terms of commercial activity with 25 new

contract wins, a success rate of nearly 70%: €28 M of contracts won, of which €19 M are

new contracts.

● In 2018, EFFIA won practically all the major contracts in the tenders in which it participated,

and renewed key contracts.

● With the implementation of 11 initial contracts for decriminalised on-street parking,

EFFIA has recognised expertise in this key market segment, which is expected to develop

strongly following the municipal elections of 2020.

Several dedicated-lane public transport networks launched in 2019


Major new references in electric mobility

100% electric BRT

network

in Amiens

100% electric BRT

network in

Bayonne-Biarritz-Anglet

Hydrogen-powered

BRT network

in Pau

Steel-wheeled tram

network in Caen

2019 will be the year of electric mobility for Keolis. In the coming weeks, the Group

will launch several flagship transport networks on dedicated lanes:

• 100% electric BRT (Bus Rapid Transit) network in Amiens

• 100% electric BRT network in Bayonne-Biarritz-Anglet

• Hydrogen-powered BRT network in Pau, where is Keolis is providing technical assistance

to the SPL (local publicly-owned company).

• new steel-wheeled tram network in Caen

Stepping up deployment of dynamic on-demand transport

Titre de la présentation54An efficient real-time service suited to weak flows

In 2018, Keolis continued to deploy its real-time, on-demand transport services,

notably in the Paris region with Filéo (Europe’s largest on-demand transport

service, which notably serves Paris CDG airport) and in Orléans.

With its partner Via − the world leader in real-time shared mobility solutions − the

Keolis Group also launched several dynamic on-demand transport projects in

France, with KE’OP in the Bordeaux metropolitan area, and soon in Nancy.

Île-de-France finally open to competition


In 2019, the first wave of tenders will take place in Île-de-France in connection

with the opening up to competition of Optile.

These tenders represent a major development opportunity for the Keolis Group.

Optile, which should be opened up to competition on 1 January 2021, represents

transport revenues of approximately €1 M.

Île-de-France represents the main growth potential in France for Keolis, which

intends to position itself as an essential actor of regulated mobility in IDF.

Strengthening Keolis’s presence in the regions


Capacity to support the regions in addressing

new issues:

• energy transition

• synergies with urban networks

• services in poorly-served zones

First tenders launched for France’s

regional TER trains

An efficient offer in

interurban services

(regular routes and

school routes)

In the interurban sector, which represents nearly €800 M in revenue for Keolis, the

transfer of jurisdiction from the departments to the regions is now a

commercial fact of life.

In 2019, the Keolis Group intends to step up its presence in the regions to help

them implement their transport policy and provide its expertise in the issues that

concern them (energy transition, synergies with urban networks and services

in poorly-served zones).

Keolis’s international passenger experience barometer

61

92%of passengers are satisfied

96%of metro users are satisfied

94%of passengers would recommend Keolis

Satisfaction survey conducted by Mv2 Group:

- 20,000 passengers

- 4 modes of urban transport (metro, tram, bus, train)

- 13 cities worldwide

annual results - keolis · 2018 was a year of exceptional development for keolis. many tenders were...

Documents