From an economic and financial perspective, this corporate plan has the following ...... corporate offering, extension o
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SNCF — Financial Report 2008
Management Report
Financial Report 2008
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Page II
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Management Report page 2
Consolidated Financial Statements Contents
page 34
SNCF — Financial Report 2008
Company Financial Statements page 148
Page 1
Management Report (IFRS)
In € millions
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SNCF Group in 2008 SNCF Group’s ambition Key figures Significant events of 2008 Post-balance sheet events
page page page page page
4 4 4 5 6
Group results and financial position 1. General observations on Group results 2. Activity and results by core business 3. Group financial position 4. Consolidated balance sheet and ratios 5. Financial relations with the French State, Réseau Ferré de France and local authorities 6. Social segment 7. Group exposure to market risk 8. Outlook for 2009
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7 7 11 24 26
page page page page
27 29 30 30
1. 2.
Corporate Governance Board of Directors Management team
page page page
32 32 32
Company financial statements
page
33 SNCF — Financial Report 2008
1. 2. 3. 4.
Management Report
Contents
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SNCF Group in 2008 1 SNCF Group’s ambition Fiscal year 2008 was marked by the roll-out of an ambitious growth and development strategy. Known as Destination 2012, the goal is to transform SNCF into a truly competitive and global company based on ecomobility services. Objectives have been set for each of the four divisions: — Infrastructure and Engineering: Add to the French rail system and become a worldwide reference in terms of technical expertise; — Local Transport: Play a leading role in urban and regional local transport in France and in Europe by 2012; — Passenger France and Europe: Further the global leadership position in High Speed operations, with a third of traffic outside of France; — Transport and Logistics: Develop into one of the sector’s top
five global players by 2012, with greater competitiveness in the Equipment, Traction, and Safety activities serving the divisions. From an economic and financial perspective, this corporate plan has the following objectives: — reach a revenue level of approximately €36 billion by 2012 (a 50% increase compared to 2007) and a current operating profit of approximately €2 billion, — by building a very solid financial structure (debt) that is at least equivalent to that of the top competitors, — by developing the Group and investing significantly to prepare for the future, — by limiting costs (increasing the service life of rolling stock, establishing new breakeven points for employees, cutting overheads).
2 Key figures In a delicate economic context (inception of a global economic downturn in a competitive environment that is brisk), the Group has posted a 12% rise in gross profit, driven by revenue growth of 7%, a limited increase in costs and a one-off impact from an electricity price adjustment. This had a positive effect on gross (In € millions) Revenue Gross profit Current operating profit Finance costs Net profit attributable to equity holders of the parent Cash flow from operations Net debt
profit for €212 million and on current operating profit for €120 million. Excluding this impact, gross profit rose by €75 million (3%), while current operating profit declined by €138 million (14%) and net profit fell by €662 million (59%). 2008
2007
25,188
23,560
2,591
2,304
980
999
- 504
- 230
575
1,117
2,043
1,856
- 5,965
- 4,480
Gross investments
3,658
2,990
ROCE*
6.3 %
6.6 %
201,339
201,545
Employees
*ROCE or Return On Cash Employed = the ratio between current operating profit and average capital employed. The capital entering into this calculation is the algebraic sum of equity (including minority interests), provisions and net indebtedness. The average with the prior year’s equity gives the average equity. Equity for 2007 was restated for non-recurring pension and provident fund impacts.
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3-1 Major external growth transactions
a) SNCF has placed itself among the top five world players in freight transport Takeover bid for Geodis As part of the takeover bid for Geodis that was closed at the end of July 2008 followed by a squeeze-out on 8 August 2008, SNCF Group acquired 4,535,912 Geodis shares at a price of €132.15 per share, ex dividend. SNCF thus holds 100% of the subsidiary. Signature of an agreement with IBM On 2 December 2008, Geodis announced the acquisition of IBM Global Logistics, world platform for the management of IBM logistics activities. This acquisition was materialised by the purchase of 58 businesses in various countries, making Geodis the top global player in 4PL businesses of this size. Other Transport and Logistics acquisitions Geodis carried out several acquisitions in the first half. On 3 January 2008, it acquired 100% of the Rohde and Liesenfeld (R&L) group, which had been its main freight forwarding partner since 2002. On 18 April 2008, it acquired the British company, Oughtred & Harrison (Shipping) LTD, a maritime and air transport agent. On 20 May 2008, BM Luxembourg acquired France Toupie Location. At the end of May 2008, SNCF took control of the German group ITL, via its subsidiary Transports Logistique Partenaires, by acquiring 75% of the parent company’s voting rights. The ITL group handles freight rail traffic in Germany, the Czech Republic, Benelux and, in the second half of 2008, Poland.
NTV, a new high-speed train operator in Italy, has chosen SNCF as its industrial partner On 9 October 2008, Nuovo Trasporto Viaggiatori (NTV), the leading Italian private operator for high-speed passenger rail links, designated SNCF as its exclusive industrial partner in Italy and Europe. SNCF acquired a 20% interest in NTV under a partnership agreement. Creation of a joint venture, Connexion TGV, in partnership with Bolloré (high-speed internet) In September 2008, Bolloré and SNCF announced the extension of onboard Wi-Fi service for all Eastern high-speed trains and the creation of a joint subsidiary (SNCF 51% and Bolloré SA 49%) that will design, develop and operate the service (internet access and multimedia portal). Its inauguration is planned for October 2009.
3-2 Significant programmes and operations The following programmes and operations were launched in 2008: — Launch of the “D maintenant !” programme and commitment to the Impaqt service quality programme in Ile de France; — Launch of the 2008-2013 Midi-Pyrénées Rail Plan on 5 September, with the goal of renovating 500 km of railway track and gearing the network for the increase in traffic; — Launch of an exceptional national operation in September covering the diagnostic and management of the catenary and pantograph system.
(1) Fourth Party Logistic (4PL) service providers meet customer logistics requests by supplying storage, transport and distribution facilities, while combining supply chain information systems.
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Management Report
Fiscal year 2008 marked an important step in terms of Group development.
b) SNCF is forging partnerships based on high speed
SNCF — Financial Report 2008
3 Significant events of 2008
SNCF Group in 2008
3-3 Highlights on a human scale
4 Post-balance sheet events
Notable developments for parent company salaries included an overall 1.64% increase (with an average agent cost that rose by 4.09%), a twofold increase in management performance bonuses (€18 million impact on 2008 results vs. 2007), and pension support measures (a €77 million impact for 2008).
4-1 Withdrawal of pledges on Geodis Freight Forwarding and Geodis Freight Management securities
Under a joint declaration signed by six trade unions, SNCF would seek to enter within the scope of the employee profitsharing law.
To finance the acquisition of TNT Freight Management (Geodis Wilson) and the change in the Group’s working capital requirement, Geodis secured a syndicated loan in January 2007 that was underwritten by BNP Paribas. To partially finance the January 2008 acquisition of Rhode & Liesenfeld, a loan was secured with Caisse Régionale de Crédit Agricole Mutuel de Paris et d’Ile de France. At the initiative of Geodis, all of these loans were repaid in advance in January 2009, and the Geodis Freight Forwarding and Geodis Freight Management security pledges were thus withdrawn.
3-4 Other significant events
4-2 Parcel delivery in Spain
Other significant events also marked fiscal year 2008:
Geodis Iberia parcel delivery has posted recurring losses since 2005. The Group thus decided to terminate this activity and, in December 2008, negotiated its sale to the Azkar group, Spain’s leading parcel delivery company. All revenue will be transferred between mid January and March 2009. In return, Azkar pledges to retain between 190 and 240 employees of the 486 working for Geodis Iberia. A redundancy plan was announced on 7 January 2009, subsequent to the balance sheet date. No provision was therefore recognised in the 2008 financial statements.
Based on the 2007 results, parent company agents each received a €200 dividend for the first time in 2008. An employee dividend of €207 per agent will be paid in 2009, based on the 2008 results. The total impact of these dividends amounted to €81 million in the 2008 financial statements.
— On 27 June 2008, a €131 million dividend was paid for the first time to the French State, based on the 2007 results; — Labour unrest had a negative impact of €44 million on parent company traffic revenue (national strikes), and resulted in a €9 million revenue loss at SeaFrance (officers’ strike in March); — A number of incidents affected production quality and triggered major delays. The Eurotunnel fire of 11 September totally shut down traffic until 13 September and had a substantial impact in terms of capacity, sales and service reliability over the last four months of 2008. The TGV network was impacted by several major incidents (catenary failures, acts of malice), whose effects were multiplied tenfold by the growing traffic density, particularly in peak zones and periods.
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4-3 Seafrance On 17 February 2009, the maritime subsidiary SeaFrance announced its intention to eliminate 650 jobs, or 40% of its workforce, as part of a recovery plan to deal with the severe economic and financial crisis. The company is planning to resize its fleet in order to adapt to its market and cut its operating costs. The project is vital for a return to the breakeven point as of 2010. As the redundancy plan was announced subsequent to the balance sheet date, the financial consequences will be taken into account in 2009 once the terms and conditions are approved and quantified.
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Group results and financial position 1 General observations on Group results 2007 pro forma
2007 comparative(1)
Revenue
25,188
23,560
23,598
1,628
6.9 %
Infrastructure fees
- 3,038
- 2,760
- 2,760
- 277
10.0 %
Purchases and external expenses
- 8,805
- 8,139
- 8,178
- 666
8.2 %
- 867
- 823
- 824
- 43
5.3 %
Employee benefits expense
- 9,841
- 9,494
- 8,909
- 347
3.7 %
Other income and expenses
- 46
- 39
- 39
- 7
18.4 % 12.4 %
Taxes and duties other than income tax
Gross profit Depreciation and amortisation, net of grants Charges to provisions Current operating profit Impairment losses
2008 vs. 2007 pro forma
2,591
2,304
2,887
287
- 1,257
- 1,175
- 1,176
- 81
6.9 %
- 354
- 130
- 131
- 224
171.6 %
980
999
1,580
- 18
- 1.8 % 1,692.7 %
- 368
- 21
- 21
- 347
Net proceeds from asset disposals
244
112
112
132
117.7 %
Operating profit
856
1,090
1,672
- 234
- 21.5 %
Finance cost of employee benefits
- 50
- 64
- 714
13
- 21.0 %
Net borrowing costs
- 454
- 167
- 173
- 287
172.6 %
Finance costs
- 504
- 230
- 887
- 274
119.1 %
Net profit before tax
352
860
785
- 508
- 59.1 %
Income tax expenses
250
300
300
- 50
- 16.8 %
32
37
37
- 5
- 14.1 %
633
1,196
1,122
- 564
- 47.1 % 216.0 %
Share of profit of associates Net profit from ordinary activities Net profit from discontinued operations
- 40
- 13
- 13
- 27
Net profit attributable to minority interests
- 18
- 67
- 67
49
- 73.2 %
Net profit attributable to equity holders of the parent
575
1,117
1,042
- 542
- 48.5 %
Net profit from recurring operations (2)
611
724
649
- 113
- 15.6 %
10.3 %
9.8 %
12.2 %
Gross profit / revenue Net profit from recurring operations / revenue
2.4 %
3.1 %
2.8 %
ROCE = Current operating profit / capital employed (3)
6.3 %
6.6 %
6.9 %
(1) 2007 comparative income statement presented in the notes to the 2008 consolidated financial statements (see 1.1 below). (2) 2008 net profit from ordinary activities (€633 million) less the impact of impairment losses (€368 million), net proceeds from asset disposals (-€244 million), non-recurring finance costs (€141 million), capitalised deferred taxes (-€287 million), for €611 million in 2008; 2007 pro forma net profit from ordinary activities (€1,196 million) adjusted for the impact of impairment losses (€21 million), net proceeds from asset disposals (-€112 million), capitalised deferred taxes (-€353 million), non-recurring finance costs (-€29 million), for €724 million. (3) See definition of ROCE in Key figures.
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Management Report
2008
SNCF — Financial Report 2008
(In € millions)
Group results and financial position
1-1 Comparability of financial statements
a) 2007 comparative The 2007 comparative income statement takes into account various modifications listed in 4.1 below and described in Note 1.4 to the consolidated financial statements.
b) 2007 pro forma The 2007 pro forma income statement is based on the 2007 comparative income statement, to which the following main restatements were added for comparison with the 2008 amounts: — cancellation of the pension commitments impact corresponding to the employee-related benefits service account that was deconsolidated as at 30 June 2007 (in the 31 December 2007 published financial statements, positive impact of €553 (In € millions) Rohde & Liesenfeld (acquired 03/01/08) Wilson (acquired 05/02/07)
million on employee benefits expense and negative impact of €650 million on finance costs); — application of 2008 parent company rules; — classification of IFRS fair value of swaps in “non-recurring” items. All observations on the changes between 2007 and 2008, as presented in this document, are based on the 2007 pro forma income statement.
c) Comparison between the 2007 pro forma and 2008 results The comparison of 2008 annual results with the 2007 pro forma results is affected by the following changes in Group structure: Impacts on: revenue
Impacts on: gross profit
236
4
79
1
ITL (acquired end of May 2008)
35
1
Oughtred & Harrison (acquired 18/04/08)
34
1
Other
- 9
1
375
9
Impact of changes in scope
1-2 2008 results
a) Revenue
The organic growth of the other divisions breaks down as follows:
Group revenue amounted to €25,188 million in 2008, for an increase of €1,628 million compared to 2007. The 7% increase is attributable for €375 million to the external growth of the Transport and Logistics division (primarily the 2008 acquisitions of Rohde & Liesenfeld, ITL, Oughtred & Harrison and the consolidation of Wilson over 12 months).
— Infrastructure and Engineering: €282 million, 6%
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— Local Transport: €427 million, 7% — Passenger France Europe: €553 million, 8%.
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b) Gross profit Standing at €2,591 million in 2008, gross profit rose by €287 million, or 12%. As a percentage of revenue, the gross profit rate rose from 9.8% to 10.3% in a troubled economic context. 2007 pro forma
2008 vs. 2007 pro forma
Revenue (net of infrastructure fees repaid by OA)
24,648
23,066
1,582
7 %
Employee benefits expense
- 9,841
- 9,494
- 347
4 %
Purchases and external charges (excluding infrastructure fees and energy)
- 7,962
- 7,241
- 721
10 %
Infrastructure fees (net of OA repayments)
- 2,498
- 2,266
- 232
10 %
Fuel and electricity
- 889
- 937
48
- 5 %
Taxes and duties other than income tax
- 867
- 823
- 43
5 %
Gross profit
2,591
2,304
287
12 %
10.3 %
9.8 %
Gross profit / gross revenue
The increase in the employee benefits expense, which was limited to 4%, is primarily explained by a 4.09% increase in the average agent cost for the parent company (€311 million), the impact of 2007 and 2008 employee dividends (€81 million), a Group structure impact (€48 million), and a GIR (performance bonus) increase (-€18 million), which offset the 1% decline in the number of group employees (€98 million). The increased weight of Purchases and external charges (excluding infrastructure fees and energy) for 10% was driven by Group structure impacts (€302 million). On a constant Group structure basis, growth stood at 6%, mainly attributable to the following items: — increase in SNCF Infra and Equipment production purchases, — growth in Geodis freight forwarding activity (for which 80% of the revenue stems from sub-contracting), — increase in employer contributions (leases and rental costs), — increase in IT and telecom costs, — higher maintenance-repair costs due to changes in Passenger France Europe cleanliness criteria. Infrastructure fees (net of Organising Authority reimbursements) rose by 10%. There was a net improvement in fuel and electricity costs for 5%, as a result of several impacts: one-off impact of price
adjustments, which was positive for €212 million, offset by higher fuel costs for €125 million (particularly in terms of the price surge over the first half). The increase in taxes and duties other than income tax is due to the increase in the business license tax and other duties (EPSF(1) tax, etc.).
c) Current operating profit Current operating profit stood at €980 million, a decline of €18 million or 2% compared to the 2007 pro forma. The rate of conversion of revenue to current operating profit fell from 4.2% in 2007 to 3.9% in 2008, a decrease of 0.3 basis points. The increase in net depreciation and amortisation charges is related to the substantial investments of prior years. The increase in the net change in provisions for 2008 mainly comprises: — the change in environmental provisions: provision for site decontamination (compliance): -€66 million mainly for SNCF Infra (-€25 million) and Traction (-€18 million); provision for the risk to humans from asbestos (-€10 million); — the recognition of a provision for losses under the Infra management agreement (-€60 million).
(1) Etablissement Public pour la Sécurité Ferroviaire (French rail safety public authority) Page 9
Management Report
2008
SNCF — Financial Report 2008
(In € millions)
Group results and financial position
d) Operating profit
f) Share of profit of associates
Standing at €856 million, operating profit declined by €234 million compared to the 2007 pro forma. The 2008 impairment losses had a net negative impact of €368 million on net profit, attributable to: — the impairment of SNCF Infrastructure assets: €325 million;
The share of profit of associates amounted to €32 million, compared to €37 million in 2007. The result includes the increase in contributions from Keolis (€27 million vs. €24 million in 2007) and Eurofima (€7 million vs. €6 million in 2007) and the decrease in contributions from the Transport and Logistics division (negative for €1 million vs. positive for €6 million in 2007).
— the impairment of new investments in impaired SNCF activities (Freight, Corail and Corail IC): €116 million;
g) Income tax
— the reversal of the France Wagons impairment provision: €63 million. The 2008 proceeds from asset disposals for €244 million primarily comprise real estate capital gains for over €220 million (housing sold to low-rental housing companies (ESH) and other organisations by the parent company and Novedis, the property on rue des Poissonniers, the building at 18 rue de Dunkerque, the Freight real estate, etc.), and the SNCF Freight rolling stock (€14 million).
e) Finance costs The -€274 million deterioration in finance costs primarily stems from: — A €170 million decline in non-recurring finance costs resulting from changes on floating-rate foreign exchange contracts against fixed-rate contracts that did not qualify as hedges under IFRS. The significant decline in interest rates at the end of 2008 (1.50% on average for these contracts) significantly hindered 2008 market values compared to 2007; — A €117 million decline in recurring finance costs. This includes a volume impact for the financing of capital expenditure on property, plant and equipment and external growth operations, an interest rate impact relating to the increase in short-term interest rates primarily during the second half, and a Group structure impact (-€4 million).
Income tax for 2008 (positive at €250 million) includes the one-time capitalisation of €287 million in deferred taxes, primarily based on the parent company tax loss carry-forwards and calculated according to future revenue. The 2007 income tax also included capitalisation of deferred taxes in the amount of €353 million. The current tax charge decreased from €53 million in 2007 to €37 million in 2008.
h) Net profit from recurring operations Net profit from recurring operations corresponds to net profit from ordinary activities adjusted for the following non-recurring “items: gain or loss” on asset disposals, impairment losses, non-recurring financial items (fair value of financial instruments) and parent company deferred tax assets. Overall net profit from recurring operations stood at €611 million in 2008, compared to €724 million in 2007.
i) Net profit for the year attributable to equity holders of the parent Following all these changes, net profit for the year attributable to equity holders of the parent is positive at €575 million, compared to €1,117 million in 2007, after recognition of €18 million in minority interests. It was impacted by changes in non-recurring items (mainly the impairment loss recognised for the SNCF Infra activity for €325 million in 2008 and the €170 million decline in non-recurring finance costs compared to 2007). The ROCE (calculated on current operating profit) fell from 6.6% to 6.3%.
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2 Activity and results by core business SNCF Group activity is structured according to four divisions that are supported by common operations: Infrastructure and Engineering, Local Transport, Passenger France and Europe and Transport and Logistics.
Local Transport
Passengers France Europe
Transport and Logistics
Infrastructure & Engineering
TER, Transilien, Corail Intercity
TGV, Corail, Stations, Distribution
Global offering
Systra, AREP, Inexia, SNCF Intern.
Effia
Thalys, Eurostar, Lyria, VSC, iDTGV, A2C
Rail freight
SNCF — Financial Report 2008
Infrastructure and Engineering
Management Report
SNCF
Asset management
Keolis*
* consolidated using the equity method
Division contributions to revenue, current operating profit and net profit from recurring operations break down as follows: (In € millions)
Revenue Gross profit Cash flow from operations Free cash flow
Infrastructure & Engineering
Local transport
Passengers France Europe
Transports & Logistics
Common operations & Investments & Inter-division eliminations
Group
4,823 13
6,340
7,469
8,027
- 1,471
25,188
457
1,573
269
279
2,591
7
319
1,333
- 98
481
2,043
- 94
59
602
- 611
- 39
- 82
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Group results and financial position
2-1 Infrastructure and Engineering The Infrastructure and Engineering division encompasses the delegated management activities of Infrastructure (SNCF) and Engineering (Systra, AREP, SNCF International and Inexia).
Infrastructure & Engineering Infra SNCF
Systra
SNCF International
Arep
Inexia
— Greater industrialisation of maintenance: 2,660 km in additional track (for a total of 4,290 km in two years including all the Rhone-Alpes lines) were maintained via the pooling of working zones. — Operations: the audit training by Ecole Polytechnique Fédérale de Lausanne (EPFL) on capacity management contributed to a draft law on the creation of an independent department for network operations and traffic management. — Substantial increase in the volume of work for RFF, for both renewal (€992 million in 2008, for an increase of 15% compared to 2007) and development (excluding new lines, €1,047 million in 2008, for an increase of 9.5% vs. 2007), including the successful conclusion of major projects (Bordeaux and Oissel railway bridges, etc.). — Exceptional diagnostic of network catenaries and submission of specific proposals to the RFF and the French State on 25 November 2008 regarding maintenance trends and the reinforcement of installations. — Launch of Infrarail, an internal service chain for rail project supplies and logistics and conclusion of a major first contract for the Rhin-Rhone high-speed line (€130 million).
a) Highlights The main highlights for Infrastructure & Engineering were as follows: — Significant change in management agreement revenue (€120 million, 4.5% vs. 2007) of which major repairs (€21 million), the annual fixed price adjustment (€18 million including the full-year impact of the Eastern high-speed line), the New Local Dynamic and Impaqt programmes (€27 million) and a highly favourable indexing (€50 million vs. 2007) corresponding to a consumer price index that reached a peak as at 30 June, the date of recognition.
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— New contracts for the engineering subsidiaries obtained in France and abroad, particularly by Systra (Baffin Island project, rail lines in Turkey, assistance with the Santiago, Chile subway, engineering and project management for the Hyderabad subway), by SNCF International (technical assistance for the South Korea high-speed line) and by Inexia (safety for the Fréjus traffic tunnel, the Canal Seine Nord Europe project, and contracts for the Rhin-Rhone high-speed line). — Asset impairment and provisions for losses on completion (see Division results).
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b) Division results 2008
2007 pro forma
Change
4,823
4,541
282
13
- 45
58
Gross profit / revenue
0.3 %
- 1.0 %
Cash from operations
7
- 36
Investments - all financing *
120
105
15
Free cash flow
- 94
- 197
103
43
* Investments net of grants and disposals decreased from €161 million in 2007 to €101 million in 2008.
Results Division revenue and gross profit rose sharply. Work carried out (a €118 million increase, or 11.5%, to €1,148 million) and the management agreement (see “Highlights” below) are driving SNCF Infra revenue and gross profit, which is almost at the breakeven point (negative by €5 million). The subsidiaries’ contribution to revenue was stable. SYSTRA is up by €8 million (7%) due to the development of its “urban transport” activity. Although INEXIA revenue has shrunk with the completion of the Eastern high-speed line, its gross profit rose by €3 million. Asset impairment The asset valuations conducted at the end of 2008 to determine SNCF Infra’s ability to generate future cash flows confirmed the necessity of a €325 million asset impairment, based on the prevailing rules governing relations between SNCF Infra and its clients (primarily RFF). Provisions for loss on completion for the Management Agreement A €60 million provision has been recognized due to the risk of a 2009/2010 loss arising from a declining economy, and hence the potential of a sharp drop in the main economic indicators underlying the agreement’s revenue indexation (GDP, price, etc.). RFF and the French State have not stated their position regarding the compensation arising from the special pension regime reform and the consequences on payroll.
Management Report
Gross profit
Investment and financing Investments totalled €120 million in 2008, the priorities being the renewal of an increasingly obsolescent vehicle fleet and the development of Infrarail and new information systems. Free cash flow remained negative at €94 million, but improved by €103 million. Cash from operations rose by €43 million, driven by the division’s profitable revenue growth.
c) Outlook In order to respond to a changing network and its maintenance requirements while improving finance costs, the division will have to undergo significant transformations: — Maintenance: Optimise SNCF Infra rail maintenance by extending and pooling working zones. The volume of track maintained in 2008 will almost double in 2009 (5,160 km vs. 2,660 km in 2008). The first conclusions of an international study on network maintenance efficiency, initiated at the end of 2008, should enable the launch of optimisation measures; — Operations: Create an independent operations department for the management of rail rights of way and circulation; — Work: Renew the network with RFF. The increase in renewal volumes included in the State-RFF performance plan is significant: €1.8 billion in 2012 compared to €1.1 billion in 2008. The work in connection with State-Region Project Contracts can be added to these volumes;
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SNCF — Financial Report 2008
In € millions Revenue
Group results and financial position
— Subsidiaries: Pursue profitable revenue growth, particularly through high-speed line (Inexia and SNCF International), and subway and tramway (Systra) development; — Major negotiations to be conducted with RFF: - Assumption of all impacts arising from reform of special pension regimes, - Day/night differentiation, - Extensive renegotiation of agreements that should lead to full compensation for our know-how and positive free cash flows.
— Five new TER agreements negotiated with the Organising Authorities in 2007 were implemented: Haute Normandie, Basse Normandie, Nord Pas de Calais, Midi-Pyrénées and Pays de la Loire. — A framework agreement was signed between Corail Intercity and the Haute Normandie regional council.
2-2 Local Transport The Local Transport division encompasses all the Group’s local transport activities: medium distance links (Corail Intercity), rail transport regulated services (TER, Transilien, Chemins de Fer de la Corse and the Keolis UK subsidiaries), bus, tramway and subway (Keolis) and complementary services (Effia).
Local Transport TER
Contracts — The new STIF/SNCF contract was signed. It calls for an annual business volume of €2.5 billion over 2008-2011 and an investment volume of €1.7 billion over four years to be financed by SNCF for 47%.
Keolis
Development of the offering and operations — Transilien has reorganised rail services and developed the offering for the Paris Est and RER A and C lines. — Rescheduling was continued: modification to Bourgogne, Rhône-Alpes, Haute and Basse Normandie and Aquitaine services. — TER has pursued inter-modality extension and price range simplification (development of subscriptions and regional multimodal and intermodal pricing solutions). — Corail Intercity worked on the branding of lines and a Qualicités plan. — The revamped Bordeaux-Limoges-Montluçon-Lyon transversal rail service was inaugurated.
Transilien SNCF
Effia
Corail Intercités
a) Highlights Fiscal year 2008 was marked by the division’s development according to various strategies (contracts, new offerings, capital expenditure, etc.).
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— The Tangentielle Nord for the Greater Paris Region was declared to be in the public interest at the end of May 2008. Investment projects — TER continued to modernise its fleet with the arrival of nearly 600 new passenger cars including the high-capacity motorised carriages. — Transilien pursued its acquisition programmes for new Transilien motorised carriages for €1,850 million and highcapacity motorised carriages for €136 million. — A supplementary IMPAQT development contract for Île de France was jointly signed with STIF and RFF (€627 million over eight years co-financed for 50% by SNCF) for the modernisation of rolling stock and the renovation of Transilien stations and infrastructures.
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Keolis — Keolis acquired the Belgian group EBH (annual revenue of €109 million), which makes Keolis the leading private bus carrier in Belgium, Evrard transport (Oise, annual revenue of €9 million) and the Sofitra group (central-western France, annual revenue of €7 million). — A new subsidiary, Aerolis, was created jointly with Air France.
— Keolis won tender bids, including all the Charente-Maritime transport services (€150 million over eight years) with a consortium. — The contract renewal rate is satisfactory in an aggressive commercial environment. Other highlights — The act incorporating Transferis was signed on 8 February 2008. This will associate SNCF and CFF for a future RER in the greater Geneva region. — National strikes had a negative impact of €11 million on traffic revenue.
— Regional trains were launched on the Hellweg-Netz network (Rhenania North-Westphalia in Germany) on 13 December 2008.
Management Report
— The D maintenant ! plan was launched. It calls for €100 million in investments over 18 months in order to improve RER D line operations.
In € millions Revenue Current operating profit (COP) COP / Revenue Cash from operations Investments (all financing sources)* Free cash flow
2008
2007 pro forma
Change
6,340
5,913
427
457
397
60
7.2 %
6.7 %
319
255
64
1,492
1,366
126
59
- 159
218
* Investments net of grants and disposals decreased from €414 million in 2007 to €260 million in 2008.
Results The 7% increase in Local Transport revenue is explained by:
— The €8 million (8%) in growth in the EFFIA contribution to revenue (€104 million in 2008), thanks to new fleets.
— The increase in traffic revenue (10.6% for TER traffic, 6.2% for Transilien traffic);
The 15% increase in gross profit essentially stems from the TER growth (25%), whereas Transilien grew by 3% and Effia grew by 11% (€22.1 million to €24.6 million in 2008). The division’s gross profit/revenue ratio has thus increased from 6.7% to 7.2%. The New Local Dynamic and IMPAQT projects had more significant consequences for:
— Indexation impacts provided for under contract and induced by higher prices (with no impact on net profit since it parallels the higher charges); — Base impacts relating to the fixed increase in charges arising from new agreements signed with the Organising Authorities and the STIF, and limited by the impact of the increase in contractual objectives;
— Transilien purchases and external charges (excluding infrastructure fees and energy). TER purchases and external charges rose in proportion to revenue;
— The drop in labour unrest (positive impact of €37 million) compared to 2007;
— TER employee benefits expenses (5.1% increase in the number of employees).
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SNCF — Financial Report 2008
b) Division results
Group results and financial position
Investment and financing Total investment (all financing sources) increased by 9% between 2007 and 2008. In 2008, the item primarily comprised new generation Double-decker TER trains, new Transilien motorised carriages, high-capacity motorised carriage trains, the new TER RITM’X sale system, the renovation of stations (Transilien + loin programme), and the launch of a video surveillance programme in stations. Net of agreements and disposals, investments decreased from €414 million to €260 million. The €64 million (25%) increase in cash from operations stems from Transilien for €33 million and TER for €22 million. The increase in cash from operations and the decrease in investments net of agreements and disposals generated a significant turnaround in free cash flow, which was positive at €59 million in 2008. Keolis Keolis was consolidated using the equity method. The positive contribution of Keolis to the net profit of equity-accounted companies amounted to €27 million, compared to €24 million in 2007. The increase was primarily driven by revenue growth, resulting from a combination of acquisitions (particularly EBH in Belgium in early 2008), share capital increases in 2007, and a 2008 portfolio impact (relating to the gain of the London Midland concession at the end of 2007). On a constant Group structure basis: — France posted a substandard performance due to intercity difficulties and the troubled economy at the year-end; — International activity grew thanks to England and Scandinavia.
c) Outlook
— Beginning of negotiations with Alsace; — Expanded offering with the reopening of Aix-Marseille, new PACA offerings, continued rescheduling in Bourgogne, Aquitaine, Haute and Basse-Normandie; — Pursuit of fleet modernisation: commissioning of 673 new rail cars. By the end of 2009, 54% of the fleet will comprise new equipment. Transilien — Development of the offering (+4%): rescheduling of the Paris-Montereau-Montargis, Paris-Mantes and Paris-Dreux lines; — Continuing roll-out of IMPAQT and “D maintenant !” service quality programmes; — Arrival of the new Transilien motorised carriage at the end of 2009 and the dual-mode high-capacity motorised carriage. Corail Intercity — Modernisation of 120 Corail cars, roll-out of cars designed for persons with reduced mobility. Keolis — Maintenance of leading position in city and inter-city transport in France; — International growth. Effia — Reinforcement of its role as a major player in the parking sectors with the creation of 10,000 additional spaces and the development of sustainable mobility solutions.
Fiscal year 2009 will be highlighted by the following items: TER — Renewal of agreements: finalisation and signature effective 1 January 2009 for Aquitaine, Auvergne and ChampagneArdennes;
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2-3 Passenger France Europe The Passenger France and Europe division encompasses the TGV, Corail and Europe (Eurostar, Thalys, Lyria, etc.) carriers, and the related service providers, Stations and Staging Points, Distribution (with among others Voyages-sncf.com), Train Management and their administrative support functions and information systems.
Service providers
TGV
Corail
Stations
Trains
Distribution
IDTGV
CRM Services
A2C
Voyages-sncf. com
Parvis
Rail Europe
SNCF — Financial Report 2008
Transporters
Management Report
Passengers France Europe
EUROPE Eurostar
Thalys
Artesia
a) Highlights The year 2008 saw the successful launch of numerous innovations, in terms of the offering and service, and a step-up in the division’s international development. Success of the new fare and service offering — Constant improvement in the first class occupancy rate, following the introduction of a service offering that was better adapted to the needs of business travellers; — Ambitious training plan covering 5,500 customer agents combined with the new service offering; — Success of Lunéa fares tested on the Internet since March.
Elipsos
TGV lyria
Alleo
New offerings — First full year of operation for the TGV East European and High Speed 1 (Eurostar) lines. Excellent results in terms of service reliability and sales, mitigated by Eurostar and the consequences of the Eurotunnel fire in September 2008; — Development of iDTGV offerings (iDNight, new day services and strengthening of current services) and launch of the TGV Prêt-à-Partir offering (400,000 trips in 2008); — New TGV East European services: new Paris and Zurich and TGV Paris-Munich services; — Launch of a sixth Thalys service to Amsterdam and creation of Lyon/Lille and Nantes/Montpellier services, an eighth Paris/Nice summer service, and a third Paris/St Malo service.
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Group results and financial position
Division development — NTV, a new high-speed train operator in Italy, selected SNCF as its industrial partner on 9 October 2008. SNCF acquired a 20% stake in NTV;
— Possibility of travelling on both the Thalys and Île-de-France networks using only a Navigo pass;
— Decision to roll out wide band Internet on the Eastern high-speed line and creation of a Connexion TGV joint venture in partnership with Bolloré to develop the service.
— 25 November launch, with Banque Postale, of Regliss, a prepaid bank card for young people;
New services rolled out by the division and its subsidiaries — Launch of Voyages-sncf.mobi (m-commerce) and tgv-europe.com sites; — Roll-out of new Internet sale sites on the UK and US markets by the Rail Europe network;
— New Auto-train offering at very attractive prices;
— Step-up in CRM Services, Grand Voyageur and Gagner à Voyager loyalty programmes; — A2C roll-out of new concessions in the Eastern line stations, including the completion of boutiques in the Gare de l’Est, Gare de Lyon Galerie Diderot, and Halle Honorat in Marseilles.
— Roll-out of Accès Plus in over 300 stations;
b) Division results 2008
2007 pro forma
Change
Revenue
In € millions
7,469
6,917
553
Gross profit
1,573
1,273
301
Gross profit / revenue
21.1 %
18.4%
Cash from operations
1,333
1,081
252
Investments - all financing *
812
654
158
Free cash flow
602
501
102
* Investments net of grants and disposals increased from €581 million in 2007 to €731 million in 2008.
Results Passenger France and Europe posted 2008 sales figures that were more than satisfactory (revenue was up by 8%), despite a progressive decline in the economic and financial situation over the year and the consequences of the Eurotunnel fire. The high oil prices that persisted until the summer in fact contributed to a modal shift from air and road transport to the train. There was a dynamic rise in passenger traffic revenue (8.7% compared to 2007, 7.7% excluding the impact of the 2007 and 2008 strikes): — The solid TGV performance is due to the full-year impact of the TGV East, the increase in the number of first class reservations, relating to the introduction of new fare and service offerings, and an active promotional policy for Leisure customers;
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— The decrease in Corail activity (relating to the roll-out of the TGV East) was limited by the solid results of Lunéa, whose traffic was stimulated by the launch of a new Internet fare offering; — Despite dynamic growth in international traffic, activity in Europe posted a clear slowdown in terms of revenue, due to the fall-out from the Eurotunnel fire and the significant depreciation of the pound in relation to the euro. Gross profit rose by 13% compared to 2007 (24% if the one-off impact of the electricity price adjustment over 2007-2008 is included). Excluding this impact, the ratio of gross profit over revenue rose from 18.4% to 19.3% (or 21.1% with the impact). These solid performances are explained by the appeal of rail, from both an economic and environmental perspective, ongoing sales initiatives and tighter control over increases in operating expenses and overheads.
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— The transformation of current rolling stock (TGV trains and Corail cars in the amount of €157 million); — and Construction work (€105 million) for new stations (Bellegarde) and renovation/modernisation of existing stations (Gare St Lazare, video surveillance). Cash flow from operations provided financing for the division’s investments in 2008. Cash from operations increased by 11% (23% with the one-off impact of the energy price adjustment), to €1,333 million in 2008. Free cash flow rose from €501 million in 2007 to €602 million in 2008, for a 20% increase, fully attributable to this one-off impact, without which free cash flow would have declined by 7% compared to 2007.
c) Outlook
There will be organisational change to support the division’s objectives: — Arrival of five strategy project managers for Passenger France and Europe in January 2009 in order to create a more flexible and customer-friendly division;
Management Report
— The Double-decker TGV acquisition (15 trains delivered in 2008, €516 million in investments);
— New momentum for Thalys based on three focal points: - A new Thalys: gradual roll-out of renovated trains, new on-board service contract and new uniforms; - Commissioning of high-speed lines to Germany and the Netherlands, escalation in frequency, and use of Double-decker trains; - Adaptation of the sales strategy: new corporate offering, extension of electronic ticketing and launch of a loyalty programme.
— Introduction of a new economic management approach so that line managers are more accountable; — In order to prepare the opening to competition, creation of Guichet Gares (roll-out on 13 December 2008), a platform for processing the requests of new entrants wishing to use the passenger stations.
In terms of division revenue, there will probably be a net slowdown in 2009 due to a deteriorating economy. The following strategies will be developed: — Pursuit of TGV gains in the business travel market (improved service quality) and Leisure customer business volume (steady “low prices” combined under the Prem’s label for greater visibility), in addition to sales drives; — Acceleration in Corail service optimisation, particularly for the Auto-train activity; — Return to a normal transport plan for Eurostar beginning March-April 2009;
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SNCF — Financial Report 2008
Investments and financing Investments (all financing sources) amounted to €812 million over 2008 and primarily comprised:
Group results and financial position
2-4 Transport and Logistics The Transport and Logistics division encompasses a full range of transport and freight logistics businesses.
Transport & Logistics Asset management
Rail cars
France Wagons, Ermewa, CTC, Transengrais, CWS, Sci Retif, SGW
Workshops Segi, Sari
SGVMT (Rosco)
Rail freight
FRET SNCF
Rail companies Freight UK, Benelux Italie, Cargo docks, Rail euro concept, Sibelit, ITL, VFLI
Global Offering
Geodis Parcel delivery and express Freight Forwarding Contractual logistics
Combined operators CME, Lorryrail, Naviland, Novatrans, Froid combi, AFA
Service providers
Edifret, Transinform., Logifer, Cadefer, Sideuropa, Séfergie, Logistra, Ecorail, Fret Deutsch.
Route
Groupe STVA Other transport commissioners Sealogis, Rouch, Districhrono, STSI
a) Highlights Transport and Logistics highlights in 2008 involve the division’s international positioning and its development in France.
sea freight forwarding sector with annual revenue of €270 million in 2007);
Pursuit of the division’s international growth and its positioning as global leader in new businesses relating to integrated supply chain management, through the following actions: — Takeover of Geodis to transform the group into a global European operator in freight transport and logistics;
— Acquisition of 75% of the Import Transport Logistik (ITL) group, a German private rail company, on 24 May 2008 (annual revenue of €47 million in 2007, for a freight traffic volume of 1.3 GTK);
— Acquisition of the German group Rohde & Liesenfeld (R&L) by Geodis on 3 January 2008 (an international player in the air and
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— Signature of a Geodis contract with IBM (€1 billion annually over 15 years) and acquisition of IBM Global Logistics, making Geodis the leading 4PL player of this size;
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Labour unrest SNCF Freight national strikes had a negative impact of €21 million on traffic revenue.
b) Division results In € millions Revenue Gross profit Gross profit / revenue
2008
2007 pro forma
Change
8,027
7,628
399
269
258
11
3.3 %
3.4 %
Cash from operations
- 98
55
Investments - all financing *
582
421
161
- 611
- 240
- 371
Free cash flow
- 152
* Investments net of grants and disposals increased from € 294 million in 2007 to €513 million in 2008.
Results Acquisitions in 2008 (Rohde & Liesenfeld, ITL, Oughtred & Harrison) and 2007 (Wilson) highlighted the Transport and Logistics division results. These acquisitions contributed €375 million in revenue. Excluding the Group structure impact, revenue was stable (increase of €24 million, or 0.3%). — Global Offering: Growth was driven by the acquisition of R&L. On a constant Group structure basis, activity increased by 2% due to growth over the first three quarters of the year, before posting a decline in the fourth quarter because of a net deterioration on the economic front. The decline involved all businesses and particularly Parcel Delivery, Freight Forwarding and the iron activity of STVA. — Rail Transport: The €133 million decline in SNCF Freight traffic revenue over the last quarter was partially offset by the consolidation of ITL (€35 million) and the organic growth of Naviland Cargo (€16 million). — Asset Management: The revenue increase at France Wagons, relating to rate revaluations for SNCF Freight, had no impact on the contribution to division revenue.
Management Report
Step-up in the roll-out of the Rail Wide Band action programme through: — The programme’s development: Reconfiguration of the network based on three hubs, industrial consolidation of Freight, five business divisions, and five regional Freight units, which have all been operational since 1 October 2008;
— Modification of the work time reorganisation project to better use scarce resources in terms of conductors and locomotives, following the decision of 900 volunteer conductors not to test new working conditions.
Gross profit rose by €11 million, including €9 million relating to Group structure impacts. On a constant Group structure basis, gross profit rose by €2 million (1%). The stagnation is due to the year-end drop in activity, which was shared by the Global Offering (Geodis, STVA rail activity) and Rail Transport (SNF Freight, for which the significant decline in the accounts is slightly mitigated by one-off rate adjustments for the energy line item). Investments and financing The €371 million decrease in the division’s free cash flow is explained by an increase in investments and a decrease in disposals and cash from operations: — Global Offering: Investments rose (Bonneuil platform for €48 million, STVA trucks and rail cars for €33 million) in parallel to a decrease in real estate disposals compared to 2007. — Rail Transport: Investments were up by €69 million with the acquisition of main line (BB 75000) and switcher (BB 60000) thermal locomotives. — Asset Management: Investment amounted to €27 million.
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SNCF — Financial Report 2008
— Rail license obtained in the UK via Fret Europe UK and in Poland via ITL Polska.
Group results and financial position
c) Outlook The division expects to realise its ambition of becoming a global European logistics and freight transport player. Accordingly, there will be five focal points to its strategy: — Gain ground with respect to the international and specialised logistics activity; — Develop the rail mode throughout Europe; — Develop freight road transport in a responsible manner; — Position SNCF Group as an organiser of innovative multimodal solutions; — Develop the asset management activity. SGVMT, a rolling stock piggy-back and leasing entity created on 1 January 2009, will recover the locomotives transferred by SNCF Freight.
2-5 Common Operations and Investments The Common Operations and Investments division encompasses the Group’s support functions, the Equipment and Traction service providers, the Real Estate activities (ICF, SNEF Group) and a few subsidiaries and affiliates such as SeaFrance.
