President`s report 2008

Transcription

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RATP financial report 2008
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Actiif
RATP
Communications department
54, quai de la Rapée • 75599 Paris Cedex 12
www.ratp.fr
8 380
8 7227
9 0333 825
155 299
Attestation of the persons responsible for the annual report
We, the undersigned, hereby attest that to the best of our knowledge the financial statements have been prepared in accordance with generally
accepted accounting principles and give a true and fair view of the assets, liabilities, financial position and results of operations of the company
and all the companies consolidated, as well as a description of the main risks and uncertainties facing them.
Chairman and Chief Executive Officer
Chief Financial Officer
Pierre Mongin
Alain Le Duc
Contents
2/
The President’s report page 7 /
Management report page
23 /
Individual financial statements page 64 /
Consolidated financial statements page
1
1. GROUP ORGANIZATION CHART
RATP
RATP Développement
95.41%
Tram Firenze
24.9%
Telecoms
Mobicité
100%
Financière Transdev
RATP International
Xelis
Telcité
49.89%
100%
100%
100%
FlexCité 77
EM Services
100%
90%
FlexCité 91
Groupe Transdev
Alexa
Naxos
51.3%
37%
100%
100%
FlexCité
FlexCité 93
51%
100%
Real Estate
LFI
Financière Systra
SEDP
32.46%
50%
100%
LFI Services
Groupe Systra
SADM
100%
71.73%
100%
FlexCité 94
51%
Orlyval Service
99%
Sales
& Marketing
TFT SPA
100%
TP2A
Promo Métro
51%
100%
RFT SPA
Equival
100%
50%
Groupe Cars Giraux
100%
Gest SpA
51%
STBC
15%
Autolinee Toscana
100%
SQY Bus
37.11%
52.54%
Société financière
Groupe Perrier 100%
Cars Perrier
79.87%
20.13%
Jacquemard
SCI Pimian
100%
100%
Eurailco GmbH
Trans Regio
50%
75.1%
SLT
SELT
51%
49%
SCI Perrier
40%
60%
TRANSPORTATION
Bombela Operating
Company 51%
2
ENGINEERING
TELECOMS,
REAL ESTATE
& MARKETING
Management report 2008
Changes in scope
Globally, the results for 2008 met targets, both in terms of production
and quality, despite difficulties due to network saturation.
Newly-consolidated entities
At RATP, service provision increased 4.1% year-on-year and traffic
increased 3%.
RATP Développement acquired a 100% stake in Cars Jacquemard
and SCI Pimian. These companies operate a transport network
in the Eure-et-Loir region.
The companies FlexCité 93, FlexCité 77 and 91 were consolidated
in 2008. They are wholly-owned subsidiaries of Flexcité, which
is 51% owned by RATP Développement. They were set up to provide
transport services for people with impaired mobility.
Disposals/deconsolidations
• RATP Développement sold its stake in Transports du Val-d’Oise (TVO).
• As RATP Développement did not participate in the capital increase
of the Moroccan company M’Dina its interests were diluted
and it now holds less than 5%. Consequently, M’Dina is no longer
consolidated.
Changes in ownership interests
• RATP Développement increased its stake in Société de lignes
touristiques (SLT) by 1%.
• Giraux Transports Services (GTS) increased its stake in Transports
Voyageurs du Mantois and Compagnie des transports voyageurs
du Mantois Interurbains. GTS and Cars Giraux wholly own these two
companies.
• Cité bleue is now wholly owned (compared with 20% in 2007)
by STIVO, which is a 50% owned subsidiary of GTS.
In 2008, RATP recorded 3,037 million passenger trips, which
is 300,000 passengers more than for the previous year. The increase
reflects STIF’s service and pricing policy (particularly the provision
of free transport services).
Passenger revenues measured in terms of paying traffic volume
increased 0.9%.
3. SIGNIFICANT EVENTS FOR THE GROUP
Following the implementation of the new STIF agreement
and remuneration arrangements, to facilitate year-on-year comparisons,
2007 revenue has been adjusted to include the flat contribution
which covered financing expenses in the previous agreement.
The four key financial indicators, which provide a clear picture
of the consolidated results are:
• revenue, up 5.2%;
• net income, of €141 million group share;
• shareholders’equity, up by approximately €58 million;
• net debt, up by more than €210 million from 2007 levels.
3.1 Transportation
RATP
2. BUSINESS OVERVIEW
Consolidated revenue was up by more than 5.2% at €4,317 million.
The contribution made by RATP and the subsidiaries to increased,
with the Group reporting net income of €141 million.
(in millions of euros)
Net income at December 31, 2008 amounted to €125 million
compared with €84 million as at December 31, 2007. It comprises
the following:
12/31/2008
12/31/2007
CHANGE
Revenue
4,075
3,895
180
CHANGE AS A%
4.62%
Net operating expenses
3,215
3,095
120
3.88%
Gross operating surplus
859
800
59
7.38%
Net income
125
84
41
48.81%
Cash earnings
691
625
66
10.56%
3
In France
• The award of contracts to provide transport services for people with
impaired mobility in the administrative departments 77 and 91.
• Pressure on transport companies’earnings in the Île-de-France region
due to increases in fuel prices and payroll costs (termination
of the 20% reduction in social security contributions for bus drivers).
• RATP Développement sold its 35% stake in TVO to Veolia Transport
in July and purchased minority interests of 30% and 34.36% from
Veolia Transport in CTVMI and TVM. CTVMI and TVM are subsidiaries
of Giraux Transport Services and Cars Giraux respectively.
• RATP Développement acquired a 10% stake in the company set up
by the investment fund LBO France to acquire the Tourexcel group.
It also increased its stake from 50% to 51% in SLT (no effect
on the consolidation method).
• Acquisition of Cars Jacquemard, an intercity transport company
in the Eure-et-Loir region.
Revenue
Revenue amounted to €4,075 million. The main components were:
• passenger revenue of €1,942 million representing 48% of aggregate
revenue;
• STIF contribution of €1,831 million.
Revenue increased 4.62% mainly due to:
• the indexing of RATP’s remuneration, which was high this year
at +3.42% due to exceptional economic conditions (surge in oil prices
and inflation before the summer);
• the expanded service offering decided and funded by STIF;
representing a 1.4% increase.
Net operating expenses
Net operating expenses were up 3.9% at €3,215 million compared
with €3,095 million in 2007 (€120 million increase).
The main factors of change were:
• inflation: up 2.8% by €87 million;
• change in the service offering, which increased expenditure
by 1.8% or €55 million. The expanded service offering was decided
and remunerated by STIF and led to the creation of 900 jobs;
• significant increase in energy costs of €16 million, (fuel prices were
up by €13 million and electricity by €3 million), which contributed
0.6% to the aggregate increase;
• increase in equipment costs and other external expenses of €12 million;
• decrease in productivity of €48 million, which reduced aggregate
costs by 1.5%.
Outside France
• Bidding for a number of contracts, in particular to operate the Algers
tramway and Stockholm metro.
• RATP Développement did not participate in the capital increase
of M’Dina bus in the fourth quarter. Its shareholding in M’Dina
was thus reduced to less than 5%, so it is no longer consolidated.
• At the end of the year, Trans Régio began operating the
Mittelrheinbahn 200 km regional railway line connecting the towns
of Cologne, Coblence and Mayence.
Gross operating surplus increased by €59 million. It represented 21%
of revenue compared with 20% in 2007.
Cash earnings were up at €691 million, almost 11% higher than
the amount generated in 2007 (€625 million).
Transdev posted strong revenue growth, particularly due to the full-year
effect of the acquisition of Connexxion, although earnings were
impacted by the national strike, which affected Connexxion and all
other transport operators in the Netherlands during the first half.
Capital expenditure amounted to €1,012 million in 2008, up €79 million
from the €933 million reported in 2007.
3.2 In the Engineering divison,
Net debt totalled €4,485 million at year end 2008 compared
with €4,294 million at the end of 2007. The company’s investment
resources of €891 million were mainly derived from cash earnings
(€691 million) and subsidies (€193 million), which did not cover all
investment requirements.
Xelis, the engineering subsidiary set up three years ago, performed
well. As expected, Systra reported lower earnings than for the previous
year, but the level of earnings was satisfactory (4% of revenue).
3.3 In the telecommunications, real estate
and marketing division,
Other transportation subsidiaries
a slowdown of activity is expected in the telecommunications
and Promo Métro subsidiaries.
The significant events of financial year 2008 for the transportation
subsidiaries were:
4. RATP GROUP CONDENSED FINANCIAL INFORMATION
These results are presented in compliance with IFRS.
4.1 Changes in consolidated revenue
CONSOLIDATED REVENUE
12/31/2008
CONSOLIDATED REVENUE
12/31/2007
CHANGE
VOLUME
AS A%
VOLUME
AS A%
RATP
Other
Total Transportation
Total Engineering
Total Telecoms, Real Estate
& Marketing
4,029
128
4,156
121
93.3%
3.0%
96.3%
2.8%
3,858
94
3,952
115
93.7%
2.4%
96.1%
2.9%
4.4%
36.2%
5.2%
5.2%
40
0.9%
38
1.0%
5.3%
TOTAL GROUPE RATP
SUBSIDIARIES
4,317
289
6.7%
4,105
248
6.3%
4
5.2%
Management report 2008
RATP revenue for 2008 was up 4.4% from the previous year. The increase includes the effects of the newly-negotiated agreement with STIF,
the new level of contributions and the expanded service offering financed by STIF.
The contribution of subsidiaries, excluding equity-accounted associates, increased at a greater pace (up 16.3%), spurred by strong growth
from RATP Développement (up 35.8%).
RATP Développement benefited from the full-year effect of the acquisition of the Giraux activities, the new consolidations in 2008 (Jacquemard,
Flexcités, as well as the new TP2A contract), and from business growth outside France in the preparatory stages of operations in South Africa
and Algeria.
The Engineering division recorded another year of strong growth, through Xelis, which succeeded in securing its first non-RATP contracts,
and Systra. The Systra group managed to increase its revenue by 40% in three years and has significantly renewed its backlog.
The subsidiaries’share of aggregate revenue increased from 6% to 6.7%. Consolidated revenue amounted to €4,317 million in 2008
(up 5.2% from 2007).
4.2 Consolidated net income
RATP group’s consolidated net income for 2008 comprises the earnings of RATP and its subsidiaries, which contributed as follows:
12/31/2008
12/31/2007
CHANGE
RATP
127,156
99,727
27,429
27.50%
6,486
2,872
3,614
125.82%
Other transport subsidiaries
Transportation
AS A %
133,642
102,599
31,043
30.26%
Engineering
3,986
4,702
– 716
– 15.23%
Telecoms, real estate and marketing
3,719
4,844
– 1,125
– 23.22%
141,347
112, 143
29,204
26.04%
14,191
12,417
1,774
14.28%
TOTAL GROUPE
SUBSIDIARIES
RATP’s contribution to consolidated net income was higher than in 2007, due to the factors mentioned in paragraph 3.1.
The subsidiaries’contribution increased from €12.4 million to €14.2 million. The improvement in earnings from transport business (up €3.6 million)
offset the anticipated slowdown in engineering activities, which were boosted by exceptional factors in 2007, and in telecoms, real estate
and marketing activities.
Significant features regarding the transport business during the period were:
• a marked improvement in the earnings generated by RATP Développement and its subsidiaries (up €8.2 million) due to:
➢ exceptional income from the capital gain (€4 million) on the sale of RATP Développement’s 35% stake in TVO to Veolia;
➢ the deconsolidation of M’Dina bus;
➢ the reduction in the loss recorded for Transrégio.
Without the first two factors, 2008 net income of RATP Développement and other subsidiaries would have decreased from €3.3 million
to –€1 million, comprising:
➢ –€4.9 million of holding and commercial investment costs;
➢ +€5 million for the French subsidiaries, which generated profits in line with industry averages;
➢ –€1.6 million for Transrégio;
➢ +€0.5 million for other foreign subsidiaries.
• a sharp drop in Transdev’s earnings (down by €4.5 million) mainly due to:
➢ the difficulties encountered by the Connexxion group with the national strike that lasted for over one month and considerably affected
the company’s earnings. The company only received partial compensation for the strike at the end of 2008 (negotiations are under way
with the Dutch government and client local authorities). The company also incurred losses on maintenance activities;
➢ downward pressure on contract earnings (termination of the 20% reduction in France, fuel prices, increase in investments) and difficulties
on the German market.
5
4.3 Group net debt as at December 31, 2008
The change in consolidated net debt between year-end 2007 and year-end 2008 was as follows:
GROUP DEBT
TRANSPORTATION DIVISION
RATP
Financial assets
OTHER
TOTAL
ENGINEERING
DIVISION
REAL ESTATE
TELECOMS/MARKETING
290
210
33
243
12
36
4,755
4,695
34
4,729
7
18
Net debt in 2008
4,464
4,485
1
4,486
–5
–18
Net debt in 2007
4,254
4,299
3
4,302
–14
–34
Loans and borrowings
Consolidated net debt at December 31, 2008 was almost €210 million higher than at year-end 2007, mainly due to RATP’s debt and to a lesser
extent as a result of a decrease in the positive net cash position (or negative net debt) of the subsidiaries.
The change in the net cash position of the subsidiaries mainly concerned:
• Systra, whose growth generated high working capital requirements;
• and SEDP, due to the reversal of timing differences between the receipt of RATP advances and the payment of expenses relating to management
and work contracts commissioned by RATP.
4.4 Capital expenditure
The parent company invested significant amounts during 2008, contributing more than €1 billion to aggregate group capital expenditure
(€1,028 million compared with €882 million in 2007).
The investment plan is at record levels and is the cause of the increase in debt.
The main components are as follows:
• €210 million for the increase in transport capacity provided for by the State-regional contractual plan for the Île-de-France region: extension
of metro line 13 launched in June, work on line 4 and the T2 tramway, extension of line 14 to Olympiades;
• €725 million for the modernization and renewal of equipment and material in order to maintain operations on existing lines. Railway rolling
stock represented €203 million of this amount, with the renovation of MS61 equipment for RER line A and MF77 equipment for metro line 12;
the renewal of the bus park cost €71 million in 2008;
• €61 million has been spent on programs managed jointly by the regional authorities and STIF concerning accessibility, passenger information
and video surveillance.
5. OUTLOOK FOR 2009
2009 is year two of RATP’s 2007-2011 agreement with STIF.
As in 2008, earnings may not reach the target levels set in the agreement. Moreover, given the current economic slowdown it is unlikely
that the Group will be able to bridge the gap previously made between target and actual earnings.
In addition, after the positive effect of the €15 million received by RATP from STIF to bring its remuneration into line with actual costs,
in light of the current economic environment, the opposite effect could arise in 2009.
However, a negative effect could be compensated or even reversed by the constant efforts to increase productivity programmed in the business
plan for 2008-2012.
In connection with the national stimulus plan, at the beginning of 2009 the RATP Board of Directors voted and validated an increase in the capital
expenditure budget of over €450 million for 2009. The total investment budget for 2009 is €1.428 billion, which is 43% higher than the budget
approved for 2008 (€998 million).
The additional investment will partially be financed by a State allocation of €150 million.
With regard to the subsidiaries, during 2009 significant activity will include RATP Développement’s implementation of its partnership
with Veolia Transport in Asia, and the expected improvement in Transrégio’s earnings. Overall, the subsidiaries should break even.
Transdev should generate a normal level of earnings.
The contribution of the engineering subsidiaries is expected to decrease slightly in 2009 due to the current economic situation.
The same is true for the telecommunications subsidiaries, where contracts are still under renegotiation and the fees payable to RATP have increased.
6
The President’s report
on the preparation and organization of the Board of Directors’ work
and internal control for the year ended december 31, 2008
Introduction page
8/
The Board of Directors page
8/
Organization of internal control page
9/
13 /
Appendices page 15 /
Control activities page
7
Introduction
The purpose of this document is to report on the preparation
and organization of the Board of Directors’ work and on the internal
control procedures implemented by RATP, in accordance with
the provisions of Article L. 225-37 of the French Commercial Code.
The structure of this report is based on the Reference Framework on
internal control issued in January 2007 by the French financial market
authority (Autorité des Marchés Financiers-AMF) in order to provide
guidelines to French companies that are required to prepare a report
on internal control.
Internal control is defined as a system used by companies to ensure:
• compliance with current laws and regulations;
• implementation of the instructions and guidelines issued
by the Management Board;
• smooth running of the Company’s internal processes, particularly
those used to safeguard assets;
• reliable financial information.
As stated in AMF’s Reference Framework, “by contributing to
the prevention and management of risks that can hinder the Company
in achieving its objectives, the internal control system plays a key role
in the manner in which the Company’s business activities are
conducted and managed. However, internal control cannot provide
absolute assurance that the Company’s objectives will be met”.
The internal control system is based on five components:
• internal control environment;
• risk assessment;
• communication and dissemination of information;
• control activities;
• management activities.
The Board of Directors is the supreme governance body that ensures
that the internal control system is appropriate for the company.
The first part of this report describes the way the system works
and the significant work performed during 2008.
The second part provides an overview of the organization
of the internal control system.
The third part discusses the control and management activities
and their role in ensuring reliable accounting and financial information.
This report was presented to the Audit Committee. Due to new
legislation effective as of 2008, it will also be submitted to the Board
of Directors(1) for approval.
1. THE BOARD OF DIRECTORS
Decisions are taken on the basis of work prepared by two standing
committees, one of which deals with matters concerning technical
and technological modernization and development, and the second,
economic and strategic issues. The committee for economic
and strategic issues also monitors compliance with the RATP/STIF
agreement and subsequent clauses and amendments, and
the business plan.
The role of the Audit Committee, comprising six Board members,
is to advise the Board on the financial statements, particularly with
regard to the reliability of the information systems used to prepare
them, financial management, accounting and management principles,
risk management and financial reporting.
The Board’s President sets the agenda of strategic issues to be discussed
for the purposes of policy-making. He may set up ad hoc working
groups to advise on specific issues.
The Board’s President has entrusted the two chairmen of the standing
committees with the task of assessing the Board’s governance,
due to the increasing strategic role of Boards of public sector trading
companies (EPICs). The chairmen will ensure that the Board has
access to all the data it requires, in terms of quality and quantity,
to enable it to make well-informed decisions.
1.2 Significant work conducted by the Board in 2008
1.2.1 STIF agreement for 2008-2011
The agreement entered into with STIF for the period from 2008
to 2011 paves the way for significant improvement in the quality
of transport services in the Île-de-France region, and provides the State
transport company RATP with a clearer outlook. It imposes additional
constraints on RATP, with incentives to improve and extend passenger
transport services in the Île-de-France region, particularly in terms
of regularity, passenger information, assistance, equipment availability,
information at stations, cleanliness of trains and other passenger areas
and security through video-surveillance equipment. RATP is now
committed to meeting quality of service targets for each Metro line,
for RER lines A and B and for each category of bus line, including the
Mobilien lines. The quality of service scheme with performance-based
rewards and penalties has been extended to €25 million per year,
as a permanent incentive for RATP to improve passenger services.
RATP plans to invest €5 billion over the duration of the agreement
from its cash earnings, which have increased significantly over the last
four years, and from State, regional and local authority contributions.
A detailed review of the agreement is presented to members
of the Board each quarter.
1.2.2 Financial management
1.1 Work of the Board
The RATP Board of Directors comprises 27 members, pursuant
to the Decree 84-247 of April 13, 1984, amended by Decrees 2004-500
of June 7, 2004 and 2006-1018 of August 11, 2006 (Appendix 1).
The Board is chaired by Mr Pierre Mongin, who was appointed
Chief Executive Officer of RATP by the Decree dated July 12, 2006.
The Board of Directors is responsible for all the company’s strategic
decision-making on key economic, financial and technological issues.
This includes matters relating to the company’s state-regional
contractual operating plans, its business plan and the contractual
agreement with the Île-de-France transport authority (Syndicat
des Transports d’Île-de-France – STIF).
The Board approved the financial statements for the year ended
December 31, 2007, the individual company and consolidated
financial statements for the six-month period ended June 30, 2008,
and the company’s budget for 2009, at its meeting in November 2008.
The capital expenditure budget of €1,128 million is up by €130 million,
which is 13% more than the amount invested in 2008. The sharp
increase reflects the constant efforts made by RATP to modernize
and extend its network, implement technical solutions to relieve traffic
on congested lines and meet the increasing demand for modern
and reliable public transport services.
The Board examined the annual report on purchasing policy.
(1) French Act 2008-649 of July 3, 2008 introducing provisions and amendments to French corporate law and EU law. Articles 26 and 29 (Official Gazette July 4, 2008).
8
President’s report 2008
The Audit Committee continued its work on validating the processes
used to prepare the annual and half-yearly consolidated financial
statements and examining the risks relating to subsidiaries, thus
contributing to the company’s financial security. The Committee also
examined the 2008 Internal Audit report and annual plan for 2009
and the results of two internal audit assignments.
1.2.5 RATP’s asset policy
For the first time, the Committee auditioned the audit firms during
the bidding process for the 2009-2014 statutory audit engagement.
1.2.6 Institutional relations
1.2.3 President’s commitments and first year implementation
of the 2008-2012 business plan
The Ad Hoc Committee set up to review the status of the
17 commitments made by the President convened in October 2008.
It examined progress towards fulfilling the commitments, particularly
in relation to the 22 key objectives set out in the business plan.
The Committee found that:
• 7 commitments had been met, but remained a concern and would
continue to be monitored as key areas of improvement, in line
with the STIF agreement;
• 7 commitments were renewed as key objectives;
• 3 of the 17 commitments will continue to be monitored.
The President informed Board members throughout the year
of business plan implementation and progress towards meeting plan
objectives.
In 2008, the Board approved major infrastructure and property
maintenance contracts and decided on various property acquisitions,
which will improve service quality and enable RATP to develop its
services.
The President reported to the Directors on the various meetings held
with the governing authorities, and on the hearings attended
at the National Assembly and before the STIF Board of Directors.
The main matters dealt with by the Board are listed in appendix 2.
Details of the work conducted by the Board and the Committees
in 2008 are provided in appendix 3.
2. ORGANIZATION OF INTERNAL CONTROL
2.1 Internal Control environment
RATP has tailored its internal control system and risk assessment
and management methods to the specific requirements of its internal
control environment.
2.1.1 Complex institutional environment
1.2.4 RATP’s development policy
The Board discussed and took decisions on development policy at each
of its meetings in 2008.
The Board approved the guarantees given by RATP in connection
with the Trinidad and Tobago rail transport contract and RATP
Développement’s guarantee on a bid for tender in Germany.
It also approved the bid to operate the Stockholm Metro, and issued a
favorable opinion on the Tourexcel operation. The Board was informed
of subsidiaries’ 2008 outlook, and approved RATP Développement’s
mid-term Plan for 2009-2013, in November 2008.
In accordance with the control procedures relating to subsidiaries
(§ 3.2 Control of subsidiaries) only the development decisions that had
previously been discussed and studied by the Board were presented
to the Directors for approval. The Board approved several projects
proposed by RATP Développement, which required guarantees
(Trinidad and Tobago contract), the preparation of an opinion on
prospective equity investments (Tourexcel operation), and bids for
tender (operation of railways in Germany and the Stockholm metro).
The President regularly informed the Directors of relations with
Transdev.
He also informed Directors of developments within the company
on the Métrophérique project and underlined its importance both in
relieving network congestion and generally for the Île-de-France region.
A debate was held on the subject at the Board meeting in October 2008.
During its June 2008 meeting, the Board approved investments in
equipment to increase transport capacity comprising two MI2N levels
for the RER line A. On numerous occasions, the President provided
information on the measures taken to improve RER line A operations
and on the planned interoperability of RER line B trains.
An agreement on the latter was entered into with the unions.
RATP adheres to ethical values, which are reflected in its commitment
to institutional charters such as the Charter of the International
Association of Public Transport (UITP – 1999), the United Nations
World Pact (2003), the National Accessibility Charter (2003),
and the Company Diversity Charter (2004). In October 2008, RATP
renewed the framework agreement entered into in 2004 with
the Agency for the Environment and Energy (Ademe), for three years.
The agreement focuses on two main objectives: saving energy
and increasing public awareness of environmental issues.
Due to its field of business and legal status (EPIC), internal controls
have always been an integral part of RATP’s operations.
As a State-owned company, RATP is subject to French government
controls, which are conducted by two entities:
• the Economic and Financial Control Board for Transport(2);
• the French Procurement Board, set up by the Order of January 11,
1973(3) and chaired by a representative of the National Audit Office.
RATP’s financial statements are audited by the Statutory Auditors
PricewaterhouseCoopers and KPMG.
RATP entered into an agreement with the Île-de-France regional
transport authority (STIF) in 2000. The RATP/STIF agreement has
been regularly updated since by riders and additional contractual
clauses. The third agreement was signed on February 21, 2008
for the period from January 1, 2008 to December 31, 2011.
Improving quality is a constant concern for the company. Quality
control systems are in place and the company has received quality
certification under French and international standards (ISO, NF
and Qualicert). The certifications, which are issued by independent
bodies, concern both management systems and performance in terms
of environmental issues and quality of service.
(2) As an EPIC, RATP is subject to economic and financial control by the State (Decree no. 2002 -1502 of December 18, 2002).
(3) Amended by the Order of March 23, 2005 (Official Gazette of April 13, 2005).
9
The employees involved in internal control procedures (senior
management, operational managers and specialized audit and control
staff) base their work on professional audit and internal control standards
and on the internal control definitions set by the professional bodies
such as the French Audit and Internal Control Institute (IFACI) for
the Internal Audit.
2.1.2 Compliance with laws and regulations
The company’s legal department provides advice and analysis, draws
up contracts, and handles complaints for all the company’s business
activities. One of its roles is to prepare for change by monitoring legal
developments (other than on technical matters), disseminating
information on best practice, assessing risk and setting up insurance
coverage. The department’s permanent primary objective, particularly
as it is positioned to provide support to all levels of the company,
is to ensure that the legal aspects of all the projects and operations
undertaken by the company are legally secure and compliant.
In 2008, the legal department assisted in implementing the companywide regulations laid out in 2007. It also managed the process
of updating the authorizations and signatures used throughout
the company. Its work was greatly impacted by the entry into force
of the European regulation on public service transport obligations(4),
by its relations with STIF, by the implementation of the social
and economic reforms introduced over the summer of 2008,
and by the renewal of the company’s civil liability transport contract.
2.2 Organization of internal control
The internal control system is effective if all employees are involved
at all levels of the company. For this reason, the company ensures that
all its employees participate in developing an internal control system
that guarantees personal safety and secure operations.
2.2.1 A tried and tested system
➢ Business Unit level
• at local level, internal control is performed directly by management.
Operational managers play a key role. They are responsible
for implementing production processes in compliance with current
legislation and policies, and providing users with high quality
transport services;
• support and control groups are on hand to assist managers
in achieving their goals by providing expertise and measuring
performance. This is the case, for instance, for the management
control, human resources, purchases and communication functions.
➢ Department level
Other employees are involved at department level:
• transport and service controls are decentralized and performed
per type of control (transport or maintenance inspections);
• specialized audits are performed within each department;
• systems risk management;
• quality controls are performed within each department.
It is the responsibility of the Inspector-General, head of the Internal
Audit, to provide advice, enforce ethics and methods and share
information among the departments. It does so through the audit
network, which comprises all the aforementioned departments.
The network met three times in 2008.
(4) Official Journal of the European Union of December 3, 2007.
10
➢ Company-wide functions
The Internal Audit is responsible for:
• conducting internal audits to “provide assurance on the level
of control over operations by auditing and assessing the business
activities of RATP group”(5);
• conducting general inspections to “enhance RATP’s management
and internal control”(6).
The internal control work is part of an annual plan established
on the basis of proposals made by members of the Executive Board(7)
and the main risks identified during the Company’s risk mapping
process. The annual plan is submitted to the Audit Committee,
then approved by the Executive Board.
When the audit work is completed, a report is prepared for the attention
of the President, the other members of the Executive Committee,
and the heads and managers of the departments and business units
directly concerned. The reports issued by the Internal Audit are strictly
confidential and are submitted directly to the President and
engagement manager.
Within two months following each audit, the heads and managers
of the audited units or departments are asked to draw up and submit
an action plan to the Internal Audit. Once verified by the Internal
Audit, the action plan is sent for validation by the audit engagement
manager.
From time to time, the Audit Committee may ask for audit engagements
to be performed and have the audit conclusions presented by
the Internal Audit.
The main role of the General Safety Control is to monitor all
the processes relating to company safety, particularly in terms
of railway safety, fire safety, information systems security, the safety
of goods and persons and the prevention of natural disasters.
The entity comprises two units: the Fire Safety unit and the Corporate
Risk Management unit.
A Risk Manager was appointed at RATP group level on November 1,
2008, in line with one of the 22 main objectives of the 2008-2012
business plan, which was to improve risk management by ensuring
the active participation of all employees. The first phase of work
toward this objective entailed auditing the current situation at RATP,
and benchmarking with comparative companies and providers
of similar services.
The Risk Manager reports directly to the Chief Executive Officer.
In addition to updating the risk map (created in 2003 and updated
in 2005), his role is to permanently monitor all company risk,
and particularly the risks and opportunities specific to the company’s
operating environment.
The STIF Relations Manager, reports directly to the Chief Executive
Officer. He is responsible for managing the implementation
of the agreement entered into with STIF and reports on operations
to STIF on a monthly, quarterly and annual basis. Management
committees combining members of STIF and company representatives
are set up on a regular basis to discuss various issues (service offering,
quality of service, ticket sales, economic and price issues, investments,
communications). Specific committees are set up as required (line
committees, financial agreements).
(5) IG 432 C of September 2, 2003, art. 2.1.
(6) NG 5265 of May 19, 1999.
(7) Members of the Executive Committee, department managers and delegates.
The Innovation and Sustainable Development Delegation is
responsible for working alongside the units and departments to create,
implement, accompany and monitor policies relating to quality
advancement, sustainable development and research and innovation
within the Company. The Delegation provides methodological and
technical assistance to the units and departments under its guidance.
Information on the company’s achievements with regard to
sustainable development is provided in the Sustainable Development
Report.
Appendix 4 summarizes the company-wide functions mentioned
above.
The table in appendix 5 illustrates the organization of the internal
control system.
2.2.2 Adapted policies
➢ Human resources management policy
With 234 different activities divided into four main categories
(operations, maintenance, development/projects/engineering, resource
management), the company deals with more than 60,000 job
applications per year, mainly originating from the recruitment website.
Various employees participate in the recruitment process.
At department level, recruitment managers are responsible for
measuring the skills, motivation and personality traits of applicants
against the skills and profile required for each post. Subsequently,
operational managers make the recruitment decision based on
an interview with the applicant and the report on the interview held
by the human resources department.
Since October 2007, applicants have only been selected through
the website. Applications are anonymous and are processed solely
on the basis of professional skills and experience, regardless of age,
gender, disability or place of residence. All those participating
in the selection and recruitment process are committed to a strict
code of ethics and are trained to work in an open, multicultural
environment.
The recruitment process is certified by the French quality control body
Qualicert. It guarantees that applicants are well informed throughout
the process. New employees are asked to assess the process and report
their degree of satisfaction to the department they work for. Quality
of service is reported once a year.
