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FINANCIAL REPORT

Management report

The President’s report

Consolidated fi nancial statements

Financial statements

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Chairman and Chief Executive Offi cer Pierre Mongin Chief Financial Offi cer Alain Le Duc

Attestation of the

persons responsible

for the annual report

We, the undersigned, hereby attest that to the best of our knowledge the fi nancial statements have been prepared in accordance with generally accepted accounting principles and give a true and fair view of the assets, liabilities, fi nancial 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.

SUMMARY

2

MANAGEMENT REPORT

RATP Epic and RATP group

10

THE PRESIDENT’S REPORT

86

FINANCIAL STATEMENTS

30

CONSOLIDATED

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TELCITÉ % SEDP % PROMO MÉTRO % RATP  INTERNATIONAL % RATP DÉVELOPPEMENT% NAXOS % SADM % GROUPE SYSTRA .% IXXI % METROLAB % FLEXCITÉ .% FLEXCITÉ  % FLEXCITÉ TAD % TVM % MOBICITÉ % CTY % EM SERVICES % JACQUEMARD ET CIE % ORLYVAL SERVICE % TPA % SCI PIMIAN % GIRAUX EURE ET LOIR % SCI PARC

DE SAINTE CLAIRE % RATP DEV FRANCE INVESTISSEMENTS % RATP DEV FRANCE SERVICES % CTVMI % CÉOBUS % CARS PERRIER % SCI SOFITIM % TIM BUS .% SLT % STIVO % CITÉ BLEUE % GEMBUS % SCI LA PROCESSION % CARS DUNOIS % VOYAGES DUNOIS % ALPUS FOURNIER % CHAMPAGNE MOBILITÉS % MOULINS MOBILITÉS % STDM % STI ALLIER % STI CENTRE % STI HAUTESAVOIE % STU BOURGES % STU VIERZON % VIENNE MOBILITÉS % STILE % CTCM CHARLEVILLEMÉZIÈRES % MATEM % RATP DEV ITALIA % RATP DEV SUISSE % RATP DEV UK % RATP DEV USA LLC % CASA TRAM % EL DJAZAÏR % BOMBELA

OPERATING COMPANY % VEOLIA

TRANSPORT RATP ASIA %

FLEXCITÉ  % FLEXCITÉ  % FLEXCITÉ  % FLEXCITÉ  % FLEXCITÉ  TSE % EMS RENNES % .% SCI FONCIÈRE RD .% .% SCI PERRIER .% SQYBUS .% .% SELT % STIVIMMO % %

CARS SAINT MARTIN .% ODULYS % VOYAGES DESBIOLLES % TRAM DI FIRENZE .% HERM .% GEST SPA % AUTOLINE TOSCANE % LFI .% RATP DEV GENOVA % DOLOMITI BUS .% HELVÉCIE SA % RATP DEV SUISSE TP % BOURNEMOUTH TRANSPORT .% LONDON UNITED BUSWAYS % BATH BUS COMPANY % METROLINK % H R RICHMOND LTD % MC DONALD TRANSIT ASS. .% FULLINGTON AUTO BUS COMPANY .% SETRAM % % VTR CHINA % VTR KOREA % MODÈNE .% TFT SPA % RFT SPA % % RDMT  DC % VTCL % MACAO % VTR CONSULTING % VT KOREA % NANJING JV % TRAMWAY HONG KONG % SÉOUL LIGNE  % NANJING ANQING .% NANJING HUAIBEI % NANJING HUAINAN .% NANJING MAANSHAN % RE A L PRO PER T Y, MA R K ET IN G & T EL ECO M S ENGINEERING TR AN SP ORT Transport Division Engineering Division

Real Property, Marketing & Telecoms Division

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1 • PRINCIPAL DEVELOPMENTS

IN 2012

1.1 Transport

RATP Epic

The new agreement with the Île-de-France transport authority (Stif) came into eff ect in 2012 and extends until 2015. The legal context has changed, with the implementation of the French ORTF law no. 2009-1503 on public passenger transport services by rail:

• Operating rights for transport operations are henceforth limited in dura-tion to enable competidura-tion; based on the current status of legisladura-tion and information available, RATP has opted to apply IFRIC 12 “Service Con-cession Arrangements” as of January 1, 2012 to account for returnable concession assets (mainly rolling stock) and reversionary concession assets (mainly bus stations);

• RATP is entrusted with infrastructure management activities, which are not open to competition.

The requirements under the new agreement are higher, and provide for €3.6 million in quality service incentives and €10.2 million in penalties. The agreement also sets out capital expenditure governance rules, in particu-lar with regard to RATP’s responsibilities and the procedure for approving capital expenditure by the Île-de-France transport authority.

In 2012, RATP’s results were in line with those forecast in the agreement, with no progress from the 2011 improvement in RATP’s economic equilib-rium. RATP achieved its 2008-2012 business plan objective of a 1.5% gain in annual productivity, excluding growth eff ects.

In 2012, RATP’s traffi c fi gures were stable at 3,096 million journeys. How-ever, paid journeys were up 0.9% (as was the case in 2011), slightly above the 0.8% increase provided for in the agreement. RATP’s 2012 results refl ect the change in the value index applied for the Île-de-France transport authority agreement from 2.6% in 2011 to 1.8% in 2012.

Revenue reported by the RATP parent company was up by €26 million (2.5%), excluding infl ation eff ects (1.9%). RATP’s EBITDA amounted to €1,100 million in 2012, up by €38 million or 3.6% due to the increase in revenue and productivity improvements of €12 million.

RATP Epic’s cash fl ows from operations amounted to €833 million, up by €22 million or 2.8% compared with 2011: growth in EBITDA was €38 mil-lion and was partially eroded by the €11 milmil-lion increase in fi nancial costs (mainly due to borrowings issued early to take advantage of low interest rates).

Net income (€286 million) refl ected €22 million in non-recurring items (including gains arising from the sale of property). In 2011, net income

amounted to €295 million, including a €42 million gain on the disposal of the investment in Transdev. As a result, excluding non-recurring factors, parent company net income was €11 million higher in 2012 than in 2011. In 2012 RATP Epic prepared separate fi nancial statements for infrastruc-ture management and transport operations for the fi rst time, in accordance with the provisions of the French law of June 3, 2010. EBITDA, net income and debt were in line with the company’s fi nancial targets.

• The infrastructure management CGU generated EBITDA of €407 million, net income of €83 million and cash fl ows from operations of €282 million; • The transport operations CGU generated EBITDA of €693 million, net income of €202 million and cash fl ows from operations of €552 million; • Net debt amounted to €2,745 million and €2,470 million for the infra-structure management and transport operations activities, respectively. Other developments in France

Business activity was buoyant compared with 2011 levels:

• Business wins with new contracts for line A14 connecting Les Mureaux to La Défense, the Charleville-Mézières network, the management of the Rennes bus and coach station and additional services in the Rhône-Alpes/ Switzerland region;

• Strong organic growth, particularly in activities relating to the transport of persons with reduced mobility and transport in the Centre and Île-de-France regions, alongside important renewals of the Bourges, Château-dun, Moulins and FlexCité 91 contracts, in addition to school contracts in the Centre of France.

