Inspiring change - B

Inspiring change
Annual report 2013
SNCB / SNCB-Holding
2
Table of
contents
6
Introduction: the major changes of 2013
242013 in Tweets
26Highlights in 2013
28Key figures
303 questions to Jean-Claude Fontinoy, chairman of the board
and Jo Cornu, CEO
32Inspiring travel
42Inspiring mobility
54Inspiring stations
66Inspiring our staff
74Inspiring financial management
Annual report of SNCB
76
•
Financial report
88
•
Corporate Governance
Inspiring financial management
98•
•
Financial report
110
•
Corporate Governance
• NMBS-Holding
• NMBS-Holding
3
"You must be
the change you wish
to see in the world."
Mahatma Gandhi
4
2013 is the year of the SNCB
metamorphosis.
reform of the railways in 2005,
Following the fundamental
a new structure should help SNCB
to achieve more efficient control and improved operational performance.
The
customer must, more than ever, be the focus point of the company’s vision.
SNCB itself will exert even more effort to change.
The railways have always been able to adapt to changing circumstances;
change is an ongoing task to ensure
the future of the company.
We also change society: by creating new mobility, by redrawing the urban environment,
by stimulating the economy and by promoting sustainable solutions.
As a public company with a strong
we need to be more than just a
social character and as a major player in the mobility ,
first-rate service: we want to give direction to the society
of tomorrow, achieve new solutions for our mobility and build sustainable progress.
We want to inspire change.
5
2013
6
2014
The major changes of 2013
New structure
of the Belgian railways
The tripartite structure of the railways is being simplified. The Act of 30 August 2013 concerned the merger between
SNCB-Holding and its subsidiary SNCB. The new company will be called SNCB and it will take over the legal structure
of SNCB-Holding.
De facto a two-tier model will be created, with SNCB as a railway company (RC) and Infrabel as a railway infrastructure
administrator (IM).
A new subsidiary, HR Rail, will manage and recruit the staff for both companies. 2 percent of the shares of HR Rail is
held by the Belgian State, while the remaining shares are equally distributed among SNCB and Infrabel. The Belgian
State holds 60% of the voting rights in HR Rail; the RC and IM each holds 20%.
7
8
The major changes of 2013
Business to Customer
The major principle behind the restructuring of the Belgian Railways: all
Business-to-Customer activities
go to SNCB. This will clarify the missions of SNCB and of infrastructure manager Infrabel and it removes a number of
overlapping activities and grey areas.
The new SNCB takes over the
key customer-focused activities from the former SNCB and SNCB-
Holding. The company is responsible for all transport activities (both for passengers and goods), the vehicles, stations
and stops, safety and historical heritage.
Important change: SNCB will be the sole party responsible for
communication with the train
passenger. In the old structure, the three companies were each responsible for a part of the communication.
Following the reorganisation full control of the stations will be managed by one company (SNCB-Holding controlled
the 37 largest stations, SNCB the others and Infrabel the unmanned stops).
Infrabel is now purely a
Business-to-Business company, responsible for the rail network, railway traffic and
contact with train operators.
9
10
The major changes of 2013
Investing in safety, punctuality,
comfort and stations
The main investments in 2013 obviously comprise the pillars of the SNCB policy: safe and punctual trains, new and
modernised equipment for comfort and seats, accessible stations that are connected to the city and the personal
safety of passengers, customers and staff.
With regard to safety, 2013 was a symbolic year: all trains are now equipped with the
automatic stop
system TBL1+. Nearly a third of the fleet also has the more sophisticated ETCS safety system, which is an
interoperable system that allows traffic across borders without having to use another system.
With the influx of the
Desiro railcars and modernisation of older equipment, equipment was updated and the
number of seats available has increased.
Renovation of the station is proceeding at a rapid pace. In more and more cities, stations are transformed to
attractive multi-modal transport hubs
following developments such as the extension of bicycle
parking areas and car parks. The station environment has also evolved through master plans that are aimed at the
development of neighbourhoods that have been neglected.
Safety and security efforts
of recent years continued in 2013: aggression against staff decreased, while
the installation of cameras in stations and trains increased a sense of security.
11
12
The major changes of 2013
Multi-Year Investment Plan (MIP)
of SNCB Group approved
The Cabinet has given its approval in July 2013 for the multi-year investment plan (MIP) of the SNCB Group *. The
plan sets out the budgets needed for the investments of the track group during the period 2013-2025. In total, it
concerns nearly
EUR 26 billion.
The MIP provides EUR 2.6 billion for regional projects considered as priorities. More than EUR 5.2 billion has been
earmarked for safety, which includes the introduction of the
ETCS safety system,
while EUR 3.54 billion
is intended for the renewal and expansion of transport capacity. More than EUR 8 billion has been allocated for the
network, EUR 2.07 billion for stations and stops and EUR 456 million for parking facilities. EUR 1.3 billion will be
invested in the
Regional Express Network
the rail transport for
(infrastructure and equipment). To improve the accessibility of
people with reduced mobility , the MIP allocated EUR 400 to 450 million.
* The 2012 annual report of SNCB-Holding provides more detail into the investment plan.
13
@ SNCB
14
The major changes of 2013
SNCB on Twitter
With the launch of the Twitter account
@NMBS/@SNCB in October 2013, the company is taking an important
step towards more transparent and rapid communication with its customers and stakeholders. The launch was an
instant success. At the end of 2013 the account had
15,208 followers.
The company's account follows a number of targeted accounts. SNCB-Holding had already embraced social media in
the past, including successful recruitment campaigns. The
Train World railway museum, scheduled to open in
the near future, already has a popular Facebook page. The
37 largest stations in our country, e.g. Antwerpen-
Centraal, Gent-Sint-Pieters, Leuven, Liege and Charleroi, also have individual Facebook pages.
With the ex-SNCB,
SNCB Europe acknowledged its responsibility for international traffic and for a successful
presence on Twitter and Facebook.
15
16
The major changes of 2013
Rise and Fall of Fyra
A striking aspect in international traffic in 2013 is undoubtedly the discontinuation of Fyra, the new high-speed
train between Brussels and Amsterdam. Since the start of the project, SNCB took a
cautious approach
regarding hazards: in contrast to the original setup, SNCB would only purchase 3 sets and not 9. Bank guarantees
were concluded to prevent the loss of advance payments if the contract was not properly executed. This proved to
be a good strategy as the launch of the train did not proceed smoothly. Already on 17 January, just weeks after the
commissioning of the first trains, SNCB and NS suspended the train service after major problems with winter weather.
The accumulation of defects, errors or failures forced DVIS, the Federal Office of railway safety,
to withdraw the homologation so that Fyra trains could no longer circulate on the Belgian network. The same thing
happened in the Netherlands. The
expert reports
ordered by SNCB showed that repairs of the many defects
of the train sets would be a complex and time-consuming task. SNCB thus decided on 31 May 2013 to cancel the
purchase of trainsets and to stop Fyra. In order not to leave the passengers between Belgium and the Netherlands in
the cold,
a traditional train service
was started in January, which was systematically expanded.
17
e
b
.
b
.snc
w
w
w
18
The major changes of 2013
Smoother trips
through electronic applications
Following the introduction of new electronic applications, SNCB has made it
easier to travel by rail.
A new website was launched in 2012 with more information and to facilitate purchase opportunities that more
and more customers started using. In 2013, a daily average of
120,000 unique visitors consulted the
website. The mobile apps for various platforms are also widely used (currently more than 1,000,000 downloads).
Important premiere: on 19 March 2013, the first train passengers received their
MOBIB cards. The new chip card
is intended to replace paper tickets. Initially approximately 410,000 subscribers received MOBIB cards. During the
next few years, the card may become a
single public transport pass
since all public transport companies
in Belgium share the technological platform for this chip card. After MIVB, De Lijn and TEC will also be integrated into
the system.
In June 2013 SNCB started using
new vending machines. A total of 740 machines were distributed all over
the country by mid-2014. This does not only mean more machines, but also more outlets in strategic locations. Initial
results showed that the new machines attracted more customers than the previous machines.
19
20
The major changes of 2013
Stations redrawing
cities and their mobility
In 2013 work began on a new station in Bergen, while work started on the station area in Mechelen. The projects
eminently illustrate
the new dynamic of the stations. In the last ten years a lot of ambitious plans were
drawn up, whereby the stations were redrawn according to
new mobility: multi-modal and multifunctional.
The station area has undergone a metamorphosis not only in terms of mobility, but also full
integration into
the urban environment to ensure that space is available for working, living and all sorts of other activities.
A number of new projects are planned for the next few years and not just for the big stations. Many
smaller stations,
stops and
including the network of the Regional Express Network, will be renovated or replaced,
often with a focus on the wider environment. Belgian stations also drew attention across the borders: in 2013,
Luik-Guillemins and Antwerp Central surfaced in several top-10 lists of the
most scenic stations in
the world.
21
22
The major changes of 2013
Record number of recruitments
With 2,044 recruitments in 2013, the railways established a new recruitment record.
The campaign launched by SNCB-Holding has been running for
most successful
seven years and it is undoubtedly one of the
of its kind. The railways have a workforce with a large percentage of people between the
ages of 50 and 60 and it is therefore faced with a large outflow of
employees who will be retiring.
Recruiting hundreds of new employees is a challenge in itself; it is even more difficult when there are very
few
people skilled to perform the work. SNCB is primarily looking for technicians, engineers, computer
scientists and train drivers who are expected to have the technical knowledge required. Thanks to a consistent and
qualitative approach SNCB has succeeded up to present to encourage newcomers to follow a career at the railways.
23
2013 in Tweets (influential tweets)
@SNCB Good morning! Starting today
we will also communicate with you
through Twitter. Welcome aboard!
^MD #SNCB (24/10)
@SNCB Tomorrow
we will keep you
updated from 5am
about the situation
on the network due
to the strike, e.g.
via this map http://
bit.ly/SNCB_Grève...
#SNCB (04/11)
@lpantwerpen #bomb alert Central
Station Antwerp. WDN buildings
and pre-metro stations evacuated.
Simonsstraat-Plantin Moretuslei and
De Keyserlei closed. @SNCB (27/12)
24
@SNCB We will keep on repeating until everyone
does it: stand on the right side of the escalators to
allow walkers to pass on the left.
#courtesy #SNCB (19/11)
@stationschefbmo #sncb
on twitter, with yours
truly! Done with real
time info on this account,
follow @sncb (24/10)
@geertnoels
"Brussels-Antwerp
slower by train than
in 1935" - if Google
functioned like the
SNCB, we would send
our searches per
pigeon (23/11)
@karelvaneetvelt SNCB put extra trains
for union demonstrators but also warns of
discomfort caused by railway demonstrations.
May I be outraged? (20/02)
@ivomechels Please. First let
trains run on time, then open a
Twitter account, instead of vice
versa. (24/10)
@minijeffrey Stop the aggression
towards train attendants. Because
Less is More @SNCB @NMBSocial
@StationschefBMO (30/11)
@stationschefbmo The day that #sncb opens a
twitter account and provides a twitter wall in
all (major) stations, the entire communication
problem will be solved.
25
04/05
Derailment of a freight train in Wetteren
04/01
SNCB Europe meets the Commission for the
Protection of Privacy after the leak of a file
with personal data
11/01
Cabinet approves the reform of the
SNCB-Group
15/05
Project Blankenberge new station starts
16/05
SNCB receives award for best mobile interface
19/03
Intermodal chip (MOBIB) primarily for
commuters with an annual subscription
22/05
SNCB Group staff contacts Ford Genk employees
14/01
Launch of a new assistance service for
sellers (Sales Help Desk)
19/03
Bergen Station moves
18/01
SNCB performs well in a Mystery Shoppers
survey for assistance with PPE
27/03
Legendary locomotive type 12 transferred
to Kinkempois for renovation
21/01
SNCB suspends the purchase of Fyra sets
and declares AnsaldoBreda to be in default
29/05
Working Corner set-up in Brussels-South, a flexible
and temporary workspace
31/05
SNCB cancels purchase of V250 sets from
AnsaldoBreda
MARCH
JANUARY
MAY
2013
JUNE
FEBRUARY
01/02
SNCB and NS work together: direct train
from Brussels -The Hague from 18 February
01/02
Steam train "Type 29" to Bruges for major
service
07/02
End of cash payments for passengers is an
essential stage in the fight against cable
theft
26
16/05
34th edition 20 km from Brussels - SNCB Group
attracts more than 1,000 runners
13/06
Transurb Technirail celebrates 40th
anniversary
APRIL
09/04
BeMobEx, new Belgian cluster for urban
transport and rail
18/06
Brussels Central Station achieves ISO
14001 certification
29/06
Train service restarted following
derailment of freight train in
Wetteren
Highlights in 2013
05/07
Court of Milan serves a ruling in favour of
SNCB in the Fyra case
11/07
SNCB and SNCF strengthen their
cooperation in Thalys
21/07
More capacity and night trains for the
coronation of King Filip and the national
public holiday
01/09
SNCB transported more than 2.5 million
passengers to the coast in July and August
20/09
Appointment of Jo Cornu as CEO of SNCB
21/09
SNCB Family Day in Pairi Daiza attracts
18,000 participants
JULY
26/09
NMBS claims compensation for damages
and interest from AnsaldoBreda
13/11
Jo Cornu accepts his duties as CEO of SNCB
for a period of 6 years
18/11
Work started on the renovation of Arlon
station, an investment of EUR 3 million
NOVEMBER
SEPTEMBER
2014
OCTOBER
AUGUST
02/08
Security staff on train, metro, tram and bus
may from now on ask for proof of identification
21/10
New Board of SNCB announced
24/10
SNCB now also informs passengers via
Twitter
DECEMBER
03/12
Liège-Guillemins is backdrop for The Fifth
Estate, a film about WikiLeaks
06/12
Initial ground breaking for Park & Ride of
Louvain-La-Neuve, largest P&R in the
Benelux
16/12
The Corporate Security Services SNCB
service obtains ISO 9001 certification
18/12
All domestic SNCB trains are equipped with
TBL1 +
27
Key figures
SNCB
(according to BE-GAAP)
€
€
ebitda
turnover
result
total assets
investments
EUR -93.1
millions
EUR 2,122.6
millions
EUR -330.7
millions
EUR 6,168.5
millions
EUR 604.0
millions
passengers
total
passengers
national
international
passengers
stations
and stops
number of
seats
232.5 millions
223.0 millions
9.5 millions
550
+2.0%
-0.1%
+0.6%
+19.8%
Europe
330,367
(2012: 324,981)
bevoorrading
tractie-energie
diverse (Technics & Corporate)
andere
Logistics
andere exploitatiekosten
number of trainsdotaties
average
(excl.
woon-werk
per day
satisfaction
week: 3,708
weekend: 2,049
28
/school)
Mobility
6.51/10
Freight Services
(2012: 6.49/10)
punctuality
personeelskosten
punctuality
(neutralised)
vergoeding infrastructuur
85.6%
-1.6%
90.4%
-1.6%
drive past
signals
66
-14.3%
SNCB-Holding
€
SNCB Group
consolidated *
(according to BE-GAAP)
€
€
€
ebitda
ebitda
turnover
result
EUR 144.1
millions
EUR 2,613.3
millions
EUR 150.8
millions
+15.1%
+5.8%
6.168,5
EUR
mln.
30.5
euro
million
-83.1%
+63.1%
turnover
total assets
investments
EUR 11,632.8
millions
EUR 165.1
millions
EUR
1,400.7 million
-11.5%
result
EUR
-487.0 million
-133.1%
employees
SNCB
employees
SNCB-Holding
recruitments
SNCB Group
18,122 FTE
3,782 FTE
2,044
(1/1/2014)
(1/1/2014)
total assets
EUR
29,063.4 millions
* Consortium: including
subsidiaries (according to IFRS)
29
3 questions to Jean-Claude Fontinoy,
chairman of the board, and Jo Cornu, CEO
What was 2013 like?
The new structure also enables a good collaboration between
Jean-Claude Fontinoy: “For the railways, 2013 was the year
rail operator SNCB and Infrabel, the infrastructure manager.
of restructuring. In January 2013, the government decided
Thanks to the new joint subsidiary HR Rail, the personnel
to convert the Holding Structure to a structure
with two companies (SNCB and
Infrabel), with a redistribution of
management of the two companies is shared so that they do
not compete to recruit employees. In addition the National
Joint Commission and the unity of the charter was preserved."
activities. A new financial and legal
framework had to be defined. This
undoubtedly created a lot of
uncertainty and ambiguity
for the employees of
Jo Cornu: “At the end of 2013 I accepted my assignment at
SNCB and it is obviously difficult to speak about the work of
my predecessors. If we look at the performance, I see progress
in many areas: heavy investment was for instance made in
the three companies,
security systems, the purchase of new trains, stations and
as the evolution to the
parking space for cars and bicycles. But there are a few things
new structure was to be
we need to improve on. When we consider punctuality, 2013
implemented in a very short
time.
was a black year. There are various causes for this and we
hold the key in part to embrace this problem. For example,
certain procedures are very time consuming, which need to be
One of the major challenges
simplified in the future. Some work also still needs to be done
of the railways continues
with regard to awareness. Attention to the timely departure of
to be the management
the first trains can avoid a many minutes delay and reduce the
of the debt it carries; a
well-known snowball effect. In December Luc Lallemand, CEO
proportional allocation of
of Infrabel, and I sent a letter to inform the relevant employees
assets and liabilities to the
about its importance. The financial results of the former SNCB
new railway companies was
require changes: expenses must be reduced dramatically and
therefore crucial to ensure
we need to tap into new avenues to increase our income. The
their viability.
introduction of a Marketing & Sales department must lead to a
new commercial approach, with the main purpose to increase
revenue."