A company-wide training process has been set up to facilitate the
integration of new employees. It provides employees with an overview
of the company and its environment and develops management skills
through specific training modules (people management,
microeconomics, human resources management, union matters).
Two agreements were entered into with the unions in 2008:
• a framework agreement on job mobility and career development,
which sets out the actions to be undertaken to improve employees’
understanding of changes in the workplace and job profiles, along
with training and mobility plans;
• a framework agreement for management, which principally
underlines the key role of managers and focuses on their personal
contribution and performance, while creating company-wide
cooperation for career development.
➢ Information systems tailored to the company’s objectives
The company’s information systems are managed and developed
by the Information Systems Steering Committee dedicated to each
business process, which validate associated expenditure. The objectives
assigned to the systems and subsequent developments are determined
by the project managers. The systems are managed on the basis
of a three-year master plan.
The Information Systems Department conducts its work in compliance
with ISO 9001. In addition, during 2008, incident and change
management processes were developed to take into account ITIL best
practice.(8)
The information systems are protected on a logical and physical level
and are regularly audited. The architecture is based on storage area
network infrastructure, which stores critical data simultaneously
on two separate sites. Data is backed up daily.
Business continuity of critical information systems (corporate email
system, institutional website, accounting and human resources
systems, and main business applications) is guaranteed by secure
architecture located on the two production sites.
The security of unstructured information is being improved through
the use of virtual office automation servers, which were set up in 2008.
These servers are migrated to failure tolerant systems hosted in data
centres, which are managed professionally.
The IT engineering units manage all documentation relating to data
analysis, programming and processing, through document
management procedures and tools.
➢ Communication and dissemination of information
To enable all employees to fully assume their responsibilities,
the company provides information over its internal communications
system, which includes the Argos intranet. It also publishes
a fortnightly magazine, which is sent to the homes
of 45,000 employees.
Managers also have access to the “Step-Ahead Management”
application (LAM). It provides news and analyses and draws attention
to the effects of new legislation on the company’s operations (service
continuity, European regulations).
2008 was the first year of implementation of the business plan
for 2008-2012, which was prepared with extensive employee
involvement during 2007. During the year, the managers
and employees responsible for achieving each of the 22 objectives
outlined in the plan reported to the Executive Board on progress
(working groups, approach adopted, actions undertaken).
In October 2008, the Executive Board validated the work undertaken
and proposals to “develop internal communication at management
level to increase involvement in common goals”.
Two seminars were held for company executives at the end of 2008
to share information and set company-wide priorities for 2009.
The seminars enabled executives to gain an overview of progress
towards goal achievement, establish synergies and confirm ten
projects for 2009.
In the same year, the Chief Executive Officer decided to set up
a human resources function at group level, in the form of a human
resources task force and human resources network with
the subsidiaries.
(8) Information Technology Infrastructure Library (human resources and technology
user method, which aims to provide high quality IT services, adapted
to the company's activities).
11
2.2.3 Stronger governance
➢ Data protection coordinator
The declarations made to the French data protection authority (CNIL)
were audited along with the measures taken by the company to comply
with the Data Protection Act. These included the publication of a data
protection guide on the intranet and the formation of an information
systems security management group to ensure conformity
with the legal and regulatory framework. The audit concluded
that the company was generally in compliance with the Act.
The company laid down specific internal data protection rules and
appointed a data protection coordinator in January 2008. The data
protection coordinator verifies that the requirements of the Data
Protection Act are met and works closely with the information systems
that process personal data. The coordinator has undertaken to identify
and list all documents that need to be declared, but have not yet been
declared to the CNIL, for compliance purposes.
➢ On-call duties
Subsequent to the internal audit in 2006, new rules were laid down
that recast the system used to manage on-call employee duties in early
2008. The new rules define various levels of on-call duties based
on the level of risk associated with the job, the obligations of on-call
workers and the training provided to them.
➢ Delegations of authority and signatories
Following the work conducted in 2006 on delegations of authority
and signatories, rules were drawn up in June 2008 setting out
the terms and conditions governing their validity, publication
procedures and methods, conservation and archiving.
➢ Engineering
Further to the work conducted in 2007 to clarify and consolidate
the position of engineering, maintenance and corporate project
management activities within the company, a new engineering
department was set up in 2008 to drive corporate development(9).
2.3 Risk assessment and management
2.3.1 Decentralized management of operating risks
The units and departments previously mentioned (see above § 2.2.1
A tried and tested system) are responsible for operational risk
management at their respective level. The appointed Risk Manager
works alongside the departments and units to share knowledge of risk
and increase involvement in risk management company-wide.
The table in appendix 6 contains a summary of the company’s main
activities, associated risks, structures in charge of risk management
and achievements in 2008.
2.3.2 Main audit assignments
➢ Internal Audit department
Operational audits (RER, bus), company-wide audits (site manager’s
role, technical and sales unit, tramway projects, data protection
declarations), follow-up audits, subsidiary audits.
(9) NG 5265 of November 28, 08.
12
Recommended company-wide improvements relate to:
• systems, training and management;
• optimization of existing recruitment tools;
• maintenance of technical know-how;
• managers’ awareness of regulatory developments in certain areas;
• governance of Systra’s foreign subsidiaries (risk assessment, role
of commitments boards, and role of the audit and risk committees).
➢ The General Safety Control (corporate risk management)
Operation of decentralized PCCs, surveillance of art works, overseeing
of maintenance and other work in the metro, verification of
the flood-prevention plan.
2.3.3 Company-wide risk
➢ Incident management
Feedback on incidents occurring, particularly on the bus network
during the summer of 2007, has highlighted the company’s excessive
legalistic approach to dealing with accident victims. To remedy the
situation, provide a more human approach and improve relations with
transport users, the CEO set up the Victim support unit in February
2008. The purpose of the unit is three-fold:
• provide support to victims and/or their families through
the company’s mediator;
• assist RATP agents in dealing with victims;
• act as a reliable system to disseminate information to all concerned.
➢ Risk of strike action
The growing unrest due to the introduction of the French law
of August 21, 2007 on union relations and service continuity, presents
a social risk. The conflict warning system set up in 1996 to ward
against conflict, settle matters with the unions and avoid strike action
was brought into conformity with the law through the signature
of a collective agreement.
In 2008, there were a number of improvements due to the conflict
warning system:
• the number of strike notices was four times lower than the average
recorded over the five previous years;
• the conflict warning system was effective and strike action was
avoided in 90% of cases.
During the same period, the high level of collective bargaining led
to 59 agreements, 90% of which received a majority vote.
➢ Information systems security
The company applies standard ISO 27002(10) to combat
the increasingly hostile IT environment (computer abuse, outages…)
and comply with legislation on information and communication
technology.
Since 2003, the company has implemented a company-wide
information security system, which lays out the principles and rules
governing information systems security and guarantees confidentiality,
integrity and service continuity.
The core information systems are protected through physical
and environmental security, which includes provisions for computer
facilities, physical access control, fire safety, power supply,
and air-conditioning.
(10) Code of best practice for data protection management (July 2007).
The information systems security plans for critical business processes
and systems are tested annually. A formal risk assessment
and management process was launched in 2008 for “high risk”
equipment and premises.
Various methods are used to verify compliance with security policies:
technical systems audits, active feedback, exercises, simulations,
troubleshooting.
➢ Management of risk relating to the financial crisis
The system used by the treasury and finance unit has dealt well with
the financial crisis.
The Chief Executive Officer and State Equity Investment Agency has
made several requests to the unit to ensure the Company maintains
liquidity and good financial risk management.
The existing reporting process enables financial risk to be monitored
on two levels: counterparty risk and market risk. As these processes
already fulfil the reporting requirements, no major changes were
needed.
RATP has always been limited in terms of the amount of direct
investments it can make. Moreover, its direct investments in short-term
debt can only be made through counterparties with high credit ratings
(A1+/P1/F1+). Since the outset of the financial crisis, RATP has ceased
working with investment banks, and now only conducts business
with major French and European deposit banks.
RATP’s chart of accounts is tailored to its social security obligations
pursuant to Decree no. 2004-174 of February 23, 2004. The chart was
approved by the French accounting standards board (Comité de
la réglementation comptable) on January 25, 1984, in accordance
with the Government Order of April 27, 1982.
RATP is required to appoint an independent auditor pursuant to
article 30 of French law no. 84–148 of March 1, 1984 on the audit
of financial information relating to public sector trading companies
and the provisions of article 33 of Decree no. 85–295 of March 1,
1985(11).
The recent regulatory changes and improvements made in order
to comply with the new provisions are presented below. A description
of the procedures adopted for the production and control of financial
information prepared by RATP is presented in appendix 7.
3.1.2 Financial information
The timetable has been set for monthly, half-yearly and annual
reporting of financial information. RATP uses the Oracle Financials
software system.
Monthly statements are available eight working days after the end
of the month, with the same level of pre-closing analysis and detail.
The monthly statements enable the departments to carefully monitor
their business performance and budget throughout the year and allow
the finance department to perform a range of analyses and estimates.
In the midst of the financial crisis in 2008, RATP actively managed
the bank counterparty risk relating to its outstanding leasehold
operations to secure the deposits made in US dollars.
To ensure that the company meets its year end closing deadlines,
the statutory auditors audited the preliminary financial statements
at the end of October.
As RATP did not set up hedging for fuel risk in 2008, its financial
instrument portfolio was not impacted by the hike in oil prices
in the first half of 2008, nor by the sharp fall in prices in the fourth
quarter.
The financial statements are audited at various levels using highly
effective query tools, which are available over the majority
of the accounting information system and are constantly upgraded.
Currency risk relating to debt issued in foreign currencies is
systematically hedged with cross currency swaps.
RATP prepares twelve-month cash flow forecasts. The cash flow
management tools it uses are reliable and have proved to be effective
in the current financial crisis.
3. CONTROL ACTIVITIES
3.1 Internal control procedures for accounting
and financial information
3.1.1 Accounting principles applicable to RATP
Due to its legal status as a public sector trading company (EPIC),
RATP applies the same accounting principles as those generally
accepted by and legally binding for commercial companies. It is also
under the obligation to meet the requirements specific to public
service provision. Consequently, it applies the accounting policies set
out in CRC regulation no. 99–03 of April 29, 1999.
3.1.3 Further updating of internal policies and intranet
redesign
Information on internal accounting and financial policies
and procedures has been compiled and is regularly reviewed
and updated as changes occur.
The redesign of the finance department’s intranet began in June 2008
and should be completed by the end of 2009. The purpose
of the redesign is to:
• support the daily work of the management control network
at departmental and unit level by providing a structured corpus
of standardized, training documents;
• set up a management control/accounting space for the business units
as a vector of best practice for decision-makers and operational
managers.
The tool is user-friendly and presents economic performance on
several levels. The space is divided into eight sections(12). Each section
comprises an approach in terms of:
• doctrine, setting out policies, roles and responsibilities at central
and local level;
• a key note, providing messages and a scope summary;
• a practical guide, providing operational support on new or complex
issues or on identified malfunctioning;
• frequently asked questions, providing daily information on best
practice, although without a discussion forum.
(11) Implementation of law no. 84-148 of March 1, 1984 on the prevention
and settlement of company difficulties.
(12) Operation Performance management; Investment Performance management;
Payroll expenses; Clients; Suppliers; Supplies and Stock; Intangible assets;
Tax-Treasury.
13
3.1.4 Developments in the corporate accounting system
3.2.2 Downstream controls
➢ Transfer of the property tax returns office
They include:
• monthly financial reporting on the basis of the accounting information
gathered in the Magnitude application, which is presented
in the form of an operating report on the subsidiaries to RATP’s
Executive Committee. The Magnitude application is used for both
monthly reporting and consolidation purposes, which guarantees
consistent data management.
• audit work: a complete audit of operations is performed on certain
subsidiaries every year.
The transfer took place in 2007. It has improved the tax returns
procedure by ensuring that tax returns are prepared in compliance with
data derived from the accounts, particularly with regard to the placing
in service of new assets.
A procedure describing the complex process of preparing tax returns
is currently being drafted.
➢ Audit Office’s first year of operations
The audit office performs assignments on specific accounting
processes in order to verify their reliability.
One of its reports concerns the decentralized subsidiary accounts
of certain company departments and units.
The office also works closely with the Internal Audit to follow up
on audit recommendations regarding accounting operations,
and to perform audits.
➢ Control of personnel costs
HR Access software was introduced on January 1, 2008, to automate
numerous tasks and enable the human resources department
to manage payroll preparation and payment and social security
declarations.
Since January 1, 2008, the accounting entries relating
to the company’s social security service obligations have been
entrusted to a specific team within the HR department.
Consequently, the accounting department is now essentially
responsible for performing controls on the processes.
3.2 Control of subsidiaries
Subsidiaries are subject to a range of specific control procedures
aimed at managing the risks inherent in company expansion.
3.2.1 Upstream controls
They include:
• control of subsidiaries’ corporate strategy through medium-term
plans. Control is exercised by a commitments board comprising
executives representing each subsidiary, and members of RATP’s
finance department and senior management;
• significant decision-making issues such as those concerning budgets,
the preparation of financial statements, bids on major calls for
tender, major contracts, capital transactions, equity investments
and the founding of subdivisions within subsidiaries, are controlled
by the commitments board of each subsidiary. Major decisions
and those affecting major subsidiaries may also be controlled
by RATP’s supervisory bodies (State Equity Investment Agency,
Economic and Financial Control Board for Transport, Budget
department, and Transport and Maritime Board).
The subsidiaries’ commitment boards convene prior to Board
meetings, to prepare input and guidance for decision-making.
14
Upstream controls and monthly financial reporting are performed
by the unit of the Finance and Management Control department
responsible for Subsidiaries, Financial Transactions and Tax,
while audits are performed by the Internal Audit department.
3.2.3 Other controls
RATP’s Board of Directors examines the financial position
of subsidiaries twice a year:
• in March, with regard to the previous year’s results and consolidated
financial statements;
• in September, with regard to the results as at June 30,
and the consolidated financial statements for the first six months.
For the subsidiary RATP Développement, the Board of Directors issues
an opinion on the budget and medium-term plan, on acquisitions
and investments exceeding certain thresholds and on certain bids
for tender.
In addition, at the end of 2003, the Audit Committee set up a series
of indicators to report on the key risks facing subsidiaries.
3.2.4 Developments
Since they were first initiated, the control procedures relating
to subsidiaries have constantly been adapted to take into account
changes in the business environment and any incidents that may
have occurred.
RATP’s control has gradually been enhanced since 2007 through
the management control of the subsidiary RATP Développement over
its own subsidiaries and equity investments.
Appendices
Appendix 1.
Board of Directors and Committees
1. THE BOARD OF DIRECTORS
In conformity with Decree no. 84–276 of April 13, 1984, amended by
Decrees 2004-500 of June 7, 2004, and 2006-1018 of August 11, 2006,
the RATP Board of Directors comprises 27 members, which include:
• nine government representatives appointed by decree;
• nine persons appointed by decree:
– two persons selected for their expertise in transport and mobility
policy,
– three persons with a professional background in business,
– two representatives of public transport users,
– two local authority representatives from areas directly affected
by the company’s activities,
– nine employee representatives elected by company employees.
The Board nominates one of the Directors as Chairman and Chief
Executive Officer. The appointment is made by decree by the
Government Ministers after the Cabinet has heard the report from
the Transport Minister.
The Government Commissioner and Head of the Economic and
Financial Control Board for Transport are entitled to attend all Board
meetings, along with the secretary or representative of the works
committee.
The Secretary of the Board is nominated by the President,
and appointed by the Board of Directors. The secretary is responsible
for preparing the reports and minutes of all the meetings of the Board
and of the standing and ad hoc committees.
An Audit Committee, comprising six directors (two elected
by employees, one leading business person and three government
representatives) is responsible for advising the Board on the individual
and consolidated financial statements and on the reliability
of the information systems used to prepare them. It also advises
on financial management, management and accounting principles,
cost accounting, accounting information systems and management
control, the quality of the internal audit program and methods,
and risk management policies.
Apart from the management decisions, which are voted on
by the Board, the President may propose issues to the Board for
discussion, particularly on subjects where medium and long-term
policy-making is required.
3. SUBSIDIARIES AND EQUITY INVESTMENTS
The President appoints RATP’s representative at the shareholders’
general meetings and Board meetings of companies in which RATP
holds equity interests. The RATP’s Board of Directors hears a report
on each of the companies in which it holds a significant stake at least
once a year, and gives its opinion on RATP Développement’s
medium-term plan.
4. ANNUAL REPORT AND SUSTAINABLE
DEVELOPMENT REPORT
RATP’s annual report and sustainable development report are
submitted to the Board for approval.
The Board convenes at least six times a year, and may also
hold extraordinary meetings to renew the mandate of the Board
or President.
2. COMMITTEES
Two standing committees, each comprising an equal number
of Directors, are responsible for preparing the Board’s work. The first
deals with the company’s technical and technological development,
particularly in terms of network development and maintenance,
improvement of service quality, research and contracts. The economic
and strategic committee deals with RATP’s operating budget
and investment plans, financial statements, public and service provision
agreements and contracts. It also addresses business and social issues
such as training, housing policy, developments outside the RATP/STIF
agreement, subsidiaries’ activities and the annual report and sustainable
development report. It also enforces implementation of the RATP/STIF
agreement and RATP’s Business Plan.
15
Appendix 2.
Matters examined by the Board
in 2008
I. DISCUSSIONS AND MAJOR ISSUES
– Progress report on the implementation of the President’s
17 commitments.
Development issues
– RATP Développement’s medium-term plan (MTP) for 2009-2013.
– Information on subsidiaries’ outlook in 2008.
– Bid for tender to operate the Stockholm Metro.
– Guarantees given by RATP in connection with the contract to design,
build, operate and maintain a public rail transport system
in Trinidad and Tobago.
– RATP surety on RATP Développement’s guarantee in connection
with the bid for RE 9 (Germany).
– Métrophérique project.
– Information on the decongestion of line 13.
– Investments planned for RER line A.
– Overview of purchasing policy.
– Progress report on cleaning service contracts.
II. ECONOMIC AND STRATEGIC ISSUES
Economic, business and financial issues
– RATP-STIF agreement for 2008-2011.
III. CONTRACTUAL PLAN BETWEEN
THE STATE/REGIONS AND OTHER OPERATIONS
Pre-contract agreements
– Pre-contract agreement
Saint-Denis • Epinay–Villetaneuse tramway.
– Amendment to pre-contract agreement
Villejuif–Athis-Mons tramway.
– Additional pre-contract agreement
Extension of tramway T2 from Issy–Val-de-Seine to Porte-de-Versailles.
additional station
– Presentation of the RATP group’s individual and consolidated
financial statements as at December 31, 2007.
– Presentation of the RATP group’s individual and consolidated
financial statements as at June 31, 2008.
– Operating budget for 2009.
– Investment program for 2009 - borrowing authorizations.
– Corporate training program for 2008.
– RATP group management report as at December 31, 2007.
IV. MAJOR CONTRACTS
– Optimization of pre-defined media strategies, construction
of media plans and purchase of advertising space on behalf of RATP.
– Provision of contactless smart travel cards and pre-personalisation
and personalisation services.
– RATP group management report as at June 30, 2008.
– Provision of bus cleaning and refuelling services, and cleaning
of RATP bus centres.
– Report on the STIF agreement and Business Plan.
– Surveillance of bus centres and workshops.
– Draft annual report and sustainable development report for 2007.
– Heating, ventilation and air conditioning (HVAC) maintenance.
– RATP housing policy for 2009.
– Selection, provision, installation and maintenance of air
conditioning and tunnel smoke evacuation equipment.
– Central purchasing of items required infrequently or in small
quantities, particularly industrial supplies and category C general
and administrative items not covered by other RATP contracts.
– Office supplies and computer-related consumables.
– Various industrial supplies (other than electric).
– Study, prototype and manufacture of Tetra embedded systems
for the bus, tramway, metro and RER.
16
Appendix 3.
Board meetings and work in 2008
MEETINGS
NUMBER
ACTIVITIES
NUMBER
Board of Directors
– February 8
– March 28
– May 30
7
Decisions
54
– June 27
– September 26
– October 31
– November 28
Committee on Corporate Development,
Technical Issues and Technology
Committee on Economic and Strategic Issues
Including: – contracts of less than €16M;
6
1
– amendment;
1
– additional agreement.
1
8
Audit Committee
4
Ad Hoc Committee
1
TOTAL
10
– pre-contract agreement;
President’s commitments discussions
7
26
17
Appendix 4.
Company-wide functions relating to internal control system
Functions
Internal Audit
department
(IA)
General
Safety Control
(GSC)
Delegation
for Innovation
and
Sustainable
Development
(DGIDD)
Role
Scope of action
• Conducts work and studies on:
– Audits are conducted on administrative, technical,
and financial matters and on all of RATP group’s operating,
information and management systems.
– business strategy and policies;
– input for decision-making;
– sensitive economic subjects.
• Performs assignments on compliance, effectiveness,
management and performance.
The Fire Safety unit advises on all aspects of fire safety
and evacuation procedures. It has the following objectives:
– constantly improve the company’s fire safety levels;
– coordinate the actions of the fire and emergency services
with the company’s fire and security services;
– monitor operational premises and buildings under
construction;
– train employees in fire safety;
– enforce regulatory compliance with the security procedures
and systems in place in railway and metro stations
and in buildings under construction or renovation, through
the work of the Inspectorate General for Fire Safety.
– The Fire Safety unit is active at all levels of the company,
through the Technical Committee for Fire Safety
and its network of local contacts.
The role of the Corporate Risk Management unit is to:
– improve risk management by giving advice on all aspects
of risk;
– conduct investigations, audits and studies;
– manage the security of IT systems with all departments.
The two main activities of the unit are:
The Delegation is in charge of proposing company-wide
projects on innovation and sustainability and implementing
them, once they have been approved by management by:
The Delegation for Innovation and Sustainable Development
works primarily with:
– promoting quality and sustainable development within
the company;
– conducting or organizing quality audit engagements;
– providing methodological and technical assistance;
– guiding departments and units through implementation.
STIF Relations
Delegation
(DGS)
– Work may focus on a department or subsidiary, on policies
and processes, or on project implementation and progress.
– The unit performs smoke and fire tests to measure
and analyse air movement in underground areas.
The results of the tests are used to improve the security
of the underground areas, and to set and upgrade
smoke-clearing systems in tunnels and stations.
– The unit has an Inspectorate General for Fire and Safety
that deals with all the public service providers (metro stations
and train stations) for RATP’s transport service business.
– information systems security;
– audit of systems risk management.
– Senior Management and the departments to provide
guidance in policy-making and ensure that the approach
adopted is consistent with company strategy;
– three company-wide networks (quality, environment
and sustainable development) comprising representatives
from each department to prompt ground initiatives, provide
units with methodological assistance, and encourage
the exchange of information on best practice.
The DGS is responsible for:
The DGS operates at all levels within the company:
– negotiating and managing implementation of the company’s
agreement with STIF;
– with department managers, general delegates
and management controllers;
– co-ordinating company relations with STIF at all levels.
– with the operating networks and functional departments
(communications, finance, sales and quality).
The quarterly review of the agreement is conducted under
the responsibility of the Chief Executive Officer.
Risk
Management
The Risk Manager is responsible for:
The role of the Risk Manager is to:
– overall risk management and strategy, through the
identification, assessment, control and monitoring of risk;
– implement, organize and run a global risk management
system in the group;
– raising awareness of risk throughout the company
by involving employees at all levels in risk management
and control;
– set up an annual review of risks;
– establishing a risk map to serve as a tool for decision-making
and raising awareness;
– constant monitoring, particularly of the risks and
opportunities specific to the company’s activity.
18
– disseminate and develop company risk management
in collaboration with the company’s departments.
Appendix 5.
Organization of the internal control system
COMPANY
Risk Manager
Inspectorate General
Internal Audit (IGIA)
General Safety
Control (CGS)
Corporate Risk
Management
Delegation
for Innovation
and Sustainable
Development (DGIDD)
STIF Relations
Delegation
Fire Safety Unit
Specialized control
entities
DEPARTEMENT
Decentralized audits
(BUS, CGF, MES, M2E)
Transport specific
controls
Inspections of the operating
departments (MTS, RER)
Inspections of the maintenance
departments (EST, MRF, M2E)
Support Group 1
Risk Management
Systems Risk
Management (EST)
Quality Network
Quality audit engagements
to control ISO and
NF certified departments
Risk Management
Engagement (M2E)
Risk Management
Committee (MOT, ESP)
Control Group 1
Verify service
quality
Control Group 2
Implement production
processes in conformity
with current regulations
UNIT
Manager
Support Group 2
Production Process
19
Appendix 6.
Decentralized management of operating risks
Area of
activities
(Department)
Business structure and role
Metro, Transport
Operations
and Services (MTS)
The transport inspection department perform
downstream controls on the rail network including
regulations, by means of:
– regular inspections on operating units;
– progress audits on the implementation of the action
plans established by these units;
– specific inspections on given themes.
Metro, Stations
Management
and Services (MES)
Surface Transport
(BUS)
As part of the downstream control, the audit station
engagement involves widespread audits or specific
audits on one or several lines.
The internal audit engagement conducts investigations
into all of the department’s activities and follows
up on decisions taken after each audit.
Risks
Railway incidents
Major actions in 2008
– Audit of three operational units.
– Progress audit on three operational
units.
– Technical Inspections: regulations
(railway and fire safety), drivers at risk,
rail lubrication.
– Specific Inspection: security.
Malfunction
of station equipment
– Audits: conformity with the safety
charter, use of supervisors, cash till
management.
– Audit reviews: verifications and station
equipment testing; catering costs.
Deterioration
of passenger services
– Interdepartmental study on refusal
of transport tickets/passes by control
machines.
Traffic accidents
Deterioration
of passenger services
– Enquiry on standard regulations.
– Audit on calculation of production
in kilometres.
– Audit review in 2007 on bus-traffic
accident procedures involving physical
injuries.
Railway security
Transport
Technology (EST)
In connection with these audit and inspection
assignments, the technical and administrative control
unit contributes to service quality, verifies that policies
are applied and standards are met reference,
develops risk management and provides support
to the department.
Malfunction
of equipment
(employee risk
prevention)
– Audit on the use of safety procedures
by the operating units.
Equipment and
Transport Spaces
Maintenance (M2E)
The internal audit engagement involves:
– centre inspections in order to test knowledge and
implementation of the standards for all equipment.
– equipment inspections to verify their status
and level of maintenance;
– maintenance inspections to ensure compliance
with safety regulations;
– follow-up inspections to ensure the implementation
and the efficiency of action plans.
Noncompliance
with security
standards
– Audit on the training necessary for
operators to carry out these procedures
(train traffic, work on platforms).
Malfunctions
attributed to railway
rolling stock (metro,
RER and tramway)
– Inspections of train breakdown centres.
– Inspections of the train maintenance
workshops:
preventive maintenance of rolling
stock (doors, brakes, wheels);
inspection and verification
of equipment.
Malfunctions
attributed to bus
rolling stock
throughout
the network
– Audits of bus centre maintenance
procedures.
– Audits of bus et wheel products
(all bus centres).
Rail Rolling Sock
(MRF)
Bus Rolling Stock
(MRB)
20
The inspection unit ensures the daily monitoring
of accidents, examines the procedure for enquiries
and inspections and verifies that action plans are
followed through.
The inspection unit systematically analyses operating
incidents related to rolling stock, monitors
and analyses department indicators, and monitors
the implementation of action plans following audits
and operations feedback.
Malfunction
of transport
information systems
– Common inspection EST/M2E
on the maintenance of electricity
stations used to supply the RER.
– Systems risk management audits.
Appendix 7.
RATP Accounting policies
1. PREPARATION OF THE FINANCIAL
STATEMENTS
RATP prepares audited annual individual and consolidated financial
statements and half-yearly individual and consolidated financial
statements.
The prospectuses prepared by RATP when issuing debt are approved
by the Statutory Auditors and by the French financial markets
regulator (AMF).
In general, the accounting information produced by RATP fulfils
the requirements of its departments and units in terms of forecasting
and general management.
2. CONTROL PROCEDURES
ON THE PREPARATION OF THE INDIVIDUAL
FINANCIAL STATEMENTS
2.1. Accounting policies
RATP ensures that there is a clear separation between the roles
of its accountants (employees who generally work for the management
control and finance department), treasurers and the departments
authorising expenditure.
The accountants have an array of regulatory, management
and accounting texts relating to their function, which are prepared
and updated in the document system of the company’s accounting
unit of the management control and finance department.
RATP’s accounting system is organized to ensure that controls take
place throughout the production of the financial statements.
2.2. Midstream controls
• Department units and support groups are involved in RATP’s
accounting operations insofar as they authorise company expenditure
and revenue and define their cost accounting systems in line with
the company’s common accounting rules. This may involve entering
data such as external expenses into the company’s accounting
information systems.
• The local accounting offices of the company’s accounting unit
are responsible for controlling the entries made in the management
system. They may make the adjustments necessary and record
the operations not delegated to the units.
• All the data is reported to central departments where summary
documents are prepared and centralized work is performed: booking
of payables and receivables, preparation of tax returns and social
security statements, control of accounting quality, preparation
of financial statements including the balance sheet, income
statement and notes.
2.3. Monthly reporting
A partial closing of accounts is performed every month, at which
time the accounting offices ensure that the changes in expenses
and income have been correctly recorded, and interim balances
are recorded. A central accounting office performs a cross-company
analysis of the results.
2.4. Balance sheet revision, adjustments
and justificationn
• Revision of decentralized bank accounts: these are managed
by the company’s units and are audited at least once a year to verify
compliance with the governing accounting and administrative
procedures.
• Accounting authorizations: some of the company’s businesses allow
the delegation of accounting tasks (data entries can be made without
involving accountants from the company’s accounting unit).
Work is underway to formalize these authorizations (scope,
responsibilities and review).
• Balance sheet entries are the responsibility of one or several
offices within the accounting unit. They are reviewed on the basis
of documentary evidence at least once every six months.
3. THE PRODUCTION OF THE CONSOLIDATED
FINANCIAL STATEMENTS OF THE RATP GROUP
The consolidated financial statements are prepared every six months
according to a timetable set at the closing of each period
by the finance department.
The consolidation of the financial statements is performed using
consolidation software comprising an application that implements
and regularly updates the accounting policies and rules. The majority
of the entities’ consolidation packages are compiled by the subsidiaries
accountants. Many of the audits are carried out using the consolidation
system configured to include numerous and occasionally restrictive
controls.
The consolidated financial statements are produced by a section
of the company’s accounting unit for the whole of the Group.
The role of the section is to ensure that the source information
provided by the subsidiaries is consistent, that the consolidated
financial statements are prepared in accordance with current
standards and regulations and that the information gives a fair
presentation of the Group’s business and financial position.
The section is responsible for recording the impact of International
Financial Reporting Standards on the majority of the subsidiaries
and the consolidation adjustments (standardization of the financial
statements, elimination of securities and intra-group transactions).
Audits on changes in shareholders' equity are performed on
the subsidiaries. The financial statements are then audited to verify
their accuracy.
The information produced by the accounting consolidation is used
by the subsidiary, financial engineering and tax unit
of the management and finance control department. As a result,
during the closing of the financial statements, the information from
the subsidiaries is simultaneously analysed and cross-checked against
information from previous months and budgets and forecasts.