— Modernisation of its industrial facilities in order to meet the steady arrivals of new equipment. This was reflected by the optimised set-up of new maintenance workshops for TER (scheduled between 2004 and 2010), Transilien (new Val-Notre Dame workshop inaugurated in early September) and TGV trains (maintenance workshop in Lyon inaugurated in early 2009); — Professionalization of engineering (reorganisation based on two core businesses: life series engineers and key components engineers); — Improvement of quality for services rendered to activities participating in the New Local Dynamic, D maintenant ! and plan pantographe programmes, as well as TER rescheduling; — Modification of the management method for establishments and a reduced and more flexible organisation; — More efficient production planning (Agirre and Osmose projects). In 2008, the division continued to provide support for the commissioning of new rolling stock, which remains at a high level with the late December delivery of 23 Transilien dual voltage locomotives, 101 Freight locomotives, 13 DASYE trains, 2 POS trains, 32 TER2N NGs and 135 high-capacity motorised carriages.
c) Traction
a) Support Functions
In 2008, the Traction activity was highlighted by:
The 2008 net profit of the support functions includes certain specific items:
— The industrial consolidation of SNCF Freight. The transfer of drivers from Traction to SNCF Freight was completed on 1 July 2008 for the Fret Nord division and on 1 October 2008 for the four other Freight divisions;
— The impact on net profit of the tax consolidation group deferred tax asset that amounted to €286 million in 2008 vs. €352 million in 2007; — Non-recurring finance costs (see General observations on Group results) ; — The impact of the 2007 and 2008 employee dividends (-€81 million).
b) Equipment Fiscal year 2008 was the first year of implementation for the Performance 2010 programme, the goal of which is to make the Equipment division the leader in European maintenance. The programme is based on the following main strategies:
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— The reduction by half of days lost due to strikes; — Rescheduling: Development of the TER Rhone Alpes rescheduling set up in December 2007, rescheduling for line A in February 2008 and for lines N, R and J with respect to the December 2008 change in service, rescheduling preparation for the TER PACA and TER Bourgogne Nord lines, and the Normandie lines for both TER and Corail Intercity; — Interoperability for line B, which began in July 2008, will be completed by the summer of 2009; — The review of TGV South East schedules, roll-out of the V200 for Paris-Clermont and an inter-sector step-up for the TGV East;
sncf.com
— The opening of new ORFEA residences (Paris Magenta and Lyon Perrache).
Eurotunnel operational problems generated additional revenue of €14 million for SeaFrance.
Traction production in 2008 was reflected in a 3% decrease in kilometres travelled, the result of two conflicting trends:
Consequently, the operating profit breaks down as follows:
— The 4.8% increase in kilometres travelled for all Passenger activities due to an expansion of the transport plan.
d) Real estate The contribution of the Housing division (ICF and NO VEDIS) to revenue is steady at €85 million and the contribution to gross profit (€32 million) was down slightly by 3%. In connection with the reorganisation of the Group’s housing stock, the parent company contributions to the subsidiaries were continued. These contributions began in the second half of 2006 and are scheduled over four years.
— A 1.3% decline in the number of vehicles transported compared to 2007, in a market that fell by 4.5% overall; — A 7.7% decrease in the truck volume, in a market that shrunk by 5.8%. The SeaFrance contribution to revenue thus decreased by 8%, from €242 million in 2007 to €223 million in 2008. Gross profit was negative at €12 million, compared to a positive result of €15 million in 2007, due primarily to a revenue reduction, fuel prices, and the SeaFrance Molière expenses (including additional conversion costs for €5 million). The alarming results for 2008 and the troubled outlook for 2009 will necessitate severance measures to guarantee a mid-term return to profitability. A company recovery plan was presented during an extraordinary works council meeting on 17 February 2009 (see Post-balance sheet events).
The SNEF group contributes to the rail sector’s land and real estate development through its planning activities, real estate promotion, advisory services and project management assistance, as well as real estate transactions and leasing. The SNEF contribution to Group revenue decreased from €5.2 million to €4.9 million, while its contribution to gross profit amounted to €5.0 million (compared to €6.6 million in 2007).
e) Maritime Transport SeaFrance, which had benefitted from a relatively favourable economy in 2007, endured a very chaotic 2008 due to: — The economic situation (pound sterling exchange rate, soaring oil prices in the first half and the financial crisis in the second half); — The officers’ strike which completely shut down the company from 27 February to 17 March (revenue loss quantified at €9 million);
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SNCF — Financial Report 2008
— The 31.2% decrease in kilometres travelled for SNCF Freight due to a reduction in the transport plan and the industrial consolidation;
Management Report
— The transfer of Traction stand-by drivers to the activities on 1 April 2008 gave each activity real-time control over driving resources;
— Problems with the offering: The technical stoppage of the SeaFrance Rodin was extended from 25 February to the end of April due to serious propeller problems, and there were difficulties and postponements for the early operations of the SeaFrance Molière, initially in freighter mode.
— The Eurotunnel fire consequences for the Eurostar service;
Group results and financial position
3 Group financial position 3-1 Free cash flow and investments (In € millions)
2008
2007
Change
Cash flow from operations
A
2,043
1,856
187
10 %
Net equity-financed investments
B
2,125
1,698
427
25 %
Difference A-B
- 82
158
- 240
na
Free cash flow
The 10% increase in cash from operations will not cover the financing of Net equity-financed investments which rose by 25%.
in 2008 due to an improvement in cash from operations (€215 million), limited by a decrease in disposals (€144 million).
The change in free cash flow primarily stems from the individual subsidiary free cash flows:
The parent company capital expenditure level remains high, primarily comprising:
— SeaFrance (€152 million decrease): mainly due to the Molière vessel;
— upgrades to stations and buildings (creation of a TGV workshop in Lyon, GSMR project, rail hotel residence, relocation of the Centre de Régulation Opérationnel de Paris Saint-Lazare, work for the Vénissieux Equipment workshop);
— Geodis (€112 million decrease): few disposals in 2008, whereas 2007 had posted real estate disposals and greater investment (Bonneuil platform); — STVA (€37 million decrease): increase in investments (trucks, rail cars).
— acquisition and renovation of rolling stock: high-capacity motorised carriages, new generation TER2, Double-decker TGV, Dasye TGV, Freight and Transilien locomotives.
The parent company free cash flow does not compensate that of the subsidiaries: increase from €40 million in 2007 to €118 million
3-2 Group net debt 2008
2007
Change
Non-current debt
(In € millions)
14,632
15,894
- 1,262
Non-current receivables
- 7,937
- 9,190
1,253
6,695
6,704
- 9
Net non-current debt Current debt
8,017
7,766
251
- 8,748
- 9,990
1,242
Net current debt
- 730
- 2,224
1,493
Net debt
5,965
4,480
1,484
0.7
0.5
Current receivables
Gearing
Net debt amounted to €6 billion as at 31 December 2008, for a gearing ratio of 0.7 (versus 0.5 at the end of 2007). Cash from operations as a percentage of net debt decreased from 41% at the end 2007 to 34% at the end of 2008.
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The €1.5 billion increase in debt compared to 31 December 2007 breaks down as follows: (In € millions) Opening net debt
- 2,043
Capital expenditure on PP&E net of grants and disposals
854
Change in working capital (excluding provident and pension funds)
116
Change in fair value
337
Dividend paid to the French State
131
Other
-36
Closing net debt
Acquisitions of securities comprise securities that are consolidated (Geodis, Rohde & Liesenfeld, ITL, Oughtred & Harrison, acquisition and increase of NTV share capital, etc.) and not consolidated (STA, etc.). Net indebtedness of the non-consolidated low rental housing companies of the ICF group amounted to €1.5 billion as at 31 December 2008.
3-3 Financing sources and debt management Non-current debt decreased by €1.3 billion, while current debt increased by €0.3 billion (see table presenting net debt above). These changes are primarily explained by parent company issues and maturities. — The financing set up by the parent company stood at €2.3 billion. The issues primarily represent a bond issue for €0.8 billion, a Eurofima loan for €0.1 billion, the reinvestment of the
5,965
Management Report
2,125
Share purchases
corporate savings plan surplus for €1.2 billion (also present in the reimbursements given the change in the interest rate); — Parent company reimbursements amounted to €3.4 billion and mainly concerned bond issues for €2.0 billion and the corporate savings plan for €1.2 billion. Given the aforementioned issues and maturities, and management transactions, the fixed-rate portion of the parent company long-term debt stood at 60.4% at the end of 2008. Non-current receivables declined by €1.3 billion, while current receivables decreased by €1.2 billion (see table presenting net debt above) mainly due to: — maturities of the RFF (€1.2 billion) and CDP (€2.0 billion) receivables; and — the subscription of short and medium-term bonds for €1.3 billion, of which €0.4 billion was repaid over 2008.
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SNCF — Financial Report 2008
Cash from operations
4,480
Group results and financial position
4 Consolidated balance sheet and ratios (In € millions)
31/12/2008
31/12/2007
Goodwill
633
509
Intangible assets
496
409
22,384
20,794
8,125
9,387
Property, plant and equipment Non-current financial assets Investments in associates Deferred tax assets Non-currents assets
410
294
1,185
895
33,233
32,288
Operating assets
5,985
5,576
Current financial assets
5,468
6,564
Cash and cash equivalents
3,280
3,426
14,733
15,566
17
0
47,982
47,854
Share capital
4,971
4,971
Consolidated reserves
2,351
1,870
575
1,042
7,898
7,884
75
348
Total equity
7,972
8,232
Non-current employee benefits
1,133
1,125
Current assets Assets classified as held for sale TOTAL ASSETS
Net profit for the year Equity attributable to equity holders of the parent Minority interests
Non-current provisions Non-current financial liabilities Deferred tax liabilities Non-current liabilities Current employee benefits Current provisions
903
498
14,632
15,894
97
99
16,766
17,616
81
80
151
258
Operating payables
14,957
13,903
Operating liabilities
15,189
14,240
Current financial liabilities Current liabilities Liabilities directly associated with assets classified as held for sale TOTAL EQUITY AND LIABILITIES Gearing Cash flow from operations/ Net debt
Page 26
8,017
7,766
23,206
22,007
38
-
47,982
47,854
0.7
0.5
34%
41%
sncf.com
— Definitive asset split between RFF and SNCF (following the French State’s letter sent to SNCF on 7 August 2008) and the quality upgrade of the asset register (INPEC project); — Resetting of measurement parameters for certain financial instruments at fair value; — Modifications to calculation methods for certain employeerelated commitments (social welfare initiatives, compensation for work-related injuries, salary bonuses, unemployment insurance, salary maintenance); — Modification to the definition of cash and cash equivalents (cash collateral assets of less than three months on inception have been withdrawn from cash and cash equivalents);
— decrease in minority interests following the takeover bid for Geodis; — increase in provisions relating primarily to changes in provisions for litigation and contractual disputes (€148 million including RTE for €100 million), the additional provision for rolling stock asbestos removal (€113 million) in return for the recognition of an asbestos removal component in assets and an additional provision for site decontamination (€66 million); — decrease in non-current financial assets (see 3.3); — increase in operating liabilities that includes a significant increase in investment grants.
— Harmonisation of Eurofima accounting policies; The quantification of these various modifications is presented in Note 1.4 to the consolidated financial statements.
4-2 Main balance sheet changes There were several significant changes in the Group balance sheet between 31 December 2007 and 31 December 2008: — increase in goodwill relating to the various Group acquisitions and specifically Rohde & Liesenfeld (€66 million), ITL (€37 million) and Oughtred & Harrison (€11 million); — increase in property, plant and equipment and intangible assets following major investments (see 3.1 ); — substantial decline in current and non-current financial assets (see 3.3 );
Management Report
The 2007 comparative balance sheet was modified in relation to the published version to include the following elements:
— stability in equity attributable to equity holders of the parent that includes two contradictory movements: on one side, net profit for the period (€575 million), and on the other side, recording of goodwill relating to the purchase of the Geodis minority interests (negative impact of €328 million), the dividend payment to the French State (€131 million) and changes in fair value (negative impact of €116 million);
5 Financial relations with the French State, Réseau Ferré de France and local authorities SNCF receives public service orders, as is the case with any public service agent or supplier to the French State and local authorities, but in a monopoly legislative and regulatory framework. In addition to operating and investment grants primarily received for the activities of the Local Transport division, SNCF also receives compensation for off-balance sheet financial and social security expenses. This compensation is based on European Union regulations intended to equalize competition conditions between rail and other forms of transport.
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SNCF — Financial Report 2008
4-1 Modifications to the 2007 comparative balance sheet in relation to the published balance sheet
Group results and financial position
5-1 Public service orders (In € millions)
31/12/2008
31/12/2007
Change
2,913
2,805
108
863
825
38
2,051
1,980
70
Compensation of IM by RFF including Traffic and circulation management agreement including Asset management agreement Work for RFF
1,148
1,030
118
Total RFF
4,062
3,836
226
338
322
16
3,344
3,120
224
540
494
46
3,682
3,442
240
5
6
-2
Compensation for regional rates Services for the Organising Authorities including Infrastructure fees Total Regions and STIF Newspapers Socially-motivated prices
66
70
-4
Defence
171
173
-2
Total French State
242
249
-7
7,985
7,526
459
TOTAL
a) Compensation of the Infrastructure Manager by RFF (RFF management agreement)
(€34 million) operations which offset the TGV East work stoppage (€30 million).
This item is up by €108 million compared to 2007, primarily due to the increase in volume of major repairs and indexations (particularly the price index).
c) Services for transport Organising Authorities and the STIF
b) Work for RFF The €118 million increase in this item is related to the start-up of the Midi Pyrénnées Rail Plan project (€28 million), and a higher volume of activity for regeneration (€86 million) and development
The €224 million increase in this item compared to 2007 is explained by the positive change in the indexation of STIF and TER fixed-rate remuneration (€178 million) and the direct transfer of RFF infrastructure fees (€46 million) to the regions and STIF (neutral impact on profit or loss).
5-2 Grants and compensation for financial and social expenses Public contributions granted to the company by the State and local communities are presented in the following table: (In € millions) Operating grants Investment grants received Pensions (Art. 30 contribution) SAAD Special Debt Account TOTAL
Page 28
2008
2007
Change
23
21
2
1,354
1,055
299
-
1,392
-1,392
-
404
-404
1,377
2,872
-1,495
sncf.com
b) Other payments received not impacting profit or loss Investment grants received SNCF receives investment grants in the form of third-party financing, primarily from local authorities, for TER rolling stock. Investment grants are recorded as deferred income and released to operating income (deducted from Depreciation, amortisation
Pensions Following the creation of the SNCF Employee Pension and Provident Fund as at 30 June 2007, the company no longer receives an equalisation contribution, article 30 covering the payment of the French State being repealed (see Notes to the financial statements for the year ended 31 December 2007). Service Annexe d’Amortissement de la Dette (SAAD) Article 82 of the 2007 Amending Finance Act published on 27 December 2007 put an end to the SAAD Special Debt Account created on 1 January 1991 and, accordingly, SNCF no longer receives annual State assistance.
6 Social segment 6-1 Workforce The Group workforce remained stable. The change observed within the SNCF parent company is offset by the Group structure impact. 31/12/2008
31/12/2007
163,485
166,213
- 2 %
(2,728)
26,811
25,540
5 %
1,271
STVA Group
1,975
1,903
4 %
72
SeaFrance
1,513
1,463
3 %
50
SNCF (*) GEODIS Group
Change
VFE Partenaires
1,297
1,245
4 %
52
EFFIA Group
1,439
1,180
22 %
259
SYSTRA Group
1,062
723
47 %
339
Other subsidiaries and associates TOTAL
Management Report
Operating grants These are mainly grants of a social nature paid to companies by the French State in connection with its employment policy.
and provisions) over the estimated economic life of the relevant assets.
SNCF — Financial Report 2008
a) Public contributions included in net income
3,757
3,279
15 %
478
201,339
201,545
- 0.1 %
(206)
* Paid employees, including 977 employees seconded to Group subsidiaries
Page 29
Group results and financial position
Changes in the number of employees over recent years reflect changes in Group structure:
Parent company * Subsidiaries TOTAL
2008
2007
2006
2005
2004
163,485
166,213
168,386
170,954
175,416
37,854
35,332
33,356
34,885
54,461
201,339
201,545
201,742
205,839
229,877
* Paid employees
6-2 Main agreements signed in 2008 The main agreements signed in 2008 are as follows: — 2008 wage agreement and the Garantie Individuelle du Pouvoir d’Achat des Cheminots (Individual rail worker purchasing power guarantee);
8 Outlook for 2009 8-1 A highly turbulent context that will clearly impact T&L, and perhaps PFE The global economy has entered into a slowdown and, in certain areas, a recession:
— Agreements on the set-up of a time savings account as at 1 January 2009 and new terms and conditions governing the gradual cessation of activity;
— 7.8% fall in French industrial production over one year (-30% in the automobile industry);
— Amendment to the agreement on improving social dialogue and the prevention of labour conflicts;
— 18% increase in transport sector bankruptcies (10% all sectors considered);
— 2008-2011 agreement on employment of the disabled and its amendment;
— slowdown in the momentum of household consumption (1.3% in 2008 compared to 2.5% in 2007);
— Set-up of a mechanism for the consideration of arduous work.
— return of unemployment (2.2 million unemployed as at 1 January 2009, compared to 1.9 million as at 1 June 2008).
7 Group exposure to market risk The Group risk management policy is described in the Notes to the consolidated financial statements.
Page 30
Based on its January and February business figures, the T&L division does not anticipate any rebound over 2009. Within the division, rail freight will bear the brunt of the slowdown. The T&L division’s January 2009 revenue declined by 17%, compared to January 2008, of which 15% for Geodis and 23% for SNCF Freight. The PFE division has yet to depart from budget expectations, but the first changes in travel performance have been observed, which could weigh on average revenue.
sncf.com
The performance contract signed between the French State and RFF in 2008 will boost prospects for the Infrastructure and Engineering activity. As for Local Transport, the traffic volume observed since early 2009 has confirmed the positive budget projections. However, there are two major challenges for 2009: — Continuous improvement of service quality in connection with public service contracts; — Rectify the economic model of these contracts for SNCF.
8-3 A sustained development strategy and a significant contribution to the recovery plan Despite the crisis, SNCF intends to fully play its part in an increasingly open market. This end can only be achieved by pursuing a development strategy and, hence, strategic transitions are not excluded for 2009. Aware of its responsibilities as a public corporation, SNCF also intends to maintain its physical investments at a voluntary level in order to support the government recovery plan: — €2.5 billion in investments, including €2 billion in the parent company, or €400 million over and above its cash from operations;
Consequently, the company expects a 2009 debt dynamic similar to that observed in 2008.
8-4 A year that was marked by a new step in the opening of the market On 13 December 2009, the international passenger market, including some cabotage, will be open to competition. A regulatory authority will be set up in the coming months. SNCF has implemented the necessary organisational changes to ensure that new entrants are treated fairly (creation of an independent entity for circulation management and an agency to oversee multi-modal stations) and will initiate negotiations with the public authorities to simultaneously diminish the institutional barriers it must overcome in a market that is now open.
8-5 Our challenges for 2009 In a market that is opening to competition and globalisation, SNCF intends to stay the strategic course set in Destination 2012: — Respond immediately to the impacts of the crisis so as to minimise the impact on the company’s development capacity; — Strengthen the main assets of SNCF and specifically its domestic market by putting customers and their expectations at the core of the Group’s objectives and organization; — Accept a temporary decline in the financial ratios; — Thoroughly review, upstream to the opening of the market, the conditions governing the conduct of its missions in a competitive world.
Page 31
Management Report
The activity of the Infrastructure and Engineering and Local Transport divisions will be safeguarded from the repercussions of the crisis by public service missions in a context that is favourable to their development (Grenelle, RFF performance contract).
— €300 million in advance orders.
SNCF — Financial Report 2008
8-2 Sheltered from the effects of the financial crisis, the public service delegation divisions are able to confirm their growth forecasts
Corporate Governance 1 Board of Directors The Board of Directors of the industrial and commercial public enterprise SNCF comprises eighteen members: Seven representatives of the French State appointed by decree, based on the report of the Transport Minister: - two at the recommendation of the Transport Minister, - one at the recommendation of the Minister for Economy and Finance, - one at the recommendation of the Budget Minister, - one at the recommendation of the Minister for Planning and Regional Development, - one at the recommendation of the Minister for Industry, - the Chairman of the Board appointed from among directors and at their recommendation by a Council of Ministers decree. Five members chosen for their expertise and appointed by decree: - a representative of passengers, - a representative of shippers, - two local councillors chosen for their knowledge of regional, department and local rail-related matters, - an individual chosen for his personal expertise in the transport sector. Six members, including a management representative, elected by employees of the Company and its subsidiaries having a minimum workforce of 200 members. A Council of State (“Conseil d’État”) decree lays down the parent company bylaws and sets the procedures for the appointment and election of Board members. Board members are appointed for a five-year term of office. A director may not exercise more than three consecutive terms of office. Directors receive no compensation for their activities. The Government Commissioner or, in his absence, the Assistant Government Commissioner has an advisory seat on the Board and all committees and commissions created. The head of the Transport Economic and Finance Control Office or his representative has an advisory seat on the Board and all committees and commissions. The Board Secretary and the Secretary of the Joint LabourManagement Committee also have a seat on the Board. The Board of Directors holds at least ten meetings annually.
company and the Group, as well as Group structure operations; Audit and Risk Committee, responsible for reviewing the annual and half-yearly financial statements, risk mapping and the annual internal audit work programme; Contracting Committee, consulted on projects involving government or private contracts, acquisitions, disposals, building exchanges, based on predetermined thresholds set by the Board; Passengers Committee, responsible for monitoring of rail transport agreements between local authorities, public institutions and SNCF, and more generally overall passenger problems; Transport and Logistics Committee, newly created, responsible for reviewing the activity and strategies of the Transport & Logistics division. The successful purchase offer for the Geodis shares renews the challenges for this division, which is now the leading SNCF activity by virtue of this transaction.
2 Management team The Chairman appoints the members of the Executive Committee and defines their tasks. Within their areas of expertise, Executive Committee members are delegated powers by the Chairman enabling them to act and decide in his name. The Chairman has also created a management team, in the form of an executive committee, comprising seven Group executive vice-presidents. The committee coordinates and formalises the main strategic decision at both the parent company and subsidiary level.
Since its renewal in February 2008, the Board of Directors now has five committees: Strategic Committee, responsible for reviewing the annual and long-term strategic and financial directions of the parent
Page 32
sncf.com
Company financial statements
SNCF — Financial Report 2008
Management Report
The SNCF financial statements (in French GAAP) may be obtained by simple request from SNCF (Finance / Accounts Management and Management Control).
Page 33
SNCF Group Consolidated Financial Statements (IFRS)
In € millions
Page 34
sncf.com
Consolidated balance sheet
page
36
Consolidated income statement
page
38
Consolidated statement of changes in equity
page
39
Consolidated cash flow statement
page
40
Notes to the consolidated financial statements
page
42
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. 27. 28. 29. 30. 31. 32. 33. 34. 35. 36. 37.
Accounting standards base Major events of the year Business combinations Acccounting policies Goodwill Intangible assets Property, plant and equipment Impairment tests Financial assets Investments in e.s.h. low rental housing companies Investments in associates Investments in joint ventures Inventories and work-in-progress Operating receivables Cash and cash equivalents Minority interests Employee benefits Provisions Financial liabilities Derivative financial instruments Managing market risks and hedging Operating payables and other accounts in credit Assets and liabilities classified as held for sale Segment reporting Purchases and external charges Employee benefits expense and headcount Depreciation and amortisation Impairment losses Net proceeds from asset disposals Net borrowing costs Income tax expense Off-balance sheet commitments Related-party transactions Management compensation Litigation and disputes Post-balance sheet events Scope of consolidation
page page page page page page page page page page page page page page page page page page page page page page page page page page page page page page page page page page page page page
42 49 52 55 69 70 72 75 77 80 80 82 82 83 84 86 86 92 92 96 102 107 107 108 111 111 112 112 113 113 114 116 121 124 124 125 126
SNCF — Financial Report 2008
Contents
CONTENTS
Page 35
Consolidated balance sheet Consolidated assets In € millions
Notes
31/12/2008
31/12/2007(1)
Goodwill
5
633
509
Intangible assets
6
496
409
Property, plant and equipment
7
22 384
20,794
9
8,125
9,387
Investments in associates
Non-current financial assets
11
410
294
Deferred tax assets
31
1,185
895
33,233
32,288
Non-current assets Inventories and work-in-progress
13
751
613
Operating receivables
14
5,234
4,963
Operating assets Current financial assets Cash and cash equivalents Current assets Assets classified as held for sale Total Assets
5,985
5,576
9
5,468
6,564
15
3,280
3,426
14,733
15,566
17
-
47,982
47,854
(1) Restated for modifications described in Note 1.4. The notes presented on pages 10 to 89 are an integral part of these consolidated financial statements.
Page 36
sncf.com
Notes
31/12/2008
31/12/2007(1)
Share capital
4 971
4 971
Consolidated reserves
2 351
1 870
575
1 042
7,898
7,884
Net profit for the year Equity attributable to equity holders of the parent Minority interests
16
Total equity
75
348
7,972
8,232 1,125
Non-current employee benefits
17
1,133
Non-current provisions
18
903
498
19 to 21
14,632
15,894
Non-current financial liabilities Deferred tax liabilities
31
Non-current liabilities
97
99
16,766
17,616
Current employee benefits
17
81
80
Current provisions
18
151
258
Operating payables
22
14,957
13,903
15,189
14,240
Operating liabilities Current financial liabilities Current liabilities Liabilities associated with assets classified as held for sale Total equity and liabilities
19 to 21
8,017
7,766
23,206
22,007
38
-
47,982
47,854
(1) Restated for modifications described in Note 1.4. The notes presented on pages 10 to 89 are an integral part of these consolidated financial statements.
Page 37
SNCF — Financial Report 2008
In € millions
Consolidated Financial Statements
Consolidated equity and liabilities
Consolidated income statement In € millions
Notes
31/12/2008
31/12/2007(1)
Revenue
24
25,188
23,598
Purchases and external charges
25
- 11,843
- 10,939
Employee benefits expense
26
- 9,841
- 8,909
Taxes and duties other than income tax
- 867
- 824
Other operating income and expenses
- 46
- 39
2,591
2,887
- 1,257
- 1,176
Gross profit Depreciation and amortisation
27
(Charge to)/reversal of provisions Current operating profit
- 354
- 131
980
1,580
Net proceeds from asset disposals
29
244
112
Impairment losses
28
- 368
- 21
856
1,672
Net borrowing costs and other
30
- 454
- 173
Finance cost of employee benefits
17
- 50
- 714
- 504
- 887
352
785
Operating profit
Finance costs Net profit before tax from ordinary activities Share of profit of associates
11
32
37
Income tax expense
31
250
300 1,122
Net profit from ordinary activities
633
Net profit from discontinued operations
- 40
- 13
Net profit for the year
593
1,109
Net profit for the year attributable to equity holders of the parent
575
1,042
18
67
Net profit for the year attributable to minority interests (1) Restated for modifications described in Note 1.4. The notes presented on pages 10 to 89 are an integral part of these consolidated financial statements.
Page 38
sncf.com
Consolidated statement of changes in equity Group translation reserves
Other reserves
Net accumulated profit
Equity attributable to equity holders of the parent
Minority interests
Total equity
4,971
- 4
- 72
- 29,146
- 24,252
238
- 24,013 50
Net changes in fair value
-
-
50
-
50
-
Foreign exchange differences
-
- 7
-
-
- 7
- 1
- 8
Net profit for the year
-
-
-
1,042
1,042
66
1,109
Dividends paid
-
-
-
-
-
- 21
- 21
Capital transactions
-
-
-
-
-
92
92
Creation of the Employee Pension and Provident Fund
-
-
-
31,052
31,052
- 23
31,029
Other movements Equity as at 31/12/07
-
-
-
- 2
- 2
- 4
- 6
4,971
- 11
- 22
2,946
7,884
348
8,232 - 116
Net changes in fair value
-
-
- 116
-
- 116
-
Foreign exchange differences
-
10
-
-
10
-
10
Net profit for the year
-
-
-
575
575
18
593 - 149
Dividends paid
-
-
-
- 131
- 131
- 18
Capital transactions
-
-
-
-
-
-
-
Change in consolidation scope
-
-
-
- 328
- 328
- 275
- 603
Other movements Equity as at 31/12/08
-
-
2
2
4
2
6
4,971
- 1
- 137
3,065
7,898
75
7,972
(1) Restated for modifications described in Note 1.4. Changes in scope of Group equity and minority interests primarily concern the acquisition of Geodis minority interests. In 2008, the French State collected its first dividend in the amount of €131,367,800. The notes presented on pages 10 to 89 are an integral part of these consolidated financial statements.
Page 39
SNCF — Financial Report 2008
Equity as at 01/01/07
Share capital
Consolidated Financial Statements
In € millions
Consolidated cash flow statement In € millions Net profit for the year attributable to equity holders of the parent Net profit for the year attributable to minority interests Net profit for the year
31/12/2008
31/12/2007(2)
575
1,042
18
67
593
1,109
Adjustments: Elimination of share of profit of associates
- 32
- 37
Elimination of deferred tax expense (income)
- 287
- 353
Elimination of depreciation, amortisation and provisions
1,777
1,278
Elimination of revaluation gains/losses (fair value) Elimination of net proceeds from disposals and gains and losses on dilution Elimination of dividend income Expenses and income calculated in relation to share-based payments Other non-cash income and expenses Cash from operations net of borrowing costs and taxes Elimination of corporate income tax expense (income) Elimination of net borrowing costs Cash from operations before net borrowing costs and taxes Impact of change in working capital Taxes paid
239
-20
- 250
- 114
- 6
-
-
-
8
- 7
2,043
1,856
37
53
274
194
2,355
2,103
- 117
124
- 40
- 60
Net cash from operating activities
2,197
2,167
Acquisitions of subsidiaries net of cash acquired
- 793
- 338
Sales of subsidiaries net of cash transferred Purchases of intangible assets and property, plant and equipment Purchases of financial assets Change in loans and receivables(3) Change in cash assets(3) Receipt of investment grants Disposals of intangible assets and property, plant and equipment Disposal of financial assets Dividends received Net cash used in investing activities
Page 40
2
-
- 3,405
- 3,080
- 34
-
- 966
- 182
- 46
- 607
1,354
1,055
141
358
4
-
11
81
- 3,733
- 2,712
sncf.com
Share capital increase Net disposal (acquisition) of treasury shares Issue of debt instruments
31/12/2008
31/12/2007(2)
18
93
-
-
1,891
977
631
- 1,622
Net borrowing costs paid
- 176
-279
Dividends paid to group shareholders
- 131
-
- 19
- 22
Increase (decrease) in cash borrowings(3)
- 690
1,661
Net cash from financing activities
1,525
807
(3)
Repayments of borrowings(1) (3)
Dividends paid to minority interests
Effects of exchange rate changes
- 9
-
- 19
262
Opening cash and cash equivalents
2,726
2,464
Closing cash and cash equivalents
2,707
2,726
Increase (decrease) in cash and cash equivalents
SNCF — Financial Report 2008
(1) Of which proceeds of €1,242 million on the RFF receivable (€1,353 million in 2007) and €1,966 million on the CDP receivable (2) Including opening adjustments (see Note 1.4.2) (3) Net debt financing flow: €821 million in 2008 (see Note 15)
Consolidated Financial Statements
In € millions
The notes presented on pages 10 to 89 are an integral part of these consolidated financial statements.
Page 41
Notes to the consolidated financial statements The notes presented on pages 42 to 125 are an integral part of these consolidated financial statements. All amounts are in millions of euros (€ millions), unless stated otherwise.
1 Accounting standards base Pursuant to Article 25 of the Orientation Law on Domestic Transport (LOTI) of 30 December 1982, Société Nationale des Chemins de fer Français (SNCF), a state-owned industrial and commercial institution “is subject to the financial management and accounting rules applicable to commercial companies.” SNCF keeps its accounting books and records in accordance with prevailing legislation and regulations in France. The consolidated financial statements for the year ended 31 December 2008 were settled by the Board of Directors on 11 March 2009.
1-1 ACCOUNTING RULES AND METHODS Pursuant to European Regulation 1606/2002 of 19 July 2002, the consolidated financial statements of SNCF Group for the year ended 31 December 2008 have been prepared in accordance with the international accounting standards issued by the IASB (International Accounting Standards Board) and adopted by the European Union as at this date. The 2007 consolidated financial statements are the first set of published financial statements prepared in accordance with IAS/IFRS, and are presented with 2006 comparative figures prepared in accordance with the same standards base.
1-2 PRESENTATION OF STANDARDS AND INTERPRETATIONS APPLIED IN THE PREPARATION OF THE 2008 CONSOLIDATED FINANCIAL STATEMENTS The basis of preparation of the 2008 consolidated financial statements detailed in the following notes is the result of: – standards and interpretations of mandatory application for financial years commencing on or before 1 January 2008; – elected options and exemptions applied in the preparation of the 2008 consolidated financial statements.
1-2-1 Standards published by the iasb and not adopted by the European Union as at 31 december 2008 The following interpretations, published by the IASB, were not applied in the financial statements for the year ended 31 December 2008, as they had not been adopted by the
Page 42
European Union at this date or were adopted for application as at 1 January 2009: — IFRIC 11, IFRS 2 – Group and treasury share transactions, is applicable to financial periods commencing on or after 1 March 2007, according to the IASB, and as at 1 January 2009 according to the European Union. This interpretation considers agreements granting employees entitlement to equity instruments of the Group as equity-settled transactions, irrespective of the way in which the entity acquires such instruments for grant to employees. This text should not have a major impact on the Group financial statements. — IFRIC 12, Service Concession Arrangements, is applicable to financial periods commencing on or after 1 January 2008. This text provides clarification on the application of the financial asset and intangible asset models when accounting for service concession arrangements. Contracts likely to fall within the application scope of this text are currently being analysed. The text has not yet been approved by the European Commission. It will be applied to the Group consolidated financial statements in accordance with a timetable to be defined by the European Commission. — IFRIC 14, The limit on a defined benefit asset, minimum funding requirements and their interaction, applicable to financial periods commencing on or after 1 January 2008, according to the IASB, and in 2009 according to the European Union. This interpretation provides indications as to how to determine the “available” asset in terms of refunds or reductions of future contributions that can be recognised with respect to a pension regime surplus based on IAS 19. It also clarifies how an asset or liability arising from post-employment or other longterm benefits can be allocated in the case of a legal or contractual minimum funding requirement. The Group has no material assets with respect to defined benefits. This text should not have a major impact on the Group consolidated financial statements.
1-2-2 Standards and interpretations published by the iasb whose application is mandatory for financial periods commencing on or after 1 January 2008 The Group has opted not to reclassify certain financial assets from one category to another subject to a number of restrictive conditions pursuant to the amendments published by the IASB with respect to IAS 39 Financial instruments: recognition and measurement and IFRS 7 Financial instruments: disclosures.
sncf.com
— IFRS 8, Operating Segments, enters into application on 1 January 2009. The principles set forth in this standard call for the alignment of segment information with the data used by management (particularly internal control). This may impact the segment reporting structure and the level at which Cash Generating Units (CGU) are grouped together for the purpose of testing goodwill values.
1-2-4 Description of accounting options adopted
— IFRIC 13, Customer Loyalty Programmes, mandatory application for financial periods commencing on or after 1 July 2008. This interpretation requires that the initial sale be recognised separately from the benefit granted. The latter should be considered as deferred revenue and not a contingency provision. The impact on the consolidated financial statements is currently being quantified.
— to measure intangible assets and property, plant and equipment at amortised/depreciated historical cost and did not elect to revalue these assets at each period-end;
— IAS 23 revised, Borrowings Costs, is applicable prospectively from 1 January 2009. The principles set out in this text represent the new benchmark treatment of borrowing costs directly attributable to the acquisition, construction or production of an asset, which must be capitalised in the cost of the asset. This standard was approved by the European Commission on 16 December 2008. The impact of its application is currently being analysed. — IFRS 3 revised, Business combinations, applicable to acquisitions occurring on or after 1 January 2010. This standard clarifies and amends the accounting treatment for acquisitions of subsidiaries. It has not yet been approved by the European Commission. The application being prospective, no impact is expected on the published consolidated financial statements until application.
1-2-4-1 IFRS accounting options adopted by the group In addition to the specific provisions applicable to the preparation of the opening IFRS balance sheet, certain IASB standards offer options with respect to the measurement and recognition of assets and liabilities. The Group therefore opted:
— not to capitalise borrowing costs incurred during the period of construction or acquisition of “eligible” intangible assets and property, plant and equipment, the option still being possible for this fiscal year prior to the application of IAS 23 revised for fiscal year 2009 (see Note 1.2.3); — to record actuarial gains and losses in respect of postemployment benefits generated after 1 January 2006 in accordance with the corridor method, which provides for the amortisation of actuarial gains and losses that exceed 10% of the greater of the present value of the defined benefit obligation and the fair value of plan assets over the average remaining working lives of the participating employees; — to account for joint ventures using the proportionate consolidation method; — to record grants relating to balance sheet assets and liabilities in deferred income (operating payables).
— IAS 27 revised, Consolidated and separate financial statements, applicable to the accounting treatment of changes in the level of ownership subsequent to 1 January 2010 not covered by current standards and interpretations. This standard has not yet been approved by the European Commission. The application being prospective, no impact is expected on the published consolidated financial statements until application.
Page 43
Consolidated Financial Statements
The Group has generally not opted for the early application of the standards and interpretations applicable to financial periods commencing on or after 31 December 2008 regardless of whether they were adopted by the European Commission. Specifically, the Group has not applied the following standards and interpretations for fiscal year 2008:
— IAS 1 revised, Presentation of financial statements, applicable on or after 1 January 2009. The revised standard, approved by the European Commission on 18 December 2008, is intended to improve the analysis and comparability of information provided in the financial statements. Specifically, it calls for the creation of a new financial statement (Statement of total comprehensive income), which would replace the current income statement that combines all income and expenses, whether or not they are recorded in profit or loss.
SNCF — Financial Report 2008
1-2-3 Standards and interpretations not adopted in advance for the preparation of the 2008 consolidated financial statements
1 Accounting standards base
1-2-4-2 Accounting positions adopted by sncf Group, pursuant to paragraphs 10 to 12 of ias 8 (accounting policies, changes in accounting estimates and errors) The accounting positions presented below are not (or only partially) covered by specific provisions of international accounting standards (or their interpretations) as adopted by the European Union. SNCF Group has established, to the best of its knowledge, accounting policies reflecting the substance of the transactions concerned. — Acquisition of minority interests: The current IFRS do not provide any specific guidance on the accounting treatment of acquisitions of minority interests. As the Group has not carried out any significant minority interest transactions since the IFRS transition, it has decided to record differences between the acquisition price of minority interests and the share of the fair value of assets, liabilities and contingent liabilities acquired in equity rather than goodwill, as initially planned as at 30 June 2008, without remeasurement upon minority interest purchases. Purchase costs are recorded in equity pursuant to paragraph 35 of IAS 32, which covers equity transaction costs.
— Individual Training Entitlement (Droit Individuel à la Formation) In the absence of precise IFRS guidance in the matter, the Group continues to maintain under IFRS the French GAAP treatment of the individual training entitlement (CNC emergency committee notice 2004-F of 13 October 2004). Expenditure incurred in respect of the Individual Training Entitlement is expensed for the period and no provision is recorded.
1-3 ACCOUNTING ESTIMATES In preparing the Group accounts, management must make estimates, as numerous items included in the consolidated financial statements cannot be valued precisely. The accounting estimates used for the 31 December 2008 financial statements were prepared under the current context of uncertainty regarding economic outlooks. Management is required to revise its estimates in the event of a change in the circumstances on which they are based or as a result of new information or further experience. As such, the estimates adopted as at 31 December 2008 may be materially modified and subsequent actual results may differ materially from these estimates based on different assumptions or conditions. These estimates and assumptions notably concern:
— Minority interest purchase commitments: IAS 27, Consolidated and separate financial statements, and IAS 32, Financial instruments: presentation, as they currently stand, lead the Group to record firm and conditional minority interest purchase commitments as a financial liability with an offsetting reduction in minority interests. Where the commitment value exceeds the amount of minority interests, the residual balance is deducted from equity and no longer recorded in prior years’ goodwill. The fair value of minority interest purchase commitments is revalued at each balance sheet date and the corresponding financial liability is adjusted with recognition of an offsetting financial income or expense. Conditional purchase commitments are not material as at 31 December 2008 and 2007. — Loyalty Programmes Loyalty programmes consist of granting customers future benefits in exchange for the present and past use of the service. The Group has not opted for the early adoption of IFRIC 13 Customer loyalty programmes, and continues to maintain under IFRS the French GAAP treatment of loyalty programmes. A provision is recorded when the benefit is granted, equal to the number of loyalty points that will probably be used by beneficiaries, multiplied by the cost price of their utilisation. The accounting treatment will be modified in 2009 with the application of IFRIC 13 (see Note 1.2.3). Page 44
— Determination of goodwill: Goodwill is determined based on management estimates of the fair value of assets acquired and liabilities and contingent liabilities assumed, for the purposes of allocating the purchase cost. — Impairment of non-financial assets: The Group performs impairment tests at least once a year on goodwill balances and intangible assets with an indefinite life. In addition, the Group assesses at each balance sheet date whether there is any indication that a non-financial asset may have lost value, necessitating the performance of a test. These tests seek, in part, to determine a value in use or a market value less costs to sell. Value in use calculations are based on management estimates of expected future cash flows from the asset or cash generating unit (CGU) and the appropriate discount rate to be used to calculate the present value of these future cash flows. Market value calculations are based on an assessment by management of the transaction price that could be obtained for the sale of the assets tested, taking into account the current condition of such assets.
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— Provisions for contingencies and employee-benefit related items: The cost of post-employment benefits is determined using actuarial valuations based on a number of assumptions: discount rate, rate of salary increase, mortality rate and inflation. Due to the long-term nature of these plans, uncertainties relating to these assumptions are substantial and may lead to different provision amounts. — Income tax expense and deferred tax assets: A deferred tax asset is recognised when it is probable that the Group will generate future taxable profits against which unused tax savings may be offset. The Group’s ability to recover these tax assets is analysed based on its business plan, contingencies relating to the economy and the uncertainties surrounding markets in which the Group is active. Deferred tax assets are adjusted upward or downward should there be any material change in future Group tax results, the adjustment being offset in the income statement. — Provisions for environmental risks: The Group records a provision for environmental risks when there exists a legal or implicit obligation towards a third party that can be reliably measured and which would result in an outflow of resources.
The following modifications had no impact on net profit for the year. They gave rise to a €5 million decrease in Group and Total Equity as at 31 December 2007. The impacts on the balance sheet and income statement are summarised in Notes 1.4.7 and 1.4.8.
1-4-1 Financial instruments A positive impact of €19 million was recorded for 2007 opening equity because of an adjustment to the parameters used to measure certain financial instruments. In the balance sheet, non-current financial liabilities increased by €17 million, while current and non-current financial assets and cash and cash equivalents rose by €1 million. Operating payables and current financial liabilities decreased by €13 million and €20 million, respectively.
1-4-2 Cash and cash equivalents in the cash flow statement The definition of cash and cash equivalents has been modified in relation to the definition published in the 2007 consolidated financial statements. Cash collateral assets of less than three months on inception have been withdrawn from cash and cash equivalents (see Note 4.11). The impacts are presented in the following table: In € millions Cash and cash equivalents published as at 31/12/07
Cash collateral assets
Cash and cash equivalents as at 31/12/07 2008 comparative information
Opening cash and cash equivalents
2,923
- 458
2,465
Closing cash and cash equivalents
3,300
- 574
2,726
Amounts recorded for site decontamination are based on the best possible estimate resulting from year-end assessments and take into account valuations for known risks currently being assessed. Amounts recorded for the removal of asbestos from rolling stock correspond to the estimated costs at the end of the equipment life. These costs are determined based on the prices currently invoiced by scrap metal dealers and asbestos removers, which do not include the cost of removing the vehicle in question or the scrap sale price. — Derivative instruments: The Group uses assumptions to measure the fair value of its derivative instruments. The recognition and measurement principles are described in Note 4.16.
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Consolidated Financial Statements
Impairment test results are presented in Note 27.
1-4 MODIFICATIONS TO FISCAL YEAR 2007
SNCF — Financial Report 2008
The approach adopted for the Freight CGU is presented in Note 4.8.
1 Accounting standards base
1-4-3 Intangible assets (see Note 2.2)
1-4-4-4 Unemployment insurance Employee job loss is insured by SNCF itself. This insurance represents an end-of-contract benefit under IAS 19. The outright unemployment allocation enters into this category.