The economic environment worsened, having already adversely aff ected the end of fi nancial year 2011, with the general hike in diesel prices, and more stringent contractual conditions, particularly in the Île-de-France region.

Business recovery plans were implemented in the subsidiaries taken over following the Transdev transaction. With the exception of the Vienne Mobil-ité contract, and low revenue from business in the East of France, plans were well underway in all subsidiaries concerned.

Award of the Boulogne network contract, with no impact on the fi nancial statements, since the takeover became eff ective on January 1, 2013. The full-year eff ect of the business activities acquired during 2011 or oper-ating at the end of 2011, such as the Manchester tramway network, the Macao bus services and the Algiers metro.

Confi rmed success of business in South Africa, with the latest opening of a station on June 7, 2012. The Gautrain is now fully operational.

The acquisition of a family fi rm based in Epsom to bolster London-based activities, during the fi rst half.

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Business wins boosting expansion of the Group’s activities in the United States and the Maghreb. In the United States, Mac Donald and RATP Dev USA were awarded the Austin network contract and the contract for the future Washington DC tramway line, scheduled for the end of 2013. In the Maghreb, the Group has permanently set up operations, in partnership with the Algiers metro company and ETUSA, to operate the Algiers tramway and future transport services in Oran and Constantine (launch of opera-tions planned in 2013-2014). In Morocco, RATP Dev (as part of a partner-ship agreement) was awarded the operating contract for the Casablanca tramway, launched on December 12, 2012.

In Italy, operating contracts performed well, despite budget restrictions on the network service off ering. This led RATP Dev to acquire the usufruct of 49% of Gest’s shares, which operates the Florence tramway, and to engage in work to restructure services in the Modena region.

Mixed performance among countries with regard to tourism-related ser-vices, with a decline in business in the United Kingdom and excellent results in France.

Strong results on Asian contracts, excluding ongoing diffi culties in Macao. Award at year end of the management of the tramway in Tucson, Arizona (USA). Tramway operations are scheduled to begin at the end of 2013.

1.2 Engineering

New Systra: merger of Systra, Xelis and Inexia

Recall: since June 30, 2011, the Systra group has been equity-accounted in RATP group’s fi nancial statements.

At June 30, 2011 the change in consolidation method resulted in the rec-ognition of a gain of €45 million, reported in RATP group’s consolidated net income, in accordance with IAS 31, when the interests retained by the Group in Systra and Xelis were measured at fair value.

Xelis and Inexia were fully consolidated on January 3, 2012, with the con-tribution of the remaining shares. Inexia and Xelis have been merged into Systra since July 1, 2012. From a functional perspective, since the start of 2012 the Group has continued to reorganize the new entity. In December, employees moved to the new head offi ce located in rue Henry Farman in the 15th district in Paris.

Net income attributable to owners of the Company now includes the 41.92% Systra interest.

Engineering business and results

Systra’s business performance was down slightly compared with the 2011 levels achieved by the three entities consolidated following the merger. The decline was mainly due to the slowdown in the Middle East, with the decline in Dubai metro business, the sale of Sotec in France, and the unfavorable economic climate in the United States.

However, Systra won signifi cant business in all areas: in France with the LGV Est (an extension to the French high-speed rail network) and the Nimes-Montpellier railway bypass; in Chile with metro lines 3 and 6; in Ho Chi Minh City for the design of the aerial portion of metro line 1; in the

United Arab Emirates with the Al Sufouh Tramway and in Azerbaijan with the Baku metro.

In terms of profi t, there were great disparities with unfavorable adjustments to profi t on completion for several tramway contracts in France and cer-tain contracts in Asia. The negative eff ect was partially off set at the end of the year by additional contracts and risk reduction on certain contracts, particularly for high-speed trains in France.

As in 2011, Systra Group’s earnings included the costs of integrating the new entities and reorganizing structurally, with the accounting entries relat-ing to the allocation of the acquisition price followrelat-ing the measurement to fair value of the assets.

1.3 Real property, marketing & telecoms

With regard to real property, marketing & telecoms, development of the network of activities more than compensated for the start of renovation work at Châtelet-Les-Halles and cost-cutting measures by telecom opera-tors. The year was also marked by business wins by subsidiaries in connec-tion with the Greater Paris transport scheme, advisory assignments for Promométro and SEDP, and management contracts for Marseilles and Lyons network boutiques.

The implementation of the 3G/4G agreement in the metro and regional express service following the agreements entered into with Bouygues and SFR had no impact on the 2012 fi nancial statements.

2 • CONSOLIDATED RESULTS

AT DECEMBER 31, 2012

The consolidated results are refl ected in the following fi nancial indicators: • Revenue, which compared with December 31, 2011 was impacted both

by the full-year eff ect of the termination of the engineering contribution, and by the fi rst-time application of IFRIC 12. On a like-for-like basis, rev-enue was up 6.1%;

• Operating income, which was signifi cantly lower in light of the non-recur-ring income in 2011 (completion of the Transdev and Systra transactions), but up €34.8 million excluding these items;

• Net income attributable to owners of the company, which amounted to €285 million. It was down by €52.5 million, but up €24.8 million excluding 2011 non-recurring income;

• Equity, which was down by almost €216 million compared with the end of 2011, due to the eff ects of the French ORTF law and the agreement signed between RATP and the Île-de-France transport authority on Sep-tember 21, 2012;

• And net debt, which increased by €158 million compared with year end 2011.

Group capital expenditure amounted to €1,565 million, up again compared with 2011. The increase was mainly due to tramway and metro extensions, including the extension of lines T3 to Porte de la Chapelle, T2 to Bezons, T1 from Saint-Denis to Asnières-Genevilliers and metro line 12 to Mairie d’Aubervilliers and new trains for lines A and B of the regional express ser-vice and metro lines 1, 2, 5 and 9. High levels of expenditure continued on tramway operations in connection with the State-Regional Contractual

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Plan (including tramway lines T7, T3, T5, T6 and T8), and metro lines 4, 12 and 14.

Generally, RATP continued to contribute the greatest share to the indi-cators, but at the end of 2012 the subsidiaries’ business showed strong growth, contributing 15.5% to the Group’s total activity, compared with 13.6% at the end of 2011. This fi gure is all the more remarkable given that engineering no longer contributes to revenue.

It is important to note that, in connection with the implementation of the ORTF law, RATP and the Île-de-France transport authority jointly requested arbitration to determine the amount of fi nancial compensation due for fully-owned assets transferred from the Île-de-France transport authority to RATP at January 1, 2010. This amount was set at €200 million through an inter-ministerial order published on February 16, 2013. As the compensation was required by the ORTF law, it was accounted for retro-actively from January 1, 2010 under assets with an off setting entry corre-sponding to the liability payable to the Île-de-France transport authority. Given the date of the inter-ministerial order, the information required to allocate the compensation to individual assets and any associated depre-ciation was not available before the reporting date. The calculation will be performed in 2013, when the distinction will be drawn between deprecia-ble and non-depreciadeprecia-ble components.

Finally, the following data on RATP Epic’s contribution include the research and development costs incurred by Metrolab in connection with the “metro of the future”.