21
Statutory Auditors’ report
on the report of the chairman of the Board of Directors
on internal control procedures implemented within the Company
Year ended December 31, 2008
To the Shareholders,
As Statutory Auditors of RATP and in compliance with the assignment
entrusted to us, we hereby report to you on the report of the chairman
of the Board of Directors on internal control procedures for the year
ended December 31, 2008.
In his report, the President reports on internal control procedures
implemented within the Company.
We hereby inform you of our observations on the information set out
in the President’s report with regard to the internal control procedures
relating to the preparation of financial and accounting information,
pursuant to the provisions of article L. 225-37 of the French
Commercial Code, it being specified that we are not responsible
for verifying the fairness of these disclosures.
We conducted our work in accordance with the professional standards
applicable in France. Those standards require that we perform our
work to assess the whether the information presented in the President’s
report gives a true and fair image of the internal control procedures
relating to the preparation of financial and accounting information.
These procedures consisted mainly in:
• obtaining an understanding of the internal control procedures relating
to the preparation and processing of accounting and financial
information on which the information presented in the President’s
report is based, and existing documentation;
• obtaining an understanding of the work involved in the preparation
of this information and existing documentation;
• determining if any significant weaknesses in the internal control
procedures relating to the preparation and processing of accounting
and financial information that we may have observed in the course
of our engagement have been properly disclosed in the President’s
report.
On the basis of our work, we have no matters to report on
the disclosures concerning the Company’s internal control procedures
relating to the preparation and processing of accounting and financial
information contained in the report of the chairman of the Board
of Directors.
Paris-la Défense and Neuilly-sur-Seine, March 16, 2009
The Statutory Auditors
22
Salustro Reydel
Member of KPMG International
PricewaterhouseCoopers Audit
Philippe Arnaud
Paul Onillon
Consolidated financial statements
Statutory Auditors’ report page
24 /
25 /
Consolidated balance sheet at December 31, 2008 pages 26-27 /
Consolidated statement of cash flows at December 31, 2008 page 28 /
Notes to the consolidated financial statements page 29 /
Consolidated statements of income at December 31, 2008 page
23
Statutory auditors’ report
on the consolidated financial statements
Year ended december 31, 2008
Provisions for employee benefits
In compliance with the assignment entrusted to us by the Minister
for the Economy, Finance and the Budget, we hereby report to you,
for the year ended December 31, 2008, on:
Note 25 to the consolidated financial statements describes the
provisions for employee benefits recorded in the balance sheet, as well
as the method used to evaluate those provisions.
– the audit of the accompanying financial statements of RATP,
We examined the way in which the employee benefits were identified,
measured and accounted for. We reviewed the assumptions and
calculations made in order to validate the provisions reported under
liabilities on the balance sheet at the beginning of the year and
at year-end.
– the justification of our assessments;
– the specific verifications required by law.
The Board of Directors is responsible for the preparation
of the consolidated financial statements. Our role is to express
an opinion on the financial statements, based on our audit.
1. Opinion on the consolidated financial statements
We conducted our audit in accordance with the auditing standards
generally accepted in France. Those standards require that we plan
and perform our work to obtain reasonable assurance that the
consolidated financial statements are free from material misstatement.
An audit involves verifying, on a test basis or by another sampling
method, the evidence supporting the amounts and disclosures
in the consolidated financial statements. An audit also includes
assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall presentation
of the financial statements. We believe that our audit has provided
us with sufficient relevant information on which to base our opinion.
In our opinion, the consolidated financial statements give a true and
fair view of the financial position, assets and liabilities and the results
of operations of all the consolidated entities in accordance with
the International Financial Reporting Standards adopted by
the European Union.
Property, plant and equipment
Note 3.5 describes the accounting treatment of property, plant
and equipment which are fully owned or made available for use by
RATP by the State or STIF. In accordance with our assessment of
the accounting policies implemented by your Company, we examined
the methods used to capitalize property, plant and equipment and
we ensured that the information provided in Note 3.5 was appropriate.
Our assessments were an integral part of our audit of the consolidated
financial statements as a whole, and therefore contributed
to the formation of the opinion expressed in the first part of this report.
3. Specific verifications
We have also carried out the specific verifications required by law
of the information provided in the group management report.
We have no matters to report regarding its fair presentation
and conformity with the consolidated financial statements.
2. Basis of our assessments
Pursuant to the provisions of article L. 823-9 of the French Commercial
Code relating to the justification of our assessments, we draw your
attention to the following matters:
Paris-La défense and Neuilly-sur-Seine, March 16, 2009
24
Salustro Reydel
Philippe Arnaud
Paul Onillon
Consolidated financial statements 2008
Consolidated statements of income
At december 31, 2008
(in thousands of euros)
Revenue (1)
NOTES
Note 5
Other income from ordinary activities
12/31/2008
4,317,215
12/31/2007
4,104,588
72,366
45,740
4,389,581
4,150,328
Cost of sales
–237,775
– 198,207
Other purchases and external charges
– 619,894
– 575,232
Taxes, duties and similar payments
– 225,329
– 216,360
– 2,371,572
– 2,269,458
– 513,900
– 509,754
Income from ordinary activities
Payroll and payroll-related costs
Note 7
Depreciation and amortization
Provisions
Other income and operating expenses
Note 8
Ordinary operating income
Other income and operating expenses
Note 9
Operating income
– 47,159
– 24,160
– 24,032
– 47,534
349,920
309,623
3,017
– 3,012
352,937
306,611
Financial income
Note 10
220,796
110,467
Financial expense
Note 10
– 427,222
– 302,578
146,511
114,500
Pre-tax income
Income from equity-accounted associates
Note 16
2,444
5,671
Income tax
Note 11
– 5,927
– 6,092
Consolidated net income
143,028
114,079
Net income, group share
141,347
112,143
1,681
1,936
Net income, minority interests
(1) To facilitate comparison, following the implementation of the new contractual agreement with the Île-de-France regional public transport authority (STIF), entered into
in 2008, the flat-rate contribution received in 2007 was included in revenue at December 31, 2007 (see § Significant events of the period).
25
Consolidated balance sheet
ASSETS
NOTES
12/31/2008
12/31/2007
Goodwill
Note 12
50,978
45,739
Intangible assets
Note 13
241,713
201,345
Note 14
7,444,456
7,180,692
267
799
Investments in equity-accounted associates
Note 16
144,287
155,299
Available-for-sale financial assets
Note 18
13,402
5,443
Investment property
Derivative financial instruments
Note 30
62,144
11,436
Other financial assets
Note 19
84,599
86,016
Deferred tax assets
Note 11
NON-CURRENT ASSETS
3,009
2,348
8,044,855
7,689,117
Inventories
Note 20
145,397
132,255
Trade and other receivables
Note 21
530,037
531,749
759
515
Note 30
10,015
8,380
Other financial assets
Note 19
8,309
8,727
Cash and cash equivalents
Note 22
294,451
381,552
988,968
1,063,178
9,033,825
8,752,295
Tax receivables
CURRENT ASSETS
TOTAL ASSETS
26
12/31/2008
12/31/2007
Capital stock
283,367
283,367
Reserve for assets made available to RATP
250,701
250,701
1,396,476
1,368,155
EQUITY AND LIABILITIES
Retained earnings
NOTES
Note 23
Net result
141,347
112,143
2,071,891
2,014,366
Minority interests
16,979
15,503
TOTAL EQUITY
2,088,870
2,029,869
EQUITY, GROUP SHARE
Note 24
Provisions for employee benefits
Note 25
495,387
486,345
Other provisions
Note 26
134,393
101,787
Note 27
3,852,250
3,316,820
Note 30
35,894
27,462
Deferred tax liabilities
Note 11
7,067
6,748
71,209
89,938
4,596,200
4,029,100
Other trade creditors
NON-CURRENT LIABILITIES
Other provisions
Note 26
72,004
55,869
Short term loans and borrowings
Note 27
1,115,349
1,448,994
Note 30
15,448
11,532
Trade payables and related accounts
Note 28
1,144,730
1,175,133
1,224
1,798
CURRENT LIABILITIES
2,348,755
2,693,326
TOTAL EQUITY AND LIABILITIES
9,033,825
8,752,295
Income tax liabilities
27
Consolidated statement of cash flows
CONSOLIDATED NET INCOME
Net income from equity-accounted associates
12/31/2008
12/31/2007
143,028
114,079
– 2,444
– 5,672
560,684
525,419
Fair value gains and losses
– 82,641
16,936
– 2,283
5,807
Gains and losses from asset disposals and dilution effects
Other adjustments
Discounting
Cash flow from operations after net financial expense and tax
Tax expense (income)
– 78
– 367
79,321
– 23,233
695,587
632,969
5,928
6,097
Change in WCR
– 117,619
56,895
Income tax paid
– 7,117
– 6,096
576,780
689,865
Net cash provided by operating acitvities
Acquisition of long-term investments
Purchase of property, plant and equipment
409
– 38,396
– 1,028,690
– 843,836
Capital increases of associates
Change in WCR
– 62,733
73,986
– 5,432
Investment grants (received)
196,732
167,880
Investment grants (receivable)
– 19,063
– 2,794
2,086
4,940
Proceeds from sale of property, plant and equipment and intangible assets
Proceeds from financial assets
–
150
Dividends received
9
3,607
640
2,105
– 773,891
– 774,509
Other net cash from investing activities
Net cash used in investing acitvities
Capital increase
–
–
Loan issuance
936,651
355,119
Issuance of commercial paper
329,936
400,318
Repayment of borrowings
– 814,079
– 211,358
Repayment of commercial paper
– 400,318
– 419,060
12,782
834
3,902
–
Dividends paid to minority shareholders
– 1,269
– 709
Other cash flow from financing activities
200
403
67,805
125,547
115
– 98
Change in accrued interest
Dividends paid to shareholders of the group
Cash flow from financing activities
Effect of changes in the exchange rate
Effect of changes in accounting principles
Net increase/decrease in cash and cash equivalents
– 41
– 129,233
40,805
Cash and cash equivalents at beginning of year
334,799
293,994
Cash and cash equivalents at year-end
205,566
334,799
– 129,233
– 40,805
Net decrease in cash and cash equivalents
28
Consolidated statements of income and expenses
12/31/2008
12/31/2007
143,028
114,079
Actuarial gains and losses recognized in equity
– 24,068
35,149
Pre-tax fair value adjustments
– cash flow hedges
– 53,533
25,434
– 5,117
– 1,752
– 82,719
58,831
58,628
170,912
141,347
112,143
1,681
1,936
Net income
Currency translation adjustments
TOTAL FINANCIAL INCOME AND EXPENSE DIRECTLY RECOGNIZED IN EQUITY
TOTAL FINANCIAL INCOME AND EXPENSE RECOGNIZED FOR THE YEAR
of which
Group share
Minority interests
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
RATP Group (“the Group”) is one of the major public transport
providers in France, operating in towns and suburbs and particularly
in and around Paris.
The parent company, Régie Autonome des Transports Parisien (RATP),
is registered with the companies register (RCS) in Paris. Its head office
is located at 54, quai de la Rapée, 75012 Paris.
RATP is a State-owned Industrial and Commercial Company
(Établissement Public Industriel et Commercial – EPIC). It is a legal
person governed by public law, the purpose of which is to manage
public transport service provision in the Île-de-France area. RATP has
been mandated by the Île-de-France transport authority, (Syndicat des
transports d’Île-de-France – STIF), to operate the Paris metro system
and other urban transport systems in Paris and its suburbs, including:
an extensive bus system, tramway lines and part of the regional
express service (RER) on lines A and B.
In accordance with the Government Decree of November 14, 1949 and
the Order of January 7, 1959, as for other transport providers in the Paris
region, RATP has been granted perpetual rights to operate its services.
Under French law no. 2000-1208 on solidarity and urban renewal (SRU),
RATP is authorized to develop and operate public transport networks
via its subsidiaries throughout France and abroad.
RATP is a State-owned company and as such the Group’s consolidated
financial statements are included in the combined financial statements
of the State shareholder.
The Group’s financial statements at December 31, 2008 were approved
by the Board of Directors on March 13, 2009.
and the granting of compensation to public service operators
for the costs incurred.
The Regulation limits the duration of public service contracts
to ten years for coach and bus services and fifteen years for passenger
transport services by rail or other track-based modes (extended by up
to 50% if the public service operator makes exceptional investments).
However, the Regulation also includes specific provisions for contracts
entered into before the Regulation’s effective date. Due to the specific
regulatory framework governing transport provision in the Île-de-France
region, a regulatory text will be required to implement these provisions.
New agreement with the Île-de-France regional public transport
authority (STIF)
On February 21, 2008, RATP and STIF entered into a new agreement,
setting forth the conditions governing the provision by RATP of public
passenger transport services in the Île-de-France region for the period
from 2008 to 2011. It is the third agreement entered into since
the relations between STIF and RATP were first set out contractually
in 2000.
The agreement changed the previous arrangements relating to RATP
funding. RATP now receives funding in the form of:
• individual payments from STIF by type of expense, which are either
operational and related to public service obligations, or investment
and infrastructure expenses;
• amounts to cover expenses, which are clearly separate from those
relating to profit-sharing.
1. SIGNIFICANT EVENTS AND TRANSACTIONS
The profit-sharing system, which divides risks and gains between RATP
and STIF, is based on direct revenues generated, benchmarked against
contractual performance targets. The system also includes quality of
service indicators, with rewards and penalties earned or incurred based
on quality of service performance.
European Regulation on public service obligations
New bond issues
The European Regulation on public passenger transport services by rail
and by road was adopted on October 23, 2007 and will enter into force
on December 3, 2009, with a transitional period of ten years. The
purpose of the Regulation is to define how competent authorities may
act in the field of public passenger transport, by laying down the
conditions governing the contracting of public services to operators
RATP issued bonds worth €870 million during 2008:
• €550 million in May (maturing in 2018) with a 4.5% coupon;
• CHF200 million in July (maturing in 2016) with a 3.375% coupon;
• CHF150 million in October (maturing in 2017) with a 3.25% coupon;
• €100 million in November (increase in the 2018 bond issue with
a 4.5% coupon).
29
Leasehold agreements
In 2008, three leasehold agreements were terminated prior to their
expiry date. The transaction generated a gain of €1.2 million
corresponding to the net present value of the outstanding lease
payments.
Tax inspection
A tax inspection is currently under way for the period from 2004
to 2006. RATP recognized a provision in its 2008 financial statements
for tax, estimated on the basis of correspondence with the tax
authorities to date.
2. ACCOUNTING STANDARDS
2.1 Accounting policies
Pursuant to the European Regulation 1606/2002 of July 19, 2002,
the consolidated financial statements of the Group at and for the year
ended December 31, 2008 have been prepared in accordance with
the International Financial Reporting Standards (IFRS) issued by
the International Accounting Standards Board (IASB) and adopted
by the European Union.
Information on these standards is available on:
http://ec.europa.eu/internal_market/accounting/ias_fr.htm#adoptedcommission.
2.2 Accounting standards
2.2.1 Standards/amendments and interpretations which entered
into force in 2008, but do not apply to the Group
• Amendment IAS 39/IFRS 7 on Reclassification of financial assets –
Possibility of reclassifying certain financial assets in another category
under certain restrictive conditions.
The following interpretations, issued by the IASB and mandatory
for 2008 financial statements, had either not been adopted in Europe
as at December 31, 2008 or were not mandatory as of January 1, 2009.
Consequently, their implementation is deferred, resulting in a temporary
difference between the standards applied and those issued by the IASB:
• IFRIC 11, amendment to IFRS 2 on Group and Treasury Share
Transactions and Vesting Conditions. This text has been adopted
by the European Union, with implementation deferred until
January 1, 2009;
• IFRIC 12 on Service Concession Arrangements (effective as
of January 1, 2008). This text specifies how the financial assets
and intangible components of service concession arrangements
are accounted for under IFRS. The text has not yet been adopted
by the European Commission;
• IFRIC 14, IAS 19 on The Limit on a Defined Benefit Asset, Minimum
Funding Requirements and their Interaction. This text was adopted
by the European Union with implementation deferred until
January 1, 2009.
2.2.2 Standards/amendments and interpretations not yet
effective and not implemented early by RATP
• amended version of IAS 23 on Borrowing Costs (effective as of
January 1, 2009). This standard eliminates an accounting choice
and obliges companies to capitalize costs that are directly attributable
to the acquisition, construction or production of qualifying assets;
30
• IFRS 8 on Operating Segments (effective as of January 1, 2009),
under which segment reporting is aligned with data used by
management (particularly internal reports). This standard may
impact the structure of segment reporting;
• Improvements to IFRS (combined amendments to IFRS issued
by the IASB on May 22, 2008);
• amended version of IAS 27 on Consolidated and Separate Financial
Statements (effective for changes in ownership interests on or after
January 1, 2010). This standard has not yet been approved by
the European Commission (expected in second quarter of 2009).
As the standard is applied prospectively, no impact is expected
on the consolidated financial statements until the effective date;
• amended version of IFRS 3 on Business Combinations (effective
for acquisitions of controlling interests on or after January 1, 2010).
This standard provides clarification and institutes changes regarding
the accounting treatment of the acquisition of controlling interests
in subsidiaries. It requires the implementation of the single full
goodwill method, which was one of two methods possible under
the previous IFRS 3. It has not yet been approved by the European
Commission (expected in the second quarter of 2009).
As the standard is applied prospectively, no impact is expected
on the consolidated financial statements until the effective date;
• amended version of IAS 1 on Presentation of Financial Statements
as of January 1, 2009. The objective of the amendment is to improve
the analysis and comparability of the information disclosed in the
financial statements. Phase A requires the presentation of a new
financial statement, (the statement of comprehensive income), which
replaces the current income statement and combines all profit or loss
and all other non-owner changes in equity. The Company may choose
to present comprehensive income: (i) either in one statement of
comprehensive income, (ii) or in two statements: a separate income
statement and a statement of comprehensive income. The statement
of changes in equity only presents owner changes in equity.
The impact of these standards is currently being evaluated.
2.2.3 Standards/amendments and interpretations
that do not apply to RATP
• amendments to IFRS 1 and IAS 27: “Cost of investment in a subsidiary,
a jointly controlled or affiliated entity”. Application obligatory from
January 1, 2009;
• amendment to IFRS 2: “Conditions relating to the acquisition
of rights and cancellations”. Application obligatory from January 1,
2009;
• IFRIC 13 on Customer Loyalty Programmes is effective for periods
beginning on or after July 1, 2008. This interpretation recommends
deferring part of the revenue received on the sale of goods or services,
by estimating the value of customer loyalty awards and allocating
the corresponding amount to a liability account;
• IFRIC 15 on Agreements for the Construction of Real Estate
is effective for periods beginning on or after January 1, 2009.
This interpretation provides guidance on the standard applicable
(IAS 11 or IAS 18) for specific contracts. It has not yet been adopted
by the European Union (expected in the second quarter of 2009);
• IFRIC 16 on Hedges of a Net Investment in a Foreign Operation is
effective from 2009. This interpretation specifies that hedges of a net
investment for foreign exchange differences in the functional currency
(not in the presentation currency) and hedging instruments may be
held by any group entity. This interpretation has not yet been adopted
by the European Union (expected in the second quarter of 2009).
2.3 Use of estimates and assumptions
The preparation of consolidated financial statements in compliance
with IFRS requires Group management to make estimates and
assumptions, as many of the items included in the financial statements
cannot be measured accurately. Management revises the estimates
if there is a change in the circumstances upon which they were based,
or when new facts arise or it obtains a more extensive understanding
of the situation. Consequently, the estimates made as at December 31,
2008 may change significantly.
The estimates and assumptions notably concern:
• asset impairment, particularly of property, plant and equipment
(note 3.5), inventories (note 3.11) and goodwill (note 3.3);
• provisions for contingencies, primarily those for decommissioning
(note 26), and items relating to employee benefits (note 25);
• the measurement to fair value of financial instruments;
• the evaluation of counterparty risk on deposits in relation
to leasehold agreements (note 15);
• recognition of deferred tax assets (note 11).
The main accounting methods used to prepare the consolidated
financial statements are described below. Unless otherwise indicated,
these methods were consistently applied to the reporting periods
presented.
The consolidated financial statements have been prepared in
accordance with the going concern principle and with the principle
on the separation of accounting periods. They have also been prepared
on the historical cost basis, with the exception of available-for-sale
assets which are measured at fair value and financial assets and
liabilities measured at fair value through profit and loss (including
derivative instruments).
3. ACCOUNTING POLICIES
Adjustments are made to the financial statements of consolidated
subsidiaries and equity-accounted associates to bring them into
compliance with the accounting policies applied by the Group.
Low-cost housing company HLM Logis Transports
Assessing the extent of control over low-cost housing (HLM) companies
is extremely complicated due to the nature of these companies
and the regulatory constraints imposed upon them. Consequently,
a more pragmatic than theoretical analysis is used to determine
control, and the specific way in which the companies operate is also
taken into account.
Consequently, despite the fact that RATP holds an 88% stake in HLM
Logis Transports, the company was not consolidated for the following
reasons:
• low-cost housing regulations impose financial constraints, such
as restrictions on distributable profit and liquidating dividend rights,
which limit the power to manage the financial policy of the subsidiary
and to gain the associated economic benefits;
• the debt of low-cost housing companies, transaction by transaction,
is almost always guaranteed by the local government authorities.
Consequently, RATP does not bear the risk of not being repaid
the loans made to HLM Logis Transports;
• although RATP exercises influence over certain aspects of HLM Logis
Transports’ management, its influence cannot be qualified as
control. For instance, the allocation of housing to RATP employees
is carried out by an allocation board in the same way as for external
applicants.
Therefore, HLM Logis Transports does not meet the consolidation
criteria set out in IAS 27. The company’s shares are recorded
in the balance sheet at their acquisition cost and are classified
as available-for-sale financial assets.
The main financial information concerning HLM Logis Transports
is presented in note 18.
3.1.2 Business combinations
3.1 Consolidation
3.1.1 Consolidation scope and methods
The consolidated financial statements of RATP Group comprise
the financial statements of RATP and those of its subsidiaries, joint
ventures and associates. Subsidiaries are all entities over which
the Group exercises control.
Control exists when the Company has the power, directly or indirectly,
to govern the financial and operating policies of an entity so as
to obtain benefits from its activity. Control is presumed to exist
if the Company holds, either directly or indirectly via its subsidiaries,
more than 50 per cent of voting rights. The financial statements
of subsidiaries are fully consolidated and those of minority interests
are accounted for based on their ownership interest.
Companies are consolidated from the date their controlling interest
is transferred to the Group. They are deconsolidated from the date
the Group ceases to exercise such control.
Subsidiaries that are jointly controlled by the Group and other
shareholders are proportionately consolidated.
Subsidiaries, over which the Group exercises significant influence
but not control, are accounted for by the equity method. Significant
influence is presumed to exist when the Group holds between 20%
and 50% of voting rights.
Acquisitions of subsidiaries are recorded using the purchase method.
The acquisition cost comprises the fair value of the assets acquired
and the liabilities assumed, including directly-attributable transaction
costs. Goodwill represents the difference between the cost of
the acquisition and the Group’s interest in the fair value of the assets
acquired and liabilities and contingent liabilities assumed (note 12).
Moreover, if the fair value of the Group’s share in the assets and liabilities
acquired exceeds the acquisition cost, this surplus is immediately
recognised in the income statement.
Minority interests are presented in a separate line on the balance
sheet under shareholders’ equity. Their share of consolidated net
income is presented separately in the income statement.
All inter-company transactions, including profits, losses and dividends,
are eliminated upon consolidation.
3.2 Foreign currency translation
3.2.1 Functional currency and reporting currency
The consolidated financial statements are presented in euros, which
is the Group’s reporting currency. The items included in the financial
statements of each Group entity are measured in the functional
currency, which is the legal tender of the primary economic environment
in which the entity operates.
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3.2.2 Financial statements of foreign operations
3.4.2 Other intangibles
The financial statements of the subsidiaries Systra, Transdev, M’Dina
Bus and Bombela Operating Company, which are prepared using
a functional currency different from that of the parent company,
have been converted into euros as follows:
• balance sheet entries, using the exchange rate effective at year end;
• income statement entries, using the average exchange rate over
the period.
Other intangible assets are recorded in the balance sheet at their
historical value. They are systematically amortized over their useful life.
Gains and losses from foreign currency translation are recognized
directly in equity under “Currency translation reserves” for those
relating to the Group, and under “Minority interests” for those relating
to minority interests. When a foreign operation is sold, the associated
currency translation gains and losses recognized in equity are
transferred to profit and loss.
3.2.3 Conversion of foreign currency transactions
Foreign currency transactions are converted into the functional
currency at the exchange rate effective on the date of the transaction.
At each year end:
• non-monetary assets and liabilities denominated in foreign
currencies are recorded at the historical exchange rate effective
at the transaction date;
• monetary assets and liabilities denominated in foreign currencies
are translated at the exchange rate effective at year end. Foreign
currency translation adjustments are recorded in the income
statement for the period under Intangible assets, or as a separate
component of equity if they relate to hedges of net investments
or cash flows.
3.3 Goodwill
Goodwill is initially measured as the difference between the cost
of the business acquired and the Group’s proportionate interest
in the fair value of the identified assets, liabilities and contingent
liabilities of the entity acquired at the acquisition date. It may be
modified subsequent to adjustments in the fair value of the assets
acquired and liabilities assumed within twelve months from
the acquisition date.
Subsequently, goodwill is stated at cost less any impairment losses.
Goodwill is not amortized but is tested for impairment at least once
a year and when there is an indication of impairment.
In the event of the sale of an investment, the gains or losses
recognized take into account the net book value of the goodwill
of the divested business.
3.4 Intangible assets
3.4.1 Research and development expenses
Internal development costs are only capitalized under intangible assets
if they meet the six criteria set forth by IAS 38 and can be measured
reliably. The costs are capitalized from the date management makes
the investment decision, if there is proof that the asset will generate
sufficient future economic benefits. Internal procedures ensure that
records are available on the date management takes the investment
decision.
Development costs are amortized based on the depreciation periods
applied to the associated assets.
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Software is amortized on a straight-line basis over three to ten years.
3.5 Property, plant and equipment
The Group’s property, plant and equipment comprises the assets made
available for use by RATP that are owned by the public authorities,
notably the Île-de-France public transport authority (STIF), the Group’s
fully-owned assets and assets held under finance leases.
The breakdown of real estate assets based on ownership is as follows:
• State: primarily the lines incorporated in the RER network;
• STIF: primarily Paris metro lines built before 1968, as well as a number
of buildings used by RATP for its business;
• RATP: all the other assets.
Ownership arrangements concerning the assets made available
to RATP by the State and STIF
RATP was formed by the Act of March 21, 1948, which transferred
the rights of use of the assets and property conceded by the City of
Paris or Seine Department to the Paris Metropolitan Railway Company
and to the Paris Regional Public Transport Company to RATP upon
its formation (note 3.15 Reserve for assets).
The Decree of June 4, 1975 provided for the real property allocated to
RATP operations to include the assets owned by the State, comprising
the public railway track required for the regional transport network,
assets owned by STIF (metro lines built before 1968) and the assets
acquired or built by RATP itself.
The assets made available by the French State and STIF, without
transfer of ownership, are presented in RATP’S balance sheet under
the appropriate fixed asset accounts in order to provide a true economic
view of the assets under the Group’s management. However, RATP
does not have full rights to the assets as they are part of the public
transport domain.
In accordance with its operating terms and conditions, RATP is
responsible for maintaining and replacing the property it manages.
The French decentralization act of August 2004 did not amend any
aspects regarding the ownership of these assets.
The European regulation of October 23, 2007 on public passenger
transport services imposes a limit on the duration of rights granted
to operators, although no precise dates have yet been set (note 1:
Significant events and transactions). As of December 3, 2009, the dates
will be required and will be used in the preparation of the financial
statements of both RATP and RATP group. Upon the award of public
service contracts, the competent transport authorities shall set out new
provisions concerning contract duration, financing arrangements, and
disposal of assets upon contract expiry. Depreciation and impairment
of fixed assets is calculated and recognized in the financial statements
on the basis of the provisions. RATP is currently evaluating
the accounting and financial impact of the new provisions.
RATP acquired and self-constructed assets
Property, plant and equipment acquired and fully owned by RATP
is recorded in the consolidated balance sheet at acquisition or
production cost, or at the asset’s fair value at the consolidation date.
RATP contributes to financing the infrastructure, equipment and
rolling stock on the lines it operates, whether or not it owns them.
In accordance with component-based accounting, RATP’s fixed assets
are broken down into components and the useful life of each asset
component is applied based on how frequently it has to be replaced
or renovated.
Certain assets have received funding from investment grants
(notes 3.10 and 14).
For assets subject to decommissioning obligations, the estimated cost
of the obligation is included in the acquisition cost of the associated
asset, and is also provisioned (notes 3.16 and 26).
Straight-line depreciation is considered to be the most appropriate
in economic terms. The depreciation periods used by the Group are
as follows:
CATEGORIES
DURATION
Main railway infrastructure assets
70 to 140 years
Infrastructure asset components
15 to 60 years
Tracks
12.5 to 50 years
Building shell and brickwork
70 to 100 yearss
Building fixtures and fittings
6.66 to 30 years
Automated train operating system (SAET)
and Track signaling
Rolling stock (rail)
5 to 35 years
15 to 40 years
If there is an indication that an asset may be impaired, the net book
value of the asset is compared to its recoverable value. The recoverable
value of an asset or cash-generating unit is the higher of an asset’s fair
value less costs to sell and its value in use.
Value in use is determined by discounting the CGU’s expected future
cash flows using an appropriate discount rate based on the nature
of the business, and taking into consideration its residual value.
The asset impairment test carried out on the RATP CGU on January 1,
2006, upon transition to IFRS, was based on forecast net cash flows
after capital expenditures for 2006-2011 (year the STIF contract is
presumed to terminate), and on a presumed residual value, equal
to net book value. The test also assumed a theoretical selling price
at the end of the contract (which for the requirements of the test
and as a conservative measure was assumed to be at least equal
to the net book value). The test did not reveal any impairment.
As indicated above (note 1 – Significant events in 2008), the regulation
on public passenger rail and road transport services, adopted in 2007,
set out the new terms governing the granting of public service contracts.
However, as transitional arrangements are currently in force for
existing contracts, the date the new rule will come into effect for these
contracts has not been defined. Therefore, the effects on the property,
plant and equipment currently operated and recorded as assets
by RATP, whether fully owned or available for use, have not yet been
determined.
During 2008, no impairment was recorded on this CGU.
Rolling stock (bus)
4 to 10 years
3.7.2. Impairment of other assets
Plant equipment, fixtures and fittings
5 to 50 years
Other property, plant and equipment
3 to 15 years
The useful life of property, plant and equipment is reviewed annually
and modified to account for any significant change.
For all non-financial assets, impairment testing is carried out
whenever there is an indication of impairment. The net book value
of the non-financial asset is compared to its recoverable value, which
is defined as the higher of selling price (less costs to sell) and its value
in use.