1-4-4 Employee commitments Overall, corrections with respect to employee commitments had the following impacts by benefit category: In € millions Equity at 1 January 2007 Social welfare initiatives (1-4-4-1)
-
- 26
Compensation for work-related injuries (1-4-4-2)
- 38
- 38
Salary bonuses (1-4-4-3)
- 24
- 24
-
- 7
Unemployment insurance (1-4-4-4) Salary maintenance (1-4-4-5) Total impact
- 26
2007 Net Equity at 31 profit December 2007
- 7 - 6
-
- 6
- 39
- 62
- 101
1-4-4-1 Social welfare initiatives The calculation of the commitment with respect to social welfare initiatives has been corrected in order to include the co-payment for affiliates affected by the two most recent levels of listed illness. 1-4-4-2 Compensation for work-related injuries The commitment calculation has been fine-tuned to include the beneficiary category. The compensation paid by SNCF to its agents (before retirement) in the case of an accident represent long-term disability benefits and therefore enter into the other long-term benefits category, whereas in the past they were erroneously classified in the post-employment benefits category with the compensation paid after retirement. Actuarial gains and losses arising from this commitment are recorded directly in profit or loss without applying the corridor method. Benefits paid to active employees after their retirement and to current retirees continue to be treated as post-employment benefits. A portion of the actuarial gains and losses determined in 2007 corresponded to past service costs. 1-4-4-3 Salary bonuses Salary bonuses in 2008 for €24 million should have been recorded in 2007 since they correspond to services rendered over 2007.
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1-4-4-5 Salary maintenance SNCF itself insures illness and maternity temporary disablement (sick leave) for its permanent personnel. The salary maintenance commitment constitutes a short-term benefit under IAS 19. The benefit was recorded for €9 million instead of the €15 million posted at the 2007 opening.
1-4-5 Reclassification regarding reversals of used provision amounts by nature of expenses In accordance with IAS 37, reversals of used provision amounts are classified in the income statement net of the related expenses. In terms of the 2007 comparative income statement vs. the published version, the correction results in a decrease in the net change in provisions for €147 million and an improvement in gross profit breaking down into external charges for €133 million, employee benefits expense for €10 million and taxes and duties other than tax for €5 million. Reversals of unused provision amounts continue to be classified in the income statement under net change in provisions.
1-4-6 Harmonisation of Eurofima accounting policies Eurofima, which is equity-accounted, has reconciled its accounting policies with IFRS. The impacts concern: — The replacement of customer risk provisions with the IFRS impairment loss principles, resulting in a €35 million improvement in 2007 opening equity, Group share. — The measurement of available-for-sale assets at their fair value through equity, resulting in a decrease in 2007 opening equity for €2 million and 2007 closing equity for €4 million. — Other corrections with a positive impact on 2007 opening equity for €4 million.
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1-4-7 Summary of impacts on 2007 comparative balance sheet
Goodwill
509
Intangible assets
409
Property, plant and equipment Non-current financial assets
9,386 260
Deferred tax assets
895
Inventories and work-in-progress
Opening adjustment to fixed assets
Opening adjustment to employee benefits
Opening adjustment to Eurofima
Note 1-4-1
Note 2-2
Note 1-4-4
Note 1-4-6
32,285
409 - 32
20,794
1
9,387 34
294
34
32,288
895 1
- 32
-
613
613
Operating receivables
4,963
-
Operating assets
5,577
-
Current financial assets
6,564
1
Cash and cash equivalents
31/12/2007 2008 comparative information
509
20,826
Investments in associates Non-current assets
Opening adjustment to financial instruments
4,963 -
-
5,576 6,564
3,424
1
Current assets
15,565
1
-
-
-
15,566
TOTAL ASSETS
47,850
2
- 32
-
34
47,854
19
- 19
- 39
34
62
- 62
19
43
- 101
34
7,884
19
43
- 101
34
8,232
Share capital
4,971
Consolidated reserves
1,875
Net profit for the year
1,042
Equity attributable to equity holders of the parent
7,889
Minority interests
3,425
4,971
348
348
Total equity
8,237
Non-current employee benefits
1,062
64
491
7
Non-current provisions Non-current financial liabilities Deferred tax liabilities Non-current liabilities Current employee benefits Current provisions
15,877
1,125 498
17
15,894
99 17,528
1,870 1,042
99 17
-
71
-
17,616
80
80
258
258
Operating payables
13,962
- 13
- 75
30
13,903
Operating liabilities
14,299
- 13
- 75
30
14,240
Current financial liabilities
7,787
- 20
Current liabilities
22,086
- 34
- 75
30
-
22,007
7,766
TOTAL EQUITY AND LIABILITIES
47,850
2
- 32
-
34
47,854
Page 47
SNCF — Financial Report 2008
As published as at 31/12/2007
Consolidated Financial Statements
In € millions
1 Accounting standards base
1-4-8 Summary of impacts on the 2007 comparative income statement In € millions As published as at 31/12/2007
Revenue Purchases and external charges Employee benefits expense Taxes and duties other than income tax Other income and expenses Gross profit Depreciation and amortisation (Charge to) reversal of provisions Current operating profit
Employee obligations
Note 2-2
Note 1-4-4
23,691
Reclassifications
20
- 8,895
- 47
- 829 - 46 2,770
22
- 24
40
1,547
62
118 - 21 1,644
Discontinued Geodis Iberia operations
Note 1-4-5
Note 34-2
- 47
- 47
6
6
31/12/2007 2008 comparative information
-72
23,598
133
59
-10,939
10
22
- 8,909
5
-
- 824
1
- 39
147
11
2,887
1
- 1,176
- 147
1
- 131
-
13
1,580
6 -
- 1,198
Impairment losses
Reclassification of provisions used
- 20
- 11,151
Net proceeds from asset disposals Operating profit
Adjustment to fixed assets
- 6
112 - 21
62
- 47
-
-
13
1,672
Net borrowing costs and other
- 174
1
- 173
Finance cost of employee benefits
- 697
- 16
- 714
Finance costs
- 872
- 15
- 887
Net profit before tax from ordinary activities Share of profit of associates Income tax expense Net profit from ordinary activities Net profit from discontinued operations
772
62
- 62
-
-
13
785
37
37
300
300
1,109
62
- 62
-
-
-
13
1,122
- 13
- 13
Net profit for the year
1,109
62
- 62
-
-
-
1,109
Net profit for the year attributable to equity holders of the parent
1,042
62
- 62
-
-
-
1,042
Net profit for the year attributable to minority interests
Page 48
67
67
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— The minimum age (18 years old) for membership of the special regime is removed, notably to enable the membership of apprentices.
2-1 REFORM OF SPECIAL PENSION REGIMES
— Periods of interruption to or reduction in activity in order to raise children shall be included in the pension calculation, up to a maximum of 1 year for children born or adopted prior to 1 July 2008 and three years for children born or adopted after this date. In addition, increases in the insurance period shall also be granted to women who have given birth and parents raising a handicapped child.
Implementation of common harmonisation principles: — The insurance period necessary to receive the maximum pension percentage is harmonised with that applicable to public sector regimes. It will be gradually increased from 150 to 160 quarters and thereafter will evolve in line with the public sector regime. — Discount: application of a reduction coefficient to the pension when employees do not satisfy the all-regime insurance period condition. This discount will not apply to employees that increase their period of activity in proportion to the increase in the required insurance period. Therefore, the number of discount quarters will be limited to 10 (2.5 years) for an insurance period of 160 quarters. — Indexing: special regime pensions will be indexed to the consumer price index in the same way as public sector pensions from 1 January 2009. — Additional benefits: the additional benefits granted to drivers shall be maintained for employees who join SNCF before 1 January 2009. For employees recruited after 1 January 2009, measures to take account of the specific requirements of driving activities will be defined at company level, through negotiation or by unilateral decision of the employer. Implementation of measures decided during company negotiations: The Decree gives regulatory weighting to the measures decided during company negotiations at round table meetings held in November and December.
— Periods spent in higher education may also be validated up to a maximum of 12 quarters, in return for payment of a purchase contribution. — The possibility for the employer to require employees with 25 years’ service and who have reached the minimum pension entitlement age to retire is withdrawn. — The entitlement to early retirement granted to parents with three children, previously available only to women, is extended to men and, as for public sector workers, this entitlement is now linked to a cessation of activity requirement of at least two months per child. — Handicapped employees with a minimum pension entitlement age of 55 benefit from a reduction in this age of up to 2.5 years, based on the insurance and contribution period. This early retirement is accompanied by an increase in the pension. — Survivor pension rights of men are aligned with those of women. Where the deceased spouse received the minimum pension, the survivor’s pension rate will be increased over three years from 50% to 54%. In addition, an orphan’s pension is created. — Some of the salary measures accompanying the reform of the special regime will be taken into account in the 2008 adjustment. Negotiations will continue in the second half with respect to matters not yet covered. The French government has undertaken to pass the regulatory provisions necessary to their application within the required period.
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SNCF — Financial Report 2008
The Decree of 15 January 2008 on the SNCF employee special pension regime outlines the fundamental principles detailed in the French Government orientation documents and the majority of items concerning pension regulations adopted pursuant to negotiations between SNCF management and trade union bodies. It confirms that the reform took effect on 1 July 2008 and comprises two parts:
Consolidated Financial Statements
2 Major events of the year
2 Major events of the year
Given the transfer of the majority of SNCF pension commitments to the Pension and Provident Fund as at 29 June 2007, and the fact that the aforementioned measures have impacts that are offset by the residual SNCF pension commitments, the pension regime reform (i.e. Decree of 15 January 2008) did not have a material impact on the consolidated financial statements.
2-2 DEFINITIVE ALLOCATION OF ASSETS BETWEEN RFF AND SNCF AND FIXED ASSET REGISTER
2-2-1 Legal framework RFF (Réseau Ferré de France) was created under law 97-135 of 13 February 1997. Article 5 of the law states that the assets constituting the rail infrastructure and the buildings not allocated to the operation of transport services owned by the French State and managed by SNCF are transferred outright to RFF as at 1 January 1997. The article enumerates the assets constituting the rail infrastructure and those assets that are excluded from the transfer. In addition, the law stipulates that these transfers are carried out at the net carrying amount. Decree 97-445 of 5 May 1997 describes the terms and conditions for determining the initial RFF assets and calls for the set-up of a National Commission of Asset Allocation in order to propose solutions to the supervisory ministries regarding differences between the two entities. A report on the allocation of assets between RFF and SNCF was submitted on 2 January 2004.
Based on an analysis of the Transport Economic and Financial Control Department dated 20 February 2008, a final agreement was concluded between RFF and SNCF. The terms of the agreement were reiterated in a letter sent to SNCF by the French State on 7 August 2008 (signed by the Executive Director of Infrastructures, Transport and the Sea, the Executive Director of the French Government Shareholding Agency and the Budget Director).
2-2-2 Accounting treatment The accounting management system for assets and specifically for fixed assets was being set up at the time this report was being drafted. Accordingly, the accounting treatment for the separation of SNCF and RFF was treated globally from an accounting perspective, without an individual allocation per asset. In 2001, the introduction of an accounting management tool for assets enabled individual asset valuations based on the actual technical register at the time, and pending the final division, with legally defined ownership attribution rules for rail assets. The operation consisted in breaking down the overall value of assets for each land and building line item, without impacting the net carrying amount of fixed installations. The arbitration process had a positive impact of €82 million on net profit.
The difficulties encountered in implementing this allocation led to the creation of an arbitration commission that completed its work in the second half of 2006 and submitted its report on 16 October 2006. The report was published in the Official Journal on 29 November 2006.
The correction of these individual values was carried out over the first half of 2008 at the time a quality upgrade of the land and building technical and accounting registers was finalised (Physical and Accounting Inventory project).
Following completion of this allocation, the implementation of the arbitration conclusions remained subject to dispute in certain areas, making it difficult to record the definitive consequences in the SNCF financial statements.
2-2-3 Fixed asset register
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The company has had a fixed asset register representative of all its properties since 2001. At the time of its introduction, the individual asset valuations had been conducted as at 31 December 2000 based on the actual technical register at the
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Furthermore, in the absence of a final arbitration over the transfer of assets between SNCF and RFF, certain assets now acquired by RFF were valued. Since 2005, the company has endeavoured to improve the management of its asset pool and upgrade the quality of its technical and accounting registers (Physical and Accounting Inventory project) for land and buildings. The definitive allocation of assets between RFF and SNCF, which was reflected in the physical transfer of certain assets to RFF and the quality upgrade of the accounting register, resulted in the correction of individual historical values for land and buildings in the 2001 accounting register, without any material modification to the overall value of balance sheet assets. The valuation of investments subsequent to 31 December 2000 was not challenged in connection with the Physical and Accounting Inventory project. Because of corrections to the commissioning dates and the existence of depreciation periods that differed according to the components and modifications of the fixed asset register, the net carrying amount of property, plant and equipment was reduced by €32 million in relation to the amount published in the consolidated financial statements for the year ended
Consolidated Financial Statements
In hindsight and after a first analysis, it appeared that the accounting value allocations used to create the 2001 fixed asset register included omissions or inaccuracies necessitating a quality upgrade for the register.
31 December 2007. The impacts primarily involve the buildings and are described in Note 7. Accordingly, the value of grants recorded in operating payables and reversed at the rate of depreciation and amortisation was reduced by €75 million in relation to the amount published in the consolidated financial statements for the year ended 31 December 2007. In the income statement, depreciation and amortisation charges net of grants decreased by €22 million, and the net change in provisions increased by €40 million in relation to the income statement published in the consolidated financial statements for the year ended 31 December 2007, for a total positive impact of €62 million on net profit. The impact amounts to -€19 million on the 2007 opening net accumulated profit, of which -€88 million with respect to the value of fixed installations and +€69 million with respect to grants.
2-3 TAKEOVER BID FOR GEODIS In connection with the takeover bid for Geodis, closed at the end of July 2008 and followed by a mandatory squeeze-out on 8 August 2008, SNCF Group acquired 4,535,912 Geodis shares at a price of €132.15 per share, ex coupon. At the end of the transaction, SNCF held 100% of the subsidiary. The total cost of the acquisition amounted to €618 million, including €18 million in purchase costs. In accordance with the accounting position adopted by the Group and described in Note 1.2.4.2, an amount of €326 million was deducted from equity as at 31 December 2008.
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SNCF — Financial Report 2008
time, with legally defined ownership attribution rules for rail assets, and the decree creating the initial RFF asset base.
3 BUSINESS COMBINATIONS
In € millions Purchase price
3-1 ACQUISITION OF ROHDE & LIESENFELD
Of which paid in cash
On 3 January 2008, Geodis acquired 100% of Rohde and Liesenfeld (R&L), a German group specialising in freight forwarding and industrial projects, generating goodwill of €66 million after allocation of €8.5 million to the customer base.
Net cash and cash equivalents
Fair value recognised on the date of acquisition
Prior year carrying amount
Intangible assets
9
1
Property, plant and equipment
3
3
1
1
Working capital requirements
18
18
Total assets
31
22
1
1
Deferred tax liabilities
3
-
Net indebtedness
13
13
Total liabilities
16
14
Net assets
14
9
Goodwill
66
Cost of the business combination
80
Goodwill reflects the expected future results. The financing was provided by a €50 million six-year instalment loan secured on 21 December 2007 with Caisse Régionale de Crédit Agricole Mutuel de Paris et d’Ile de France and by a drawdown on the syndicated credit line signed in January 2007.
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- 80
The purchase cost included a price adjustment clause that did not impact the financial statements.
In € millions
Provisions
3 - 80
Cash and cash equivalents acquired with the subsidiaries
The fair value of the identifiable assets and liabilities of the Rohde & Liesenfeld group at the date of acquisition and the corresponding carrying amount just prior to the acquisition are as follows:
Long-term investments
77
Costs attributable to the acquisition
Since 3 January 2008, the Rohde and Liesenfeld contribution to Group net profit has been negative at €6 million, breaking down into the amortisation of the identified intangible assets and software of the customer base for €2 million and consolidation costs for €4 million. The acquisition of Rohde & Liesenfeld contributed to revenue growth in the amount of €236 million and to gross profit for €4 million. The recognition of the combination is definitive. The period for allocating the purchase cost was extended to 3 January 2009 based on IFRS 3.
3-2 ACQUISITION OF ITL At the end of May 2008, SNCF acquired control of the German group ITL via its subsidiary, TLP (Transports Logistique Partenaires), by acquiring 75% of the voting rights of the parent company, ITL Eisenbahngesellschaft mbH. The parent company and its subsidiaries oversee freight rail traffic in Germany, the Czech Republic, and Benelux and, since the end of the second half of 2008, Poland. The main business segments comprise the international transport of containers, chemical and food products, and construction materials. The remaining 25% is the subject of cross call and put options that can be exercised in the future over the same periods and at market value. In the absence of specific IFRS provisions, the acquisition was deemed to cover 100% of the shares in the 2008 consolidated financial statements, the risks and rewards covering the remaining 25% of the shares being considered as virtually fully transferred to SNCF Group. The portion of the purchase cost corresponding to the strike price of the options is treated as a potential remuneration.
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Fair value recognised on the date of acquisition
Prior year carrying amount
6.5
- 0.1
31.3
31.3
Non-current financial assets
-
-
Deferred tax assets
-
-
0.4
0.4
15.3
15.3
Intangible assets Property, plant and equipment
Inventories and work-in-progress Operating receivables Current financial assets Cash and cash equivalents Total assets Provisions Deferred tax liabilities
-
-
0.4
0.4
53.9
47.3
-
-
2.4
-
Non-current financial liabilities
20.1
20.1
Operating payables
15.0
15.0
Current financial liabilities
10.6
10.6
Total liabilities
48.1
45.7
5.8
1.6
Net assets Goodwill
37.4
Cost of the business combination
43.3
The cost of the combination comprises the acquisition price of securities and the costs directly attributable to the combination. The combination partially resulted in a cash outflow. The residual amount, relating to the completion of set objectives and the exercise of crossed options, is recorded in liabilities. The documentation of authorisations to circulate having been obtained at the year-end, the residual payment is conditional to the achievement of future results in 2009 and 2010 considered as probable.
Costs attributable to the acquisition
40.9 2.3
Of which paid in cash
- 27.1
Cash and cash equivalents acquired with the subsidiaries
- 4.5
Net cash and cash equivalents
- 31.5
The goodwill arising from the combination is explained by the commercial synergies made possible with SNCF and the current human capital and know-how of the ITL group. The recognition of the combination remains provisional. The allocation of the combination cost can be allocated until the end of May 2009 pursuant to IFRS 3. Since its acquisition, the ITL group has contributed to SNCF Group revenue for €35 million, to gross profit for €1 million and to net profit for -€2.6 million.
3-3 ACQUISITION OF NTV Nuovo Trasporto Viaggiatori (NTV), the leading Italian private operator for high-speed passenger rail connections, selected Société Nationale des Chemins de fer Français (SNCF) as its exclusive industrial partner in Italy and Europe. Under a partnership agreement, SNCF acquired a 20% minority interest in the share capital of NTV for €84 million. The interest provides SNCF with a significant influence over the company, which is equity-accounted. The values of the assets and liabilities acquired break down as follows as at the acquisition date.
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Consolidated Financial Statements
In € millions
In € millions Purchase price
SNCF — Financial Report 2008
The fair value of the ITL group’s identifiable assets and liabilities at the acquisition date and the corresponding carrying amount just prior to the acquisition are as follows:
3 Business combinations
In € millions Fair value recognised on the date of acquisition Intangible assets
Prior year carrying amount
-
-
614
614
Non-current financial assets
-
-
Deferred tax assets
-
-
Inventories and work-in-progress
-
-
20
20
119
16
Property, plant and equipment
Operating receivables Current financial assets Cash and cash equivalents
64
64
817
714
Provisions
-
-
Deferred tax liabilities
-
-
478
478
87
87
Total assets
Non-current financial liabilities Operating payables Current financial liabilities Total liabilities Net assets acquired (20%)
-
-
565
565
50
30
Goodwill
34
Cost of the business combination
84
Purchase price Costs attributable to the acquisition Of which paid in cash Cash and cash equivalents acquired with the subsidiaries Net cash and cash equivalents
Page 54
In accordance with IAS 28, goodwill is included in the value of the balance sheet equity accounting. The portion of the acquisition price unpaid at the balance sheet date, i.e. €35 million, will be paid in May and November 2009 during subscriptions to the final two tranches of the company’s capital increase. Goodwill reflects expected future results, as the company is still in the start-up phase. The amounts recorded as at 31 December 2008 are provisional and, in accordance with IFRS 3, the Group has a period of 12 months as of the acquisition date to definitively allocate the purchase cost, i.e. until October 2009. The amount of goodwill determined above will be adjusted following the 2009 valuations.
84 - 49 - 49
sncf.com
4-1 BASIS OF CONSOLIDATION
The list of material subsidiaries is presented in Note 37.
Controlled companies over which the Group exercises exclusive control, directly or indirectly, are fully consolidated.
Low-rental housing companies (ESH) The assessment of control exercised over low-rental housing companies (Entreprises Sociales pour l’Habitat, E.S.H.) is a complex issue, that must be approached with pragmatism taking into account the constraints resulting from the extremely strict regulatory framework governing low-rental housing and the focus set by SNCF for its housing policy. It would appear that consolidation is not appropriate as:
Control is presumed to exist where the Group holds 50% or more of the voting rights in an entity (total of existing voting rights and potential voting rights which are immediately exercisable) or where the Group can: — control over half the voting rights pursuant to an agreement with other investors; — manage the financial and operating policy of the entity pursuant to a contract; — appoint or dismiss the majority of the members of the board of directors or an equivalent management body; — control the majority of voting rights at meetings of the board of directors or an equivalent management body. Companies over which the Group exercises joint control are proportionately consolidated, in accordance with the percentage interest held by the Group. Joint control is the sharing of control over an entity operated jointly by a limited number of partners or shareholders, such that financing and operating policies are determined by mutual agreement. Entities in which the Group exercises significant influence over financial and operating policies, but which it does not control, are equity accounted. Significant influence is presumed to exist where the Group holds an interest of 20% or more. The results of companies acquired or disposed of during the financial year are included in the consolidated income statement of the Group from the date control is acquired or up to the date of transfer of control, respectively. The financial statements of fully and proportionately consolidated companies and equity associates are restated to comply with Group accounting policies. All material transactions between consolidated companies and internal profits and losses are eliminated on consolidation.
Consolidated Financial Statements
The financial statements of the companies included in the scope of consolidation are drawn up to 31 December 2008.
— while SNCF exercises influence over certain aspects of management of the E.S.H., this influence may not be considered to represent control, — the SNCF Group decision to own the four E.S.H. concerned is primarily based on institutional and general interest arguments and not on financial and asset ownership considerations, whether direct or indirect. Shares in the E.S.H. companies are therefore retained in balance sheet assets at purchase cost and classified in available-forsale financial assets. The principal account headings of these companies are disclosed in Note 10.
4-2 BUSINESS COMBINATIONS Pursuant to the purchase method, the identifiable assets and liabilities of the acquired company that meet IFRS recognition criteria are recognised at their fair value at the acquisition date, except for assets classified as held for sale, which are measured at fair value less costs to sell. Only identifiable liabilities meeting the recognition criteria of a liability or contingent liability in the acquired company are recognised at the acquisition date for the purpose of allocating the cost of the business combination. Therefore, a restructuring liability of the acquired company is only recognised for the purpose of allocating the business combination cost if, at the date of the acquisition, the acquired entity has a current obligation to perform this restructuring.
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SNCF — Financial Report 2008
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The difference between the purchase cost and the Group’s interest in net assets acquired, at fair value, is recognised as goodwill. The purchase costs include costs directly attributable to the acquisition. Adjustments to the fair value of assets and liabilities acquired as part of a business combination initially recognised based on provisional values (due to ongoing external valuation procedures or outstanding additional analyses), are recognised as retrospective adjustments to goodwill if they arise in the 12 months following the acquisition date. After this period, any adjustments are recognised directly in profit or loss unless they represent corrections of an error. Minority interests in the acquired company are measured at the minority’s proportion of the net fair value of assets, liabilities and contingent liabilities recognised.
4-3 TRANSLATION OF THE FINANCIAL STATEMENTS OF FOREIGN SUBSIDIARIES The financial statements of foreign subsidiaries whose functional currency is not the euro are translated into euros using the period-end exchange rate method: — balance sheet accounts are translated using exchange rates prevailing on the balance sheet date, — income statement items are translated at the average annual rate of exchange, — translation differences arising on the retranslation of opening balance sheet items (movement between opening and closing exchange rates) and income statement items (movement between average and closing exchange rates) are taken to Translation differences in consolidated equity.
4-4 TRANSLATION OF FOREIGN CURRENCY TRANSACTIONS Foreign currency-denominated transactions are translated by the subsidiary into its functional currency at the exchange rate prevailing at the transaction date. Monetary items in the balance sheet are retranslated at the closing exchange rate at each balance sheet date, and the resulting translation differences are recorded in profit or loss or as a separate equity component if they relate to hedging transactions qualifying as net investment or cash flow hedges under IFRS.
4-5 GOODWILL Goodwill represents the difference between the cost of a business combination and the Group’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the acquired company at the date of acquisition of control. Goodwill is recognised at cost, less any accumulated impairment losses. Corrections or adjustments may be made to the fair value of assets and liabilities acquired during the 12 months following the acquisition, resulting in a retrospective correction of goodwill. Goodwill is not amortised but is subject to impairment tests when there is an indication of impairment and at least once a year. Negative goodwill is recognised immediately in operating profit. Capital gains or losses on the disposal of an investment take into account the net carrying amount of the related goodwill.
Likewise, foreign exchange differences arising from the translation of receivables and payables that are part of the net investment in a foreign subsidiary are also included in Translation differences in consolidated equity. They are recorded in profit or loss upon removal of the net investment.
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Intangible assets primarily comprise the customer base, leasehold rights, licences and software. They are recorded at historical cost or, where necessary, at fair value on the date of acquisition if such assets are acquired in connection with a business combination.
Property, plant and equipment owned outright are recorded in consolidated assets at purchase cost. Internally produced assets are recorded at production cost. Property, plant and equipment acquired as part of a business combination are recorded at their fair value on entry into the consolidation scope.
Where an intangible asset has a finite life, it is amortised on a straight-line basis over its period of use, of between 1 and 5 years.
Production cost comprises the cost of raw materials and labour used to manufacture the assets, including that of purchased spare parts. Interest costs are not capitalised. Property, plant and equipment are not subject to periodic revaluation.
Where an intangible asset has an indefinite life, it is not amortised but is subject to impairment tests at least once a year.
4-7 PROPERTY, PLANT AND EQUIPMENT The property, plant and equipment of the Group include assets made available by the French State, assets owned outright and assets purchased under finance lease agreements. The French Orientation Law on Domestic Transport (LOTI) lays down the terms of possession of assets entrusted to SNCF. On the creation of the industrial and commercial public institution SNCF on 1 January 1983, the real estate assets previously given under concession to the semi-public limited liability company which it succeeded were appropriated to it. These assets made available by the French State, without transfer of title, are recorded in the Group balance sheet to enable an economic assessment of Group performance. Subject to legal provisions applicable to infrastructures deemed of general interest or public utility, the parent company exercises full management powers over all real estate assets entrusted to it or purchased by it. Real estate assets held by the public institution, no longer used in the performance of its activities or which are part of its private domain, may be allocated to another purpose or sold by the public institution for profit.
Maintenance and repair expenses are recognised as follows: — rolling stock: - current maintenance expenses borne during the useful life of equipment (repair work on faulty spare parts and replacement of unusable and missing parts) are recorded as operating expenses; - expenses under multi-year major overhaul programmes are capitalised as a separate overhaul component and depreciated; as a separate overhaul component and depreciated; - overhauls performed at the end of the useful life of a component, together with refurbishment and transformation costs, are capitalised in assets where they extend the useful life. — fixed installations: - current maintenance and repair expenses (technical inspections, maintenance contracts, etc.) are recorded as operating expenses; - expenses under multi-year major building maintenance programmes are capitalised via the partial or total replacement of each component concerned. As with the dismantling obligations, asbestos removal obligations for rolling stock are offset against an increase in the value of the equipment in balance sheet assets (see Note 4.19.1). Property, plant and equipment are depreciated over their estimated useful life mainly on a straight-line or on a declining balance basis over 4 years for IT equipment.
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Consolidated Financial Statements
4-7-1 Owned assets
SNCF — Financial Report 2008
4-6 INTANGIBLE ASSETS
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4-7-2 Depreciation periods Property, plant and equipment are depreciated over the following periods: Land development
20 years
Complex constructions (stations, administrative buildings, etc.) – Building shell
50 years
– Enclosure
25 years
– Light work
25 years
– Fixtures and fittings
15 years
– Technical work
15 years
Simple constructions (workshops, warehouses, etc.) – Building shell, light work and enclosures
30 years
– Fixtures and fittings
15 years
– Technical work Plant and equipment Cars
15 years 5 to 20 years 5 years
Rail transport equipment: – TGV: Structure
30 years
Interior fittings
15 years
Overhaul work
15 years
– Electric and diesel locomotives: Structure
30 years
Overhaul work
15 years
– Motorised carriages: Structure
30 years
Interior fittings
15 years
Overhaul work
15 years
– Passenger carriages: Structure
15 years
Overhaul work
10 to 15 years
Ships Other property, plant and equipment
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have suffered a significant loss in value. If any such indication exists, an impairment test is performed. Goodwill and indefinite-life intangible assets are subject to an impairment test each year and whenever there is an indication of loss in value. When performing impairment tests, goodwill is allocated to the Cash-Generating Unit (CGU) or group of CGUs that are expected to benefit from the synergies of the combination and representing the lowest level at which the goodwill is monitored for internal management purposes, regardless of whether other assets and liabilities of the acquired entity are allocated to these CGUs or groups of CGUs. Tangible and intangible assets are subject to impairment when events or circumstances during the period (obsolescence, physical deterioration, significant changes in the method of utilisation, performances falling short of forecasts, decline in revenues, other external indicators, etc.), indicate that a loss in value may have occurred and that the recoverable amount may be less than the net carrying amount. Impairment tests consist of comparing the net carrying amount of an asset or goodwill balance with its recoverable amount, equal to the higher of the fair value less costs to sell and the value in use. The recoverable amount of an asset is determined individually, unless the assets does not generate cash flows independent of those of other assets or groups of asset. In such cases, which encompass the majority of tangible and intangible assets of SNCF and goodwill balances, the Group determines the recoverable amount of the group of assets (cash-generating unit – CGU) to which the asset tested belongs.
30 years
Interior fittings – Freight cars
4-8 IMPAIRMENT OF GOODWILL AND INTANGIBLE AND TANGIBLE ASSETS
30 years ± 20 % 25 years 3 to 5 years
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— Beyond this timeframe, the flows are extrapolated by applying a perpetual growth rate that is close to the long-term inflation rate expected by the Group in France, subject to the expected useful life of the assets tested or the indefinite life for goodwill; — Flows are discounted at a rate appropriate to the activity sector. Impairment losses recorded on goodwill cannot be reversed. With respect to the Freight CGU, the fleet of rolling stock was impaired at a flat rate as was the case in December 2007 (see Note 28.2).
4-9 LONG-TERM ASSETS CLASSIFIED AS HELD FOR SALE
Leased assets are recorded as purchases financed by loan when the contract terms and conditions correspond to finance lease arrangements. Finance lease agreements are contracts whereby the lessor transfers to the lessee the right to use an asset for a given period in exchange for payment and the lessor transfers all benefits and risks inherent to ownership of the asset. The appraisal criteria applied to these agreements are based on the following: — the agreement provides for the mandatory transfer of ownership at the end of the lease period,
Consolidated Financial Statements
— The cash flows are those determined in business plans, drawn up for periods of 3 years and validated by the Group;
4-10 FINANCE LEASE TRANSACTIONS
— the agreement contains a purchase option and the conditions of this option are such that it is reasonably certain, at the inception of the lease, that ownership will be transferred, — the lease term is for the major part of the estimated economic life of the leased asset, — the present value of the minimum lease payments under the agreement is close to the fair value of the leased asset, — the leased assets are of such a specific nature that only the lessee can use them without significant modification.
In accordance with IFRS 5, Non-current assets held for sale and discontinued operations:
The assets concerned are recorded in assets at the lower of the discounted present value of the minimum lease payments and fair value and depreciated over the same period as equivalent assets owned outright or made available.
— non-current assets of controlled entities held for sale are presented on a separate line of the balance sheet at the lower of their net carrying amount and fair value less costs to sell. Any liabilities relating to these assets or operations are also presented separately in liabilities.
Lease agreements not having the characteristics of finance leases are recorded as operating leases and only the lease instalments are recorded in profit or loss.
— the impact on profit or loss of the period of all discontinued operations is presented on a separate line of the income statement, after ordinary activities.
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SNCF — Financial Report 2008
The value in use corresponds to the value of the future economic benefits expected from the asset’s use or removal. It is assessed based on discounted future cash flows determined according to economic assumptions and projected operating conditions adopted by SNCF management:
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Sale and lease-back transactions and equivalent — Sale and lease-back transactions In the event of an asset sale coupled with a finance lease arrangement, the transaction is recorded in accordance with the above principles. Any capital gain realised on disposal is deferred and amortised over the lease term. — Other transactions In addition, certain financial arrangements concern existing finance lease agreements. As the existing equipment financing structure is not altered and the proceeds of such transactions are definitively earned, they are recognised in finance costs on signature of the agreement (see Note 32.1).
4-11 FINANCIAL ASSETS Financial assets include investments in companies that are neither controlled nor subject to significant influence, loans and financial receivables, guarantee deposits paid in respect of derivative instruments (cash collateral) and the fair value of derivative instruments.
Investments in associates and other investments are measured at fair value unless this cannot be reliably determined, in which case they are retained in the balance sheet at purchase cost. Fair value is determined based on the financial criteria most appropriate to the specific situation of each company. The most commonly adopted criteria are the market value or the share in equity held and the profitability outlook if the market value cannot be obtained. Fair value gains and losses on available-for-sale assets are recorded directly in equity and released to profit or loss on the sale of the asset. In the event of a long-term fall in the fair value below the net carrying amount, an impairment loss is recognised. This is recorded in an impairment loss account through profit or loss and cannot be reversed if it concerns shares.
4-11-2 Assets at fair value through profit or loss (trading assets) Trading assets consist of assets that the Group intends to sell in the near term in order to realise a capital gain and assets recorded in this category by designation.
“Standard” purchases are recorded at the settlement date. Financial assets are presented in non-current assets, unless they mature in less than 12 months at the balance sheet date, in which case they are classified in current assets or cash equivalents as appropriate. The fair value of listed financial instruments is determined by reference to the stock market price at the balance sheet date. The fair value of unlisted financial instruments for which there exists listed instruments of a similar nature and maturity, is determined by reference to the stock market price of such instruments. The fair value of other unlisted instruments is determined using valuation techniques such as the revalued net asset method, discounted cash flows or option valuation models. The models used take into account assumptions based on market data.
4-11-1 Available-for-sale assets Available-for-sale assets include Group investments in the share capital of unconsolidated companies that the Group does not hold for short-term profit and investments that do not qualify for inclusion in other asset categories.
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In particular, parent company cash balances are globally managed pursuant to a general market risk management framework approved by the Board of Directors and combining investments in negotiable debt instruments and French moneymarket mutual funds (UCITS). Management performance is measured, in the same way as UCITS, by reference to EONIA (Euro Overnight Index Average). As UCITS are measured at net asset value, which takes into account portfolio fair value and in order to achieve overall consistency, investments with an initial maturity of more than three months are recorded in this category by designation. Assets are valued at fair value at the balance sheet date and fair value gains and losses are recorded in finance costs.
4-11-3 Cash and cash equivalents Cash and cash equivalents consist of immediately available liquid assets (cash) and short-term investments, easily converted into a known amount of cash with an initial maturity of less than or equal to three months and which are exposed to a negligible risk of change in value. In particular, investments in French mutual funds (SICAV) and monetary funds with marginal sensitivity are classified in this category and notably French mutual funds and monetary funds classified by the French Stock
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This heading includes the RFF receivable, the Public Debt Fund receivable, employee-profit sharing receivables, “construction assistance” loans and other loans and guarantee deposits (including cash collateral assets). These financial instruments are initially valued at fair value and then subsequently at amortised cost based on the effective interest rate (EIR).
4-11-4-2 Public debt fund receivable In accordance with the corporate plan (“contrat de plan”) signed by the French State and SNCF in 1990, a Special Debt Account was set up on 1 January 1991 in order to isolate a portion of SNCF’s debt. With a view to the preparation of SNCF’s opening IFRS balance sheet as at 1 January 2006, the French State and SNCF confirmed the current practice at this date regarding the financing and management of the debt transferred to the Special Debt Account. Confirmation of the French State’s commitment to contribute to the amortisation and servicing of the debt led to the recognition of a receivable in respect of expected payments from the French State.
These instruments are presented in non-current assets, except for assets maturing in less than 12 months at the balance sheet date, which are recorded in current assets.
— The receivable is initially recorded, at the transfer date, at the fair value of debts transferred and subsequently at amortised cost.
4-11-4-1 Réseau Ferré de France receivable In the law of 13 February 1997 that led to the creation of Réseau Ferré de France (RFF), Article 7 provides for the transfer of a €20.5 billion liability to Réseau Ferré de France in consideration of the transfer of infrastructure assets as at 1 January 1997.
— Derivatives instruments relating to the receivable are recorded at fair value, with gains and losses on remeasurement recognised in profit or loss.
4-11-4 Loans and receivables issued
This transfer resulted in the recognition of an RFF receivable in the Company’s assets, with no change in liabilities. The RFF receivable was constructed line by line so as to present a maturity, currency and interest rate structure identical in all respects to that of the Company’s liability, which totalled €30.3 billion as at 31 December 1996, after swap contracts. The 1996 year-end exchange rate was the initial rate used for the foreign currencies included in the receivable. Deferred income and expenses corresponding to issue premiums and costs or swap contract income or expenses were also transferred, resulting in a cash payment. This payment was recognised in the Company financial statements as deferred income, which is released to the income statement according to the maturities of the corresponding transactions. The RFF receivable is embodied in an agreement signed by the two companies.
— Fair value gains and losses on contributions and balancing payments are recognised in profit or loss. — The following transactions were performed in December 2007, in order to find a long-term and definitive solution to the future of these commitments and the financing of Special Debt Account debts: 1. On 31 December 2007, on the entry into effect of the 2007 amended Finance Act and in accordance with Article 82 of this Act, mirror contracts were set-up between SNCF and the Public Debt Fund: – signature of a loan agreement between SNCF and the Public Debt Fund, exactly reflecting the amount of the Special Debt Account debt and its financial terms and conditions and also covering the related derivates. – simultaneous signature of a mirror agreement, under which the Public Debt Fund provides an identical loan to SNCF under the same terms and conditions. On completion of these transactions, SNCF holds both a receivable and payable vis-à-vis the Public Debt Fund of the same amount and repayable pursuant to identical terms and conditions, which reflect commitments to third-parties ringfenced in the Special Debt Account.
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Consolidated Financial Statements
Current bank facilities classified in current financial liabilities are included in cash and cash equivalents in the Statement of Cash Flows.
The receivable is recorded at amortised cost and, where appropriate, is subject to fair value or cash flow hedge accounting.
SNCF — Financial Report 2008
Market Authority (AMF) in the Euro monetary category or which have a sensitivity of less than 0.25.
4 Acccounting policies
2. Following implementation of these mirror contracts, the French State, as authorised by Article 82 of the 2007 amended Finance Act and pursuant to the Order of 28 December 2007, replaced SNCF with regard to the repayment of SNCF’s debt to the Public Debt Fund. 3. Due to the transfer of this commitment to the French State and the change in related debtor, SNCF is now free of all obligations pursuant to the aforementioned contract with the Public Debt Fund. In return, the financial commitments of the French State under the Special Debt Account were cleared and, in order to achieve neutrality for the French State and SNCF, SNCF made a payment equal to the present value of contributions and balancing payments due under the Special Debt Account, net of the balance on the French State’s cash current account in the books of SNCF. This amount was determined jointly by SNCF and the French State at €640 million. 4. The Special Debt Account was closed on completion of these transactions. The method of accounting for the receivable is unchanged.
4-13 OPERATING RECEIVABLES
4-11-5 Special debt account liability
The Group uses the Black & Scholes model for valuation purposes.
The Special Debt Account liability is recorded in liabilities in the SNCF balance sheet, with an offsetting receivable representing the commitment of the French State, transferred in December 2007 to the Public Debt Fund (see Note 4.11.4.2). This debt was initially measured at fair value and is subsequently measured at amortised cost using the effective interest rate. Derivative instruments hedging this debt are recorded in the balance sheet at fair value through profit or loss; hedge accounting is not applied.
4-12 INVENTORIES Inventories are valued at the lower of cost price and net realizable value. Cost price is equal to acquisition or production cost. Production cost includes both direct and indirect production expenses. Cost price is calculated using the weighted average cost method. Inventories are written-down based on the turnover, nature, age and useful life of items.
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Receivables are recorded at nominal value on issue, except for receivables with a maturity of more than one year, which are discounted to present value where the impact of discounting is material. Impairment is recognised when there is a potential risk of non-recovery. This impairment is determined based on an individual or statistical appraisal of non-recovery risk using historical data.
4-14 SHARE-BASED PAYMENTS Certain sub-groups grant shares or share subscription options to employees. Pursuant to IFRS 2, Share-Based Payment, share subscription and purchase option plans, share offers reserved for employees and the grant of free shares in subsidiaries to Group employees are valued at the grant date.
The fair value of services received in return for the grant of these options is assessed based on the fair value of such options at the grant date and the number of options expected to be exercised at the end of the vesting period. The total fair value so determined is recognised on a straight-line basis over the vesting period of the plan concerned. This value is recorded in Employee benefits expense, via a charge recorded directly in equity for equity-settled plans and in employee-related liabilities for cash-settled plans.
4-15 FINANCIAL LIABILITIES Financial liabilities include borrowings, other financing and bank overdrafts, guarantee deposits received in respect of derivative instruments (cash collateral liabilities) and the negative fair value of derivative instruments. This heading also includes borrowings allocated to the Special Debt Account (see Note 4.11.5). These instruments are included in non-current liabilities, except for liabilities maturing in less than 12 months at the balance sheet date, which are recorded in current liabilities.
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The option to record liabilities at fair value through profit or loss is used when the liabilities in question comprise an embedded derivative significantly modifying the cash flows which would otherwise result from the contract or where the Group is unable to value the embedded derivative separately. This option only concerns liabilities of the parent company, an Industrial and Commercial Public Institution. The Group considers that exposure to credit risk does not give rise to any change in value. The fair value of financial liabilities is determined using measurement techniques such as option valuation models or the discounted cash flow method. The models take into account assumptions based on market data at the balance sheet date.
4-16 DERIVATIVE INSTRUMENTS AND HEDGE ACCOUNTING
The Group trades on the derivatives market to hedge floatingrate receivables and payables and receipts and payments relating to its commercial activities. When IAS 39 criteria are met, the derivatives instruments are designated as hedges and fair value gains and losses are recorded directly in equity in a specific account, except for the ineffective portion of the hedge, which is recorded in profit or loss. When the hedged flows impact profit or loss, the amounts deferred in equity are released to profit or loss to match the flows of the hedged item.
Consolidated Financial Statements
Certain borrowings are subject to fair value or cash flow hedge accounting. In addition, certain borrowings with detachable embedded derivatives recorded using hedge accounting are recorded at fair value (“fair value” option). Fair value gains and losses are recorded in finance costs.
4-16-2 Cash flow hedge
4-16-3 Fair value hedge The Group also uses derivative instruments to hedge the fair value of fixed-rate receivables and payables denominated in euro and foreign currencies. When IAS 39 criteria are met, the derivative instruments are designated as hedges and: — fair value gains and losses arising on the derivative are recorded in profit or loss of the period,
Derivative instruments traded by the Group to manage currency, interest rate and commodity risks are recorded in the balance sheet at their fair value at the balance sheet date.
