SNCF GROUP – 2020 HALF-YEAR RESULTS— 30 JULY 20201

2020 HALF-YEAR RESULTSSNCF GROUP

30 JULY 2020

SNCF GROUP – 2020 HALF-YEAR RESULTS— 30 JULY 20202

LAURENT TRÉVISANI

DEPUTY CEO FINANCIAL STRATEGY, SNCF GROUP

SNCF STEPS UP IN A HALF YEAR SLAMMED BY STRIKES IN JANUARY, FOLLOWED BY THE COVID-19 PANDEMIC

SNCF GROUP – 2020 HALF-YEAR RESULTS— 30 JULY 20203

+ 1% of sales vs 16.2% in H2 2019

+ Covid-19 crisis: -€3.2bn

+ January strike: -€240m

GROSS PROFIT-EBITDA €136m

KEY FIGURES FOR H1 2020

NET PROFIT - €2.4bn

+ Stepped-up crisis mitigation plan deployed to cut costs, scale back projects and investments, and optimize liquidity. Full-year target €1.8bn.

CASH FLOWS +1.1bn

+ Down -21% from H1 2019

+ Covid-19 crisis: -€3.9bn

+ January strike: -€275m

REVENUE €14.1bn

The first half of the year was marked by labour disputes in January and, from 17 March on, the Covid-19 pandemic, both taking a heavy toll on SNCF Group and all rail activities.

+ Linked directly to impact of fall in EBITDA on financing capacity- €2.8bnFREE CASH FLOW

+ French State assumes €25bn of SNCF debt at 1 January 2020

+ Negative free cash flow: -€2.8bnNET DEBT - €38.3bn

+ Compared with €20m at 30 June 2019

SNCF GROUP – 2020 HALF-YEAR RESULTS— 30 JULY 20204

DURING LOCKDOWN, SNCF BUSINESSES COMPLIED WITH GOVERNMENT-IMPOSED RESTRICTIONS, DOING THEIR PART TO DELIVER ESSENTIAL SERVICES — AND MORE

SNCF Réseau pressed ahead with high-priority maintenance and urgent engineering works.

Geodis quickly scheduled charters to transport urgent shipments as normal air freight capacity was scaled back.

Geodis also played a decisive role in supplying masks to all of France, and set up an air freight service between China and France.

High-speed hospital trains transported critically ill patients to regions with available hospital beds, while other trains carried essential healthcare workers to communities hit hardest by the virus.

Rail freight services carried food, fuel, chlorine and other essentials to keep strategic production sites operating smoothly.

Transilien, TER and Keolis-operated networks cut service to the strict minimum, but continued to operate for workers commuting to essential jobs.

SNCF GROUP – 2020 HALF-YEAR RESULTS— 30 JULY 20205

PASSENGER NUMBERS PICKED UP AFTER THE JANUARY STRIKES, BUT RECOVERY CAME TO AN ABRUPT END AS COVID-19 HIT AND FRANCE ENTERED LOCKDOWN.

TER regional rail passengers (per month)(MILLIONS OF PASSENGER-KILOMETRES)

TGV high-speed passengers (per month)MILLIONS OF PASSENGERS

0

200

400

600

800

1 000

1 200

1 400

1 600

Janv Fev Mars Avril Mai Juin0

2

4

6

8

10

12

Janv Fev Mars Avril Mai Juin

-59%-88%-95%-53%-45%-87%-94%-33%-23% -16%

2019 2020 2019 2020

+6%+4%

-€50%vs H1 2019

-55%vs H1 2019

SNCF GROUP – 2020 HALF-YEAR RESULTS— 30 JULY 20206

RAIL SUFFERED MORE THAN OTHER FREIGHT BUSINESSES

RAIL FREIGHT: HIT FIRST BY JANUARY STRIKES, THEN BY COVID-19

0

200

400

600

800

1 000

1 200

1 400

1 600

1 800

Janv Fev Mars

-18%-30% -7%

SNCF Fret monthly trafficMILLIONS OF TKM

ASIA:IMPACT FROM

FEBRUARY

EUROPEIMPACT FROM

MARCH

UNITED STATES

E-COMMERCEDROVE

GROWTH

FROM MAY ON, GLOBAL FREIGHT VOLUMES RETURNED QUICKLY TO PRE-CRISIS LEVELS, WITH AIR FREIGHT CHARTERS PROVIDING A PARTICULAR BOOST.