Jo Cornu
30
Jean-Claude Fontinoy
What do you expect for 2014?
How do you see the role of the "new" SNCB?
Jean-Claude Fontinoy: “We need to rebuild trust with our
Jean-Claude Fontinoy: “The objective of the government has
customers, improve operational performance, achieve a
been clarified by the new structure. As a business-to-customer
recurring operating result and set an ambitious goal for our
company SNCB is fully responsible for travel-related activities,
net income. At the same time we need to set up a new
while Infrabel focuses on the maintenance and modernisation
company strategy, in line with the 2013-2025 multi-year
of the infrastructure and contacts with rail operators in a
investment plan, the transport plan in 2014 and the new
business-to-business context. Activities and responsibilities
management contract that must still be negotiated with
are more clearly delineated than in the previous structure. But
the government. The European Union adopted its fourth
even with this two-tier structure, cooperation will be crucial
railway package early in 2014, which opens the door for the
to progress. The evolution of our mobility requires more rail
liberalisation of domestic passengers. We must therefore
transport, even in the most conservative scenario. In recent
assume a vigilant attitude towards the introduction of
decades, SNCB and Infrabel have proven that they can achieve
competition. We need to increase our efficiency, improve our
a modal shift. In order to cope with strong demand in the next
service and reduce our expenses.”
few years, the government should take measures to promote
more balanced and sustainable mobility measures.”
Jo Cornu: “One of my priorities is punctual trains. Labille,
Minister of Public Enterprises, has repeatedly made it clear
Jo Cornu: “I see it as my main task to bring the company to a
that he expects to turnaround this matter shortly. A second
new operational level to ensure that our passengers and our
priority, as the President pointed out, is to improve our cost
principal shareholder are satisfied. The new SNCB must once
structure. In addition to efforts to be more productive and
again become a company that everyone can be proud of: staff,
more effective, I expect much from the new commercial
customers and stakeholders. The railways play an important
policy. We need to evolve to flexible rates and increase our
role in the economy of our country. Everyone benefits from
emphasis on innovation in terms of products, distribution
a strong SNCB. We must therefore ensure that we are ready
and communication. Innovation is also important when it
for the coming liberalisation: a solid cost structure and
comes to service: for example, why should we not offer
performance are the best guarantee for the future and we
Internet on trains and give our customers the opportunity to
need to focus on that in the coming years, provided that the
make optimum use of their time? 2014 will be an important
authorities provide us flexibility to develop: current pricing
year in terms of train services: in December we will launch a
conditions, for example, are slowing improvement in revenue.
completely redesigned transportation plan. That plan better
We should be able to reach a rational solution.”
addresses the demand for mobility, taking into account the
capabilities and limitations of the rail network, it is structurally
more robust and it must contribute to better punctuality."
31
32
Inspiring travel
SNCB carried a total of 232.5 million passengers in 2013, an increase of 0.6%. For
national and international traffic, a significant change compared with 2012 has to be taken into
account: the management of the Benelux trains was transferred from SNCB Mobility to SNCB Europe.
On the basis of comparable parameters, the number of passengers in domestic traffic grew by
0.5%, and there were 1.3% more international passengers. SNCB Mobility introduced a number
of major changes in 2013: the Mobib smartcard which primarily replaces paper train tickets, was
brought into use in March, the first new ticket machines were introduced in May and the Twitter
account launch followed in October. For SNCB Europe, despite the problems with Fyra, 2013 was a
good year in which Thalys was able to build further on its strong position.
33
Domestic passenger transport:
growth and efficiency
That growth must be accompanied by a substantial
For the next few years, the strategy for domestic passenger
aspects such as safety and punctuality, the central
transport focuses on three key points: growth, service and
considerations are above all passenger information (in real
efficiency. In recent years, the strong growth in traffic has
time) and smooth purchasing options and deals. In recent
slowed slightly, but as mentioned in previous annual reports,
years, with the renewal of its website and the launch of its
SNCB assumes average future growth of 2% in the number
app for various smartphone formats, SNCB has already made
of passenger-kilometres (basis: Planning Office forecasts, see
great efforts to assist the customer and offer extra service. In
SNCB annual report 2012). It is not surprising that the steep
the years ahead, comprehensive door-to-door guidance and
increase in rail transport has flattened out somewhat: the
support must enable customers to manage their journeys
economic context and its impact on employment mean that
with even greater ease and speed, and keep them informed of
there is no significant growth in the segment where rail gets
traffic news in real time while they are on the move.
improvement in service. Here, in addition to operational
most of its customers: commuting.
For domestic traffic, growth will need to come mainly from
other market segments, such as travel between home and
school and the leisure segment, which definitely still has
potential.
Traffic growth 1995 - 2012
(passenger-km, national + international)
180%
160%
140%
120%
Rail experiences record growth
100%
Between 1995 and 2012, rail traffic grew by an impressive
60% - far better than all other types of transport. Road traffic
increased by 19% over the same period, and tram, bus and
80%
1995
2000
2005
2010
2012
metro by 43%.
34
This shows that a sustained policy of promoting public
car + van + motorcycle
bus, tram and metro
transport bears fruit.
train
total
With a view to the liberalisation of the domestic market, SNCB
also plans to increase efficiency over the next few years. A
first important step is ISO 9001:2008 certification, awarded
to SNCB Mobility on 12 November 2013 for the following
activities:
• operation of national and short international passenger transport and determination of transport provision;
• development, management and distribution of the product range through various sales channels;
• passenger reception and on-train assistance.
In the next phase, the focus will be on a process-based
approach and proactivity. The focus must shift from problem
solving to continuous improvement.
SNCB wants to further improve customer service and facilities.
Number of domestic passengers (millions)
Passenger-km domestic transport (millions)
230
230
220
220
210
210
200
200
190
190
180
180
170
170
2005
2006
2007
2008
2009
2010
2011
2012
2013
2005
2006
2007
2008
2009
2010
2011
2012
2013
177.6
187.5
196.6
206.2
210.1
215.1
221.3
223.3
223.0
8,111
8,521
8,851
9,249
9,361
9,541
9,890
9,906
9,871
inspiring travel
35
SNCB app downloaded in large numbers
The SNCB app is a free mobile application for iPhone, Android
or Java. It contains a door-to-door journey planner, the train
timetable in real time and a GPS component so that you need
never get lost again. In 2013, the iPhone app was extended to
include a purchase module and an app for iPad was launched.
By the end of 2013, the various formats had been downloaded
850.000 times.
14% more passengers to the coast
During July and August, SNCB carried more than 2.5 million
passengers to and from the coast, 14% up from the previous
year. On peak days such as Sunday 7 July and Friday 2 August,
more than 70,000 passengers travelled by train to and from
SNCB electronic applications meet with strong succes.
the coast. The most popular destination was Ostend, followed
by Blankenberge. During the summer months, SNCB focuses its
provision on these thousands of additional passengers who opt for
Changes in passenger numbers per
ticket type (millions)
the train for their leisure trips. Thus between 22 June 2013 and 1
September 2013, tourist trains (ICT trains) were laid on to popular
destinations.
2012
2013
Difference
Tickets
45.2
44.4
-1.8%
Journey cards
16.5
17.0
2.8%
Railcards
154.9
157.0
1.3%
Subtotal
216.7
218.4
0.8%
TCV/EBS*
6.6
4.6
-30.3%
223.3
223.0
-0.1%
Total*
* On a comparative basis (including Benelux train), the TCV/
EBS segment counted (cross-border traffic and traffic from the
border) 6.1 million passengers in 2013 (-7.9%), while the total
was 224.5 million passengers (+0.5%).
36
Without the customer have to ask for it, and without any
problems, SNCB wants to make the service provision process
better, easier, faster and cheaper.
Turnover domestic transport (million €)
620
610
With the loss of the Benelux train from domestic transport
600
provision, the number of domestic passengers fell slightly
(-0.1%) to 223.0 million. Using comparable parameters for
2012, the number of passengers increased by 0.5% (224.5
million). In any case, the upwards or downwards change
from 2012 was slight, and an additional increase will only be
achieved if rail services are also overhauled, as set out in the
590
580
570
2010
2011
2012
2013
577.0
598.9
612.5
611.3
new transport plan to be launched in December 2014.
Change in turnover
Compared with the same period last year, turnover slightly
Passes on the increase again
decreased by 0.2%. The loss of turnover due to the loss
After a difficult year in 2012, passes performed better again
of the Benelux train was thus almost entirely offset by the
in 2013 (+3.8%). The Rail Pass continues to sell well (+8.6%).
increase from other products, especially passes and season
Customers making longer trips in particular stand to benefit
tickets. Sales of tickets (+1.7%) increased due to the strong
considerably from purchasing a Rail Pass. Young people have
performance of the temporary B-Excursions and because of
become rail-focused again: the Go Pass achieved good results
the price effect (fare increases in February). Young people’s
(+4.0%), thanks entirely to an increase in volumes. Here, the
tickets (+47.0%) and promotions (+2.9%) also contributed to
fact that the price was kept at the same level had a positive
the increase in turnover. Promotions such as the Valentine Duo
effect on passenger numbers. Only the Key Card continued to
Deal, the Summer Deal, the Web Deal and the Mobility Deal
decline (8% turnover decrease).
are proving popular with the public. Only the Shopping Deal
(year-end promotion) performed less well on the market.
Railcards: more income, fewer passengers
All railcard-categories did better than the previous year.
Nevertheless, the average growth in passenger numbers in
2013 was lower than in the previous year. This is a first sign
that saturation point is gradually being reached, especially
in commuting. Despite this, more third-party payer contracts
inspiring travel
37
were again signed in 2013 for free commuting for companies
Turnover by sales channel
in the private sector (if the employer pays 80% of the price,
5.7%
the government contributes the remaining 20%). By the end of
other
2013 there were 8,001 such contracts in the private sector.
3.8%
train
New ticket machines successful
79.2%
ticket
offices
Ticket offices definitely remain the main sales channel for
SNCB, but the introduction of the new ticket machines has
4.3%
been a clear success: income rose by 33.8% compared with
internet
7.0%
the previous year. The machines are more user-friendly, less
ticket machines
liable to break down and offer a wider range of products. They
are also being located more visibly in stations, so that they
come across as a clear alternative to the ticket office. Internet
sales are also on the rise, with a turnover increase of 19% from
2012.
Quality barometer (percentage of passengers giving a score of 7/10 or more)
Customer satisfaction: status quo
Overall customer satisfaction remained at its previous level
overall satisfaction
in 2013: passengers gave an average score of 6.51/10
compared with 6.49/10 in 2012. There is a status quo in terms
SNCB-staff on the trains
of numbers of satisfied customers. However, progress was
SNCB-staff in the stations
made on certain points: SNCB staff were again rated highly,
purchase of ticket/card
welcome / service in the stations
improving still further on 2012. The purchase of tickets and the
comfort on the trains
price of train journeys were also more favourably rated. The
information in the stations
dismal punctuality figures for 2013 did not lead to a further
cleanliness of the stations
drop in approval scores in this respect, although a 29.5% level
cleanliness of the trains
of customer satisfaction is obviously far from adequate. The
price
fall in the cleanliness of stations was significant: the number
information on the trains
of satisfied customers fell below the 60% level here. The
frequency of the trains
punctuality of the trains
message from customers is clear, and determines priorities at
20%
30%
40%
50%
60%
70%
80%
90% 100%
2012
38
2013
SNCB: among other things, the reorganisation of the railways
needs to bring about a substantial improvement in the poor
level of punctuality.
International passengers (millions)
10
9,5
Customer interaction
Train passengers contacted SNCB en masse in 2013. The
Contact Centre received 554,346 calls (+5.4%) and 53,854
e-mails (+10%). The fact that 2013 was a bad year with regard
to punctuality can be seen from the increase in the number
of applications for compensation (105,531 or + 31%) and
9
8,5
8
7,5
7
the amount paid (EUR 1.6 million or +22%). Anomalies were
2005
2006
2007
2008
2009
2010
2011
7.7
8.0
7.7
8.1
7.6
7.6
7.9
2012 2013 *
7.9
9.5
established with 554,079 travellers, which is an increase of
7.1%. These are travellers who did not have a ticket or who
International passengers-km (millions)
had a pass that was not completed correctly, who travelled in
the wrong class, etc.
Services to persons with reduced mobility are gaining interest.
1.050
1.000
The central office has received 36,365 requests for assistance,
or 1.5% more than in 2012. This number excludes direct
requests for assistance at the stations.
International passenger transport:
growing in a liberalised market
SNCB Europe has been operating in an open market since
2010, and is primarily active at two levels:
• as a carrier: cooperation agreements with Thalys, SNCF (TGV 950
900
850
800
2005
2006
2007
2008
2009
2010
2011
2012 2013 *
876.4
909.5
890.5
938.2
897.1
926.9
958.1
951.2 1,014.8
* Benelux passengers included
Brussels-France) and DB (ICE), individual operator (EuroCity to Basel, IC The Hague known as the Benelux train and Treski),
• as a distributor: sales of international tickets and complementary products via Internet, contact centre, stations and travel agencies.
inspiring travel
39
Passengers per type of train
Passengers per type of product (millions)
The acquisition of the Benelux train has given SNCB Europe a
2012
2013
Difference
Thalys
6.4
6.7
3.1%
this change, international traffic was up 1.3%. This was
TGV
1.0
1.0
-4.2%
mainly due to Thalys. In October 2013, Thalys welcomed its
The Hague Express*
0.1
1.5
-
100 millionth passenger. The dark red train obviously owes
Regular
0.3
0.3
-17.1%
its success to the disappearance of Fyra from the Belgium –
Total*
7.9
9.5
19.8%
sharp boost in passenger numbers (+19.8%). If we disregard
Netherlands route (+46.3% passengers), but the number
of passengers travelling to Germany is also up (+2.7%).
* According to comparative parameters (excluding Benelux
trains) The Hague Express segment is not included for 2013,
which shows a total of 7.9 million passengers in 2013 (+1.3%)
compared with 7.8 million in 2012.
Between Brussels and Paris, the strongest link, there was
a 3% drop, mainly due to the economic situation and the
underperforming French market. Customer satisfaction
reached a new high of 87.3%. The punctuality rate of 90.6%
was undoubtedly one factor in this.
The Brussels-France TGV has experienced a slight downturn in
business, mainly due to the disappearance of the Brussels –
Furthermore, SNCB Europe supervises the SNCB parts in
Eurostar and operates as a service provider to other carriers.
For the future, there are further big changes to come. SNCB
and SNCF want to reshape the strong Thalys into a full rail
operator, by analogy with what Eurostar has done. This will
enable the brand to respond even more efficiently to the
growing competition and raise its customer service to an
Passengers per type of train
even higher level. Subject to approval by the competition
authorities, this could happen by early 2015.
In 2013, SNCB’s international business was marked by the end
of the Fyra project, the high-speed train that was to connect
Brussels and Amsterdam. In order to avoid leaving passengers
wanting to travel between Belgium and the Netherlands
stranded, a solution was found in January to relaunch and
overhaul traditional train services.
40
10%
4%
classic
TGV
16%
ICZ Brussels The Hague
70%
Thalys
SNCB Europe wins BeCommerce Award 2013
Turnover from international traffic
(million €)
for the webshop with the best mobile application. The
professional award was made in recognition of SNCB’s efforts to
integrate the latest communication technologies in its services to
customers. “The Belgian Railways received the award because they
270
250
have responded perfectly to the increasing demand from Internet
users wishing to purchase tickets via a smartphone,” stated the
interest group BeCommerce in its press release.
230
210
190
170
popular, partly due to the limited frequency and alternatives
in the shape of high-speed trains via France and Germany.