3.6 Investment property
3.8 Financial assets
The Group owns investment property at quai des Grands-Augustins
in Paris. The building is not used for RATP’s operations and does
not generate lease revenue. It is valued at cost, which is the method
used to account for investment property.
3.7 Asset impairment
In accordance with IAS 39, the Group’s financial assets are classified
in one of the following three categories: available-for-sale financial
assets, loans and receivables (other financial assets) and financial
assets at fair value through profit or loss (derivative financial
instruments). When initially recorded, financial assets are measured
at their acquisition cost including transaction costs. The purchase
and sale of financial assets is recognized at the transaction date.
3.7.1. Impairment of Cash-Generating Units (CGU)
3.8.1 Available-for-sale financial assets
In accordance with IAS 36, assets to be tested for impairment are
combined in Cash-Generating Units.
Available-for-sale financial (AFS) assets primarily consist of
unconsolidated investments, shares in open-ended mutual funds
(Sicav), shares in UCIT funds and shares in open-ended collective
investment funds (FCP), which do not qualify for classification as cash
and cash equivalents. AFS assets are stated at fair value. Changes
in the fair value of the assets are recognized in equity until the
investment is sold or disposed of in any other way. However, if it can
be shown that the AFS asset is impaired, the accumulated impairment
loss is recognized in the income statement and cannot be reversed.
A Cash-Generating Unit is the smallest identifiable group of assets
that generates cash inflows that are largely independent of the cash
inflows from other assets or groups of assets.
As all of RATP’s business activities are interdependent, they are
combined in a single CGU.
The other Cash-Generating Units are defined on the basis
of the function they perform and their operating location.
In compliance with IAS 36, impairment testing is performed:
• annually on all CGUs containing goodwill or other intangible assets
with indefinite useful lives;
• when there is an indication that all the assets may be impaired.
If fair value cannot be determined reliably, the available-for-sale
financial assets are stated at cost less any impairment losses.
33
3.8.2 Loans and receivables (other financial assets)
Other financial assets mainly consist of receivables relating
to subsidiaries and affiliated companies, loans and security deposits.
All of these financial assets are initially measured at fair value, then
at their amortized cost, which is measured using the effective interest
rate method.
If there is any indication of impairment, the assets are tested for
impairment. An impairment loss is recognized in the income statement
if the carrying amount of the asset exceeds the estimated recoverable
amount. Impairment is recorded in the income statement.
3.8.3 Derivative financial instruments
The Group uses interest rate, currency and commodity forwards and
financial instruments such as swaps, caps, floors and swaptions for
the sole purpose of managing its exposure to interest rate, exchange
rate and price escalation risk. Risk management is centralized by the
treasury department at head office within the limits set by the Group’s
Finance Department.
3.8.3.1 Presentation of derivative financial instruments
Derivative financial instruments are recognized in the balance sheet
under other current assets and liabilities.
In accordance with IAS 39, derivative instruments are measured at
their fair value when initially recognized, then subsequently re-measured
at each year-end until maturity. At each year-end, the fair value
of the derivative financial instruments is calculated based on
the valuation models and methods commonly used on the markets.
The method of accounting for derivative financial instruments varies
according to whether they are considered to be fair value hedging
instruments, cash flow hedges or are not qualified as hedging
instruments.
3.8.3.2 Hedging instruments
Effectiveness tests are performed when the hedges are set up,
and then subsequently at each year end. If the tests show that
the ineffective portion is too great, hedge accounting will no longer
apply and the derivative will no longer be classified as a hedging
instrument.
3.8.3.3 Derivatives not classified as hedges
While part of the Group’s hedging policy, some transactions do not
qualify as hedging operations as they do not meet the specific hedge
accounting criteria set out in IAS 39.
Any changes in fair value of these derivative financial instruments
are immediately recorded in the income statement.
Quantitative data on the use of these derivative financial instruments
are provided in note 30.
3.9 Leases
3.9.1 Operating leases
Operating lease payments are expensed in the income statement
on a straight-line basis over the duration of the lease.
3.9.2 Finance leases
In accordance with IAS 17, leases are classified as finance leases when
in substance the terms of the lease transfer substantially all the risks
and rewards of ownership to the lessee. Assets held under finance
lease are initially recognized as assets, with an offsetting entry under
liabilities, at their fair value or, if lower, at the present value
of the future minimum lease payments. Subsequently, the lease
payments are accounted for as repayments of the liability and
are broken down into:
• repayment of principal;
• interest, based on the interest rate specified in the contract
or the discount rate used to measure the outstanding liability.
For hedging transactions, the Group implements the hedge accounting
arrangements set out in IAS 39: derivative financial instruments
are recorded in the balance sheet at their fair value at year end, based
on their hedge classification.
Depreciation and amortization is recorded in the same manner
as for the associated fully-owned assets, with interest replacing
the lease payments recorded in the company’s financial statements.
Fair value hedges
A fair value hedge is a hedge of the exposure to a change in the fair
value of a recognized asset or liability, or of an unrecognized firm
commitment.
Lease payments are indexed to the French cost of construction index.
The hedged item and the hedging instrument are re-measured at the
same time, and changes in their fair values are recorded immediately
in profit or loss. The net effect of the ineffective portion of the hedge
is recognized immediately in the income statement.
Cash flow hedges
A cash flow hedge is a hedge of the exposure to a highly probable
forecast transaction that is not recorded in the balance sheet.
Changes in the fair value of the effective portion of the hedging
instrument are recognized directly in equity in the line item
“Cash flow hedge reserves” and are transferred to the income
statement as the hedged transaction is settled. Changes in the fair
value of the ineffective portion are recognized immediately
in the income statement.
34
The Group only uses finance leases for buildings.
Details of the assets recorded under property plant and equipment
for finance leases are provided in note 15, and the associated liability
is outlined in note 27.
3.10 Investment subsidies
Grants are recognized if there is reasonable assurance that the Group
will comply with the grant conditions and the grant will be received.
The grants are associated with particular assets and are presented as
a deduction from the assets, then transferred to the income statement
over the useful life of those assets as asset depreciation is recorded.
The special rate obtained on the loans granted by the Île-de-France
region is presented in the same way as the other grants for assets.
3.11 Inventories
Cash flow hedge reserves
Inventories are stated at the lower of cost (including associated
transaction costs) and net realizable value. Cost is calculated using
the weighted average cost method.
This reserve account records the accumulated changes in the fair value
of the effective portion of the derivative instruments used as cash flow
hedges (transactions not yet recognized).
An impairment loss is recorded if the probable realizable value
of an item of inventory is lower than its cost.
Actuarial gains and losses on post-retirement benefits
3.12 Trade receivables
Trade receivables are recorded at fair value, which equates to their
nominal value, as the effect of discounting is not material for assets
that are due within one year.
In application of the revised IAS 19, actuarial gains and losses
on the post-retirement benefits granted to the Group’s employees,
are charged or credited directly to equity.
3.16 Provisions
Impairment is recorded if there is collectibility risk, to reduce their
carrying amount to probable realizable value.
A provision is recognized at year end if the Group has a legal or
constructive obligation towards a third party as a result of a past event,
it is probable that an outflow of economic benefits will be required
to settle the obligation, and the obligation can be reliably estimated.
3.13 Cash and cash equivalents
The provision recognized corresponds to the estimated amount
of resources required to settle the obligation.
Cash equivalents are held exclusively to meet the Group’s short term
cash requirements.
The line item “cash and cash equivalents” includes bank accounts,
liquid investments and cash equivalents.
Cash equivalents comprise risk-free investments with maturities of
three months or less, which can almost immediately be converted into
cash and with negligible risk of change in value.
They include:
• negotiable receivables, carried at their nominal value, which is deemed
to represent fair value;
• shares in monetary UCIT funds in euros, which are measured at their
liquidating value at year end.
Changes in the fair value of these cash equivalents are recorded
in the income statement.
Provisions are discounted if the effect of discounting is material.
Decommissioning costs mainly concern railway rolling stock.
A provision is recorded to offset the amount recorded under assets and
their asset components are amortized over the useful life of the trains.
Any increase in the liability provisioned in terms of cost or term
to maturity (decommissioning component) is capitalized in the value
of the associated equipment.
A contingent liability is a possible obligation that arises from past
events and whose existence will be confirmed only by the occurrence
or non-occurrence of one or more uncertain future events not wholly
within the control of the entity; or a present obligation for which
it is not probable that an outflow of resources will be required.
Contingent liabilities are only recognized in the financial statements
in the event of business combinations. However, disclosure is required
in the notes to the financial statements.
3.14 Equity
RATP was formed by the act of March 21, 1948. However no capital
was transferred to it at that time. In 1986, the public authorities
allocated RATP capital, partially in exchange for the early repayment
of the loans previously granted to it by the economic and social
development funds.
3.15 Special reserves
This account reflects the residual value of the assets made available
for use by RATP as of January 1, 1949 (date at which the Company
was created), and assets subsequently made available to RATP
(Line B and the Saint-Germain-en-Laye stretch of Line A).
Gains/losses on disposal of property
In accordance with the legal provisions governing RATP’s operations,
gains and losses arising from the sale of property are recorded directly
in reserve accounts, with a clear distinction drawn between the assets
made available to RATP and those internally developed by RATP.
In accordance with the provisions agreed with the supervisory
authorities, the reserve accounts may be used to fund capital
expenditures. (note 24 – Reinvestment reserves).
3.17 Employee benefits
3.17.1 Defined Contribution Plans
RATP pays employer contributions into the RATP employees’ pension
fund. Pursuant to the Decree of December 2005, these contributions
are the only requirement incumbent on RATP in terms of retirement
obligations. RATP has no other actuarial liabilities. The payments
made by RATP are expensed in the period they relate to.
3.17.2 Defined benefit plans for post-retirement benefits
The net liability recorded in the balance sheet for post-employment
benefit obligations corresponds to the present value of the obligation
relating to defined benefits at year end, less adjustments for the
unrecognized cost of past services. The present value of the obligation,
as well as the cost of past services is calculated using the projected unit
credit method. According to this method, the rights to benefits are
attached to periods of service based on the vesting plan formula.
Rights are calculated on a straight-line basis if the rate of vesting is not
stable during the later years of service. There are no plan assets.
35
The amount of future payments for employee benefits is assessed
using assumptions such as salary increase rate, retirement age,
number of years’ service to date and mortality tables. They are
discounted to their present value using the Bloomberg 10/15 year rate.
Actuarial gains and losses are recorded under equity (note 25).
Deferred taxes are recognized for all temporary differences arising from
investments in subsidiaries, affiliates and jointly-controlled entities,
unless the date at which the temporary difference will reverse can be
controlled and the reversal is not expected to occur in the foreseeable
future.
Past service cost is expensed on a straight-line basis over the average
remaining vesting period if unvested, or immediately to the extent that
the benefits are already vested.
For French companies, the statutory tax rate at the date of the financial
statements was 33.33%.
The retirement obligation for the period is fully expensed to operating
income and recorded under payroll and payroll related costs (note 7).
3.20 Revenue recognition
3.17.3 Other long-term benefits
Any actuarial gains and losses and past service costs relating to other
long-term benefits are immediately expensed in full.
Revenue is recognized when the associated risks and benefits are
transferred to the buyer, which usually coincides with the transfer
of ownership or the provision of a service. Revenue is recognized net
of rebates, discounts and income tax, and after the elimination
of inter-company sales.
Revenue comprises:
3.18 Financial liabilities
Apart from derivative instruments, which are measured at fair value,
other financial liabilities are measured at fair value when initially
recorded in the balance sheet, then subsequently at amortized cost,
using the effective interest rate method.
Loans and borrowings mainly include bond issues, loans from
the Île-de-France region, loans from financial institutions and
short-term bank loans.
They are initially recognized at their fair value, corresponding
to the amount received less borrowing costs, then subsequently
at amortized cost using the effective interest rate method.
For fair value hedges on loans and borrowings, the hedged part
of loans and borrowings is recorded in the balance sheet at fair value,
based on market value. Changes in fair value are recorded in the
income statement and are offset by symmetrical changes in the fair
value of the hedging instruments.
3.19 Deferred tax
The Group records deferred taxes for all temporary differences
between the carrying amount and taxable value of its assets and
liabilities recognized in the consolidated financial statements, using
the liability method. Deferred taxes are not recognized if the difference
is generated by the initial recognition of an asset or liability in a
transaction which is not a business combination, and which does not
impact earnings, tax income or tax loss at the transaction date.
Deferred tax assets and liabilities are measured at the tax rates that
are expected to apply in the reporting period when the asset is realized
or the liability settled, based on the tax rates (and tax regulations)
enacted or substantially enacted at the date of the financial
statements. Deferred taxes concern the subsidiaries, as RATP is not
subject to tax.
Deferred tax assets are recognized insofar as it is probable that
the temporary difference will reverse in the foreseeable future.
36
1) Transport revenue, made up of three components:
• direct traffic revenue from transport users;
• STIF contributions;
• C1, a contribution to operations and public service obligations.
This contribution comprises three parts: a flat-rate contribution
operating expenses that are not covered by revenue from transport
users; a contribution covering the exact amount of business,
professional and property-related taxes and duties levied; and
a contribution covering the difference between the budgeted direct
revenue used to calculate the flat-rate contribution and the updated
budgeted direct revenue based on STIF’s pricing decisions;
• C2, a contribution to finance investments;
• a reward/penalty quality of service performance system.
These contributions are reviewed annually based on certain indexes.
2) Income from transport-related activities.
3) Non-transport revenue.
Revenue is recognized when users actually use the transport services.
The public tariffs are set by the Île-de-France regional public transport
authority (STIF). For RATP, they constitute a public service obligation.
Income from transport-related activities mainly includes:
• revenue from advertising and commercial leases;
• various repayments.
Non-transport revenue consists primarily of revenue from services
and work rendered to third parties, sales of goods, mobile telephony
and telecommunications. Revenue from engineering and construction
contracts and the associated costs are recorded under financial income
and expense respectively, according to percentage completion at year
end. Percentage-of-completion is measured on the basis of the costs
incurred for the work performed to date, based on the estimated total
contract costs.
Profit generated on contracts that are accounted for by the
percentage-of-completion method is only recognized when it can
be measured reliably. If it is likely that the total costs of the contract
will exceed contract income, the expected loss at completion is
immediately expensed and recorded as an impairment of contract
revenue receivable, then provisioned under liabilities, as appropriate.
3.21 Segment reporting
The Group’s primary activity is the provision of public transport
in Paris and the suburbs in the Île-de-France region.
The Group thus considers that it is appropriate to focus on information
relating to the transport sector, which is its primary level of segment
reporting.
The vast majority of the Group’s business is conducted in France.
Pursuant to IAS 14, business generated in the geographic segment
“outside France” is below the threshold requiring specific segment
information.
The companies FlexCité 93, FlexCité 77 and 91 were consolidated
in 2008. They are wholly-owned by FlexCité, in which RATP
Développement holds a 51% stake. They were set up to transport
people with mobility impairments.
Disposals and deconsolidated companies:
• RATP Développement sold its ownership interests in Transports
du Val-d’Oise. (TVO). The transaction generated a capital gain
of €4 million.
• RATP Développement did not participate in the capital increase
of the Moroccan company, M’Dina, so its percentage holding
in the Company was diluted to 4.76%. As RATP Développement
no longer exercises significant influence over M’Dina, the company
is no longer consolidated.
4. SCOPE OF CONSOLIDATION
Change in ownership interests:
4.1 Number of companies consolidated
The list of companies consolidated figures in note 34.
4.2 Changes in the consolidation scope
Newly-consolidated companies:
On October 9, 2008, RATP Développement acquired Cars Jacquemard
and the entire ownership interests of SCI Pimian. These companies
operate the transport network in the Eure region.
• RATP Développement increased its ownership interest in the tourist
transport company, SLT, by 1%.
• Giraux Transports Services increased its stake in the companies
Transports Voyageurs du Mantois (TVM) and Compagnie
des transports voyageurs du Mantois Interurbains (CTVMI).
GTS and Cars Giraux wholly own these two companies.
• The company Cité Bleue was fully taken over by STIVO, which
is a 50%-owned subsidiary of GTS (20%-owned in 2007).
The company is proportionately consolidated.
The new consolidations, divestments and changes in consolidation
scope did not effect the financial statements as at December 31, 2008.
5. BREAKDOWN OF REVENUE
12/31/2008
12/31/2007
3,869,605
3,673,311
Transport-related activities
101,387
104,849
Non-transport revenue
346,223
326,428
4,317,215
4,104,588
Transport
TOTAL REVENUE
To provide a clear view of revenue, following the introduction of the compensation system under the new STIF 2008-2011 agreement, the standard
contribution received in 2007 relating to the 2004-2007 agreement was included in transport revenue for the year ended December 31, 2007.
Revenue per subsidiary in France and abroad
12/31/2008
RATP
REVENUE
REVENUE
FRANCE
4,028,692
4,028,692
RATP Développement
12,080
11,166
Groupe Giraux
53,137
53,137
62,498
55,793
119,830
25,550
1,377
1,377
Promo Métro
19,303
Telcité-Naxos
19,269
Groupe Systra
Xelis
SEDP
GROUP TOTAL
12/31/2007
REVENUE
INTERNATIONAL
914
REVENUE
REVENUE
FRANCE
3,857,527
3,857,527
REVENUE
INTERNATIONAL
8,649
8,649
38,453
38,453
6,705
46,995
42,973
4,022
94,280
114,562
23,107
91,455
554
554
19,303
18,694
18,694
19,269
18,688
18,688
1,031
1,031
466
466
4,317,215
4,215,316
4,104,588
4,009,111
101,899
95,477
37
6. RESEARCH AND DEVELOPMENT (R&D) COSTS
Research and development costs for 2008 amounted to €2,089 thousand compared with €2,562 thousand for the previous year.
7. PAYROLL EXPENSE
7.1 Financial impact
Salaries and wages
Social security contributions
12/31/2008
12/31/2007
– 1,626,712
– 1,536,291
– 716,911
– 697,890
Other long-term benefits
6,033
– 2,883
– 33,982
– 32,394
–2,371,572
–2,269,458
Profit sharing
TOTAL PAYROLL AND PAYROLL-RELATED COSTS
7.2 Number of employees
12/31/2008
CONSOLIDATION
METHOD
%
OF INTEREST
AGGREGATE
NUMBER
OF EMPLOYEES
12/31/2007
GROUP
SHARE(1)
AGGREGATE
NUMBER
OF EMPLOYEES
GROUP
SHARE(1)
43,809
RATP parent company
FC
100.00
44,146
44,146
43,809
RATP Développement
FC
100.00
14
14
11
11
Cars Perrier
FC
100.00
192
192
196
196
OrlyVal Services
FC
100.00
Groupe Giraux
FC
77
77
75
75
707
700
672
611
344
259
550
354
Groupe Systra
PC
50.00
1,812
906
1,466
733
Xelis
FC
100.00
43
43
17
17
Promo Métro
FC
100.00
21
21
22
22
Telcité
FC
100.00
14
14
14
14
SEDP
FC
100.00
AVERAGE NUMBER OF EMPLOYEES
37
37
37
37
47,407
46,409
46,869
45,879
(1) The employees of fully-consolidated companies are accounted for 100%. The number of employees of proportionately-consolidated companies is proportionate to percentage
consolidation and employees of equity-associated companies are not included.
7.3 Individual training rights
In accordance with the provisions of the French law no. 2004-391 of May 4, 2004 on professional training, the company grants its employees
individual training rights of twenty hours minimum per calendar year, which may be accumulated for up to six years at the end of which,
if the rights have not been used, they are capped at one hundred and twenty hours. As at December 31, 2008, the number of hours accrued
for training amounted to 3,207,593 hours. The number of unused accrued training hours amounted to 3,204,551 hours.
8. OTHER OPERATING INCOME AND EXPENSE
12/31/2008
12/31/2007
Trade receivable write-offs
– 4,870
– 2,292
Various operating expenses
– 19,162
– 45,242
–24,032
–47,534
TOTAL OTHER OPERATING INCOME AND EXPENSE
38
9. OTHER OPERATIONAL INCOME AND EXPENSE
12/31/2008
12/31/2007
6,219
– 3,193
Other
– 3,201
181
TOTAL OTHER OPERATING INCOME AND EXPENSE
3,017
–3,012
Gain or losses on sale of assets
10. NET FINANCIAL EXPENSE
12/31/2008
Borrowing costs
Interest on outstanding loans
Interest on finance leases
Financial income
Net income from cash equivalents
Income received from other financial assets
Other income from available-for-sale financial assets
12/31/2007
– 307,018
– 190,484
– 305,414
– 189,187
– 1,604
– 1,297
31,648
15,183
30,556
13,781
945
922
147
480
– 1,889
– 663
Provision allocations and reversals for financial risk
– 1,318
123
Income from unhedged derivatives
– 1,154
0
Hedging expense
Gain/loss on hedging derivatives – Ineffective portion
Currency translation gains and losses
Currency translation derivatives
Currency translation operating items
Short-term loans and borrowings
227
– 12
– 85,390
10,760
85,390
– 11,396
356
– 138
70,833
– 16,147
Leasehold Income
10,460
16,305
Other financial income and expense
92,942
68,097
NET TOTAL
Total financial income and expense
– 32,569
– 100,549
–206,426
–192,111
220,796
110,467
–427,222
–302,578
Gains and losses on currency translation are offset by gains and losses on hedge derivatives. Details on financial risk management are provided
in note 29.
11. INCOME TAX
The breakdown of income tax is as follows:
Tax income/expense
12/31/2008
12/31/2007
– 7,036
– 6,266
Tax consolidation income/expense
588
150
Deferred tax income/expense for temporary differenc
521
24
–5,927
–6,092
TOTAL TAXES
Changes in net deferred taxes were as follows:
12/31/2008
Opening balance
Recognized in the income statement
Recognized in goodwill
CLOSING BALANCE
–4,400
12/31/2007
–1,130
521
24
– 179
– 3,294
–4,058
–4,400
39
The breakdown of deferred taxes by type is as follows:
12/31/2008
Temporary differences
Valuation differences
12/31/2007
– 388
– 176
– 4,147
– 4,063
16
– 117
Present value
CB adjustment
Employee benefits
Regulated provisions
Other
340
284
– 210
– 194
331
– 134
–4,058
–4,400
Of which-deferred tax assets
3,009
2,348
deferred tax liabilities
7,067
6,748
TOTAL
In 2008, €2,378 thousand of loss carry-forwards were capitalized by Systra group, in conformity with the method described in note 3.18.
Deferred tax assets are only recognized if it is probable that the Group will generate future taxable profit.
12. GOODWILL
12/31/2008
Opening balance
Acquisitions through business combinations
Currency translation gains and losses, net
CLOSING BALANCE
12/31/2007
45,739
1,276
5,267
44,471
– 28
–8
50,978
45,739
The changes over the period reflect the acquisition of Cars Jacquemard and the increases in percentage ownership interests during 2008.
In accordance with the method described in note 3.3, impairment tests were performed on the CGUs as at January 1, 2008. The tests did not show
any impairment.
40
13. INTANGIBLE ASSETS
12/31/2006
ACQUISITIONS
RETIREMENTS,
DISPOSALS
RECLASSIFICATIONS
CHANGE
OF SCOPE
12/31/2007
Gross value
Lease rights
2,626
0
0
0
0
2,626
Research and development costs
2,358
0
– 2,332
94,303
0
94,329
248,145
1,608
– 6,045
28,580
0
272,287
34,934
25,220
– 28
– 25,057
550
35,620
5,420
1,145
0
– 5,222
– 15
1,328
293,483
27,973
–8,405
92,604
535
406,189
Software
Work in progress
Other tangible assets
TOTAL
12/31/2006
AMORTIZATION
CHANGE
RETIREMENTS,
DISPOSALS
REVERSALS
CHANGE OF SCOPE
AND RECLASSIFICATION
12/31/2007
Amortization and impairment
Lease rights
Software
Work in progress
Other intangible assets
TOTAL AMORTIZATION
AND IMPAIRMENT
INTANGIBLE ASSETS, NET
– 835
– 77
0
0
0
– 912
– 2,354
– 3,014
2,332
0
0
– 3,036
– 170,956
– 33,742
5,719
0
49
– 198,931
– 1,083
– 327
0
24
– 496
– 1,882
– 92
–1
0
0
9
– 84
–175,319
–37,161
8,051
24
–439
–204,844
118,163
–9,189
–355
92,626
95
201,345
12/31/2007
ACQUISITIONS
RETIREMENTS,
DISPOSALS
RECLASSIFICATIONS
CHANGE
OF SCOPE
12/31/2008
Gross value
Lease rights
Research and development (R&D) costs
Software
Work in progress
Other tangible assets
TOTAL
2,626
0
0
0
0
2,626
94,329
0
– 26
2,251
0
96,554
272,287
1,828
– 8,530
77,325
0
342,910
35,620
26,359
– 412
– 26,487
– 173
34,905
1,328
52
0
– 25
8
1,363
406,189
28,238
–8,968
53,064
–165
478,358
12/31/2007
AMORTIZATION
CHANGE
RETIREMENTS,
DISPOSALS
REVERSALS
CHANGE OF SCOPE
12/31/2008
Amortization and impairment
Lease rights
Software
Work in progress
Other intangible assets
TOTAL AMORTIZATION
AND IMPAIRMENT
INTANGIBLE ASSETS, NET
– 912
– 77
0
0
0
– 989
– 3,036
– 3,291
29
0
0
– 6,298
– 198,931
– 35,923
7,148
5
702
– 226,999
– 1,882
– 428
266
63
– 371
– 2,353
– 84
0
0
0
77
–7
–204,844
–39,718
7,442
68
408
–236,645
201,345
–11,481
–1,527
53,131
241
241,713
The increase in intangible assets is mainly due to the placing in service of software (€78.2 million).
41
14. PROPERTY, PLANT AND EQUIPMENT
12/31/2006
Gross value
Land
Buildings
Technical plant, equipment and machinery
Transport equipment
Work in progress
Investment grants
TOTAL
TOTAL DEPRECIATION
AND IMPAIRMENT
NET VALUE
Gross value
Land
Buildings
Technical plant, equipment and machinery
Transport equipment
Work in progress
Investment grants
TOTAL
RECLASSIFICATIONS
CHANGE
OF SCOPE
12/31/2007
993
3,803
5,392
80,724
6,127
791,369
– 59
– 158,062
– 27,243
– 53,497
– 8,093
– 1,477
– 193,313
– 334
256,350
248,012
137,768
17,540
– 757,214
0
– 230
0
–2
– 178
– 10
800,716
6,770,407
4,085,949
4,512,835
215 450
1,310,142
– 4,117,322
13,229,810
888,407
–441,744
–97,879
–420
13,578,175
DEPRECIATION
CHARGE
RETIREMENTS,
DISPOSALS
REVERSALS
CHANGE OF SCOPE
12/31/2007
– 4,848
– 2,476,988
– 2,447,524
– 2,586,853
– 131,079
– 12
1,508,837
– 656
– 154,014
– 199,912
– 235,292
– 22,091
0
0
157,151
25,940
50,839
7,621
0
0
0
0
0
10
12
111,143
0
475
– 238
2
–5
0
– 5,504
– 2,473,376
– 2,621,734
– 2,771,304
– 145,545
0
1,619,980
–6,138,467
–611,965
241,550
111,165
234
–6,397,482
7,091,343
276,441
–200,195
13,285
–187
7,180,692
12/31/2007
ACQUISITIONS
RETIREMENTS,
DISPOSALS
RECLASSIFICATIONS
CHANGE
OF SCOPE
12/31/2008
800,716
6,770,407
4,085,949
4,512,835
215,450
1,310,141
– 4,117,321
145
4,620
6,838
13,315
3,293
971,632
0
– 73,302
– 58,299
– 42,052
– 6,720
– 34
– 196,190
804
351,117
220,148
180,861
14,936
– 814,559
238
0
120
– 156
0
– 50
0
801,665
7,052,961
4,254,479
4,664,958
226,909
1,467,181
– 4,313,273
13,578,176
999,843
–376,597
–46,457
–86
14,154,880
12/31/2007
Depreciation and impairment
Land
Buildings
Technical plant, machinery and equipment
Transport equipment
Investment grants
RETIREMENTS,
DISPOSALS
800,115
6,668,545
3,859,789
4,347,842
200,055
1,277,473
– 3,924,009
12/31/2006
Depreciation and impairment
Land
Buildings
Technical plant, machinery and equipment
Transport equipment
Investment grants
Subventions d’investissement
ACQUISITIONS
DEPRECIATION
CHARGE
RETIREMENTS,
DISPOSALS
REVERSALS
CHANGE OF SCOPE
12/31/2008
– 5,504
– 2,473,376
– 2,621,734
– 2,771,304
– 145,545
1,619,981
– 655
– 153,472
– 200,702
– 208,387
– 21,448
0
72,231
57,889
39,848
6,204
0
0
0
86
0
102,018
0
– 579
– 2,054
– 5,921
2,001
0
– 6,159
– 2,555,196
– 2,766,601
– 2,945,678
– 158,788
1,722,000
TOTAL DEPRECIATION
AND IMPAIRMENT
6,397,481
–584,664
176,171
102,104
–6,553
–6,710,423
NET VALUE
7,180,694
415,178
–200,427
55,646
–6,640
7,444,456
42
The changes in the item “Buildings” mainly reflect the opening of the extension of metro line 13 to Gennevilliers, as well as major maintenance
and renewal work on the RER and metro track and metro renovation.
Work in progress mainly reflects projects relating to new railway rolling stock, the replacement of trains, and metro line extensions.
Commitments relating to capital expenditures are indicated in note 32.1.
The property, plant and equipment held under finance leases exclusively concerns buildings. It amounted to the following:
12/31/2008
12/31/2007
Gross value
32,931
32,931
Accumulated depreciation
10,639
9,079
22,292
23,852
NET BOOK VALUE
LEASE PURCHASE COMMITMENTS
BALANCE SHEET ITEMS
Buildings
TOTAL
FEES PAID
PAYABLE
1 YEAR + TO 5 YEARS
RESIDUAL PURCHASE PRICE
5 YEARS +
14,285
9,874
30,816
11
69
0
2,373
9
14,296
9,944
30,816
2,382
Payments of €2,272 thousand were recognized in the income statement for operating leases.
15. SIGNIFICANT OPERATIONS
The risks to RATP are limited to those relating to ownership of
the equipment, French law and the counterparty risks on deposits.
15.1 American leasehold
Part of the counterparty risk relating to deposits, (€1,286 million
as at December 31, 2008), is hedged by defeasance agreements, which
enable the deposits to be offset against the associated liabilities.
Between 1997 and 2002, RATP entered into a number of leaseholds.
The leasehold arrangements entailed RATP granting the rights to its
assets, under specific terms and conditions, to American investors.
By assuming economic ownership of the assets, the investors were able
to amortize the assets and make substantial tax savings by deferring
tax. The tax advantage obtained by the foreign investors was shared
with RATP.
A leasehold transaction is composed of the main lease granted
by RATP and a sub-lease enabling RATP to retain the right of use
of the asset. RATP has an early buyout option (EBO) for a period
shorter than the full term of the lease, which enables it to unwind
the arrangement by repurchasing the outstanding portion of the lease.
In economic and accounting terms, no sale takes place and RATP
retains legal ownership of its equipment.
The various contracts that make up each leasehold arrangement
constitute separate transactions and are accounted for as such.