2.1 Consolidated revenue

RATP’s share of revenue fell signifi cantly by €137 million between 2011 and 2012. The decline was due to the impact of the implementation of IFRIC 12 on the consolidated fi nancial statements. The actual change in RATP Epic’s revenue was an increase of €142 million, reduced by €280 million due to the implementation of IFRIC 12.

The increase in RATP’s revenue was mainly due to the application of a 1.8% discount rate to remuneration from the Île-de-France transport authority and a 0.5% increase in services (preparation for the opening of new tramway lines), partially off set by changes in presentation and more stringent conditions with regard to contractual service quality incentives. The contribution of the subsidiaries was up by €89 million, representing growth of €155 million or 26% increase on a like-for-like basis. Recall that the fi nancial statements at December 31, 2011 included a half year of engineering business revenue, and engineering no longer contributes to revenue (since July 1, 2011).

Subsidiaries’ contribution to revenue decreased by €4 million due to the impact of the implementation of IFRIC 12.

Subsidiaries’ share of revenue increased from 13.6% in 2011 to 15.5% in 2012 (14.7% excluding eff ects of IFRIC 12). The growth was mainly attrib-utable to subsidiaries in the transport business, in particular as a result of activities set up in 2011 (acquisitions and launch of operations).

The most signifi cant events included the acquisition of the Metrolink sub-sidiary in the United Kingdom in August 2011, the launch of operations in Macao in August 2011 and the opening of the Algiers metro in November 2011 and section 2 of the Gautrain in South Africa. The merger of the Mod-ena, Piacenza and Reggio-Emilia networks into SETA (formerly ATCM) in Italy also contributed to improved business performance.

Growth in transport subsidiaries’ revenue was boosted by new business wins in 2012. In France, these included the award of the A14 and Char-leville-Mézières contracts and the renewal of the Bourges contract. Inter-nationally, they included the acquisition of the Epsom subsidiary in the United Kingdom and the award of the bus contract in Austin, Texas (USA) and tramway contracts in the Maghreb. Revenue was also bolstered by strong performance from business relating to the transport of persons with reduced mobility, the subsidiaries in the Centre region of France and services in Algeria.

In millions of euros

12/31/11 12/31/11 Excluding engineering subsidiaries 12/31/12 Excluding IFRIC 12 Change (C-B) 12/31/12 Including IFRIC 12 (A) (B) (C) As a % TRANSPORT 4,873.8 4,873.8 5,171.1 297.2 6.1% 4,887.4

RATP Epic (a) 4,305.9 4,305.9 4,448.2 142.3 3.3% 4,168.5

RATP Développement, RATPI and IXXI 567.9 567.9 722.9 154.9 27.3% 718.9

ENGINEERING (Systra Group) 65.9 0.0 0.0 0.0 - 0.0

REAL PROPERTY, MARKETING & TELECOMS 42.8 42.8 46.6 3.8 8.8% 46.6

• Promo Métro 21.3 21.3 22.6 1.3 5.9% 22.6

• Telecoms 20.2 20.2 21.8 1.6 8.2% 21.8

• Real property 1.4 1.4 2.2 0.9 64.3% 2.2

RATP group (b) 4,982.5 4,916.7 5,217.7 301.0 6.1% 4,934.0

Subsidiaries' contribution (b-a) 676.6 610.8 769.5 158.7 26.0% 765.5

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Transport subsidiaries’ business gained from positive exchange rates for the pound sterling and the dollar, partially off set by the depreciation in the South African rand. Revenue increased overall by €14.5 million due to the eff ect of changes in exchange rates. In addition, the contribution of subsidiaries in the United Kingdom increased mechanically due to the full-year eff ect of London United Busways business (approximately 11 months of business were accounted for in 2011).

Revenue from companies in the real property, marketing & telecoms divi-sion again increased signifi cantly by almost 9%.

2.2 Operating income (EBIT)

12/31/11 12/31/11 12/31/12 Change Change

In millions

of euros

(A) Excluding revenue from Transdev and Systra (B) (C) (C-A) (C-B) TRANSPORT 506.1 474.0 508.7 2.6 34.7

RATP Epic (a) 488.8 463.2 497.9 9.1 34.7

RATP Développement,

RATPI and IXXI 17.3 10.8 10.8 (6.5) 0.0

ENGINEERING (Systra Group) 47.9 0.7 0.0 (47.9) (0.7) REAL PROPERTY, MARKETING & TELECOMS 5.6 5.6 6.5 0.8 0.8 • Promo Métro 0.8 0.8 0.8 0.0 0.0 • Telecoms 4.1 4.1 4.7 0.7 0.7 • Real property 0.8 0.8 0.9 0.2 0.2 RATP group (b) 559.7 480.4 515.2 (44.5) 34.8 Subsidiaries' contribution (b-a) 70.9 17.2 17.3 (53.6) 0.1

Recall: the completion of the Transdev and Systra transactions had a signifi -cant impact on the 2011 fi nancial statements (€30.5 million in non-recur-ring transport income from the Transdev transaction and €45.2 million in engineering income from the Systra transaction before equity-accounting). Operating income (EBIT) decreased €44.5 million: adjusted for the Transdev and Systra transactions in 2011, operating income increased by €34.8 million, including €34.7 million for RATP.

For RATP, the €34.7 million increase included the impact of non-recurring transactions for €22 million and €12.7 million in operational improvements due to buoyant business and productivity gains.

With regard to the transport subsidiaries, profi tability was signifi cantly impacted by contract business cycles, with the termination of pre-operating activities in South Africa and Italy. In addition, successive major operational start-ups in 2010 and 2011 changed the overall economic profi le resulting in lower profi tability in the operating phases.

The profi tability of the transport subsidiaries was also aff ected by austerity plans in Europe, resulting in higher payroll-related expenses and the

con-tinued upward trend in diesel prices. In the United Kingdom subsidiaries suff ered from poor weather conditions and disturbances due to the Olym-pic games. Finally, loss-making business such as the Macao contract and the merged activities around Modena in Italy negatively impacted revenue. On a positive note, plans to turnaround French business arising from the Transdev transaction were well underway and began to yield results, while the operations launched in the Maghreb performed as expected. In vol-ume terms, operating income from transport subsidiaries remained stable compared with 2011.

The real property, marketing & telecoms division subsidiaries performed better due to buoyant business levels.