— the hedged item is remeasured to fair value at the balance sheet date, for the hedged portion of the risk, through profit or loss.
4-16-1 General case
As such, fair value gains and losses on the derivative and the hedged item cancel out in profit or loss, except for the ineffective potion of the hedge.
Derivative instruments are initially measured at fair value and are remeasured to fair value at subsequent reporting dates. Fair value is determined using measurement techniques such as option valuation models or the discounted cash flow method. The models take into account assumptions based on market data at the balance sheet date. Changes in the fair value of derivative financial instruments that are not associated with operations and not part of a designated hedging relationship as defined by IAS 39 are recorded in profit or loss in finance costs.
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SNCF — Financial Report 2008
Borrowings and other financial liabilities are initially measured at fair value plus transaction costs and subsequently at amortised cost determined using the effective interest rate.
4 Acccounting policies
4-17 INVESTMENT GRANTS The Group receives investment grants in the form of third-party asset financing, primarily received from regional authorities. Investment grants are recorded in operating payables and released to operating income (reduction in the depreciation charge) over the estimated useful life of the assets to which they relate.
4-18 DEFERRED TAX The Group recognises, for each tax entity, deferred tax on all timing differences between the tax and book values of assets and liabilities in the consolidated balance sheet. Deferred tax is recorded using the liability method, applying the most recently voted tax rate at the year-end applicable to the period in which the timing differences are expected to reverse.
— taxable profits will exist against which this temporary difference can be offset. Deferred tax assets and liabilities are not discounted and are recorded in non-current items.
4-19 PROVISIONS Provisions are recorded when, at the balance sheet date, the Group has a present obligation to a third party as a result of a past event and the settlement of this obligation will require an outflow of Company resources. This obligation may be legal, regulatory or contractual and may result from Group practice or external commitments that create valid expectations in third parties that the Group will assume certain responsibilities.
Deferred tax assets in respect of timing differences and tax losses or credits carried forward are recognised when recovery is deemed probable. The Group’s ability to recover these tax assets is assessed through an analysis of its business plan and the uncertainties presented by the economy and Group markets.
The estimated amount of the provision reflects the outflow of resources that is likely to be necessary to settle the Group’s obligation. If a reliable estimate of this amount cannot be made, a provision is not recorded and disclosure is provided in the notes to the financial statements.
A deferred tax liability is recognised in respect of investments in subsidiaries, joint ventures and equity associates, on all timing differences between the book and tax values of shares, unless:
A contingent liability is a possible obligation that arises from past events whose existence will only be confirmed by the occurrence of uncertain future events not wholly within the control of the entity, or a probable obligation where it is not probable that an outflow of resources will be required. Except for contingent liabilities recognised as part of a business combination, contingent liabilities are not recorded. Disclosure is provided in the notes to the financial statements.
— the group controls the date at which the timing difference will reverse (e.g. through a dividend distribution or the sale of an investment); and — it is probable that this difference will not reverse in the foreseeable future.
Provisions are discounted where the impact of discounting is material.
Therefore, a deferred tax liability is only recognised in respect of wholly or proportionately consolidated companies in the amount of any withholding tax due on dividend distributions planned by the Group. A deferred tax asset is only recognised to the extent that it is probable that: — the temporary difference will reverse in the foreseeable future; and
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The Group provides for environmental risks when the realisation of the risk is deemed probable. This provision covers the costs of environmental protection and site restoration and clean-up. It specifically includes a contingency provision for asbestos lawsuits filed against the Group.
The cost of restructuring measures is provided in full in the year in when such measures are decided, in principle, and announced in sufficient detail prior to the period-end closing in order to create an expectation that they will be implemented. Restructuring costs primarily consist of employee departure costs and the cost of writing off non-current assets, inventory and other assets.
SNCF has set up an environmental management team in response to the enactment in French law of Directive 2004/35 of 21 April 2004 regarding so-called “polluter-payer” environmental liability. One of the team’s objectives is to shed light on the impacts with respect to the Group’s activities, primarily in terms of storage and distribution installations for fuel, water disposal, waste, etc. The related assessments are recorded on their completion. The impacts are presented in Note 18. The Group classifies its rolling stock asbestos removal obligations as provisions for dismantlement. Any increase in the provision is offset by an increase in the value of the equipment on the balance sheet for non-depreciated equipment and in profit or loss for equipment at the end of its useful life. An impairment loss is recognised when the carrying amount of the asset exceeds its recoverable amount. The cost of dismantlement is amortised over the asset’s remaining useful life. Should there be a decrease in the estimated probable outflow of resources, the provision is reversed against the corresponding asset in the balance sheet and in profit or loss for the portion exceeding the net carrying amount of this asset. The provision is gradually extinguished in profit or loss as the asbestos removal is completed.
4-19-4 Provisions for onerous contracts Provisions are recognised for long-term contracts when they become onerous, which is to say when the inevitable costs required to satisfy the contractual obligations exceed the future economic benefits expected from these contracts. Provisions are valued based on inevitable costs, which reflect the net contract exit cost, which is to say the lower of the contract performance cost or any other compensation or penalty arising from failure of performance.
4-19-2 Provisions for disputes and litigation The Group is involved in a certain number of disputes and litigation arising in the normal course of its activities and notably: — performance bonds received from companies supplying construction work, — guarantees granted to clients in the freight transportation sector covering incidents arising during transport. Such disputes and litigation are provided based on an assessment of the related risk. Up to and including 1999, the parent company self-insured the majority of risks associated with its activities. In 2000, the parent company took out a number of insurance policies providing coverage beyond an initial level covered by self-insurance.
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Consolidated Financial Statements
4-19-3 Restructuring provisions
SNCF — Financial Report 2008
4-19-1 Provisions for environmental risks
4 Acccounting policies
4-20 Employee benefits In accordance with the laws and practices in the countries in which it operates, the Group participates in pension, early retirement, retirement benefit and health insurance schemes for retirees. In France, the main employee benefit schemes are the special regime for employees with SNCF qualifying status (see Note 17 for detailed specifications) and, for subsidiaries, retirement termination payments and long-service awards. Outside France, the main companies offering defined-benefit schemes are the United Kingdom, Italy, Germany and the Netherlands. For the basic schemes and other defined-contribution schemes, the Group expenses contributions payable when they are due. No provisions are recognised as the Group does not have any obligation beyond the contributions paid. In the case of defined-benefit schemes, when benefits are covered by third parties (insurance contracts, provident organisations unrelated to the Group) and the Group has no legal or implicit obligation to cover any losses relating to past services over the period or prior periods, no obligation is recognised and the insurance/provident premiums paid are recognised as payments to a defined contribution scheme, the obligation to provide benefits to employees being the sole responsibility of the third party organisation. In the other cases, the obligations are subject to actuarial valuations and provisions are recorded on the balance sheet upon vesting of benefit rights by employees. The actuarial liability (or present value of the obligation with respect to defined benefits) enabling the recognition of obligations is determined according to the projected unit credit actuarial method, which stipulates that each period of service gives rise to an additional unit of benefit and measures each unit separately to determine the final obligation. These calculations include assumptions concerning the discount rate, mortality, employee turnover and expected future salary levels.
The portion of the net charge corresponding to service costs is recorded in operating profit (including actuarial gains and losses and past service costs amortised) and the portion of the net charge corresponding to the interest expense is recorded in finance costs (net of the expected return on plan assets if any). Past service costs are expensed on a straight-line basis over the average remaining vesting period of rights, unless such rights are immediately vested, in which the case past service costs are immediately recorded in profit or loss. For other long-term defined benefit schemes (long-service awards, unemployment, salary maintenance, gradual cessation of activity, etc.), actuarial gains and losses and any past service costs are immediately and fully recognised in profit or loss.
4-21 REVENUE RECOGNITION
4-21-1 Transport activities (Passenger, Freight) Revenue is recognised based on the effective transportation of passengers and freight. Revenue recognised in the systems on the issue of a passenger transport ticket is adjusted at the period-end for tickets issued but not used, which are recorded in Deferred income.
4-21-2 Contributions of the French stated and organising authorities These contributions comprise price subsidies covering socially motivated prices introduced by the French State and contributions remunerating global services within a contractual framework or specific services. They are recorded under Revenue.
The so-called “corridor” method is applied to determine the provision to be recognised with respect to post-employment benefit schemes. Hence, the amount of actuarial gains and losses exceeding 10% of the greater of the present value of the defined benefits obligation and the fair value of plan assets is adopted for recognition. The portion recognised equals this amount divided by the expected average remaining working lives of participating employees.
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4-21-4 Maintenance Maintenance income and income from the operation of the rail network is recognised in accordance with the multi-year contract negotiated with the network owner.
4-22 RESEARCH COSTS Research costs are expensed in the year incurred.
4-23 BUSINESS AND GEOGRAPHICAL SEGMENT REPORTING
4-23-1 Business segments In addition to its core businesses of passenger and freight rail transport and the delegated management of the infrastructure, SNCF has developed a number of activities performed by subsidiaries. These primarily enrich, complement and extend the activities of the parent company in four operating divisions: — Passenger France and Europe,
The Group presents the required balance sheet and income statement indicators by business. The accounting methods adopted by each operating division are identical to those used in the preparation of the consolidated financial statements. The information presented for each division includes transactions between divisions.
4-23-3 Inter-division transactions
Consolidated Financial Statements
Sub-contracting and project management work performed by the Group over a number of periods is recognised based on contractual data and the economic stage of completion.
4-23-2 Segment indicators
All transactions between operating divisions are eliminated in the presentation of the Group’s consolidated financial statements.
4-23-4 Determination of geographical segments As activities are essentially carried out in France and to a lesser extent in Europe, the following geographical segments are presented: — France, — Europe excluding France, — Rest of the world. The indicators presented for Europe and the Rest of the world include activities exercised outside France and export activities performed by French companies of the Group.
— Local Transport, — Transport and Logistics, — Infrastructure and Engineering, and an operations division (Common Operations and Investments). This latter branch notably encompasses the holding company activities of SNCF Participations and the service provider activities of the parent company (Traction, Equipment and Transversal services) and certain operating subsidiaries.
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4-21-3 Engineering and contracting services performed by the group
4 Acccounting policies
4-24 INCOME STATEMENT ANALYTICAL BALANCES
4-24-3 Operating profit
SNCF Group has elected to present its Income Statement by nature.
Transactions of an unusual nature, either due to their frequency or amount, are recorded separately below current operating profit. This presentation has been adopted in order to provide users with as reliable an overview as possible of the recurring performance of the Group.
Several analytical balances are identified in order to provide users of the financial statements with information on the component items making up Group net profit.
The transactions concerned are limited in number and comprise:
4-24-1 Gross profit
— impairment losses,
Gross profit is equal to revenue plus incidental income, net of expenses directly relating to operating activities and primarily purchases, subcontracting costs, other external services, employee costs, taxes and duties other than income tax, asset disposals related to the activity, and miscellaneous other items.
— real estate disposals and asset disposals not directly related to the activity,
All charges to employee-related provisions and, in particular, charges to pension provisions (excluding the finance cost) are included in Employee benefits expense.
4-24-2 Current operating profit In addition to gross profit, current operating profit includes the majority of non-cash items (depreciation and amortisation, charges to provisions, etc.) and miscellaneous other items not directly attributable to another Income Statement account.
— disposals of subsidiaries not representing a discontinued operation as defined by IFRS 5.
4-24-4 Finance costs Finance costs presented by the Group reflect the impact of financing transactions. Finance costs comprise two components: – net borrowing costs, consisting of interest paid on Group borrowings, proceeds from the RFF receivable and the Public Debt Fund receivable and interest received on available cash balances. These items are presented after hedging transactions and include fair value gains and losses on derivative instruments not meeting IFRS hedge accounting criteria; – the finance cost of employee benefits, representing the reverse discounting of the provision for long-term post-employment benefits, net of interest relating to the expected return on plan assets.
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5 Goodwill Gross value
Impairment
Net value
As at 01/01/2007
251
- 23
229
Additions / increases
360
-
360
-
- 2
- 2
- 1
-
Impairment losses Removals / decreases Reclassifications (1)
- 69
- 1 - 69
Translation
- 3
-
Other changes in consolidation scope
- 6
1
- 5
As at 31/12/2007
532
- 23
509
As at 01/01/2008
532
- 23
509
Additions / increases
117
-
117
-
-
-
- 1
1
-
Impairment losses Removals / decreases
- 3
Translation
4
-
3
Other changes in consolidation scope
2
1
3
654
- 21
633
As at 31/12/2008
(1) Financière Kéos share subscription warrants purchased in 2006 and not exercised were reclassified in Investments in associates in 2007.
Acquisitions in 2008 concern business combinations (see Note 3). The main goodwill balances recorded by the Group at the balance sheet date are as follows: 31/12/2008
31/12/2007
Change
Geodis
In € millions
536
451
85
of which Wilson
359
359
-
of which Rohde & Liesenfeld
66
66
Ermewa
39
39
-1
ITL
37
-
37
Other
20
18
2
Total
633
509
124
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SNCF — Financial Report 2008
In € millions
Consolidated Financial Statements
Movements in goodwill during the period break down as follows:
6 Intangible assets Group intangible assets mainly comprise purchased software licences, software developed in-house, leasehold rights and, since 2007, customer portfolios and trade names acquired with control of Wilson. Movements in intangible assets break down as follows: In € millions 1/01/2007
Acquisitions / Charges
Disposals / Reversals
Changes in consolidation scope
Other changes
294
74
47
1
31/12/2007
- 11
11
10
377
- 2
124
- 3
167
Gross carrying amount Concessions, patents, software Other intangible assets Intangible assets in progress
73
53
-
- 8
14
131
Total gross carrying amount
414
128
- 14
127
21
676
- 179
- 57
11
- 8
- 8
- 241
- 16
- 11
2
- 3
2
- 26
- 1
-
1
-
-
-
- 197
- 68
15
- 11
- 6
- 267
217
60
1
115
16
409
Amortisation/provisions Concessions, patents, software Other intangible assets Intangible assets in progress Total amortisation/provisions Total net carrying amount
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In 2007, other intangible assets increased by €122 million in respect of customer portfolios and trade names acquired with the entry into the scope of consolidation of Geodis Wilson. There were no intangible assets with indefinite lives.
In € millions 1/01/2008
Additions / Charges
Disposals / Reversals
Changes in consolidation scope
Other changes
31/12/2008
Concessions, patents, software
377
102
- 32
11
1
459
Other intangible assets
167
7
- 1
7
- 2
180
Gross carrying amount
Intangible assets in progress
131
49
-
-2
- 2
176
Total gross carrying amount
676
158
- 33
16
- 3
815
- 241
- 68
32
- 2
4
- 276
- 26
-14
-
-
- 2
- 42
Consolidated Financial Statements
Changes in the heading over the year break down as follows:
Concessions, patents, software Other intangible assets Intangible assets in progress Total amortisation / provisions Total net carrying amount
-
-
-
- 1
-
- 1
- 267
- 83
32
- 3
2
- 319
409
75
-
13
- 1
496
Additions for 2008 include software developed in-house, either brought into service or under development, breaking down as follows: — €87 million for the parent company, — €9 million for Geodis. Impairment losses are not material. The increase in amortisation and provisions primarily reflects the amortisation charge for the period. Changes in value due to foreign currency translation are of little significance.
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Amortisation / provisions
7 Property, plant and equipment Movements in property, plant and equipment during 2007 break down as follows: In € millions 1/01/2007
Additions / Charges
Disposals / Reversals
Changes in consolidation scope
Other changes
Reclassification of transportation equipment
31/12/2007
Gross carrying amount Land
1,690
1
- 30
-
104
1,765
Buildings
7,887
374
- 106
-8
41
8,189
Industrial and technical plant Transportation equipment Rail equipment
2,328
194
- 37
1
5
23,726
1,952
- 556
- 62
57
2,491 - 152
24,966
22,766
1,906
- 519
- 62
52
165
24,308
Non rail equipment
603
46
- 37
-
6
- 317
301
Maritime equipment
357
-
-
-
-
-
357
857
103
- 41
20
- 12
152
1,078
2,926
237
-2
7
- 281
39,414
2,862
- 771
- 43
- 85
Other property, plant and equipment Property, plant and equipment in progress Total gross carrying amount
2,887 -
41,377
Depreciation / provisions - 84
- 17
-
-
-
- 100
Buildings
Land
- 3,929
- 292
59
6
28
- 4,128
Industrial and technical plant
- 1,513
- 124
35
-
-2
- 1,603
- 13,599
- 1,113
694
15
-6
132
- 13,878
- 13,047
- 1,066
663
14
-4
- 50
- 13,491
Non rail equipment
- 378
- 36
31
1
-2
182
- 203
Maritime equipment
- 174
- 10
-
-
-
-
- 184
Other property, plant and equipment
- 572
- 89
37
- 13
13
- 132
- 756
Property, plant and equipment in progress
- 117
- 54
52
2
-
- 19,815
- 1,689
878
10
33
-
- 20,583
19,599
1,173
106
- 33
- 52
-
20,794
Transportation equipment Rail equipment
Total depreciation / provisions Total net carrying amount
- 117
The 2007 opening balances were modified to take into account the Physical and Accounting Inventory project, which resulted in a €42 million decrease in the gross value of buildings and a €45 million increase in their depreciation for a €88 million decrease in the net value of buildings (see Note 2.2). This impact also gave rise to a €55 million decrease in the amount of additions and charges for the buildings depreciation line item compared to the amount published in 2007, with a corresponding impact on total depreciation and the net carrying amount. The 2007 closing balances were modified following the reclassification of transportation equipment by category (rail, road) to better reflect the actual situation.
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The 2007 impact of changes in Group structure on rolling stock corresponds to the decrease in the percentage consolidation of Ermewa French companies.
1/01/2008
Additions / Charges
Disposals / Reversals
Changes in consolidation scope
Other changes
31/12/2008
Gross carrying amount Land
1,765
52
- 38
-
48
1,827
Buildings
8,189
305
- 465
4
161
8,195
Industrial and technical plant Transportation equipment Rail equipment
2,491
280
- 257
-
3
2,518
24,966
2,493
- 505
39
95
27,088 26,269
24,308
2,310
- 479
31
100
Road equipment
301
63
- 22
8
-5
345
Maritime equipment
357
120
-4
-
-
474
Other property, plant and equipment
1,078
130
- 198
8
- 75
943
Property, plant and equipment in progress
2,887
240
- 11
-
- 126
2,991
41,377
3,500
- 1,473
52
107
43,562
Total gross carrying amount Depreciation / provisions Land Buildings Industrial and technical plant
- 100
- 20
3
-
-1
- 119
- 4,128
- 668
447
-2
- 77
- 4,427
- 1,603
- 142
256
-
2
- 1,488
- 13,878
- 1,255
706
-4
8
- 14,424
- 13,491
- 1,213
685
-
2
- 14,017
Road equipment
- 203
- 31
17
-4
7
- 214
Maritime equipment
- 184
- 12
4
-
-
- 192
Other property, plant and equipment
- 756
- 98
194
-5
53
- 613
Property, plant and equipment in progress
- 117
- 98
107
-
-
- 108
- 20,583
- 2,282
1,714
- 12
- 15
- 21,178
20,794
1,217
241
40
92
22,384
Transportation equipment Rail equipment
Total depreciation / provisions Total net carrying amount
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SNCF — Financial Report 2008
In € millions
Consolidated Financial Statements
Movements in property, plant and equipment during 2008 break down as follows:
7 Property, plant and equipment
Other changes include the capitalisation of the component relating to rolling stock asbestos removal for €109 million (see Note 17). Assets made available by the French State, without transfer of title, are recorded in the Group balance sheet and amounted to €600 million for land and €937 million for buildings and upgrades. A breakdown of depreciation charges and impairment losses recorded in the income statement is presented in Note 28. Changes arising from translation differences are of little significance. Capital expenditure flows for 2007 and 2008 break down as follows: In € millions Intangible assets
31/12/2008
31/12/2007
- 158
- 128
Property, plant and equipment
- 3,500
- 2,862
Total acquisitions
- 3,658
- 2,990
- 193
- 26
- 3,464
- 2,965
inc. fixed assets held as finance-Leasing Acquisitions excluding finance-leasing Capital expenditure flows Tangible and intangible capital expenditure flows
Capital expenditure for 2008 primarily comprised: — upgrades to stations and buildings (creation of a TGV workshop in Lyon, GSMR project, rail hotel residence, relocation of the Centre de Régulation Opérationnel de Paris Saint-Lazare, and work for the Vénissieux Equipment workshop) for a total of €768 million;
60
- 115
- 3,405
- 3,080
— acquisition and renovation of rolling stock for €1,854 million, primarily relating to the following projects: high capacity railcars (€496 million), new generation double-decker TERs (€270 million), double-decker TGVs (€230 million), freight locomotives (€111 million), new Transilien electric railcars (€86 million), Transilien locomotives (€81 million) and the TGV East European (€62 million).
— acquisition and renovation of rolling stock for €2,243 million, mainly attributable to the following projects: high-capacity motorised carriages (€592 million), new generation TER2 (€302 million), Double-decker TGVs (€310 million), Dasye TGVs (€110 million), Freight locomotives (€175 million), and Transilien locomotives (€50 million);
Capitalised production included in acquisitions totalled €986 million (€973 million in 2007) and includes:
— Bonneuil platform for €48 million at Geodis;
Asset-financing grants received totalled €943 million (€904 million in 2007), including €772 million (€731 million in 2007) for rolling stock and €171 million (€173 million in 2007) for fixed installations.
— acquisition of cars and containers for €55 million.
— fixed assets for €556 million (€526 million in 2007), — rolling stock for €430 million (€447 million in 2007).
Capital expenditure for 2007 primarily comprised: — upgrade work to stations and buildings (creation of a TGV workshop in Lyon, multimodal hub at Marseille St. Charles, refurbishment of the Orleans and Le Mans stations and building work at Lyon Perrache) totalling €692 million;
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Gross carrying amount
31/12/2008 Depreciation
Net carrying amount
Gross carrying amount
31/12/2007 Depreciation
Net carrying amount
Gross carrying amount Land Buildings Transportation equipment Rail equipment Road equipment Maritime equipment Other property, plant and equipment Property, plant and equipment in progress Total
26
-
26
23
-
23
489
- 190
299
466
-192
274
4,708
- 2,012
2,697
4,052
- 1,842
2,210
4,479
- 1,911
2,568
3,862
- 1,775
2,087
87
- 62
25
88
- 55
33 90
102
- 15
87
101
- 11
40
- 23
17
26
- 21
-
-
-
106
5,263
-2,225
3,039
4,674
5 106
- 2,054
2, 619
8 Impairment tests Asset impairment tests are performed on CGUs representing legal entities or defined based on the destination of the assets used. The assets tested include goodwill, indefinite life intangible assets and assets with a finite useful life where there is indication that the CGU has suffered a loss in value. Pursuant to IAS 36, Impairment of Assets, CGUs with goodwill are tested at least once annually irrespective of whether there is any indication of impairment.
8-1 CGU WITH SIGNIFICANT GOODWILL IN RELATION TO TOTAL GOODWILL Of the total goodwill, €544 million was allocated to the cashgenerating unit of the Global Offering, which comprises all activities included in the multimodal and mixed solutions of the Transport and Logistics division. No indefinite life intangible assets were allocated to this CGU, which is tested for impairment at least once annually. The following assumptions were used to determine the recoverable amount:
Segment
Transport and Logistics
CGU Base used for the recoverable amount Source Discount rate (minimum - maximum) Growth rate
Global Offering Value in use 3-year plan 8.27% - 8.69% 1.4%
The recoverable amount is much higher than the estimated economic asset of the CGU as at 31 December 2008. No impairment was recognised. Sensitivity tests revealed that a 1% change in the discount rate had no impact on the impairment test.
8-2 CGU WITH INDICATION OF IMPAIRMENT The CGUs of Corail (including Elipsos), Corail Intercités and Infrastructure were tested following indications of impairment identified during the year. The indications identified stem from negative forecasts for Corail and Corail Intercités and results that did not meet the forecast for Infrastructure. The values for property, plant and equipment and intangible assets tested and the assumptions used to determine the recoverable amount were as follows:
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SNCF — Financial Report 2008
In € millions
Consolidated Financial Statements
Assets recorded in property, plant and equipment and held under finance lease agreements break down as follows:
8 Impairment tests
Segment CGU
PFE
Local Transport
Infrastructure and Engineering
Standard rolling stock (CORAIL, ELIPSOS)
Corail Intercités
SNCF Infrastructure
299
237
482 Value in use
PPE and intangible assets before impairment (at the year-end in millions of euros) Base used for the recoverable amount
Value in use
Value in use
Source
3-year plan
3-year plan
3-year plan
Discount rate (minimum - maximum)
7.8% - 9.2%
7.8% - 9.2%
7.4% - 8.2%
2%
2%
2%
Growth rate
No goodwill or indefinite life intangible assets were allocated to these CGUs. The impairment losses determined following testing primarily concerned property, plant and equipment. Impacts on the income statement arising from the recognition of impairment losses are described in Note 28. On the date of testing, the sensitivity of the CGU recoverable amount to a change in the discount rate was determined by the Infrastructure CGU (the other CGUs being fully impaired or impaired using a base with a non-material sensitivity). This sensitivity had no material impact on the impairment loss of the Infrastructure CGU. There were also indications of impairment for the SNCF Freight CGU. The recoverable amount was determined using the specific methods described in Note 28.2.
8-3 CGU WITH INDICATIONS OF A VALUE RECOVERY: FRANCE WAGONS The indication of recovery comprises the increase in railcar leasing revenues and the gradual opening of the leasing market to new players resulting in an improvement in expected future cash inflows for the France Wagons subsidiary. The assumptions used to determine the recoverable amount were as follows: Segment CGU Base used for the recoverable amount
Transport and logistics France Wagons Value in use
Source
3-year plan
Discount rate (minimum - maximum)
6.8% - 7.3%
Growth rate
2%
Impacts on the income statement are described in Note 28.
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In € millions
Notes
Loans and receivables
31/12/2008 Noncurrent
Current
31/12/2007 Total
Noncurrent
Current
Total 14,345
6,987
3,873
10,859
8,827
5,519
RFF receivable
8.1
1,905
488
2,393
2,394
1,336
3,730
Public Debt Fund receivable
8.2
4,731
1,413
6,144
6,075
2,176
8,251
Other loans and receivables
8.3
351
1,972
2,323
358
2,007
2,365
770
338
1,108
167
-
167
Assets at fair value through profit or loss
Available-for-sale assets
-
1,027
1,027
31
853
884
Positive fair value of hedging derivatives
115
2
117
22
6
28
Positive fair value of trading derivatives
252
40
292
341
17
358
189
189
169
169
8,125
5,468
13,592
9,387
6,564
15,951
Accrued interest receivable on derivatives Total
UCITS included in assets at fair value through profit or loss are valued at their net asset value at the balance sheet date.
— the subscription of short and medium-term bonds for €1,265 million, of which €368 million was reimbursed in 2008;
Available-for-sale assets comprise non-consolidated investments in associates and short and medium-term investments. The change in the item stems from:
— the acquisition of a 16% non-consolidated minority interest in STA, a Canadian school transportation group, for €25 million, valued at €17 million as at 31 December 2008.
9-1 RÉSEAU FERRÉ DE FRANCE RECEIVABLE The principles governing the measurement and recognition of this receivable are presented in Note 4.11.4.1. The receivable breaks down as follows: In € millions Noncurrent At amortised cost Recognised using fair value hedge accounting
Total
Noncurrent
31/12/2007 Current
Total
1,384
448
1,831
1,776
244
2,020
521
-
521
618
992
1,610
40
40
100
100
488
2,393
1,336
3,730
Accrued interest receivable Total
31/12/2008 Current
1,905
2,394
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SNCF — Financial Report 2008
Financial assets maturing in less than 12 months at the balance sheet date are recorded in Current financial assets. The fair value of asset derivative instruments is classified in current and non-current assets based on the final maturity of the derivative. Current and non-current financial assets as at 31 December 2008 and 2007 break down as follows:
Consolidated Financial Statements
9 Financial assets
9 Financial assets
Fair value of the RFF receivable In € millions RFF receivable
31/12/2008
31/12/2007
Fair value
Net carrying amount
Fair value
Net carrying amount
2,749
2,393
3,935
3,730
The maturity schedule based on year-end exchange and interest rates is as follows: In € millions
31/12/2008
31/12/2007
Nominal
Interest
Nominal
448
124
1,242
237
57
108
448
144
2 to 3 years
73
106
57
127
3 to 4 years
186
106
93
124
4 to 5 years
418
101
200
114
More than 5 years
1,142
585
1,574
729
Total
2,324
1,129
3,614
1,475
Less than 1 year 1 to 2 years
Interest
9-2 PUBLIC DEBT FUND RECEIVABLE Up to the end of December 2007, the Group received an annual contribution from the French State voted as part of the Finance Law and intended to repay the borrowings transferred to the Special Debt Account. At the end of December 2007, the receivable representing payments expected in respect of the Special Debt Account was replaced by a Public Debt Fund receivable. Excluding derivative instruments, this receivable totalled €8,251 million as at 31 December 2007 and €6,144 million as at 31 December 2008. The fair value and net carrying amount of this receivable is as follows: In € millions Receivable on CDP (Public Debt Fund)
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31/12/2008
31/12/2007
Fair value
Net carrying amount
Fair value
Net carrying amount
6,646
6,144
8,314
8,251
sncf.com
The maturity schedule based on year-end exchange and interest rates is as follows: 31/12/2008 Nominal
31/12/2007 Nominal
Interest
Interest
Less than 1 year
1,141
313
1,969
462
1 to 2 years
1,059
261
1,172
318
2 to 3 years
72
208
1,084
263
3 to 4 years
976
205
68
208
4 to 5 years
1,128
173
930
205
More than 5 years
1,495
940
2,638
1,115
Total
5,872
2,101
7,861
2,571
Consolidated Financial Statements
In € millions
9-3 MEDIUM-TERM ASSETS
In € millions
31/12/2008 Nominal
Interest
Less than 1 year
221
20
1 to 2 years
376
22
2 to 3 years
173
14
3 to 4 years
-
7
4 to 5 years
113
7
More than 5 years Total
13
1
896
70
9-4 OTHER LOANS AND RECEIVABLES Other loans and receivables held by the Group break down as follows: In € millions Noncurrent Cash collateral assets
-
CPRP receivable
31/12/2008 Current
Total
Noncurrent
489
489
30
1,472
1,472
31/12/2007 Current
Total
575
605
1,365
1,365
Other loans and receivables
351
11
362
328
67
394
Total
351
1,972
2,323
358
2,007
2,365
As pensions are paid on behalf of the CPRP autonomous fund during the management mandate granted to SNCF, the CPRP receivable is recorded in current financial assets.
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SNCF — Financial Report 2008
The maturity schedule based on year-end exchange and interest rates for medium-term assets classified as available for sale is as follows:
10 Investments in e.s.h. low rental housing companies The E.S.H. low-rental housing companies in which the Group holds a majority interest are not consolidated due to the absence of effective control. (see Note 4.1) The main consolidated balance sheet headings of these companies are as follows: — Non-current assets: €2,397 million (€2,261 million in 2007); — Non-current financial liabilities (debts): €1,594 million (€1,559 million in 2007).
11 Investments in associates The Group holds several investments in associates, accounted for using the equity method. The net carrying amount of investments in these companies breaks down as follows: In € millions % Interest
Eurofima
22.60 %
STVA Group subsidiaries
31/12/2008 Net profit
Investment in associates (incl. net profit)
31/12/2007 Investments in associates
7
199
176
1
36
36
Kuvera
45.38 %
27
73
56
NTV
20.00 %
-
84
-
France Rail Publicité
20.00 %
-
-
8
Other investments
- 3
17
17
Total
32
410
294
Movements in Investments in associates during 2008 are primarily due to the acquisition of a minority interest in NTV for €84 million (see Note 3.3) and the sale of France Rail Publicité shares outside of the Group for €7 million. In € millions
31/12/2008
31/12/2007
294
237
Net profit
32
37
Change in scope
81
- 5
- 10
38
As at 1 January
Fair value and other Reclassification
1
Keos share capital reduction
68 - 72
Distribution
- 5
Exchange differences
17
- 4
410
294
As at 31 December
Page 80
- 5
sncf.com
The summary financial information presented below in respect of associates represents 100% of the headings concerned and not the percentage held:
Current assets
31/12/2008 Eurofima
NTV
Total
799
3,036
202
4,036
Non-current assets
1,023
24,200
614
25,837
Current liabilities
1,066
2,604
87
3,757
Non-current liabilities
776
23,751
478
25,005
Net assets
- 20
881
251
1,111
In € millions Kuvera Current assets Non-current assets
31/12/2007 Eurofima
852
1,766
FRP
Total
53
2,672 22,392
880
21,501
11
1,040
1,383
38
2,461
Non-current liabilities
721
21,107
1
21,829
Net assets
- 28
778
25
774
Current liabilities
Relations with Eurofima concern the financing of industrial assets. The impacts of this relationship are reflected in the accounts in accordance with IFRS. Assets purchased under finance lease via the intermediary of Eurofima are capitalised in the SNCF Group financial statements for a gross value of €3,473 million as at 31 December 2008 (€3,173 million as at 31 December 2007). The related financing liability is €3,335 as at 31 December 2008 compared to €3,068 million as at 31 December 2007.
The above data relating to Eurofima has been modified in relation to the data published in 2007 mainly due to the harmonisation of its accounting policies (see Note 1.4.6). Current assets have been decreased by €1,036 million, non-current assets have been increased by €2,949 million, current liabilities have increased by €295 million and non-current liabilities have increased by €1,884 million. Net assets have thus decreased by €265 million compared to the amounts published in 2007.
In € millions Kuvera Revenue Operating profit Net profit for the year
3,170
NTV
Total
27
3,197
124
31
11
165
64
31
- 5
90
In € millions Kuvera Revenue
31/12/2008 Eurofima
31/12/2007 Eurofima
2,758
FRP
Total
81
2,839
Operating profit
96
27
6
130
Net profit for the year
53
27
7
87
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Consolidated Financial Statements
Kuvera
SNCF — Financial Report 2008
In € millions
12 Investments in joint ventures The Group’s share in the assets and liabilities of proportionately consolidated companies is as follows: In € millions Ermewa
31/12/2008 Systra Other
Total
Ermewa
195
100
31/12/2007 Systra Other
Total
Share of assets and liabilities of joint ventures Current assets Non-current assets Current liabilities Non-current liabilities Net assets
87
80
28
81
41
222
318
15
1
334
286
13
7
307
72
53
24
149
68
54
33
156
311
3
1
314
289
3
1
293
23
38
4
65
28
38
14
80
Because of a change in presentation and for comparison purposes with 2008, the Ermewa non-current assets were decreased by €23 million compared to the amount published in 2007. In € millions Ermewa
31/12/2008 Systra Other
Total
Ermewa
31/12/2007 Systra Other
Total
Share of profit of joint ventures Revenue Operating profit Net profit for the year
188
120
19
328
192
115
41
348
33
7
5
44
30
7
5
42
4
5
4
13
8
6
4
17
13 Inventories and work-in-progress Inventories as at 31 December 2008 break down as follows: In € millions
31/12/2008 Impairment
Net
31/12/2007 Net
Change
Gross 740
- 72
668
507
161
Finished products
45
-
45
63
- 18
Production work-in-progress
38
-1
37
43
- 6
823
- 72
751
613
137
Raw materials
Inventories and work-in-progress
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sncf.com
31/12/2007
Charges
Reversals
31/12/2008
- 70
- 8
7
- 72
Raw materials and supplies – impairment Production work-in progress – impairment Inventory impairment provisions
-
- 1
-
-1
- 70
- 9
7
- 72
14 Operating receivables Operating receivables as at 31 December 2008 break down as follows: In € millions
31/12/2008 Impairment
Net
31/12/2007 Net
Change
Gross Trade receivables and related accounts
2,649
- 152
2,497
2,797
-300
Amounts receivable from the French State and local authorities
1,268
-
1,268
1,190
77
Other operating receivables
1,600
- 130
1,470
976
494
Net operating receivables
5,517
- 282
5,234
4,963
272
Movements in impairment provisions on trade receivables and other operating receivables during 2007 and 2008 break down as follows: In € millions 31/12/2006
Charges
Reversals
Reclassification
Change in scope
Exchange
31/12/2007
Trade receivables and related accounts – impairment
- 249
- 62
38
26
- 3
1
- 250
Other operating receivables – impairment
- 172
- 57
88
1
-
- 2
- 143
Total
- 422
- 119
126
26
- 3
- 2
- 393
31/12/2007
Charges
Reversals
Reclassification
Change in scope
Exchange
31/12/2008
Trade receivables and related accounts – impairment
- 250
- 129
135
95
- 5
1
- 152
Other operating receivables – impairment
- 143
- 64
70
2
5
-
- 130
Total
- 393
- 193
206
97
-
1
- 282
In € millions
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SNCF — Financial Report 2008
In € millions
Consolidated Financial Statements
Movements in inventory impairment provisions break down as follows:
14 Operating receivables
Due to its business, Group exposure to credit risk is limited. Tickets are sold cash to passengers. In addition, the Group has significant relations with a number of public sector customers (RFF, regional authorities, RATP, STIF, armed forces, etc.). In the transport and logistics activity, dependence on customers is reduced by the number of the latter. In addition, in carrying out its transport and/or freight forwarding activities, the Group has the right to hold the merchandise it is confided, which reduces the risk of non-payment for services. In addition, based on an
assessment of customer credit risk, payment terms and conditions before transport may be determined to limit the risk of non-payment. While receivables due by these customers may be past due, there are no grounds for impairment. Receivables are impaired when the Group is in dispute with a customer or when the ability to recover the receivable in full is modified.
Trade receivables past due break down as follows (gross value): 31/12/2007 In € millions
Not past due
Impaired < 3 months
Past due but not impaired 4 to 6 7 to 12 months months
Total > 12 months
Trade receivables and related accounts
2,434
295
162
80
42
35
3,047
Total
2,434
295
162
80
42
35
3,047
Not past due
Impaired
Past due but not impaired 4 to 6 7 to 12 months months
> 12 months
31/12/2008 In € millions
< 3 months
Total
Trade receivables and related accounts
2,183
183
177
63
26
17
2,649
Total
2,183
183
177
63
26
17
2,649
15 Cash and cash equivalents In € millions Monetary mutual funds (SICAV) equivalent to cash Cash at bank and in hand Cash and cash equivalents in the balance sheet Accrued interest payable Current bank facilities Cash and cash equivalents in the statement of cash flows
The Group considers the nominal value of investments recorded in cash and cash equivalents to be a reasonable estimate of their market value.
Page 84
31/12/2008
31/12/2007
Change
2,565
2,808
- 243
715
618
97
3,280
3,426
- 146
3
5
- 1
570
695
- 125
2,707
2,726
- 20
Net cash from operating activities totalled €2,197 million in 2008 (€2,167 million in 2007) and was primarily generated by operations for €2,043 million, (€1,856 million in 2006).
sncf.com
— capital expenditure on intangible assets and property, plant and equipment for €3,405 million (€3,080 million in 2007), up 11% (see Note 7); — the acquisition of minority interests in Geodis by SNCF Participations, generating a cash outflow for €618 million (see Note 2.3); — the acquisition of Rohde & Liensenfeld by Geodis and ITL by TLP, generating a net outflow of Group cash for €107 million (see Note 3);
Financing activities provided the Group with net cash resources of €1,531 million in 2008 (€801 million in 2007) and mainly comprised: — new borrowings for €1,891 million (€977 million in 2007), including a €750 million bond issue for the parent company and new borrowings to finance the acquisition of rolling stock and the takeover of Geodis, as well as the Rohde & Liesenfeld and ITL business combinations; — repayment of the RFF receivable for €1,242 million, compared to €1,353 million in 2007 and the CDP receivable for €1,966 million; — repayments of cash borrowings for €684 million and payment of dividends to the French State for €131 million.
Consolidated Financial Statements
Net cash used in investing activities totalled €3,733 million in 2008 (€2,712 million in 2007), mainly due to:
Movements in net debt financing flows stem from: In € millions Non-current financial liabilities
Notes
31/12/2008
31/12/2007
Change
18
14,632
15,894
-1,262
Non-current financial assets included in net debt
18
- 7,937
- 9,190
1,253
Current financial liabilities excluding cash and cash equivalents
18
7,443
7,067
376
Current financial assets included in financing flows excluding cash and cash equivalents
18
- 5,468
- 6,564
1,096
8,671
7,206
1,464
Net debt included in financing flows Net debt financing flows in the statement of cash flows Difference
SCF
821 643
This difference breaks down as follows: Change in fair value
337
New finance lease debt
192
Changes in scope
42
Currency translation effects and other
72
Total
643
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SNCF — Financial Report 2008
— investment grants received for €1,354 million in 2008, compared to €1,055 million in 2007.
16 Minority interests Minority interests as at 31 December 2008 break down as follows: In € millions Geodis
31/12/2008 11
31/12/2007 295
Change - 284
STVA
35
32
3
Systra
11
10
1
Other
18
12
6
Total
75
348
- 274
31/12/2008
31/12/2007
82
77
The decrease in Geodis minority interests arises from the takeover in the second half of 2008 (see Note 2.3).
17 Employee benefits The following provisions were booked for employee benefits: In € millions Pension obligations
44
44
Social welfare initiatives
Provident obligations
402
392
Compensation for work-related injuries
645
656
Long-service medals and other benefits
41
36
Total provision
1,215
1,205
- of which non-current
1,133
1,125
81
80
- of which current
17-1 DESCRIPTION OF EMPLOYEE BENEFITS
17-1-1 Pension obligations (until 29 June 2007) Article 30 of the SNCF terms of reference has defined, since 1 January 1970, the terms and conditions under which the French State assured the financial balance of the regime. In addition to the payment by SNCF of “standardised” contributions to the Pension Fund, the French State assured the financial balance of the regime. The “standard” contribution rate was determined based on SNCF contributor and pensioner populations, adjusted for demographic imbalance compared to
Page 86
that of other ordinary law pension schemes. The contribution rate was regularly reviewed until 1990. The Decree of 27 February 1991 set this rate at 36.29% of payroll costs, paid 7.85% by employees and 28.44% by the employer. The new benefits specific to the SNCF regime, created in 1990, compared with the benchmark regime, were financed by SNCF and its employees. These new benefits concerned the definition of the liquid pension base (successive integration of residence compensation percentages and implementation of the new remuneration system) and an increase in the minimum pension level.
sncf.com
Benefits included the reimbursement of medical costs, temporary accommodation allowances, retirement allowances and death allowances. A portion of these guarantees were covered by the bilateral national compensation mechanism under the Social Security healthcare regime. In return for the payment of contributions equivalent to those due under the general regime, the Provident Fund received reimbursements in line with the general regime scale. As such, only additional health care guarantees, the temporary accommodation allowance and the retirement allowance remained at the expense of SNCF. These represent the Provident Regime of SNCF qualifying employees, financed by additional employer and employee contributions, deducted in addition to reinsurance contributions under the bilateral health care compensation mechanism. The provision recorded in respect of provident benefits encompasses post-employment commitments given by SNCF to its employees, which is to say the payment of retirement and death allowances. To ensure that retired employees continue to benefit from health insurance coverage, SNCF paid a contribution to the Provident Fund calculated as a percentage of total pension payments made during the year. This contribution was approximately 3%. SNCF recorded a provision in the amount of this postemployment benefit.
The pension and provident obligations transferred to the independent Employee Pension and Provident Fund (CPRP) have been recorded as defined contribution regimes since 29 June 2007, the decrees relating to the Fund not providing for SNCF responsibility should the regimes post a deficit. Only the pension obligations granted by the Group subsidiaries to their employees are now included in the pension provision. SNCF continues to assure a provident regime for senior management. This defined benefit scheme is subject to a balance sheet provision. The provident provision has covered the senior management fund exclusively since 29 June 2007.
Consolidated Financial Statements
The Company self-financed provident benefits provided to active and retired employees, via the SNCF Provident Fund and the SNCF Senior Management Provident Fund.