The assets and liabilities related to these contracts (deposits that are
never actually cashed in by RATP, other assets that are not received
and liabilities that are not paid) are offset in the balance sheet and
income statement, and appear in a single line as the net present value
(NPV) corresponding to the overall profit generated by each transaction.
This profit is recorded as deferred income when the contracts are
signed and then is recognized as financial income on a straight-line
basis over the duration of the contract.
Another part of counterparty risk relating to deposits, (€459 million
as at December 31, 2008), is hedged by collateral agreements, which
require the deposits to be replaced by American treasury bonds
in the event of a lowering of the company’s credit rating.
RATP bears the counterparty risk for the remaining amount of
deposits, (€327 million as at December 31, 2008), and provides letters
of credit on RATP risk to American investors if the rating on these
deposits falls below a certain threshold. Since December 31, 2008,
RATP has provided letters of credit for a maximum of €131 million.
In 2008, three contracts were terminated (note 1).
15.2 Swedish lease
The Swedish leasehold agreement is used to finance equipment.
The investor pays the supplier the total value of the equipment. RATP
leases the equipment over an eighteen year period, at the end of which
it may exercise its buy-back option. At the inception of the contract
the RATP sets up deposits to cover the payments relating to the lease
and equipment buyback option.
The Swedish lease is restated in the consolidated financial statements
(note 15.1).
43
16. INVESTMENTS IN ASSOCIATES
12/31/2008
12/31/2007
GROUP COMPANIES
%
OF INTEREST
SHARE
OF EQUITY
SHARE
OF NET INCOME
%
OF INTEREST
SHARE
OF EQUITY
SHARE
OF NET INCOME
Groupe Transdev
25.00
134,337
3,171
25.60
149,810
7,720
LFI
12.00
2,521
180
12.00
2,341
44
20.00
66
17
– 22
Cité Bleue
Partly consolidated in 2008
Tram Di Firenze
24.90
1,923
73
24.90
1,849
LFI Services
12.00
1,512
69
12.00
1,406
58
TVO
35.00
0
288
35.00
1,637
382
49.88
1,383
3
49.89
1,212
–5
TFT SpA
12.00
1,534
12
12.00
784
– 42
SELT
24.50
826
66
24.50
817
102
Systra group equity-accounted
50.00
258
66
50.00
166
31
RFT SpA
12.00
72
21
12.00
51
–6
Alexa
37.00
– 54
– 16
37.00
– 38
– 16
STBC
15.00
– 23
30
15.00
– 54
47
0.00
0
– 1,519
20.00
– 4,750
– 2,638
144,287
2,444
155,299
5,671
M’Dina Bus
TOTAL
The Group has significant influence over these companies for the following reasons:
– for STBC, RATP manages its operations;
– for LFI, LFI services, TFT SpA, RFT SpA, RATP is the majority shareholder of the companies, and holds 30% of LFI.
17. INVESTMENTS IN JOINT VENTURES
12/31/2007
GROUP COMPANIES
Equival
NON-CURRENT
ASSETS
CURRENT
ASSETS
NON-CURRENT
LIABILITIES
CURRENT
LIABILITIES
NET INCOME
324
227
110
213
Financière Systra
19,739
28
0
0
9
3
Groupe Systra
13,498
76,671
12,614
40,655
4,613
Eurailco GmbH
5,741
232
0
198
0
SLT
1,203
3,974
17
1,761
1,946
STIVO
1,760
8,050
1,604
4,762
603
Trans Regio
2,106
4,672
1,256
5,015
– 2,614
44,369
93,853
15,600
52,602
4,560
CURRENT
ASSETS
NON-CURRENT
LIABILITIES
CURRENT
LIABILITIES
NET INCOME
TOTAL
12/31/2008
GROUP COMPANIES
Equival
NON-CURRENT
ASSETS
308
242
96
199
26
Financière Systra
19,739
20
0
0
–9
Groupe Systra
14,798
79,375
12,889
43,324
3,781
Eurailco GmbH
8,316
294
0
– 241
0
STIVO
1,762
9,802
1,071
6,456
1,282
Cité Bleue
8
70
0
14
57
Transregio
8,966
4,593
7,116
5,029
– 1,591
55,802
97,106
21,187
55,611
5,541
TOTAL
44
18. NON-CURRENT AVAILABLE-FOR-SALE FINANCIAL ASSETS
12/31/2007
FINANCIAL ASSETS
AT 01/01/2007
Gross value
11,615
Impairment
– 4,362
TOTAL NET VALUE
7,254
DISPOSALS
ACQUISITIONS/
IMPAIRMENT
– 3,288
2,286
–3,288
1,485
CURRENCY TRANSLATION
GAINS AND LOSSES
OTHER
1
–9
0
–9
FINANCIAL ASSETS
AT 12/31/2007
10,605
– 801
– 5,162
5,443
12/31/2008
FINANCIAL ASSETS
AT 01/01/2008
Gross value
10,605
Impairment
– 5,163
TOTAL NET VALUE
5,443
DISPOSALS
ACQUISITIONS/
IMPAIRMENT
GAINS AND LOSSES
– 860
10,885
0
– 392
–860
10,493
0
OTHER
FINANCIAL ASSETS
AT 12/31/2008
126
20,756
– 1,798
– 7,353
–1,672
13,402
The annual change is principally the result of the formation of RATP Algiers and the acquisition of Tourexcel.
Available-for-sale financial assets primarily comprise non-consolidated investments which relate to the following:
NET VALUE
Alexa (no voting rights)
% OF INTEREST
1,820
14%
Irise
750
10%
Tram de Mulhouse
301
20%
312
< 10%
Société Billétique Monétique
Ratp Alger
3,206
Tourexcel
3,341
Solea
287
Logis Transports (note 3.2.1)
< 10%
33
88%
Uijeongbu Light
655
< 10%
Busan Gimhae
378
< 10%
Linea
826
33%
Other
1,493
TOTAL
13,402
The unaudited data at December 31, 2008 relating to Logis Transports includes:
• revenue: €47,019 thousand in 2008 compared with €36,023 thousand in 2007;
• balance sheet total = €458,286 thousand;
• net income: €5,349 thousand.
19. OTHER FINANCIAL ASSETS
19.1 Other non-current financial assets
NET VALUE N-1
ACQUISITIONS
12/31/2007
DECREASES
DIFFERENCES
OTHER
NET VALUE N
Loans
47,159
1,201
– 1,924
0
3,058
49,494
Deposits and guarantees
17,625
15,642
– 697
0
– 201
32,370
Other
Total net value
Impairment
TOTAL NET VALUE
3,252
2,028
105
–1
– 775
4,609
68,036
18,871
–2,516
–1
2,083
86,472
–1
2,083
86,016
– 426
– 31
0
67,610
18,840
–2,516
– 457
45
NET VALUE N-1
ACQUISITIONS
12/31/2008
DECREASES
DIFFERENCES
OTHER
NET VALUE N
Loans
49,494
3,074
– 2,599
0
– 2,689
47,280
32,370
2,675
– 1,519
8
1,565
35,099
Other
Total net value
4,609
– 15,900
14,250
0
– 17
2,942
86,473
–10,151
10,133
8
–1,141
85,320
–10,151
9,868
8
–1,141
84,599
Impairment
– 457
TOTAL NET VALUE
– 265
86,017
– 721
The loans mainly correspond to the housing loans granted by RATP to inter-professional housing committees (CIL).
19.2 Other current financial assets
12/31/2007
FINANCIAL ASSETS
AT 01/01/2007
Total gross value
Impairment
TOTAL NET VALUE
CHANGE IN
FAIR VALUE
7,875
127
0
8,002
0
ACQUISITIONS/
IMPAIRMENT
GAINS AND LOSSES
OTHER
FINANCIAL ASSETS
AT 12/31/2007
402
– 26
350
8,600
402
–26
350
8,727
127
12/31/2008
FINANCIAL ASSETS
AT 01/01/2008
Total gross value
Impairment
TOTAL NET VALUE
CHANGE IN
FAIR VALUE
8,600
– 176
1,196
127
0
– 127
8,727
–176
1,069
19.3 Fair value of financial instruments measured
at cost
In 2006, RATP transferred receivables amounting to €73,709 thousand
from low cost housing management companies to a bank. RATP
received a loan for the same amount, which it recorded as a liability.
RATP still records the receivables transferred under assets as it retains
substantially all of the risks relating to the receivables (credit risk).
The liability is written down at the same rate as the receivables, when
repayments are made by the housing management companies.
The fair value of the housing loans, recognized at amortized cost,
and transferred, is as follows:
HOUSING LOANS
12/31/2008
12/31/2007
Fair value
56,765
51,816
Amortized cost
48,110
47,635
Difference
– 8,655
– 4,181
46
ACQUISITIONS/
IMPAIRMENT
GAINS AND LOSSES
0
OTHER
– 1,311
FINANCIAL ASSETS
AT 12/31/2008
8,309
0
0
–1,311
8,309
19.4 Cash flow hedges
The cash flow hedges in place as at December 31, 2008 comprised:
• either fixed to Euribor swaps: RATP pays a fixed rate and receives
a Euribor rate on its existing floating rate debt, or on high probability
fixed rate debt. As the sensitivity of the swaps is similar to the debt
they back, their impact on profit and loss is not material;
• or currency swaps: the cash flows paid on borrowings in one currency
are perfectly hedged by the currency swaps, so that changes
in the exchange rate have no effect on profit and loss.
20. INVENTORIES
20.1 Details of inventories by type
12/31/2008
GROSS VALUE
Raw materials and supplies
171,632
Other supplies
PROVISION
FOR IMPAIRMENT
– 30,229
12/31/2007
NET VALUE
GROSS VALUE
141,403
157,616
131
288
131
Work-in-progress
3,904
Merchandise
Finished goods
TOTAL INVENTORIES
– 30,006
NET VALUE
127,610
288
3,739
4,190
123
123
138
0
0
45
– 15
30
145,397
162,276
–30,021
132,255
175,790
– 165
PROVISION
FOR IMPAIRMENT
–30,394
0
4,190
138
20.2 Changes in inventory impairment
12/31/2007
ADDITION
REVERSALS
– 30,006
– 2,755
2,532
0
– 15
– 150
0
0
–30,021
–2,905
2,532
0
Provisions for inventories
Provisions for work in progress
TOTAL
ADJUSTMENTS
OTHER
12/31/2008
– 30,229
– 165
0
–30,394
These provisions are accounted for in accordance with the method set out in note 3.11.
21. TRADE RECEIVABLES AND OTHER ACCOUNTS RECEIVABLE
12/31/2008
12/31/2007
Trade receivables
208,805
201,656
Write-downs
– 25,076
– 24,794
183,729
176,862
2,294
1,633
Trade receivables, net
Advances and down payments
Prepaid expenses
15,217
9,137
198,878
233,804
Other operating receivables
137,116
115,136
Allowance for uncollectibles
– 7,198
– 4,822
Other debtors
346,308
354,887
TOTAL ACCOUNTS RECEIVABLE AND OTHER
530,037
531,749
State and local authority receivables
Other receivables
Receivables, net at beginning of year
Write-downs
Unused reversals
Reversals
RECEIVABLES, NET AT YEAR END
12/31/2008
12/31/2007
– 24,794
– 20,491
– 2,954
– 6,195
1
– 237
2,671
2,129
–25,076
–24,794
All accounts receivable are due within one year.
47
22. CASH AND CASH EQUIVALENTS
12/31/2008
12/31/2007
200,400
303,449
94,051
78,103
294,451
381,552
12/31/2008
12/31/2007
294,451
381,552
Marketable securities
Cash
TOTAL
Total cash and cash equivalents presented in the cash flow statement, comprised the following:
Cash and cash equivalents (balance sheet)
Other cash
– 13
679
Short-term bank loans
– 88,872
– 47,432
Closing cash and cash equivalents (CFS)
205,566
334,799
23. RETAINED EARNINGS
REINVESTMENT
RESERVES
Balance at January 1, 2007
– 203
ACTUARIAL GAINS
AND LOSSES
– 5,833
FAIR VALUE
RESERVES
–5
HEDGING
RESERVES
– 5,694
Profit appropriation
OTHER
RESERVES
TOTAL
RESERVES
1,272,102
1,260,367
49,399
49,399
Sale of fixed assets
Currency translation adjustments
0
– 1,984
Change in actuarial gains and losses
– 1,984
35,149
35,149
Change in fair value of derivatives and hedges
24,954
Other fair value changes
– 69
– 69
Effect of change in method
Other changes
BALANCE AT DECEMBER 31, 2007
232
0
548
– 1,955
29,316
474
REINVESTMENT
RESERVES
Balance at January 1, 2008
– 1,955
ACTUARIAL GAINS
AND LOSSES
29,316
FAIR VALUE
RESERVES
474
0
0
– 441
339
19,260
1,321,060
1,368,155
HEDGING
RESERVES
OTHER
RESERVES
TOTAL
RESERVES
19,260
1,321,060
1,368,155
112,144
112,144
Profit appropriation
Currency translation adjustment
– 5,117
Change in actuarial gains and losses
– 5,117
– 23,860
– 24,068
Change in fair value of derivatives and hedges
– 53,534
Other fair value changes
– 205
– 22
– 7,072
5,456
247
Reserves for reinvestment and redeployment amounted to €225,078 thousand (note 3.15).
48
– 53,534
– 205
Other changes
DECEMBER 31, 2008
24,954
– 34,274
– 1,086
– 1,108
1,432,118
1,396,476
24. STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY
Equity at January 1, 2007
CAPITAL
STOCK
RESERVE
ASSETS
MADE
AVAILABLE
283,367
250,701
CURRENCY
ACTUARIAL
TRANSLATION GAINS AND
RESERVES
LOSSES
–203
–5,833
FAIR VALUE
RESERVES
HEDGING
RESERVES
OTHER
RESERVES
–5
–5,694
1,272,102
Net income appropriation
NET
INCOME
49,181
Net income for the period
GROUP
EQUITY
49,181 1,843,616
MINORITY
INTERESTS
TOTAL
EQUITY
11,794
1,855,410
– 49,181
0
0
0
112,142
112,142
1,936
114,078
Changes in scope and
increased minority
interests in subsidiaries
0
4,324
4,324
Minority interests in
subsidiaries’ dividends
0
– 727
– 727
– 1,752
– 100
– 1,852
Currency translation
adjustments
– 1,752
Actuarial gains and losses
35,149
Fair value adjustment
480
24,954
35,149
35,149
25,434
25,434
0
0
Changes in accounting
method
Other changes
– 223
0
1,321,060
112,142
OTHER
RESERVES
NET
INCOME
– 223 – 1,724
– 1,947
EQUITY AT
DECEMBER 31, 2007
Equity at January 1, 2008
283,367
250,701
CAPITAL
STOCK
RESERVE
ASSETS
MADE
AVAILABLE
283,367
250,701
–1,955
29,316
CURRENCY
ACTUARIAL
TRANSLATION GAINS AND
RESERVES
LOSSES
–1,955
29,316
475
FAIR VALUE
RESERVES
475
19,260
HEDGING
RESERVES
19,260
Net income appropriation
1,321,060
2,014,366
15,503
2,029,869
GROUP
EQUITY
MINORITY
INTERESTS
TOTAL
EQUITY
15,503
2,029,869
112,143 2,014,366
112,143 – 112,143
0
0
0
141,347
141,347
1,681
143,028
Changes in scope and
increased minority
interests in subsidiaries
0
921
921
Minority interests in
subsidiaries’ dividends
0 – 1,273
– 1,273
Net income for the period
Currency translation
adjustments
– 5,117
0
0
– 23,860
Fair value adjustment
– 228
– 53,534
Changes in accounting
method
Other changes
EQUITY AT
DECEMBER 31, 2008
– 1,085
283,367
250,701
–7,072
5,456
247
–34,274
1,432,118
– 5,117
– 291
– 5,408
– 23,860
5
– 23,808
– 53,762
– 72
– 53,834
0
2
2
– 1,085
456
– 629
141,347 2,071,890
16,980
2,088 866
0
49
25. PROVISIONS FOR EMPLOYEE BENEFITS
Provisions for employee benefits consist of retirement benefits and other long term benefits.
Provisions for retirement benefits
12/31/2008
12/31/2007
210,074
201,988
Provisions for death indemnities for retirees
24,200
34,172
Provisions for death indemnities for employees in service
12,383
12,035
Provisions for early retirement benefits
17,584
11,577
Provisions for contribution to current and future retirees' corporate savings plan
37,283
33,467
Provisions for work-related accident and disability pensions
122,368
115,579
423,892
408,818
Provisions for phased retirement
15,124
22,628
Provisions for seniority bonuses
17,981
18,126
6,242
6,819
Provisions for unemployment
12,934
11,301
Provisions for work-related accident and disability pensions
15,624
15,043
Total post-retirement benefits
Provisons for long-term sick leave
Provision for transitional period pension scheme
3,590
3,610
71,495
77,527
495,387
486,345
Total long-term employee benefits
TOTAL
25.1 Retirement benefits
Defined benefit plans
Retirement benefits comprise the following:
• termination benefits;
• death indemnities for retirees;
• death indemnities for current employees;
• early retirement benefits (CAA);
• contribution to corporate savings plan for current and future retirees;
• provisions for work-related accidents and disability pensions.
INDEMNITY
ALLOCATION
WORK-RELATED
ACCIDENT AND
DISABILITY
ALLOWANCE
EARLY
RETIREMENT
SAVINGS
SCHEME
CONTRIBUTION
TOTAL
POST-EMPLOYMENT
BENEFITS
12,613
42,406
133,981
15,004
34,265
447,287
1,007
795
–
8,286
496
1,721
5,072
Actuarial gains (losses)
– 13,549
– 873
– 10,012
– 16,304
Benefits paid
– 15,275
– 1,207
– 738
– 7,169
–
–
–
201,988
12,035
34,172
Obligation at January 1, 2007
Service cost
Discount costs
Past service costs
Net liability recognized
at December 31, 2007
Obligation net of plan assets
Unrecognized past service costs
OBLIGATION
AT DECEMBER 31, 2007
50
RETIREMENT
INDEMNITIES
DEATH
INDEMNITY
(EMPLOYEES
IN SERVICE)
209,018
13,508
15,310
1,267
16,842
4,894
528
– 35,316
– 8,321
– 2,593
– 35,303
–
115,579
11,577
33,467
408,818
0
–
–
–
–
–
–
23,923
–
–
–
–
–
23,923
225,911
12,035
34,172
115,579
11,577
33,467
432,741
RETIREMENT
INDEMNITIES
DEATH
INDEMNITY
(EMPLOYEES
IN SERVICE)
INDEMNITY
ALLOCATION
WORK-RELATED
ACCIDENT AND
DISABILITY
ALLOWANCE
EARLY
RETIREMENT
SAVINGS
SCHEME
CONTRIBUTION
TOTAL
POST-EMPLOYMENT
BENEFITS
11,577
33,467
408,818
201,988
12,035
34,172
115,579
Service cost
12,728
993
632
–
Discount costs
10,845
621
1,718
5,437
1,966
20,587
1,719
– 653
– 2,164
8,226
10,969
5,640
23,737
– 18,605
– 613
– 431
– 6,873
– 4,962
– 3,790
– 35,274
1,399
–
–
1,399
– 9,727
– 9,727
Actuarial gains (losses)
Benefits paid
Past service costses
End of commitment
NET LIABILITY RECOGNIZED
210,074
12,383
–
–
–
–
–
–
22,524
–
–
–
–
–
22,524
232,598
12,383
24,200
122,368
17,584
37,283
446,416
– 23,914
– 609
– 410
– 7,345
– 3,516
– 4,000
– 39,794
EARLY
RETIREMENT
EARLY
RETIREMENT
TOTAL
POST-EMPLOYMENT
BENEFITS
5,640
23,737
Obligation net of plan assets
Unrecognized past service costs
Obligation
at December 31, 2008
Payments to defined benefit
plans in 2009
RETIREMENT
INDEMNITIES
Actuarial gains (losses
Past actuarial gains and losses
Hypothetical actuarial gains and losses
1,719
– 653
– 2,164
8,226
10,969
4,620
– 403
30
8,798
10,969
– 2,901
– 250
– 2,194
– 572
–
12/31/2007
Discount rate
5.25%
5.00%
Inflation rate
2.00%
2.00%
Salary increase rate
3.60%
3.60%
TGH 05/TGF 05
TGH 05/TGF 05
55.6 years
55.6 years
0.00%
0.00%
Turnover rate
A decrease of 0.25 base points would have had an impact
of €9,271 thousand on aggregate post-retirement obligations.
Description of the various retirement benefits:
Termination benefits
Employees have the right to RATP retirement benefits, unless a more
favourable scheme is in place. The amount of the benefit is based
on the length of time the employee has been employed by the Company.
RATP pays retirement benefits to all its employees that fulfil these
conditions. They are calculated on the basis of a gross monthly fee
and a coefficient to reflect the employee’s position in the hierarchy
at the retirement date. The coefficient reflects the number of annuities
vested at the retirement date and is set by current employment
agreements. The annuities are determined based on length of service.
Average length of service is seventeen years.
WORK-RELATED
ACCIDENT AND
DISABILITY
ALLOWANCE
17,584
INDEMNITY
ALLOCATION
12/31/2008
Retirement age
122,368
DEATH
INDEMNITY
(EMPLOYEES
IN SERVICE)
The main actuarial assumptions are as follows:
Mortality table
24,200
14,353
37,283
423,892
13,045
5,640
– 277
In 2007, RATP changed the methods used to calculate the indemnity
for vested and future rights. The impact on the past service cost is spread
over the remaining vesting period. It amounted to €22,524 thousand.
Death indemnities for retirees
RATP pays death indemnities to retirees who have vested rights
in a seniority-based retirement or pension scheme. The amount
of the indemnity is calculated at the time of death, at three times
the monthly pension payment. The obligation is measured based
on historical data.
On February 8, 2008, the Board of Directors opted to change
the arrangements for allocating death indemnities to its retirees.
The Board limited the allocation to those who had vested pension
rights prior to January 1, 2009. Consequently, the obligation has been
reduced for future retirees as of January 1, 2009. The impact
of cancelling the indemnities was €9,727 thousand, which was
immediately recognized in income for the period.
Death indemnities for current employees
As for the State social security scheme, RATP’s social security system
provides life insurance coverage. The purpose of life insurance is to
guarantee the payment of a “death indemnity” when a person covered
by the policy dies. The amount is equal to twelve months’ salary
of the employee at the time of death. The purpose of the indemnity
is to compensate the employee’s family for the loss of revenue from
the employees’ professional income.
51
Early retirement
Work related accident and disability allowance
Early retirement is granted to employees who request it, depending
on their age.
RATP does not contribute to the State scheme for work-related
accidents and disability, as it makes the associated indemnity
payments itself.
Corporate savings plan for current and future retirees
The corporate savings plan is an optional collective savings scheme
enabling employees to build a portfolio of investments, with contributions
from the Company. RATP offers all its current employees who have
worked for the Company for at least three months (unless they
are working for the Company but are not on the company’s payroll)
the opportunity to join the savings plan. Employees make voluntary
payments, which are temporarily blocked and not taxed.
The company’s retirees may also participate in the corporate savings
plan after they retire.
Employees who are victims of work-related accidents or illnesses,
which result in permanent partial incapacity to work, may request
the payment of capital or an annual allowance for the rest of their
lives. The committee on work related accidents and illnesses decides
whether the victim is eligible and determines the amount
of the allowance. These benefits are paid by the pension fund.
The allowances are paid until the death of the employee.
25.2 Aggregate number of employees
Other long-term benefits comprise the following:
• work related accident and illnesses;
• long-service medals (seniority bonuses);
• phased retirement;
• unemployment benefits;
• long-term sick benefits.
SENIORITY
BONUSES
Cost of services and discount costs
18,126
WORK-RELATED
ACCIDENT AND
DISABILITY
ALLOWANCE
15,043
PHASED
RETIREMENT
22,629
UNEMPLOYMENT
BENEFITS
LONG-TERM
ILLNESS
TRANSITIONAL
MEASURES
TOTAL
LONG-TERM
BENEFITS
11,301
6,819
3,610
77,528
2,169
643
1,362
8,079
–
12,253
– 1,786
– 2,132
– 8,261
– 7,023
– 20
– 19,222
– 528
2,068
– 605
NET LIABILITY RECOGNIZED
17,981
15,622
15,125
12,357
6,819
3,590
71,494
Value at December 31, 2008
17,981
15,622
15,125
12,357
6,819
3,590
71,494
Payments to defined benefit
plans in 2009
– 1,303
– 2,272
– 6,494
– 7,000
– 600
– 1,000
– 18669
Benefits paid
935
The main actuarial assumptions are as follows:
12/31/2008
12/31/2007
Discount rate
5.25%
5.00
Inflation rate
2.00%
2.00
Salary increase rate
Mortality table
Retirement age
3.60%
3.60
TGH 05/TGF05
TGH 05/TGF05
55.6 years
55.6 years
0,00%
0,00
Turnover rate
A decrease in the discount rate of 0.25 base points would have had an impact of €704 thousand on aggregate long-term obligations.
Description of post-retirement benefits
Work-related accident and disability pensions
The allowances and indemnities for work-related accidents and illnesses paid to employees in post are accounted for as long-term benefits.
The portion relating to retirees is accounted for under post-retirement benefits (see description of the allowances in paragraph 25.1).
Seniority bonuses
After a number of years’ service, employees receive seniority bonuses and additional holidays.
52
Phased retirement
Long-term sick-leave
This system enables employees who so wish to opt for part time
employment remunerated at 70% for those under 55 years of age
and at 75% for employees aged 55 and upwards.
Employees with long and costly illnesses are granted sick leave to
enable them to follow the medical treatment required. Although their
employment contract is suspended, part or all of their salary is paid,
subject to certain conditions.
Unemployment benefits
As for the State unemployment benefit fund, RATP guarantees
its employees whose employment contract has reached termination,
a replacement revenue entitled “unemployment benefit” for
the duration of which varies depending on the number of years
of affiliation and the age of the employment.
26. OTHER PROVISIONS
Non-current provisions
12/31/2007
ADDITION
PROVISION
USED
101,787
53,342
–10,314
Decommissioning costs(a)
65,205
Litigation(b)
16,598
10,468
UNUSED
PROVISIONS
0
CHANGE IN
RECLASSIFICATION
SCOPE AND
EXCHANGE RATE
–10,422
134,393
– 408
– 10,823
53,974
48,786
– 2,431
– 153
62,800
– 5,442
– 1,231
– 10,580
– 6,785
Losses on long-term contracts
Other expenses
Other contingencies(c)
Current provisions
Decommissioning costs(a)
(b)
Litigation
0
9,516
9,998
– 6,244
55,869
26,934
–20,555
11,134
24,404
10,417
72,004
14,320
182
10,823
25,325
8,935
4,198
– 3,553
312
9,892
6,778
18
– 2,198
10,479
15,077
25,836
22,536
– 14,804
– 661
– 11,197
21,710
157,656
80,276
–30,868
–661
–5
206,397
–661
Losses on long-term contracts (current portion)
Other expenses
Other contingencies(c)
TOTAL PROVISIONS
12/31/2008
0
(a) Provisions for decommissioning railway rolling stock are recorded with an offsetting entry under components of property, plant and equipment. They are amortized over
the useful lives of the trains.
(b) Provisions for litigation concern the provisions for disputes and legal proceedings of a commercial nature or those instigated by employees involving asbestos-related illnesses
contracted at work (note 32.3).
(c) Provisions for other contingencies comprise RATP’s obligation to insure accidents on its networks (basis: cases already declared).
No provisions were recorded for the effect of discounting, as it was not material.
53
27. LOANS AND BORROWINGS
27.1 Breakdown of current and non-current loans and borrowings
Bond issues
Change in fair value of bonds
12/31/2008
12/31/2007
3,337,023
2,848,517
– 1,875
– 5,347
Île-de-France loans
232,873
235,451
Corporate savings plan loans
132,730
100,482
Borrowing from credit institutions
107,441
102,883
27,778
26,449
4,432
5,573
11,848
2,812
3,852,250
3,316,820
457,711
782,395
Loans relating to finance leases
Deposits and guarantees received
Other loans and borrowings
Bank loans
Non-current loans and borrowings
Bond issues
19,544
18,404
139,936
130,318
Borrowing from credit institutions
6,617
8,578
1,401
852
146
149
330,836
401,218
70,259
59,648
Bank loans
88,872
47,432
Commercial paper
Accrued interest
27
Short term loans and borrowings
1,115,349
1,448,994
TOTAL
4,967,599
4,765,814
27.2 Measurement of net debt
The Group defines net debt as its aggregate loans and borrowings, less the accrued interest and the CA Lyon advance, and its cash, cash
equivalents and marketable securities classified as non-current available-for-sale financial assets, and the fair value of currency hedges on bonds.
As at December 31, 2008, Group net debt amounted to €4,464,216 thousand, which comprised the following:
12/31/2008
12/31/2007
4,967,599
4,765,814
Cash flow hedges
– 62,143
18,821
Accrued interest
– 70,848
– 58,597
CA Lyon advances and other
– 69,148
– 71,747
– 4,578
– 5,722
– 294,451
– 381,552
4,432
4,252
Change in hedged borrowings
Subsidiaries’ cash
Other reserves
GROUP NET DEBT
54
– 6,647
– 16,765
4,464,216
4,254,504
27.3 Maturities of loans and borrowings
2009
2010
2011
2012
2013
> 5 YEARS
– 1,030,000
Bond issues (euros)
– 457,347
– 450,000
– 500,000
–
– 450,000
Interest on bond issues (euros)
– 145,349
– 119,052
– 93,177
– 69,427
– 69,427
– 207,217
Cash flow cross currency swaps (euros)
Interest on cross currency swaps (euros)
Cash flows from derivatives
(excluding cross currency swaps)
Interest on loans
Interest on loans
– 849,417
– 33,478
– 35,991
– 35,991
– 35,991
– 35,991
– 131,145
14
1,095
1,017
962
968
6,773
– 19,543
– 20,455
– 20,786
– 18,983
– 18,271
– 187,607
– 6,721
– 6,216
– 5,688
– 5,149
– 4,714
– 30,691
– 139,936
– 28,871
– 32,218
– 30,241
– 27,750
–
– 13,186
– 9,526
– 7,216
– 4,639
– 2,220
Bank loans
8,018
43,687
91,532
– 832
– 890
– 952
– 1,017
– 1,087
– 20,797
Interest on loans relating to finance leases
– 882
– 606
– 644
– 680
– 675
– 6,655
146
4,431
–73,633
–609,167
–2,456,756
Commercial paper
Post-calculated interest
Bank loans
TOTAL LOANS AND BORROWINGS
– 330,836
–
– 1,504
– 71,540
– 660
– 88,872
–
–1,310,012
–663,008
2009
Bond issues (Swiss francs)
Interest on bond issues (Swiss francs)
Interest on cross currency swap (Swiss francs)
2010
– 2,262
–649,799
2011
2012
2013
> 5 YEARS
–
–
–
–
–
– 1,360,000
– 36,669
– 39,481
– 39,481
– 39,481
– 39,481
– 143,087
36,675
39,491
39,491
39,491
39,491
143,117
Cash flow cross currency swap (Swiss francs)
–
–
–
–
–
1,360,000
TOTAL PAYMENTS IN THOUSANDS
OF SWISS FRANCS
6
10
10
10
10
30
The breakdown by main currency and type of interest rate is presented in note 30.