2007
2008
2009
2010
2011
2012
2013
213.8
225.7
212.8
236.1
235.1
240.3
259.3
300
9%
8%
26%
26%
25%
31%
36%
36%
34%
250
10%
200
29%
Turnover growth from international traffic
150
Despite the loss of Fyra, SNCB Europe’s income still grew
100
further (+7.9%). This is primarily due to the Benelux train and
50
the extra income on the Thalys Brussels-Netherlands route. As
0
was the case in 2012, passenger transport activities account
2006
200.9
Turnover per sales channel
(million € and marketshare)
Bordeaux link. The regular EuroCity to Basel (3% of the
passengers transported by SNCB Europe) is clearly less
2005
185.5
telesales
agencies
30%
internet
station
2011
2012
2013
for the bulk of SNCB Europe’s turnover. The website became
the leading overall channel in 2013, ousting the stations from
Turnover per activity
1%
the number one position. International customers are far more
accustomed than domestic rail passengers to booking their
journeys online. SNCB Europe has responded to this factor
with a very user-friendly site that is constantly evolving, and
a smart online marketing strategy. In a highly competitive
20%
other
distributor
79%
carrier
market a dynamic, demand-oriented distribution strategy is
the only way to assure growth.
inspiring travel
41
42
Inspiring mobility
The complex rail system plays a key role in our mobility, but its relevance is dependent on good
operating performance. The train must be synonymous with safety, punctuality and
comfort. Safety is and will remain the first priority, and SNCB made substantial progress in this
respect: in 2010 management committed itself to equip all rolling stock with the TBL1+ safety system
by 2013 and this has been done. Due attention is also being paid to other safety issues, to ensure
both the personal safety of passengers and staff and the proper functioning of the rail network.
Punctuality significantly deteriorated in 2013, primarily because of the long winter, but the first
months of 2014 show signs of improvement. Comfort is above all about providing sufficient seating,
and as a result of the delivery of the Desiro railcars the number of seats is steadily increasing.
Ultimately, mobility by train is dependent on a carefully devised service offering. In 2013, SNCB
completed its transport plan for December 2014, which involves a major revision of the rail
service and, because of its more robust structure, must also help ensure improvements in punctuality.
43
Safe train traffic: from TBL1+ to ETCS
Installation of ETCS in 2013
The installation of the TBL1+ automatic stop system was
completed in 2013. As a result, the safety level of railway
Total fleet
traffic has increased substantially. In practice, this has been
ETCS
30.8%
369
TBL1+
69.2%
829
achieved in a number of ways: in older rolling stock, TBL1+
1.198
has been retrofitted through specific modules (control signals,
antenna and train operation). This relates to the type 21/27
locomotives, the pre-2000 railcars (two-unit, four-unit,
diesel cars and the type 77 diesel locomotives. On other,
Public safety: an impressive
safety mechanism
usually more recent rolling stock, the existing ETCS equipment
SNCB’s safety policy focuses on maintaining a presence in
is used under the TBL1+ system.
public spaces. The Securail agents are deployed for maximum
The latest Desiro railcars are supplied with ETCS and TBL1+
presence in stations and on trains. An average of 452 Securail
active. As mentioned in previous annual reports, SNCB is
agents are responsible for preventive patrols and interventions
aiming for a complete ETCS fleet by 2023.
on SNCB property and on the trains (e.g. in the event of
Sprinter, Break, MS96), the M4 and M5 cab cars, the type 41
accidents, bomb warnings, graffiti, illegal traffic on the tracks,
Percentage rolling stock equipped with ETCS
100%
80%
26%
60%
31%
40%
20%
without ETCS
with ETCS
0%
2014
44
2015
2016
2017
2018
2019
2020
2021
2022
2023
Public safety: an impressive safety mechanism
public safety
human
presence
legal
framework
technology
collaboration
with local partners
rapid and
appropriate
response
etc.). In addition, an impressive array of technology is in place
Through partnerships with the various partners active in and
to support Securail. With 3,671 surveillance cameras spread
around the stations, SNCB contributes to a safe and pleasant
across 106 stations and 1,010 surveillance cameras at 133
station environment. At present, there are partnerships in
other sites (sidings, administrative buildings, cable parks,
place with 94 municipalities, 63 police zones, 19 judicial
etc.), the control rooms can monitor what is going on closely.
districts and 176 stations. This results in actions such as
In 2013, internal services, the police (including the SPC) and
graffiti jams, campaigns against pickpocketing and bicycle
the public prosecutor together requested images 3,744 times.
theft or joint patrols with the local police.
76% of these requests yielded a positive result.
At the heart of the security approach is the Security Operations
Center (SOC), the national control centre for security-related
incidents. In 2013, it received 82,429 calls, 3% more than in
2012. The emergency number is becoming more and more
widely known: in 2013 it received 5,835 calls (91% more than
in 2012).
Feeling of security increases
The quality barometer indicates that our customers are feeling
noticeably safer. Whereas 77% of respondents said they felt safe
in the departure station in 2012, that figure rose to 80% in 2013.
Likewise for station car parks, there was a score of 79% in 2013
compared with 71% in 2012. 86% of passengers said they felt
safe while on the train, compared with 80% in 2012.
inspiring mobility
45
Aggression against staff remains top priority
(62, up 41%). In order to reduce aggression against train
The SNCB master plan against aggression contains 55 action
guards, surveillance cameras were installed in the Desiros in
points that led to a clear decrease in the number of incidents
2013. Securail also works closely with the train guards and
last year.
Ticket Control Teams (Tico teams). In the majority of cases,
In 2013, there were 1,276 cases of aggression towards the
aggression occurs when a passenger is found to have an
SNCB staff, down 6%. The majority of these incidents involved
invalid ticket.
the train crew (1,074 cases of physical or verbal aggression).
In 2013, the Corporate Security Service organised a large-
This is a decrease of 9% compared with 2012, when there
scale survey of staff who come into contact with the public.
were 1,178 cases. The other cases of aggression targeted
They were asked about feelings of insecurity and the extent to
operational and sales staff (140, up 2%) and Securail agents
which they face harassment from third parties. The Corporate
Security Service intends to propose new measures to combat
aggression based on the analysis of the results.
Punctuality: a black year
Sadly, the positive trend that started after 2010 did not
Evolution of punctuality
continue in 2013. Only 85.6% of trains ran on time, compared
97%
with 87.2% in 2012. The neutralised average also declined,
95%
from 92.0% to 90.4%. One of the main reasons was
undoubtedly the exceptionally long winter, with a particularly
93%
cold March (the coldest since 1962, according to the weather
91%
statistics).
89%
The number of cancelled trains increased. The number of
87%
total cancellations rose from 6,898 in 2012 to 7,887 in 2013,
while partial cancellations increased from 12,071 to 12,693.
85%
1998
2001
2004
2007
2010
2013
Cancellations represented 1.59% of the total number of train
services provided (1.42% in the previous year). This is without
without neutralisation
with neutralisation
counting the trains cancelled after the derailment of a freight
train in Wetteren on 4 May. No fewer than 6,805 trains had to
Neutralised punctuality: punctuality figure that only takes
account of delays caused by the operation of the railway,
excluding external causes (weather, cable theft, etc.). This
figure is an indicator of the performance level of the railways
themselves and therefore does not reflect the experience of
travellers (= punctuality without neutralisation)
46
be cancelled as a result of the complete stoppage of rail traffic
for several weeks on the Gent-Dendermonde line.
Cable Thefts: 40% less following National Action Plan
Causes of delays
On 23 May 2013 the fight against copper thieves commenced
5.8%
other
20.9%
Infrabel
with the launch of the National Action Plan against cable theft,
including a symposium that was organised for more than 200
stakeholders. The enhanced surveillance of Securail, actions in
37.1%
cooperation with the Railway Police, technical procedures and
third
parties
new legal provisions seem to have put a spanner in the works
of the thieves. In 2012 there were still 1,362 cable thefts and
36.2%
SNCB
in 2013 this number dropped to only 810 cable thefts, which
is a decrease of 40%.
SNCB’s share in responsibility for delays increased slightly
from 35.1% in 2012 to 36.2% in 2013. Damage to rolling
stock was responsible for a large proportion of these delays.
The rejuvenation of the train fleet should ultimately reduce the
proportion of train breakdowns. However, new trains can also
suffer from faults. The type 18/19 locomotives do well, with a
technical fault every 10 months on average. The Desiro railcars
contended with teething problems on certain lines. SNCB has
devised a plan with manufacturer Siemens to boost reliability
systematically (e.g. by replacing semiconductors, adjusting
doors and checking cabling).
Infrabel’s share (infrastructure problems) increased from
18.7% to 20.9%. Delays caused by third parties fell from
40.3% to 37.1%. This category includes, for example, extreme
weather conditions, chief among these being the heavy
snowfall on 12 March, which resulted in 12,769 minutes of
delays. Other forms of third-party delay include cable theft,
suicides, people on the track and vandalism.
SNCB is responsible for 36.2% of delays. These are predominantly due to
train breakdowns, which affect rail traffic.
inspiring mobility
47
The transport plan 2014 is more realistic, more robust and focuses on improved punctuality.
Transport plan 2014: responding better
to mobility needs
and the expansion of our security systems and procedures are
A transport plan is like a blueprint for rail traffic: it defines
All these developments have been integrated into the
the lines on which and the timetables by which all trains on
existing framework of the transport plan, but the plan’s initial
the railway network operate. The current SNCB transport plan
coherence has ultimately been undermined, and this makes
dates from 1998 and was initially planned for a period of
the rail service more liable to problems. A single incident can
seven years and a 35% increase in the number of passenger-
be enough to trigger a snowball effect.
also affecting journey times.
kilometres. Between 1998 and 2012, however, the number of
48
passenger-kilometres increased by as much as 70%.
SNCB has therefore put four years of work into a new transport
Other factors have increased the pressure on the old transport
plan which is more robust, more realistic and focuses on
plan: the growth in the range of services following the
improved punctuality. However, a more realistic plan means
introduction of the high-speed lines, the creation of nine extra
that the average journey time becomes a little longer –
IC and IR connections, the start-up of major rail construction
firstly due to all the changes in rail transport that have been
projects (for RER), and regular maintenance and modernisation
mentioned, and secondly due to choices in the new transport
work on the network (the number of such projects has doubled
plan such as additional stops. For example, the commercial
over the last five years). The use of longer trains (extra seats)
speed of trains on average decreases by 1%. For the 100
most important routes, travelling time increases by 3.3%. The
The introduction of the transport plan in 2014 will be
transport plan 2014 is based on passenger flows and meets
preceded by extensive communication. Through provincial
the needs of the majority of travellers. It takes account of the
information sessions SNCB will provide information to its staff,
increased number of passengers and of expected growth until
the press and politicians on all levels and provide them with
2017.
the opportunity to respond. The plan can still be refined based
The plan will be launched in December 2014. For SNCB,
on this, without touching the basic principles of the concept
the challenge is immense: we will be carrying even more
(such as the pursuit of an improved robustness). The Annual
passengers using infrastructure that is under great pressure,
Report for 2014 will examine the substantive aspects of the
with the same financial resources.
plan in more detail.
Regional Express Network
Muizen
de
Malines
on
t
g
er
ps
m
te
re
n
He
Ve
l
nb
-K
w
er
te
ps
Er
Ko
r
ss
e
te
m
Di
r
se
ek
De
lta
M
er
od
Oud-Heverlee
St-Joris-Weert
Pecrot
l
ra
nt
Ce
es
gr
Et
te
rb
ee
k
rd
n
Co
B-
No
B-
’O
ie
rd
m
Bo
Gr
ae
oe
its
ll
ne
fo
rt
nd
Ho
aa
ei
l
la
La
a
Hu
rt
l
pe
Ge
Ri
nv
Pr
xe
al
of
ns
on
ar
ds
t
ar
t
zi
ng
e
Be n
er
oe sel
ns
be
rg
M
Hu
i
vi
e
n
ge
Limal
ek
be
m
Le
Ot
tig
ni
es
Vi
in
iz
Bu
Uccle-Stalle
Uccle-Cal
St
-J
ob
t
Lo
Bierges-Walibi
W
at
er
Vi
an
eGa
M
lm
oe
To
aa
rb
lle
rd
ek
He
en
m
e
b
rn
ee
e
k
l
ae
d
on
.
M
st
k
re
oe
Fo
br
is
Ru
l
Ha
Holleken
Louvain-la-Neuve
St-Genesius-Rode
De Hoek
Waterloo
Braine-l’Alleud
te
om
-C
-le
ne
ai
Br
s
re
ye
nu
RER: peak times 2 trains/hour
e
iz
n
He
b
Tu
RER : 1 train/hour
Wavre
Bo
i
id
M
B-
e
ek
RER: peak times
Basse-Wavre
le
el
ap
Ch
B-
b
el
Stop served by 1 train out of 2
Gastuche
Forest-Ouest
Linkebeek
Stop
Eerken
BLu
xe
m
b.
B-
e
rr
nd
he
Sc
em
eg
Id
en
rg
be
nd
Za
lte
pe
Ap
em
ch
Ei
BSc
hu
m
an
Florival
ve
no
Ni
m
ge
ke
O
em
rg
de
st
ue
Id
O
t/
es
-W
u.
is
Br
on
m
Si
Hi
llg
He em
Te rze
rh le
ag
en
Bu
rs
t
Ha Ede
al
te
r
W t
el
le
e
Ha
Bo ren
Ev rde
t
er
e
Heverlee
ei
be
er
ha
M
Sc
Liedekerke
Enghien
Lillois
Nivelles
i
ro
rle
a
Ch
rs
Ve
RER: 2 trains/hour
No
eg
em
lik
Ze
l
Te
r
ne
-L
o
na mb
ee
t
St
k
-M
ar
Di te
lb ns
-B
e
od
Gr ek
eg
oo
em
St t-B
-A ijg
ga aa
r
th
a- den
Be
rc
he
m
Burda
d
Es
se
Su
d/
de
Bockstael
ui
bo
Jette
-Z
n
re
Er
em
Louvain
Vilvorde
Ha
ge
m
M
er
ch
M
te
ol
m
le
As
m
se
O
pw
ijk
Eppegem
Zottegem
Grammont
ge
m
ek
e
bb
He
iz
ijd
Le
e
St
-G
nd
De
e
ill
er
ad
is
m
t
fs
Aalst
Denderleeuw
Ho
Weerde
Za
ve
n
New transport plan 12/2014 :
full service - week
inspiring mobility
49
REN
Antwerp
Overview of infrastructure works
and planning (Infrabel map)
Northern airport connection
(completion Diabolo)
Mechelen Bypass
Lokeren
June 2012
Mechelen
DENDERMONDE
Nossegem curve
December 2005
VILVOORDE
Louvain curve
December 2006
L25N-L26 Connection
Ghent
LEUVEN
AALST
L25N-L25 Connection
DENDERLEEUW
BURST
4 sided grid
Schaerbeek
Dec. 2018
Kortrijk
Liège
SCHAERBEEK
JOSAPHAT
4 tracks
Brussels - Louvain
December 2006
Ottignies
BRUSSELS-NORD
NINOVE
BRUSSELSSCHUMAN
BRUSSELS-CENTRAL
Geraardsbergen
Dec. 2015
Watermael - Josaphat
+ tunnel
BRUSSELS-MIDI
3th and 4th track
Brussels
bifurcation SintKatherina-Lombeek
December 2015
Grid
Brussels
-Midi
Junction L26-L161
WATERMAEL
*
4 tracks Brussels - Halle
4 tracks
Watermael - Y Louvain-La-Neuve
LINKEBEEK
Dec. '97 + Dec. '06
December 2018
Leuven
HALLE
4 tracks
Uccle Nivelles
GERAARDSBERGEN
ENGHIEN
WAVRE
BRAINE-L'ALLEUD
Dec 2020
Infras truc ture works
completed
under construction
planned
Tournai
Paris
Mons
* Central tracks modernised : 2016
LOUVAIN-LA-NEUVE
OTTIGNIES
BRAINE-LE-COMTE
NIVELLES
Namur
C harleroi
VILLERS-LA-VILLE
50
New mobility: the REN for Brussels
from December 2014, especially during the rush hour, will be
In the new transport plan 2014, SNCB has devised a train
able to count on a very finely-meshed and frequent service,
service with a specific REN offering on the lines included
which already takes account of the future deployment of new
in the Regional Express Network project for Brussels. As a
infrastructure in 2015/2016.
result, customers making journeys in and around Brussels
To introduce the overall REN service offering, the necessary
infrastructure work needs to be completed. The infrastructure
stands for more capacity, more trains and more comfort on the
manager Infrabel will have completed several large projects by
major rail lines to and from the capital. REN combines speed
2015/2016 that will make an increase in capacity possible at
and frequency. Therefore, a separation of direct trains and the
certain places. By 2025, it will be possible to exploit to the full
stop trains is imperative. Infrabel also doubles the capacity of
the opportunities that the new infrastructure will provide.
the major railway routes around Brussels. Instead of 2 tracks
REN lines will have access to 4 tracks. REN trains that have to
The Regional Express Network (REN):
ambitious infrastructure project
stop frequently will therefore have their own tracks without
The Regional Express Network (REN) must improve public
line stations and train stops will be renovated. A number of
transport in a radius of 30 kilometres around Brussels. The REN
new stops, such as Mouterij, Arcaden and Diesdelle, must
interfering with direct train traffic. In the context of REN most
Luc Lallemand, CEO of Infrabel, with Jo Cornu, CEO of SNCB, and the Minister for Public Undertakings, Jean-Pascal Labille.
Close collaboration between SNCB and Infrabel is crucial for improved train mobility.
inspiring mobility
51
rail lines with each other. The Schuman Josafat tunnel should
Evolution number of seats
provide more breathing space for the Brussels railway network.