2.3 Net income

Changes in net income attributable to owners of the company between December 31, 2011 and December 31, 2012 were as follows:

12/31/11 12/31/11 12/31/12 Change Change

In millions

of euros

(A) Excluding revenue from Transdev and Systra (B) (C) (C-A) (C-B) TRANSPORT 287.2 255.1 280.8 (6.4) 25.7

RATP Epic (a) 277.5 251.9 272.6 (4.9) 20.7

RATP Développement,

RATPI and IXXI 9.8 3.3 8.2 (1.5) 5.0

ENGINEERING (Systra Group) 45.9 0.7 (0.5) (46.4) (1.2) REAL PROPERTY, MARKETING & TELECOMS 4.1 4.1 4.5 0.4 0.4 • Promo Métro 0.7 0.7 0.7 0.0 0.0 • Telecoms 2.9 2.9 3.2 0.3 0.3 • Real property 0.5 0.5 0.6 0.1 0.1 RATP group (b) 337.3 260.0 284.8 (52.5) 24.8 Subsidiaries' contribution (b-a) 59.8 8.1 12.3 (47.6) 4.1

Net income attributable to owners of the company decreased from €337.2 million at December 31, 2011 to €284.8 million at December 31, 2012, representing a sharp drop of €52.5 million. Adjusted in 2011 to exclude the eff ects of the Transdev and Systra transactions, overall net income increased by €24.8 million, bolstered by all Group entities, excluding Systra. The €20.7 million change for RATP included €22 million in non-recurring items. Growth in EBIT was eroded by the higher €11 million increase in

fi nancial costs, particularly due to the loan issued early to take advantage of low interest rates.

With regard to the subsidiaries, the change between 2011 and 2012 was once again impacted by engineering business, with Xelis performing extremely well in the fi rst half of 2011. In 2012, Systra’s contribution was slightly negative due to the costs of integrating business and the account-ing entries relataccount-ing to the allocation of the acquisition price.

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The transport subsidiaries performed better thanks to the positive results of the equity-accounted Asian contracts, and lower tax expenses. Changes in the net income reported by the Real Property, Marketing & Telecoms Division refl ect changes in revenue.

2.4 Consolidated equity

Changes in consolidated equity between December 31, 2011 and Decem-ber 31, 2012 were as follows:

In millions of euros

12/31/11 12/31/12 Change

TRANSPORT 2,793.4 2,595.3 (198.0)

RATP Epic (a) 2,783.4* 2,594.0 (189.4)

RATP Développement, RATPI and IXXI 10.0 1.3 (8.7)

ENGINEERING (Systra Group) 59.1 40.4 (18.7)

REAL PROPERTY, MARKETING

& TELECOMS 23.6 24.3 0.8

• Promo Métro 1.5 1.6 0.0

• Telecoms 20.0 20.3 0.3

• Real property 2.1 2.5 0.4

RATP group (b) 2,876.1 2,660.1 (216.0)

Subsidiaries' contribution (b-a) 92.8 66.1 (26.6)

(*) Excluding cancellation (in 2012 eff ective retroactively to 2010) of land and bus station revaluation further to the adoption of IFRS. After accounting for the cancellation, equity amounted to €2,358 million.

Consolidated equity decreased €216 million from €2,876 million to €2,660 million, comprising €189 million for RATP and €27 million for the subsidi-aries.

As a result of the French ORTF law and the agreement entered into by RATP and the Île-de-France transport authority on September 21, 2012, RATP’s equity decreased by €425 million due to the cancellation of the revaluation of land and bus stations upon the transition to IFRS. Exclud-ing this accountExclud-ing adjustment, RATP Epic’s equity increased by €236 mil-lion, refl ecting profi t or loss for the year and the eff ect of the discount rate on employee benefi ts.

For the subsidiaries, signifi cant items included:

• Decrease of €18.7 million in engineering subsidiaries’ equity in connec-tion with the compleconnec-tion of Systra’s reorganizaconnec-tion;

• Decrease of €8.7 million in transport business equity. This change mainly refl ects the technical eff ect of discounting retirement benefi t obligations in the United Kingdom and the increase in the Group’s interests in the subsidiary, Gest.

2.5 Consolidated net debt

Changes in consolidated net debt between December 31, 2011 and Decem-ber 31, 2012 were as follows:

In millions of euros

12/31/11 12/31/12 Change

RATP Epic net debt 5,087.6 5,214.2 126.6

RATP Epic lease commitments and other 13.4 (12.1) (25.5)

Impact of IAS 39 (83.0) (63.2) 19.8

RATP Epic net debt (incl. fi nance leases) 5,018.0 5,138.9 120.9 Transport subsidiaries' net debt (21.4) 17.7 39.1 Transport division net debt 4,996.6 5,156.5 160.0

Engineering division net debt 0.0 0.0 0.0

Real property, marketing & telecoms division

net debt (19.6) (21.2) (1.6)

RATP group net debt 4,977.0 5,135.3 158.3

Subsidiaries' net debt (41.0) (3.6) 37.4

The increase in consolidated net debt between December 31, 2011 and December 31, 2012 was mainly attributable to RATP, but also to the sub-sidiaries, for the fi rst time. They accounted for 24% of the change. The new agreement with the Île-de-France transport authority set out a four-year investment plan matching resources with uses. The upward trend in RATP’s net debt should slow over the period, and then reverse to 2011 levels by 2015.

The subsidiaries only contribute marginally to the Group’s debt reduction. While the Real property, marketing & telecoms subsidiaries still have posi-tive net cash positions, this is no longer the case for the transport subsidi-aries whose net debt now amounts to almost €18 million. Generally, debt increased in connection with the recent acquisitions in the United King-dom, the increase in the Group’s shareholding in Gest, and the increase in the size of RATP Développement’s fl eet.

Also, at the end of December 2011, transport business (through RATP International) generated a temporary cash surplus due to the completion of Systra’s transactions.

2.6 Capital expenditure

RATP group’s capital expenditure amounted to €1,565 million.

Aggregate capital expenditure of RATP Epic amounted to €1,505 million, comprising:

• €504 million to increase transport capacity; • €1,001 million for modernization and maintenance.

To increase transport capacity, the Group invested €504 million in the fol-lowing:

• €385 million for infrastructure relating to the State and Regional con-tractual plan and projects. Work on all concon-tractual plan projects (metro lines L4, L12, tramway lines T5, T6, T7, T8) continued throughout 2012. Some are already operational (T3, L12). The same level of expenditure is expected in 2013;

• €119 million for rolling stock relating to increased transport capacity, including almost €89 million for the tramway.

Capital expenditure to modernize and maintain infrastructure and rolling stock (excluding rolling stock for operations to extend network services) amounted to €1,001 million, comprising:

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• €416 million for modernization and maintenance;

• €585 million for rolling stock, primarily refl ecting purchases of equipment and machines with €280 million for MI09 for line A of the regional express service and €102 million for line 1 MP05 trains), and the refurbishment of rolling stock (MI79). The Île-de-France transport authority granted a subsidy for these operations.

3 • OUTLOOK

Tramways will once again drive Group business in 2013, with the full-year eff ect of the new services launched at the end of 2012, additional network off ers (Paris, Manchester) and new transport lines (Algeria, USA). Business should therefore remain buoyant.

The Group will continue implementing plans to develop and improve pro-ductivity in order to boost economic performance, while actively undertak-ing its ambitious investment program, which is set to increase by over 10%.