27.4 Fair value of financial liabilities measured at cost
12/31/2008
FAIR VALUE
Bond issues
12/31/2007
COST
FAIR VALUE
3,973,395
3,794,724
262,973
Bank loans
3,630,912
252,417
238,366
253,855
169,345
272,666
227,686
230,800
121,703
114,058
111,461
111,461
29,179
29,179
27,301
27,301
4,578
4,578
5,722
5,722
330,836
330,836
401,218
401,218
Change in fair value of bonds
Commercial paper
COST
3,020,401
– 1,875
– 5,347
3,634
11,289
3,863
3,863
Accrued interest
70,828
70,828
58,597
58,597
Bank loans
88,872
88,872
47,432
47,432
27
27
5,055,370
4,967,599
4,142,047
4,765,814
Accrued interest
TOTAL LOANS AND BORROWINGS
55
Method used to determine the fair value of non-derivative financial
liabilities:
28. TRADE AND OTHER PAYABLES
12/31/2008
12/31/2007
Trade payables
237,951
219,358
For the loans from the Île-de-France region and corporate savings plan,
fair value corresponds to the value of future cash flows discounted
at the market interest rate at year end.
Payables on fixed assets
324,283
248,800
Accrued tax and social security payables
413,310
549,568
6,470
16,582
Interest rate used to determine fair value
Deferred income
The interest rates used to discount future cash flows are determined
based on Euribor swap rates.
Other payables
For the bond issues, fair value corresponds to the market value
of the bonds issued.
AMORTIZED COST
AT 12/31/2008
AMORTIZED COST
AT 12/31/2007
0
788,715
– 788,715
RATP_2009
457,709
458,123
– 414
RATP_2010
448,721
448,070
651
RATP_2011
501,947
502,733
– 786
RATP_2013
445,371
444,529
842
RATP_2014
329,487
329,415
72
RATP_2035
50,000
50,000
0
11,401
RATP_2014 CHF
110,924
99,523
RATP_2015 CHF
154,510
138,617
RATP_2016 CHF
134,599
RATP_2017 CHF
201,889
15,893
134,599
181,173
20,716
RATP_2017 CHF B
101,188
101,188
RATP_2018
646,832
646,832
211,547
189,812
21,735
TOTAL
3,794,724
3,630,711
164,014
IDF LOAN
AMORTIZED COST
AT 12/31/2008
AMORTIZED COST
AT 12/31/2007
TOTAL
HOUSING LOANS
TOTAL
EMPLOYEE PROFIT
SHARING
TOTAL
56
37,730
111,653
103,096
1,144,730
1,175,133
CHANGE
RATP_2008
RATP_2019 CHF
TOTAL
51,063
All trade payables are due within one year.
Change in amortized cost
BOND ISSUE
Other operating payables
252,417
AMORTIZED COST
AT 12/31/2008
48,110
AMORTIZED COST
AT 12/31/2008
272,666
253,858
AMORTIZED COST
AT 12/31/2007
47,635
AMORTIZED COST
AT 12/31/2007
101,785
CHANGE
–1,441
CHANGE
475
CHANGE
170,881
29. FINANCIAL RISK MANAGEMENT
Management of interest rate risk
Derivative instrument transactions mainly concern hedges set up
to manage the exposure to interest rate risk on debt or the investment
portfolio.
Interest rate risk on borrowings and investments is essentially managed
by using swaps and options to modulate the fixed and floating rate
portion of the liability based on changes in interest rates.
The modulation is obtained by implementing or cancelling interest
rate swaps and options.
The “stop loss” and “take profit” trigger are managed by the finance
department and additional limits are imposed on operations classified
as trading. The volatility of gains and losses on mark-to-market interest
derivatives is well managed.
Foreign currency hedges
RATP issues loans in foreign currencies. The resulting exposure
to exchange rate risk is systematically hedged by using currency swaps.
The Systra group sells services in USD and GBP and pays interest
in euros. Systra’s revenue and operating margin are denominated
and calculated in euros.
The Systra group use global currency hedges to cover the exposure
to unfavourable changes in the EUR/USD and EUR/GBP exchange
rates, which could have a material impact on its operating margin.
Exposure to risk of commodity price increases
No hedges were set up for commodities in 2008.
Credit risk
Credit risk is the risk of financial loss for the Group if a customer
or counterparty to a financial instrument defaults on their contract
commitments. The risk is limited as the Group’s main customers
are local governmental authorities.
Liquidity risk
Liquidity risk is the risk the Group may have difficulty repaying its debt
and nating obligations when they fall due. To the greatest extent
possible, the Group ensures that it has sufficient available or accessible
cash to cover its liabilities when they fall due, under normal or “tight”
conditions, without incurring unacceptable losses.
Interest payments on bonds amounted to €189 million in 2008:
a 1% increase in interest rates on variable rate debt would increase
interest expense by approximately €0.5 million, as a result of the fair
value adjustment of –€3 million (mark-to-market) of derivatives
(FVH and Trading) and the impact on equity of +€37 million due
to the mark-to-market adjustment of cash flow hedge derivatives.
Effect on hedge effectiveness
Forward-looking tests are used to simulate hedge effectiveness
in the event of major changes in interest rates (stress scenarios).
Hedges are only effective if, in all the scenarios tested, the hedge
remains within the limits of 80% –125%. In the event of a change
of +/–1% in interest rates, all the hedges remain effective.
29.1 Sensitivity
Effect on interest
Borrowings (bonds, corporate savings plan, Île-de-France) are now at
82% fixed rate, which means they have very little exposure to changes
in interest rates, as shown in the following tables:
TOTAL UNHEDGED DEBT
Debt in millions
foreign currencies
Variable rate
12/31/2008
12/31/2007
CHF 1360
CHF 1010
0%
0%
Fixed rate
100%
100%
Debt in millions of euros
3,570
3,568
Variable rate
16%
15%
Fixed rate
84%
85%
4,419
4,198
Fixed rate
13%
13%
Variable rate
87%
87%
TOTAL IN MILLIONS OF EUROS
TOTAL HEDGED DEBT
Total nominal value of debt
Fixed rate bonds
12/31/2008
12/31/2007
4,419
4,198
3,606
3,355
Variable rate loan
813
843
Fixed for floating swaps
248
296
of which capped variable rate
198
246
82%
80%
% FIXED RATE DEBT
57
30. DERIVATIVE FINANCIAL INSTRUMENTS
30.1 Maturity of derivative instruments (maturity, notional amount, currency)
As at December 31, 2007
CLASSIFICATION
CFH
FVH
MATURITY OF NOTIONAL AMOUNT
TRADING
< 1 YEAR
1 TO 5 YEARS
TOTAL
> 5 YEARS
Cross currency swap
629,365
629,365
TOTAL CURRENCY TRANSLATION RISK
629,365
629,365
Interest rate risk
50,000
98,000
50,000
98,000
148,000
98,000
98,000
Other swaps
Fixed
Pre-hedge
98,000
650,000
650,000
TOTAL SWAPS
650,000
896,000
Caps
148,000
98,000
148,000
Floor
98,000
50,000
98,000
98,000
Swaptions
50,000
50,000
50,000
Other shares
0
TOTAL SHARES
TOTAL INTEREST RATE RISK
296,000
1,192,000
Commodity hedges
Swaps
Vanilla
0T
0T
0T
TOTAL COMMODITY RISK
0T
Short-term debt
Interest rate risk
Floating swaps
Eonia rate
0
0
0
0
Other commitments
Interest rate risk
Floating swaps
Lease
Floating swaps
Lease contract
22,471
22,471
26,354
22,471
26,354
26,354
48,825
As at December 31, 2008
TOTAL
CLASSIFICATION
CFH
FVH
MATURITY OF NOTIONAL AMOUNT
TRADING
< 1 YEAR
1 TO 5 YEARS
> 5 YEARS
Cross currency swap
849,417
849,417
849,417
Interest rate risk hedges
Short-term fixed for floating swaps
Long-term fixed for floating swaps
139,338
50,000
Long-term fixed for capped floating swaps
198,000
Floating for fixed swaps
575,577
139,338
139,338
198,000
50,000
148,000
100,000
100,000
475,577
50,000
475,577
50,000
Commodity hedges
Swaps
Calls
Puts
Note: foreign exchange risk on debt issued in foreign currencies is systematically hedged with cross currency swaps. Instruments that do not qualify
for hedge accounting under IAS 39 (trading instruments) are nevertheless economic hedges.
58
30.2 Fair value of derivatives
12/31/2007
NON-CURRENT
ASSETS
CURRENT
ASSETS
TOTAL
ASSETS
NON-CURRENT
LIABILITIES
CURRENT
LIABILITIES
TOTAL
LIABILITIES
Cash flow hedge
11,436
3,795
15,231
21,358
5,702
27,060
Fair value hedge
0
1,204
1,204
6,104
172
6,276
3,381
3,381
5,658
5,658
11,436
8,380
19,816
27,462
11,532
38,994
CURRENT
LIABILITIES
Unhedged items
TOTAL
12/31/2008
NON-CURRENT
ASSETS
CURRENT
ASSETS
TOTAL
ASSETS
NON-CURRENT
LIABILITIES
Cash flow hedge
62,144
6,362
68,506
34,063
8,553
42,616
Fair value hedge
0
1,204
1,204
1,831
118
1,949
Unhedged items
0
2,449
2,449
0
6,777
6,777
62,144
10,015
72,159
35,894
15,448
51,342
TOTAL
TOTAL
LIABILITIES
The fair value of derivative financial instruments is based on quotes by banking counterparties. The Group ensures that these quotes are
reasonable by discounting estimated future cash flows, taking into account the terms and maturity of each instrument and using the market
interest rates that would apply to similar instruments at the valuation date.
30.3 Effect on balance sheet of fair value recognition of derivative instruments
Details on cash flow hedging instruments:
EXPECTED MATURITIES OF HEDGED ITEMS
Pre-hedging
EFFECT ON 2008 EARNINGS
Issue planned for 2009
Expected maturity: 2019
Recognized in earnings as coupons
are paid
Issues prior to 2009
Expected maturity: 2018
€687 thousand
Leasehold swaps I1 and I3
Leases for 2002-2027 and 2003-2028
Payment expected first day of each quarter
Leasehold swaps I2
Lease for 2002-2016
Payment expected at end of each quarter
–€304 thousand
31. GUARANTEES
31.1 Commitments given
12/31/2008
Guarantees
12/31/2007
RATP
OTHER
RESERVES
GROUP TOTAL
RATP
EPIC
OTHER
RESERVES
GROUP TOTAL
1,851,052
29,843
1,880,895
2,181,864
28,302
2,210,166
2,022
17,476
327,897
1,093
28,302
2,210,166
of which
– guarantees to not-for-profit entities and others
– employee benefits
– leasehold transactions
TOTAL
2,122
340,300
1,521,133
3,702,104
1,839,442
48,412
1,880,895
4,363,728
59
31.2 Commitments received
12/31/2008
Guarantees
Leasehold transactions
TOTAL
12/31/2007
RATP
OTHER
GROUP TOTAL
139,159
3,632
142,791
185,671
3,632
142 791
185 671
139,159
139,159
32. OFF-BALANCE SHEET COMMITMENTS
32.1 Capital expenditures
Capital expenditures contracted at year end but not recorded in the
financial statements amounted to €2,855 million as at December 31,
2008 compared with €2,811 million as at December 31, 2007.
RATP
OTHER
GROUP TOTAL
3,025
188,696
3,025
188,696
185,671
All risks arising from cases already declared or which have been
brought to court have been provisioned. Although it is not possible
to predict the financial impact of future litigation, RATP believes
that the provision of €2,500 thousand recorded in the balance sheet
as at December 31, 2008, is adequate and reflects the best estimate
of the financial risk borne by the Company (note 26).
32.2 Employee benefits
33. INFORMATION ON RELATED PARTIES
The past service cost relating to the change in actuarial calculations
relating to the retirement scheme amounted to €22,524
at December 31, 2008 and will be amortized from 2008.
33.1 Transactions with related parties
32.3 Contingent assets and liabilities
Asbestos
An internal study has been performed to investigate asbestos-related
illnesses among employees and assess the financial impact
of the Company.
60
As a state-owned industrial and commercial entity, RATP is fully
owned by the French state. Consequently, RATP is a related party
in the meaning of IAS 24 with all the companies controlled by
the French state. However, given that the objective of IAS 24 is to alert
on the terms and conditions of non-current transactions entered
into between the Group and related parties, the Group has excluded
from the scope of related parties, all ordinary transactions entered
into under market conditions.
Transactions with the State and public authorities
STIF contract resources (tariff compensation, quality of service rewards/penalties, etc.)
12/31/2008
12/31/2007
1,829,751
1,558,223
–
236,447
STIF standard contribution
Local council contribution to loss-making services
16,969
14,518
Investment grants called (State, STIF, RIF, other)
196,732
169,158
Île-de-France region loans contracted
16,061
11,235
Île-de-France region loans repaid
18,404
17,225
Government and local authority receivables
187,170
119,300
STIF receivables
99,100
176,237
Government and local authority borrowings
42,830
41,488
STIF borrowings
10,600
169,578
287,646
287,988
RIF loans and borrowings
Transactions with subsidiaries:
Transactions with fully consolidated companies are eliminated upon consolidation. Transactions with proportionately consolidated companies
(uneliminated portion) or equity accounted companies are not material and are ordinary practices for commercial or financial purposes within a group.
They are performed on an arm’s length basis under normal market conditions.
Other transactions with public sector companies:
This refers to ordinary transactions undertaken in normal market conditions.
33.2 Compensation of senior executives
The senior executives of RATP group are members of the Executive Board.
Short-term benefits excluding employer contributions (1)
12/31/2008
12/31/2007
1,276
1,223
(1) Including gross salaries, bonuses, profit sharing and benefits in kind.
61
34. GROUP COMPANIES
REGISTERED OFFICE ADDRESS
REFERENCE No.
%
%
METHOD
OF CONTROL OF INTEREST
% OF INTEREST
CHANGE
TRANSPORT DIVISION
RATP Développement
Orlyval Service (OVS)
SQY BUS
Société des Lignes
Touristiques (SLT)
Société d’Exploitation
des Lignes
Touristiques (SELT)
Société des Transports
du Bassin Chellois (STBC)
Autolinee Toscane
Bombela Operating
Company
Cars Giraux
Cité Bleue
CTVMI
TP2A
Equival SAS
Mobicité
FlexCité
FlexCité 77
FlexCité 91
FlexCité 93
FlexCité 94
Eurailco GmbH
Trans Regio
EM Services
Jacquemard et Cie
SCI Pimian
Giraux Eure-et-Loir
Giraux
Giraux Val-d’Oise
Tram di Firenze
Gest Spa
Société Financière
Groupe Perrier
Cars Perrier
SCI Perrier
54, quai de la Rapée, LAC A 318, 75599 Paris Cedex 12
Établissement de Wissous, chemin de Fresnes, 91320 Wissous
ZI Les Bruyères, 9, avenue Jean-Pierre-Timbaud,
78192 Trappes Cedex
389 795 006
380 041 962
100.00
100.00
95.41
94.46
FC
FC
387 950 322
100.00
85.54
FC
13, rue Auber, 75009 Paris
418 517 215
51.00
48.66
PC
% of interest
147-149, rue Saint-Honoré, 75001 Paris
418 176 053
25.00
23.84
NA
% of interest
9, place du Grand-Jardin, 77500 Chelles
Florence
22 Milkyway Limbro Business Park 2090
P.O Box 1115 Kelvin 2054 Afrique du Sud
48, boulevard du Maréchal-Juin, 78200 Mantes-la-Jolie
21, parc d’activités Francis-Combe, 95600 Cergy
2, impasse Sainte-Claire-Deville, 78200 Mantes-la-Jolie
6, rue des Biches, 74100 Ville-la-Grand
54, quai de la Rapée, 75599, Paris Cedex 12
54, quai de la Rapée, 75599, Paris Cedex 12
54, quai de la Rapée, LAC A 318, 75599 Paris Cedex 12
27, rue Ampère, 77400 Lagny-Sur-Marne
1, rue de Terre-Neuve, Bat H, 91967 Courtabœuf Cedex
8, allée Sainte-Anne, 93600 Aulnay-sous-Bois
Allée Jean-Baptiste-Preux, 94140 Alforville
Maybachstrasse- 6, 70469 Stuttgart
Markstrasse 19, Kaiserslautern
54, quai de la Rapée, 75599 Paris Cedex 12
32, rue Gay-Lussac, 27000 Evreux
4, allée des Vignes, 27000 Evreux
48, boulevard du Maréchal-Juin, Transports Services
78200 Mantes-la-Jolie
35, rue des Fossettes, 95650 Génicourt
Florence
Florence
78192 Trappes Cedex
78192 Trappes Cedex
78192 Trappes Cedex
415 290 832
15.00
100.00
14.31
95.41
NA
FC
51.00
100.00
100.00
100.00
100.00
50.00
100.00
100.00
100.00
100.00
100.00
100.00
50.00
50.00
100.00
100.00
100.00
100.00
48.66
95.41
50.00
95.41
48.66
47.71
95.41
48.66
48.66
48.66
48.66
48.66
47.71
35.83
85.87
95.41
95.41
95.41
FC
FC
PC
FC
FC
PC
FC
FC
FC
FC
FC
FC
PC
PC
FC
FC
FC
FC
B 410 219 034
B 438 352 007
100.00
100.00
24.90
100.00
95.41
95.41
23.76
48.66
FC
FC
NA
FC
350 302 147
100.00
95.41
FC
589 725 266
100.00
95.41
FC
429 490 550
100.00
95.41
FC
442 222 048
431 920 750
332 921 170
434 961 850
100.00
100.00
55.00
50.00
95.41
95.41
52.48
47.71
FC
FC
FC
FC
B 432 243 921
B 400 644 373
B 301 571 147
442 610 788
542 104 377
419 997 044
05266640480
00092220516
50.03
100.00
50.00
49.88
25.59
100.00
37.00
12.00
12.00
12.00
12.00
47.73
95.41
47.71
49.88
25.59
100.00
37.00
12.00
12.00
12.00
12.00
FC
FC
PC
NA
NA
FC
NA
NA
NA
NA
NA
384 061 958
387 949 530
50.00
50.00
50.00
35.87
PC
PC
489 087 593
100.00
100.00
FC
SCI 132
Av. du Général Leclerc
SCI Parc de la Sainte-Claire
SCI La Procession
SCI Sofitim
Timbus
ZA de la Demi-Lune, 7, rue des Frères-Montgolfier,
95420 Magny-en-Vexin
TVM
STIVO
L’Atrium, 6, place Abel-Gance, 92100 Boulogne-Billancourt
Groupe Transdev
L’Atrium, 6, place Abel-Gance, 92100 Boulogne-Billancourt
RATP International
54, quai de la Rapée LAC A 19, 75599 Paris Cedex 12
Alexa
Viale dei Mille 115, Florence
La Ferroviaria Italiana (LFI) Via Guido Monaco 37, 52100 Arezzo
LFI Services
Italie
TFT SPA
Italie
RFT SPA
Italie
B 599 801 388
B 481 933 687
B 438 472 185
444 714 380
453 974 354
442 325 460
450 710 207
505 352 195
507 609 956
499 590 933
480 200 393
HRB 24,127
HRB 5225
453 815 961
775 573 934
349 305 409
B 440 204 873
ENGINEERING DIVISION
Financière Systra
Groupe Systra
Xelis
62
5, avenue du Coq, 75009 Paris
5, avenue du Coq, 75009 Paris
Bâtiment Hautacam - 12, avenue du Val-de-Fontenay,
94120 Fontenay-sous-Bois
% of interest
% of interest
Newly-consolidated
Newly-consolidated
Newly-consolidated
Newly-consolidated
% of interest
REGISTERED OFFICE ADDRESS
REFERENCE No.
%
%
METHOD
OF CONTROL OF INTEREST
% OF INTEREST
CHANGE
ADVERTISING AND REAL ESTATE DIVISION
Commerce
Promo Métro
35, boulevard de Sébastopol, 75001 Paris
100.00
100.00
FC
Telécom
Telcité
1, avenue Montaigne, 93167 Noisy-le-Grand Cedex
411 759 962
100.00
100.00
FC
Naxos
1, avenue Montaigne, 93167 Noisy-le-Grand Cedex
420 511 990
100.00
100.00
FC
Real estate
SEDP
380 038 687
100.00
100.00
FC
SADM
380 962 902
100.00
100.00
FC
Société des Transports
du Val-d’Oise (TVO)
1, chemin du Clos-Saint-Paul, 95210 Saint-Gratien
314 388 950
35.00
33.39
NA
Deconsolidated
M’Dina Bus
10, avenue du 2-Mars, Casablanca, Maroc
133 511
20.00
19.08
NA
Deconsolidated
Deconsolidation
35. STATUTORY AUDIT FEES
Pursuant to AMF Instruction 206-10 of December 19, 2006 and the requirements instituted by article L. 820-3 of the French Financial Security act
(LSF), the fees charged for the audit of the consolidated and individual financial statements of the Group were as follows:
STATUTORY AUDIT FEES (IN THOUSANDS OF EUROS)
2008
2007
PricewaterhouseCoopers
313
288
KPMG
320
276
214
181
97
96
2008
2007
RATP
Fully-consolidated subsidiaries
KPMG
DIRECTLY-RELATED WORK/SERVICES (IN THOUSANDS OF EUROS)
RATP
KPMG
127
100
141
Fully-consolidated subsidiaries
163
KPMG
36. POST-BALANCE SHEET EVENTS
None.
63
Individual financial statements
Statutory auditor’s report on the financial statements page
66 /
Income statement page 68 /
Balance sheet page
Notes to the individual financial statements page
64
70 /
65 /
Individual financial statements 2008
Statutory auditors’ report
on the financial statements
Year ended December 31, 2008
Employee Benefits
In compliance with the assignment entrusted to us by the Minister
for the Economy, Finance and the Budget, we hereby report to you,
for the year ended December 31, 2008, on:
Note 3.13 to the financial statements describes the long-term
employee benefits provisioned in the balance sheet and the method
used to measure those obligations.
• the audit of the accompanying financial statements of RATP,
hereinafter referred to as “the Company”;
We examined the way in which the long-term employee benefits
had been identified, measured and accounted for. We reviewed
the assumptions and calculations made in order to validate
the provisions reported under liabilities on the balance sheet
at the beginning of the year and at year-end.
• the justification of our assessments;
• the specific verifications and information required by law.
The Board of Directors is responsible for the preparation of these
financial statements. Our role is to express an opinion on the financial
statements, based on our audit.
1. Opinion on the financial statements
We conducted our audit in accordance with the auditing standards
generally accepted in France. Those standards require that we plan
and perform our work to obtain reasonable assurance that the financial
statements are free from material misstatement. An audit involves
examining, on a test basis, evidence supporting the amounts and
disclosures in the annual financial statements. An audit also includes
assessing the accounting principles used and significant estimates
made by the management, as well as evaluating the overall presentation
of the financial statements. We believe that our audit has provided
us with sufficient relevant information on which to base our opinion.
In our opinion the financial statements give a fair and true view
of the Company’s financial position and assets and liabilities
as at December 31, 2008, and of the results of its operations
for the year then ended, in accordance with the accounting principles
generally accepted in France.
Note 2.1.2 describes the accounting treatment for property, plant
and equipment which are fully owned or made available for use by
the Company by the State or STIF. In accordance with our assessment
of the accounting policies implemented by your Company, we examined
the methods used to capitalize property, plant and equipment and
we ensured that the information provided in note 2.1.2 was appropriate.
Our assessments were an integral part of our audit of the financial
statements as a whole, and therefore contributed to the formation
of the opinion expressed in the first part of this report.
3. Specific verifications and information
We have also carried out the specific verifications required by law.
We have no matters to report regarding the fair presentation
and conformity with the financial statements of the information given
in the management report of the Board of Directors and in
the documents relating to the financial position and the financial
statements.
2. Basis of our assessments
Pursuant to the provisions of article L. 823-9 of the French
Commercial Code relating to the justification of our assessments,
we draw your attention to the following matters:
Paris-La Défense and Neuilly-sur-Seine, March 16, 2009
Salustro Reydel
Philippe Arnaud
Paul Onillon
65
Balance sheet
At December 31, 2008
12/31/2008
ACCUM. DEPRECIATION,
AMORTIZATION
AND PROVISIONS
12/31/2007
ASSETS
GROSS
INTANGIBLE ASSETS
465,346
230,692
234,654
197,745
96,554
6,298
90,256
91,292
2,626
989
1,637
1,714
366,166
223,406
142,760
104,738
19,113,629
9,223,723
9,889,905
9,544,190
390,710
6,159
384,551
384,402
– Buildings
8,215,821
3,305,246
4,910,575
4,721,241
– Technical plant, equipment and industrial tooling
4,278,671
2,814,473
1,464,198
1,441,739
– Transport equipment
4,547,972
2,945,374
1,602,598
1,622,547
– Research and development costs
– Lease rights
– Other
PROPERTY, PLANT AND EQUIPMENT
– Land
– Other
NET
NET
214,666
152,471
62,195
65,237
1,465,789
–
1,465,789
1,309,024
FINANCIAL ASSETS
474,003
20,249
453,754
462,051
– Investments and affiliates
259,345
4,165
255,180
254,802
2,420
–
2,420
6,638
– WIP, advances and down payments
– Receivables from other investments and affiliates
– Other portfolio investments
– Loans
– Other
–
–
–
–
93,558
261
93,297
95,723
118,680
15,823
102,857
104,888
NON-CURRENT ASSETS (I)
20,052,978
9,474,665
10,578,313
10,203,986
Inventories and work in progress
172,862
30,213
142,649
130,220
1,070
–
1,070
456
4,950,204
17,884
4,932,320
4,982,833
– Trade receivables and related accounts
124,940
11,019
113,921
114,831
– State and local authority receivables
264,263
–
264,263
282,443
Advances and prepayments to suppliers
ACCOUNTS RECEIVABLE
– Other
54,765
6,865
47,900
47,531
4,506,236
–
4,506,236
4,538,027
FINANCIAL ASSETS
209,934
–
209,934
309,447
184,565
–
184,565
281,781
– Receivables from leases
25,369
–
25,369
27,666
Prepaid expenses
54,933
–
54,933
62,463
5,389,003
48,097
5,340,906
5,485,419
10,022
–
10,022
9,244
8,896
–
8,896
6,917
533
–
533
1,171
25,461,432
9,522,761
15,938,670
15,706,737
CURRENT ASSETS (II)
Bond issuance costs (III)
Bond redemption premiums (IV)
Unrealized foreign exchange losses (V)
TOTAL ASSETS (I + II + III + IV + V)
66
EQUITY AND LIABILITIES
12/31/2008
12/31/2007
250,701
250,701
Revaluation surplus
231,140
231,140
Capital endowment
283,367
283,367
RESERVES
285,371
285,371
– Reserve from disposal of assets made available by the STIF and no longer used (redeployment)
184,419
184,419
– Reserve from disposal of assets made available by the State and no longer used
136
135
– Reserve from disposal of assets constructed by RATP and no longer used (reinvestment)
42,890
42,890
– General reserve
57,926
57,926
Retained earnings
946,209
862,544
Net income
124,995
83,665
2,527,300
2,433,137
441,016
451,423
5,090,101
4,881,350
Investment grants
Tax-related provisions
EQUITY (I)
Provisions for contingencies
116,541
58,073
Provisions for commitments
156,655
163,519
PROVISIONS FOR CONTINGENT LIABILITIES (II)
273,196
221,592
LOANS AND BORROWINGS
4,850,915
4,747,389
– Loan from Île-de-France region
285,646
287,988
3,995,784
3,872,689
– Borrowings from and liabilities to financial institutions (credit balance bank accounts)
152,032
112,714
– Other borrowings and loans
346,625
415,421
70,828
58,578
1,036
22,653
205,094
191,784
Taxes and social security contributions
417,129
550,773
Payables to suppliers of assets and related accounts
315,752
240,310
Other liabilities
99,045
107,594
Lease payables
4,575,867
4,618,627
– Bonds
– Accrued interest
Advances on orders in process
Prepaid income
LIABILITIES (III)
Unrealized foreign exchange gains (IV)
TOTAL EQUITY AND LIABILITIES (I + II + III + IV)
Net deb
(RATP indicator. Note 13c)
109,761
123,253
10,574,599
10,602,384
774
1,412
15,938,670
15,706,737
4,484,590
4,293,669
67
Income statement
At December 31, 2008
12/31/2008
12/31/2007
OPERATING INCOME
4,422,624
4,211,858
5,0%
Revenue from transport services (1)
3,815,773
3,404,927
12,1%
Standard contribution
% OF CHANGE
236,447
– 100,0%
Other operating income (1)
118,203
114,244
3,5%
Other income
379,157
346,139
9,5%
– Non-transport revenue (1)
133,604
133,012
0,4%
6,968
6,638
5,0%
– Decrease in stock of manufactured goods
– 1,069
1,065
NS
– Capitalized production
82,277
76,275
7,9%
– Provision reversals and costs transferred
89,650
88,822
0,9%
27
– 100,0%
– Sales of by-products (1)
– Operating subsidies
– Other
67,728
40,300
68,1%
109,491
110,101
– 0,6%
– Reversal of revaluation provisions
10,290
10,203
0,9%
– Portion of investment grants transferred to income
99,201
99,899
– 0,7%
Income used to offset depreciation expenses
OPERATING EXPENSES
4,063,502
3,912,855
3,9%
Cost of purchased goods and services
819,268
757,544
8,1%
Energy
189,967
160,512
18,4%
– Electricity
85,389
76,038
12,3%
– Fuel
91,670
73,158
25,3%
– Heating
12,908
11,316
14,1%
Cost of leased tracks
24,202
21,631
11,9%
– 13,0%
User rights payable to SNCF
19,992
22,987
Equipment, supplies and other external services
585,106
552,414
5,9%
– Equipment and supplies
177,101
160,525
10,3%
– Other external services
408,006
391,889
4,1%
Tax, duties and other payables
217,760
215,251
1,2%
Payroll costs
2,274,069
2,202,202
3,3%
– Wages and salaries
1,601,829
1,533,699
4,4%
659,871
647,981
1,8%
12,369
20,522
– 39,7%
Depreciation, amortization and provisions
719,489
693,259
3,8%
– Asset depreciation and amortization
613,546
607,085
1,1%
655
656
– 0,1%
– Payroll-related costs
– RATP employee benefit plan cost, net
– Asset provisions
– Current assets – provisions
7,501
5,961
25,8%
– Provisions for contingent liabilities
97,788
79,557
22,9%
Other expenses
32,915
44,600
– 26,2%
359,122
299,002
20,1%
OPERATING INCOME (I)
68
FINANCIAL INCOME
– From investments in subsidies and affiliated companies
– Other long-term investments and asset receivables
– Accrued interest and related income
– Provision reversals and operating expenses transferred
– Foreign currency translation gains
– Proceeds from disposal of marketable securities
12/31/2008
12/31/2007
% OF CHANGE
98,029
78,057
7,180
6,261
25,6%
14,7%
470
386
21,7%
82,154
63 509
29,4%
478
108
NS
2
566
– 99,7%
7,746
7,227
7,2%
–
–
10,3%
– Financial income (Athens)
FINANCIAL EXPENSES
304,224
275,782
– Accrued interest and related expenses
298,002
269,292
10,7%
5,806
6,104
– 4,9%
– Amortization and provisions
– Foreign currency translation losses
5
277
– 98,1%
410
110
NS
–206,195
–197,725
4,3%
152,927
101,278
51,0%
NON-RECURRING INCOME
14,995
26,146
– 42,6%
– From operating transactions
1,337
4,111
– 67,5%
333
440
– 24,2%
10,461
16,305
– 35,8%
136
639
– 78,7%
– Provision reversals and operating expenses transferred
2,728
4,652
– 41,4%
NON-RECURRING EXPENSES
9,538
11,739
– 18,8%
– From operating transactions
2,376
3,975
– 40,2%
– Other
6,351
7,708
– 17,6%
– Losses on disposal of marketable securities
FINANCIAL EXPENSE (II)
ORDINARY INCOME (I + II)
– From capital transactions
– From leases
– Other
– Amortization and provisions
810
57
NS
NON-RECURRING ITEMS
5,457
14,407
–62,1%
Employee Profit Sharing
33,389
32,019
4,3%
Income Tax
–
TOTAL INCOME
4,535,647
4,316,061
TOTAL EXPENSES
4,410,652
4,232,396
124,995
83,665
49,4%
4,074,547
21,411
3,658,820
42,625
11,4%
– 50,7%
NET INCOME
(1) Revenue
(2) Including management premium
69
NOTES TO THE INDIVIDUAL FINANCIAL STATEMENTS
At and for the year ended December 31, 2008. The individual financial statements are presented in thousands of euros.