500,000
The European region will get direct access to the largest cities
450,000
of the country and Brussels Airport due to this key project and
2017-2025: + about 145,000 seats
the newly established Diabolo.
400,000
350,000
Certain sites have since been completed, e.g. the Diabolo
330,674
connection to the airport, the four lines between Brussels
300,000
and Halle and the four lines between Brussels and Leuven.
250,000
Several sites were launched for the other routes. The complex
200,000
1990 1995 2000 2005 2010 2013
2017
2025
decision and the fact that the lines must remain in service at
all times mean that the completion of this infrastructure will
be a challenging task. Close collaboration between Infrabel
and SNCB should result in a limited impact on train services,
despite the sometimes radical changes to the infrastructure.
New timetable, new trains
create new opportunities for mobility. The new REN stop
Virtually all new type 18/19 locomotives (116 out of 120)
Anderlecht will be on the Brussels-Denderleeuw line.
had been delivered by the end of 2013. Of the 305 Desiro
In order to improve mobility in and around the European
railcars ordered, 153 are now in operation. The modernisation
quarter, Infrabel will build a new tunnel to directly connect
work is also proceeding at a steady pace: 38 Breaks have
the Brussels-Namen (line 161) and Brussels-Halle (line 26)
been overhauled and a start has been made on constructing a
New rolling stock orders
Type
Function
Order
date
Delivery
date
Number
Number
delivered
Budget
(31/12/2013)
T18
Electric dual-voltage locomotive
T18
Desiro
52
Three-unit railcar, including 95 for the RER
2006
2011-2012
60
60
€ 211 million
2008
2012-2013
60
56
€ 220 million
2008
2011-2016
305
153
€ 1,425 million
prototype for the modernisation of the four-unit railcars from
In 2013, SNCB moved up a gear in this respect. In September,
the 1970s.
the construction of a new workshop in Kinkempois (Liège) was
To keep pace with future passenger growth, SNCB defined a
initiated. Preparations were also started for a new workshop
first set of specifications in 2013 for the purchase of new M7
in Stockem (Arlon), and SNCB finally received authorisation
double-decker carriages. These need to be able to travel at
for the construction of a new workshop in Melle. In addition,
200 kph under two voltages (3 kV for the classical network, 25
a new maintenance shed will be built in Hasselt in the course
kV for the high-speed lines). The level of comfort offered must
of 2014: the land has already been cleaned up and made
be comparable with that of the M6 carriages. In addition to a
ready for the work. Plans are also currently being drawn up for
spacious interior, the difference between first and second class
Ostend, where SNCB wants to start work in 2015.
will be clearer than in the M6 carriages. The new carriages
One of the models for the new work sheds is the maintenance
must make it possible for SNCB to change the composition of
hall in Charleroi, built in 2012, and specifically equipped for
trains easily, and the railcars must of course be equipped with
maintenance work on the Desiro railcars.
the ETCS safety system. In total, SNCB plans to order 1,362
units, with delivery to start in around 2018 and continue until
2025.
Overhaul for the workshops
Despite regular updates, quite a few SNCB workshops no
Investing in local employment
With its investments in the workshops SNCB is also providing jobs
longer meet the maintenance requirements for the latest
in the various provinces of Belgium. The new Melle workshop
trains, and working conditions are not optimal either. Some
costs around 126 million euros and will consist of two large
infrastructure is outdated, which adversely affects the speed
and efficiency of maintenance. SNCB plans to prepare for
future needs with the construction of new workshops and
maintenance sheds.
maintenance sheds: one for traction equipment and one for
carriages. At Kinkempois, a major new shed will be added with five
long tracks (268 metres) to create a large maintenance capacity
(total investment: 66 million euros). The planned shed in Hasselt
(25 million euros) mainly focuses on more efficient maintenance
of the M6 double-decker carriages. The shed will make it possible
to maintain these without uncoupling them from the train set. This
will generate considerable time savings, as there will be no need
for uncoupling and shunting manoeuvres.
Smaller projects also require significant investments. Thus the
Mechelen Central Workshop invested 7.7 million euros in 2013,
primarily on modernising equipment and carrying out energysaving work such as modernising and insulating the roofs. The
installation of a new train wash unit in Schaerbeek represents an
investment of 5.6 million euros.
inspiring mobility
53
54
Inspiring stations
SNCB considers stations as first-class intermodal hubs where trains, passengers, bicycles,
buses, trams, the metro system and cars come together. They also serve as focal points
that have significant economic and social potential in the town or municipality. All this therefore
fits in with our mission to modernise and develop stations and the areas around them, to provide
facilities and services in stations and to play a key role in urban development and consolidation. The
strategic vision of stations can therefore be based on five fundamental themes: intermodality,
accessibility, sustainability, safety and business development. The main goal is to save time
for station users by giving them the opportunity to spend their time usefully.
55
improve mobility
in Belgium
56
development and
improvement of
play a central
modernisation of stations
customer service and
role in urban
and their surroundings
services in stations
development
MISSION
an intermodal
hub
accessibility
sustainability
security
a dynamic
business
centre
VISION
STOP-principle
to be applied
connect urban
areas
(connectivity)
energy/
renovation
savings
security
service
provision
STRATEGY
provide preand post-travel
facilities
signs and
legibility
projects with
low future
maintenance costs
safety
extra
services
develop
intermodal
services
accessibility for
people with
reduced mobility
sustainable
pre-and posttravel facilities
increase
the sense
of security
mix between
habitat, work
and leisure
Stations in pace with society
Does our country have too many stations and stops?
0.5% of passengers
76 stations and unstaffed stopping points (14)
100%
80%
With 550 stations and stops Belgium has a dense and
60%
extensive network. With the decline of traditional industries
and a change in mobility, quite a few of these stops have lost
40%
their importance.
20%
The 25 largest stations handle 60% of passengers and
0%
the 80% of passengers pass through 80 main stations. 76
unstaffed stopping points only account for 0.5% of travellers.
Intermodality: stations stimulating
sustainable mobility
25 stations (5%)
80 stations (15%) +/- the largest stations under the management contract
550 stations (100%)
"CAMBIO" carsharing
Carsharing offers a sustainable solution complementary to
train transport. That is why SNCB and Cambio have signed
a partnership agreement to offer shared cars at a series of
stations. As of the end of 2013, 65 Cambio cars are available
Gent-St-Pieters, Leuven, Sint-Niklaas, Turnhout, Charleroi-Sud,
at following stations: Brussels-Midi, Namur, Antwerpen-
Liège-Guillemins, Liège-Palais, Mons, Namur and Ottignies. The
Centraal, Antwerpen-Berchem, Brugge, Gent-Dampoort,
number of customers is growing every year.
60% of passengers pass through the 25 largest stations.
inspiring stations
57
Belgian stations ranked among
the most beautiful in the world
Belgian bike sharing model has been adapted from the Dutch
Two of Belgium's stations are ranked among the "ten most
growing slowly but surely. It also took five years for the service
beautiful stations in the world". Newsweek, CNN and the
to take off in the Netherlands.
popular American blog mentalfloss consider the stations of
Antwerp and Liège bench-marks. For a "small country", Belgium's
experience is all the more remarkable, since it can highlight, with
"OV-fiets" system. The number of subscribers and sites is
Charging points for electric cars
Antwerpen-Centraal, both bringing an old station into line with the
SNCB wants to offer new mobility solutions with charging
requirements of the 21st century and of high-speed travel, and,
points for electric vehicles (cars, motorbikes, cycles) in the
with Liège-Guillemins, the creation of a new station that combines
parking lots. Travellers opting for sustainability thus have a
a new architectural design and new technological solutions for rail
infrastructure.
double advantage. Their cars charge in the station car park
while they are at work.
Antwerpen-Centraal, Ottignies, Namur, Brugge, Gent-St-Pieters,
Hasselt and Leuven are already equipped and now have
6 spaces for electric cars, 6 places for electric motorbikes
and 6 places for electric bicycles. These will be followed by
facilities at Charleroi-Sud, Nivelles, Liège-Guillemins, Kortrijk,
Arlon, Etterbeek, Antwerpen-Berchem, Sint-Niklaas, BrusselsMidi, Brussels-Central, Brussels-Luxembourg, Aalst, Ath,
Cycle points
Mons, Braine-l'Alleud, Denderleeuw, Dendermonde, Tournai,
Cycles are a sustainable mode of transport and combine well
Gembloux, Gent-Dampoort, Liège-Palais, Mechelen, Oostende,
with train transport.
Libramont, Vilvoorde, Zottegem and Brussels-North. By the end
Today, 46 stations have a cycle point. These cycle points help
of 2014, charging points will be available at 34 stations.
with the maintenance and social control of cycle parks. A new
call for tenders was held in 2013.
Operation of car parks
Since the reorganisation of the Belgian Railways, SNCB is in
58
Blue-bike
charge of the entire management of the 56,804 parking spaces
The Blue-Mobility subsidiary operates Blue-bike rental, in
available near stations. The subsidiary B-Parking manages
partnership with the Cycle points.
19.199 of those parking spaces on 53 guarded sites. The
The "Blue-bike" service is now available in some sixty towns
construction of parking lots will continue in the next years
and cities, which will very soon be joined by a further twenty
following the same philosophy: a pricing policy tailored to the
sites. Blue-Mobility considers all proposals for new sites
local service and offering major preferential benefits to train
with any towns and municipalities that want the service. The
users, to save them time.
Accessible to everyone
The station must be accessible to everyone, including people
with reduced mobility, disabled people, people with young
children, passengers carrying luggage, etc. A station building
can be said to be accessible when:
• it has at least one entrance that is totally clear of any obstacles, connecting the public highway and the ticket hall;
• it has at least one platform access point that is clear of any obstacles;
• it has toilet facilities specifically for people with reduced mobility in addition to the toilets for other passengers;
• it has guiding lines for the visually impaired (tactile paving);
• the car parks have enough spaces for people with reduced mobility.
When works or renovations are being carried out in a station,
these criteria are also taken into account. At present, 51 station
59 stations (serving 59% of passengers) are accessible to people with
reduced mobility.
buildings meet these 5 accessibility criteria. These stations
serve 2,870,000 passengers per week, or 59% of passengers
on the network as a whole. The end goal is to adapt all station
buildings to the needs of people with reduced mobility by
Green stations
2028. In addition to these infrastructure changes, SNCB
SNCB strives to make stations more sustainable. Increasingly
also provides assistance to people with reduced mobility in
often, they are designed according to the "Trias Energetica"
stations. Since the start of this year, SNCB has also taken over
principle. First of all, station buildings have to be well
platform management and it will thus make platforms and
insulated in order to avoid wasting energy. Sustainable energy
platform access points accessible by installing ramps or lifts.
sources then need to be chosen where possible and, lastly,
When platforms and the station building are accessible to
energy must be used as judiciously as possible by using
people with reduced mobility, a station can then be said to be
the most efficient installations. The environment is always
fully accessible. At present, 29 stations are fully accessible.
taken into consideration, including in other new construction
projects planned by SNCB. Due to the way they are built,
some existing stations are not easy to maintain. That is why
easy accessibility to maintenance equipment should be borne
inspiring stations
59
The presence of Securail officers increases the sense of security.
in mind and suitable materials (e.g. anti-graffiti materials)
More security and safety
should be used in the design of new buildings. Providing
Safety can be divided into "security" and "safety". Security
a separate loading and unloading area away from public
involves protecting things that are put in danger as a result
areas also contributes to the overall aesthetics and customer
of malicious acts (break-ins, theft, attacks, etc.). Safety covers
comfort.
accidents and inadvertent acts.
The principle of sustainability also applies to the areas around
stations. Sustainability does not only mean low-energy
Security. Places where lots of people congregate are inevitably
construction, but it also means preserving natural heritage
targeted by less well-meaning people. Railways are no
in a rural setting and creating urban consolidation by means
exception. Moreover, passenger numbers continue to grow.
of compact development and considered use of space. In
That means we have to adapt our strategy so as not to damage
urban centres, stations provide sustainable solutions by
the feeling of security among passengers and staff.
simultaneously offering convenient mobility solutions and
60
multi-functional consolidation (housing, shops, offices). All on
To guarantee safety of people in the stations, all buildings
land owned by SNCB.
are fitted with a fire detection system. In the near future, it
will also be possible to operate these remotely. This makes
This new business development must be accounted for in
it possible to follow up on a central level whether an alarm
station design: there need to be spaces, perhaps not at the
went off due to a fire, a breakdown or something similar. All
entrance, but available for customers' requirements in the
stations also have evacuation systems and smoke extractors.
future, while keeping passenger flows the priority. Flows are
The fourteen largest stations are equipped with automatic
directed in such a way that passengers pass both businesses
defibrillators.
linked to rail transport and other businesses.
Customer satisfaction is also closely related to the sense of
Stations are increasingly turning into dynamic business
security. There are several options available to anticipate this:
hubs, in which a vast range of commercial services (catering,
no hidden hooks and corners, adequate social control, good
food, non-food, vending machines, book shops, Internet
lighting, cameras in strategic places, ... When designing the
hotspots, etc.) are also provided, both for passengers and non-
stations, car parks and their environment, these options must
passengers, alongside the ticket offices and ticket machines.
be integrated as far as possible and reflected in a functional
Of course, these services are tailored to the regional
space.
importance of a station and to the needs of its surroundings.
Stations become dynamic hubs
Today new services are arriving in stations. Alongside shops,
SNCB is proving to be innovative when it comes to its
stations, launching Belgian and European pilot projects in
them. Alongside pharmacies and hair salons, ironing services
are opening, along with crèches, blood sample centres, etc.
The next development will undoubtedly be the opening of
Concession revenue
(million euro)
"Business Clubs" in large stations in order to be able to cater
for the rising demand among businesses looking for modern
facilities that meet their comfort requirements, to meet their
30
prospective customers, contacts or business staff for business
25
meetings in a central and accessible location. Since charity
20
begins at home, SNCB provides "Flex-Office" offices for staff on
15
business travel.
24.7
24.7
22.1
19.7
10
5
Publifer
concessions
0
2011
2011
2012
2013
inspiring stations
61
Concessions and advertising
points, toilets, etc.) and to see which shops are in the station.
Revenue from concessions saw a status quo in 2013. If we
This application can display additional information that cannot
do not take into account the effect major works had in some
be displayed on traditional signs or paper posters, such as
stations (Mons, Aalst), the closure of Blankenberge station,
opening and closing times. The mobile application also allows
the lack of tenants for some diamond shops in Antwerpen-
passengers to find out exactly where they are in the station
Centraal, and the downturn in Publifer advertising revenue
and to plan their itinerary, using the geolocation options
(-8%), revenue from concessions went up by 5%. This
traditionally found on mobile devices.
success is down to growth in the "Convenience" sector, which
comprises bakeries, sandwich bars, snack bars, cafés, etc., as
WI-FI in stations
well as the use of vending machines.
Since 2005, there has been Wi-Fi coverage in several areas of
New shops and services opened in 2013, such as pharmacies
the main stations. However, demand has now skyrocketed, as
(Antwerpen-Centraal, Charleroi-Sud), car rental (Namur,
smartphones, tablets and laptops have become commonplace.
Liège-Guillemins), and a blood sample centre (Liège). Pop-
SNCB has resolved to meet that demand. It will initially roll out
up shops also brightened up the stations of Antwerpen-
public Wi-Fi in 95 stations, before a second roll-out phase for
Centraal, Brussels-Central, Namur and Brussels-Midi at various
the remaining 60 stations. A study is under way and operators
times. Gent-St-Pieters station has just unveiled a new and
are being contacted.
exclusive service: the first digital tourist information stand.
Tourists can speak live with the municipal tourism service via
videoconferencing.
Focus on projects in Mons, Mechelen
and Brussels-North
Well-known brands continue to increase their presence, thus
accentuating the role of our stations as important centres of
Mons
activity in the heart of the city.
In terms of passenger numbers, Mons station is the fifteenth
busiest in Belgium and the fifth busiest in Wallonia, serving
62
New technologies in stations:
around 20,000 passengers every working day. In 2004, SNCB
Google Maps
decided to undertake a major renovation of the site. The study
SNCB has entered into partnership with Google so that the
started in 2004 led, in an ongoing dialogue with the municipal
interiors of some of the largest stations in Belgium can be
authorities, to an innovative concept marrying functional and
viewed on Android and iOS mobile platforms, as well as on PC.
architectural vision with concerns relating to town planning,
As of April 2013, 33 stations are available on Google Maps,
the environment and mobility.
including Brussels-Midi, Antwerpen-Centraal and Liège-
It involves simultaneously making the railway site the link
Guillemins. This functionality enables the user to get around
between two areas with their own specific features, the
easily, to view the various services available (Blue-bike, cycle
historic city centre and the development hub of Grands
The new station at Mons will reshape the urban environment and link two areas of the city.
Prés, and ensuring maximum accessibility and intermodality.