BUSINESS VOLUMES ROSE MORE GRADUALLY IN RAIL FREIGHT FOR THE AUTOMOTIVE INDUSTRY AND MANUFACTURING.

BY JUNE, BUSINESS WAS HOVERING BETWEEN 90% AND OVER 100% OF NORMAL LEVELS WORLDWIDE, DEPENDING ON THE SECTOR AND THE COUNTRY.

GEODIS SUFFERED LESS FROM THE PANDEMIC, AND BOUNCED BACK TO PRE-COVID VOLUMES MORE QUICKLY

SNCF GROUP – 2020 HALF-YEAR RESULTS— 30 JULY 20207

-€700 million

REVENUE WAS MORE RESILIENT IN FREIGHT THAN IN PASSENGER TRAVELGEODIS UP +0.3%, TGV DOWN -58%

-21%

REVENUE H1 2019

14.1

REVENUE IN €BN

-37%

REVENUE H1 2020

SNCF Voyageurs-58% TGV -17% TER

-14% Transilien

-12%

Keolis SNCF Réseau

-5% SNCF Gares & Connexions

+0.3%

17.9

Geodis

-20%

TFMM rail & multimodal freight

transport

-20%

-€120 million-€325 million-€350 million-€3bn

Incl €2.4bn for TGV

Impact of Covid-19

X%

XX

Change in revenue

SNCF GROUP – 2020 HALF-YEAR RESULTS— 30 JULY 20208

CRISIS MITIGATION PLAN HELPED KEEP GROSS PROFIT-EBITDA JUST ABOVE BREAK-EVEN AFTER HEAVY TOLL OF JANUARY STRIKES AND COVID-19

-€2.8bn

136

EBITDAIN €M

€3,200m

Gross profit-EBITDAH1 2020

Health crisis

-€240m

January strikes

+€350m

2,888

Crisis mitigation plan

Gross profit-EBITDAH1 2019

+€338m

Other scope and inter-segment eliminations

SNCF GROUP – 2020 HALF-YEAR RESULTS— 30 JULY 20209

AT €136M, GROSS PROFIT-EBITDA REFLECTS HEAVY TOLL OF COVID-19 CRISIS (-€3.2BN) AND JANUARY STRIKES (-€240M)

136

EBITDAIN €M

-2,000

Gross profit-EBITDAH1 2020

SNCF Voyageursincl -€1.5bn for TGV

-120

Keolis SNCF Réseau

-135

2,888

Geodis

-720-70

Gross profit -EBITDAH1 2019

TFMM rail & multimodal freight

transport

COVID IMPACT ON EBITDA BY BUSINESS

SNCF GROUP – 2020 HALF-YEAR RESULTS— 30 JULY 202010

+€1.8bn

SNCF RESPONDED WITH A SWEEPING PLAN TO MINIMIZE THE IMPACT ON GROUP FINANCES OF BOTH THE JANUARY STRIKES AND COVID-19

NO IMPACT ON:

• Investments essential to network and rail operations

• Rail-sector jobs

Investment totalled €3.7bn in H1 2020 (65% financed by SNCF) and focused on priority rail works

Recruitment of rail-sector staff planned for 2020 in France is unchanged.

Some project costs trimmed or postponed

EXPENSES

-€350m

CASH

+€600m

+€1.1bn AT 30 JUNE 2020

Activation of cash flow levers (including +€300 m from securitizing the 2017 CICE tax credit receivable