17-1-3 Pension and provident obligations since 29 June 2007
17-1-4 Compensation for work-related injuries SNCF self-finances the payment of compensation for workrelated injuries to active and retired employees, independently of the current general regime. Life annuities are provided in full at the date of grant to injured employees without any seniority conditions. The amount of the obligation has been adjusted in relation to the amounts published in 2007 (see Note 1.4.4.2).
17-1-5 Retired employee social welfare initiatives SNCF implements a number of social welfare initiatives: access to infrastructures, consultation of social workers, etc. Both active and retired employees may benefit from these initiatives. SNCF recorded a provision in the amount of this postemployment benefit. The amount of the obligation has been adjusted in relation to the amounts published in 2007 (see Note 1.4.4.1).
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SNCF — Financial Report 2008
17-1-2 Provident obligations (until 29 June 2007)
17 Employee benefits
17-1-6 Main assumptions Provisions for employee obligations are calculated on an actuarial basis, using the projected unit credit method. The parameters used in the modelling of the main employee benefits are as follows:
Gross discount rate
31/12/2008
31/12/2007
31/12/2006
5.30 %
5.00 %
4.25 %
Inflation rate
2.00 %
2.00 %
2.00 %
Mortality table: Senior Management Fund and social welfare initiatives
TGH 05
TPG93
TPG93
Mortality table: active and retired employees with work-related injuries
TD 88-90
TD 88-90
TD 88-90
TGF 05
TV 88-90
TV 88-90
Mortality table: widows of employees with work-related injuries Employee turnover table used for obligations transferred to CPRP
Redundant 18–29 years old: 2.0 % 18–29 years old : 2.0 % 30–41 years old: 0.0 % 30–41 years old : 0.0 % 42–49 years old: 0.3 % 42–49 years old: 0.3 % 49–55 years old: 0.9 % 49–55 years old: 0.9 %
Gross rate of salary increase for obligations transferred to CPRP
Redundant
3.50 %
3.50 %
Gross rate of pension increase for obligations transferred to CPRP
Redundant
2.00 %
2.00 %
2.50 %
2.50 %
2.50 %
Gross rate of increase of provident benefits (Senior Management Fund) Gross rate of increase of social welfare initiatives Gross rate of increase of compensation for work-related injuries
As at 31 December 2008, obligations relating to the main post-employment benefits are discounted at the pre-closing date’s market rate based on leading corporate bonds of comparable maturity. The benchmark used to determine the discount rate is Bloomberg AA for France and the Euro zone. The benchmark adopted in 2008 differs from that of 2007. The change is justified by the wish to better comply with the IAS 19 recommendations and harmonisation with the practices of certain major corporations in the industry.
-
2.00 %
2.00 %
2.00 %
2.00 %
2.00 %
17.2. PRESENT VALUE OF OBLIGATIONS AND PROVISION For post-employment benefit obligations, the Group progressively records actuarial differences generated by changes in calculation assumptions, in accordance with the corridor method. Improvements to the different regimes are also recognised progressively in profit or loss. For long-service awards and other long-term benefits, actuarial gains and losses and improvements to the regimes are immediately recognised in profit or loss for the full amount.
Based on all the other actuarial assumptions, a change of plus or minus 0.5% in the discount rate would reduce the Group obligations by €46 million (or increase these obligations by €50 million) for fiscal year 2008.
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sncf.com
The year-end reconciliation between the present value of obligations and the provision recorded in the balance sheet breaks down as follows:
Present value Actuarial gains and losses not recognised Past service cost not recognised
Pension obligations
Provident obligations
Social welfare initiatives
Compensation for work-related injuries
Longservice medals
TOTAL
82
36
227
572
41
958
-
9
175
73
-
256
-
-
-
-
-
-
82
44
402
645
41
1 215
Pension obligations
Provident obligations
Social welfare initiatives
Compensation for work-related injuries
Long-service medals
TOTAL
77
40
347
601
36
1,101
Actuarial gains and losses not recognised
-
4
45
55
-
104
Past service cost not recognised
-
-
-
-
-
-
77
44
392
656
36
1,205
Provision
Consolidated Financial Statements
31/12/2008
Present value
Provision
In comparison with the data published in 2007: — The present value of the obligation and the unrecognised actuarial gains and losses of the social welfare initiatives are higher by €10 million and €15 million respectively, while the provision has increased by €25 million (see Note 1.4.4.1). — The present value of compensation for work-related injuries has decreased by €11 million, while the unrecognised actuarial gains and losses have increased by €49 million. The provision is higher by €38 million (see Note 1.4.4.2). 31/12/2006
Present value of the obligation Actuarial gains and losses not recognised Past service cost not recognised Expected payments Provision
Pension obligations
Provident obligations
Social welfare initiatives
Compensation for work-related injuries
Long-service medals and other benefits
TOTAL
112,557
3,030
384
658
39
116,668
- 2
16
-
-
-
14
-
-
-
-
-
- 84,267 28,288
- 84,267
3,046
384
658
39
32,415
In comparison with the data published in 2007, the present value of the social welfare initiatives has increased by €26 million (see Note 1.4.4.1).
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SNCF — Financial Report 2008
31/12/2007
17 Employee benefits
17-3 PROVISION MOVEMENTS DURING THE YEAR Movements in provisions during the year break down as follows for each regime: In € millions Pension obligations
Provident obligations
77
44
Current service cost
9
Interest expense
4
Opening balance
Benefits paid Actuarial gains and losses Expected rate of return on plan assets
31/12/2008 Social Compensawelfare tion for initiatives work-related injuries
Long-service medals and other benefits
TOTAL
392
656
36
1,205
1
7
25
8
49
2
17
30
-
53
- 11
- 2
- 14
- 64
- 4
- 95
-
-
- 1
- 1
-
- 3
- 1
- 1
Plan amendments
2
-
-
-
-
2
Change in consolidation scope and currency translation
2
-
-
-
1
3
82
44
402
645
41
1,215
Pension obligations
Provident obligations
31/12/2007 Social Compensawelfare tion for initiatives work-related injuries
Long-service medals and other benefits
TOTAL
28,288
3,046
384
658
39
32,415
228
28
8
36
3
303
Closing balance
In € millions
Opening balance Current service cost Interest expense Benefits paid Actuarial gains and losses
606
65
16
28
-
715
- 757
- 68
- 15
- 65
- 7
- 912
-
-
-
- 1
-
- 1
- 28,289
- 3,027
-
-
-
- 31,316
2
-
-
-
-
2
77
44
392
656
35
1,205
Expected rate of return on plan assets Creation of the Fund (*) Change in consolidation scope and currency translation Closing balance
-
* The new pension and provident regime operation and financing model led to the reversal of the obligation in full as at 30 June 2007 (€116,447 million) recognised in the 1 January 2006 opening balance sheet and updated as at 30 June 2007 and the removal of the corresponding assets (€85,131 million).
In comparison with the data published in 2007: — The opening and closing balances of the social welfare initiatives are higher by €26 million. — Current service costs with respect to compensation for work-related injuries amounted to €36 million, while benefits paid decreased by €3 million, and €1 million in actuarial gains and losses was recognised. The closing balance increased by €38 million.
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sncf.com
17-4 NET EXPENSE RECORDED IN PROFIT OR LOSS
In € millions Pension obligations
Provident obligations
31/12/2008 Social Compensawelfare tion for initiatives work-related injuries
Long-service medals and other benefits
Total
49
Current service cost
9
1
7
25
8
Cost of benefits paid
11
2
14
64
4
95
- 11
- 2
- 14
- 64
- 4
- 95
Benefits paid Plan amendments Gross profit Interest expense
3
-
-
-
-
3
11
1
6
23
8
50
3
2
17
29
-
50
Of which actuarial gains and losses
-
-
- 1
- 1
-
- 3
Finance cost
3
2
17
29
-
50
Net expense
14
3
23
52
8
100
Pension obligations
Provident obligations
31/12/2007 Social Compensawelfare tion for initiatives work-related injuries
Long-service medals and other benefits
Total
228
28
3
303
In € millions
Current service cost Cost of benefits paid Benefits paid Plan amendments
8
36
757
68
15
65
7
912
- 757
- 68
- 15
- 65
-7
- 912
-
-
-
-
-
-
Gross profit
228
28
8
36
3
303
Interest expense
606
65
16
27
-
714
-
-
-
-1
-
-1
Finance cost
606
65
16
27
-
714
Net expense
834
93
24
63
3
1,016
Of which actuarial gains and losses
The 2007 data has been modified in relation to the published data (see Note 17.3). Gradual cessation of activity A new agreement for the gradual cessation of activity came into force in July 2008. A provision is recognised based on experience.
Circulation privileges SNCF employees (active employees and their beneficiaries and retired employees) receive privileges which enable them to travel under certain circumstances at prices that differ from the market. SNCF does not consider these travel privileges to have a material impact on its production resources.
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SNCF — Financial Report 2008
The Income Statement expense for defined benefit schemes may be broken down as follows:
Consolidated Financial Statements
All movements in the provision for pension and similar obligations are recorded in gross profit under “Employee benefits expense”, except for the interest expense, recorded in “Finance costs”.
18 Provisions 18-1 MOVEMENTS IN PROVISIONS Movements in provisions for contingencies and losses during the year break down as follows: In € millions
Tax and customs risks
01/01/2008
Charges
Reversals (used)
Reversals (not used)
Other
31/12/08
Of which current
Of which noncurrent
14
-
- 4
- 2
- 2
6
5
1
Environmental risks
176
95
- 17
- 1
109
362
25
336
Litigation and contractual disputes and losses on completion
316
248
- 191
- 16
107
464
47
417
14
34
- 11
-
- 26
12
10
2
Other
Restructuring costs
236
76
- 26
- 58
- 17
210
64
146
Total provisions
755
453
- 248
- 78
172
1,054
151
903
18-2 OBSERVATIONS ON PROVISIONS
as an impairment loss in profit or loss.
In the interests of prudence, SNCF records provisions in respect of contested revised tax assessments.
The provision for litigation and contractual disputes encompasses risks relating to legal disputes and the settlement of contracts, as well as contractual disputes involving:
With a view to the enactment in French Law of Directive 2004/35 of 21 April 2004, on environmental liability and introducing the so-called polluter-payer principle, SNCF launched a review in order to assess the impact of this Directive on its activities. The Directive was enacted in July 2008. As at 31 December 2008, the following environmental risks are provided in the accounts: — Site decontamination: €99 million (€33 million in 2007), — Asbestos-related costs: €257 million (€137 million in 2007), — Biotox: €5 million: (€5 million in 2007). In 2008, the provision for site decontamination increased by €66 million. The change is attributable to an additional €69 million charge relating to the identification of new sites to be decontaminated during the period less €3 million for decontamination work already carried out. With respect to asbestos removal for rolling stock, an additional provision of €113 million was recognised for the year, including €109 million as an increase in assets, of which €27 million was recorded
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— RFF for €62 million (€114 million in 2007), — RTE for €100 million. Other provisions include a contingency provision in respect of firm orders for Freight equipment for €45 million (€56 million in 2007).
19 Financial liabilities This note provides a breakdown of Group financial liabilities by nature, maturity, currency and interest rate. Note 20 provides additional disclosures on derivative instruments subscribed by the Group. The hedging strategy is presented in Note 21.
19-1 CURRENT/NON-CURRENT BREAKDOWN OF FINANCIAL LIABILITIES Borrowings with an initial maturity of more than 12 months are recorded in long-term borrowings while borrowings with an initial maturity of less than 12 months are recorded in cash borrowings.
sncf.com
Financial liabilities break down as follows: In € millions
Notes
Bonds
31/12/2008 Non-current Current
Total
31/12/2007 Non-current Current
Total
8,127
3,454
11,580
9,375
3,245
12,620
Bank borrowings
1,937
713
2,649
2,027
36
2,063
Finance lease obligations
3,397
287
3,685
3,450
60
3,511
13,461
4,454
17,914
14,852
3,342
18,194
10,642
3,700
14,342
12,192
3,305
15,497
2,211
754
2,965
2,165
37
2,202
607
-
607
495
-
495
250
250
1
353
354
Sub-total borrowings Of which - measured at amortised cost - recognised using fair value hedge accounting - designated at fair value Accrued interest payable on borrowings Negative fair value of hedging derivatives
19
393
79
471
379
10
388
Negative fair value of trading derivatives
19
427
156
583
462
24
486
211
211
213
213
14,280
5,150
19,430
15,694
3,942
19,636
352
2,868
3,219
200
3,824
4,024
14,632
8,017
22,649
15,894
7,766
23,660
Accrued interest payable on derivatives Loans and borrowings Cash borrowings and overdrafts (1) Financial liabilities presented in the balance sheet Réseau Ferré de France receivable
8.1
1,905
488
2,393
2,393
1,336
3,729
Public Debt Fund receivable
8.2
4,731
1,413
6,144
6,075
2,176
8,251
Available-for-sale assets
582
338
920
-
-
-
-
1,027
1,027
31
853
884
115
2
117
22
6
28
252
40
292
341
17
359
169
169
328
2,007
2,335
3,426
3,426
- 2,224
4,480
Assets at fair value through profit or loss
8
Positive fair value of hedging derivatives
19
Positive fair value of trading derivatives
19
189
189
351
1,972
2,323
3,280
3,280
- 730
5,965
Accrued interest receivable on derivatives
8
Other loans, receivables and investments (2)
8.3
Cash and cash equivalents
14
Net indebtedness of the Group
6,695
6,704
(1) Including, in 2007, amounts payable to the French State in respect of the end of the Special Debt Account see Notes 4.10 and 4.20 to the 2007 published financial statements (2) o/w CPRP receivable of €1,365 million as at 31/12/2007
Page 93
Consolidated Financial Statements
The fair value of liability derivative instruments is classified in current and non-current liabilities based on the final maturity of the derivative.
SNCF — Financial Report 2008
Liabilities maturing in less than 12 months at the balance sheet date are recorded in current liabilities.
19 Financial liabilities
The borrowings sub-heading breaks down as follows:
— Ermewa group for €284 million (€268 million in 2007),
— SNCF for €16,342 million (€17,346 million in 2007),
— Other subsidiaries for €698 million (€152 million in 2007).
— Geodis group for €590 million (€431 million in 2007),
The net indebtedness of unconsolidated E.S.H. low-rental housing companies as at 31 December 2008 amounted to €1.5 billion (idem as at 31 December 2007).
19-2 LOANS AND BORROWINGS MATURITY SCHEDULE Financial liabilities mature as follows: 31/12/2008
31/12/2007
Less than 1 year
In € millions
4,411
3,342
1 to 5 years
6,389
7,522
More than 5 years
6,766
7,216
63
48
Changes in fair value (designated at fair value) Changes in fair value (hedge accounting)
285
67
17,914
18,194
Accrued interest payable
250
354
Fair value of non-current derivatives
819
841
Fair value of current derivatives
235
34
Accrued interest payable on derivatives
211
213
19,429
19,636
Total
Total loans and borrowings
Liability derivatives are offset in the amount of €409 million by asset derivatives (€386 million in 2007), including €42 million in current asset derivatives (€23 million in 2007). The maturity schedule for SNCF borrowings, based on year-end exchange and interest rates, is as follows: In € millions
31/12/2008 Nominal
Interest
31/12/2007 Nominal
Interest
Borrowings Less than 1 year
4,399
790
3,277
943
1 to 2 years
2,068
595
2,757
705
2 to 3 years
993
513
1,821
554
3 to 4 years
1,797
458
865
466
4 to 5 years
1,565
383
1,634
423
More than 5 years
6,846
2,400
6,894
2,636
17,668
5,138
17,248
5,726
Total
Page 94
sncf.com
19-3 BREAKDOWN OF LOANS AND BORROWINGS BY FOREIGN CURRENCY
In € millions Euro Swiss franc U.S. dollar Canadian dollar Pound sterling Yen Other Total borrowings
Initial debt structure 31/12/2008 31/12/2007 12,455
Structure after currency hedging 31/12/2008 31/12/2007
13,351
17,357
17,587
835
774
274
245
2,132
1,754
61
65
187
277
-
-
1,799
1,604
222
291
412
334
-
-
93
100
-
6
17,914
18,194
17,914
18,194
Consolidated Financial Statements
The breakdown by foreign currency of loans and borrowings, before and after adjustment for derivatives, is as follows:
19-4 BREAKDOWN OF LOANS AND BORROWINGS BY INTEREST RATE The breakdown by interest rate of loans and borrowings, before and after adjustment for derivatives, is as follows: In € millions Fixed rate Floating rate Total borrowings
Initial debt structure 31/12/2008 31/12/2007 10,945
13,994
Structure after IFRS hedging 31/12/2008 31/12/2007 9,894
12,476
6,969
4,200
8,020
5,718
17,914
18,194
17,914
18,194
The breakdown of borrowings by interest rate takes into account the impact of both hedging derivatives and trading derivatives.
19-5 FAIR VALUE OF FINANCIAL LIABILITIES The net carrying amount and nominal value of liabilities designated at fair value is as follows: In € millions Borrowings at fair value
31/12/2008 Fair value Nominal value 607
545
31/12/2007 Fair value Nominal value 495
449
Page 95
SNCF — Financial Report 2008
The pound sterling denominated debt is fully hedged by pound sterling assets, while Swiss franc denominated debt is partially hedged by Swiss franc assets.
19 Financial liabilities
The fair value of borrowings is as follows: In € millions
Borrowings Cash liabilities Total borrowings
31/12/2008 Net carrying Fair value amount 18,593
17,914
31/12/2007 Net carrying Fair value amount 18,623
18,194
3,219
3,219
4,016
4,024
21,812
21,133
22,639
22,218
20 Derivative financial instruments Current and non-current asset and liability derivative instruments break down as follows: In € millions
31/12/2008 Non-current Current
Total
31/12/2007 Non-current Current
Total
Asset derivative instruments Cash-flow hedging derivatives
-
-
-
11
2
Fair value hedging derivatives
115
2
117
11
4
13 15
Trading derivatives
252
40
292
341
16
358
Total asset derivative instruments
368
42
410
363
23
386
Liability derivative instruments Cash-flow hedging derivatives
107
25
131
30
1
31
Fair value hedging derivatives
286
54
340
348
9
357
Trading derivatives
427
156
583
462
24
486
Total liability derivative instruments
820
235
1,054
841
34
875
As in 2007, derivative instruments primarily concern the parent company. Disclosures concerning subsidiaries are of little significance.
Page 96
sncf.com
20-1 FOREIGN CURRENCY DERIVATIVES
Fair value in the balance sheet as at 31/12/2008 Cash-flow Fair value Trading Total hedge hedge
Fair value in the balance sheet as at 31/12/2007 Cash-flow Fair value Trading Total hedge hedge
Currency swaps (with principal)
-
-
-
-
-
-
-
-
Currency swaps
-
18
229
248
-
4
221
226
Forward foreign currency purchases
-
-
-
-
-
-
-
-
Forward foreign currency sales
-
-
4
4
-
-
-
-
Foreign currency options
-
-
2
2
-
-
-
-
Asset derivative instruments
-
18
235
253
-
4
221
226
Currency swaps (with principal)
-
-
23
23
-
-
4
4
Currency swaps
27
302
290
620
13
328
373
714
Forward foreign currency purchases
25
-
-
25
-
-
-
-
Forward foreign currency sales
-
-
-
-
-
-
-
-
Foreign currency options
-
-
-
-
-
-
-
-
52
302
313
667
13
328
377
718
- 52
- 283
- 78
- 414
- 13
- 324
- 156
- 493
Liability derivative instruments Net foreign currency position
As at 31 December 2008 and 2007, the nominal commitments and maturities of the different instruments subscribed were as follows: Currency swaps with an underlying liability: In € millions Less than 1 year Foreign currency
Swiss franc
Euro equivalent at the year-end exchange rate
Nominal commitments received 31/12/2008 2 to 3 years 3 to 4 years
1 to 2 years Foreign currency
Euro equivalent at the year-end exchange rate
Foreign currency
Euro equivalent at the year-end exchange rate
Foreign currency
Euro equivalent at the year-end exchange rate
4 to 5 years Foreign currency
More than 5 years
Euro equivalent at the year-end exchange rate
Foreign currency
Euro equivalent at the year-end exchange rate
-
-
-
-
-
-
600
404
-
-
300
202
U.S. dollar
1,000
719
1,120
805
100
72
220
158
-
-
100
72
Canadian dollar
150
88
-
-
-
-
-
-
-
-
150
88
125
131
150
157
31
32
21
22
-
-
600
630
Yen
-
-
-
- 10,000
79
-
-
-
- 41,500
329
New Zealand dollar
-
-
-
-
-
-
-
-
-
-
-
-
Hong Kong dollar
-
-
72
7
-
-
-
-
200
19
-
-
Euro
-
-
-
-
-
-
-
-
-
-
60
Pound sterling
Total
938
969
183
584
19
60 1,381
Page 97
SNCF — Financial Report 2008
In € millions
Consolidated Financial Statements
The SNCF Group operates regularly on the foreign currency derivatives market, primarily in order to hedge borrowings issued. The fair value of these instruments in the balance sheet breaks down as follows by instrument and transaction type:
20 Derivative financial instruments
In € millions Less than 1 year Foreign currency
Swiss franc
Euro equivalent at the year-end exchange rate
Nominal commitments received 31/12/2007 2 to 3 years 3 to 4 years
1 to 2 years Foreign currency
Euro equivalent at the year-end exchange rate
Foreign currency
Euro equivalent at the year-end exchange rate
Foreign currency
4 to 5 years
More than 5 years
Euro equivalent at the year-end exchange rate
Foreign currency
Euro equivalent at the year-end exchange rate
Foreign currency
Euro equivalent at the year-end exchange rate
-
-
-
-
-
-
-
-
600
363
300
181
U.S. dollar
50
34
1,000
679
970
659
100
68
220
149
100
68
Canadian dollar
100
69
150
104
-
-
-
-
-
-
150
104
-
-
125
170
150
205
31
42
21
29
600
818 252
Pound sterling Yen
-
-
-
-
-
- 10,000
61
-
- 41,500
New Zealand dollar
100
53
-
-
-
-
-
-
-
-
-
-
Hong Kong dollar
200
17
-
-
72
6
-
-
-
-
200
17
-
-
-
-
-
-
-
-
-
60
Euro Total
-
173
954
In € millions
870
171
541
60 1,500
Nominal commitments given 31/12/2008 Less than 1 year
1 to 2 years
2 to 3 years
3 to 4 years
4 to 5 years
More than 5 years
Euro
1,074
1,160
218
613
22
1,715
Total
1,074
1,160
218
613
22
1,715
4 to 5 years
More than 5 years
In € millions
Nominal commitments given 31/12/2007 Less than 1 year
1 to 2 years
2 to 3 years
3 to 4 years
Euro
179
1,074
1,040
218
599
1,738
Total
179
1,074
1,040
218
599
1,738
Future interest flows, based on year-end exchange rates and future interest rates implicit in the interest rate curve at the balance sheet date for floating rates, are as follows: In € millions
31/12/2008 Interest flows Interest flows received paid
31/12/2007 Interest flows Interest flows received paid
Less than 1 year
173
- 179
191
1 to 2 years
121
- 120
200
- 220 - 222
2 to 3 years
84
- 87
146
- 169
3 to 4 years
74
- 73
108
- 123
4 to 5 years
62
- 63
98
- 102
More than 5 years Total
Page 98
602
- 550
804
- 913
1,117
- 1,072
1,547
- 1,749
sncf.com
Currency swaps with an underlying asset:
Foreign
Euro equivalent at the year-end exchange rate
Nominal commitments given 31/12/2008 2 to 3 years 3 to 4 years
1 to 2 years Foreign
Euro equivalent at the year-end exchange rate
Foreign
Euro equivalent at the year-end exchange rate
Foreign
Euro equivalent at the year-end exchange rate
4 to 5 years Foreign
More than 5 years
Euro equivalent at the year-end exchange rate
Foreign
Euro equivalent at the year-end exchange rate
Swiss franc
-
-
-
-
-
-
600
404
-
-
-
-
U.S. dollar
-
-
550
395
100
72
100
72
-
-
-
-
Canadian dollar
150
88
-
-
-
-
-
-
-
-
150
88
50
52
150
157
-
-
-
-
-
-
-
-
New Zealand dollar
-
-
-
-
-
-
-
-
-
-
-
-
Hong Kong dollar
-
-
72
7
-
-
-
-
200
19
-
-
Pound sterling
Total
141
559
In millions Less than 1 year Foreign
Euro equivalent at the year-end exchange rate
476
Nominal commitments given 31/12/2007 2 to 3 years 3 to 4 years
1 to 2 years Foreign
72
Euro equivalent at the year-end exchange rate
Foreign
Euro equivalent at the year-end exchange rate
Foreign
Euro equivalent at the year-end exchange rate
19
4 to 5 years Foreign
88
More than 5 years
Euro equivalent at the year-end exchange rate
Foreign
Euro equivalent at the year-end exchange rate
363
Swiss franc
-
-
-
-
-
-
-
-
-
-
600
U.S. dollar
-
-
-
-
550
374
100
68
100
68
-
-
Canadian dollar
100
69
150
104
-
-
-
-
-
-
150
104
-
-
50
68
150
205
-
-
-
-
-
-
New Zealand dollar
100
53
-
-
-
-
-
-
-
-
-
-
Hong Kong dollar
200
17
-
-
72
6
-
-
-
-
200
17
Pound sterling
Total
139
172
In millions
584
68
68
484
Nominal commitments received 31/12/2008 Less than 1 year
1 to 2 years
2 to 3 years
3 to 4 years
4 to 5 years
More than 5 years
Euro
169
687
83
472
22
92
Total
169
687
83
472
22
92
4 to 5 years
More than 5 years
In millions
Nominal commitments received 31/12/2007 Less than 1 year
1 to 2 years
2 to 3 years
3 to 4 years
Consolidated Financial Statements
Less than 1 year
Euro
136
169
687
83
472
114
Total
136
169
687
83
472
114 Page 99
SNCF — Financial Report 2008
In millions
20 Derivative financial instruments
Future interest flows, based on year-end exchange rates and future interest rates implicit in the interest rate curve at the balance sheet date for floating rates, are as follows: In € millions
31/12/2008 Interest flows Interest flows received paid
31/12/2007 Interest flows Interest flows received paid
Less than 1 year
51
- 46
74
- 58
1 to 2 years
37
- 40
68
- 68
2 to 3 years
19
- 17
59
- 59
3 to 4 years
10
- 14
29
- 34
4 to 5 years
3
- 5
16
- 31
More than 5 years
3
- 8
10
- 15
123
- 130
256
- 265
Total
20-2 INTEREST RATE DERIVATIVES The Group operates in the interest rate swap and swaption market in order to manage its exposure to interest rate risk on borrowings. The fair value of these instruments in the balance sheet breaks down as follows by instrument and transaction type: In € millions
Fair value in the balance sheet as at 31/12/2008 Cash-flow Fair value Trading TOTAL hedge hedge
Fair value in the balance sheet as at 31/12/2007 Cash-flow Fair value Trading Total hedge hedge
Fixed rate receiver swaps
-
99
14
112
-
6
37
43
Fixed rate payer swaps
-
-
18
18
12
4
77
93
Index-based swaps
-
-
25
25
-
-
23
23
Swaptions
-
-
-
0
1
-
-
1
Asset derivative instruments
-
99
57
156
13
11
136
160
Fixed rate receiver swaps
-
0
16
16
0
0
91
91
77
37
169
282
18
29
10
57
Index-based swaps
-
-
22
22
-
-
8
8
Swaptions
2
2
1
5
-
-
-
-
79
38
209
326
18
29
109
156
- 79
60
- 152
- 170
-5
- 18
28
4
Fixed rate payer swaps
Liability derivative instruments Net interest rate position
Page 100
sncf.com
As at 31 December 2008 and 2007, the nominal value and maturities of the different instruments subscribed were as follows: 31/12/2008 Net long-term Net short-term debt debt
Fixed rate receiver swaps
2,033
1,842
Fixed rate payer swaps
6,290
Index-based swaps
1,764 66
Swaptions
31/12/2007 Net long-term Net short-term debt debt 1,367
2,073
1,054
7,194
1,548
152
1,764
-
3
179
3
Future interest flows, based on year-end exchange rates and future interest rates implicit in the interest rate curve at the balance sheet date for floating rates, are as follows: Net interest flows 31/12/2008 Less than 1 year Fixed rate receiver swaps Fixed rate payer swaps Index-based swaps Rate options (swaptions) Total
1 to 2 years
4 to 5 years
More than 5 years
23
24
21
22
20
235
- 99
- 56
- 44
- 28
- 262
3
2
2
2
2
27
- 20
- 6
- 1
4 to 5 years
More than 5 years - 15
1
1
1
- 29
- 72
- 33
Net interest flows 31/12/2007 Less than 1 year
1 to 2 years
Fixed rate receiver swaps
- 8
Fixed rate payer swaps
- 7
Total
3 to 4 years
- 56
In € millions
Index-based swaps
2 to 3 years
2 to 3 years
3 to 4 years
- 8
- 8
- 7
- 5
1
- 15
1
- 5
63
1
1
1
1
4
143
- 14
- 6
- 22
- 5
- 6
191
Page 101
SNCF — Financial Report 2008
In € millions
Consolidated Financial Statements
In € millions
20 Derivative financial instruments
20-3 COMMODITY DERIVATIVES As part of its normal activities, the parent company operates in the petroleum product hedge market in order to optimise fuel supply costs. It also performs forward purchases of electricity. The fair value of these instruments in the balance sheet breaks down as follows by instrument and transaction type: In € millions
Fair value in the balance sheet as at 31/12/2008 Cash-flow Fair value Trading Total hedge hedge
Fair value in the balance sheet as at 31/12/2007 Cash-flow Fair value Trading Total hedge hedge
Petroleum product swaps
-
-
-
-
-
-
-
-
Sales of petroleum product swaptions
-
-
-
-
-
-
-
-
Forward purchases of electricity
-
-
-
-
-
-
-
-
Asset commodity derivative instruments
-
-
-
-
-
-
-
-
Petroleum product swaps
-
-
61
61
-
-
-
-
Sales of petroleum product swaptions
-
-
-
-
-
-
-
-
Forward purchases of electricity
-
-
-
-
-
-
-
-
Liability commodity derivative instruments
-
-
61
61
-
-
-
-
Net commodity position
-
-
- 61
- 61
-
-
-
-
21 Managing market risks and hedging The management of market risks is governed by a general framework, approved by the SNCF Board of Directors, setting out the management principles for parent company risks that may be hedged by financial instruments. This general framework defines the principles governing the selection of financial products, counterparties and underlyings for derivative products. More specifically, the general framework defines risk limits for the management of euro and foreign currency cash balances and long-term net indebtedness.
21-1 MANAGEMENT STRATEGY
21.1.1 Interest rate risk management The cost of long-term net indebtedness is optimised, with regard to interest rates, by managing the mix of fixed and floating rate borrowings. The Group uses firm and optional interest rate swap instruments within the limits defined, for the parent company, by the aforementioned general framework. From an economic standpoint, fixed-rate borrowings represented 60% of total borrowings as at 31 December 2008 compared to 96% as at 31 December 2007. On the same basis, the cost of long-term net indebtedness in 2007 was 4.30% for fiscal year 2008, compared to 4.84% for 2007.
In addition, it details the delegation and decision-making system and the reporting and control system and its frequency (daily, twice monthly, monthly and annually). Page 102
sncf.com
In fair value hedges, changes in the fair value of hedging instruments and hedged items attributable to fluctuations in market interest rates, largely offset each other in the Income Statement of the period. As such, these instruments are not exposed to interest rate risk. Fluctuations in market interest rates impact the fair value of derivative financial instruments designated as hedging instruments in a cash flow hedging relationship. Such fluctuations are taken into account when assessing the sensitivity of equity. Fluctuations in market interest rates impact the fair value of nonderivative financial instruments designated at fair value. Such fluctuations are taken into account when assessing the sensitivity of the Income Statement. Fluctuations in market interest rates impact the fair value of derivative financial instruments not participating in a hedging relationship as defined by IAS 39. Such fluctuations are taken into account when assessing the sensitivity of the Income Statement. From an accounting standpoint, a 1% increase in the interest rate curve as at 31 December 2008 would have a positive impact on Group net profit (€80 million for 2007) and €46 million on equity (€57 million for 2007). This hypothetical increase of €66 million in Group net profit breaks down as follows: — - €35 million on floating-rate financial instruments not designated as hedged instruments in a cash flow hedging relationship (- €18 million in 2007); — + €35 million on liabilities designated at fair value (+ €31 million in 2007); and — + €66 million on trading derivatives (+€ 67 million in 2007). In addition, the same increase in the interest rate curve would have a positive impact of €28 million on net short-term cash held by the Group (positive impact of €24 million in 2007).
The commercial activities of the Group do not expose it to material foreign currency risk. Except for subsidiaries operating in their own country, Group indebtedness denominated in currencies other than the euro is managed in line with the acceptable risk limit defined, for the parent company, in the same general framework. The Group uses currency swaps for this purpose, generally set-up when the borrowing is issued. Foreign currency-denominated borrowings as at 31 December 2008, after hedging by currency swaps, represented 1.24% of total borrowings, compared to 1.31% as at 31 December 2007.
Consolidated Financial Statements
Floating-rate financial instruments not designated as hedged items in a cash flow hedging relationship are affected by fluctuations in market interest rates. As such, they are included in the analysis of the sensitivity of the Income Statement.
21-1-2 Foreign currency risk management
Given the small percentage of unhedged foreign currencydenominated borrowings, net profit or loss is not, in the Group’s opinion, sensitive to foreign currency risk.
21-1-3 Commodity risk management The Group’s production requirements expose it to the risk of fluctuations in the price of petroleum products. This risk is managed using firm and optional derivatives (swaps, options, caps, floors). For 2008, a 100% hedge of the remaining forecast purchase volumes was set up in early May. The Group does not apply hedge accounting to these transactions.
21-1-4 Counterparty risk management The main transactions which could generate counterparty risk are: Financial investments: 1. Cash and cash equivalents Financial investments are diversified. They primarily consist of negotiable debt instruments (certificates of deposit, commercial paper), treasury note repos and subscriptions to French moneymarket mutual funds (UCITS). Given their short residual term and breakdown, no credit risk exposure is generated. 2. Portfolio of available-for-sale securities During 2008, the Group created a portfolio of medium-term assets to hedge future investment costs. The portfolio is classified in available-for-sale assets (see Note 9). The general
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SNCF — Financial Report 2008
Sensitivity analysis: Fixed-rate financial instruments recorded at amortised cost are not exposed to interest rate risk as defined by IFRS 7.
21 Managing market risks and hedging
drift of credit spreads relating to the financial crisis resulted in the recognition of - €11 million in equity. As at 31 December 2008, the portfolio is not subject to an impairment loss. However, an additional change in the credit spread of 0.50% would have an additional negative impact of €8 million on equity.
The counterparty approval procedure for derivative products also involves the signature of a framework agreement. A collateral agreement is also signed with certain counterparties in order to limit counterparty risk.
Derivatives: Derivative transactions seek to manage interest rate, foreign currency and commodity risk.
21-1-5 Liquidity risk management
The aforementioned general framework defines, for the parent company, the counterparty approval procedure, which is based on a quantitative and qualitative analysis of counterparties. Investment volume and term limits are also defined for each counterparty. The extent to which authorised limits are used, based on future payments or replacement costs, is measured daily and reported.
In € millions
Confirmed credit lines
In € millions
Confirmed credit lines
The parent company assures its daily liquidity through a commercial paper program capped at €3 billion (idem in 2007), with €2.3 billion used as at 31 December 2008 (€2.4 billion as at 31 December 2007) and on average €2.4 billion in 2008, compared to €1.8 billion in 2007. In addition, the parent company has bilateral credit lines of €550 million (€500 million in 2007). Total confirmed credit lines of the Group amount to €958 million (€616 million in 2007) and break down by maturity as follows:
Total as at 31/12/2008 958
Maturity schedule < 1 year
1 to 5 years
> 5 years
548
350
60
Total as at 31/12/2007 616
Maturity schedule < 1 year
1 to 5 years
> 5 years
158
459
-
21-2 CASH FLOW HEDGES The fair value of derivatives designated as cash flow hedges breaks down by hedged item as follows: In € millions
Fair value in the balance sheet as at 31/12/2008
Maturity schedule < 1 year
Bonds
1 to 5 years
> 5 years
-
-
-
-
Non-bond borrowings
- 73
- 25
- 46
- 2
Finance lease obligations
- 59
-
- 46
- 13
-
-
-
-
- 132
- 25
- 92
- 15
Loans and receivables Fair value of derivatives designated as cash-flow hedges
Page 104
sncf.com
The negative amount of €25 million at less than one year concerns forward currency purchases subscribed for the acquisition of IBM Logistic (see Note 36.2). Fair value as at 31/12/2007 < 1 year Bonds Non-bond borrowings Finance lease obligations
> 5 years
-
-
-
-
- 10
1
- 11
-
- 8
-
- 11
3
-
-
-
-
- 18
1
- 22
3
Loans and receivables Fair value of derivatives designated as cash-flow hedges
Maturity schedule 1 to 5 years
Consolidated Financial Statements
In € millions
The impact on equity, profit or loss for the period and reserves breaks down as follows:
Transferred to profit or loss Changes in effective portion Changes in value of available-for-sale assets Closing balance (31/12/2008)
Transferable equity - 22 19 - 126 - 20 - 149
A deferred tax asset for €11 million was offset in equity with respect to changes in the effective value. The change in fair value net of deferred tax is negative at €116 million over 2008. In € millions Opening balance (01/01/2007)
Transferable equity - 72
Transferred to profit or loss
70
Changes in effective portion
- 18
Changes in value of available-for-sale assets Closing balance (31/12/2007)
- 2 - 22
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SNCF — Financial Report 2008
In € millions Opening balance (01/01/2008)
21 Managing market risks and hedging
21-3 FAIR VALUE HEDGES Asset and liability items hedged as to fair value are initially recorded at amortised cost and subsequently remeasured at each balance sheet date based on the fair value of the risk hedged. Fair value gains and losses on the hedged risk are offset, except for the ineffective portion, by gains and losses on the hedging derivative. In € millions Valuation difference as at 1/01/2008
Change in fair value
Reclassification of transactions no longer meeting qualification criteria
Valuation difference as at 31/12/2008
Bonds
299
Non-bond borrowings
- 11
-163
4
140
-
11
Finance lease obligations
-
-
-
-
-
RFF receivable
4
12
5
22
Other financial assets
-
18
-
18
292
- 132
20
180
- 342
121
- 1
- 222
Reclassification of transactions no longer meeting qualification criteria
Valuation difference as at 31/12/2007
Total Hedging derivatives Ineffectiveness
- 12
In € millions Valuation difference as at 1/01/2007
Change in fair value
Bonds
107
192
-
299
Non-bond borrowings
- 28
17
-
- 11
-
-
-
-
19
- 16
1
4
Finance lease obligations RFF receivable Other financial assets Total Hedging derivatives Ineffectiveness
Page 106
-
-
-
-
98
193
1
292
- 155
- 198
11
- 342
- 5
sncf.com
22 Operating payables and other accounts in credit 31/12/2008
31/12/2007
Change
3,505
3,345
160
o/w amounts payable to suppliers of PP&E
523
507
17
Payments received on account for orders
633
411
222
511
288
223
Employee-related liabilities
o/w advances received on sales of PP&E
1,477
1,283
194
Amounts payable to the French State and local authorities
1,086
946
140
772
905
- 133
Other operating payables Investment grants
6,423
5,792
631
Deferred income
1,061
1,221
- 160
14,957
13,903
1,054
31/12/2008 17
31/12/2007 -
Total operating payables
23 Assets and liabilities classified as held for sale In € millions Assets classified as held for sale Liabilities relating to assets classified as held for sale Net impact on balance sheet
38
-
- 21
-
Assets held for sale primarily concern the Geodis parcel delivery activity in Spain (see Note 36.2) and rolling stock put up for sale. The assets and liabilities of the Spanish parcel delivery activity were reclassified at their net carrying amount. No tax income or expense was recognised for this activity in profit or loss. The main financial aggregates for this activity are as follows: — Income: €65 million in profit or loss for 2008 (€72 million for 2007). — Expenses: €104 million in profit or loss for 2008 (€85 million for 2007). — Contribution of the business to cash flows from activities:
- operating: -€15 million in 2008 (-€13 million in 2007); - investing: -€1 million in 2008 (€0 million in 2007); - financing: €2 million in 2008 (€0 million in 2007).
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SNCF — Financial Report 2008
In € millions Trade payables and related accounts
Consolidated Financial Statements
Operating payables break down as follows:
24 Segment reporting Primary segment reporting in accordance with IAS 14 is presented by business segment. Secondary segment reporting
is presented by geographical area. Revenue primarily stems from services provided (passenger and freight transport).
24-1 BUSINESS SEGMENT
24-1-1 Business segment results for the years ended 31 December 2008 and 2007 In € millions Passenger France Europe
Local Transport
Transport and Logistics
31/12/2008 Infrastructure and Engineering
External revenue
6,308
6,168
7,814
4,307
591
Internal revenue
1,161
172
213
515
3,711
- 5,773
Revenue
7,469
6,340
8,027
4,823
4,302
- 5,773
Current operating profit
1,133
141
- 86
-186
- 22
Operating profit
1,097
111
-26
- 506
181
856
Depreciation & amortisation
- 404
- 313
- 274
- 71
- 195
- 1,257
Net charge to provisions
- 36
- 4
- 81
- 127
- 106
- 354
Impairment losses
- 33
- 37
27
- 324
-
- 368
Passenger France Europe
Local Transport
Transport and Logistics
31/12/2007 Infrastructure and Engineering
Common operations
External revenue
5,786
5,749
7,421
4,060
582
Internal revenue
1,105
159
212
472
3,607
- 5,556
Revenue
6,891
5,908
7,633
4,532
4,190
- 5,556
In € millions
Page 108
Common operations
Inter-division
Total
25,188 25,188 980
Inter-division
Total
23,598 23,598
sncf.com
Current operating profit Operating profit Depreciation & amortisation Net charge to provisions Impairment losses
Passenger France Europe
Local Transport
888
60
31/12/2007 Infrastructure and Engineering - 12 - 77
Transport and Logistics
Common operations
Inter-division
721
Total 1,580
896
38
68
-78
747
1,672
- 415
- 321
- 242
- 64
- 134
- 1,176
- 15
- 26
- 43
- 2
- 45
- 131
4
- 21
- 2
- 1
-
- 21
Consolidated Financial Statements
In € millions
24-1-2 Balance sheet items by business segment as at 31 December 2008 and 2007 Passenger France Europe Goodwill
Local Transport
Transport and Logistics
31/12/2008 Infrastructure and Engineering
Inter-division
Total
Total
4
-
623
3
3
90
23
172
40
171
496
6,560
8,801
2,732
131
4,162
22,384
84
73
53
-
199
410
Inventories and workin-progress
1
1
20
318
410
751
Operating receivables
572
583
1,870
1,358
1,199
-
-
17
-
-
7,311
9,480
5,487
1,850
6,144
106
152
114
159
372
Intangible assets Property, plant and equipment Investments in associates
Assets classified as held for sale Total segment assets Non-current provisions Current provisions Operating receivables Liabilities relating to assets classified as held for sale Total segment liabilities
- 348
5,234 17
- 348
29,924 903
27
1
96
3
25
1,865
7,243
2,087
1,669
2,441
-
-
38
-
-
1,998
7,395
2,335
1,830
2,838
- 348
16,049
Passenger France Europe
Local Transport
Transport and Logistics
Infrastructure and Engineering
Common operations
Inter-division
Total
3
-
502
-
2
In € millions
Goodwill
633
151 - 348
14,957 38
31/12/2007
509
Page 109
SNCF — Financial Report 2008
In € millions
24 Segment reporting
In € millions
31/12/2007 Passenger France Europe
Local Transport
Transport and Logistics
Infrastructure and Engineering
Common operations
73
15
154
34
133
409
6,702
7,815
2,278
476
3,522
20,794
Investments in associates
-
57
53
-
184
294
Inventories and workin-progress
1
-
20
238
354
613
Operating receivables
550
623
1,278
1,267
1,563
-
-
-
-
-
7,328
8,510
4,285
2,017
5,758
82
87
114
48
167
Intangible assets Property, plant and equipment
Assets classified as held for sale Total segment assets Non-current provisions Current provisions Operating receivables
42
3
171
5
37
1,736
6,344
1,962
1,572
2,607
-
-
-
-
-
1,859
6,434
2,246
1,625
2,811
Liabilities relating to assets classified as held for sale Total segment liabilities
Inter-division
- 317
Total
4,963 -
- 317
27,582 498 258
- 317
13,903 -
- 317
14,658
24-2 GEOGRAPHICAL AREA In € millions France
Intangible assets
31/12/2008 Europe "Rest excluding of the France world”
Total
France
31/12/2007 Europe "Rest excluding of the France world”
Total
485
9
2
496
290
119
-
409
Property, plant & equipment
22,202
178
4
22,384
20,557
225
12
20,794
Total intangible assets and PP&E
22,687
187
6
22,880
20,847
344
12
21,203
Investment grants Assets owned outright
Page 110
6,423
-
-
6,423
5,791
1
-
5,792
16,264
187
6
16,458
15,056
343
12
15,411
sncf.com
25 Purchases and external charges Purchases, sub-contracting and other external charges break down as follows as at 31 December 2008: 31/12/2007
Variation
Sub-contracting
- 3,595
- 3,288
- 307
Tolls (1)
- 3,038
- 2,760
- 277
Other purchases and external charges
- 5,211
- 4,891
- 320
Total purchases and external charges
- 11,843
- 10,939
- 904
(1) Tolls invoiced by RFF and Eurotunnel
Reversals of used provision amounts were essentially reclassified as a deduction of other purchases and external charges for 2007 on a comparable basis with 2008. This reclassification gave rise to a €133 million decrease in purchases and external charges compared to the amount published in 2007 (see Note 1.4.5).