4 • OTHER DISCLOSURES

4.1 Use of fi nancial instruments

RATP uses all available fi nancial instruments to optimize the cost of debt and hedge its exposure to changes in interest rates, exchange rates and commodity prices, while applying strict management rules and complying with hedge accounting criteria:

• RATP systematically hedges all exchange rate risk on its foreign currency debt using cross currency swaps;

• RATP regularly hedges its exposure to interest rate movements on future bond issues using swaps and swaption collars;

• RATP uses all interest rate instruments (swaps, caps, fl oors and swaptions) to optimize its fi nancial expense, while complying with the micro-hedging rules set forth by French accounting principles:

-All interest rate derivative instruments are matched to a specifi c underly-ing fi nancial liability, with a shorter or equal maturity to the underlying; -RATP backs fi xed rate fi nancial liabilities with interest rate swaps to

receive a fi xed rate and pay a fl oating rate indexed to euro yield curves. • RATP may cover its exposure to commodity price movements by using

financial instruments indexed exactly to the physical delivery terms agreed with suppliers.

RATP uses a commercial paper facility of €2 billion to manage cash and liquidity exposure. It invests surplus cash on a daily basis in funds that comply with IFRS 7 criteria for classifi cation as cash and cash equivalents. Counterparty risk is limited through the systematic use of guarantee clauses in all framework agreements on fi nancial instruments.

4.2 Consolidated net income since 2007

Year

Net income attributable to owners of the company

2007 112.1 2008 141.3 2009 182.8 2010 186.2 2011 337.3 2012 284.8

4.3 Breakdown of trade payables

by maturity date

In compliance with the Government decree 2008-1492, information on the breakdown of outstanding trade payables by maturity date is provided below:

Outstanding trade payable

in thousands of euros

2011 2012 Overdue invoices by 11,766.00 34,357.55 >60 days 3,891.85 6,801.92 31 to 60 days 3,999.33 1,432.50 1 to 30 days 3,874.81 26,123.12 Invoices due in 210,553.52 175,961.18 0 to 30 days 166,593.39 168,262.36 31 to 60 days 43,960.12 7,698.81 >60 days 0 0

4.4 Social and environmental impact

of RATP’s activities

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Appendices 21

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THE PRESIDENT’S REPORT

INTRODUCTION

The purpose of this document is to report on the preparation and organiza-tion of the work of the Board of Directors and on the internal control pro-cedures implemented by RATP, in accordance with the provisions of Article L. 225-37 of the French commercial code.

“Internal control” or “business control” means control of business activi-ties. Internal control is the system set up by the company to ensure the control of the business, in particular:

• Compliance with current laws and regulations;

• Implementation of the instructions and guidelines issued by executive management;

• Smooth running of the company’s internal processes, particularly those used to safeguard assets;

• Reliability of fi nancial information.

The content of this report is based on the framework for internal control reporting set out by the French Securities Market Regulator (AMF) and published in January 2007 to assist French companies that are required to prepare this type of report.

As stated in AMF’s Reference Framework, “by contributing to the preven-tion 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. How-ever, internal control cannot provide absolute assurance that the company’s objectives will be met”.

The Board of Directors is the governance body that ensures that the inter-nal control system is appropriate for the company. The fi rst part of this report describes the way the system works and the signifi cant work per-formed during 2012. The second part provides an overview of the organiza-tion of the internal control system, and the third part explains how control and monitoring activities contribute to ensuring reliable accounting and

fi nancial information.

This report was presented to the Audit Committee at its meeting on Febru-ary 27, 2013. Pursuant to legislation1 eff ective as of 2008, it was approved by the company’s Board of Directors at their meeting on March 29, 2013.

1 French Law 2008-649 of July 3, 2008 introducing provisions and amendments in French corporate law from EU law, Articles 26 and 29 (Offi cial Gazette July 4, 2008).

1 • THE BOARD

OF DIRECTORS

1.1 Work of the Board

In terms of Corporate Governance, RATP complies with the rules set forth by the State Equity Investment Agency.

RATP’s Board of Directors comprises 27 members pursuant to Government decree no. 84 276 of April 13, 1984 (details are provided in Appendix 1). The Board has adopted internal rules in accordance with Article 6-12 of decree no. 59-1091 of September 23, 1959 on the legal form of RATP. These rules are frequently updated on the basis of the Board’s governance. The Board of Directors is chaired by Mr Pierre Mongin, who was reap-pointed President and Chief Executive Offi cer of RATP by the decree of July 29, 2009 for the period 2009-2014.

The Board of Directors is responsible for all the company’s strategic deci-sion-making on key economic, fi nancial and technological issues. These include matters relating to the company’s State-regional contractual plans, business plan and the contractual agreement with the Île-de-France trans-port authority (Syndicat des Transtrans-ports d’Île-de-France – Stif). Decisions are taken on the basis of input from three standing committees, one of which deals with matters concerning technical and technological moderni-zation and development, the second, economic and strategic issues and the third, innovation and customer service.

The role of the Audit Committee, comprising six Board members, is to advise the Board on the fi nancial statements, particularly with regard to the reliability of the information systems used to prepare them, fi nancial management, accounting and management principles, risk management and fi nancial reporting.

The Board approves contracts exceeding €60 million, upon the advice of the Technical and Technological Modernization Committee, which exerts an evocation power for contracts between €5 million and €60 million. The Board empowers the Chief Executive Offi cer to purchase, extend or dispose of investments of a nominal value below €2 million, and to reclas-sify securities between RATP and its majority-owned subsidiaries. The Board has set the threshold below which the Chief Executive Offi cer is authorized to purchase or dispose of all real property at €2 million, in

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accordance with Article 8 d of the Government decree of September 23, 1959 on the legal status of RATP.

During the summer and year end recess of the Board, the Board empowers the Chief Executive Offi cer to enter into contracts for work and supplies on its behalf and to purchase and dispose of real property or investments, on condition that such matters are reported at the following ordinary meet-ing of the Board.

Directors that represent the State or employees are unpaid. However, the expense that they incur in the performance of their duties is reimbursed by RATP. For qualifi ed persons, if the Board decides to pay directors’ fees in addition to reimbursing their travel expenses, such fees are subject to the approval of the Transport Minister and the Minister for the Economy and Finance.

The Board, subject to ministerial approval pursuant to Article 7 of decree no. 59 1091 of September 23, 1959, sets the directors’ fees for qualifi ed persons. These are paid to directors present at Board meetings and at meetings of the Board’s two standing committees. They are set at €148 per Board meeting and €74 per Committee, Commission or Working Group meeting, as of January 1, 2007.

1.2 Signifi cant work by the Board in 2012

.

.

STABILIZATION OF COMPANY STRUCTURE

AND BUSINESS STRATEGY THROUGH



Building on the work conducted in 2011 to prepare the new contractual agreement between the Île-de-France transport authority and RATP for 2012-2015, the Board discussed the strategic aspects relating to the issue in February 2012. The new agreement was approved following another dis-cussion by the Board at their meeting on March 14, 2012. The Board then conducted a detailed analysis of the content and measurement methods relating to the associated service quality indicators. In connection with the French ORTF law on public rail transport of December 8, 2009, at its meet-ing on June 29, the Board approved the draft agreement between the Île-de-France transport authority and RATP. The agreement sets the amount of fi nancial compensation to be paid to the Île-de-France transport author-ity for the transfer of assets to RATP and defi nes the status of the joint tramway and transport infrastructure assets.