Grands Prés side, the station is connected to the adjoining
It also involves creating a quality living space in line with a
development area, which will be home in particular to the
philosophy of sustainable development which, once customers
future conference centre and will be readily accessible from
have entered the station, ensures optimal customer service,
the motorway. Planned car parks offer 862 spaces in total.
whether they are passengers or not (pedestrians, cyclists),
and meets their needs in terms of services, shops, clear signs,
In addition, the station is not just a railway station; it is also a
convenient platform access, comfortable waiting facilities,
bus station, which makes it unique. The first two platforms, on
security, etc. This study led to a conclusion that brought about
the city side, are shared train/bus and bus/kiss&ride platforms.
a major change: the construction of a station-footbridge and
It is a long-awaited first. It could thus not be any simpler to
the rearrangement of all traffic flows on the city side. On the
switch from one mode of transport to another.
inspiring stations
63
Mechelen: ambitious master plan
The cooperation agreement of 9 May 2008 integrates the
objectives of SNCB, the city of Mechelen, the Flemish Region
(AWV), Infrabel and De Lijn into a master plan for the entire
station area. The master plan includes, among others, the
construction of a new access road to the station area, the
construction of an underground commuter car park with
2,000 parking bays, the complete renovation of the station
and the platform infrastructure, construction of new bicycle
infrastructure and construction of a new bus station.
The number of bicycle bays will be increased from 1,800 to
5,500, which will also be expandable in terms of growth. The
implementation of a bus station with 18 platforms will ensure
a smooth transition between modes of transport.
The project provides an answer to the mobility challenges
of the 21st century, but also shows respect for the railroad
history of Mechelen. A cluster of three historic buildings
that belong to the oldest railway workshop on the European
continent (1837-1844) was moved with an ingenious sliding
operation to outside the planned route of the ring road.
The construction of the rail bypass by Infrabel (provides
greater capacity and allows speeds of up to 160km/h) is also
integrated into the project. Work started in October 2012 and
should take 10 years to complete.
Brussels-North: renovation operations for the future
The Brussels-North station was opened in 1952 and with more
than 48,000 boarding passengers per day it is the fourth most
important station in the country. That number will increase in
the coming years, but the railway station is not designed for
that many passengers. The expectations of passengers have
The Mechelen master plan completely overhauls the station and the area
around it to meet the mobility needs of the future.
64
also greatly evolved. A complete structural renovation should
solve that.
during the next phase of the project. All public areas of the
A portion of the work has now been completed: the restoration
station must be redeveloped with maximum respect for the
of the façades, renovation of various technical installations
authentic materials and the original colour palette. Close
(including signal box, substations and associated cabling),
attention will be paid to accessibility of the station, including
improvement of the platform infrastructure with the extension
new elevators and escalators to additional platforms. The
of the platforms and the renewal of the escalators, the
structure of the station is simplified so that passengers will
establishment of a new travel centre, renovation of the
be able to easily find their way. The change from train to
offices for the departments of SNCB and the renovation of the
bicycle, taxi, public transport, etc. should be able to run more
façades.
efficiently. Finally, the range of shops and services will be
The entire ground floor and the first floor will be addressed
expanded. Implementation is scheduled for 2014-2018.
The modernised Brussels-North station: the concourse is restored to its former glory, with improved integration of new services and concessions.
inspiring stations
65
66
Inspiring our staff
SNCB is one of Belgium's largest employers. Recruitment is an important challenge: with lots
of staff members approaching the end of their career, leavers need to be replaced while ensuring
that their knowledge is passed on within the company. Therefore, railway is positioning itself as an
attractive employer and we emphasise in our campaigns the diversity of the posts we are
looking to fill, the good working environment and teamwork.
67
34,452 FTEs as of 1 January 2014!
Who are they?
As of 1 January 2014, there are 35,898 members of staff,
4387 women account for 12.2% of staff. Growth is slow but
compared with 36.851 employees at the same time last year.
steady. The figure may appear low. That is because there are
That corresponds to 34.452 full-time equivalents (FTEs).
many technical jobs on the railways. Consequently, women
96.5% of staff are statutory employees.
account for 0.11% of mechanical engineers (in absolute
terms: one woman versus 946 men), and 0.37% of electrical
Through the renovation of the railways, decided on in 2013
engineers (14 women versus 3,816 men). However, the
and implemented in 2014, the tasks and responsibilities
ratios are greater for managerial staff (21.28%), train guards
of the company have changed. One of the objectives of
(27.87%), graduate staff (30%), and administrative staff
the renovation is to once again focus on the customer. For
(45.20%), reaching 85.90% for paramedic roles.
this reason, SNCB is now for instance fully responsible for
contact with rail passengers. The distribution of the number of
What do they do?
employees has therefore undergone a number of changes. The
There are many jobs in SNCB: over 300. Train drivers form the
table below shows how the distribution was achieved.
biggest group at 4,583. They outnumber electrical engineers
(3,830), station staff (3,443), administrative staff (3,228), train
guards (2,899), and track engineers (2,262). There are "only"
562 security staff. The staff includes 1,753 graduates (5.1%).
Over 2000 new colleagues in 2013
In 2013, we recruited 2,044 new staff for the Belgian Railways.
That is the highest number of recruits for 10 years! Although
Where do they work in the new
organisation (FTE)?
huge problems in finding new recruits for jobs that are short-
as at 31/12/2013
as at 1/1/2014
3,782
-
HR Rail
-
897
Infrabel
11,637
12,096
SNCB
18,122
20,683
Staff on secondment
776
776
Social security
135
-
34,452
34,452
Holding
Total
68
the railway is an increasingly desirable employer, there are still
staffed. For several years, we have focused most of our efforts
on recruiting candidates for these problematic jobs. We have
also drastically shortened the selection procedure: from more
than four months in 2009, it now takes 5-6 weeks!
In 2013, SNCB recruited 412 new train drivers.
Of the 2,044 new members of staff, 51% are under 30 years
Preferential target audience: young people!
of age (2% are under 20, while 6% are aged over 50). 15% of
In 2013, various actions were again undertaken to encourage
recruits in 2013 are female. Recruits in 2013 were essentially
young people to choose technical training. The railway also
train drivers (412), "track" engineers and specialist staff (321),
electrical engineers (196) and guards (152). 154 graduates
were also recruited.
partners with the "Youth Technology Olympics" held by BEST
(Board of European Students of Technology), which holds an
engineering competition across six university campuses in
Belgium; and BERT (Belgian Railways Competition for Technicians),
which in 2013 challenged students with the acute problem of
cable theft. We are also working with the Ghent Trade Centre,
which gives young people aged between 11 and 14 information
on essentially technical and practical studies and professions.
inspiring our staff
69
during visits focusing on short-staffed jobs, can see what the job really involves "live". The aim is to convince them to choose the railway for their first job!
• Holding "Jobdays" to become a railway worker in a day. We held 17 "Jobdays" in 2013. A jobday proceeds as follows: the morning is devoted to learning about the company and the job concerned, while the complete selection procedure
takes place in the afternoon. In this way, the candidates know by the end of the day whether they have been successful.
• 144 engineers were also invited to visit behind the scenes SNCB’s recruitment campaign has already been going on for 7 years
and is still a great success.
of one of the largest infrastructure building sites to improve mobility in Brussels: the Schuman-Josaphat tunnel and the RER works.
• In 2013, SNCB's "Ambassadors Club" had 318 members. This club is made up of railway staff who are prepared to go to schools and job centres to give a presentation about their 70
How is recruitment carried out? 1.1 million online visitors!
job.
A number of initiatives have been in place for several years.
• Original recruitment campaigns are launched every year. The They are optimised every year for the sake of performance.
"Refer a friend" scheme, which encourages members of staff
• The website www.lescheminsdeferengagent.be. In 2013, to recommend new colleagues in targeted professions, led the website received almost 1.1 million unique visitors. to 83 applications being submitted in 2013, 31 of which An increase of over 38% compared with 2012! Those were for train drivers. The campaign based on the game visits corresponded to 36,956 applications being submitted "Guess Who?" enables members of staff to recommend an (+13.3%).
SNCB job to their Facebook friends; including "job" • The "Construisez avec nous le train de demain" ["Help messages with payslips, etc.
us build the train of tomorrow"] media campaign regularly • The weekly inclusion of campaigns on the "Metro" and changes the images it uses, always presenting members of regular publications in the national general and specialist the company's staff, but it remains very recognisable (with a press.
recall rate of 42%).
• Transurb-Technirail has also developed a train driving • School visits (18), visits to our workshops (94 classes), job
simulator that can be used as a promotional tool in job centres (77) or information sessions (9). Young people, centres and online.
Working for one of the biggest and best
known companies in Belgium
jobs that cannot be learned at school. The provision of training
The 2013 Randstad survey on the attractiveness of employers
continually meet the railways' needs.
at the internal "Train@Rail" centre is also always tailored to
ranked SNCB in 17th place. It marks the first time that the
railway has entered the top 20 most attractive employers.
Why work on the railways? 7 reasons for choosing
SNCB compares favourably with other large companies, such as
Surveying our new employees allows us to find out exactly
bpost, Electrabel and TEC/De Lijn, and its image as an attractive
what reasons led them to choose SNCB. Here they are in order
employer continues to develop.
of preference.
Job stability is clearly one of the main reasons that people
1.Teamwork
choose the railways. However, we at SNCB can offer other
Effective rail transport and major infrastructure works to make
benefits, such as a very extensive range of interesting, useful,
it happen can only be built in teams, with specialists from
sustainable and appealing jobs. The railways also offer even to
various disciplines. There is therefore mutual learning, which
pay for the cost of training employees in these typical railway
enables employees to take their career in whichever direction
New employees choose SNCB because of job security and the wide range of interesting and sustainable careers on offer.
inspiring our staff
71
they like. There is an enjoyable working atmosphere in these
4. Long live ongoing training!
teams.
Train@Rail, the railway training centre, does not just provide
basic training, paid for by the company, it also provides
2.Job security
ongoing training for staff. It does not just provide training
As a state-owned company, the railways offer more job
for specific jobs, such as train driver or guard, but also gives
security than the private sector. Even when times are harder,
management or language-learning classes.
trains have to run. The public sector thus offers statutory
posts for certain jobs. Staff can thus spend their entire career
5.Promotion possibilities
on the railways, benefiting from many job opportunities,
The railways enable every employee to fulfil their ambitions.
workplaces and levels.
Promotion examinations are open to all those who want to
develop or go in a different direction in society.
3.Clearly described, interesting tasks
The working environment is unique, whether an employee
6. Attractive pay
works in stations or on board trains, behind the scenes or on
Good pay, along with meal vouchers, bonuses, health
the tracks or in the workshops. Duties are made clear and
insurance and a free train pass. Not to mention possible
objectives are clearly understood, in a technical as well as in
bonuses for night and weekend work or the productivity bonus
an administrative environment.
for your daily commitment.
7. Social responsability
Fast and safe rail transport is important for "living together":
fewer traffic jams on roads, less air pollution, accessible
mobility for all, better freight, etc. Every day on the railways,
employees make their contribution to our society's sustainable
development.
Over 20% of staff choose to work part-time.
72
A significant focus on the work/life balance
Besides adjusting working time, the railways offer other
We think it is very important to seek the best work/life
services to improve work/life balance. The social service thus
balance for every employee. How? By offering two part-time
arranges child care for employees' children aged 3 years and
working options: half-time or 4/5ths time (32 hours/week).
above during school holidays, in Belgium and abroad. Not to
The railways offer employees various ways of managing their
mention "Kids' Days", which look after employees' children
working time and career. Employees can choose to work fewer
aged from 3 to 14 every day. 427 children took part in 2013.
days per week or fewer hours per day in order to find the
If children are unwell during the year, the social service also
work/life balance that suits them best.
looks after them: a contract was signed at the end of 2012
with a company that provides home-based child care for
In 2013, over 20% of staff members enrolled in a part-time
unwell children. In 2013, staff members used this service for
scheme. The vast majority chose the 32 hours/week option.
113 unwell children.
Employees under 30 years of age are the least interested in
by almost one employee in every three. Almost 20% of all
Train@Rail 2013 : people management
& team-building
male employees and over 30% of female employees work
Train@Rail, the training centre for Belgian railways provided
4/5ths or half-time.
23,503 days of training in 2013. Demand was mainly for
these options. Among those over 50, these options are chosen
language training, ICT training and training for trainers.
Just like other companies, SNCB pays special attention to
leadership training, both for managerial staff and for team
leaders in the field. It is the logical continuation of Infrabel's
"People Management" and SNCB's "BeLean Leadership"
recurring initiatives. The emphasis in 2013 was on quality,
customer focus and continuous improvement. The level of
satisfaction with the training sessions rises year after year.
Train@Rail: Qfor certification
In order to validate its processes and quality monitoring, in
2013 Train@Rail decided on external benchmarking through Qfor,
the training body certification institute. An internal pre-audit was
carried out in June, a harsh audit in November with 25 indicators
identified and "Qfor Quality" certification was awarded at the start
of 2014!
inspiring our staff
73
74
Inspiring financial management
Annual report of SNCB
drawn up in accordance
with Articles 95 and 96 of the Company Code
75
In accordance with Articles 95 and 96 of the Company Code,
the Board of Directors has prepared an annual report providing
information about the following points.
A. Financial report
General development in 2013
Information relating to the annual accounts
SNCB recorded EBITDA of €-93.1 million in 2013, compared
Operating income was down by €6.8 million compared with
with €-45.1 million in 2012.
2012.
The net result of SNCB for 2013 was €-330.7 million,
compared with €-152.3 million for 2012.
The main components of this decrease were higher turnover
(€41.2 million) and decreases in other operating income
The net result for the year was negatively impacted by non-
(€-32.7 million) and the production of assets (€-13.1 million).
recurring impairments in connection with the settlement of
the Fyra case (€16.4 million), the revaluation of the stake in
Compared with 2012, SNCB’s turnover was up by €41.2 million
and receivables from SNCB Logistics sa (€109.4 million), and
or 2.0%.
the additional provision made to cover the difference between
the market price and the actual cost of services provided to
B-Mobility’s turnover was down by €1.2 million or 0.2%,
SNCB Logistics sa (€18.0 million).
whereas B-Europe’s turnover was up by €19.0 million or 7.9%.
Freight Services’ turnover fell by €15.7 million or 35.0%. Other
The impairments and provisions recorded take into account
turnover rose by €1.9 million or 1.0%. Subsidies increased by
a realistic assessment of the further development of freight
€37.2 million or 3.8%.
activities at both the autonomous freight subsidiary SNCB
Logistics sa and SNCB itself.
The decrease in other operating income is primarily due to
the recognition in 2012 of non-recurring effects such as the
Within the limits authorised by the decision of the European
penalty for late delivery imposed on a supplier of rolling stock
Commission dated 26/05/2010, SNCB firmly intends to abide
(€25.0 million) and an insurance company pay-out following a
by its commitments to its freight subsidiary SNCB Logistics sa.
fire (€2.7 million); non-recurring income in 2013 was limited
to €6.1 million, relating to the recalculation of the operating
SNCB also wishes to open up the capital of its freight
subsidy for the STIB share in SNCB train tickets (€1.3 million),
subsidiary SNCB Logistics sa to a strategic partner in order
a fine for late delivery imposed on a supplier of rolling stock
to strength the subsidiary’s capital structure. Given the stage
(€1.7 million) and SNCB’s share in the capital gain realised by
reached in this process, it is not currently possible to estimate
SNCB Logistics sa on the sale of land (€3.1 million).
the possible consequences of such a partnership for SNCB.
76
The income statement (million €)
2013
2012
Difference
%
Sales and services
2,289.8
2,296.6
-6.8
-0.3%
Turnover
2,122.6
2,081.4
41.2
2.0%
SNCB Mobility
611.3
612.5
-1.2
-0.2%
SNCB Europe
259.3
240.3
19.0
7.9%
SNCB Freight Services
29.2
45.0
-15.7
-35.0%
Other 200.4
198.5
1.9
1.0%
1,022.3
985.1
37.2
3.8%
Variation in work-in-progress
10.0
12.2
-2.2
-17.7%
Capitalised production
94.1
107.2
-13.1
-12.2%
Other operating income
63.1
95.9
-32.7
-34.1%
-2,382.9
-2,341.8
-41.1
1.8%
-75.7
-92.2
16.5
-17.9%
-1,149.6
-1,122.0
-27.6
2.5%
-627.4
-622.4
-5.0
0.8%
Dotations
Cost of sales and services
Supplies and goods
Miscellaneous goods and services
Infrastructure charge
Traction power
Other miscellaneous goods and services
Staff costs
Other operating expenditure
EBITDA
Depreciation
Value reductions
Provisions
-97.8
-95.0
-2.8
3.0%
-424.3
-404.6
-19.7
4.9%
-1,153.9
-1,125.0
-28.9
2.6%
-3.7
-2.5
-1.2
46.2%
-93.1
-45.1
-48.0
N.S.
-266.9
-240.5
-26.5
11.0%
-28.8
-39.3
10.5
-26.6%
-1.4
34.8
-36.2
N.S.
-390.3
-290.0
-100.3
-34.6%
Investment income
251.5
224.0
27.4
12.2%
Investment expenditure
-36.5
-33.4
-3.1
9.3%
-175.3
-99.4
-75.9
-76.4%
31.5
13.4
18.1
N.S.