1. SIGNIFICANT EVENTS OF THE PERIOD
Leasehold agreements
New agreement with the Île-de-France regional public transport
authority (STIF)
In 2008, three leasehold agreements were terminated prior to their expiry
date. The transaction generated a gain of €1.2 million corresponding
to the net present value of the outstanding lease payments.
On February 21, 2008, RATP and STIF entered into a new agreement,
setting forth the conditions governing the provision by RATP of public
passenger transport services in the Île-de-France region for the period
from 2008 to 2011. It is the third agreement entered into since the
relations between STIF and RATP were first set out contractually in 2000.
The agreement changed the previous arrangements relating to RATP
funding. RATP now receives funding in the form of:
• individual payments from STIF by type of expense, which are either
operational and related to public service obligations, or investment
and infrastructure expenses;
• amounts to cover expenses, which are clearly separate from those
relating to profit-sharing.
The profit-sharing system, which divides risks and gains between RATP
and STIF, is based on direct revenues generated, benchmarked against
contractual performance targets. The system also includes quality
of service indicators, with rewards and penalties earned or incurred
based on quality of service performance.
European regulation on public transport service obligations
The European regulation on public passenger transport services
by rail and by road was adopted on October 23, 2007 and will enter
into force on December 31, 2009, with a transitional period.
The purpose of the regulation is to define how competent authorities
may act in the field of public passenger transport, by laying down
the conditions governing the contracting of public services to operators
and the granting of compensation to public service operators
for the costs incurred.
The regulation limits the duration of public service contracts to
ten years for coach and bus services and fifteen years for passenger
transport services by rail or other track-based modes (extended by up
to 50% if the public service operator makes exceptional investments).
However, the regulation also includes specific provisions for contracts
entered into before the regulation’s effective date. Due to the specific
regulatory framework governing transport provision in the Île-de-France
region, a regulatory text will be required to implement these provisions.
Tax inspection
A tax inspection is currently under way for the period from 2004
to 2006. RATP recognized a provision in its 2008 financial statements
for tax, estimated on the basis of correspondence with the tax
authorities to date.
New bond issues
RATP issued bonds worth €870m during 2008:
• €550 million in May (maturing in 2018) with a 4.5% coupon;
• CHF200 million in July (maturing in 2016) with a 3.375% coupon;
• CHF150 million in October (maturing in 2017) with a 3.25% coupon;
• €100 million in November (increase in the 2018 bond issue with
a 4.5% coupon).
70
2. SIGNIFICANT ACCOUNTING POLICIES
RATP applies a purpose-made Chart of Accounts that was approved
by the interministerial order of March 21, 1985, and approved
by the French National Accounting Board (Conseil national de la
comptabilité). The Chart was prepared in accordance with the rules,
principles and framework governing the French national Chart
of Accounts.
It includes additional line items reflecting RATP’s reporting and
disclosure requirements and specific characteristics in terms of legal
form and financing.
2.1 Balance sheet
A detailed breakdown of non-current assets and the associated
depreciation and amortization schedules are provided in tables 5.1
and 5.2.
2.1.1 Intangible assets
• The research and development costs associated with assets that are
clearly separable, technically feasible and likely to generate future
economic benefits are capitalized if they meet the criteria set forth
in the generally accepted accounting principles. They are amortized
based on the useful life of the assets to which they relate. All other
research and development costs are expensed.
• Information systems acquired or developed by the company are
capitalized. They comprise the following components:
• development and configuration costs, which are amortized over five
to ten years, on the basis of the useful life of the system;
• software and equipment acquired to place the system in service,
which are amortized over a three-year period.
2.1.2 Property, plant and equipment
The Group’s property, plant and equipment comprises the assets made
available for use by RATP that are owned by the public authorities,
notably the Île-de-France public transport authority (STIF), the Group’s
fully-owned assets and assets held under finance leases.
The breakdown of real estate assets based on ownership is as follows:
• State: primarily the lines incorporated in the RER network;
• STIF: primarily Paris metro lines built before 1968, as well as
a number of buildings used by RATP for its business;
• RATP: all the other assets.
Ownership arrangements concerning the assets made available
to RATP by the State and STIF
RATP was formed by the act of March 21, 1948, which transferred
the rights of use of the assets and property conceded by the City
of Paris or Seine Department to the Paris Metropolitan Railway
Company and to the Paris Regional Public Transport Company
to RATP upon its formation.
The decree of June 4, 1975 provided for the real property allocated to
RATP operations to include the assets owned by the State, comprising
the public railway track required for the regional transport network,
assets owned by STIF (metro lines built before 1968) and the assets
acquired or built by RATP itself.
In accordance with its operating terms and conditions, RATP
is responsible for maintaining and replacing the property it uses.
The assets made available by the French State and STIF, without
transfer of ownership, are presented in RATP’S balance sheet under
the appropriate fixed asset accounts in order to provide a true economic
view of the assets under the Group’s management. However, RATP
does not have full rights to the assets as they are part of the public
transport domain.
The French Decentralization Act of August 2004 did not amend any
of the aspects regarding the ownership of these assets. An evaluation
is currently being performed in order to list the assets based on their
ownership.
The European Regulation of October 23, 2007 on public passenger
transport services imposes a limit on the duration of rights granted
to operators, although no precise expiry dates have yet been set
(note 1: Significant events and transactions). As of December 3, 2009,
the expiry dates of rights grants will be known and will be used
in the preparation of the financial statements of both RATP and RATP
group. Upon the award of public service contracts, the competent
transport authorities shall set out new provisions concerning
contract duration, financing arrangements, and disposal of assets
upon contract expiry.
Depreciation and impairment of fixed assets is calculated and
recognized in the financial statements on the basis of the provisions.
RATP is currently evaluating the accounting and financial impact
of the new provisions.
Pursuant to CRC Regulation no. 2004-06 of the French Accounting
Regulations Committee (Comité de la réglementation comptable),
the costs of dismantling railway rolling stock are provisioned to offset
the amount capitalized for the asset components, which are depreciated
over the useful lives of the trains.
In accordance with generally accepted accounting principles, annual
impairment testing is performed if there is an indication that an asset
may be impaired. The impairment test compares the carrying amount
of the asset to its present value, which is defined as the higher of fair
value and value in use.
RATP did not identify any indication of impairment during the period.
Due to the legal and financial framework governing RATP’s activities
and its status as a public service provider, the net carrying amounts
recorded on the balance sheet are justified by the market value
of the assets.
Provisions for depreciation and amortization are calculated using
the straight-line method based on the useful lives of the assets,
as defined by RATP technicians.
The depreciation periods for major RATP assets are provided
in the table below:
USEFUL LIFE
Buildings
Building shell and brickwork
Building fixtures and fittings
Railway infrastructure
Tunnels, stations and access ways
Fittings for stations and access ways
Tracks
Conductors, traction power supply for
the metro system
Catenary systems for the regional railway
network (RER) and trams
Track signalling and assisted driving systems
Automated train operating system (SAET)
70 to 100 years
6 to 30 years
35 to 140 years
15 to 40 years
10 to 50 years
5 to 50 years
15 to 50 years
5 to 35 years
Automated driving system
15 to 30 years
Track signalling
10 to 40 years
RATP acquired and self-constructed assets
Rolling stock
RATP contributes to financing the infrastructure, equipment
and rolling stock on the lines it operates, whether or not it owns them.
Rolling stock (rail)
20 to 40 years
Rolling stock (bus)
4 to 10 years
Company cars
Background
The assets provided for use or owned by RATP are recorded at
historical (or production) cost, with the exception of those in operation
at December 31, 1976, which were revalued pursuant to article 61
of the 1977 French Finance Act.
Since January 1, 2005 RATP has used component-based accounting
to record all its property, plant and equipment. The assets are broken
down into their component parts and each component is recognized
with a separate useful life based on how often it is replaced or
repaired. As at January 1, 2005 RATP adopted the amortized historical
cost method.
5 years
Plant and equipment, fixtures and fittings
Elevators, escalators and moving walkways
10 to 40 years
Automatic gates, passenger turnstiles
10 to 20 years
Equipment to print, deliver and stamp tickets
5 to 10 years
Telecom equipment and alarms
5 to 15 years
Electrical installations
5 to 30 years
Transformers
Ventilation and air evacuation equipment
Air conditioning systems
Sound and lighting equipment
10 to 100 years
15 to 30 years
5 to 10 years
10 to 30 years
Equipment and tooling
5 to 30 years
Other equipment and furniture
3 to 15 years
71
Spare parts
Spare parts are measured at unit cost or at weighted average cost
per unit if managed by a computerized maintenance management
system. Depreciation of spare parts is calculated on the basis
of the depreciation period of the associated assets.
to RATP and those internally developed by RATP. These reserves may
be used to fund the acquisition of new assets, under the terms agreed
with the supervisory authorities.
2.1.3 Leased assets
Income from investment grants is recognized on the basis of
the depreciation schedule of the associated assets, with the exception
of grants received for purchasing land, of which one tenth is recognized
as income per financial year.
Leased assets (note 3.12) are recorded as non-current assets on RATP’s
balance sheet. The assets held under the Swedish lease (note 3.12)
have been derecognized. The net present value of lease payments
is recorded over the term of the leases (note 5.21a).
Regulated provisions relate to the revaluation of the depreciable assets
performed in 1978 on the basis of 1976 data. They are transferred
to income as the associated assets are written off.
(Breakdown of changes in equity in note 5.7).
2.1.4 Financial assets
2.1.9 Debt and hedging instruments
The gross value of financial assets comprises the purchase price and
directly attributable acquisition costs. RATP includes the conveyance
stamp duties, fees, commission and other taxes in the acquisition cost.
Borrowings are recorded on the balance sheet at their redemption
value in euros.
The fair value of investments held by RATP is determined based
on the net equity of the subsidiary, or for subsidiaries that hold
investments themselves, based on the consolidated net equity
of the sub-group and on the earnings outlook of the subsidiary
or sub-group. If the fair value of the investment is lower than
the net carrying amount, a provision for impairment is recognized
(details of provisions in note 5.3).
Currency transactions
2.1.5 Inventories
If at the date of the financial statements the exchange rate impacts
the amounts previously recorded in euros, adjustments are recorded
under balance sheet liabilities if they reflect unrealized exchange gains
and under assets if they reflect unrealized currency translation losses.
If unrealized currency translation losses are recorded, a foreign
exchange contingency provision is also recorded.
Inventories are stated at the lower of cost (including associated
transaction costs) and net realizable value. The cost is calculated using
the weighted average cost method (details of inventories per category
in note 5.4).
2.1.6 Accounts receivable
Receivables are recorded at face value. An allowance for uncollectible
accounts equal to the full amount of the receivable is recorded if there
is collection risk (detailed breakdown of provisions in note 5.3).
2.1.7 Bond redemption premium
The cost of bond redemption premiums is spread on a straight-line
basis over the term of the bonds. However, if early repayment
is decided before the date of the financial statements, the expense
is recorded in full.
2.1.8 Equity
The contra-account entitled “Reserve for assets made available to RATP”
essentially reflects the residual value as of January 1, 1949 – when
RATP was created – of the assets provided for use by RATP at that time,
which were recorded on the balance sheet as of December 31, 1976.
Balances denominated in foreign currencies are converted at
the year-end exchange rate, with the exception of those concerning
transactions that are fully hedged by currency swaps. Fully hedged
operations, particularly those concerning debt denominated in foreign
currencies, are presented at the hedged rate. All currency transactions
are fully hedged.
RATP uses derivative financial instruments to manage its exposure
to changes in interest rates, exchange rates and commodity prices
(interest rate and commodity swaps and options and currency swaps).
Almost all the derivative instruments qualify for hedge accounting
and fully cover debt and fuel consumption.
The income and expense arising from hedging instruments is
systematically recorded in profit and loss when collected or incurred.
The difference between the interest receivable and the interest
payable on swaps, caps and floors, and the premiums and net
payments associated with these transactions are recorded as an
adjustment to interest expense over the term of the instruments.
Unrealized gains and losses arising from hedges on future purchases
of diesel fuel (budgeted) are deferred and reported in the income
statement when the hedged transaction is settled.
The revaluation surplus recorded under equity results from
the revaluation performed in 1963 on the basis of 1959 data, which
amounted to €8,557 thousand, and the revaluation of non-depreciable
assets performed in 1978 on the basis of 1976 data for €222,638
thousand (note 5.8).
Les gains et pertes latents résultant des contrats affectés
à la couverture des achats futurs de gazole (budgétés) sont différés
et pris en compte en résultat financier lors de la réalisation
de la transaction couverte.
RATP was formed under the act of March 21, 1948, but no capital was
transferred to the entity at that time. In 1986, the public authorities
allocated capital of €283,367 thousand to RATP.
2.1.10 Trade payables
Pursuant to the legal provisions governing RATP’s operations, gains
and losses resulting from the sale of property are recorded directly
in reserves, with a separation between the assets made available
72
Prepayments to suppliers are reported under balance sheet assets.
They are provisioned if their fair value falls below their carrying
amount.
2.2 Income statement
2.2.1 Revenue generated by the agreement with
the Île-de-France regional public transport authority (STIF)
Revenue generated by the agreement entered into with STIF
on February 21, 2008, for the period from 2008 to 2011, comprised:
• direct revenue from users of transport services;
• the contribution to operations relating to public service obligations;
• the contribution to financing investments;
• a reward or penalty based on quality of service indicators;
• a profit-sharing system with risks and gains divided between RATP
and STIF, based on direct revenues generated, benchmarked against
contractual performance targets;
• a premium based on the level of passenger traffic recorded
on the networks, which will be implemented from January 1, 2009.
These items are all recognized in RATP’s revenue.
In addition, RATP may be fined if it fails to provide the minimum
service coverage required.
Comparison with 2007 revenue
Under its previous agreement with STIF, RATP received a flat-rate
contribution, not reported in revenue, which was used to cover all
the expenses not directly attributable to operations, but which were
incurred in the provision of the public service. Since the creation
of RATP’s pension fund on January 1, 2006, the contribution has
decreased significantly, as it no longer includes funding for retirement
and pension liabilities, but only for financial costs and security
expenditures.
The terms of the new STIF agreement, for the period from 2008
to 2011, reclassified the part of the contribution relating to operations
security and the interest expense relating to investment funding.
Consequently, for comparison purposes, a pro forma revenue statement
including the flat rate contribution has been prepared for 2007 and is
presented in note 5.9.
2.2.2 Grants to cover the provision of unprofitable services
Pursuant to article 8 § 6 of Decree 59.157 of January 7, 1959 on
the Paris regional transport system, RATP receives grants from
the local authorities to cover the cost of providing unprofitable public
transport services.
Details of the revenue generated per business sector are provided
in note 5.9 and by type of transport service in note 5.10.
2.2.3 Income used to offset depreciation expenses
This item reflects income from investment grants and special
revaluation provisions.
2.2.4 Payroll and payroll-related costs
Since 1999, RATP has accounted separately for its transport business
and its social security obligations.
The dual accounting system is based on:
• for social security service obligations, income statements for each
type of risk covered (health, permanent disability and life insurance,
industrial accidents, unemployment, family allowances);
• employer social security contributions comparable with those
applicable to common law social security systems.
The system as a whole is called the Social Security Accounting System.
Presentation of payroll costs in RATP’s individual financial statements
In order to facilitate the understanding and comparison of RATP’s
income statement with income statements prepared by other transport
companies, the payroll costs related to the transport business have
been presented in the same way as they are for common law companies,
with two separate lines, one reflecting “Wages and salaries” and the
other “Payroll-related costs”. RATP’s social security service obligations
are reported under a single line item “Net cost of RATP employee
benefit plan”.
Further details on RATP’s social security service obligations are provided
in the table in note 5.11. The social security services are presented
in the same way as for other social security entities and show:
• the origin and amount of resources, in particular in terms
of the employer’s contribution and, where appropriate, employee
contributions;
• the amount of benefits paid to plan members;
• the compensation with other social security funds and entities;
• the management costs.
Retirement benefit obligations have not been managed as part
of RATP’s social security services since the creation of the pension
fund in 2006.
Main characteristics of the Social Security accounts
• Employer and employee contributions
The resources in the social security accounts mainly comprise the
employer contributions recorded as “Payroll-related costs” in RATP’s
income statement, and contributions made by employees. In terms
of health insurance, as employee contributions have been replaced
by the CSG tax, which is paid to URSSAF, RATP receives a contribution
to its health insurance fund from the CSG tax collected. The amount
received is set by a government order published in the French Official
Gazette.
• Benefits
Benefits provided by RATP include:
• benefits in kind, such as the reimbursement of medical and hospital
costs, medical tests and pharmaceuticals, and the services rendered
by RATP’s healthcare centre (Espace Santé), etc.;
• financial benefits, such as wages and salaries paid to employees on
sick leave (daily indemnities), lump sums paid upon death in service,
work-related accident and disability pensions, family allowances, etc.
• Health insurance and family allowances under the state social security
system
RATP has provided health insurance and family allowances since 1972
under the terms of the State social security system. In compliance with
its agreement with the State, referred to as the bilateral compensation
system, RATP pays contributions to the State health insurance funds
(CNAM and CNAF) and the insurance funds reimburse RATP for
benefits provided (healthcare benefits in kind only). The arrangements
and amounts paid by RATP are set forth by decree, and the transfers
to RATP are governed by the terms and conditions of the Social
Security Code.
• Demographic compensation between systems
As part of its Social Policy, the State has set up a compensation system
to offset the differences in supply and demand between the various
local social security systems in France, which arise due to demographic
differences. The compensation system provides coverage for RATP’s
health insurance services.
73
2.2.5 Extraordinary Income and Expense
RATP recognizes under extraordinary income and expense the items
specified in the National Chart of Accounts, and items that are
classified as non-recurring, which are rare and unforeseeable and are
not part of RATP’s ordinary operations.
RATP also complies with the new obligations set forth by the decree
of July 13, 2001 requiring regular measures to control dust
accumulation.
3. OTHER INFORMATION
An internal study has been performed to investigate asbestos-related
illnesses among employees and assess the financial impact on
the company. All risks arising from cases already declared or which
have been brought to court have been provisioned. Although it is not
possible to predict the financial impact of future litigation, RATP
believes that the provision of €2.5 million recorded in the balance
sheet as of December 31, 2008 is adequate and reflects the best
estimate of the financial risk borne by the Company.
3.1 Maturities of receivables and payables
3.12 Leases and lease-purchase contracts
(note 5.13)
Details of the impact of lease transactions on the financial statements
are shown in note 5.21a.
3.2 Receivables and payables
Leaseholds
The breakdown of extraordinary income and expense is provided
in note 5.12.
(note 5.14)
3.3 Related parties (note 5.15)
3.4 Trade receivables and trade payables
(note 5.15)
3.5 Number of employees
(note 5.16)
3.6 Compensation of ten highest-paid executives
(note 5.17)
3.7 Subsidiaries and investments
Table 5-18 provides information on the financial position of companies
in which RATP holds a minimum 20% stake or an investment of more
than €1.5 million.
3.8 Consolidation
RATP prepares consolidated financial statements.
3.9 Economic interest groups
(note 5.19)
3.10 Off-balance sheet commitments
(note 5.20)
3.11 Asbestos
The plan to eliminate friable asbestos required by the decree 96-97
of February 7, 1996 has almost been completed. In financial terms,
only minor immaterial operations remain outstanding.
All non-friable asbestos (covered asbestos or material containing
asbestos) will gradually be removed as maintenance work is carried
out on plant and equipment. Precise information on the plant and
equipment containing asbestos is not available, so it is not yet possible
to determine the asbestos elimination plan beyond a six-month
timeframe. Consequently, no provisions were recorded for this purpose
in the 2008 financial statements. In 2008, the expenses incurred
for asbestos removal amounted to €2 million.
74
RATP enters into a number of leaseholds, whereby it grants a right
of use to its assets enabling foreign investors, particularly in the United
States, to assume economic ownership of the assets and thus amortize
the assets and benefit from significant tax breaks.
A leasehold transaction is composed of the main lease granted
by RATP and a sub-lease enabling RATP to retain the right of use
of the asset. RATP also has an early buyout option (EBO), enabling
it to unwind the arrangement before the term of the main lease.
Under French generally accepted accounting principles, a lease
arrangement is not recognized as a sale during the term of the EBO.
The tax advantage gained by the foreign investor is shared with RATP.
The overall profit generated on each transaction is included
in the down payment received when the contracts are signed.
It is immediately used to reduce RATP’s debt, and is accounted for on
a straight-line basis over the term of the lease as extraordinary income.
All associated costs, sub-leases payments, interest and principal are
recorded in a single entry under extraordinary income and expense,
in accordance with accounting principles on defeasance transactions.
The various contracts that make up each leasehold arrangement
constitute separate transactions and are accounted for as such.
The assets and liabilities related to these contracts (deposits that are
never actually cashed in by RATP, other assets that are not received
and liabilities that are not paid) are offset in the balance sheet and
income statement, and appear in a single line as the net present value
(NPV) corresponding to the overall profit generated by each transaction.
This profit is recorded as deferred income when the contracts are
signed and then is recognized as exceptional income on a straight-line
basis over the duration of the contract.
The risks to RATP are limited to those relating to ownership
of the equipment, French law and the counterparty risks on deposits.
Part of the counterparty risk relating to deposits, (amounting
to €1,286 million as at December 31, 2008), is hedged by defeasance
agreements, which enable the deposits to be offset against
the associated liabilities. Another part of counterparty risk relating
to deposits, (€459 million as at December 31, 2008), is hedged
by collateral agreements, which require the deposits to be replaced
by American treasury bonds in the event of a lowering
of the company’s credit rating. RATP bears the counterparty risk
for the remaining amount of deposits, (€327 million as at
December 31, 2008), and provides letters of credit on RATP risk
to American investors if the rating on these deposits falls below
a certain threshold. During 2008, RATP provided letters of credit
for a maximum of €131 million.
In 2008, RATP terminated three leases prior to maturity, and reported
a gain of €1.2 million.
Swedish lease
The Swedish lease is set up for the period prior to equipment delivery.
The investor pays the supplier the full value of the equipment. RATP
makes swapped deposits to cover the lease payments and enters into
a buyback option on the equipment. RATP records a profit on
the difference between the deposits and the value of the equipment.
The lease payments are recognized as operating expenses and
the interest and deposits in financial income. The net present value
is recorded as extraordinary income. Net income is impacted by
the deferred profit relating to the net present value and the theoretical
asset depreciation in RATP’s balance sheet.
Lease-purchase contracts
RATP’s leases-purchase contracts are presented in note 5.21b.
3.13 Long-term employee benefits
RATP’s long-term employee obligations include those relating to:
• occupational disease and work-related accidents. RATP insures its
current and retired employees for occupational disease and accidents.
The benefits paid compensate employees for the permanent physical
or psychological damage incurred due to an accident or disease
and any other negative effects on the employee’s career.
Only the benefits paid to current employees are classified as longterm benefits. A provision of €15.6 million was recorded for such
benefits during the period;
• seniority benefits (médailles du travail): €18 million;
• phased retirement: €15.1 million;
• unemployment benefits: €12.9 million;
• long-term sick leave: €6.2 million.
Employee benefits are measured using actuarial calculations based
on assumptions regarding demographic variables (mortality, employee
turnover, etc.) and economic variables (discount rate, salary increase
rate, etc.).
The effective discount rate at December 31, 2008 was 5.25%,
compared with 5% as at December 31, 2007. This rate includes
an adjustment for inflation.
4.2 Exposure to interest rate risk
Interest rate risk on borrowings and investments is essentially
managed using swaps and options to modulate fixed and floating rates
based on changes in interest rates.
Swaps as at December 31, 2008
Derivatives by maturity, in millions of euros
12/31/2008
12/31/2007
Swaps on long-term borrowings (in euros)
Maturity < 1 year
Maturity 1 year to 5 years
Maturity > 5 years
50
0
0
50
648
846
Cross currency swaps on long-term
borrowings
Maturity < 1 year
0
0
Maturity 1 year to 5 years
0
0
849
629
Maturity > 5 years
Swaps on short-term borrowings
OIS swap maturity < 1 year
139
0
FRA maturity < 1 year
100
0
1,786
1,525
12/31/2008
12/31/2007
TOTAL SWAPS,
IN MILLIONS OF EUROS
Derivatives listed by type, in millions of euros
A – Swaps on long–term borrowings
1) Fixed to floating swaps
(excluding currency swaps)
Positions on short-term interest rates
100
100
Positions on long-term interest rates
148
48
450
650
0
0
2) Floating to fixed rate swaps
(excluding currency swaps)
Position on short-term interest rates
Position on long-term interest rates
3) Other swaps
0
0
4. INFORMATION ON EXPOSURE
Basis swaps
FRA
100
98
TO MARKET RISK
Cross currency swaps
849
629
139
0
1,786
1,525
B) Swaps on short-term borrowings
4.1 Introductory remark
Eonia swaps
RATP uses financial instruments to manage its exposure to interest
rate risk. Its financial instruments are used to back both debt
and investments.
TOTAL SWAPS
In accordance with recommended accounting practice, RATP only
records accrued interest on derivatives.
IN MILLIONS OF EUROS
The tables above do not take into account the notional amount
of the asset swaps on the 1999 leasehold transaction for which there
is no interest rate risk.
75
Breakdown of bonds and commercial paper as at December 31, 2008,
in millions of euros, excluding those relating to the corporate savings
plan:
EXCLUDING
DERIVATIVE
INSTRUMENTS
INCLUDING
DERIVATIVE
INSTRUMENTS
Bonds
3,736
3,736
Fixed rate
3,736
3,488
0
248
Commercial paper
190
190
Fixed rate
190
50
0
140
Variable rate
Variable rate
Valuation of the portfolio of derivative financial instruments
The fair value of derivative financial instruments corresponds
to the amounts which would have to be paid (–) or received (+)
to unwind these instruments.
The fair values of derivatives have been determined on the basis
of the listed prices provided by banks and financial institutions.
FAIR VALUE
AT 12/31/2008
INSTRUMENTS
Swap (excluding currency swaps)
– 34.8
Cross currency swaps
+ 59.9
Structured instruments
–3.6
Options
0
TOTAL
+ 21.5
Options at December 31, 2008
NB: The exchange rate part of the currency swaps is offset by the exchange rate part
of the underlying bonds. RATP is not exposed to exchange rate risk.
Euro options (long-term borrowings) in millions of euros
Maturity < 1 year
100
Maturity 1–5 years
0
Maturity > 5 years
396
TOTAL COMMITMENTS
496
Mark-to-market instruments at December 31, 2008
(excluding exchange rate part of currency swaps) amounted
to –€38.4 million.
Derivative instruments are not reported on the balance sheet.
4.3 Exposure to Exchange Rate Risk
Euro options (long-term borrowings) in millions of euros
Put
Cap
0
Call
Cap
198
Put
Floor
198
Call
Floor
0
Put
Swaption
50
Call
Swaption
50
Automatic call
TOTAL COMMITMENTS
0
496
RATP issues loans in foreign currencies. The resulting exposure
to exchange rate risk is systematically hedged using currency swaps.
The table below shows the currency swaps in place
at December 31, 2008.
DEBT ISSUED
CURRENCY SWAPS
PAY
AMOUNT
FOREIGN
OF FOREIGN
CURRENCY
CURRENCY
(IN THOUSANDS)
1,360,000
CHF
RECEIVE
AMOUNT
OF FOREIGN
CURRENCY
(IN THOUSANDS)
FOREIGN
CURRENCY
AMOUNT
IN THOUSANDS
OF EUROS
1,360,000
CHF
849,417
Hedging transactions at the end of December 2008 generated
financial income close to €0 due to the offsetting of –€9,128 million
for ongoing transactions with €9,135 million for the deferred
recognition of cash payments and premiums.
4.4 Exposure to commodity price risk
Sensitivity of variable rate debt at December 31, 2008
In 2008, RATP did not set up any swaps to fix the price of the
underlying diesel fuel ULSD 50 ppm CARGOES CIF NWE MEAN.
As at December 31, 2008, given all outstanding derivatives (swaps, caps,
floors), variable rate positions constituted 1.3% of bonds (excluding
commercial paper and corporate savings scheme) and amounted
to €50 million. Outstanding commercial paper, excluding the corporate
savings scheme, amounted to €190 million. It is entirely placed in
monetary trust funds and negotiable debt instruments and therefore
has no effect on the sensitivity of outstanding debt. On a like-to-like
basis, a 1% increase in short-term interest rates would increase interest
expense by €500 thousand.
76
RATP hedges against increases in commodity prices for diesel fuel
and also against increases in the dollar against the euro.