Throughout 2012, the Board played an active role in preparing the future Vision 2020 business plan. During a seminar on May 11, 2012, the Board

fi rst presented its vision of the future for RATP. Then, at its meeting on October 19, 2012, during a discussion on strategy based on the work of the Economic Committee, the Board presented a broad outline of the plan. At the same meeting, the President gave a detailed report on implementa-tion of the Ambiimplementa-tion 2012 plan, on the economic and instituimplementa-tional envi-ronment and on the challenges of Vision 2020. The Vision 2020 plan with projected fi gures, was adopted by a formal vote at an extraordinary Board meeting on November 13, 2012. Throughout the year, the President kept the Board up-to-date on progress in the participatory process undertaken to prepare the plan.

.

.

IMPLEMENTING DEVELOPMENT POLICY

UNDER THE NEW INVESTMENT GOVERNANCE

FRAMEWORK…

The Board continued its review of the capital expenditure master plans, in particular with regard to passenger service areas and increased transport capacity. In February 2012, for the fi rst time, it examined the condensed, consolidated master plans in connection with the multi-annual capital expenditure program.

The Board read the agreement between the Île-de-France transport author-ity and RATP on the governance of rolling stock, in connection with the transfer of ownership of rolling stock from the Île-de-France transport authority to RATP as provided for in the French ORTF law on public rail transport of December 8, 2009. At its meeting on December 7, the Board reviewed the update of the capital expenditure master plan relating to railway rolling stock.

In 2012, the Board implemented the capital expenditure plan by approving the conditional portion for MI 09 trains for line A of the regional express service (RER), and by ordering additional trains and the associated equip-ment to extend line 14 to Mairie de Saint-Ouen and diesel-powered and hybrid articulated buses.

The President regularly informed the Board of the diffi culties encountered by RATP’s suppliers as a result of the challenging economic environment. As part of RATP’s industrial policy, the Board adopted measures to fos-ter the economic viability of several such companies, in conjunction with State representatives.

At the meeting held to approve the 2013 budgets for the public service com-pany (RATP Epic), infrastructure management and transport operations, the Board examined the 2012 update of the condensed 2012-2020 capital expenditure master plans and the 2012-2015 contractual agreement with the Île-de-France transport authority. It subsequently adopted the 2013 capital expenditure programs for RATP Epic, infrastructure management and transport operations.

.

.

…WITH CONTINUED FOCUS ON CUSTOMER SERVICE

In February 2012, the Board examined the draft master plans for lines A and B of the regional express service (RER), designed to sustainably improve service quality. Then, during its meeting on October 19, it reviewed the master plan for line A, which had been approved by the Board of Direc-tors of the Île-de-France transport authority in June. The Board approved the preliminary proposal to extend line 14 from Saint-Lazare to Mairie de Saint-Ouen to resolve overcrowding on line 13, and the project outline to extend line 11 to Rosny-sous-Bois.

The Board reviewed accessibility policy and airport bus services and was given feedback on several service innovations, including RATP ServiceLabs and the “registered letter” trials at Simplon metro station in partnership with the French postal service operator, La Poste.

At its meeting on December 7, the Board discussed strategy relating to the Greater Paris Transport project.

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Throughout the year, the Board performed detailed quarterly reviews and closely analyzed year one performance of the 2012-2015 contractual agree-ment between the Île-de-France transport authority and RATP.

.

.

THOROUGH AND FREQUENT CONTROL

OVER DEVELOPMENT POLICY

In accordance with the new governance framework, the Board reviewed the four quarterly business reports prepared by RATP Développement in 2012. In June, the Board examined and discussed RATP Développement’s medium-term business plan (2013-2017) before approving it at its meet-ing on August 31. In June, the Board also examined the forecasts for the other subsidiaries and heard Systra’s Chairman for the fi rst time since the reorganization.

At its meeting on December 7, the Board approved RATP Développement’s 2013 budget, and examined the consolidated budget of RATP group. Throughout the year, the President kept Directors informed of progress in RATP’s national and international development.

The Board’s Economic Strategy Committee is particularly active in over-seeing subsidiaries’ development and strategy. It regularly conducts an in-depth review of the annual and half-yearly fi nancial statements, the medium-term business plan and the quarterly reports of RATP Développe-ment, the most signifi cant subsidiary in terms of revenue. The Committee also monitors the activity of the other subsidiaries both during the review of the consolidated fi nancial statements and the annual presentation of each subsidiary’s performance and outlook.

.

.

CONTROL OVER THE PREPARATION

OF FINANCIAL INFORMATION

The Board approved the 2011 financial statements at its meeting on March 16 and examined and approved the company’s balance sheet and income statement and the consolidated fi nancial statements for the six-month period ended June 30, 2012, within two six-months of the end of the

fi nancial period.

At its meeting in June 2012, the Board reviewed RATP group’s 2012 risk mapping, which had been previously examined by the Audit Committee. Finally, the Audit Committee conducted its work of validating the processes used to prepare the annual and half-year consolidated fi nancial statements, thus contributing to the security of the company’s fi nancial information. It reviewed the reports on the work performed in 2012 by the Internal Audit function, reviewed the statutory auditors’ audit plan on internal control procedures and heard their fi nal report.

At its meeting in December 2012, the Board adopted the company’s oper-ating and capital expenditure budgets, including the budgets for infrastruc-ture management and transport operations.

.

.

INSTITUTIONAL RELATIONS

The President regularly reported to Board members on his meetings with the company’s institutional partners and elected regional (Île-de-France)

and national representatives, and on his hearings, particularly before the Board of Directors of the Île-de-France transport authority.

Following the French Presidential election, RATP’s President presented the company to the new government, in terms of its economic and social structure, development challenges and opportunities and proposed long-term strategy set out in the Vision 2020 business plan. At the Board meet-ing convened to approve the Vision 2020 business plan, the Government Commissioner informed the Board that the President would receive a new mandate from the Transport Minister, Mr Frédéric Cuvillier, precisely set-ting out his scope of action.

The main matters dealt with by the Board are presented in Appendix 2.

2 • RISK MANAGEMENT

AND INTERNAL CONTROL

2.1 Risk Identifi cation and Management

The internal control system is eff ective 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 guar-antees personal safety and secure operations.

.

.

THE ROLE OF THE RISK MANAGER

The role of the Risk Manager, who operates at RATP group level and reports to the Executive, is to oversee comprehensive corporate risk man-agement systems to ensure that all Group risk is monitored.

A general instruction defi nes the risk management system and the com-pany policies to be implemented by all managers.

These methods require the departments and subsidiaries to:

• Set out formal risk management procedures and identify, assess and map risk requiring priority treatment;

• Develop plans to deal with major threats as part of formal prevention and protection strategies and set out the associated improvement plans, based on risk acceptability;

• Monitor risk on an ongoing basis.

In addition, risks that require a cross-functional approach involving sev-eral departments are dealt with specifi cally through work headed by the Risk Manager.

A network of Risk Management correspondents manage risk processes at department and subsidiary level and eff ectively relay risk management procedures at their level.

The system was initiated in 2010. It has enabled a comprehensive analy-sis and inventory of the risks facing RATP group along with the associated prevention and protection strategies. Status updates are performed peri-odically.

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.

.