Review of investments INVESTMENTS

-€130m

2020 TARGET

FREE CASH FLOW

SNCF GROUP – 2020 HALF-YEAR RESULTS— 30 JULY 202011

+20

-2,786 -2,389

Lower interest expense

IMPACT OF CHANGE IN EBITDA

Net profit at 30 June 2019

Net profit at 30 June 2020

+330

IMPACT OF TRANSFER TO FRENCH STATE OF PART OF

SNCF DEBT

NET PROFIT WAS A NEGATIVE -€2.4BN

Other scope and inter-segment eliminations

+47

NET PROFIT IN €M

SNCF GROUP – 2020 HALF-YEAR RESULTS— 30 JULY 202012

DESPITE COVID-19, URGENT INVESTMENTS ESSENTIAL TO RAIL SYSTEM AND SERVICE QUALITY CONTINUED

€3.7bn (-€600M VS H1 2019) WITH 65% FINANCED BY SNCF

+ €2.1bn to regenerate and upgrade existing rail network

+ €1.2bn to acquire rolling stock including 43 new passenger trains: 9 Francilien, 15 Régiolis, 1 Régio2N et 5 TGV trainsets

+ €0.4bn to upgrade and renovate stations, Technicentres, passenger information and more

95%SPENT ON

RAILIN FRANCE

SNCF GROUP – 2020 HALF-YEAR RESULTS— 30 JULY 202013

FREE CASH FLOW AT A NEGATIVE -€2.8 BNWAS DIRECTLY HIT BY LOWER SELF-FINANCING CAPACITY LINKED TO THE STEEP FALL IN GROSS PROFIT-EBITDA

IN €M

-€1,186m*-1,666

-2,457

+653

+667

-2,809

Free cash flow30/06/2020

Free cash flow30/06/2019

CASH TRANSACTIONS AND DISPOSALS

Self-financing cap

INVESTMENTS DELAYED

*At constant scope of consolidation and exchange rates

Strikes and Covid-19: -€2,786m from EBITDALower interest expense: +€288mLower taxes: +€63m

SNCF GROUP – 2020 HALF-YEAR RESULTS— 30 JULY 202014

AFTER TRANSFER OF PART OF SNCF’S DEBT TO THE FRENCH STATE ON 1 JANUARY 2020, THE FALL IN FREE CASH FLOW TRIGGERED BY THE CRISIS LED TO A RISE IN DEBT

Net debt01/01/2020

3) Partial transfer of

SNCF Réseaudebt

Impact of negative free cash flow

Net debt30/06/2020

35.3

-25.0+2.8

38.3

IN €BN

Net debt31/12/2019

60.3

Other scope and inter-segment eliminations

+0.2

SNCF GROUP – 2020 HALF-YEAR RESULTS— 30 JULY 202015

BUSINESS DEVELOPMENT CONTINUED, DESPITE THE PANDEMIC

Spain

10-year framework agreement signed, marking SNCF’s official entry into the country’s high-speed rail market

Keolis contracts extended

• United Kingdom: Southeastern• Denmark: Odense bus network

• United States: Boston suburban rail network; rail service in Virginia and in Washington, DC

Denmark

Keolis wins new electric bus contract for Greater Copenhagen

SNCF GROUP – 2020 HALF-YEAR RESULTS— 30 JULY 202016

H2 FOCUS: RECOVERY IN BUSINESSWITH VIGILANCE TO KEEP PASSENGERS SAFE DURING COVID-19

RECOVERY PLAN

SummerMore special offers, including the sale of heavily discounted tickets for both TGV and TER services, to increase train occupancy.

September• recovery plan focused on adapting price bands and digital tools to new

customer behaviours, in particular working from home.• new multimodal offers for occasional travellers• ambitious sales strategy targeting business travellers

COMPETITION IN HIGH-SPEED RAIL

Since July, OUIGO has been running from Paris to Lyon city centre, ahead of the route opening up to competition.

RAIL RECOVERY PLAN: talks are now under way with the French State to define the financial support needed to strengthen the resilience of the national rail network and deliver rail services as planned with healthy finances.

SOUND LIQUIDITY: SNCF Group currently enjoys sound liquidity that enables it to meet its obligations. Investor confidence has not wavered, as shown by the recent successful rounds of bond issues. In mid-July, the Group had liquid resources of €6.8bn, plus an available credit facility of €3.5bn.

SNCF GROUP – 2020 HALF-YEAR RESULTS— 30 JULY 202017

THANK YOU!