Exceptional expenditure
-186.9
-66.3
-120.6
N.S.
Result
-330.7
-152.3
-178.4
N.S.
EBIT
EBT
Exceptional income
financial report of SNCB
77
Operating income
10%
Enterprise costs
12%
other
4%
Europe
energy (traction)
3%
supplies
17%
%
ff costs
29%
Mobility
48%
49%
other operating
costs
staff costs
dotations
2%
Freight Services
26%
infrastructure charge
0%
other
Operating costs
Investments
Operating costs were up by €41.1 million compared with
The investment volume was very significant, and considerably
2012.
higher than inInvestments
2012. This was mainly due to efforts to catch up
on the delivery of rolling stock.
2% 1%
The increase in costs compared with 2012 was due to higher
customer facilities
SNCB invested €604.0 million in 2013, compared with €423.0
and services (€+19.7 million), lower supply costs (€-16.5
million in 2012. IT
9%
million) and a higher infrastructure and traction power charge
%
enger
pment
other
personnel costs (€+28.9 million), higher miscellaneous goods
7%
(€+7.9 million). Other operating costs were €1.2 million higher
workshops
The bulk
of this amount was spent on rolling stock for
than the previous year.
passenger traffic (€487.5 million). In addition, €13.2 million
was invested in customer facilities, and major81%
investments
passenger
equipment
The increase in personnel costs was primarily due to an
were again made in the ongoing computerisation (€5.1 million)
increase in the number of accumulated days of leave, credit
of the company and in the workshops (€44.4 million).
days and Saturday and Sunday compensation days.
Cash flow from operations
The lower supply costs are primarily due to a decrease in the
EBITDA decreased by €48.0 million from €-45.1 million in the
production of tangible fixed assets.
previous year to €-93.1 million in 2013.
Non-recurring positive effects that impacted EBITDA in 2013
amounted to €6.1 million, compared with €25.7 million in
2012.
78
4%
10%
supplies
energy (traction)
17%
other
12%
Europe
49%
other operating
staff costs
In addition,
costsnon-recurring negative effects were recorded in
2013 in relation to the costs associated with accumulated
Saturday and Sunday compensation days for personnel (€-20.8
26%
million) and
the retroactive revision of the invoicing principles
infrastructure charge
Disregarding these non-recurring effects, SNCB’s29%
EBITDA
decreased slightly,
from €-70.8 million in 2012 Mobility
to €-71.6
48%
million in 2013.
dotations
2%
in relation to the services delivered
to SNCB Logistics S.A.
0%
Result for the financial year
(€-6.8 million).
SNCB’s net result was €-330.7 million, representing a decrease
other
Freight Services
of €178.4 million compared with the previous year.
EBITDA (millions €)
SNCB’s
50 net result in 2013 was severely impacted by
extraordinary effects that had no influence on the operating
0
cash flow. Impairments of €16.4 million were recorded in
-50
connection with the cancellation of the Fyra train service,
-100
while the valuation of the investment in and loans to SNCB
-150
Logistics
sa led to an additional impairment of €109.4 million
Investments
2% 1%
customer facilities
other
-200 recorded. In addition, €29.0 million of extraordinary
being
9%
IT
depreciation
and impairments on tangible fixed assets were
-250
recorded,
based on their economic value to the company.
-300
7%
workshops
2005 2006 2007 2008 2009 2010 2011 2012 2013
-63.9
81%
3.5
7.3
-108.0 -287.8 -126.4 -107.7 -45.1 -93.1
passenger
equipment
Result (millions €)
EBITDA (millions €)
50
0
0
-100
-50
-200
-100
-150
-300
-200
-400
-250
-500
-300
-600
2005 2006 2007 2008 2009 2010 2011 2012 2013
-63.9
3.5
7.3
-108.0 -287.8 -126.4 -107.7 -45.1 -93.1
2005 2006 2007 2008 2009 2010 2011 2012 2013
-79.5 -67.7 -17.8 -132.7 -473.6 -215.8 -514.6 -152.3 -330.7
financial report of SNCB
79
No provisions were made to cover any surplus costs arising
Financial assets decreased by €107.5 million. There was a
from the reorganisation, and no other accounting implications
net additional impairment on the investment in and long-
of this reorganisation are expected.
term receivable from SNCB Logistics sa amounting to €109.4
million, while a reversal of the initial impairment on E.I.L. was
Balance sheet
recorded in the amount of €1.8 million.
The balance sheet total was €6,168.5 million as at 31.12.2013,
down by €138.1 million from the total as at 31.12.2012.
With regard to current assets, the decrease of €303.0 million is
mainly due to a decrease in receivables falling due within one
Fixed assets amounted to €4,893.3 million and current assets
year (€-251.8 million) and receivables falling due in more than
amounted to €1,329.1 million. The company’s equity stands
one year (€-26.2 million). In addition, there was a decrease in
at €3,208.9 million, provisions at €113.9 million, and debt at
stock (€-11.1 million) and prepayments and accrued income
€2,845.7 million.
(€-15.2 million), while liquid assets increased slightly (€+1.3
million).
With regard to intangible fixed assets, the increase of €21.9
million consists of investments in intangible fixed assets of
The decrease in receivables falling due in more than one year
€53.1 million and depreciation for 2013 of €31.2 million.
is mainly due to the transfers to receivables falling due within
one year of the portion of these receivables falling due in
Since SNCB SAP will form the basis for the IT configuration
2014. Additionally, the receivable from SNCF relating to the
after the reorganisation, there is no indication that this will
guaranteed dividend from E.I.L. was cancelled, as the latter
make value adjustments for software developments necessary.
company has since its inception always paid a higher dividend
than that guaranteed by SNCF.
Tangible fixed assets increased by €250.6 million. This is the
result of investments in tangible fixed assets amounting to
The decrease in receivables falling due within one year is
€559.6 million, while depreciation for the year amounted to
mainly due to the decrease in the debt receivable from SNCB
€264.6 million, and tangible assets disposals or retirements
Holding in connection with the financing of the RER equipment
came to €44.3 million.
(€-291.6 million) and the relaunch plan (€-7, 1 million). The
receivable from the Government increased by €58.2 million,
The 25 T77 locomotives that were taken over in 2012 from
mainly due to the increase in the amount paid to the Railway
SNCB Logistics and were intended for sale are still recorded
Infrastructure Fund relating to unused capital grants (€+50.1
at a value of €800,000 per unit under the heading ‘Other
million).
tangible fixed assets’. Although none of these locomotives has
80
been sold so far, no additional impairments were recorded as
The decrease in stock (€-11.1 million) is the result of an
at the end of 2013. This decision was prompted by the partial
actual decrease in stock (€-7.6 million), an increase in orders
future reuse of these locomotives within the company and the
in progress (€+9.7 million) and an increase in impairments
lack of any urgency with regard to their sale.
recorded under this heading (€+13.2 million).
Balance sheet (million €)
Fixed assets
Start-up costs
Intangible fixed assets
Tangible fixed assets
Trade investments held as fixed assets
31/12/2013
31/12/2012
Difference
4,839.3
4,674.4
165.0
-
-
-
253.6
231.7
21.9
4,455.6
4,205.0
250.6
130.2
237.7
-107.5
1,329.1
1,632.2
-303.0
Receivables of more than one year
168.1
194.3
-26.2
Stocks
193.1
204.3
-11.1
Receivables of one year maximum
792.1
1,043.9
-251.8
Current assets
-
-
-
10.5
9.2
1.3
165.4
180.6
-15.2
TOTAL ASSETS
6,168.5
6,306.5
-138.1
Equity capital
3,208.9
3,409.6
-200.7
Capital
Cash investments
Liquid assets
Accruals and prepayments
1,262.8
1,251.3
11.5
Share premium
200.6
200.6
0.0
Capital gains on revaluation
109.1
118.8
-9.7
-
-
0.0
-1,984.8
-1,654.1
-330.7
3,621.2
3,493.1
128.1
113.9
112.5
1.4
2,845.7
2,784.5
61.3
Debts of more than one year
659.5
691.8
-32.3
Debts of one year maximum
1,214.4
1,197.1
17.3
971.8
895.6
76.2
6,168.5
6,306.5
-138.1
Reserves
Retained earnings
Capital subsidy
Provisions and deferred taxes
Debts
Accruals and prepayments
TOTAL LIABILITIES
financial report of SNCB
81
Results per sector
The public service passenger transport sector had negative
The freight sector had negative EBITDA of €47.7 million and
EBITDA of €78.8 million and recorded a loss amounting to
recorded a loss of €176.1 million. Its EBITDA was €17.5 million
€158.0 million. Its EBITDA was €38.6 million lower than in
lower than in 2012 and its result showed a decline of €118.7
2012 and its result showed a decline of €52.6 million.
million.
The result of the freight sector was adversely affected mainly
The public service passenger transport sector was adversely
by additional impairments of €109.4 million on freight-
affected mainly by the inclusion of the costs associated
related assets and €18.0 million of new provisions for services
with accumulated leave and compensatory rest days in the
relating to control and station services.
Results per sector (million €)
Total
Freight
Public service
passenger transport
Other passenger
transport
Operating revenue
2,328.5
88.7
1,880.3
359.5
Turnover
2,161.3
77.9
1,731.0
352.5
Variation in work-in-progress
10.0
-0.2
7.4
2.8
Capitalised production
94.1
0.4
93.1
0.6
Other operating income
63.1
10.7
48.9
3.6
-2,421.6
-136.4
-1,959.1
-326.1
-75.7
-5.5
-65.0
-5.2
-2,342.3
-130.1
-1,891.4
-320.7
-3.7
-0.8
-2.7
-0.1
-93.1
-47.7
-78.8
33.4
-266.9
-3.1
-251.1
-12.7
-28.8
-1.4
-28.5
1.1
-1.4
-7.6
5.1
1.1
-390.3
-59.8
-353.3
22.8
Investment income
261.6
1.9
258.5
1.1
Investment expenditure
-46.6
-9.9
-30.7
-6.0
-175.3
-67.8
-125.5
18.0
31.5
26.9
2.9
1.8
Exceptional expenditure
-186.9
-135.2
-35.3
-16.4
Result
-330.7
-176.1
-158.0
3.4
Cost of sales and services
Supplies and goods
Miscellaneous goods and services
Other costs
EBITDA
Depreciation
Value reductions
Provisions
EBIT
EBT
Exceptional income
82
results for 2013. Additionally, the direct costs associated
Balance sheet per sector
with transport activities rose, while the corresponding direct
The freight sector’s equity is negative due to the loss carried
income fell slightly.
forward of €1,186.2 million. €261.0 million of its debt total
consists of an internal debt to the public service passenger
The other passenger transport sector had positive EBITDA of
transport sector.
€33.4 million and recorded a profit of €3.4 million. Its EBITDA
was €8.1 million higher than in 2012, while its result showed a
The positive equity in the public service passenger transport
decline of €7.2 million.
sector derives from the allocation of €3,621.2 million of
capital grants by the Government to finance investment in
The result of this sector was adversely affected mainly by
this sector. The sector has a loss carried forward of €772.6
impairments of €16.4 million recorded in connection with the
million. €324.1 million of its current assets consist of internal
cessation of the Fyra rail service.
receivables from the freight and other passenger transport
sectors.
Between the sectors, a financial charge is calculated for the
mutual use of the respective cash flows. For 2013, the public
The positive equity of the other passenger transport sector
service passenger transport sector charged the freight and
derives from the initial allocation of capital and share
other passenger transport sectors €8.1 million and €2.0 million
premiums. The sector has a loss carried forward of €25.9
respectively.
million. €63.1 million of its debt total consists of an internal
debt to the public service passenger transport sector.
Balance sheet by sector (million €)
Total
Freight
Public service
passenger transport
Other passenger
transport
Fixed assets
4,839.3
148.5
4,443.3
247.5
Current assets
1,933.4
91.4
1,432.2
409.8
Total assets
6,772.8
239.9
5,875.5
657.4
Shareholders' equity
3,208.9
-421.7
3,185.9
444.7
113.9
40.2
70.7
2.9
Debts
3,450.0
621.4
2,618.8
209.8
Total liabilities
6,772.8
239.9
5,875.5
657.4
Provisions
financial report of SNCB
83
Information relating to the main
risks and uncertainties
The fundamental principles of this reform consist of redefining
the structures and the roles of the three public limited
The risks associated with a number of ongoing legal disputes
companies under public law within the meaning of the law
were duly assessed and, if necessary, provided for in the
of 21 March 1991 on the reform of certain economic public
accounts.
companies, including SNCB-Holding, Infrabel and SNCB.
A DCF valuation was used for the stake in SNCB Logistics, in
The goal was to convert the SNCB Group, as structured
which uncertain factors are associated with the predicted data.
since 2005, into two autonomous public-sector enterprises
The Board of Directors believes that these predicted data were
in the form of public limited companies under public law
estimated with due caution.
(an infrastructure manager and a rail operator), which will
participate together with the State in HR Rail, a public law
The Board of Directors wishes to point out that the preparation
subsidiary, which will act as the sole employer of the staff.
of final balancing charges relating to mutual services between
rail networks takes a very long time to complete, entailing a
The transition to the new structure consisted of three
risk of adjustments in a subsequent period, despite the great
operations that were carried out simultaneously, and the
care and prudence with which the estimates recorded in the
consequences of which took effect from 1 January 2014:
current financial year have been made.
•
the merger of SNCB-Holding and the SNCB via a merger method by which SNCB-Holding absorbs the SNCB.
•
the transfer of certain activities and assets of SNCB-
Holding to Infrabel through a partial demerger, accompanied by a decoupling of the current shareholding of SNCB-Holding in Infrabel.
•
the establishment of HR Rail as a public limited company under public law which will be the employer of the staff and into which the assets and liabilities from the current human resources operational activity of SNCB-
carrier.
Holding have been brought.
Significant events after the balance sheet
date
these operations, such as capital increases and transfers of
Information concerning the company’s
industrial, commercial and human resources
policy
In 2011, the management and the Board of Directors of SNCB
drew up a financial recovery plan for the period 2012-2015.
The purpose of this plan was to stop the erosion of SNCB’s
equity and to help stabilise the SNCB Group’s debt, without
prejudice to the social role that SNCB performs as a public
The law of 30 August 2013 regarding the reform of the Belgian
railways broadly outlined the principles of a major structural
reform of Belgian railway operations.
84
A number of accompanying measures have been added to
certain assets and liabilities.
Prospects
capital. SNCB’s articles of association make no provision for an
The restructuring of the SNCB Group was carried out with
authorised capital.
effect from 1 January 2014.
SNCB’s capital was increased by €11.5 million on 12.12.2013
SNCB was absorbed through a merger into SNCB Holding
through cash subscription by the sole shareholder, SNCB-
sa. The merged entity has prepared a budget for 2014 that
Holding.
includes positive EBITDA of €24.7 million.
Preparations have been started to draw up a new management
Acquisition of treasury shares
contract between the SNCB merger company and the
The SNCB does not hold any treasury shares.
government.
Additional work by the auditor
In the meantime, the 2008-2012 management contract
At the general meeting for the year 2010 (held on
has been extended, and provisional rules have been set for
30/05/2011), the firms Mazars Réviseurs d’entreprises SCRL,
the transitional period. As well as SNCB’s obligations, the
represented by Philippe Gossart, and Grant Thornton Réviseurs
management contract will also define the subsidies that SNCB
d’entreprises SCRL, represented by Ria Verheyen, were
will receive for its public utility services with respect to both
appointed as members of the Board of Auditors; both firms are
investments and operating funds.
members of the Belgian Institute of Company Auditors.
In accordance with the directives of its main shareholder
In the course of 2013, additional assignments were carried
the SNCB Group has taken mesures to reduce the number
out by the auditors Mazars and Grant Thornton in the context
of subsidiaries. In 2013 concrete action was undertaken to
of the restructuring of the SNCB Group. Specifically, an audit
reduce the perimeter of consolidation of the SNCB Group by
was performed of SNCB’s interim financial statements as at
27 companies. In 2014 this approach will be continued and
31.08.2013.
concerns at least 5 more subsidiaries.
Mazars also performed a special assignment in relation to the
valuation method for the Thalys business.
Research and development activity
There were no significant activities in the field of research and
Branch offices
development in the year 2013.
SNCB does not have any branch offices.
Capital increases and issue of convertible
bonds and warrants
Conflict of interests
The Company Code stipulates that the annual report must
of Article 523 § of the Company Code at the meeting of the
provide information about capital increases or the issue of
Board of Directors of 3 May 2013, at which the ‘Internal rules
convertible bonds or warrants that have been decided on in
on the coverage by SNCB itself of some of the consequences
the course of the year within the framework of the authorised
of executives’ liability’ were approved.
In 2013 there was a conflict of interests within the meaning
financial report of SNCB
85
Excerpt from the minutes of the meeting of the Board of
of insurance for the directors and other executives of the
Directors of 3 May 2013:
company when their personal liability is potentially engaged
towards third parties by actions committed in the course of
‘The Board of Directors noted the statements by the directors
their duties.
regarding the existence on their part of a conflict of interest
of a proprietary nature in connection with the decision on
The Board of Directors therefore approved the ‘RULES ON THE
the adoption of the internal rules on executives’ liability. The
COVERAGE BY SNCB ITSELF OF SOME OF THE CONSEQUENCES
proprietary nature of this conflict was noted.