CONTROL OVER COMPANY

WIDE RISK

2.1.2.1 Legal Risks

The company’s legal department provides advice and analysis, draws up contracts, and handles claims and disputes for all the company’s business activities. It prepares for change, monitors legal developments (other than those relating to technical matters), disseminates information on best prac-tice, assesses risk - in close collaboration with RATP’s Risk Manager - and sets up insurance coverage. The department’s permanent primary objec-tive, particularly as it provides 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 secure and compliant.

In 2012, as in the previous year, the legal aff airs department devoted a con-siderable amount of time to developments in the institutional framework: • Implementation of Regulation no. 1370/2007 of October 23, 2007 on

pas-senger transport services;

• Analysis of the consequences of the French ORTF law no. 2009-1503 of December 8, 2009 on public rail transport with regard to the distinction between fully-owned assets, public concession assets and assets involv-ing the transfer of ownership temporarily or under certain conditions; • RATP’s participation in the Greater Paris transport project and the related

agreements;

• Implementation of RATP’s infrastructure management duties;

• Preparation of the new agreement and relations with the Île-de-France transport authority;

• Consolidation of new tools to protect and leverage the company’s intel-lectual property.

The legal aff airs department plays an integral role in securing the compa-ny’s development and preventing diffi culties.

2.1.2.2 Procurement Risk

The department in charge of Real estate, procurement and logistics con-tributed to controlling procurement risks though the following activities: • Internal communication on best practice, including regular updating

of procurement policies, informing buyers and legal staff of the reser-vations and obserreser-vations made after each review by the Procurement Board, dissemination of best practice throughout the procurement and logistics network;

• Review of fi les relating to purchases in excess of €750,000 and submission of purchases over €5 million to the Procurement Board;

• Reporting: preparation of monthly, half-yearly and annual reports on pro-curement for the TTTM committee, and an annual report on the work of the Procurement Board.

During 2012, signifi cant work included:

• In-depth mapping of procurement risk and monitoring of action plans for the four risks requiring priority treatment;

• Renewing the quality certifi cation of the general procurement division. 2.1.2.3 Information and Telecommunications Systems Risks

Since 2003, the company has implemented an information security pol-icy, which sets out the principles and rules governing the confi dentiality, integrity and continuity of information systems. The policy is enforced by an information systems security manager through a structured functional network of contact persons in each RATP department.

The company applies the information security standard ISO 27002 to implement best practice. It has taken various measures, including: • Defi ning and establishing a security policy to manage passwords; • Defi ning and implementing a single, centralized authentication strategy; • Introducing security mechanisms such as gateways, fi rewalls, DMZ, key

management infrastructure, antivirus and anti-spam applications; • Promoting awareness of information systems security and training all

Information Systems department employees;

• Systematically including security and confi dentiality clauses in contracts to safeguard information property, thus enabling stringent control over IT development and maintenance activities;

• Performing systems and technical audits (intrusion tests, vulnerability audits etc.), along with feedback sessions, exercises, simulations and trou-bleshooting to verify compliance with security policies;

• Implementing incident management processes to ensure that all inci-dents are reported to the line managers responsible for information sys-tems security.

In addition to implementing best practice, the company has approved a road map on information systems security, with two major objectives: • Establish information systems security governance:

-By ensuring that the security systems are adapted to the company’s requirements;

-The security function has deployed risk management procedures in all RATP departments, in order to formally map out the company’s infor-mation systems security risks and prepare action plans to deal with the major risks identifi ed.

• Improve the eff ectiveness of operational information systems manage-ment by setting up:

-An operational security center (in progress) to develop our capacity to perform real-time reviews and control procedures, and guarantee rapid, consistent responses in the event of security incidents (hacking, mas-sive viral attack, etc.);

-A system to segment and compartmentalize fl ows according to the level of data criticality and confi dentiality when the core transmission net-work is updated;

-A system to protect data (hard drive encoding), which is also being deployed on the work stations carrying sensitive information, particu-larly those used by mobile employees.

Action has also been taken in order to reduce information systems risk, including:

• Formal mapping of information and telecommunications systems risk in connection with the risk management procedures spearheaded by the com-pany’s Risk Manager. Risk concerning “Information systems governance” and “external malicious attacks” identifi ed as requiring priority treatment, has been assessed and targeted action plans have been prepared; • Establishing and implementing a specifi c security policy for the company’s

core information system. The company is continuing to implement and enforce the Payment Card Industry - Data Security Standard (PCI-DSS). An evaluation questionnaire has been prepared, quarterly vulnerability audits are performed and staff are being trained;

• A company data protection offi cer has been appointed. This person is closely involved with each project concerning personal data processing, which is systematically declared to the CNIL. The list of these declara-tions is published on RATP’s intranet and website at ratp.fr. RATP’s data protection offi cer also deals with data protection matters for all the sub-sidiaries controlled by RATP.

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2.1.2.4 Environmental Risks

In 2012, RATP continued to improve its environmental risk management procedures.

MRF obtained ISO 14001 certifi cation for the Auteuil maintenance site and is preparing to deploy the environmental management systems on the new sites (Pierrefi tte, Ladoumègue, La Marine).

Currently, 85% of RATP’s industrial sites are ISO 14001 certifi ed. Alongside the action planned in connection with sustainable development policy, two additional steps were completed:

• ISO 14001 certifi cation of the M2E/Italie site;

• ISO 14001 certifi cation of the engineering department by year-end. This will help to reduce the environmental impact of projects in the construc-tion phase (by improving waste management and traceability) and the impact on the life cycle of services, systems and infrastructure. Moreover, the “Electromagnetic Fields” Commission conducted an assess-ment of electromagnetic radiation risk, with the support of the Risk Man-ager’s team.

During 2012, an action plan was prepared, based on the results of the work. It is currently being implemented.

Special focus was given to “noise and vibration” problems relating to the Châtelet-les-Halles redevelopment project. A preliminary survey was conducted in conjunction with the related stakeholders (local residents, storekeepers, companies, etc.) in order to limit disruption during the con-struction phase.

RATP constantly monitors air quality in its underground networks. The data has been available on RATP’s website www.ratp.fr, and in RATP’s Open Data forum since summer 2012.

In June 2012, the International Agency for Research on Cancer (IARC), which is part of the World Health Organization (WHO), classifi ed diesel engine exhaust as carcinogenic for humans (Group 1). RATP has launched a risk assessment combined with a company-wide action plan.

The company has implemented a quality management initiative, but for the fourth consecutive year, there has been a decrease in the percentage of employees working in an ISO 9001-certifi ed quality management system. The percentage was 53% in June 2012, compared with 61% in 2009. This highlights the need to bolster internal control operations.

See http://www.bivi.qualite.afnor.org/ofm/certifi cation-iso-9000/ii/ii-75/4 One of the six priorities defi ned by RATP Epic’s Research and Innovation division is to “foresee risks and threats to people and the environment, and strengthen risk management systems”.

2.1.2.5 Ethical risks

RATP has strong ethical values, which are refl ected in its commitment to institutional charters such as the Charter of the International Association of Public Transport (UITP – 1999), the United Nations Global Compact (2003), the National Accessibility Charter (2003), and the Company Diver-sity Charter (2004).