26 Employee benefits expense and headcount As at 31 December 2008, the employee benefits expense and headcount break down as follows: In € millions Wages and salaries Pension and other benefits (1) Profit-sharing and incentive schemes Stock options Rebilled, seconded and temporary employees Total Employee benefits expense Average number of full-time employees
31/12/2008
31/12/2007
Variation
- 9,722
- 9,314
- 408
45
609
- 564
- 25
- 27
2
- 2
- 3
1
- 137
- 174
37
- 9,841
- 8,909
- 932
201,339
201,545
- 206
(1) Following its creation on 29 June 2007, benefit obligations incumbent on SNCF were transferred to the SNCF Employee Pension and Provident Fund (CPRP) as at 30 June 2007.
In addition, the impact of the reverse discounting of employee obligations in liabilities is recorded in finance costs under the heading Finance cost of employee benefits (see Note 30). A portion of the reversals of used provision amounts was deducted from wages and salaries in 2007 on a comparable basis with 2008. This reclassification gave rise to a €10 million decrease in wages and salaries compared to the amount published in 2007 (see Note 1.4.5).
Page 111
Consolidated Financial Statements
31/12/2008
SNCF — Financial Report 2008
In € millions
27 Depreciation and amortisation The net charge to depreciation and amortisation as at 31 December 2008 net of grant reversals breaks down as follows: In € millions
31/12/2008
31/12/2007
Variation
- 1,595
- 1,466
- 129
338
290
48
- 1,257
- 1,176
-81
Depreciation and amortisation Grants released to profit or loss Depreciation and amortisation, net of grants
Depreciation and amortisation concerns: — intangible assets in the amount of €82 million (€68 million in 2007); — property, plant and equipment in the amount of €1,513 million (€1,398 million in 2007).
28 Impairment losses The assumptions and CGUs adopted are presented in Note 8. The impacts on the income statement are as follows: In € millions Intangible assets and property, plant and equipment Goodwill Provisions for contingencies and losses Impairment losses
28-1 SNCF INFRASTRUCTURE The impairment loss recognised for SNCF Infrastructure as at 31 December 2008 amounts to €325 million and covers buildings.
28-2 SNCF FREIGHT The Freight CGU business plan presented a loss for the period. As the projected cash flows based on this forecast were also negative, an impairment loss was recognised to reduce the net carrying amount of Freight assets to their present value (market value). However, the Group was unable to validate the market value of all assets.
Page 112
31/12/2008
31/12/2007
Variation
- 379
- 34
- 345
-
-
-
11
14
-3
- 368
- 21
- 347
Accordingly, as in previous years, the Group was left with a partial and generalised impairment for rolling stock: — for old rolling stock, 100% or 40% impairment based on the type and age of the equipment; — for newer equipment and firm order commitments, flat-rate impairment limited to 10% given market requirements. A provision was recognised for all assets whose net carrying amount exceeded fair value, less individual costs to sell. Overall, an additional impairment of €46 million was recorded for rolling stock (including rolling stock in progress), for a total amount of €571 million as at 31 December 2008 (total net value before impairment of €1.5 billion).
sncf.com
28-4 CORAIL INTERCITY
The impairment losses recognised concern the Transport and Logistics business.
All Corail Intercity rolling stock is impaired. As at 31 December 2008, an additional net impairment loss of €41 million (€27 million in 2007) was recognised with respect to the net assets of Corail Intercity.
28-3 TRADITIONAL ROLLING STOCK (CORAIL, ELIPSOS)
28-5 FRANCE WAGONS
All so-called traditional rolling stock – Corail, Elipsos – is impaired. As at 31 December 2008, an additional impairment loss was recognised for €9 million.
An impairment loss reversal of €61 million was recognised as at 30 June 2008 for the France Wagons cash generating unit and specifically the unit’s cars.
Consolidated Financial Statements
At this stage, the company considers that this provision level represents the best estimate of impairment losses to be recognised.
29 Net proceeds from asset disposals Disposal of intangible assets Disposal of property, plant and equipment Disposal of investments Total net proceeds from asset disposals
31/12/2008
31/12/2007
Change
3
- 1
5
244
96
148
- 3
17
- 20
244
112
132
Net proceeds from the disposal of property, plant and equipment in 2008 correspond to sales of real estate. Net proceeds from the sale of investments for €17 million in 2007 concern the sale of Ermewa France by SNCF Participations and Cofital to the Ermewa Group, owned 49.1% by SNCF Group.
30 Net borrowing costs Net borrowing costs break down as follows: In € millions
31/12/2008
31/12/2007
Interest expense
- 856
- 1,176
320
Interest income
402
1,003
- 601
- 454
- 173
- 281
31/12/2008
31/12/2007
Change - 221
Net borrowing costs and other In € millions
Change
Net changes in fair value and hedges
- 201
20
Net borrowing costs
- 253
- 193
- 60
Total
- 454
- 173
- 281
Net changes in fair value and hedges records gains and losses on financial instruments at fair value through profit or loss, the ineffective portion of hedges, and the change in fair value of borrowings using the fair value option.
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SNCF — Financial Report 2008
In € millions
31 Income tax expense 31-1 ANALYSIS OF THE INCOME TAX EXPENSE In € millions
31/12/2008
31/12/2007
Variation
Current tax (expense)/income
- 37
- 53
15
Deferred tax (expense)/income
287
353
- 65
Total
250
300
- 50
A €627 million deferred tax asset was recognised as at 31 December 2007 in respect of tax losses carried forward by the parent company, due to the overall profitability outlook for the coming years. The increase in the deferred tax asset was offset in the amount of €272 million via the use of tax losses during the year. The net impact on profit or loss is €353 million. An additional deferred tax asset was recognised for €393 million as at 31 December 2008 due the high probability of recovery for the Group’s tax loss carry-forwards. The increase in the deferred tax asset was offset in the amount of €107 million via the use of tax losses during the year. The net impact on profit or loss is €287 million.
31-2 TAX PROOF In € millions Consolidated net profit for the year Share in profit of associates Net loss from operations sold
31/12/2008
31/12/2007
593
1,109
32
37
- 40
- 13
Corporate income tax
250
300
Net profit before tax from ordinary activities
352
785
34.43 %
34.43 %
- 121
- 270
Income tax rate applicable in France Theoretical income tax (expense)/income Permanent differences
- 20
- 9
Capitalisation of prior year losses not capitalised
393
627
Tax losses and temporary differences of the period not capitalised
- 22
- 62
Profits offset against tax losses not capitalised Differences in tax rates and tax credits Income tax (expense)/income recorded Effective tax rate
Page 114
5
6
14
8
250
300
- 70.96 %
- 38.22 %
sncf.com
31-3 TAX ASSETS NOT RECOGNISED
Tax assets not recognised at this date totalled €2.0 billion, compared to €2.3 billion as at 31 December 2007.
31-4 DEFERRED TAXES RECOGNISED In € millions
Tax losses carried forward Employee benefits Amortisation difference - overhaul component Finance leases
31/12/2007
Net profit/(loss)
2,683
- 372
363
- 11
- 404
30
Equity
Change in consolidation scope and change
31/12/2008
-
-
2,310
- 1
-
351
-
-
- 374
96
- 9
-
- 3
83
Tax-driven provisions
- 43
9
-
1
- 33
Financial instruments
47
- 70
88
30
-
Internal profits and losses
34
26
-
-
60
Non-deductible provisions
418
224
2
- 2
642
Other temporary differences
- 18
- 12
11
- 6
- 25
- 2,263
317
- 29
2
- 1,973
Net deferred tax assets recognised
796
287
12
- 7
1,088
Deferred tax assets
895
Deferred tax assets not recognised
Deferred tax liabilities Deferred taxes net balance sheet position
1,185
99
97
796
1,088
Page 115
SNCF — Financial Report 2008
SNCF opted for the tax grouping regime on 1 July 1988. As at 31 December 2008, the tax group comprised 50 subsidiaries, including SeaFrance, SNCF Participations, and France Wagons.
Consolidated Financial Statements
Group tax losses carried forward as at 31 December 2008 amounted to €6.4 billion, compared to €7.6 billion as at 31 December 2007.
32 Off-balance sheet commitments Commitments given Total commitment Discounted notes not yet matured
31/12/2008 Amount of commitments per period Less than 1 to 5 More than one year years 5 years
31/12/2007 Total commitment
-
-
-
-
-
722
353
226
143
792
Endorsements and guarantees
(3)
Guarantees given in respect of loans secured by employees
(5)
1,001
1,001
-
-
1,111
Rail equipment purchase commitments
(1)
6,952
1,879
3,981
1,092
8,200
-
-
-
-
-
(2)
2,811
1,602
1,206
2
2,069
Share purchase commitments Other purchase commitments for operations
58
6
52
1
-
Equipment operating lease
Equipment finance lease
315
105
155
55
277
Property lease
119
22
76
21
1,233
Property operating lease
(6)
1,062
215
643
204
Security interests and pledges
(7)
1,167
19
102
1,046
762
370
350
20
-
256
27
13
15
-
12
-
-
-
-
-
Advances repayable to third parties
65
7
23
35
288
Forward currency purchases
20
20
-
-
-
-
-
-
-
-
Capitalised export receivables
-
-
-
-
-
Trade receivables assigned
4
-
4
-
-
Other commitments given
62
19
14
29
-
Total commitments given
14,754
5,610
6,516
2,629
15,000
Offers to sell – real estate Investment call and put options Regional investment commitment (TER)
Financial recovery clause
Page 116
sncf.com
Guarantees given in respect of loans secured by employees Rail equipment purchase commitments
(4)
Other purchase commitments for operations
31/12/2008 Amount of commitments per period Less than one year
1 to 5 years
More than 5 years
31/12/2007 Total commitment
1
1
-
-
1
2,115
843
1,153
119
2,800 86
443
96
256
91
Equipment finance lease
-
-
-
-
-
Equipment operating lease
-
-
-
-
117
Property lease Property operating lease
-
-
-
-
-
(6)
270
23
142
105
339
-
-
-
-
-
(8)
958
548
350
60
616
Security interests and pledges Undrawn bank credit lines Forward currency purchases
15
15
-
-
-
419
329
90
-
363
Investment call and put options
-
-
-
-
-
Financial recovery clause
-
-
-
-
-
Other commitments received
125
13
107
6
-
Total commitments received
5,155
1,934
2,824
397
5,271
Offers to sell – real estate
(1) Commitments given concern firm orders for rolling stock. Commitments received correspond to investment grants receivable from Regional authorities for ordered rolling stock (TER and Transilien). (2) Other operating purchase commitments given concern firm orders for contracts and various purchases (infrastructure, electricity, transport contracts, intellectual services, etc.). (3) Guarantees given concern €153 million (€216 million in 2007) in guarantees granted by the parent company in respect of SOFIAP (formerly SOCRIF) bank borrowings, and customs guarantees granted by Geodis in connection with its activity for €203 million (€192 million in 2007). (4) Guarantees received virtually all concern a joint and several sight counter-guarantee given to the parent company in respect of the loans granted to SOFIAP. They perfectly match. (5) Total outstanding on guarantees given by the parent company in respect of real estate loans secured by employees. Statistically, guarantee calls are very limited. (6) In 2007, the increase in real estate operating lease commitments given and received included the signature of leaseholds in future state of completion for buildings in Marseille, Paris, Lyon and Rouen. In return for the lease commitment, the lessor undertook to complete the building and deliver it to the future tenant at an agreed date. (7) Among the security interests and pledges: — Securities pledge for TNT Freight Forwarding (renamed Geodis Wilson) for €428 million (idem in 2007) and Geodis Freight Management for €67 million. These pledges were withdrawn in January 2009 on the full repayment of the loans outstanding (see Note 36.1); — Securities pledge for the Ermewa group for €89 million (idem in 2007); — Various Ermewa backed securities for bankers in the amount of €236 million (see Note 32.2.1); — Pledge for NTV securities paid as at 31 December 2008 for €49 million with respect to creditors as a guarantee of NTV solvency until repayment of the financing; — Transport equipment pledge for €225 million to secure a loan; (8) For the unused credit line (see Note 21.1.5).
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Consolidated Financial Statements
Total commitment
SNCF — Financial Report 2008
Commitments received
32 Off-balance sheet commitments
32-1 LEASE TRANSACTIONS
32-2 ERMEWA
SNCF carried out transactions in the form rather than substance of a lease. These transactions comprised:
32-2-1 Secondary lbo and commitment given by Ermewa to the banks
— The leasing of a qualified technological equipment network to a US lessor, who immediately sub-leases it to SNCF for a maximum period of 16 years. The assets in question are all the SNCF ticket sale and reservation equipment; or
The shareholders of Financière ERMEWA SA, IPES and SNCF Participations performed a secondary LBO during the first half of 2007. The agreements reiterate all governance provisions implemented to date. The main terms and conditions of the new exit agreements are as follows:
— The sale of rolling stock (Corail TEOZ cars, TGV trains, etc. commissioned or to be delivered, etc.) to an investor who immediately sub-leases it to SNCF for a determined period of 4 to 18 years according to the contracts. In certain cases, the lessor is a fiscally transparent special entity created for this transaction that can only operate for this purpose. During the sub-leasing (16 years) or leasing (4 to 18 years) periods, all payments made and received in connection with the lease offset each other and do not impact the financial statements, apart from the net profit recognised in the transaction period (see Note 4.10). This profit corresponds to the retrocession of a portion of the tax deferral obtained by the investor. The asset sold or leased is maintained in the Group balance sheet. At the end of the sub-leasing or leasing periods, SNCF has several options based on the type of transaction: — exercise a purchase option at a pre-determined price, thus maintaining its initial profit; — give the equipment to the lessor, who will use it for his own purpose; — give the equipment to the lessor, for whom SNCF will act as market sales agent for the equipment, guaranteeing a sale price at least equal to the amount of the purchase option; — resell the equipment on the lessor’s behalf, for a resale commission. The use, replacement, operation or definition of assets is in no way affected. The risks borne by SNCF are limited to equipment ownership, the risks generated by French law, and counterparty risks covered by collateralization contracts.
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— a 2-year lock-in period, — at the end of this period, IPES may only withdraw by selling its investment to SNCF Participations, either by exercising at fair value a put option granted by SNCF Participations to IPES during a period of 30 months, or during a subsequent period of 30 months via a call option granted to SNCF Participations by IPES, — should SNCF Participations exercise the call option during the 30-month period, IPES may exercise a call option for the containers business, provided that IPES indicates its decision to exercise this option before SNCF Participations confirms the exercise of its own option, — IPES will then have a new 3-month put option at the end of the SNCF Participations call option, which will be followed by a new SNCF Participations call option, also of 3 months, — during this second exercise period, SNCF Participations may alternatively exercise a call option covering the freight car business only, — an IPO may be considered at any time during the investment period, — at the end of the initial investment period (7 years and 6 months) described above, it is provided that the shareholders may either renew their agreements or implement an exit strategy based on an IPO or third-party sale. SNCF Participations’ investment in Financière Ermewa was transferred to Transports et Logistique Partenaires (TLP), a wholly-owned subsidiary of SNCF Participations, in November 2007. TLP assumed all rights and obligations under the various agreements.
sncf.com
In addition, as part of the recapitalisation of Ermewa in April 2003, SNCF Participations granted several guarantees to Ermewa Group companies which remain in effect at the end of 2008:
The measurement and recognition of SNCF Participations’ commitment is governed by IFRS 2, as the “management package” is considered to be cash-settled.
— a guarantee (signed 22 April 2003) granted by SNCF Participations to Financière Ermewa concerning the past management of the Ermewa Group. This guarantee is capped at €18 million or €9 million Group share (idem in 2007). It remains valid solely for matters that are not yet statute-barred.
The commitment of each shareholder is assessed at the balance sheet date based on its investment in the Ermewa Group.
The valuation of the commitment is reviewed each year as manager rights vest. As the value of the commitment in the period is not material, an expense was not recorded.
— a guarantee relating to the management of the Ermewa Group maritime division (signed 22 April 2003) granted to Financière Ermewa, Ermewa Group and Ermewa SAS, not capped as to amount and valid until 31 July 2011,
32-3 KEOLIS
a counter-guarantee (signed 9 July 2004) for vendor warranties granted by ERMEWA Group companies to the purchaser of the maritime division, capped at €3.5 million, or €1.7 million Group share, expiring in 2010.
All commitments existing as at 31 December 2006 in respect of the shareholding restructuring operation were replaced by the following commitments since 2007.
SNCF Participations did not grant any new guarantees as a result of the implementation of the secondary LBO.
32-2-2 Management profit-sharing The Ermewa Group management profit-sharing mechanism is primarily governed by the Argonautes Investissements Shareholders’ Agreement. SNCF Participations and IPES sold to Argonautes Investissements, a structure owned by management, Financière Ermewa options valued at fair value and conferring entitlement to a variable number of participation certificates (capped at 4.8% of the share capital of Financière Ermewa). These options may only be exercised under certain circumstances and in accordance with procedures set out in the Shareholders’ Agreement (and notably achievement of a certain IRR). In addition, the Manager-Investors hold options enabling them to sell their Argonautes Investissements securities to SNCF Participations and IPES, mirrored by call options covering these same securities held by SNCF Participations and IPES: the selling price of securities primarily depends on the date at which the options are exercised (the proportion of securities available for
32-3-1 Procedures for the transfer or sale of Kuvera Développement securities
Kebexa Participations, AXA Private Equity, Caisse de Dépôt et Placement du Québec and SNCF Participations signed a shareholders’ agreement on 20 April 2007 defining the terms of governance of Kuvera Développement and procedures for the sale or transfer of securities. Kuvera Développement is held by Kebexa Participations, SNCF Participations and the managers. Kebexa Participations is itself held by AXA Private Equity and the Caisse de Dépôt et placement du Québec. The shareholders’ agreement is valid for a period of 15 years. It will however cease to apply to any party on the sale of their Kuvera Développement or Kebexa Participations securities and will automatically terminate in the event of an IPO by Kuvera or any Keolis Group company. The following commitments were given under the shareholders’ agreement of 20 April 2007: — 5-year lock-in period applicable to Kebexa Participations and Kuvera Développement securities, except for transfers expressly authorized by the shareholders’ agreement. — After this period and during 6 years, that is from 20 April 2012 to 20 April 2018, SNCF Participations grants a purchase undertaking to Kebexa Participations covering all its Kuvera
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Consolidated Financial Statements
sale at fair value varies between 0% and 100% after 6 years) and, where applicable, the exit method of one of the shareholders.
SNCF — Financial Report 2008
In order to secure financing for the secondary LBO and the financial restructuring of the sub-group, Ermewa granted a number of guarantees to lending banks totalling €475 million (€414 million in 2007), or €236 million Group share (€205 million in 2007).
32 Off-balance sheet commitments
Développement securities and exercisable early after the 31 December 2009 and 31 December 2010 year-ends if performance criteria are not satisfied (consolidated EBITDA). The exercise price will correspond to the market value (based on the enterprise value of Kuvera Développement) at the exercise date. During the term of the purchase undertaking, a mechanism also exists should only one of the Kebexa shareholders wish to sell their investment. — At the end of a period of 2 years following the lock-in period and during a period of 4 years, that is from 20 April 2014 to 20 April 2018, Kebexa Participations grants SNCF Participations a purchase undertaking covering all Kuvera Développement securities, at an exercise price corresponding to the market value at the date of exercise. — At the end of the lock-in period, which is from 20 April 2012, Kebexa Participations will hold joint pre-emption and sale rights in the event of a transfer by SNCF Participations of its Kuvera Développement securities. — At the end of the term of the purchase undertaking, that is from 20 April 2018, SNCF Participations will hold a right of sale enforceable against Kebexa Participations and in the event of the sale by Kebexa Participations of its Kuvera Développement securities, joint pre-emption and sale rights. — Throughout the entire term of the shareholders’ agreement, in the event of a change in control of one of the main shareholders of Kebexa Participations, a mechanism exists to enable SNCF to purchase or have purchased the securities held by the shareholder having undergone a change in control. — SNCF Participations may request a highly-reputed third party of its choice to take its place for the exercise of the purchase undertaking granted to Kebexa Participations or the sale undertaking granted by Kebexa Participations.
32-3-2 Dividend distribution commitments In the shareholders’ agreement, SNCF Participations, Kebexa, AXA and CDPQ undertook to approve in shareholders’ meeting the distribution each year of a minimum Kuvera Développement dividend, subject to compliance with legal limits and criteria relating to consolidated current net profit and the debt ratio of Kuvera Développement.
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In addition, SNCF Participations holds Kuvera Développement preference shares conferring preferential financial rights (amount of the preferred dividend and priority entitlement to any liquidation bonus on liquidation).
32-3-3 Relations with managers SNCF Participations gave commitments to managers in the amount of €7 million, together with the following commitments for a period of 15 years under the shareholders’ agreement signed on 20 April 2007 by Kuvera Développement shareholders: — In the event of the transfer by Kebexa Participations of all its Kuvera Développement securities, SNCF Participations and Kebexa Participations will be entitled to require managers to sell their Kuvera Développement securities. — Managers grant SNCF Participations and Kebexa Participations a sales undertaking covering their securities and Kuvera Développement share subscription warrants that must be exercised jointly in the amount of 46.8% by SNCF Participations and 53.2% by Kebexa Participations. The calculation of the sales price will depend on the date and reasons for the managers’ departure. — SNCF Participations and Kebexa Participations grant managers a purchase undertaking covering the entire term of the shareholders’ agreement and their investment in Kuvera Développement in the event of permanent disability or death. This undertaking must be exercised jointly in the amount of 46.8% by SNCF Participations and 53.2% by Kebexa Participations. — In order to guarantee the repayment of a €7.3 million loan maturing 2016, granted by the Neuflize bank to the company representing managers, SNCF Participations granted a partial purchase undertaking to this company covering Kuvera Développement securities, which would enable it to repay this loan and any corresponding interest. This undertaking may be exercised directly by the Neuflize bank if the loan is not paid on maturity. In return, the Neuflize bank granted a sales undertaking to SNCF Participations covering any securities that it may hold following the realisation of the pledge over Kuvera securities granted by managers.
sncf.com
— pledge of Financière Keos securities by Kuvera Développement, — pledge by Financière Keos of its bank accounts, — pledge by Financière Keos of Keolis and Keolis UK securities.
32-3-5 Vendor warranties An out-of-court agreement was signed on 20 April 2007 between SNCF Participations and Eole, under which SNCF Participations paid compensation of €7 million to Eole. In return, Eole waived entitlement to the vendor warranties granted by SNCF Participations in respect of Keolis and its subsidiaries and investments, except for those relating to the Competition inquiry commissioned by the French Competition Council in respect of Keolis subsidiaries.
SNCF, as an industrial and commercial public institution wholly owned by the French State (via French Government Shareholding Agency), is related, within the meaning of IAS 24, Related Party Disclosures, to all companies and entities controlled by the French State. As the ultimate objective of IAS 24 is to draw the attention of financial statement users to the terms and conditions of transactions not forming part of normal business activities between the Group and third parties with which it has privileged relations, the Group has excluded from related-party disclosures all transactions entered into on an arm’s length basis.
Consolidated Financial Statements
In guarantee of the loan contract signed on 24 May 2007 between Financière Keos and a consortium of banks, concerning a loan contract for a maximum principal amount of €395 million and the opening of revolving credit facilities for a total maximum amount of €200 million, the following collateral was pledged in favour of the financial institutions:
33 Related-party transactions
SNCF Group has identified the following related parties: — the French State for all relations with it in its role as shareholder; conversely, taxes paid pursuant to ordinary law are excluded from the scope of related party transactions, — transport organising authorities, — RFF, — ICF group E.S.H. low-rental housing companies.
32-4 STVA
Only transactions entered into by the parent company are presented below. Other Group companies do not have material transactions with related parties.
As part of the set-up within STVA of a corporate savings scheme, whose funds are managed by Crédit Agricole Epargne Salariale, SNCF Participations undertook to assure the liquidity of the STVA mutual fund (created specifically for this purpose), whose assets primarily comprise STVA shares.
33-1 TRANSACTIONS WITH THE FRENCH STATE The information presented below concerns transactions entered into with the French State via its ministries, central authorities and transport organising authorities, not governed by ordinary law.
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SNCF — Financial Report 2008
32-3-4 Collateral
33 Related-party transactions
33-1-1 Public assistance Public assistance granted to the company by the State and local communities is presented in the following table: In € millions Operating grants received
31/12/2008
31/12/2007
23
21
-
404
Contribution to the Employee Pension and Provident Fund
1,472
1,392
Total French State (central)
1,495
1,817
Contribution to the Special Debt Account
33-1-2 Grants received SNCF receives investment grants in the form of third-party financing, primarily from local authorities, for TER rolling stock. The investment grants are recorded in the balance sheet and released to profit or loss on the depreciation line, over the economic useful life of the corresponding assets. In € millions
31/12/2008
31/12/2007
Investment grants
1,354
1,055
Total regions
1,354
1,055
33-2 TRANSACTIONS WITH TRANSPORT ORGANISING AUTHORITIES Services provided with transport organising authorities (including STIF) recorded in revenue amounted to €3,344 million for 2008, compared to €3,120 million in 2007.
33-3 TRANSACTIONS WITH OTHER STATE COMPANIES Transactions between SNCF and other State companies (EDF, France Telecom, La Poste, etc.) are all performed on an arm’s length basis, except for transactions entered into by mutual agreement with RFF, for whom SNCF currently remains one of its main customers. Income and expenses: In € millions
31/12/2008
31/12/2007
Revenue with RFF
4,062
3,836
Tolls paid to RFF
2,882
2,596
Revenue net of tolls
1,180
1,240
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sncf.com
Balance sheet headings:
RFF net receivable
31/12/2008 (*)
RFF payables RFF net balance sheet position
31/12/2007
414
774
367
241
47
533
* Excluding the financial receivable presented separately in balance sheet assets
As these transactions are between related parties owned by the French State, credit risk is considered nil. No doubtful receivables have been identified.
Consolidated Financial Statements
In € millions
All other transactions entered into by the Group with related parties are performed on an arm’s length basis.
Balance sheet headings: In € millions Current financial assets
31/12/2008
31/12/2007
1
1
Non-current financial assets
386
377
Current financial liabilities
132
232
Non-current financial liabilities Related party net balance sheet position
-
-
256
146
Non-current financial assets primarily comprise building loans granted by SNCF and ICF to E.S.H. subsidiaries and equity investments of the E.S.H. subsidiaries. The latter amounted to €120 million and are included in available-for-sale assets (see Note 9). Financial liabilities represent E.S.H. subsidiary investments with ICF. Transactions with HLM low-rental companies recorded in the Income Statement are not material.
33-5 TRANSACTIONS WITH ASSOCIATES Transactions with associates are not material.
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SNCF — Financial Report 2008
33-4 TRANSACTIONS WITH ICF GROUP E.S.H. LOW-RENTAL HOUSING COMPANIES
34 Management compensation Key management personnel of the Group consist of members of the SNCF Management Committee. Cumulative compensation paid in 2008 is as follows: 31/12/2008
31/12/2007
Variation 3
Number of managers concerned
15
12
Average number of managers during the year
12
12
-
4
3
1
Total compensation in € million
35 Litigation and disputes The company is involved in a number of legal proceedings and disputes in the course of its operating activities, which are unresolved at the year-end. Provisions are recorded to cover the charges associated with these disputes where they are considered probable and they can be quantified or estimated with reasonable accuracy.
35-1 FRANCE TELECOM In October 2000, SNCF initiated a suit against France Télécom before the Paris Administrative Court in order to obtain payment of damages with respect to the installation of telecommunication cables on SNCF rail property between 1991 and 1997. By notification dated 11 March 2004, the Paris Administrative Court rejected the SNCF suit on the grounds that the company had no reason to act in accordance with Article 6 of the law of 13 February 1997. SNCF appealed the ruling on 28 May 2004 before the registry of the Paris Administrative Appeal Court. In its decision of 24 May 2007, the Paris Appeal Court again rejected the SNCF suit. SNCF appealed to the Council of State on 30 July 2007 and filed an initial brief at the end of October 2007. Proceedings are therefore still in progress.
35-2 COMPETITION-RELATED DISPUTES Karavel, Promovacances.com, Lastminute and Switch respectively filed complaints with the French Competition Council on 5 August 2002, 25 June 2004 and 4 April 2007 with respect to on-line travel practices carried out by SNCF Group and Expédia.
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Following proceedings during the summer of 2008 and the decision of SNCF not to challenge the grievances (article L 462-2 III of the French Commercial Code), in addition to hearings before the French Competition Council on 2 and 9 December 2008, the Council handed down its ruling on 5 February 2009. Under the ruling, SNCF was ordered to a pay a €5 million fine. The Council also acknowledged the commitments undertaken by the SNCF Group, underlining in its press release that they would provide greater visibility to rail companies arriving on the market, subsequent to the opening of competition to international passenger transport.
35-3 TRANSPORTATION OF DEPORTEES DURING THE SECOND WORLD WAR
On 6 June 2006, the Toulouse administrative court ordered SNCF and the French State to pay, respectively, €20,000 and €40,000 to the beneficiaries of Messrs Spyritus and Lipietz. The suit cited the involvement of SNCF and the French State, between May and August 1944. in the arrest in Pau of these individuals and their relatives, their transportation by train from Pau to Toulouse and subsequently to Paris-Austerlitz, and their imprisonment for approximately 3 months at the Drancy camp (they were not deported). In thus ordering SNCF to compensate the claimants for one third of the damages suffered, the Toulouse administrative court considered: — that their action was not time-barred, the starting point for the decennial time limit being deferred, in the court’s opinion, from 1944 to the publication in 1996 of the Rapport Bachelier, a documentary report, since prior to this publication the SNCF’s role was unknown, — and that SNCF was liable given that it was autonomous and could have opposed the inhuman transport conditions.
sncf.com
In accordance with the Company’s arguments, the court considered that SNCF, a semi-public company at the time and therefore a private law corporation, operated an industrial and commercial public service and, accordingly, that it only transported persons of Jewish origin from stations close to administrative detention centres to stations serving transit centres (with a view to their subsequent deportation), under the authority of the German occupation forces and at the State’s request or requisition. The court emphasized that the conditions under which the transports at issue were carried out, particularly the train composition, the type of cars used, the interior layout and the entries to these cars, like the conditions of treatment of deportees, “were determined by the occupier and implemented under the State’s authority”, and hence that SNCF could not be seen as “having, through the requisite services, performed an administrative public service [in this case an administrative police operation], nor as having the prerogatives of public authority, the exercise of which being the source of the damage” and that, consequently, only the judiciary was competent to decide. The beneficiaries of Messieurs Lipietz and Spyritus filed an appeal before the Council of State on 25 May 2007 against the decision of the Bordeaux Administrative Appeal Court. In a decision issued 21 December 2007, the Council of State rejected the appeal and confirmed that the administrative court was not competent to hear the case, thereby rejecting the argument that SNCF unilaterally conferred on itself a deportation administrative public service or solicited the creation of such a service by contractual means and profited therefrom.
36-1 WITHDRAWAL OF PLEDGES ON GEODIS FREIGHT FORWARDING AND GEODIS FREIGHT MANAGEMENT To finance the acquisition of TNT Freight Management (Geodis Wilson) and the change in the Group’s working capital requirement, Geodis secured a syndicated loan in January 2007 that was underwritten by BNP Paribas. To partially finance the January 2008 acquisition of Rhode & Liesenfeld, a loan was secured with Caisse Régionale de Crédit Agricole Mutuel de Paris et d’Ile de France. At the initiative of Geodis, all of these loans were repaid in advance in January 2009, and the Geodis Freight Forwarding and Geodis Freight Management security pledges were thus withdrawn.
36-2 TERMINATION OF GEODIS IBERIA ACTIVITY Geodis Iberia parcel delivery has posted recurring losses since 2005. The Group thus decided to terminate this activity and, in December 2008, negotiated its sale to the Azkar group, Spain’s leading parcel delivery company. The Group classifies this revenue transfer as a discontinued operation, and pursuant to IFRS 5 Non-current assets held for sale and discontinued operations, the transfer was presented separately in the consolidated financial statements for the year ended 31 December 2008. The balance sheet and income statement items relating to Geodis Iberia were reclassified under a separate income statement heading, “Net profit from discontinued operations” and in assets and liabilities. The 2007 net profit was restated to be comparable with 2008. Following negotiations with the Azkar group, all revenue will be transferred between mid January and March 2009. In return, Azkar pledges to retain between 190 and 240 employees of the 486 working for Geodis Iberia. A redundancy plan was announced on 7 January 2009. As this was subsequent to the 31 December 2008 balance sheet date and as the plan’s cost could not be reliably determined, no provision was recognised.
The 367 suits pending hearing before 23 administrative courts should be rejected by judicial order.
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Consolidated Financial Statements
In a unanimous decision dated 27 March 2007, the Bordeaux Administrative Appeal Court overruled the Toulouse Administrative Court declaring that the administrative jurisdiction was not competent to hear the case.
36 Post-balance sheet events
SNCF — Financial Report 2008
In July 2006, SNCF appealed this ruling before the Bordeaux Administrative Appeal Court. The French State did not appeal.
36 Post-balance sheet events
36-3 ACQUISITION OF IBM LOGISTIC
36-4 SEAFRANCE
On 2 December 2008, Geodis announced the acquisition of IBM Global Logistic, world platform for the management of IBM logistics activities. This acquisition was materialised by the purchase of 58 businesses in various countries. The transaction amounted to $365 million, paid in US dollars on 2 March 2009.
On 17 February 2009, the maritime subsidiary SeaFrance announced its intention to eliminate 650 jobs, or 40% of its workforce, as part of a recovery plan to deal with the severe economic and financial crisis. The company is planning to resize its fleet in order to adapt to its market and cut its operating costs. The project is vital for a return to breakeven as of 2010. As the redundancy plan was announced subsequent to the balance sheet date, the financial consequences will be taken into account in 2009 once the terms and conditions are approved and quantified.
37 Scope of consolidation 37-1 NUMBER OF CONSOLIDATED COMPANIES The number of companies consolidated by SNCF Group breaks down as follows:
Fully consolidated companies Proportionately consolidated companies
31/12/2008
31/12/2007
445
413
75
72
Equity-accounted companies
313
250
Total scope of consolidation
833
735
37-2 DETAILED SCOPE OF CONSOLIDATION Consolidation methods — FC: Full consolidation — PC: Proportionate consolidation — EA: Equity accounted
Percentage interest: share in the share capital of the consolidated company held by the consolidating company, either directly or indirectly. Percentage control: percentage of voting rights held by the consolidating company in the consolidated company, either directly or indirectly.
— NC: Not consolidated
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sncf.com
Company
Country
Subgroup
M
PC Year N
PI Year N
PC Year N-1
PI Year N-1
FC
100.00
100.00
100.00
100.00
FR
PASSENGER FRANCE EUROPE FR
PFE-P
FC
100.00
100.00
100.00
100.00
ALLEO
A2C
GER
PFE-P
PC
50.00
50.00
50.00
50.00
Artesia
FR
PFE-P
PC
50.00
50.00
50.00
50.00
Brit Cities Limited
GB
PFE-P
FC
100.00
100.00
100.00
100.00
CRM Services Elipsos Eurostar Group
FR
PFE-P
FC
100.00
100.00
100.00
100.00
SPA
PFE-P
PC
50.00
50.00
50.00
50.00
GB
PFE-P
FC
62.00
62.00
62.00
62.00
USA
PFE-P
FC
100.00
100.00
100.00
100.00
French Railways Ltd
GB
PFE-P
FC
100.00
100.00
100.00
100.00
French Travel Service
GB
PFE-P
FC
100.00
100.00
100.00
100.00
GIE SysRailData
FR
PFE-P
FC
100.00
100.00
100.00
100.00
IDTGV
FR
PFE-P
FC
100.00
100.00
100.00
100.00
Intercapital Regional Rail Ltd
GB
PFE-P
EA
35.00
35.00
35.00
35.00
L'Agence Voyages-sncf.com
FR
PFE-P
FC
50.10
50.10
50.10
50.10
Lyria
FR
PFE-P
FC
74.00
74.00
74.00
74.00
NTV
FR
PFE-P
EA
20.00
20.00
-
-
Parvis
FR
PFE-P
FC
100.00
100.00
100.00
100.00
French Rail Incorporated
Rail Europe Benelux
BEN
PFE-P
FC
100.00
100.00
100.00
100.00
Rail Europe Deutschland
GER
PFE-P
FC
100.00
100.00
100.00
100.00
Rail Europe Espana
SPA
PFE-P
FC
100.00
100.00
100.00
100.00
GB
PFE-P
FC
100.00
100.00
100.00
100.00
USA
PFE-P
FC
88.00
88.00
88.00
88.00
ITA
PFE-P
FC
100.00
100.00
100.00
100.00
Rail Europe Group Limited Rail Europe Group Inc Rail Europe Italia Rail Europe Limited
GB
PFE-P
FC
100.00
100.00
100.00
100.00
Rail Europe Suisse
SWI
PFE-P
FC
100.00
100.00
100.00
100.00
RailLink bv
NDL
PFE-P
EA
25.00
25.00
-
-
Railteam bv
NDL
PFE-P
EA
25.00
25.00
25.00
25.00
RE 4A
FR
PFE-P
PC
50.00
50.00
50.00
50.00
SAM Paris Nord
FR
PFE-P
FC
60.00
60.00
60.00
60.00
BEL
PFE-P
FC
62.00
62.00
62.00
62.00
GB
PFE-P
FC
100.00
100.00
100.00
100.00
Thalys International Transmanche Night Travel Ltd VALGA
FR
PFE-P
FC
100.00
100.00
100.00
100.00
PFE e-commerce
FR
PFE-P
FC
100.00
100.00
100.00
100.00
PFE Partenaires SA
FR
PFE-P
FC
100.00
100.00
100.00
100.00
Voyages-SNCF.com
FR
PFE-P
FC
100.00
100.00
100.00
100.00
VSC Technologies
FR
PFE-P
FC
100.00
100.00
100.00
100.00
Page 127
SNCF — Financial Report 2008
SNCF
Consolidated Financial Statements
PARENT COMPANY
37 Scope of consolidation
Company
Country
Subgroup
M
PC Year N
PI Year N
PC Year N-1
PI Year N-1
FR
Arep
FC
100.00
100.00
100.00
100.00 25.00
ENGINEERING AND INFRASTRUCTURE Arep Arep Architecture
FR
Arep
EA
25.00
25.00
25.00
CHN
Arep
FC
100.00
100.00
-
-
FR
Arep
FC
100.00
100.00
100.00
100.00
Canarail consultant
CAN
Systra
PC
39.86
28.49
39.86
28.49
Citilabs Inc
USA
Systra
PC
50.00
34.82
50.00
24.70
Citilabs Ltd
GB
Systra
PC
50.00
34.82
50.00
24.70
Arep Pékin Arep Ville
Consulcio Consultor Systra Financière Systra
CHILI
Systra
PC
20.00
14.35
20.00
14.35
FR
Systra
PC
50.00
50.00
50.00
50.00
Foncière du Coq
FR
Systra
PC
50.00
35.87
50.00
35.87
INEXIA
FR
INEXIA
FC
100.00
100.00
100.00
100.00
Mexistra
MEX
Systra
PC
50.00
35.87
50.00
35.87
MVA Asia
HK
Systra
PC
50.00
35.87
50.00
35.87
CHN
Systra
EA
25.00
17.93
25.00
17.93
MVA Consulting Group
MVA Beijing
GB
Systra
PC
50.00
35.87
50.00
35.87
MVA Hong Kong Limited
HK
Systra
PC
50.00
35.87
50.00
35.87
MVA limited
GB
Systra
PC
50.00
35.87
50.00
35.87
MVA Shenzen
HK
Systra
PC
50.00
35.87
50.00
35.87 35.87
MVA Singapour
SIN
Systra
PC
50.00
35.87
50.00
MVA Thaïlande
THAI
Systra
PC
49.99
35.86
49.99
35.86
RWPM Saoudi Arabia
S. AR
Systra
PC
21.75
13.85
21.75
13.85 100.00
SNCF International
FR
SNCFI
FC
100.00
100.00
100.00
SNSR-PMA JV Saoudi Arabia
S.AR
Systra
PC
21.75
13.85
21.75
13.85
Soget
USA
Systra
PC
50.00
35.87
50.00
35.87
FR
Systra
PC
32.50
23.31
32.50
23.31
ALG
Systra
NC
-
-
50.00
35.87
SOTEC Ingénierie Systra Algérie
HK
Systra
PC
45.00
32.28
45.00
32.28
Systra Consulting
Systra Asia Pacific Ltd
USA
Systra
PC
50.00
35.87
50.00
35.87 35.87
Systra Consulting Co Ltd
CHN
Systra
PC
50.00
35.87
50.00
Systra GCP SA
SPA
Systra
NC
-
-
27.50
19.73
Systra Inc
USA
Systra
PC
50.00
35.87
50.00
35.87
Systra Ingeneria SL
SPA
Systra
PC
47.50
34.07
47.50
34.07
GB
Systra
PC
50.00
35.87
50.00
35.87
Systra Maroc
MOR
Systra
PC
49.90
35.79
49.90
35.79
Systra MVA India Pte Ltd
INDI
Systra
PC
50.00
35.87
50.00
35.87
Systra Philippines
PHIL
Systra
PC
32.97
23.65
32.97
23.65
FR
Systra
PC
50.00
35.87
50.00
35.87
Systra Ltd
Systra SA Systra Singapore Pte Ltd
SIN
Systra
PC
50.00
35.87
50.00
35.87
Systra Sotecni Spa
ITA
Systra
PC
50.00
35.87
50.00
35.87 35.87
Systra Venezuela
VEN
Systra
PC
50.00
35.87
50.00
Systra Venezuela
VEN
Systra
PC
50.00
35.87
-
-
CHILI
Systra
PC
25.00
17.93
25.00
17.93
CAN
Systra
PC
39.29
28.59
-
-
Systracade Taylor Raynault Amar & Associate Ltd Page 128
sncf.com
Company
Country
Subgroup
M
PC Year N
PI Year N
PC Year N-1
PI Year N-1
FR
STVA
FC
100.00
82.08
100.00
82.08
AFA
ITA
CME
PC
50.00
50.00
50.00
50.00
Agrofreight
AUT
Ermewa
EA
25.00
12.27
25.00
12.27
Ain Express
FR
Geodis
FC
100.00
100.00
69.85
30.11
Aisne Express
FR
Geodis
FC
100.00
99.93
100.00
43.08 82.08
Akidis
FR
STVA
FC
100.00
82.08
100.00
GER
Geodis
FC
100.00
100.00
-
-
Alpes Maritimes Express
FR
Geodis
FC
100.00
100.00
100.00
43.11
Artois Express
FR
Geodis
FC
49.90
49.90
49.90
21.51
Ateliers d'Orval
FR
Ermewa
PC
49.60
49.10
49.60
49.10
Audas Distribution
FR
Geodis
FC
100.00
100.00
100.00
43.11
Aveyron Express
FR
Geodis
FC
100.00
100.00
100.00
43.11
Batrans
FR
STVA
FC
100.00
82.08
100.00
82.08
ALLHAND Allgemeine Warenhendelsges, mbH
Blazy
FR
Geodis
FC
100.00
100.00
100.00
43.11
BM Chimie
FR
Geodis
FC
100.00
100.00
100.00
43.11
LUX
Geodis
FC
100.00
100.00
100.00
43.11
BM Services
FR
Geodis
FC
100.00
100.00
100.00
43.11
BM Virolle
FR
Geodis
EA
35.50
35.50
-
-
Bouches du Rhône Express
FR
Geodis
FC
100.00
100.00
100.00
43.11
Bourgey Montreuil (Holding)
FR
Geodis
FC
100.00
100.00
100.00
43.11
Bourgey Montreuil Alimentaire
FR
Geodis
FC
100.00
100.00
100.00
43.11
Bourgey Montreuil Alsace
FR
Geodis
FC
100.00
100.00
100.00
43.11
Bourgey Montreuil Aquitaine
FR
Geodis
FC
100.00
100.00
100.00
43.11
Bourgey Montreuil Atlantique
FR
Geodis
FC
99.97
99.97
99.97
43.10
Bourgey Montreuil Automotive Est
FR
Geodis
FC
100.00
100.00
100.00
43.11
Bourgey Montreuil Automotive Ouest
FR
Geodis
FC
100.00
100.00
100.00
43.11
BM Luxembourg
Bourgey Montreuil Auvergne
FR
Geodis
FC
100.00
100.00
100.00
43.11
GER
Geodis
FC
100.00
100.00
100.00
43.11
Bourgey Montreuil Equipement 1
FR
Geodis
FC
100.00
100.00
100.00
43.11
Bourgey Montreuil Equipement 2
FR
Geodis
FC
100.00
100.00
100.00
43.11
Bourgey Montreuil Equipement 3
FR
Geodis
FC
100.00
100.00
100.00
43.11
Bourgey Montreuil Francilienne
FR
Geodis
FC
100.00
100.00
100.00
43.11
Bourgey Montreuil Ile de France
FR
Geodis
FC
100.00
100.00
100.00
43.11
Bourgey Montreuil Italia
ITA
Geodis
FC
99.75
99.75
99.75
43.00
Bourgey Montreuil Limousin
FR
Geodis
FC
100.00
100.00
100.00
43.11
Bourgey Montreuil Lorraine
FR
Geodis
FC
100.00
100.00
100.00
43.11
Bourgey Montreuil Nord
FR
Geodis
FC
100.00
100.00
100.00
43.11
Bourgey Montreuil Normandie
FR
Geodis
FC
100.00
100.00
100.00
43.11
Bourgey Montreuil Picardie
FR
Geodis
FC
100.00
100.00
99.96
43.09
Bourgey Montreuil Deutschland
Bourgey Montreuil Presse
FR
Geodis
FC
100.00
100.00
100.00
43.11
Bourgey Montreuil Provence
FR
Geodis
FC
100.00
100.00
100.00
43.11
Bourgey Montreuil Rhône-Alpes
FR
Geodis
FC
100.00
100.00
100.00
43.11
Bourgey Montreuil Savoie
FR
Geodis
FC
100.00
100.00
100.00
43.11 Page 129
SNCF — Financial Report 2008
A.A.T.