OF EXECUTIVES’. This decision will be the subject of a specific
point in the management report of the Board of Directors to
The purpose of the draft internal rules on executives’ liability,
the ordinary general meeting. The Board of Directors decided
subject to certain reservations, is to cover the financial
to inform the general meeting about these rules when it next
consequences of the liability of the persons enumerated in
convenes.’
point 1 of the rules, including the members of the Board of
Directors, in their capacity as executives of SNCB.
Application of going concern rules
The company has a carried forward loss as at 31/12/2013. The
This coverage takes the form of legal support if there is a risk
company’s accounting policies have been applied on a going
that the executive’s civil or personal criminal liability may
concern basis. In accordance with Art 96.6° of the Company
be engaged in the course of his duties, and of the financial
Code, the Board of Directors believes this to be justified, as
coverage of certain consequences of the executive’s personal
the company’s continuation can be reasonably assumed for a
liability towards third parties on the grounds of actions
period of at least 12 months.
committed in the course of his duties.
The Board of Directors bases its opinion on the company’s
The significance of the financial consequences for SNCB of the
status as a going concern primarily on the following
adoption of these rules is impossible to estimate, because of
considerations:
the hypothetical nature of the circumstances in which these
• as of 1 January 2014, the company was absorbed through rules might come into play and the nature and severity of the
adverse consequences that these circumstances might entail.
The Board of Directors is not aware of any situations since the
establishment of SNCB that would have provided grounds for
claims or for procedures likely to bring the proposed rules into
play.
The Board of Directors believes that the proposed rules
are conducive to the good management of the company by
safeguarding its management bodies and supplementing the
existing legal protection in an appropriate manner by means
86
merger into its parent company SNCB Holding sa;
• SNCB Holding sa recorded a profit after tax of €150.8 million
for 2013;
• The budget of the merged company in which SNCB was included as of 1 January 2014 provides for a positive recurrent EBITDA of €24.7 million;
• Part of the debt incumbent on the SNCB Group was, in the
context of the restructuring of the group, assigned to the infrastructure manager, which has a positive effect on the future results of the merged entity.
financial report of SNCB
87
Corporate Governance
• Mr Kris Lauwers;
• Mr Renaud Lorand;
Board of Directors
• Ms Saskia Schatteman;
• Mr Dirk Sterckx.
Composition
The composition of the Board of Directors and the
By the Royal Decree of 4 November 2013, Mr Cornu was
arrangements for the appointment of the directors and
appointed as CEO for a period of six years from 13 November
chairman are determined in Articles 16 and 223 of the Law
2013.
of 21 March 1991 on the reform of certain economic public
companies as well as in Articles 17 to 21 of the articles of
Main offices held by the directors outside the SNCB:
association.
• Ms Bovy: Chief of staff of the Deputy Prime Minister and Minister for Social Affairs and Public Health;
Until 21 October 2013, the Board of Directors was composed
as follows:
• Ms Laurence Bovy, chair;
• Mr Descheemaecker: Director of The Brussels Airport Company;
• Mr Fontinoy: Expert adviser at the Office of the Deputy Prime
• Mr Marc Descheemaecker, CEO;
Minister and Minister for Foreign Affairs, Chairman of SNCB-
• Mr Jean-Claude Fontinoy, director;
Holding and of Euro Liège TGV SA, company director;
• Mr Kris Lauwers, director;
• Mr Lauwers: Deputy Director-General of STIB;
• Mr Renaud Lorand, director;
• Mr Lorand: Chief of staff of the Vice President of the Walloon • Mr Philippe Matthis, director;
Government and Minister for the Economy, SMEs, Foreign • Ms Lieve Schuermans, director;
Trade and New Technologies;
• Ms Angeline Van Den Rijse, director.
• Mr Matthis: Deputy Director-General of the Port of Brussels;
• Ms Schuermans: Inspector of Finance of the Flemish Region, By decision of the general meeting of 27 September 2013, the
Director of SNCB-Holding;
number of members of the Board of Directors was increased to
• Ms Van Den Rijse: Secretary of ABVV – General Central 10, including the CEO.
Office, Antwerp-Waasland;
• Ms Bruyninckx: Managing director of the Antwerp Port The general meeting of 22 October 2013 decided to appoint
the following as directors for a period of six years from that
date:
• Mr Eddy Louis Bruyninckx;
• Ms Valentine Delwart;
• Mr Jean-Claude Fontinoy;
88
Authority;
• Ms Delwart: General secretary of the MR;
• Mr Joris: Company director;
• Ms Leburton: Director-general of the Société Wallonne des Aéroports;
• Ms Schatteman: Director of Marketing, Microsoft Belgium-
• Mr Luc Joris;
Luxembourg;
• Ms Valérie Leburton;
• Mr Sterckx: Municipal councillor.
Frequency of meetings – Participation of members
Committees established by the Board of Directors
In principle the Board of Directors meets on the first Friday of
every month.
Audit Committee
In 2013 the Board of Directors met 17 times:
Composition
• 13 times in its old composition. Ms Van Den Rijse did not The establishment and composition of the Audit Committee
attend one meeting and Ms Schuermans did not attend are governed by Article 227 of the Law of 21 March 1991 and
two meetings; the other directors attended all meetings. The Article 36 of the articles of association.
average attendance rate was 96.9%;
• 4 times in its new composition. Mr Bruyninckx did not The Audit Committee was established by the decision of the
attend three meetings, and Ms Delwart, Ms Schatteman and Board of Directors of 4 November 2004. The Board meeting of
Mr Sterckx did not attend one meeting. The average 5 June 2009 set the number of members at five and changed
attendance rate was 83.3%.
the composition as follows:
Powers and decision-making
• Mr Kris Lauwers, chairman of the Audit Committee;
In general, the powers of the Board of Directors are
• Ms Laurence Bovy ;
determined in Article 17 of the Law of 21 March 1991; some
• Ms Angeline Van Den Rijse ;
powers are reserved exclusively by law for the Board of
• Mr Jean-Claude Fontinoy ;
Directors.
• Mr Philippe Matthis.
Quorum, majorities and rules on voting are set out in Articles
26 to 28 of the articles of association.
The meeting of the Board of Directors of 31 October 2013,
using a written procedure, changed the composition of the
Some important matters addressed during the year:
Audit Committee as follows:
• the safety of rail transport;
• Mr Renaud Lorand, chairman of the Audit Committee;
• punctuality;
• Mr Eddy Bruyninckx ;
• the transport plan (2013 and long term);
• Ms Valentine Delwart ;
• the 2013-2025 multi-year investment plan;
• Mr Kris Lauwers.
• the development of freight activities and monitoring of the subsidiary SNCB Logistics sa;
The CEO, the officer responsible for the finances of SNCB and
• the establishment of a railway company for the Thalys the officer responsible for internal audit at SNCB are invited to
business;
the meetings in an advisory capacity.
• project Fyra and the introduction of an alternative service;
• the restructuring of the SNCB Group.
corporate governance SNCB
89
Frequency of meetings – Participation of members
• Mr Luc Joris ;
In 2013 the Committee met 7 times:
• Mr Dirk Sterckx.
• 4 times in its old composition. Ms Bovy did not attend 2 meetings and Ms Van Den Rijse and Messrs Fontinoy and Frequency of meetings – Participation of members
Matthis did not attend 1 meeting. The average attendance The Committee met twice in 2013. All the members were
rate was 75%;
present. The average attendance rate was 100%.
• 3 times in its new composition. Mr Bruyninckx did not
attend 3 meetings and Ms Delwart did not attend 1 meeting. Compétences
The average attendance rate was 66.7%.
The powers of the Appointments and Remuneration Committee
are governed by Articles 17, 226 and 228 of the Law of 21
Powers
March 1991 and by Article 37 of the articles of association.
The powers of the Audit Committee are governed by Article
227 of the Law of 21 March 1991, Article 36 of the articles of
Executive Committee
association, and the Charter of the Audit Committee, approved
by the Committee on 3 July 2009.
Composition
The composition of the Executive Committee is governed by
Appointments and Remuneration Committee
Articles 16 and 224 of the Law of 21 March 1991 and Articles
32 and 33 of the articles of association.
Composition
The term of office of the executive officers is set at 6
Its composition is determined in Article 228 of the Law of 21
years (Government Decree 8 November 2004) from the
March 1991, Article 37 of the articles of association.
commencement of their duties.
By decision of the Board at its meetings of 4 November 2004
The number of executive officers is set at 3 (Government
and 5 September 2008, the Appointments and Remuneration
Decree 24 April 2007). The Executive Committee is composed
Committee is composed as follows:
as follows:
• Ms Laurence Bovy, chairman of the Committee;
• M. Marc Descheemaecker, who was replaced by Mr Cornu • Mr Marc Descheemaecker, CEO;
with effect from 13 November 2013;
• Mr Renaud Lorand;
• M. Richard Gayetot, executive officer for Technics;
• Ms Lieve Schuermans.
• M. Michel Jadot, executive officer for Europe;
• M. Sabin S’heeren, executive officer for Mobility.
The meeting of the Board of Directors of 31 October 2013,
90
using a written procedure, changed the composition of the
Mr Gayetot’s term of office expired on 3 December 2010
Appointments and Remuneration Committee as follows:
and those of Messrs Jadot and S’heeren on 1 June 2013. At
• Mr Jean Claude Fontinoy, chairman of the Committee;
the Board meetings of 3 December 2010 and 3 May 2013, it
• Mr Marc Descheemaecker, who was replaced by Mr Cornu was decided to extend these terms until the following three
with effect from 13 November 2013;
conditions are met:
• the CEO is appointed by Royal Decree;
Committee established by the Executive Committee
• the members of the Board of Directors are appointed by the general meeting, in accordance with the decision taken by Management Committee
the general meeting of 22 October 2010;
• the Board of Directors has, on the proposal of the CEO, Composition
commented on the composition of the Executive Committee.
This committee was established by the decision of the
Executive Committee of 4 January 2005.
The Company is validly represented by the CEO and the
executive officer appointed for the purpose by the Board of
This Committee consists of the members of the Executive
Directors, acting jointly. Mr Gayetot was appointed by the
Committee and the following people (composition approved
Board of Directors on 8 November 2004 as the executive
by the Board of Directors of 12 November 2009):
officer who holds the second power of signature with effect
• Mr A. DE BRAUWER, General Manager of Finances;
from 3 December 2004.
It is chaired by the CEO.
The heads of the three services overseen by the CEO (Strategic
The members of the Management Committee, as well as the
and Legal Affairs, Central Support (HR), Public & Corporate
heads of the three services overseen by the CEO (Strategic
Affairs), attend the meetings (by decision of the Board of
and Legal Affairs, Central Support (HR) and Public & Corporate
Directors of 16 April 2007).
Affairs), are invited to the meetings.
Frequency of meetings
Frequency of meetings
In principle it meets every week before the meeting of the
In principle, the meetings of the Executive Committee are held
Executive Committee.
weekly, usually on a Tuesday. The Executive Committee met 43
The Management Committee met 39 times in 2013.
times in 2013.
Powers
Powers
The Management Committee is responsible for preparing the
The Committee’s powers are governed by Article 224 of the
decisions of the Executive Committee, without prejudice to
Law of 21 March 1991 and by Articles 34 and 35 of the articles
the powers of the latter.
of association. In addition, the Committee has the powers
delegated to it by the Board and the powers that are reserved
by law, such as the negotiation of the management contract
(Art. 4 §2 Law of 21 March 1991).
corporate governance SNCB
91
Orientation Committee
Board of Auditors (Art. 25 Law of 21 March 1991)
The auditing of the financial situation and annual accounts is
Composition
entrusted to a Board of Auditors consisting of four members
In accordance with Article 231 of the Law of 21 March 1991,
who bear the title of auditor. Two of these are appointed by the
the Orientation Committee gives advice on all measures that
Court of Audit and the other two by the General Meeting from
may affect cooperation with the regional transport companies.
members of the Belgian Institute of Company Auditors.
This Committee is composed of:
The appointment procedure is set out in Article 25 of the Law
• 6 representatives from the regional transport companies: of 21 March 1991.
Messrs Vandenbroucke and Urbain for the SRWT, Messrs De
Meeus and Lauwers for STIB and Messrs Kesteloot and The members of the board are:
Jacobs for De Lijn;
• Mr Philippe Gossart, representative of the firm Mazars • 6 representatives from SNCB: Messrs Descheemaecker, Reviseurs d’Entreprises SCRL, chairman of the Board
Jadot, Gayetot, S’heeren, Leclercq and Ms Rombauts.
of Auditors, auditor*,
The Orientation Committee met 3 times in 2013.
• Mme Ria Verheyen, representative of the firm PKF Réviseurs d’entreprises SCRL, auditor*;
Supervision
• M. Michel De Fays, advisor at the Court of Audit;
• M. Rudy Moens, advisor at the Court of Audit.
Government Commissioner (art. 230 Law of 21 March 1991)
The SNCB is subject to the supervision of the Minister
* These terms of office expire at the general meeting which
responsible for public companies.
will be held in 2014.
This supervision is exercised via a Government Commissioner.
Remuneration of members of the management bodies
The appointment procedure for and role of the Government
Commissioner are set out in Articles 227 and 230 of the
Remuneration of the directors
Law of 21 March 1991 and in Article 40 of the articles of
Pursuant to Article 226 §1 of the Law of 21 March 1991 on
association.
the reform of certain economic public companies, the general
meeting determines the remuneration of the members of the
The Government Commissioner for SNCB is Mr Xavier
Board of Directors, on the proposal of the Appointments and
BODSON. By Royal Decree of 4 November 2013, Mr BODSON
Remuneration Committee.
was relieved of his duties and Mr Olivier Vanderijst was
appointed Government Commissioner as of that date.
On the basis of the principles laid down at the General
Meeting of 31 December 2004, the directors of the SNCB, with
the exception of the CEO, receive remuneration consisting
of a fixed component (basic salary), a variable component
(attendance fee for each meeting) and an expense allowance.
92
In the case of a dual mandate within the SNCB Group, the
The difference between the directors has to do with the fact
fixed annual remuneration cannot be received twice.
that various terms of office expired on 22 October 2013, with
The General Meeting of 16 May 2006 set the following certain
the fact that new directors were appointed on 22 November
remuneration amounts, on the proposal of the Appointments
2013, with the number of meetings, with the presence of
and Remuneration Committee of 27 March 2006:
the directors and with the fact that, for directors who also
serve in SNCB-Holding, part of the fixed component of the
remuneration is borne by the latter.
• for yhe Chairman:
• a fixed component, equal to a gross annual amount of €27,200;
Remuneration of the CEO and executive officers
• an attendance token of €500 gross per Board meeting Pursuant to Article 226 §2 of the Law of 21 March 1991
on the reform of certain economic public companies, the
and €400 gross per Committee meeting attended;
Board of Directors, with the exception of the CEO, negotiates
• a net annual expense allowance of €2,400.
with the CEO and the other members of the Executive
Committee a special agreement defining the rights, including
• for the directors:
• a fixed component, equal to a gross annual amount of €13,600;
• an attendance token of €500 gross per Board meeting and €400 gross per Committee meeting attended;
• a net annual expense allowance of €1,200.
the remuneration and the obligations of the latter on the
one hand, and of SNCB on the other hand. In accordance
with Article 228, § 2, paragraph 2, the Board of Directors
receives proposals from the Appointments and Remuneration
Committee on the remuneration and the benefits to be
allocated.
The gross amounts assigned to the directors for 2013 are:
At the meeting of the Board of Directors on 23 December
• Ms Bovy, Chairman: €29,135.52
• Mr Fontinoy, director/Chairman: €10,800
• Mr Lauwers, director: €23,266.64
consists of a fixed component (basic salary) and a variable
• Mr Lorand, director: €22,066.64
component (payment for the office). The holiday allowance,
• Mr Matthis, director: €18,167.71
annual bonus and any other allocations and remuneration are
• Ms Schuermans, director: €10,483.90
determined in accordance with the applicable regulations.
• Ms Van den Rijse, director: €17,667.71
The CEO and the contractual executive officers benefit from a
• Mr Bruyninckx, director:
€ 1,633.34
group insurance policy that is intended to compensate for the
• Ms Delwart, director: € 3,616.14
more advantageous pension regime enjoyed by the statutory
• Mr Joris, director: € 3,533.34
directors.
• Ms Leburton, director:
€ 3 316.14
• Ms Schatteman, director: € 2,816.14
• Mr Sterckx, director: € 3,216.14
2004, the remuneration system for the members of the
Executive Committee was determined. This remuneration
corporate governance SNCB
93
CEO
• other remuneration components:
The fixed component and the office-related benefits are thus
• benefit in kind (car): €6,887.64
determined in a special agreement, negotiated with the Board
• group insurance, work accident insurance and of Directors.