5. ADDITIONAL INFORMATION
ON THE BALANCE SHEET AND INCOME
STATEMENT
Note 5.1
Fixed assets
Note 5.13b
Maturities of payables
Note 5.2
Note 5.13c
Net debt
Note 5.3
Provisions
Note 5.14
Receivables and payables
Note 5.4
Inventories, gross
Note 5.15
Balance sheet items
Note 5.5
Prepaid income and expenses
Note 5.16a
Average number of employees
Note 5.6
Loan transaction costs
Note 5.16b
Employee training rights
Note 5.7
Changes in equity
Note 5.17a
Compensation of directors and executives
Note 5.8
1976 revaluation surplus
Note 5.17b
Fees
Note 5.9
Breakdown of revenue
Note 5.18
Subsidiaries and investments
Note 5.10
Transport revenue
Note 5.19
Economic interest groups
Note 5.11
RATP social security income statement
Note 5.20
Off-balance sheet commitments
Note 5.12
Breakdown of extraordinary income
Note 5.21a
Leases
Note 5.13a
Maturities of receivables
Note 5.21b
Lease purchase commitments
77
Note 5.1 Fixed assets at December 31, 2008
POSITION AND CHANGES
A
B
C
D
E
GROSS VALUE
AT 12/31/2007
INCREASE
TRANSFERS
BETWEEN
LINE ITEMS
DECREASE
GROSS VALUE
AT YEAR-END(1)
ITEMS
Intangible assets
– Lease rights
94,329
0
2,252
– 26
96,554
2,626
0
0
0
2,626
– Other
Software in use
Software in process
TOTAL
266,294
0
78,201
– 8,211
336,284
33,481
23,517
– 27,117
0
29,881
396,730
23,517
53,336
– 8,237
465,346
– Land
– Buildings
– Buildings on land not owned
389,906
0
804
0
390,710
7,860,589
0
348,573
– 87,140
8,122,022
92,237
0
1,562
0
93,799
– Technical plant, equipment
and industrial tooling
4,124,963
2,300
217,508
– 66,100
4,278,671
4,409,584
3,734
174,963
– 40,310
4,547,972
202,446
0
17,141
– 4,921
214,666
1,309,024
970,652
– 813,887
0
1,465,789
18,388,750
976,687
– 53,336
– 198,472
19,113,629
– Other
– Work in progress
TOTAL
Financial assets
– Investments
– Receivables from investments
– Other investments
– Loans (2)
– Other (deposits and guarantees)
TOTAL
ENSEMBLE
259,345
0
0
0
259,345
6,638
23
0
– 4,241
2,420
0
0
0
0
96,066
2,506
0
– 5,015
117,530
11,624
0
– 10,474
118,680
479,579
14,153
0
– 19,729
474,003
19,265,059
1,014,357
0
– 226,438
20,052,978
(1) Gross value at year end is calculated as follows: ( A + B + C + D = E ).
(2) The net change in loans comprises: – 1,671
Employee loans (accrued interest – 17)
– 838
Other loans
– 2,509
78
93,558
Note 5.2 Depreciation and amotization at December 31, 2008
A
ACCUMULATED
AMORTIZATION
AND DEPRECIATION
AT BEGINNING
OF YEAR
ITEMS
B
C
D
INCREASE
IN DEPRECIATION
AND
AMORTIZATION
DECREASE
IN DEPRECIATION
AND
AMORTIZATION
ACCUMULATED
AMORTIZATION
AND DEPRECIATION
AT YEAR-END(1)
Intangible assets
3,036
3,290
– 29
911
77
0
988
– Other
195,037
35,198
– 6,829
223,406
TOTAL
198,984
38,565
– 6,858
230,691
3,156,337
155,786
– 87,016
3,225,107
75,246
4,892
0
80,138
– Technical plant, equipment and industrial tooling
2,683,224
197,153
– 65,905
2,814,473
2,945,374
– Lease rights
6,298
– Buildings
– Buildings on land not owned
2,787,038
197,438
– 39,101
– Other
137,209
20,056
– 4,794
152,471
TOTAL
8,839,054
575,324
– 196,815
9,217,563
10,833
1,872
– 1,991
10,713
10,833
1,872
– 1,991
10,713
26,853
2,608
– 19,311
10,151
9,075,724
618,369
– 224,975
9,469,118
– Bond issue costs
TOTAL
Bond redemption premiums
ENSEMBLE
(1) Total depreciation and amortization at year-end is calculated as follows: (A + B + C = D).
The share of assets allocated to social security service obligations
• Software (other intangible assets)
• Buildings
• Buildings on land not owned
• Industrial equipment and tooling
• Transport equipment
• Other
665
117
0
1,221
0
213
2,216
79
Note 5.3 Provisions at December 31, 200
Regulated provisions (revaluation reserve)
TOTAL 1
A
B
C
D
E
PROVISIONS
AT BEGINNING
OF YEAR
CHANGE
OF ACCOUNTING
METHOD
INCREASE
IN PROVISIONS
DECREASE:
REVERSALS DURING YEAR
PROVISIONS
AT YEAR-END
(A + B + C = D)
USED
ADJUSTMENTS
451,423
0
0
10,290
117
441,016
451,423
0
0
10,290
117
441,016
Provisions for contingencies and liabilities
– Provisions for contingencies
• Provisions for litigation
23,849
0
51,726
838
3,989
70,747
• Provisions for work-related accidents
22,850
0
29,705
14,912
0
37,643
6,989
0
1,803
2,184
1,042
5,566
4,385
0
810
2,252
359
2,584
84,044
20,186
5,391
116,540
156,656
• Provisions for operating
or financial liabilities
• Provisions for extraordinary liabilities
58,073
– Provisions for expenses
• Reserve for extraordinary expenses (1)
• Other provisions for expenses
TOTAL 2
163,520
183
14,554
20,420
1,181
0
0
0
0
0
0
163,520
183
14,554
20,420
1,181
156,656
221,593
183
98,598
40,606
6,571
273,196
5,504
0
655
0
0
6,159
Provisions for impairment
– Property, plant and equipment
– Financial assets
17,529
0
3,198
0
478
20,249
– Inventories
29,835
0
2,887
2,509
0
30,213
– Trade receivables and related accounts
14,337
0
1,193
531
3,980
11,019
0
0
0
0
0
0
4,194
0
3,421
0
749
6,866
71,399
0
11,354
3,040
5,207
74,506
744,415
183
109,952
53,937
11,897
788,718
722,501
528
4,385
183
0
0
105,944
3,198
810
51,684
0
2,252
11,059
478
359
765,884
20,249
2,584
744,415
183
109,952
53,937
11,897
788,717
– Marketable securities
– Other
TOTAL 3
TOTAL ASSETS
Appropriation:
Op.: operating activities
Fin.: financing activities
Ex.: extraordinary activities
Note 5.4 Inventories (gross) at December 31, 2008
Commodities and supplies
12/31/2008
12/31/2007
170,917
157,045
1,945
3,009
172,862
160,054
Work in progress
TOTAL
Note 5.5 Prepaid income and expenses at December 31, 2008
12/31/2008
EXPENSES
12/31/2007
INCOME
EXPENSES
INCOME
Operating activities
5,798
31,676
4,500
34,738
Financing activities
46,528
67,527
55,138
77,194
2,606
10,557
2,825
11,321
54,933
109,761
62,463
123,253
Extraordinary activities
TOTAL
80
Note 5.6 Loan transaction costs at December 31, 2008
NET AMOUNT AT
BEGINNING OF YEAR
Loan transaction costs (1)
TOTAL
INCREASES
DECREASES
OR ADJUSTMENTS
NET AMOUNT
AT YEAR-END
9,244
2,649
– 1,872
10,022
9,244
2,649
–1,872
10,022
(1) Loan transaction expenses are amortized over the term of the loans. However, if early repayment is decided before the date of the financial statements, the expenses are fully
amortized.
Note 5.7 Changes in equity at December 31, 2008
12/31/2007
INCREASES
REDUCTIONS
12/31/2008
250,701
250,701
Revaluation surplus (3)
231,140
231,140
Capital endowment
283,367
283,367
Statutory reserves
184,419
184,419
Reserves from sale of assets constructed by RATP
43,026
43,026
General reserve
57,926
Retained earnings(1)(2)
Net income
Investment grants
Regulated provisions(3)
57,926
862,544
83,665
83,665
124,995
83,665
124,995
2,433,138
199,297
105,134
2,527,300
10,407
441,016
407,958
199,207
5,090,101
451,423
TOTAL
4,881,350
946,209
(1) Net income from 2007 was allocated to retained earnings.
(2) See paragraph 1 of the notes.
(3) Details of the revaluation surplus are provided in note 5.8.
Note 5.8 Revaluation surplus at December 31, 2008
5.8.1 Revaluation from 1976
DIFFERENCES AT BEGINNING OF YEAR
GROSS VALUE
OF ASSETS
ACCUMULATED
AMORTIZATION
AND PROVISIONS
DIFFERENCES DURING YEAR
RETIREMENT
OF ASSETS
DEPRECIATION,
AMORTIZATION
AND PROVISIONS
DIFFERENCES AT YEAR-END
GROSS VALUE
OF ASSETS
ACCUMULATED
AMORTIZATION
AND PROVISIONS
– Land
– Buildings
222,568
0
0
0
222,568
0
1,212,934
767,106
– 14,942
– 5,860
1,197,992
761,246
– Technical plant, equipment
and industrial tooling
79,574
78,764
– 8,512
– 8,351
71,063
70,412
74,010
69,711
– 2,876
– 1,712
71,134
67,999
485
0
0
0
485
0
1,589,572
915,581
– 26,330
– 15,923
1,563,241
899,658
15
0
15
0
– Other
Financial assets
– Investments
TOTAL
15
0
1,589,587
915,581
–26,330
–15,923
15
0
1,563,257
899,658
Net total
663,599
5.8.2 Revaluation from 1963 (base 1959)
Revaluation surplus
TOTAL REVALUATION SURPLUS
8,557
672,156
81
Note 5.9 Breakdown of revenue at December 31, 2008
12/31/2008
Transport revenue (excluding Orlyval)
1,862,172
0
1,435,484
12,216
– 141,545
Tariff compensation
Bandwidth (risks shared with STIF)
Additional contribution
Revenue from transport services excluding VAT (1)
0
103,520
1,953,743
3,259,631
0
114,855
10,777
7,591
Sales incentives
Service quality bonus
C11 – contribution to operating expenses
860,760
C12 – contribution to taxes and duties
154,318
C 13 – contribution to difference of R7 index under clause C11 and tariff decisions
12/31/2007 (PRO FORMA)
1,941,527
37,240
C2 – contribution to financing investments
755,329
Other transport revenue
43,606
22,849
Standard contribution (2)
0
236,447
3,815,773
3,641,373
100,009
95,578
18,193
18,666
1 – Transport revenue excluding VAT
2 – Transport-related revenue excluding VAT
3 – Penalties
4 – Other service revenue
Subtotal (3)
140,572
139,650
4,074,547
3,895,267
(1) The notion of total traffic revenue has been replaced by other conventions under the new STIF agreement.
(2) The standard contribution for 2007 has been included in the presentation to better compare the revenue of 2008 with 2007 revenue.
(3) Revenue is measured on the basis of the principles set out in paragraph 2.2.1.
Note 5.10 Revenue from passenger transport services (VAT included) at December 31, 2008
REVENUE IN THOUSANDS OF EUROS
12/31/2008
AS A %
RATP network: Metro, RER and Autobus
2,048,311
100
1,964,592
12/31/2007
– Monthly, weekly and annual “Orange” travel passes
1,162,509
56,75
1,138,432
– Other subscriptions (police, emerald, amethyst)
107,339
5,24
102,645
– Tickets
689,416
33,66
641,312
– Flat-rate travel cards (Mobilis, youth tickets)
31,332
1,53
27,773
– Unsubsidized tickets (Paris-visit, Orlybus, Roissybus)
56,031
2,74
52,786
– Weekly travel passes, subsidized school subscriptions
fire department subscription and night buses
1,684
0,08
1,635
0
0,00
– Free services for Olympiades station opening
Special ticket rates (VAT included)
9
– 2,664
– 22,381
Transport services and leases (VAT included)
4,767
5,117
Revenue/long-term subscriptions (VAT included)
6,240
4,264
Orlyval revenue (VAT included)
22,725
21,530
Transport service revenue from previous years (VAT included)
– 1,058
1,988
2,078,321
1,975,110
ALL NETWORKS
82
Note 5.11 RATP social security income statement
2008
2007
Health insurance plan
– Employer contribution
222,465
213,384
– Transfers received from CSG tax collected (ACOSS) and employee contributions
102,322
97,984
– CNSA Contribution (for disabled transport users)
– Benefits in kind
– Cash benefits (paid sick leave, death benefits)
– Healthcare services
– Special plan expense (including general compensation)
– Management expense (net)
804
1,250
– 227,989
– 220,911
– 55,772
– 57,859
– 9,037
– 9,154
– 2,757
– 1,225
– 17,718
– 18,338
– 266,231
– 257,282
12,459
10,678
Bilateral compensation with state health insurance fund (CNAM)
– Contributions paid to the RATP special scheme
– Allowance for management expenses
– Reimbursement of benefits in kind from the national social security scheme
Net income (loss)
227,581
218,686
–13,873
–22,787
25,763
25,251
Work-related accident insurance plan
– Special scheme expense (including contributions to the work accident fund)
402
– 252
– Benefits in kind and pensions
– 11,416
– 11,365
– Cash benefits (paid sick leave)
– 8,638
– 9,338
– 3,091
– 3,398
Net income (loss)
3,020
898
Unemployment Insurance Plan
– Benefits paid
Net income (loss)
7,274
7,088
– 6,395
– 4,974
– 272
– 368
606
1,746
68,195
66,304
– 17,091
– 16,910
Family allowance plan
– Statutory benefits
– Other benefits
Bilateral compensation with state family fund (CNAF)
– Contributions paid to the RATP special scheme
– Allowance for management expenses
– Reimbursement of statutory benefits (national social security scheme)
Net income (loss)
RATP SOCIAL SECURITY, NET LOSS
– 397
– 468
– 1,631
– 1,627
0
– 70,626
– 67,072
2,336
2,484
17,091
16,910
–2,122
–379
–12,369
–20,521
83
Note 5.12 Breakdown of extraordinary income at December 31, 2008
EXTRAORDINARY INCOME
5,457
Proceeds from disposal of property, plant and equipment, and intangible assets
– 3,086
Transfer to inventories of equipment recovered
1,178
Asbestos-related disease benefits paid and provisions reversed (net)
– 452
Asbestos removal work
– 2,804
Leases(1)
10,461
Swedish lease: NPV(1)
125
Other
35
(1) See note no. 21a.
Note 5-13a Maturities of receivables at December 31, 2008
ACCOUNTS RECEIVABLE
GROSS
AMOUNT (1)
LIQUIDITY OF ASSETS
MATURITIES
DUE WITHIN 1 YEAR
MORE THAN 1 YEAR
Receivables relating to non-current assets
• Receivables from investments
•
Loans(2)(3)
2,420
170
2,250
93,558
3,334
90,224
118,680
713
117,967
214,658
4,217
210,441
• Trade receivables and related accounts
124,940
124,940
0
• State and local authority receivables
264,263
264,263
0
54,765
51,411
3,354
443,967
440,614
3,354
184,565
184,565
0
25,369
25,369
0
209,934
209,934
0
54,933
7,411
47,522
923,493
662,176
261,316
• Others
Receivables relating to current assets
• Other
Financial assets
• Marketable securities(4)
• Cash and cash equivalents
Prepaid expenses
TOTAL
(1) Gross amount reported on the balance sheet before deduction of provisions for impairment, which amounted to €33,968 thousand.
(2) Employee loans granted during period: €232 thousand.
Employee loans repaid during period: €1,903 thousand.
(3) Loans granted by RATP to employees and housing management entities, under the 1% mandatory employer contribution. Such loans bear lower interest than the usual
market rates for loans of similar maturities.
(4) With accrued interest of: €148 thousand.
84
Note 5.13b Maturities of payables at December 31, 2008
LOANS AND BORROWINGS
GROSS
AMOUNT
MATURITIES
LESS THAN
1 YEAR
BETWEEN
1 AND 5 YEARS
MORE THAN
5 YEARS
– Île-de-France loans(1)(4)
285,646
19,544
96,351
169,751
– Bonds(1)(4)
• On Eurozone financial markets
2,887,347
457,347
1,400,000
1,030,000
• On international financial markets
849,418
0
0
849,418
• “Tick’épargne” loans
259,019
139,936
119,082
– Borrowings from and liabilities to financial institutions
• Borrowings
69,148
1,524
21,530
46,094
• Bank accounts (creditor)
82,833
82,833
0
0
51
51
0
0
346,625
329,949
146
16,530
70,828
70,828
0
0
4,850,915
1,102,012
1,637,110
2,111,793
– Trade payables and related accounts
205,094
205,094
0
0
– Tax and social security liabilities
417,129
417,129
0
0
– Payables to suppliers of assets and related accounts
315,752
315,752
0
0
• Postal cheques
– Other loans and
borrowings(2)
– Accrued interest(3)
Accounts payable
– Other payables
Prepaid income
Foreign currency translation gain
TOTAL
(1) Loans contracted during period (in thousands of euros):
Loans repaid during period (in thousands of euros):
(2) Including:
• commercial paper:
• “Tick’épargne” commercial paper:
(3) Including:
• accrued interest on IDF loans:
• accrued interest on Eurozone financial market:
• accrued interest on international financial markets:
• accrued interest on “Tick’épargne” loans:
(4) Including:
• loans at fixed interest rates:
• loans at floating interest rates:
99,045
99,045
0
0
1,037,020
1,037,020
0
0
109,761
41,550
23,524
44,687
774
0
774
0
5,998,470
2,180,583
1,661,408
2,156,479
923,483
802,731
190,000
139,936
1,516
54,647
6,063
8,596
3,741,884
539,545
85
Note 5.13c Net debt at December 31, 2008
12/31/2008
12/31/2007
Financial assets (A)
209,787
309,938
Marketable securities(1)(3)
184,417
281,101
25,370
27,666
Cash and cash equivalents(1)
Foreign currency translation adjustment
Loans and borrowings (B)
Île-de-France loan
Loan on financial markets
“Tick’épargne” loan
0
1,171
4,694,250
4,603,607
285,646
287,988
3,736,765
3,651,039
259,019
221,650
82,884
41,201
Commercial paper(2)
329,936
400,318
0
1,411
4,484,463
4,293,669
12/31/2008
12/31/2007
Foreign currency translation gains
NET DEBT (B – A)
(1) Excluding financial assets allocated to lease transactions; see details in note 21-a.
(2) See (2) table 13b.
(3) Excluding accrued interest.
Note 5.14 Receivables and payables at December 31, 2008
Receivables
Financial assets
1,753
1,732
Trade receivables and related accounts
35,861
41,237
State and local authority receivables(1)
169,732
226,223
17,282
18,321
148
680
Other receivables
TOTAL
0
0
224,776
288,193
Payables
1,516
1,582
54,647
47,229
Bonds on international financial markets(2)
6,063
3,518
Private bonds
8,596
6,239
19
22
112,898
153,459
Tax and social security liabilities
367,495
490,158
Payables to suppliers of assets and related accounts
201,282
123,025
26,527
21,202
779,042
846,433
Bonds on French financial market
Loans and borrowings from financial institutions
Other payables
TOTAL
(1) Including investment grants due but not yet received.
(2) In Swiss francs and yen.
86
Note 5.15 Other items included in several balance sheet accounts at December 31, 2008
POSITION AT
12/31/2008
12/31/2007
32
2
TOTAL
32
2
0
0
Payables for assets and related accounts
0
0
TOTAL
0
0
281,333
284,630
19,191
22,657
Commercial paper
Assets
Liabilities
Related Parties(1)
Assets
Financial assets
Other receivables
TOTAL
4,109
3,457
304,633
310,744
12
12
Liabilities
Payables for assets and related accounts
Other payables
TOTAL
3,050
2,399
11,176
27,176
1,498
1,224
15,736
30,811
(1) RATP Développement, Sqybus, Promo Métro, Logis-Transports, SEDP, SADM, Telcité, RATP International, Systra, Naxos, Mobicité, SLT, TVO, Orlyval, FlexCité, STBC,
M’dina Bus, FlexCité 94, EM Services, Société Billétique Monétique Services Cars Perrier, Equival, TP2A, Cars Giraux, Xelis.
Note 5.16a Average number of employees and retired employees paid by the company during the year
AVERAGE NUMBER OF EMPLOYEES
12/31/2008
12/31/2007
CHANGES
NUMBER
44,146
43,810
336
CHANGES
%
0.77
Breakdown by category
– Executives + managers
10,950
10,949
1
0.01%
– Other employees
33,196
32,861
335
1.02%
43,433
43,266
167
0.39%
714
543
171
31.49%
Breakdown by contract
– Indefinite
– Fixed-term contract
Note 5.16b Employee training rights
In accordance with the provisions of French Act no. 2004-391 of May 4, 2004 on vocational training, RATP grants its employees a minimum
of twenty hours’ individual training per calendar year, which can be accumulated for a six year period. If the rights are not used at the end
of the six year period, they are capped at one hundred and twenty hours.
As December 31, 2008, the number of hours accrued for training amounted to 3,207,593 hours.
The number of unused accrued training hours amounted to 3,204,551 hours.
87
Note 5.17a Compensation of directors and executive officers (in thousands of euros)
for the year ended December 31, 2008
2008
Members of the Board of Directors
Executive Officers (aggregate amount of the ten highest salaries)
2007
5
29
1,982
1,906
Note 5.17b Fees in thousands of euros
PRICEWATERHOUSECOOPERS
KPMG
289
276
24
44
313
320
Statutory auditors
Work/services directly related
TOTAL
Note 5.18 Subsidiaries and investments
SHARE
CAPITAL
ADDITIONAL
PAID-IN
CAPITAL
%
OF INTEREST
HELD BY RATP
CARRYING AMOUNT
OF SHARES
GROSS
NET
POSITION AT DECEMER 31, 2008
LOANS AND
ADVANCES
GRANTED BY
RATP AND NOT
YET REPAID(1)
GUARANTEES
GIVEN
BY RATP
REVENUE
EXCLUDING
VAT AT
DECEMBER 31,
2008
PROVISIONAL
NET RESULT
AT
DECEMBER 31,
2008
DIVIDENDS
GENERATED
BY THE RATP
IN 2008
1 – Subsidiaries
• SEDP
2, square Félix-Nadar
94684 Vincennes Cedex
(SIREN 380 038 687)
• RATP DÉVELOPPEMENT
Société de participation
pour l’exploitation
54, quai de la Rapée
75012 Paris
(SIREN 389 795 006)
• LOGIS TRANSPORTS
158, rue de Bagnolet
75020 Paris
(SIREN 592 025 811)
459
690
100,00
457
457
3,354
144
5,465
27
0
98,000
– 21,163
95,41
93,499
93,457
0
4,000
19,426
– 5,423
0
NA
NA
NA
NA
NA
19,665
576
741
260
2,033
0
17,834
2,625
2,570
40
NA
88,00
33
33
• PROMO MÉTRO
43-45, rue du GouverneurGénéral-Félix-Éboué
92130 Issy-Les-Moulineaux
(SIREN 712 029 099)
910
2,952
100,00
2,619
2,619
• RATP INTERNATIONAL
54, quai de la Rapée
75599 Paris Cedex 12
(SIREN 419 997 044)
19,721
2,909
100,00
19,721
19,721
1,525
14,768
100,00
1,524
1,524
272,774
– 1,576
49,89
137,420
137,420
NA
NA
10
7,981
3,811
20,995
ND
7,00
3,770
0
NA
NA
NA
NA
NA
400
48
• TELCITÉ
1, avenue Montaigne
93160 Noisy-Le-Grand
(SIREN 411 759 962)
2,250
2 – Other investments
• FINANCIÈRE TRANSDEV
6, place Abel-Gance
92100 Boulogne-Billancourt
(SIREN 442 610 788)
• BMS
25, rue de Ponthieu
75008 Paris
(SIREN 423 749 886)
• Other
(1) Including accrued interest.
NA = data not available.
88
Note 5.19 Economic interest groups
POSITION AT DECEMBER 31, 2008
RATP %
OF OVERHEADS
Eurailtest
1, boulevard Saint-Martin
75003 Paris
(SIREN 421 526 468)
10%
Comutitres
185, rue de Bercy
75012 Paris
(SIREN 433 136 066)
33,33%
Emif (no activity)
54, quai de la rapée
75012 Paris
(SIREN 438,281 461)
50 %
Sectrans
In liquidation
Quai 54
In liquidation
Tothème 54
In liquidation
89
Note 5.20 Off-balance sheet commitments at December 31, 2008
12/31/2008
12/31/2007
1,157
1,157
Commitments given
1 – Subsidiaries and investments
– Guarantee for LOGIS-TRANSPORTS
– Guarantee for SEDP
144
144
4,000
4,000
– Guarantee for IAPR
265
265
– Guarantee for Compagnons du Voyage
600
700
14,981
13,691
– Employees: “Low income housing” guarantees
312,916
326,609
– Retirement benefits
176,616
197,492
– Guarantee backing a security given by RATP Développement
2 – Not-for-profit entities
– Guarantee granted for CapVille
3 – Employee benefits
– Employee loans: guarantee granted for SBE
– Death indemnities for employees in service
12,384
12,035
– Death indemnities for retired employees
24,199
34,171
122,369
115,579
– Guaranteed contribution under the corporate savings plan for retired employees
37,283
33,468
– Early retirement
17,564
11,577
– Cross currency swaps on bonds(a)
849,417
629,365
– Interest rate swaps on bonds(a)
698,000
896,000
– Interest rate swaps on commercial paper
139,337
0
– FRA
100,000
0
0
98,000
198,000
98,000
50,000
50,000
1,520,133
1,837,942
– Pensions for work-related illnesses and accidents to retired employees and those with vested rights
4 – Financial transactions
– Caps (puts)
– Floors (puts)
– Swaptions (puts)
– Lease-transactions: sub-leases of
trains(b)
– Other commitments given
TOTAL
1,000
1,500
4,280,365
4,361,695
849,417
629,365
698,000
896,000
Commitments received
– Cross currency swaps on bonds(a)
– Interest rate
swaps(a)
– Interest rate swaps on commercial paper
139,337
0
– Caps
198,000
50,000
– Floors
– FRA
– Buyback options on bonds
– Bank credit letters
– Bank guarantees
TOTAL
0
50,000
100,000
0
50,000
50,000
0
57,162
139,159
128,509
1,324,496
1,231,671
(a) RATP has opted to account for swaps in the same way as for traditional loans and borrowings.
The breakdown of swaps by maturity is as follows:
Interest rate swaps (on bonds and commercial paper)
< 1 YEAR
1 to 5 YEARS
> 5 YEARS
TOTAL
289,337
0
548,000
837,337
(b) A bank credit letter for a maximum of €131 thousand was issued in the first half of 2008 to guarantee payment obligations to TRUSTS.
Additional information regarding employee benefits:
The discount rate used to calculate post-retirement benefits was 5.25% at December 31, 2008. The rate at December 31, 2007 was 5%.
90
Note 5-21a Lease transactions and sub-leases
I – American lease transactions (in thousands of euros)
Impact on cash position
LEASES
1998
1999
2000
2001
Main lease payment income
560,061
1997
269,516
228,874
840,625
639,985
454,943
2002
Sublease expenses
526,587
239,242
205,264
799,837
600,768
447,049
RATP NET PROFIT
33,474
30,274
23,610
40,788
39,217
7,894
As the leases are effective over variable periods, the profit generated is recorded as extraordinary income over the terms of the leases.
Impact on net income for 2008 (in thousands of euros)
Leases generated income of €10,460 thousand at December 31, 2008:
LEASE SIGNATURE DATE
Income from main leas(1)
Interest paid on
sub-leases(2)
Provision reversal(3)
Prepaid interest
Sublease expenses(4)
Income from other leases
Early buyout option
Expenses
Excess lease payments
Provision for termination costs(3)
1997
1998
68,691
41,221
2000
2001
2002
TOTAL
RAPPEL 2007
154,048
1999
28,699
20,723
21,291
334,673
338,751
18,584
14,863
8,646
61,988
35,366
13,647
153,094
167,959
261,543
0
20,473
1,791
0
0
283,807
427,012
3,216
1,934
3,750
8,900
8,575
30,655
16,077
10,415
170,570
223,579
695
1,572
82,718
129,675
24,365
59,010
30,048
695
82,718
657
26
177
517
175,709
60,301
40,496
157,925
30,776
23,605
27,125
1,377
63,549
175,709
188,568
340,228
322,064
0
437
Currency translation adjustment
Interest on loans
NET INCOME
107
2,689
1,419
877
2,585
2,259
631
107
128
10,460
16,743
(1) The main lease payment is received in full upon signature of the lease. The annual instalment is recorded in the income statement as a balancing entry against prepaid income.
(2) Interest received or to be received on sub-lease payments to financial institutions (deposits).
(3) Income from the termination indemnity and excess lease payments is spread on a straight-line basis over the term of the leases.
(4) Sub-leases paid or payable by financial institutions.
Sublease expenses, income from the main lease and interest are recorded under extraordinary income and expenses.
The provision for final termination cost is recorded under extraordinary expenses.
II – Swedish lease
Impact on cash position (in thousands of euros)
LEASES
2002
2003
Swedish lease tranche 1 completed in 2002
620
–
2004
–
118
1,444
RATP NET PROFIT
620
–
1,562
Impact on 2007 net income
12/31/2008
Deferred amortization of NPV
124
12/31/2007
124
(2) See note § 3-12.
91
Note 5-21b Lease purchase commitments at December 31, 2008 (in thousands of euros)
RATP has two lease-purchase contracts with floating rate payments. They are covered by fixed-rate hedging instruments. The figures presented
below include the hedges.
LEASE
AGGREGATE VALUE
TERM
Cours de vincennes
5,336
15
RESIDUAL VALUE
0
Philidor Maraîchers
25,308
25
2,373
LEASED ASSETS
INITIAL COST
DEPRECIATION CHANGE
NET VALUE
BALANCE SHEET ITEMS
YEAR (1)
ACCUMULATED (1)
30,644
1,472
8,670
21,974
90
13
13
78
30,734
1,485
8,683
22,051
+ 5 YEARS
RESIDUAL
PRICE
Land
Buildings
Plant, property and equipment
Other property and equipment
Work in progress
TOTAL
(1) Depreciation for the period and the accumulated depreciation that would have been recorded had RATP owned these assets.
LEASE COMMITMENTS
BALANCE SHEET ITEMS
INSTALMENTS PAID
AT YEAR END
PAYMENTS OUTSTANDING
ACCRUED
UP TO 1 YEAR
1 TO 5 YEARS
Land
Buildings
2,259
14,285
2,444
9,874
30,816
2,373
11
11
20
69
0
9
2,270
14,296
2,464
9,944
30,816
2,382
Plant, property and equipment
Other property and equipment
Work in progress
TOTAL
92
Attestation of the persons responsible for the annual report
We, the undersigned, hereby attest that to the best of our knowledge the financial statements have been prepared in accordance with generally
accepted accounting principles and give a true and fair view of the assets, liabilities, financial position and results of operations of the company
and all the companies consolidated, as well as a description of the main risks and uncertainties facing them.
Chairman and Chief Executive Officer
Chief Financial Officer
Pierre Mongin
Alain Le Duc
(en milliers d’e
no
44 752 45 7399
nss incorporelles
Note
ons co
orporelles Note 4.7
de placem
ment
277 7
ns dans les entreprises associées
157 737
disspo
ponibles à la vente
cierss dé
d rivés
Notte 4.8 15 128
ers
86 683 86 016
2 314 2 348
St
C ien
Cl
Financial report
Crréances
Actifs destinés à être v
Instru
rume
ume
RATP financial report 2008
Autres acct
Trésorr
Actiif
RATP
Communications department
54, quai de la Rapée • 75599 Paris Cedex 12
www.ratp.fr
8 380
8 7227
9 0333 825
155 299

President`s report 2008

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