Consolidated Financial Statements
TRANSPORT AND LOGISTICS
37 Scope of consolidation
Company
Country
Subgroup
M
PC Year N
PI Year N
PC Year N-1
PI Year N-1
Bourgey Montreuil Spécialités
FR
Geodis
FC
100.00
100.00
100.00
43.11
Brixia Zust S.r.l
ITA
Geodis
EA
30.00
30.00
30.00
30.00
C.A.A.T.
FR
STVA
FC
100.00
82.08
100.00
82.08
C.W.S.
FR
CWS
EA
33.93
33.93
33.93
33.93
CADEFER
SPA
CADEFER
EA
20.00
20.00
20.00
20.00
Calberson Alsace
FR
Geodis
FC
100.00
100.00
100.00
43.11
Calberson Ardennes
FR
Geodis
FC
99.90
99.90
99.90
43.07
Calberson Armorique
FR
Geodis
FC
100.00
100.00
100.00
43.11
Calberson Aube
FR
Geodis
FC
95.02
95.02
95.02
40.97
Calberson Autun
FR
Geodis
FC
100.00
100.00
100.00
43.11
Calberson Auvergne
FR
Geodis
FC
100.00
100.00
100.00
43.11
Calberson Bretagne
FR
Geodis
FC
100.00
100.00
100.00
43.11
Calberson Eure et Loir
FR
Geodis
FC
99.04
99.04
99.04
42.70
Calberson Europe Ile-de-France
FR
Geodis
FC
100.00
100.00
100.00
43.11
Calberson Europe Nord
FR
Geodis
FC
100.00
100.00
100.00
43.11
Calberson Europe Rhône-Alpes
FR
Geodis
FC
100.00
100.00
100.00
43.11
Calberson F.M.
FR
Geodis
FC
100.00
100.00
100.00
43.11
Calberson GE
FR
Geodis
FC
100.00
100.00
99.97
43.11
GRE
Geodis
FC
52.00
52.00
52.00
22.42
Calberson Grèce Calberson Hainaut
FR
Geodis
FC
100.00
100.00
100.00
43.11
HUN
Geodis
NC
-
-
100.00
43.11
Calberson Ile de France
FR
Geodis
FC
100.00
100.00
100.00
43.11
Calberson International
FR
Geodis
FC
100.00
100.00
100.00
43.11
Calberson Location
FR
Geodis
FC
100.00
100.00
100.00
43.11
Calberson Loiret
FR
Geodis
FC
100.00
100.00
100.00
43.11
Calberson Lorraine
FR
Geodis
FC
100.00
99.98
100.00
43.10
Calberson Hungaria
Calberson Méditerranée
FR
Geodis
FC
100.00
100.00
100.00
43.11
Calberson Moselle
FR
Geodis
FC
100.00
100.00
100.00
43.11
Calberson Normandie
FR
Geodis
FC
100.00
100.00
100.00
43.11
Calberson Oise
FR
Geodis
FC
100.00
100.00
100.00
43.11
Calberson Paris
FR
Geodis
FC
99.99
99.99
99.99
43.11
Calberson Picardie
FR
Geodis
FC
100.00
100.00
100.00
43.11
Calberson Rhône Alpes
FR
Geodis
FC
100.00
100.00
100.00
43.11
ROM
Geodis
FC
100.00
100.00
100.00
43.11
Calberson Roussillon
FR
Geodis
FC
100.00
100.00
100.00
43.11
Calberson SAS
FR
Geodis
FC
100.00
100.00
100.00
43.11
Calberson Seine et Marne
FR
Geodis
FC
100.00
100.00
100.00
43.11
Calberson Seine-Saint-Denis
FR
Geodis
FC
100.00
100.00
100.00
43.11
SLO
Geodis
FC
100.00
100.00
100.00
43.11
Calberson Sud-Ouest
FR
Geodis
FC
100.00
100.00
100.00
43.11
Calberson Yvelines
FR
Geodis
FC
100.00
100.00
100.00
43.11
Calopération
FR
Geodis
FC
100.00
100.00
100.00
43.11
Calvados Express
FR
Geodis
FC
100.00
100.00
100.00
43.11
Calberson Romania
Calberson Slovakia
Page 130
sncf.com
Subgroup
M
PC Year N
PI Year N
PC Year N-1
PI Year N-1
Car & Commercial
GB
STVA
FC
100.00
82.08
100.00
82.08
Car & Commercial Deliveries
GB
STVA
FC
100.00
82.08
100.00
82.08
Car & Commercial Land
GB
STVA
FC
100.00
82.08
100.00
82.08
Cargo Docks
ITA
Cargo Docks
FC
100.00
100.00
100.00
100.00
Cargo Link AB
SWE
Geodis
FC
93.89
93.89
93.89
40.48
CFD Industrie
FR
VFLI
FC
100.00
100.00
100.00
100.00
Challenge International Belgium
BEL
Sealogis
FC
99.98
94.99
99.95
66.40
Challenge International Méditerranée
FR
Sealogis
FC
100.00
95.00
100.00
66.44
Challenge International SA
FR
Sealogis
FC
95.00
95.00
66.44
66.44
Challenge Overseas Caraïbes
FR
Sealogis
FC
65.98
62.68
65.92
43.80
Chaveneau Bernis Transport
FR
Geodis
FC
99.92
72.32
99.92
31.18
AUT
Ermewa
PC
24.80
24.55
24.80
24.55
Chemfreight Gmbh Cical
FR
Ermewa
EA
24.79
18.40
24.79
18.40
Cobatrans
FR
STVA
FC
96.00
78.80
96.00
78.80
Cofital
FR
STVA
FC
100.00
82.08
100.00
82.08
Cogewip
FR
STVA
FC
100.00
80.51
100.00
80.51
Cogip
FR
Geodis
NC
-
-
34.00
34.00
USA
Geodis
NC
-
-
100.00
43.11
FR
Ermewa
PC
49.60
49.08
49.60
49.08
Combined Logistics, Inc. New 2006 Compagnie des Conteneurs Réservoirs
CZ. R
Geodis
FC
100.00
100.00
100.00
43.11
Compagnie Modalohr Express Holding
Compagnie Européenne de Services
FR
CME
FC
50.98
50.98
51.00
51.00
Coquelle Gourdin
FR
Sealogis
FC
98.33
98.30
98.33
98.30
Creneau SA
FR
Geodis
FC
100.00
100.00
100.00
43.11 66.35
CTC Dieter Liesenfeld GmbH Districhrono
FR
CTC
FC
73.07
66.35
73.07
GER
Geodis
FC
100.00
100.00
-
-
FR
Districhrono
FC
100.00
100.00
100.00
100.00
Drôme Express
FR
Geodis
FC
100.00
100.00
100.00
43.11
Dusolier Calberson
FR
Geodis
FC
99.94
99.94
100.00
43.09
Ecorail
FR
Ecorail
FC
100.00
100.00
100.00
100.00
Edifret
FR
EDIFRET
FC
100.00
100.00
100.00
100.00
Egerland France
FR
STVA
FC
51.00
49.90
51.00
49.90
Ermechem
FR
Ermewa
EA
66.59
49.62
66.59
49.62
Ermefer Genève
SWI
Ermechem
NC
-
-
-
-
Ermefret Berlin
GER
Ermewa
PC
49.60
49.10
49.60
49.10
Ermefret Italie
ITA
Ermewa
PC
66.23
65.89
66.23
65.89
Ermewa (Berlin)
GER
Ermewa
PC
49.60
49.10
49.60
49.10
Ermewa (Genève)
SWI
Ermewa
PC
49.60
49.10
49.60
49.10
Ermewa (Paris)
FR
Ermewa
PC
49.60
49.10
49.60
49.10
Ermewa Ferroviaire
FR
Ermewa
PC
49.60
49.10
49.60
49.10
Ermewa France
FR
Ermewa
PC
49.60
49.10
49.60
49.10
Ermewa Iberica
SPA
Ermewa
PC
49.60
49.10
49.60
49.10
Ermewa Intermodal
FR
Ermewa
PC
49.60
49.10
49.60
49.10
Ermewa investissements
FR
Ermewa
PC
49.60
49.10
-
-
Page 131
Consolidated Financial Statements
Country
SNCF — Financial Report 2008
Company
37 Scope of consolidation
Company
Country
Subgroup
M
PC Year N
PI Year N
PC Year N-1
PI Year N-1
Euromatic Belgium
BEL
Geodis
FC
100.00
100.00
100.00
43.11
Eurotainer Asie
SIN
Ermewa
PC
49.60
49.10
49.60
49.10
Eurotainer Inc
USA
Ermewa
PC
49.60
49.10
49.60
49.10
FR
Ermewa
PC
49.60
49.10
49.60
49.10
CHN
Ermewa
PC
49.60
49.10
49.60
49.10
FR
Ermewa
PC
34.79
36.09
34.79
34.84
Eurotainer SAS Eurotainer Shanghai EVS Exceed AB
SWE
Geodis
FC
100.00
100.00
100.00
43.11
Exceed Denmark A/S
DEN
Geodis
FC
100.00
100.00
100.00
43.11
Exceed Finland Oy
FIN
Geodis
FC
100.00
100.00
100.00
43.11
Exceed Sweden AB
SWE
Geodis
FC
100.00
100.00
100.00
43.11
Express Seine-et-Marne
FR
Geodis
FC
100.00
100.00
100.00
43.11
Férifos
FR
Ermewa
PC
49.60
49.10
49.60
49.10
Feron de Clebsattel
FR
Sealogis
FC
99.97
99.97
99.95
99.97
Ferrus Immo Financière Ermewa
FR
STVA
FC
100.00
82.08
100.00
82.08
SWI
Ermewa
PC
49.60
49.10
49.60
49.10
Flandre Express
FR
Geodis
FC
100.00
100.00
100.00
43.11
Fondimare
FR
Sealogis
FC
100.00
95.00
100.00
66.44
Fortec Distribution Network Ltd
GB
Geodis
FC
100.00
100.00
100.00
43.11
France Location Distribution
FR
Geodis
FC
100.00
100.00
100.00
43.11
France Toupie Location
FR
Geodis
FC
100.00
100.00
-
-
France Wagons
FR
France Wagons
FC
100.00
100.00
100.00
100.00
Freight Europe UK
GB
Freight Eur. UK
FC
100.00
100.00
100.00
100.00
Freight Management France SAS
FR
Geodis
FC
100.00
100.00
100.00
43.11
Froidcombi
FR
Froidcombi
FC
49.00
49.00
49.00
49.00
Gard Express
FR
Geodis
FC
100.00
100.00
100.00
43.11
Gemafer
FR
VFLI
FC
100.00
100.00
100.00
100.00 43.11
Geodis
FR
Geodis
FC
100.00
100.00
43.11
Geodis Afrique
FR
Geodis
FC
100.00
99.99
100.00
43.11
Geodis Antilles
FR
Geodis
FC
100.00
99.99
100.00
43.11
Geodis Automotive Nord Geodis Belgium NV Geodis BM Rakotrans
FR
Geodis
FC
100.00
100.00
-
-
BEL
Geodis
FC
100.00
100.00
100.00
43.11
CZ.R
Geodis
FC
52.00
52.00
52.00
22.42
Geodis BM Réseau
FR
Geodis
FC
100.00
100.00
100.00
43.11
Geodis BM Unitrans
POL
Geodis
FC
100.00
100.00
52.00
22.42
RUSS
Geodis
FC
100.00
100.00
100.00
43.11
CAM
Geodis
FC
90.18
90.17
90.18
38.88
Geodis Calberson Lipetsk Geodis Cameroun Geodis Co Ltd
DE.R KOR
Geodis
FC
100.00
100.00
100.00
43.11
Geodis Côte d’Ivoire
IV.C
Geodis
FC
100.00
99.99
100.00
43.11
Geodis Deutschland
GER
Geodis
FC
100.00
100.00
99.99
43.11
Geodis Division Messagerie Services
FR
Geodis
FC
100.00
100.00
100.00
43.11
Geodis Freight Forwarding
FR
Geodis
FC
100.00
100.00
100.00
43.11
Geodis Freight Management
FR
Geodis
FC
100.00
100.00
100.00
43.11
Geodis Gestion Immobilière
FR
Geodis
FC
100.00
100.00
100.00
43.11
Page 132
sncf.com
Subgroup
M
PC Year N
PI Year N
PC Year N-1
PI Year N-1
NDL
Geodis
FC
100.00
100.00
98.71
43.11
Geodis Holding Italia
ITA
Geodis
FC
100.00
100.00
100.00
43.11
Geodis Holdings UK Limited
GB
Geodis
FC
100.00
100.00
100.00
43.11
SPA
Geodis
FC
99.44
99.44
99.44
42.11
Geodis Ile-de-France Service
FR
Geodis
FC
100.00
100.00
99.99
43.11
Geodis Immobiliare Italia
ITA
Geodis
FC
100.00
100.00
100.00
43.11
Geodis International
FR
Geodis
FC
100.00
100.00
100.00
43.11
Geodis Interservices
FR
Geodis
FC
100.00
100.00
100.00
43.11
Geodis Ireland Ltd
IRL
Geodis
FC
100.00
100.00
100.00
43.11
Geodis Logistics
FR
Geodis
FC
100.00
100.00
100.00
43.11
BEL
Geodis
FC
100.00
100.00
-
-
Geodis Logistics Champagne-Ardennes Est
FR
Geodis
FC
100.00
100.00
100.00
43.11
Geodis Logistics Euromatic
FR
Geodis
FC
100.00
100.00
100.00
43.11
Geodis Logistics Europarts
FR
Geodis
FC
99.97
99.97
100.00
43.11
Geodis Logistics Ile-de-France
FR
Geodis
FC
100.00
100.00
100.00
43.11
Geodis Iberia
Geodis Logistics Belgium NV
Geodis Logistics Maroc
MOR
Geodis
FC
99.90
99.89
99.90
43.06
Geodis Logistics Méditerranée
FR
Geodis
FC
100.00
100.00
100.00
43.11
Geodis Logistics Nord
FR
Geodis
FC
100.00
100.00
100.00
43.11
Geodis Logistics Nord-Ouest
FR
Geodis
FC
100.00
100.00
100.00
43.11
Geodis Logistics Ouest
FR
Geodis
FC
100.00
100.00
100.00
43.11
Geodis Logistics Polska
POL
Geodis
FC
100.00
100.00
100.00
43.11
FR
Geodis
FC
100.00
100.00
100.00
43.11
SPA
Geodis
FC
100.00
99.44
-
-
Geodis Logistics Rhône-Alpes Geodis Logistics Spain Geodis Logistics Sud
FR
Geodis
FC
100.00
100.00
100.00
43.11
Geodis Logistics Sud-Ouest
FR
Geodis
FC
100.00
100.00
100.00
43.11
HUN
Geodis
FC
100.00
100.00
100.00
43.11
Geodis Networks
FR
Geodis
FC
100.00
100.00
100.00
43.11
Geodis Oil and Gaz
FR
Geodis
FC
100.00
99.99
100.00
43.11
Geodis Overseas (Taïwan) Ltd
TWN
Geodis
FC
100.00
100.00
100.00
43.11
Geodis Overseas (Thaïland) Ltd
THAI
Geodis
FC
100.00
100.00
100.00
43.11
HK
Geodis
FC
100.00
100.00
100.00
43.11
Geodis Overseas India
INDI
Geodis
FC
100.00
100.00
100.00
43.11
Geodis Overseas International Freight Forwarding
CHN
Geodis
FC
100.00
100.00
100.00
43.11
Geodis Overseas Maroc
MOR
Geodis
FC
100.00
99.99
100.00
43.11
Geodis Overseas Mexico
MEX
Geodis
FC
100.00
100.00
100.00
43.11
POL. FR
Geodis
FC
93.85
93.84
93.85
40.45
INDO
Geodis
FC
90.00
90.00
90.00
38.80
SIN
Geodis
FC
100.00
100.00
100.00
43.11 38.78
Geodis Magyarorszag Logisztikai Kft
Geodis Overseas Hong Kong Ltd
Geodis Overseas Polynésie Geodis Overseas PT Indonesia Geodis Overseas Pte Ltd Geodis Overseas Réunion
FR
Geodis
FC
89.95
89.94
89.95
Geodis Overseas Transport (Thaïland)
THAI
Geodis
FC
100.00
100.00
100.00
43.11
Geodis Overseas Tunisie
TUN
Geodis
PC
50.00
50.00
50.00
50.00
FR
Geodis
FC
100.00
99.99
100.00
43.11
Geodis Projets
Page 133
Consolidated Financial Statements
Geodis Holding BV
Country
SNCF — Financial Report 2008
Company
37 Scope of consolidation
Company Geodis SA Geodis Sénégal Geodis Solutions Geodis Tchad
Country
Subgroup
M
PC Year N
PI Year N
PC Year N-1
PI Year N-1 43.11
FR
Geodis
FC
100.00
100.00
42.62
SENE
Geodis
FC
100.00
99.99
100.00
43.11
FR
Geodis
FC
100.00
100.00
100.00
43.11
TCH
Geodis
FC
100.00
99.99
100.00
43.11
Geodis Trate Srl
ITA
Geodis
FC
100.00
100.00
100.00
43.11
Geodis UK Ltd
GB
Geodis
FC
100.00
100.00
N/A
N/A
Geodis Vitesse Netherlands BV
NDL
Geodis
FC
100.00
100.00
99.40
43.11
Geodis Wilson Amsterdam BV
NDL
Geodis
NC
-
-
100.00
43.11
Geodis Wilson Argentina SA
ARG
Geodis
FC
100.00
100.00
100.00
43.11
Geodis Wilson Australia Holdings Pty Ltd
AUS
Geodis
FC
100.00
100.00
100.00
43.11
BANG
Geodis
FC
60.00
60.00
60.00
25.87
Geodis Wilson Bangladesh Ltd Geodis Wilson Belgium NV
BEL
Geodis
FC
100.00
100.00
100.00
43.11
Geodis Wilson Canada Limited
CAN
Geodis
FC
100.00
100.00
100.00
43.11
Geodis Wilson Chile S.A.
CHILI
Geodis
FC
99.50
99.50
99.50
42.90
Geodis Wilson Combined Logistics HK Ltd
CHN
Geodis
FC
100.00
100.00
100.00
43.11
Geodis Wilson Denmark A/S
DEN
Geodis
FC
100.00
100.00
100.00
43.11
Geodis Wilson Europoort BV
NDL
Geodis
NC
-
-
100.00
43.11
Geodis Wilson Far East Ltd
CHN
Geodis
FC
100.00
100.00
100.00
43.11
FIN
Geodis
FC
100.00
100.00
100.00
43.11
FR
Geodis
FC
99.99
99.99
99.99
43.11
Geodis Wilson Freight Management Holdings AB
SWE
Geodis
FC
100.00
100.00
100.00
43.11
Geodis Wilson Freight Management Sdn Bhd
MAL
Geodis
FC
100.00
100.00
100.00
43.11
Geodis Wilson Germany GmbH
GER
Geodis
NC
-
-
100.00
43.11
Geodis Wilson Germany GmbH & Co KG
GER
Geodis
FC
100.00
100.00
-
-
Geodis Wilson Holding AB
SWE
Geodis
FC
100.00
100.00
100.00
43.11
Geodis Wilson Hong Kong Ltd
CHN
Geodis
FC
100.00
100.00
100.00
43.11
Geodis Wilson Korea Ltd
KOR
Geodis
NC
-
-
100.00
43.11
Geodis Wilson Malaysia SDN BHD
MAL
Geodis
FC
100.00
100.00
100.00
43.11
Geodis Wilson Mexico SA de CV
MEX
Geodis
FC
100.00
100.00
-
-
Geodis Wilson Netherlands BV
NDL
Geodis
FC
100.00
100.00
100.00
43.11
Geodis Wilson Finland Oy Geodis Wilson France
Geodis Wilson Norway AS
NOR
Geodis
FC
100.00
100.00
100.00
43.11
Geodis Wilson Overseas AB
SWE
Geodis
FC
100.00
100.00
100.00
43.11
Geodis Wilson Peru SA
PER
Geodis
FC
100.00
100.00
-
-
Geodis Wilson Projects USA, Inc
USA
Geodis
FC
100.00
100.00
-
-
Geodis Wilson Pty Ltd Australia
AUS
Geodis
FC
100.00
100.00
100.00
43.11
Geodis Wilson Qatar LLC
QAT
Geodis
FC
70.00
70.00
-
-
Geodis Wilson Rotterdam BV
NDL
Geodis
FC
100.00
100.00
100.00
43.11
Geodis Wilson Shanghai Ltd
43.11
CHN
Geodis
FC
100.00
100.00
100.00
Geodis Wilson Singapore Pte Ltd
SIN
Geodis
NC
-
-
100.00
43.11
Geodis Wilson Spain
SPA
Geodis
FC
100.00
99.44
100.00
42.87
Geodis Wilson Sweden AB
SWE
Geodis
FC
100.00
100.00
100.00
43.11
Geodis Wilson Taiwan Ltd
TWN
Geodis
NC
-
-
100.00
43.11
Geodis Wilson Thailand Ltd
THAI
Geodis
FC
100.00
100.00
100.00
43.11
Page 134
sncf.com
Subgroup
M
PC Year N
PI Year N
PC Year N-1
PI Year N-1
UAE
Geodis
FC
80.00
80.00
80.00
80.00
Geodis Wilson UK Ltd
GB
Geodis
FC
100.00
100.00
100.00
43.11
Geodis Wilson USA Inc
USA
Geodis
FC
100.00
100.00
100.00
43.11
Geodis Wilson South Africa (Pty.) Ltd
SAF
Geodis
FC
100.00
100.00
-
-
N.ZEL
Geodis
FC
100.00
100.00
100.00
43.11
ITA
Geodis
FC
100.00
100.00
100.00
43.11
ITA
Geodis
FC
100.00
100.00
-
-
CAM
Geodis
FC
100.00
99.99
100.00
43.11
Geodis Wilson New Zealand Ltd Geodis Zust Ambrosetti Geodis Züst Ambrosetti SpA Geosiap Cameroun GIE BM Combi
FR
Geodis
FC
100.00
99.95
100.00
43.09
GIE France Express
FR
Geodis
FC
73.20
71.35
74.23
30.63
Gironde Express
FR
Geodis
FC
100.00
100.00
100.00
43.11
Grimaldi ACL France
FR
Sealogis
PC
40.00
39.99
40.00
39.99
Groupe Ermewa
SWI
Ermewa
PC
49.60
49.10
49.60
49.10
GW Freight Management Brazil
BRA
Geodis
FC
100.00
100.00
100.00
43.11
FR
Sealogis
PC
50.00
49.98
50.00
49.98
HF Haute Provence Express
FR
Geodis
FC
100.00
100.00
100.00
43.11
Helf
GER
STVA
FC
94.95
78.76
94.95
78.76
Helu Trans Malaysia
MAL
Geodis
FC
100.00
100.00
100.00
43.11
Hérault Express
FR
Geodis
FC
100.00
100.00
100.00
43.11
Immobilière Geodis I
FR
Geodis
FC
100.00
100.00
100.00
43.11
Immobilière Geodis II Logistics
FR
Geodis
FC
100.00
100.00
100.00
43.11
Instit. de Form. Eur. Multimodal
FR
VFLI
FC
100.00
100.00
100.00
100.00
ITL Benelux
NDL
ITL
FC
70.00
52.50
-
-
ITL Cargo Gmbh
GER
ITL
FC
100.00
75.00
-
-
ITL Eisenbahngesellschaft mbH
GER
ITL
FC
75.00
75.00
-
-
ITL Polska
POL
ITL
FC
80.00
60.00
-
-
ITL Prag
CZ.R
ITL
FC
100.00
75.00
-
-
J. Boots Exploitatiemaatschappij BV
NDL
Geodis
NC
-
-
100.00
43.11
Joud Libya
LBY
Geodis
FC
51.00
51.00
-
-
FR
Geodis
FC
100.00
100.00
100.00
43.11
Le Bois Chaland Les Rouleurs du Cambresis Locorem
FR
Geodis
FC
100.00
100.00
100.00
43.11
BEL
VFLI
FC
100.00
100.00
100.00
100.00
Logifer
FR
Fret Intern
EA
50.00
50.00
-
-
Logistica
FR
CME
PC
50.00
50.00
50.00
50.00
Logistra
FR
Logistra
FC
100.00
100.00
100.00
100.00
LSI
FR
VFLI
FC
100.00
100.00
100.00
100.00
Mancelle d’Emballage Industriel
FR
Geodis
FC
99.60
99.60
99.60
42.94
Messagerie Parisienne du Livre
FR
Geodis
FC
100.00
100.00
100.00
43.11
MG Transports
FR
Geodis
FC
99.90
99.90
99.90
43.07
MGL
FR
Geodis
FC
99.91
99.91
99.91
43.07
POL
STVA
EA
50.00
40.98
50.00
40.98
Naviland Cargo
MOSTVA
FR
Naviland Cargo
FC
99.96
99.96
99.96
99.96
Norferrus
FR
STVA
FC
100.00
82.08
100.00
82.08
Page 135
Consolidated Financial Statements
Geodis Wilson UAE LLC
Country
SNCF — Financial Report 2008
Company
37 Scope of consolidation
Company
Country
Normanche
FR
Novatrans
FR
Noyon
FR
Geodis
EA
O&H (shipping) Limited
GB
Geodis
FC
Geodis
FC
Geodis
ONH Limited OOO Geodis Wilson Russia
RUSS
Subgroup
M
PC Year N
PI Year N
PC Year N-1
STVA
FC
Novatrans
EA
PI Year N-1
100.00
82.08
100.00
82.08
39.91
39.89
39.46
38.98
35.59
35.59
35.59
35.59
100.00
100.00
-
-
100.00
100.00
-
-
FC
100.00
100.00
-
82.08
Ortrans
FR
STVA
FC
100.00
82.08
100.00
Oughtred Harrison (shipping) Limited
GB
Geodis
FC
100.00
100.00
-
-
P.L.C.
FR
Geodis
FC
100.00
100.00
100.00
43.11
Pan European Transport Ltd
IRL
Geodis
NC
-
-
100.00
43.11
Pan European Transport UK
GB
Geodis
FC
100.00
100.00
100.00
43.11
Paris 8
FR
Geodis
FC
100.00
100.00
100.00
43.11
Geodis
FC
100.00
100.00
-
-
Pelsolutions SA Pgesco
SWI
Ermewa
PC
49.60
49.10
49.60
49.10
Polar Air & SeaCargo Oy
FIN
Geodis
FC
100.00
100.00
100.00
43.11
Provence Express
FR
Geodis
FC
100.00
100.00
100.00
43.11
Quercy Express
FR
Geodis
FC
100.00
100.00
100.00
43.11
GER
Rail Euro Concept
EA
50.00
50.00
50.00
50.00
Rhône Dauphiné Express
FR
Geodis
FC
100.00
100.00
100.00
43.11
Rhône Ferrus
FR
STVA
FC
100.00
82.08
100.00
82.08
CAN
Geodis
EA
50.00
50.00
-
-
Geodis
FC
49.00
49.00
-
-
USA
Geodis
FC
100.00
100.00
-
-
GB
Geodis
FC
100.00
100.00
-
-
Rohde & Liesenfeld Ltda, Columbia
COL
Geodis
FC
100.00
100.00
-
-
Rohde & Liesenfeld Project GMBH (India)
IND
Geodis
FC
100.00
100.00
-
-
Rohde & Liesenfeld Projects (China) Ltd.
CHN
Geodis
FC
100.00
100.00
-
-
Rohde & Liesenfeld Projects GmbH
GER
Geodis
FC
100.00
100.00
-
-
Rohde & Liesenfeld Pte Ltd, Singapore
SGP
Geodis
FC
100.00
100.00
-
-
Rohde & Liesenfeld Pty Ltd Australia
AUS
Geodis
FC
100.00
100.00
-
-
Rohde & Liesenfeld SA, Argentina
ARG
Geodis
FC
100.00
100.00
-
-
Rohde & Liesenfeld Transp Intern Ltda, Chile
CHL
Geodis
FC
100.00
100.00
-
-
Rohde & Liesenfeld Verwaltungsges. mbH
GER
Geodis
FC
100.00
100.00
-
-
Rohde & Liesenteld Ltd New Zealand
NZL
Geodis
FC
100.00
100.00
-
-
Rouch Intermodal
FR
Rouch Intermodal
FC
100.00
98.99
100.00
98.97
SARI
FR
Sari
FC
65.68
54.87
65.68
54.87
SCI BM Chelles
FR
Geodis
FC
100.00
100.00
100.00
43.11
SCI BM Le Fontanil
FR
Geodis
FC
100.00
100.00
100.00
43.11
SCI BM Mery
FR
Geodis
FC
100.00
100.00
100.00
43.11
SCI BM Salaise
FR
Geodis
FC
100.00
100.00
100.00
43.11
SCI Borny
FR
Geodis
FC
100.00
100.00
100.00
43.11
SCI CEL
FR
Geodis
FC
100.00
100.00
100.00
43.11
Rail Euro Concept
Rohde & Liesenfeld Canada Inc Rohde & Liesenfeld Forwarding Logistics (LLC), UAE Rohde & Liesenfeld Inc, USA Rohde & Liesenfeld International GmbH & Co KG
Page 136
sncf.com
Subgroup
M
PC Year N
SCI Ceretif
FR
SCI Ceretif
FC
98.00
SCI Charval
FR
Geodis
FC
100.00
SCI Danjoutin
FR
Geodis
FC
100.00
SCI de la Brèche
FR
Geodis
FC
SCI de la Poudrière
FR
Geodis
FC
SCI de Vaux
FR
Geodis
SCI du Rouvray
FR
SCI Étupes
PI Year N
PC Year N-1
PI Year N-1
65.02
98.00
65.02
100.00
100.00
43.11
100.00
100.00
43.11
100.00
100.00
100.00
43.11
100.00
100.00
100.00
43.11
FC
100.00
100.00
100.00
43.11
Geodis
FC
100.00
100.00
100.00
43.11
FR
Geodis
FC
100.00
100.00
99.90
43.07
SCI FGH
FR
Sealogis
FC
75.00
62.98
75.00
62.98
SCI Horizons
FR
Geodis
FC
100.00
100.00
100.00
43.11
SCI Immolog
FR
Geodis
FC
100.00
100.00
100.00
43.11
SCI JCC
FR
Geodis
FC
100.00
100.00
100.00
43.11
SCI Le Polygone
FR
Geodis
FC
100.00
100.00
100.00
43.11
SCI Le Revard
FR
Geodis
FC
66.70
66.70
66.70
28.76
SCI Ouest
FR
Geodis
FC
100.00
100.00
100.00
43.11
SCI Région Alsace
FR
Geodis
FC
100.00
100.00
100.00
43.11
SCI Région Bretagne
FR
Geodis
FC
100.00
100.00
100.00
43.11
SCI Région Champagne-Ardennes
FR
Geodis
FC
100.00
100.00
100.00
43.11
SCI Région Ile-de-France
FR
Geodis
FC
100.00
100.00
100.00
43.11
SCI Région Normandie
FR
Geodis
FC
100.00
100.00
100.00
43.11
SCI Région Sud-Est
FR
Geodis
FC
100.00
100.00
100.00
43.11
SCI Région Sud-Ouest
FR
Geodis
FC
100.00
100.00
100.00
43.11
SCI Royneau Le Coudray
FR
Geodis
FC
100.00
99.05
100.00
42.70
SCI SVIG
FR
Geodis
FC
99.97
99.97
99.97
43.10
SCI Voujeaucourt
FR
Geodis
FC
100.00
100.00
100.00
43.11
SD Calberson
FR
Geodis
FC
99.97
99.97
99.97
43.10
Sealogis
FR
Sealogis
FC
100.00
100.00
100.00
100.00
Séfergie
FR
Séfergie
FC
100.00
99.00
100.00
98.98
SEGI
FR
Segi
FC
98.32
98.99
100.00
98.97
Seine Express
FR
Geodis
FC
100.00
100.00
100.00
43.11
Sénart Affrètement
FR
Geodis
FC
65.00
65.00
-
-
SEP Transpul
FR
Ermewa
PC
49.60
20.38
49.60
20.38
SEP Union Wagons
FR
Ermewa
PC
49.60
20.38
49.60
20.38
Setcargo
FR
Geodis
FC
100.00
100.00
100.00
43.11
Setrada
FR
STVA
FC
100.00
82.08
100.00
82.08
Setram
SPA
STVA
EA
25.00
20.52
25.00
20.52
SFC
FR
Sealogis
FC
99.98
99.95
99.98
99.95
SGW
FR
SGW
FC
99.96
99.96
99.96
99.96
CHN
Geodis
FC
89.87
89.87
89.87
38.74
LUX
SIBELIT
EA
42.50
42.50
42.50
42.50
Sideuropa
ITA
Sideuropa
EA
50.00
50.00
50.00
50.00
SLV
FR
Geodis
FC
100.00
100.00
100.00
43.11
Shanghaï E & T Calberson Overseas Sibelit
Page 137
Consolidated Financial Statements
Country
SNCF — Financial Report 2008
Company
37 Scope of consolidation
Company
Country
Subgroup
M
PC Year N
PI Year N
PC Year N-1
PI Year N-1
SMTR Calberson
FR
Geodis
FC
100.00
100.00
100.00
43.11
SNC Bercy
FR
Geodis
FC
51.00
51.00
100.00
70.99
SNCF Fret Benelux
BEN SNCF Fret Benelux
FC
100.00
100.00
100.00
100.00
SNCF Fret Deutschland Gmbh
GER
SNCF Fret Deutschland Gmbh
FC
100.00
100.00
100.00
100.00
SNCF Fret Italia srl
ITA SNCF Fret Italia srl
FC
100.00
100.00
100.00
100.00
SNTC
FR
STVA
FC
100.00
82.08
100.00
82.08
SNTN Calberson
FR
Geodis
FC
100.00
100.00
100.00
43.11
Sogewag
FR
STVA
FC
100.00
78.36
100.00
78.36
Somap
FR
Sealogis
FC
81.75
81.72
81.75
81.72
Somedat
FR
STVA
FC
100.00
82.08
100.00
82.08
Soptrans
FR
STVA
FC
100.00
82.08
100.00
82.08
Sopyrim
FR
STVA
FC
100.00
82.08
100.00
82.08
Sotraf
FR
STVA
FC
100.00
82.08
100.00
82.08
FIN
Geodis
FC
100.00
100.00
100.00
43.11
Sté de Gestion du Terminal d’Aiton
FR
CME
FC
65.00
33.14
65.00
33.15
Sté Propriétaire Wagons Modalohr
FR
CME
FC
100.00
50.98
100.00
51.00
Stesimaf
FR
Stésimaf
FC
80.00
86.78
80.00
86.78
STSI
FR
STSI
FC
99.46
99.46
99.46
99.46
STVA SA
FR
STVA
FC
82.23
82.08
82.23
82.08
STVA UK
GB
STVA
FC
100.00
82.08
100.00
82.08
TCL Cameroun
CAM
Geodis
FC
100.00
99.99
100.00
43.11
TCL Houston
USA
Geodis
FC
88.63
88.62
88.63
38.20
TCL Tchad
Speditionsservice Oy
TCH
Geodis
FC
100.00
99.99
100.00
43.11
Tethys
FR
STVA
FC
100.00
82.08
100.00
82.08
Thales Geodis Freight & Logistics
FR
Geodis
PC
50.00
50.00
50.00
50.00
TMF
FR
Ermewa
PC
37.20
36.82
37.20
36.82
TMF Cita Belgium
BEL
Ermewa
PC
49.60
36.79
49.60
36.79
TMF Cita Deutschland
GER
Ermewa
PC
44.64
33.11
44.64
33.11
TMF Cita Nederland
NDL
Ermewa
PC
49.60
36.82
49.60
36.82
Transengrais
FR
Transengrais
FC
100.00
100.00
100.00
89.82
SPA
STVA
EA
20.20
16.58
20.20
16.58
Transinformatique
FR
Transinformatique
FC
99.84
66.24
99.84
66.24
Transport Logistique Partenaires
FR
Transport Logist. Part.