In November 2011, the Group adopted a code of ethics setting out the role of each employee with regard to professional ethics and integrity. 2.1.2.6 Psychosocial risks

The prevention of psychosocial risks is part of a broad healthcare and safety policy.

In 2012, action was taken to professionalize “prevention and healthcare” initiatives and raise awareness and understanding of the Healthcare and Safety Task Forces set up pursuant to Instruction 2012-5898 of Novem-ber 16, 2012.

At the same time, and following the discussions begun in 2011, the specifi -cations were drawn up for several training programs (e.g. preventing motor-cycle accidents when commuting, psychosocial risk).

With regard to psychosocial risks, the main commitments set out in the agreement of December 9, 2011 were as follows:

• Set up a new service through a support and advisory platform, with four key objectives:

-To help develop respect as a core value in interpersonal and social rela-tions within the company. The support and advisory platform is in charge of fostering dialogue and encouraging the adoption by all employees of principles such as those relating to non-discrimination, diversity, gender equality and professional identity;

-To gather, analyze and disseminate the company’s social performance indicators by coordinating the preparatory work, monitoring performance and issuing warnings and alerts as required;

-To support employees when potential disputes arise. The advisory and support platform provides assistance during the employee claims/com-plaints procedure, ensuring a company-wide perspective on employee-related issues, similar to an alert function; moreover, to enhance implementation, the advisory and support platform call on mediators appointed by the President and Chief Executive Offi cer. An appeal pro-cedure has also been instituted to review particularly complex situations that cannot be resolved amicably;

-To support managers at all levels, by providing multi-disciplinary exper-tise and insight on complex situations and working with them to fi nd appropriate solutions; the advisory and support platform’s role is to mobi-lize and coordinate the internal and/or external skills required to deal with all aspects of the issues; rather than imposing solutions, it seeks to eff ectively combine all available local personnel, skills and means. • Preparation of a company-wide training program on the prevention of

psy-chosocial risks, potentially for all team managers, human resource manag-ers and membmanag-ers of the health and safety committees.

2.1.2.7 Corporate risks and fi re risks

As of January 1, 2012, the General Safety Control (GSC) function was placed under the authority of the director of the infrastructure manage-ment departmanage-ment.

The objective of the GSC is to ensure that the processes used to limit risks in all RATP Epic’s activities are correctly defi ned and implemented under the direct responsibility of the relevant departments and units. Its role is also to improve RATP’s fi re safety measures. At the request of the manag-ers concerned, it may also work for RATP group subsidiaries (Infrastructure management Instruction 2012-028 of July 26, 2012).

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The work of the GSC is performed by two units: the Fire Safety unit and the Corporate Risk Management unit.

The role of the Corporate Risk Management unit, at the request of execu-tive management or the departments, is to:

• Oversee the risk management system;

• Conduct methodological studies on safety (potential context and events); • Perform systems reviews, appraisals, risk assessments and gather

opera-tional feedback on rail transport matters;

• Analyze daily operating reports on guided transport networks; • Run the specifi c railway safety committees;

• Raise awareness of systems risk management policies.

In addition, for corporate risk management purposes, the General Safety Control function prepares a monthly warning report based on data pro-vided by the operating and maintenance departments of the metro, RER and tramway networks. The document reports reasoned recommenda-tions on each identifi ed risk. It is sent to executive management and to the departments concerned.

The Fire Safety unit deals with all aspects of fi re safety and evacuation procedures. Its aim is to:

• Constantly improve the company’s fi re safety levels;

• Coordinate emergency fi re services with the company’s fi re safety meas-ures;

• Monitor operating premises and projects under construction; • Train employees in fi re safety;

• Enforce regulatory compliance with fi re safety procedures and systems in railway stations, metro stations and buildings, through the work of the Inspectorate General for Fire Safety.

The Fire Safety unit is active at all levels of the company, through the work of the Technical Committee for Fire Safety and its network of local contacts.

The unit performs smoke and fi re tests to measure and analyze air move-ment in underground areas. The results of the tests are used to improve the security of the underground areas, by setting up and upgrading smoke-clearing systems in tunnels and stations.

It provides technical support to the Inspectorate General for Fire Safety. 2.1.2.8 Crisis management

The operations room of the Permanent Support Unit processes data received from the four operating networks, in real time, daily, in order to: • Mobilize and coordinate operating, maintenance, safety and emergency

services;

• Alert internal personnel (e.g. executive management, departments, units and the communication department) and/or external parties (e.g. Île-de-France transport authority and Maritime Transport Board). Drills and training exercises have been conducted by the Permanent Sup-port Unit since 2012 in order to prepare personnel to handle specifi c events or multiple incidents on our networks. Six drills took place over the year. • Action continued to establish and implement company-wide procedures

for a variety of circumstances, including fl ooding and lifting/rescue oper-ations;

• Permanent staff were trained in dealing with major technical incidents aff ecting traffi c (IG482) emergency control plans (IG 449), and tools used by rescue services (e.g. Crisorsec) through implementation of the general instructions issued by the Permanent Support Unit;

• Feedback sessions were held on major incidents.

RATP has set up a crisis room and communications command unit to manage crisis situations. Overall crisis management processes are set out in two general instructions: crisis management (IG 528) and crisis commu-nication (IG 465).

The Permanent Support Unit and other relevant RATP units prepare and conduct exercises with external parties (such as Paris prefecture’s civil secu-rity force (SGZDS), prefectures in the departments where RATP operates, the Paris fi re brigade and departmental fi re and rescue services). Awareness sessions and training on crisis management have been held and attended by employees who have volunteered to actively participate in crisis management.

The facilities for the Permanent Support Unit, the crisis room and the com-munications command unit on the fourth fl oor of the Championnet site were completed in October 2012. A technical and human drill took place on October 18, 2012. The Permanent Support Unit verifi es the proper func-tioning of its own equipment and the equipment used by the crisis room. In terms of Business Continuity:

• The Business Continuity Plan to cope with an infl uenza pandemic was updated in March 2012;

• The Business Continuity Plan for fl ooding, prepared by all RATP depart-ments and sent to the Prefect of Paris, was updated in November 2012. 2.1.2.9 Crisis communication

The Communications department handles crisis communication and com-munication on sensitive matters. It is responsible for managing the compa-ny’s internal and external communications during a crisis and in all other high-risk situations.

Awareness-raising initiatives on the importance of communicating on crisis and sensitive matters have been implemented in the operating and func-tional departments for the past two years. As a result, the unit responsible for crisis communication is alerted and ready to act as soon as any risk is detected within the company (e.g. company-wide steering committees on cable theft and on the delayed rollout of the T5 tramway).

The unit continued to prepare and update communication plans on

identi-fi ed crisis scenarios and to draft notes on “sensitive” matters, in close col-laboration with the press department.

As part of its work with the Risk Management teams, it has just begun drafting the action plan for dealing with the risk of “disseminating sen-sitive data”. During the year, it also completed the Business Continuity Plans for the risk of an infl uenza pandemic and fl ooding, in conjunction with the relevant teams.

References

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