FC
100.00
100.00
100.00
100.00
Transports Bernis
FR
Geodis
FC
67.66
67.66
67.66
29.17
Transports J. Savin
FR
Geodis
FC
100.00
100.00
100.00
43.11
BEL
STVA
FC
99.95
82.04
99.95
82.04
Transfesa
Transportvoiture Transucre
FR
Ermewa
PC
69.76
69.46
69.76
69.46
Transwaters
FR
Geodis
FC
50.00
50.00
50.00
21.56
Unifer
FR
Ermewa
PC
49.60
49.10
49.60
49.10
Uniroute
FR
STVA
FC
100.00
82.08
100.00
82.08
Val Express
FR
Geodis
FC
100.00
100.00
100.00
43.11
Val Ferrus
FR
STVA
FC
80.00
65.66
80.00
65.66
Page 138
sncf.com
Valtrans
Subgroup
M
PC Year N
PI Year N
PC Year N-1
PI Year N-1
FR
Geodis
FC
100.00
100.00
100.00
43.11
FR
STVA
FC
80.00
65.66
80.00
65.66
NDL
Geodis
FC
100.00
100.00
100.00
43.11
Var Express
FR
Geodis
FC
100.00
100.00
100.00
43.11
Vellave de Transport
FR
Geodis
FC
100.00
100.00
98.04
42.27
TUR
STVA
FC
51.00
41.86
51.00
41.86 100.00
Van der Laan Transport
Veva VFLI
FR
VFLI
FC
100.00
100.00
100.00
VFLI Cargo
FR
VFLI
FC
100.00
100.00
100.00
100.00
ROM
VFLI
FC
100.00
100.00
100.00
100.00
VFLI Romania VFM (absorbée par VFLI SA)
FR
VFLI
FC
100.00
100.00
100.00
100.00
Vilogistique
FR
STVA
FC
100.00
82.08
100.01
82.08
Vitesse Logistics BV
NDL
Geodis
FC
100.00
100.00
100.00
43.11
Vitesse Onroerend Goed BV
NDL
Geodis
NC
-
-
100.00
43.11
Vitesse Pharmaceuticals Distribution BV
NDL
Geodis
FC
100.00
100.00
100.00
43.11
FR
Geodis
FC
99.76
99.76
99.76
43.01
Walbaum
FR
Geodis
FC
100.00
99.99
100.00
43.11
Werner Egerland
Waren Shipping
GER
STVA
EA
20.00
16.42
20.00
16.42
Wilson Denmark Holding A/S STP
DEN
Geodis
FC
100.00
100.00
100.00
43.11
FR
Sealogis
FC
99.97
94.97
99.91
66.38
FR
HO other Holding
FC
100.00
100.00
-
-
XP LOG COMMON OPERATIONS Éco-Mobilité Partenaires SAS Espaces Ferroviaires Aménagement
FR
SNEF
FC
99.99
99.99
99.99
99.99
Espaces Ferroviaires Résidences du Rail
FR
SNEF
FC
100.00
100.00
100.00
100.00
Espaces Ferroviaires Transactions
FR
SNEF
FC
100.00
100.00
99.80
99.80
SWI
HO other Holding
EA
22.60
22.60
22.60
22.60
France Rail Publicité (FRP)
FR
HO other Holding
NC
-
-
20.00
20.00
France-Bus Publicité
FR
GIE Eurail Test
FR
HO other Holding
FC
90.00
90.00
100.00
100.00
Gie Financière Sceta
FR
Gie financière Sceta
FC
100.00
94.84
100.00
94.27
ICF
FR
SICF
FC
100.00
100.00
100.00
100.00
IMTS SAS
FR
HO other Holding
FC
100.00
100.00
-
-
EA
EUROFIMA
EA
Landimat
FR
frp
Novedis-ICF
FR
SFCI
FC
99.97
99.97
100.00
100.00
Orfea
FR
Orfea
PC
50.00
50.00
50.00
50.00
SARL Molière
FR
SeaFrance
FC
100.00
100.00
-
-
SCI du Cercle
FR
SCI du Cercle
FC
100.00
100.00
100.00
100.00
SCI La Chapelle
FR
SNEF
FC
100.00
100.00
100.00
100.00
SCI Ney
FR
SCI Ney
FC
100.00
100.00
100.00
100.00
Page 139
Consolidated Financial Statements
Valenda
Country
SNCF — Financial Report 2008
Company
37 Scope of consolidation
Company
Country
Subgroup
M
PC Year N
PI Year N
PC Year N-1
PI Year N-1
SeaFrance
FR
SeaFrance
FC
100.00
100.00
100.00
100.00
SNC Monceau
FR
SNC Monceau
FC
100.00
100.00
100.00
100.00
SNC Vezelay
FR
SNC Vezelay
FC
100.00
100.00
100.00
100.00
SNCF Conseil
FR
SNCF Conseil
FC
100.00
100.00
100.00
100.00
SNCF Participations
FR
SNCF Participations
FC
100.00
100.00
100.00
100.00
Société des Trains Expositions (STE)
FR
HO other Holding
FC
90.46
90.46
-
-
SPFRD
FR
SPFRD
FC
100.00
100.00
100.00
100.00
Société Nationale d’Espaces Ferroviaires
FR
SNEF
FC
100.00
100.00
100.00
100.00
Canal TP
FR
Effia
FC
74.97
86.34
74.97
86.30
Effia (holding)
FR
Effia
FC
99.99
99.99
99.99
99.99
Effia Concessions
FR
Effia
FC
100.00
99.99
99.96
99.95
Effia MTI
FR
Effia
FC
100.00
99.99
100.00
99.99
Effia Services
FR
Effia
FC
100.00
99.99
99.98
99.99
Effia Stationnement et Mobilité
FR
Effia
FC
100.00
99.99
100.00
99.95
Effia Synergie
FR
Effia
FC
100.00
99.99
100.00
99.99
Effia Transport
FR
Effia
FC
100.00
99.99
100.00
99.99
Quiberon Stationnement
FR
Effia
FC
52.00
51.99
52.00
51.97
RITMx SAS
FR
FC
100.00
97.30
-
-
SEG
FR
FC
100.00
99.99
100.00
99.95
Transferis
FR
PC
50.00
50.00
-
-
SNCF LOCAL TRANSPORT
Effia
Equity-accounted Keolis group FR
Keolis
EA
45.38
45.38
45.38
45.38
Aerobag
FR
KEOLIS
EA
45.38
45.28
45.37
45.27
Aerolignes
FR
KEOLIS
EA
45.38
45.28
45.37
45.27
Aerolis
FR
KEOLIS
EA
22.64
22.60
-
-
Aéroport Angers Marce
FR
KEOLIS
EA
45.38
45.28
45.37
45.27
Aéroport de Troyes Barberey
FR
KEOLIS
EA
45.38
45.28
45.37
45.27
Aerosat
FR
KEOLIS
EA
38.57
38.49
45.37
38.48
Airelle
FR
KEOLIS
EA
45.38
45.28
45.37
45.27
Athis Cars
FR
KEOLIS
EA
45.13
45.03
45.37
45.02
Autobus de Genval
BEL
KEOLIS
EA
45.38
32.14
-
-
Autobus Dony
BEL
KEOLIS
EA
45.38
45.28
-
-
Autobus Dujardin
BEL
KEOLIS
EA
45.38
32.08
-
-
Autobus Lienard
BEL
KEOLIS
EA
45.38
32.24
-
-
Autobussen Monserez-Verhenne
BEL
KEOLIS
EA
45.38
45.28
-
-
Autocars Charrière Fils
FR
KEOLIS
EA
45.15
45.06
45.37
45.04
Autocars Corre
FR
KEOLIS
EA
45.38
45.28
45.37
45.27
Autocars Delion SAS
FR
KEOLIS
EA
45.38
45.28
45.37
45.27
Kuvera Développement (parent company) Keolis fully consolidated subsidiaries
Page 140
sncf.com
Subgroup
M
PC Year N
PI Year N
PC Year N-1
PI Year N-1
BEL
KEOLIS
EA
45.38
32.08
-
-
Autocars Planche
FR
KEOLIS
EA
45.38
45.28
45.37
45.27
Autocars Roche
FR
KEOLIS
EA
45.38
45.28
45.37
45.27
Autocars Valenciennois
FR
KEOLIS
EA
43.56
43.47
-
-
Belbus
BEL
KEOLIS
EA
45.38
45.28
-
-
Brussels City Tours
BEL
KEOLIS
EA
22.69
16.04
-
-
Bus Immo
FR
KEOLIS
EA
45.38
45.28
-
-
Bus Inter
FR
KEOLIS
EA
45.38
45.28
45.37
45.27
Busslink
SWE
KEOLIS
EA
31.77
31.70
45.37
31.69
FR
KEOLIS
EA
45.38
45.28
45.37
45.27
Cannaise de service Cardona-Deltenre
BEL
KEOLIS
EA
45.38
32.13
-
-
Cariane Adour
FR
KEOLIS
EA
45.38
45.28
45.37
45.27
Cariane Drôme
FR
KEOLIS
EA
45.35
45.25
45.37
45.23
Cariane Est
FR
KEOLIS
EA
45.38
45.28
45.37
45.27
Cariane Littoral
FR
KEOLIS
EA
45.38
45.28
45.37
45.27
Cariane Loiret
FR
KEOLIS
EA
45.38
45.28
45.37
45.27
Cariane Multimodal International
FR
KEOLIS
EA
45.38
45.28
45.37
45.27
Cariane SA
FR
KEOLIS
EA
45.38
45.38
45.37
45.27
Cars Blot
FR
KEOLIS
EA
45.38
45.28
45.37
45.27
Cars de Bordeaux
FR
KEOLIS
EA
45.38
45.21
45.37
45.20
Cars Planche Cottin Prioux
FR
KEOLIS
EA
45.38
45.28
45.37
45.27
Cars Sylvestre
FR
KEOLIS
EA
45.38
45.28
45.37
45.27
Ceyte Tourisme Méditerranée
FR
KEOLIS
EA
45.38
45.28
45.37
45.27
CFTV
FR
KEOLIS
EA
45.38
45.38
45.37
45.27
Cie Bus Alençonnais - Cobal
FR
KEOLIS
EA
45.38
45.28
45.37
45.27
Cie Maritime Penn Ar Bed
FR
KEOLIS
EA
45.38
45.28
45.37
45.27
Cie Tpts De l’Artois
FR
KEOLIS
EA
45.28
45.28
45.37
45.27
Cie Tpts Méditerranéens
FR
KEOLIS
EA
45.15
45.06
45.37
45.04
SPA
KEOLIS
EA
45.38
32.08
-
-
CINTRAL
KEOLIS
EA
45.38
45.28
-
-
City Liner
KEOLIS
EA
45.20
32.00
-
-
City Trafik
KEOLIS
EA
45.38
45.28
45.37
45.27
SWE
KEOLIS
EA
45.38
45.28
45.37
45.27
FR
KEOLIS
EA
45.11
45.01
45.37
45.00
SWE
KEOLIS
EA
45.38
45.28
45.37
45.27
CTA Valentinoise
FR
KEOLIS
EA
45.35
45.25
45.37
45.24
Delion Tourisme
FR
KEOLIS
EA
45.38
45.28
45.37
45.27
Devillairs
FR
KEOLIS
EA
45.34
45.24
45.37
45.22
Easybus
GB
KEOLIS
EA
45.38
45.28
45.37
45.27
Entreprise Charles Caron
FR
KEOLIS
EA
45.38
45.28
45.37
45.27
Entreprise Philippe Détré
FR
KEOLIS
EA
45.38
45.28
45.37
45.27
EOLE
FR
KEOLIS
EA
45.38
45.38
45.37
45.37
Établissement Via Autoroute
FR
KEOLIS
EA
45.28
45.28
-
-
CINTRA
Citypendeln Compagnie du Blanc-Argent CSG Commuter Security
Page 141
Consolidated Financial Statements
Autocars H. Pire
Country
SNCF — Financial Report 2008
Company
37 Scope of consolidation
Company
Country
Subgroup
M
PC Year N
PI Year N
PC Year N-1
PI Year N-1
Etasse Tourisme
FR
KEOLIS
EA
45.38
45.28
45.37
45.27
Etasse Voyages
FR
KEOLIS
EA
45.38
45.28
45.37
45.27
Eurobahn Verkers Services Gmbh
GER
KEOLIS
EA
45.38
45.28
45.37
45.27
Eurobus Holding
BEL
KEOLIS
EA
28.94
32.08
-
-
Eurobussing Airport
BEL
KEOLIS
EA
45.38
32.08
-
-
Eurobussing Vlaanderen
BEL
KEOLIS
EA
45.38
32.08
-
-
Eurobussing Wallonie
BEL
KEOLIS
EA
45.38
32.08
-
-
Financière Keos
FR
KEOLIS
EA
45.38
45.38
45.37
45.37
Garage du Perron
FR
KEOLIS
EA
45.26
32.03
-
-
Garrel et Navarre
FR
KEOLIS
EA
45.38
45.28
45.37
45.27
Gep Vidal
FR
KEOLIS
EA
45.37
45.27
45.37
45.26
GIE Centre Cars
FR
KEOLIS
EA
45.38
45.28
45.37
45.27
Gie Orset
FR
KEOLIS
EA
45.38
45.28
45.37
45.27
Groupe Orléans Express
FR
KEOLIS
EA
34.04
33.96
45.37
33.95
Institut Keolis
FR
KEOLIS
EA
45.38
45.28
45.37
45.27
Interhone
FR
KEOLIS
EA
45.38
45.28
45.37
45.27
Intrabus Orly
FR
KEOLIS
EA
45.38
45.28
45.37
45.27
Jobard et Cie
FR
KEOLIS
EA
45.38
45.28
45.37
45.26
Keolis
FR
KEOLIS
EA
45.28
45.28
45.37
45.27
Keolis Abbeville
FR
KEOLIS
EA
44.94
44.84
45.37
44.82
Keolis Agen
FR
KEOLIS
EA
45.38
45.28
45.37
45.27
Keolis equity-accounted subsidiaries
Keolis Aix-Les-Bains
FR
KEOLIS
EA
45.38
45.28
45.37
45.27
USA
KEOLIS
EA
45.38
45.28
45.37
45.27
Keolis Angers
FR
KEOLIS
EA
45.38
45.28
45.37
45.27
Keolis Arles
FR
KEOLIS
EA
45.38
45.28
45.37
45.27
Keolis Armor
FR
KEOLIS
EA
45.38
45.28
45.37
45.26
Keolis Artois
FR
KEOLIS
EA
45.38
45.28
45.37
45.26
Keolis Atlantique
FR
KEOLIS
EA
45.38
45.28
45.37
45.26
Keolis Auch
FR
KEOLIS
EA
45.38
45.28
45.37
45.27
Keolis Aude
FR
KEOLIS
EA
45.38
45.28
45.37
45.27
Keolis Bassin de Thau
FR
KEOLIS
EA
45.29
45.19
45.37
45.17
Keolis Besançon
FR
KEOLIS
EA
45.33
45.23
45.37
45.22
Keolis Blois
FR
KEOLIS
EA
45.38
45.28
45.37
45.27
Keolis Bourgogne
FR
KEOLIS
EA
44.93
44.83
45.37
44.81
Keolis Brest
FR
KEOLIS
EA
45.38
45.28
45.37
45.27
Keolis Caen
FR
KEOLIS
EA
44.84
44.74
45.37
44.72
Keolis Cahors
FR
KEOLIS
EA
45.38
45.28
45.37
45.27
Keolis Calvados
FR
KEOLIS
EA
45.38
45.28
45.37
45.27 45.27
Keolis America Inc
Keolis Canada Inc
CAN
KEOLIS
EA
45.38
45.28
45.37
Keolis Centre
FR
KEOLIS
EA
45.38
45.28
45.37
45.27
Keolis Chalons-en-Champagne
FR
KEOLIS
EA
44.05
43.96
45.37
43.94
Page 142
sncf.com
Subgroup
M
Keolis Charentes-Maritime
FR
KEOLIS
EA
43.08
43.08
-
-
Keolis Chateauroux
FR
KEOLIS
EA
45.38
45.28
45.37
45.27
Keolis Châtellerault
FR
KEOLIS
EA
45.38
45.28
45.37
45.27
Keolis Cherbourg
FR
KEOLIS
EA
45.31
45.22
45.37
45.20
Keolis Concarneau
FR
KEOLIS
EA
45.38
45.28
45.37
45.27
Keolis Conseil et Projets
FR
KEOLIS
EA
45.38
45.28
45.37
45.27
Keolis Deutschland Berlin
GER
KEOLIS
EA
45.38
45.28
45.37
45.27
Keolis Deutschland COKG
GER
KEOLIS
EA
45.38
45.28
45.37
45.27
Keolis Deutschland Verwaltung
GER
KEOLIS
EA
45.38
45.28
45.37
45.27
Keolis Dijon
FR
KEOLIS
EA
45.08
44.98
45.37
44.96
Keolis Drouais
FR
KEOLIS
EA
45.38
45.28
-
-
Keolis Emeraude
FR
KEOLIS
EA
45.38
45.28
45.37
45.27
Keolis en Cévennes
PC Year N
PI Year N
PC Year N-1
PI Year N-1
FR
KEOLIS
EA
43.16
43.06
45.37
43.05
SPA
KEOLIS
EA
45.38
45.28
45.37
45.27
Keolis Eure
FR
KEOLIS
EA
45.38
45.28
45.37
45.27
Keolis Eure-et-Loire
FR
KEOLIS
EA
45.28
45.18
45.37
45.16
Keolis Garonne
FR
KEOLIS
EA
45.38
45.28
45.37
45.27
Keolis Gascogne
FR
KEOLIS
EA
45.38
45.22
45.37
45.17
Keolis Gironde
FR
KEOLIS
EA
45.24
45.14
45.37
45.13
Keolis Givors
FR
KEOLIS
EA
45.38
45.28
45.37
45.26
Keolis Gohelle
FR
KEOLIS
EA
45.28
45.28
45.37
45.27
Keolis Grand Tarbes
FR
KEOLIS
EA
45.38
45.28
45.37
45.27
Keolis La Roche-sur-Yon
FR
KEOLIS
EA
45.38
45.28
45.37
45.27
Keolis Languedoc
FR
KEOLIS
EA
45.38
45.28
45.37
45.27
Keolis Laval
FR
KEOLIS
EA
45.38
45.28
45.37
45.27
Keolis Littoral
FR
KEOLIS
EA
45.38
45.28
45.37
45.27
Keolis Lorient
FR
KEOLIS
EA
45.35
45.25
45.37
45.23
Keolis Lyon
FR
KEOLIS
EA
45.38
45.28
45.37
45.26
Keolis Maritime
FR
KEOLIS
EA
45.33
45.24
-
-
Keolis Marmande
FR
KEOLIS
EA
45.38
45.28
45.37
45.27
Keolis Montargis
FR
KEOLIS
EA
45.38
45.28
45.37
45.27
Keolis Montélimar
FR
KEOLIS
EA
45.38
45.28
45.37
45.27
Keolis Montluçon
FR
KEOLIS
EA
45.38
45.28
45.37
45.22
Keolis Morlaix
FR
KEOLIS
EA
45.38
45.28
45.37
45.27
Keolis Narbonne
FR
KEOLIS
EA
45.38
45.28
45.37
45.27
Keolis Nevers
FR
KEOLIS
EA
45.38
45.28
45.37
45.27
Keolis Nord-Est
FR
KEOLIS
EA
45.28
45.28
45.37
45.27
Keolis Nordic
FR
KEOLIS
EA
45.38
45.28
45.37
45.27
Keolis Oise
FR
KEOLIS
EA
45.37
45.28
45.37
45.26
Keolis Pays de Montbélliard
FR
KEOLIS
EA
45.38
45.28
45.37
45.27
Keolis PMR Rhône
FR
KEOLIS
EA
45.38
45.28
-
-
Keolis Provence
FR
KEOLIS
EA
45.38
45.28
45.37
45.27
Keolis Pyrénées
FR
KEOLIS
EA
43.18
43.09
45.37
43.08
Keolis Espagne
Page 143
Consolidated Financial Statements
Country
SNCF — Financial Report 2008
Company
37 Scope of consolidation
Company
Country
Subgroup
M
PC Year N
PI Year N
PC Year N-1
PI Year N-1
Keolis Quimper
FR
KEOLIS
EA
45.38
45.28
45.37
45.27
Keolis Rennes
FR
KEOLIS
EA
45.31
45.21
45.37
45.19
Keolis Saint Brieuc
FR
KEOLIS
EA
45.38
45.28
45.37
45.27
Keolis Saint-Malo
FR
KEOLIS
EA
45.38
45.28
45.37
45.27
Keolis Saintes
FR
KEOLIS
EA
45.38
45.28
45.37
45.27
Keolis Seine-et-Eure
FR
KEOLIS
EA
45.38
45.28
45.37
45.27
Keolis Seine-Maritime
FR
KEOLIS
EA
45.38
45.28
45.37
45.27
Keolis Somme
FR
KEOLIS
EA
45.38
45.28
45.37
45.27
Keolis Touriscar Ain
FR
KEOLIS
EA
45.38
45.28
45.37
45.27
Keolis Tours
FR
KEOLIS
EA
45.38
45.28
45.37
45.27
Keolis UK
GB
KEOLIS
EA
45.38
45.28
45.37
45.27
Keolis Urbest
FR
KEOLIS
EA
45.38
45.28
45.37
45.27
Keolis Val-d’ Oise
FR
KEOLIS
EA
45.38
45.28
45.37
45.27
Keolis Val-de-Maine
FR
KEOLIS
EA
45.38
45.28
45.37
45.27
Keolis Val-de-Saone
FR
KEOLIS
EA
45.38
44.87
45.37
44.86 45.27
Keolis Vesoul Keolis Vlaanderen Keolis Voyages Keolis Yvelines
FR
KEOLIS
EA
45.38
45.28
45.37
BEL
KEOLIS
EA
45.38
45.28
-
-
FR
KEOLIS
EA
45.38
45.28
45.37
45.27 45.27
FR
KEOLIS
EA
45.38
45.28
45.37
L.I.M. Collard-Lambert
BEL
KEOLIS
EA
45.38
32.08
-
-
Les Cars de Camargue
FR
KEOLIS
EA
44.94
44.85
45.37
44.83
Les Cars du Bassin de Thau
FR
KEOLIS
EA
45.38
45.28
45.37
45.27
Les Cars Roannais
FR
KEOLIS
EA
45.38
45.28
45.37
45.27
Les Cars Tixier
FR
KEOLIS
EA
45.28
45.28
-
-
Les Courriers Catalans
FR
KEOLIS
EA
45.38
45.28
45.37
45.26
Les Courriers d’ Ile-de-France
FR
KEOLIS
EA
45.35
45.26
45.37
45.24
Les Courriers du Midi
FR
KEOLIS
EA
45.38
45.28
45.37
45.26
Les Courriers Mosellans
FR
KEOLIS
EA
45.36
45.27
45.37
45.25
Les courriers normands
FR
KEOLIS
EA
45.28
45.28
45.37
45.27
Les Transports Dunois
FR
KEOLIS
EA
45.28
45.28
-
-
Loisirs et Voyages
FR
KEOLIS
EA
45.38
45.28
45.37
45.27
Lussiez Tourisme
FR
KEOLIS
EA
44.93
43.04
-
-
Luxbus
CAN
KEOLIS
EA
45.38
45.28
-
-
Millau Cars
FR
KEOLIS
EA
45.32
45.22
45.37
45.21
Monnet Tourisme
FR
KEOLIS
EA
45.38
45.28
45.37
45.27
Monts Jura Autocars
FR
KEOLIS
EA
45.38
45.28
45.37
45.26
NV Autob. Bronckaers Hamont
BEL
KEOLIS
EA
45.38
45.28
-
-
NV Autobusbedrijf Bronckaers
BEL
KEOLIS
EA
45.38
45.28
-
-
NV Autobussen de Reyes
BEL
KEOLIS
EA
45.38
45.28
-
-
NV Garagebedrijf Bronckaers
BEL
KEOLIS
EA
45.38
45.28
-
-
Netlog
FR
KEOLIS
EA
14.98
14.94
45.37
14.94
NV Aotocars De Boeck
BEL
KEOLIS
EA
45.38
32.08
-
-
NV de Boeck Invest
BEL
KEOLIS
EA
45.38
32.08
-
-
Page 144
sncf.com
Subgroup
M
Pacific Car
FR
KEOLIS
EA
Prioris
FR
KEOLIS
EA
Reniers & C°
BEL
KEOLIS
EA
SA ABC Cars
FR
KEOLIS
Sadar
FR
KEOLIS
Scodec
FR
SEA Albert-Picardie Setver
PC Year N
PI Year N
PC Year N-1
PI Year N-1
45.17
45.08
45.37
45.09
29.95
29.89
-
-
45.38
45.38
-
-
EA
45.38
32.08
-
-
EA
45.38
32.08
-
-
KEOLIS
EA
15.88
15.85
45.37
15.84
FR
KEOLIS
EA
23.12
23.07
45.37
23.06
FR
KEOLIS
EA
45.38
45.28
45.37
45.27
SFD
FR
KEOLIS
EA
45.38
45.28
45.37
45.27
Sivet Voyages
FR
KEOLIS
EA
45.38
45.28
45.37
45.27
SNCOA
FR
KEOLIS
EA
45.38
45.18
45.37
45.16
SNT Comett
FR
KEOLIS
EA
45.38
45.28
45.37
45.26
Sofitra
FR
KEOLIS
EA
45.28
45.28
-
-
Somap
FR
KEOLIS
EA
45.38
45.28
45.37
45.27
Sophibus
FR
KEOLIS
EA
45.38
32.13
-
-
Sotragaume
BEL
KEOLIS
EA
45.38
32.08
-
-
SPRL Taxis Melkior
BEL
KEOLIS
EA
45.38
32.08
-
-
SPRL Truck Bus Repair
BEL
KEOLIS
EA
45.38
32.09
-
-
SPRL Voyages F. Lenoir
BEL
KEOLIS
EA
45.38
32.13
-
-
SPRL Voyages Frédéric Lenoir
BEL
KEOLIS
EA
45.38
32.09
-
-
ST2L Westell
FR
KEOLIS
EA
45.38
45.28
45.37
45.27
STA
FR
KEOLIS
EA
45.38
45.28
45.37
45.27
STA Creilloise
FR
KEOLIS
EA
45.24
44.98
-
-
STAVS
FR
KEOLIS
EA
45.24
44.91
45.37
44.90
STCAR
FR
KEOLIS
EA
45.38
44.87
45.37
44.85
STC (Cagnes )
FR
KEOLIS
EA
45.35
45.25
45.37
45.23
Sté des transports Urbains d’Oyonnax
FR
KEOLIS
EA
45.38
45.28
45.37
45.27
Sté Expl. Étab. Lenegre
FR
KEOLIS
EA
45.38
45.28
45.37
45.27
Stefim
FR
KEOLIS
EA
45.38
45.28
45.37
45.27
Sté Rennaise Tpts et Services
FR
KEOLIS
EA
45.38
45.28
-
-
Ste Tpt Com. Urbaine d’Arras
FR
KEOLIS
EA
45.11
45.01
45.37
44.99
Ste Tpt Région Boulogne
FR
KEOLIS
EA
45.37
45.27
45.37
45.26
Sté Tpts Agglom. Chartraine
FR
KEOLIS
EA
45.38
45.28
45.37
45.27
Sté Tpts Commun NÎmois
FR
KEOLIS
EA
45.25
45.16
-
-
Sté Tpts Robert
FR
KEOLIS
EA
45.31
45.21
45.37
45.19
Sté Transports Services Aéroportuaires
FR
KEOLIS
EA
45.38
45.28
45.37
45.27
STUV
FR
KEOLIS
EA
23.09
23.04
45.37
23.03
SVTU
FR
KEOLIS
EA
45.36
45.26
45.37
45.25
BEL
KEOLIS
EA
45.38
32.08
-
-
TICE
FR
KEOLIS
EA
8.51
8.49
45.37
8.52
Tixier Voyages
FR
KEOLIS
EA
45.28
45.28
-
-
Tourisme Garage Vermot
FR
KEOLIS
EA
45.36
45.26
45.37
45.25
TCM Cars
Page 145
Consolidated Financial Statements
Country
SNCF — Financial Report 2008
Company
37 Scope of consolidation
Company
Country
Subgroup
M
PC Year N
PI Year N
PC Year N-1
PI Year N-1
TPN Voyages
FR
KEOLIS
EA
45.38
45.28
45.37
45.27
TPR
FR
KEOLIS
EA
45.38
45.28
45.37
45.26
Tpt de la Brière
FR
KEOLIS
EA
27.14
27.08
45.37
27.07
Tpts Commun Métropole Lilloise
FR
KEOLIS
EA
45.38
45.28
45.37
45.26
Tpts Évrard
FR
KEOLIS
EA
45.21
45.11
-
-
Tpts Paris-Nice
FR
KEOLIS
EA
45.38
45.28
45.37
45.27
Train Bleu Saint-Marcellin
FR
KEOLIS
EA
45.38
45.28
45.37
45.27
Trans Val-de-Lys
FR
KEOLIS
EA
45.38
45.28
45.37
45.26
Transetude
FR
KEOLIS
EA
45.38
45.28
45.37
45.27
Transholding
FR
KEOLIS
EA
45.38
45.28
45.37
45.27
Transorly
FR
KEOLIS
EA
45.38
45.28
45.37
45.27
Transports George’s
FR
KEOLIS
EA
45.38
45.28
45.37
45.26
Transports Lambin
FR
KEOLIS
EA
45.38
32.18
-
-
Transports Penning
BEL
KEOLIS
EA
45.38
32.10
-
-
Transports Urbains de Reims
FR
KEOLIS
EA
44.69
44.60
45.37
44.58
Transroissy
FR
KEOLIS
EA
45.38
45.28
45.37
45.27
Transthermal
FR
KEOLIS
EA
45.38
45.28
45.37
45.27
Transtub
FR
KEOLIS
EA
45.33
45.23
45.37
45.21
TSB
FR
KEOLIS
EA
45.38
32.14
-
-
TVB
FR
KEOLIS
EA
45.38
45.28
45.37
45.27
Var Tour
FR
KEOLIS
EA
45.13
42.81
45.37
42.80
Via Autoroute
FR
KEOLIS
EA
45.38
45.28
45.37
45.27
Via Normandie
FR
KEOLIS
EA
45.38
45.28
45.37
45.27
Voyages Autocars Services
FR
KEOLIS
EA
44.78
44.68
-
-
Voyages Buchet
FR
KEOLIS
EA
45.38
45.28
45.37
45.27
Voyages Chargelègue
FR
KEOLIS
EA
45.28
45.28
-
-
Voyages Dourlens
FR
KEOLIS
EA
45.38
45.28
45.37
45.27
Voyages Lambin
FR
KEOLIS
EA
45.38
32.21
-
-
Voyages Monnet
FR
KEOLIS
EA
45.38
45.28
45.37
45.27
Voyages Nicolay
FR
KEOLIS
EA
45.38
32.10
-
-
VS Voyages
FR
KEOLIS
EA
45.38
45.14
45.37
45.13
VTS Roissy
FR
KEOLIS
EA
45.38
45.38
-
-
FR
KEOLIS
EA
22.69
22.64
45.37
22.63
KEOLIS
EA
22.69
22.64
45.37
22.63
GER
KEOLIS
EA
34.04
33.96
45.37
33.95
First /Keolis Holdings Limited
GB
KEOLIS
EA
20.42
20.38
45.37
20.37
First /Keolis Transpennine Holding Ltd
GB
KEOLIS
EA
20.42
20.38
45.37
20.37
First /Keolis Transpennine Ltd
GB
KEOLIS
EA
20.42
20.38
45.37
20.37
Govia
GB
KEOLIS
EA
15.88
15.85
45.37
15.84
London & South Eastern Railway - LSER
GB
KEOLIS
EA
15.88
15.85
45.37
15.84
Keolis proportionately consolidated subsidiaries Aéroport de Clermont-Ferrand Auvergne CTCOP Extertalbahn
Page 146
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Country
Subgroup
M
PC Year N
PI Year N
PC Year N-1
PI Year N-1
New Southern Railway
GB
KEOLIS
EA
15.88
15.85
45.37
15.84
Orgebus
FR
KEOLIS
EA
22.69
22.52
45.37
22.51
SEACA
FR
KEOLIS
EA
22.69
22.64
45.37
22.63 22.63
SEAG SLIVIA INC STA Chauny Syntus
KEOLIS
EA
22.69
22.64
45.37
USA
KEOLIS
EA
18.15
18.11
45.37
18.11
FR
KEOLIS
EA
22.69
22.64
45.37
22.63
NDL
KEOLIS
EA
22.69
22.64
45.37
22.63
Thameslink
GB
KEOLIS
EA
15.88
15.85
45.37
15.84
Trans Pistes
FR
KEOLIS
EA
18.15
18.11
45.37
18.11
Transévry
FR
KEOLIS
EA
17.89
17.85
45.37
17.85
KEOLIS
EA
15.88
15.85
45.37
15.84
45.26
West Midlands
Consolidated Financial Statements
Company
Ateliers Chantiers de Fécamp
FR
KEOLIS
NC
-
-
45.37
Eastbourne Buses
GB
KEOLIS
NC
-
-
45.37
9,05
Normandy Cars
FR
KEOLIS
NC
-
-
45.37
45.27
Page 147
SNCF — Financial Report 2008
Keolis non-consolidated subsidiaries
Statutory Auditors’ report on the consolidated financial statements Year ended 31 December 2008
To the sole Shareholder, in compliance with the assignment entrusted to us by the French Minister for the Economy, Industry and Employment on 21 April 2008, we hereby report to you, for the year ended 31 December 2008, on: — the audit of the accompanying consolidated financial statements of SNCF; — the justification of our assessments; — the specific verification required by law.
Accordingly, SNCF decided to maintain the level of impairment measured at a flat rate and recorded in previous years. We are unable to conclude as to the recoverable amount of SNCF’s freight assets, whose carrying amount at 31 December 2008 is €2.1 billion before additional impairment of €0.6 billion. A qualification was already expressed in the Statutory Auditors’ report for 2007 regarding this matter.
The consolidated financial statements have been approved by the Board of Directors. Our role is to express an opinion on these consolidated financial statements based on our audit.
Subject to this qualification, in our opinion the consolidated financial statements give a true and fair view of the assets and liabilities and of the financial position of the Group as at 31 December 2008 and of the results of its operations for the year then ended in accordance with International Financial Reporting Standards as adopted by the European Union.
I. Opinion on the consolidated financial statements We conducted our audit in accordance with professional standards applicable in France, except as regards the matter described in the following paragraph. These standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement. An audit involves performing procedures, on a test basis or by selection, to obtain audit evidence about the amounts and disclosures in the consolidated financial statements. An audit also includes assessing the appropriateness of the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Without calling into question the opinion expressed above, we draw your attention to: — notes 2.2 and 7, which set out the accounting impact of the finalisation of the agreement relating to the allocation of assets between SNCF and RFF. Accordingly, the qualification expressed on this matter in the Statutory Auditors’ reports on the consolidated financial statements for 2006 and 2007 is no longer applicable; — notes 1.4 and 2.2, which set out the changes to presentation and the modifications made by SNCF to the 2007 financial statements.
SNCF carried out impairment tests on its assets as described in notes 4.8, 8 and 28 to the consolidated financial statements. For SNCF’s freight business, cash flow projections taken from the business plan and presented to the Board of Directors on 17 December 2008 show negative cumulative cash flows. The Group has not been able to validate the value of certain of these assets on the basis of market values.
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— SNCF carried out impairment tests on its assets as described in notes 4.8 and 8 to the consolidated financial statements: • Due to losses incurred by the Infrastructure business, SNCF carried out impairment tests on the related assets. We reviewed the methods used by SNCF in performing the tests, the cash flow forecasts and the assumptions used and we verified that notes 4.8, 8 and 28 provide appropriate disclosures; • Goodwill amounting to €633 million was tested for impairment in accordance with the principles described in note 4.8 to the consolidated financial statements. Our work involved (i) reviewing the methods used to implement these tests, based on the discounted future cash flows of the businesses in question; (ii) assessing the consistency of the assumptions used with the forecast figures included in the business plans as revised at end-2008; and (iii) verifying that notes 4.8, 8 and 28 provide appropriate disclosures.
The assessments were made in the context of our audit of the consolidated financial statements taken as a whole, and therefore contributed to the opinion we formed which is expressed in the first part of this report.
Consolidated Financial Statements
As stated in note 1.3 to the consolidated financial statements, the accounting estimates made during the preparation of the consolidated financial statements at 31 December 2008 were performed within the current context of uncertainty regarding the economic outlook. It is in this context that, in accordance with the provisions of article L. 823-9 of the French commercial code (Code de commerce), we made our own assessments, which we bring to your attention, except as regards the qualification set out above.
— As stated in notes 4.17 and 31, the Group recognises deferred tax assets in the balance sheet on the basis of forecasts of future taxable profits. We reviewed the methods used for recognising deferred tax assets as well as the profitability forecasts and underlying assumptions. Our work in relation to these figures and assumptions enabled us to assess the appropriateness of the estimates made.
III. Specific verification We have also verified the information given in the Group management report as required by French law. Except for the possible impact of the matter set out in the first section of this report, we have no other matters to report regarding the fair presentation and the consistency with the consolidated financial statements of the information given in the Group management report.
Courbevoie and Neuilly-sur-Seine, 11 March 2009 The Statutory Auditors Pricewaterhousecoopers Audit MAZARS & GUÉRARD Éric BERTIER Marie-Laure PHILIPPART Lionel GOTLIB
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SNCF — Financial Report 2008
II. Justification of our assessments
Company financial statements
French GAAP - In € Millions
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page
150
Income statement
page
152
Statement of cash flows
page
153
Report on SNCF Group corporate governance and internal control
page
155
SNCF — Financial Report 2008
Balance sheet as at 31 December 2008
Company financial statements
Contents
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Balance sheet as at 31 December 2008 French GAAP Appendix
31/12/2008
Intangible assets
Assets (In € Millions)
3
327
250
Property, plant and equipment
3
17,590
16,820
Reseau ferre de france (rff) receivable
4
2,364
3,713
4
5,972
8,060
5
7,936
6,673
cdp receivable
(1)
Other long-term investments Total non-current assets Inventory and work-in-progress Operating receivables Special debt account - assets Employee-related benefits service account - assets
34,189
35,516
6
720
585 8,512
7
9,132
27
88
72
8
3,565
3,330
Marketable securities Cash and cash equivalents Total current assets
9
Prepayments and deferred charges Bond redemption premiums Unrealised foreign exchange losses
31/12/2007
10
74
70
13,580
12,569
315
163
14
7
1,169
972
49,268
49,227
Total assets (1) Offset for the same amount in loans and borrowings (SAAD liabilities; see specific paragraph in Note 2).
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Appendix
Revaluation reserve Retained earnings Net profit for the year
31/12/2008
31/12/2007
4,971
4,971
70
70
1,785
920
633
997
7,459
6,957
Investment subsidies
6,072
5,736
Regulated provisions
-
34 12,728
Net equity
11
Total equity
11
13,531
Provisions for contingencies and losses
12
2,686
2,189
Loans and borrowings
13
18,800
20,504
Operating liabilities
15
10,242
10,263
Employee-related benefits service account - liabilities
27
255
229
Accruals and deferred income
16
2,615
2,331
Unrealised foreign exchange gains
10
1,139
984
49,268
49,227
(2)
Total equity and liabilities
(2) Including the add-back of borrowings following the extinguishment of the SAAD debt (offset for the same amount in the CDP receivable; see specific paragraph in Note 2).
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Liabilities and equity (In € Millions) Share capital
Company financial statements
French GAAP
Income statement French GAAP In € Millions Revenue
Appendix
2008
2007
17
18,519
17,406
1,270
1,214
18
- 8,673
- 8,119
11,116
10,501
Capitalised production and production for stock Purchases and external charges Added value Other operating income
19
Taxes and duties other than income tax Employee benefits expense
20
Gross operating profit Net depreciation, amortisation and provisions
21
Other management expenses Net operating profit Finance costs (1)
22
Net profit from ordinary activities (2)
198
101
- 739
- 707
- 8,591
- 8,229
1,984
1,665
- 1,027
- 835
- 139
- 25
818
805
- 135
113
683
918 27
Exceptional (expense)/income
23
- 110
Profit from tax grouping regime
24
60
51
633
997
Net profit for the year (1) Including one-off dividends paid by SNCF Participations in 2007: €260 million (no payment in 2008). (2) 2007 net profit from ordinary activities, excluding one-off dividends paid by SNCF Participations, amounts to €658 million.
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Statement of cash flows
In € Millions Net income
2008
2007 (a)
2007 published
633
997
997
1,489
1,117
1,117
- 203
- 206
- 206
-
- 7
- 7
1,918
1,900
1,900
Gains (losses) on disposal of assets - Other - Cash flow from company operations (*) Change in working capital Change in scope (independent CPRP current account)
- 102
243
243
(A) Net cash from operating activities
1,816
2,142
2,142
- 3,104
- 2,624
- 2,624
- 3
- 118
- 118
-
-
-
- 322
- 241
- 241
- 3,428
- 2,982
- 2,982
404
529
529
Purchases of intangible assets and property, plant and equipment Change in investment capital requirements ** Equity purchases Other long-term investment purchases Sub-total (1) Proceeds on disposal of intangible assets and property, plant and equipment Equity sales
4
8
8
30
19
19
438
557
557
- 2,991
- 2,426
- 2,426
Share capital increase
1,115
885
885
Investment subsidies received
- 131
-
-
Dividends paid to the French State
- 681
-
-
SAAD balancing payments
1,272
389
389
908
- 1,348
- 1,348
Other long-term investment sales Sub-total (2) (B) Net cash used in investing activities (1) + (2)
New loans secured Loan repayments, net ***
- 164
- 499
- 499
Change in marketable securities ****
- 798
- 574
-
173
281
281
17
- 98
- 98
1,712
- 964
- 390
538
- 1,247
- 673
- 110
1,137
1,137
428
- 110
- 110
Change in other investments Change in cash borrowings **** Other changes (C) Net cash from/(used in) financing activities Increase/(decrease) in cash and cash equivalents ( A+B+C) Opening cash and cash equivalents
* Cash flow from operating activities amounted to €1,888 million after restating charges/reversals to provisions for current assets (€30 million in 2008). ** Change in suppliers of fixed assets. *** Including receipts on the RFF receivable: + €1,242 million; receipts on the CDP receivable: +€1,966 million and loan repayments: -€2,300 million as at 31 December 2008. **** Portion with an initial maturity of more than 3 months. (a) A 2007 pro forma statement was prepared following the reclassification in “Change in other investments” of cash deposits previously classified in cash.
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- Net depreciation, amortisation and provisions (excluding current asset provisions)
Company financial statements
Adjustments for non-cash and items not related to operating activities
Statement of cash flows
The difference between balance sheet cash and closing cash and cash equivalents (maturing in less than 3 months) breaks down as follows: In € Millions Cash borrowings maturing in less than 3 months
2008 428
Marketable securities maturing in more than 3 months
2,182
Accrued interest payable maturing in 3 months or less
1,022
Balance sheet cash (Cash and cash equivalents and marketable securities) Trésorerie au bilan (disponibilités + VMP)
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Statutory Auditors’ report on the financial statements Year ended 31 December 2008
I. Opinion on the financial statements We conducted our audit in accordance with professional standards applicable in France, except as regards the matter described in the following paragraph. These standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit involves performing procedures, on a test basis or by selection, to obtain audit evidence about the amounts and disclosures in the financial statements. An audit also includes assessing the appropriateness of the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. SNCF carried out impairment tests on its assets as described in notes 2 and 3 “Impairment tests” to the financial statements. For SNCF’s freight business, cash flow projections taken from the business plan and presented to the Board of Directors on 17 December 2008 show negative cumulative cash flows. The Group has not been able to validate the value of certain of these assets on the basis of market values. Accordingly, SNCF decided to maintain the level of impairment measured at a flat rate and recorded in previous years. We are unable to conclude as to the recoverable amount of SNCF’s freight assets, whose carrying amount at 31 December 2008 is €2.1 billion before additional impairment of €0.6 billion. A qualification was already expressed in the Statutory Auditors’ reports for 2006 and 2007 regarding this matter. Subject to this qualification, in our opinion the financial statements give a true and fair view of the assets and liabilities and of the financial position of the Company as at 31 December 2008 and of the results of its operations for the year then ended in accordance with accounting rules and principles applicable in France. Without calling into question the opinion expressed above, we draw your attention to the paragraph “Definitive allocation of
II. Justification of our assessments As stated in note 2 to the financial statements, the accounting estimates made during the preparation of the financial statements at 31 December 2008 were performed within the current context of uncertainty regarding the economic outlook. It is in this context that, in accordance with the provisions of article L. 823-9 of the French commercial code (Code de commerce), we made our own assessments, which we bring to your attention, except as regards the qualification set out above. Due to losses incurred by the Infrastructure business, SNCF carried out impairment tests on the related assets. We reviewed the methods used by SNCF in performing the tests, the cash flow forecasts and the assumptions used and we verified that notes 2 and 3 “Impairment tests” provide appropriate disclosures. The assessments were made in the context of our audit of the financial statements taken as a whole, and therefore contributed to the opinion we formed which is expressed in the first part of this report.
III. Specific verifications We have also performed the specific verifications required by French law. Except for the possible impact of the matter set out in the first section of this report, we have no other matters to report regarding the fair presentation and the consistency with the financial statements of the information given in the management report of the Board of Directors with respect to the financial position and the financial statements.
Courbevoie and Neuilly-sur-Seine, 11 March 2009 The Statutory Auditors Pricewaterhousecoopers Audit MAZARS & GUÉRARD Éric BERTIER Marie-Laure PHILIPPART Lionel GOTLIB
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Company financial statements
These financial statements have been approved by the Board of Directors. Our role is to express an opinion on these financial statements based on our audit.
assets between RFF and SNCF” in note 2 to the financial statements, which sets out the accounting impact of the finalisation of the related agreement. Accordingly, the qualification expressed on this matter in the Statutory Auditors’ report on the financial statements for 2007 is no longer applicable.
SNCF — Financial Report 2008
To the sole Shareholder, in compliance with the assignment entrusted to us by the French Minister for the Economy, Industry and Employment on 21 April 2008, we hereby report to you, for the year ended 31 December 2008, on: — the audit of the accompanying financial statements of SNCF; — the justification of our assessments; — the specific verifications and information required by French law.
Audit and Risk Department Chairman’s report on the terms and conditions governing the preparation and organisation of the Board of Directors’ work and the internal control and risk management procedures The report on the terms and conditions governing the preparation and organisation of the Board of Directors’ work and the internal control and risk management procedures, prepared by the Audit and Risk Department for financial year 2008, was presented to the Board of Directors on 11 March 2009. It describes the progress made in setting up a quality internal control function, to which SNCF has long been committed, not only in terms of financial reporting reliability but also in regard to all operating activity.
— Summary of the work of the Regional Internal Control Coordinators who assess internal control strengths and weaknesses in their establishments;
The report is based on the work of the AMF (French Securities Regulator) designated working group responsible for the selection and adaptation of an internal control framework, and an application guide covering internal control for accounting and financial information published in January 2007. The framework provides for the classification of internal control procedures according to the four aims determined by the working group: compliance with laws and regulations, application of directives set by the Chairman and Executive Management, proper functioning of the company’s internal control processes, and financial reporting reliability.
— Management of information system security by the Audit and Risk Department and the involvement of its specialised information system unit for major projects carried out by the company;
— Coordination of the risk management approach in all Group entities, with the mobilisation of Divisions on the follow-up of action plans and the appropriation of a risk self-assessment process (test assignment with HR management);
— Roll-out of improvement measures for all Divisions, Fields and Transversal Functions, with the designation of dedicated internal control managers and the introduction of an intranet gateway for the follow-up of action plans that were drafted following audits. This report is available on simple request from the SNCF Audit and Risk Department, 8 rue des Pirogues de Bercy – 75012 PARIS.
The main improvements to the SNCF internal control function for 2008 concern the following: — The renewal of governance in the second half of 2008 based on the following strategies: – Review of limits in terms of the Board of Directors’ delegation of powers to the Chairman; – Reorganisation of the commitment approval and monitoring process based on a single authority, the Commitment Committee.
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