The variable component of the remuneration is determined
At the Board meeting of April 2008, an increase in the
on the basis of a coefficient that can vary between 0 and 3.
remuneration of the CEO was decided on, but this is not
This coefficient is determined on the basis of the following 10
applied, although it is a contractually acquired right.
criteria/targets, of which the first six are common to the Group
The contract of Mr Cornu as CEO of SNCB covered the period
and the last four are specific to SNCB:
from 13 November 2013 to 31 December 2013. Mr Cornu
• stabilisation of the Group’s net consolidated debt
performed this office without remuneration.
hospitalisation insurance: €47,736.30
• growth of domestic passenger traffic
• general customer satisfaction
Executive officers
• staff engagement
The fixed component and the office-related benefits are thus
• accidents at work
determined in a special agreement, negotiated with the Board
• punctuality rate of passenger trains
of Directors.
• operational cash flow (EBITDA)
• punctuality of passenger trains: delays for which SNCB is responsible
• implementation of the investment budget
• criteria and specific targets, set by the Chairman of the Board of Directors and also relating to quality aspects.
Each year, the Appointments and Remuneration Committee,
on the proposal of the Chairman of the Board of Directors,
evaluates the various criteria that have been achieved in
the past year in light of the specified targets . The variable
component represents approximately 25% of the total gross
annual remuneration of the CEO.
In 2013, the total gross amount assigned to Mr
Descheemaecker, CEO, was:
• fixed component 2013: €397,788.63
• variable component 2012: €111,290.99
94
The variable component of the remuneration is determined
on the basis of a coefficient that can vary between 0 and 3.
This coefficient is determined on the basis of various elements
such as punctuality and customer satisfaction (in parallel with
the evaluation system used for the CEO), the feedback process
that is applied to all senior executives at SNCB, a performance
analysis of each individual and the targets set for that year.
Each year, the Appointments and Remuneration Committee,
on the proposal of the CEO, evaluates the various criteria that
have been achieved in the past year. The variable component
represents approximately 25% of the total gross annual
remuneration of the executive officers.
In 2013, the total gross amount assigned to the other members
of the Executive Committee was:
• fixed component 2013: €826,461.87
• variable component 2012: €213,796.64
• other remuneration components:
• benefit in kind (car, telephone): €14,696.13
• group insurance, work accident insurance and hospitalisation insurance: €32,093.48
The Appointments and Remuneration Committee set the
following general objectives for 2012:
• achievement of the budget;
• achievement of the TBL 1+/ETCS planning – Improving the safety culture;
• achievement of the punctuality rate set out in the management contract;
• improving punctuality in order to increase the number of trains running on time;
• further enhancing cooperation between the infrastructure manager and the railway company;
• further improving quality and perceived quality (Quality Barometer).
These general objectives will be complemented by a series of
specific objectives for each executive officer.
Severance pay for the CEO and executive officers
The contract of the CEO provides for severance pay equivalent
to 24 months’ full remuneration and allowances.
The contractual executive officers’ contract provides for
severance pay equivalent to 18 months’ full remuneration and
allowances.
The statutory executive officers retain the pay conditions
associated with the function of executive officer until the
normal expiry of their term of office; they are subsequently
returned to the level of manager and remunerated according
to the pay conditions associated with that level.
corporate governance SNCB
95
96
Inspiring financial management
Annual report of SNCB-Holding
drawn up in accordance with Articles 95 and 96 of the Company Code
97
In accordance with Articles 95 and 96 of the Company Code,
the Board of Directors has prepared an annual report providing
information about the following points.
A. Annual financial report
The present annual report is attached to the accounts filed
at the National Bank of Belgium, which were prepared in
Changes in activities and results
accordance with Belgian standards, and the figures quoted are
therefore determined according to these accounting principles.
Accounting standards
Since the 2011 financial year, the accounts have been kept
according to the IFRS accounting standards, in accordance with
Article 89 of the management contract entered into between
SNCB-Holding and the State, but also to meet the expectations
of investors who, via SNCB-Holding, provide financing for the
SNCB Group.
However, the company’s annual financial statements have
been prepared according to two accounting standards
(Belgian B-GAAP standards and IFRS standards). The duality
of standards results in different figures, since the accounting
principles differ depending on the standards applied. The
result according to IFRS is €-28.0 million, but must be adjusted
as follows in order to present the result according to B-GAAP
(€+150.8 million):
• fair value adjustments not recorded under B-GAAP
(€-21.4 million),
• deferred tax determined by IAS 12 (€136.5 million),
• cancellation in IFRS of the financial provisions recorded in B-GAAP (€42.9 million),
• adjustment of staff social security benefits (€17.5 million),
• other IFRS adjustments (€3.5 million).
These are also the accounts which are the subject of the
certification report prepared by the Board of Auditors.
The IFRS accounts are available on the company's website
(http://www.belgianrail.be/nl/corporate/publicaties/
jaarverslag.aspx)
EBITDA
One of the key indicators of the company’s financial
performance is the change in gross operational cash flow,
which can be measured by EBITDA (Earnings Before Interest,
Tax, Depreciation and Amortisation).
As at 31 December 2013, EBITDA (B-GAAP) amounted to
€144.1 million, compared with €125.1 million in 2012, an
increase of €18.9 million (15.1%).
This positive change is primarily explained by:
• an increase of €143.5 million in turnover, largely associated with a decrease of €99.1 million in orders in progress;
• an increase of €50.1 million in overall personnel costs;
• an increase of €19.1 million in other operating income;
• a decrease of €8.5 million in miscellaneous goods and services;
• an increase of €3.6 million in goods, raw materials and consumables.
98
The income statement (million €)
2013
2012
Sales & services
2,573.3
Turnover
2,613.3
Variation in work-in-progress, finished products
and orders-in-progress
Capitalised production
Other operating income
Operating expenses excluding amortisation,
provisions and impairment losses
Supplies and goods
Miscellaneous goods and services
Remuneration, social security contributions, pensions Other operating expenditure
EBITDA
Depreciation
Value reductions
Provisions
EBIT
Investment result
Difference
%
2,509.1
64.2
2.6%
2,469.8
143.5
5.8%
-97.1
2.0
-99.1
-
19.7
19.0
0.8
4.0%
37.4
18.3
19.1
N.S.
-2,429.2
-2,383.9
-45.3
1.9%
-4.8
-1.2
-3.6
NS
-249.4
-257.9
8.5
-3.3%
-2,171.2
-2,121.0
-50.1
2.4%
-3.9
-3.8
-
1.1%
144.1
125.1
18.9
15.1%
-75.8
-78.1
2.3
-3.0%
0.5
-1.2
1.7
NS
49.3
-47.6
96.8
NS
118.1
-1.7
119.8
NS
75.8
-45.9
121.8
NS
241.1
348.1
-107.0
-30.7%
Income from trade investments held as fixed assets
20.2
22.7
-2.6
-11.3%
Income from current assets
65.6
87.8
-22.3
-25.4%
Investment income
Other investment income
155.3
237.5
-82.1
-34.6%
Investment expenditure
165.2
394.0
-228.7
-58.1%
Cost of debts
191.6
215.9
-24.3
-11.3%
Value reductions
0.3
1.4
-1.0
-77.0%
-26.7
176.7
-203.4
NS
EBT
194.0
-47.6
241.6
NS
Exceptional result
-43.1
51.2
-94.4
NS
16.7
58.2
-41.5
-71.4%
-59.8
-6.9
-52.9
NS
Other investment expenditure
Exceptional income
Exceptional expenditure
150.8
3.6
147.2
NS
Levies on untaxed reserves 0.0
88.9
-88.9
NS
Tax on profit or loss
0.0
0
0.0
NS
150.8
92.5
58.3
63.1%
Result
Profit
financial report of SNCB-Holding
99
EBITDA improved by €18.9 million, despite the fall in turnover
Balance sheet
from intra-group services for operating activities.
The SNCB-Holding balance sheet total was €11,632.8 million,
Other significant elements in the result
an increase of €1,210.1 million compared with the previous
After taking into account depreciation (€-75.8 million),
year (€10,422.7 million).
impairments on receivables and stock (€+0.5 million) and
provisions (€49.3 million), the operating result (EBIT) was
The balance sheet structure is still characterised by a
€118.1 million, up €119.8 million from 2012 (€-1.7 million).
significant proportion of fixed assets (€6,806.8 million), mainly
tangible fixed assets (€2,533.7 million), but also financial
The financial results are positive to the tune of €75.8 million.
assets (€4,167.2 million).
They include financial income totalling €241.1 million, €91.2
million of which consists of amortisation of capital subsidies
With particular regard to tangible and intangible fixed assets,
received, and financial charges of €165.2 million, including in
SNCB-Holding invested €165.1 million in 2013, including
particular the net interest charge relating to the ‘management
€42.3 million on stations and €54.0 million on parking
contract’ debt amounting to €82.0 million.
facilities.
The overall result for the financial year is a positive €150.8
SNCB-Holding also has various shareholdings, including in
million, as against a profit of €3.6 million in 2012, i.e. an
SNCB, Infrabel and SNCB Logistics. The value of its stake in
improvement of €147.2 million. Taking into account the
SNCB had already been reduced to zero in previous financial
previous losses brought forward, it is proposed that the result
years.
to be appropriated for the financial year should be applied to
clear these losses.
In addition, in the context of the search for a strategic partner
for SNCB Logistics, the latter has been the subject of a
valuation. Assuming a weighted average cost of capital (WACC)
of 8% and a permanent growth rate (PGR) of 1.75%, the value
of the company is estimated at €24 million. On this basis, the
value of SNCB-Holding’s 6.81% stake in the capital of SNCB
Logistics was corrected, with an impact on the financial result
of €9.8 million.
The remaining assets are current assets (€4,826.0 million),
which among other things include €1,603.9 million of
receivables falling due in more than one year and €2,103.8
million of cash investments and liquid assets.
100
Balance sheet (million €)
Fixed assets
Start-up costs
31/12/2013
31/12/2012
Difference
6,806.8
5,443.3
1,363.5
-
-
-
105.9
125.1
-19.2
Tangible fixed assets
2,533.7
1,342.1
1,191.6
Trade investments held as fixed assets
4,167.2
3,976.1
191.1
Current assets
4,826.0
4,979.4
-153.4
Receivables of more than one year
1,603.9
1,492.4
111.5
Intangible fixed assets
Stocks
Receivables of one year maximum
Cash investments
Liquid assets
Accruals and prepayments
TOTAL ASSETS
Equity capital
Capital
Share premium
Capital gains on revaluation
42.7
138.2
-95.4
759.1
1,040.8
-281.7
2,041.0
1,981.3
59.7
62.7
37.5
25.2
316.5
289.2
27.3
11,632.8
10,422.7
1,210.1
3,381.6
1,909.1
1,472.6
741.8
741.8
-
-
-
-
1,223.6
-
1,223.6
-
-
-
-23.9
-174.7
150.8
1,440.2
1,342.0
98.2
Provisions and deferred taxes
882.8
980.1
-97.4
Provisions for contingencies and expenditure
882.8
980.1
-97.4
-
-
-
Debts
7,368.4
7,533.5
-165.1
Debts of more than one year
4,683.1
4,909.6
-226.5
2,429.4
2,289.7
139.7
255.9
334.2
-78.3
11,632.8
10,422.7
1,210.1
Reserves
Retained earnings
Capital subsidy
Deferred taxes
Debts of one year maximum
Accruals and prepayments
TOTAL LIABILITIES
financial report of SNCB-Holding
101
The liabilities mainly comprise €3,381.6 million of
The Board of Directors has endorsed the conclusions of the
shareholders’ equity, €882.8 million of provisions for liabilities
PwC study and decided that both the profitability of the CGU
and charges, €4,683.1 million of debts falling due in more
Stations/Estate and the realisable value (market value) of the
than one year and €2,429.4 million of debts falling due within
assets concerned permit the latter to be revalued under the
one year.
terms of Article 57 of the Royal Decree of 30 January 2001 on
the implementation of the Company Code, taking into account
On the basis of the PwC study of 5 November 2013 entitled
the utility value of these assets to the company in the context
Project Station - Analysis of the revaluation opportunities for
of its public service mission and its goal of overall financial
certain fixed assets of SNCB-Holding and SNCB, the Board
equilibrium.
of Directors has determined that the realisable value of the
CGU Stations/Estate of SNCB Holding resulting from the
Following consistency checks conducted by the Board of
discounted future cash flows based on appropriate financial
Auditors, however, some values had to be corrected. The final
parameters presents a revaluation potential. Moreover, the
value of the revaluation of fixed assets amounted to €1,223.6
value of many immovable assets (land) presents a certain
million: €1,127.0 million for land, €34.6 million for the
and lasting surplus over book value, taking into account their
shareholding in Eurostation’s capital and €62.0 million for the
carefully estimated realisable value (market value). It follows
shareholding in Eurofima’s capital.
that the restated value of the relevant assets can be realised,
independent of the degree of profitability of the CGU Stations/
With regard to the balance sheet debt, it should be noted that
Estate as a whole, by their disposal under market conditions.
this cannot be analysed without offsetting against it certain
The assets that are the subject of revaluation are useful for the
assets (fixed term deposits or receivables) which are closely
activities of SNCB-Holding (today) and New SNCB (tomorrow),
linked to it, due to the structure of certain loans, and also to
in connection with the management of both the SNCB’s
the cash-pooling function assumed by SNCB-Holding on behalf
historical estate and the stations. In addition, their utility
of the SNCB Group. For this reason indebtedness is subject to a
value must necessarily be appraised in the light of the public
specific calculation as detailed below.
service mission assigned to the company: the purpose of the
property reserve is not to serve objectives of profitability
The net debt was €3,292.3 million at the end of 2013,
comparable to the market, but to contribute sustainably to the
consisting of €2,566.9 million of assets (€1,040.7 million of
achievement of the SNCB’s missions with a view to financial
financial assets, €122.6 million of derivatives and €1,403.5
equilibrium. Given that these are non-depreciable assets,
million of cash and cash equivalents) and €5,859.2 million
the revaluation will have no direct impact on the company’s
of liabilities (€5,664.9 million of financial debts and €194.3
income statement.
million of derivatives).
The analysis of PWC is based on assumptions, which have
been selected under the Gramafi exercise (projection of the
financial impact of the restructuring of the SNCB Group),
including operating cash flows and future investments.
102
Indebtedness
During 2013, SNCB-Holding’s net debt increased by €204.2
SNCB-Holding’s net indebtedness is the debt contracted with
million, from €3,088.1 million to €3,292.3 million. This
financial institutions as entered in the accounts:
unfavourable change is primarily the result of the allocation of
+
interest-bearing intra-group debts;
funds for equipment intended for the RER and the release of
-
interest-yielding intra-group cash investments;
capital for Infrabel (TGV deficit).
-
‘back-to-back’ transactions concluded with the State in connection with the assumption of debt on
Article 88 of the management contract entered into with
1 January 2005;
the State imposes stabilisation of the debt for which SNCB-
-
liquid assets and cash investments with financial Holding is responsible (“management contract debt”), i.e.
institutions not managed on behalf of third parties disregarding the loans made on behalf of public authorities,
(RER Fund, Liefkenshoektunnel, Employee Benefits in connection with contracts by which the latter secure the
Fund);
principal and interest charge of such loans (“non-management
-
cash investments earmarked for partial repayment of
contract debt”). The chart below shows the changing level of
this debt.
the nominal debt amount contracted with financial institutions;
-
interest-yielding receivables relating to intra-group The company’s financial policy states among other points that
companies.
the ratio of fixed to variable interest rates must be 2/3 to 1/3,
with a ±5% margin. As at the end of December 2013, this
fixed/variable ratio was 63.0% to 37.0%. The ratio therefore
falls within the authorised range.
Changes in debt
2,960
2,826
3,194
393
345
379
2,541
2,443
2,444
470
2,274
758
1,048
2,330
2,244
31/12/2005
31/12/2006
31/12/2007
31/12/2008
31/12/2009
31/12/2010
31/12/2011
31/12/2012
31/12/2013
2,960
2,826
3,194
2,934
2,788
2,823
2,744
3,088
3,292
management
contract debt
non-management
contract debt
rapport financier SNCB-Holding
103
Significant events after the balance
sheet date
The law of 30 August 2013 regarding the reform of the Belgian
A number of accompanying measures have been added to
these operations, such as capital increases and transfers of
certain assets and liabilities.
railways broadly outlined the principles of a major structural
reform of Belgian railway operations.
Impact of restructuring
SNCB-Holding has no knowledge of any provisions made in
The fundamental principles of this reform consist of redefining
order to achieve synergies in connection with the merger or
the structures and the roles of the three public limited
cover any excessive costs.
companies under public law within the meaning of the law
companies including SNCB-Holding, Infrabel and SNCB.
Circumstances potentially having
a material influence on the development
of the company
The goal was to reduce the SNCB Group, as structured since
Apart from the circumstances mentioned below under ‘Risks’,
2005, to two autonomous public companies in the form of
it should be noted that as yet no new management contract
public limited companies under public law (an infrastructure
has been signed with the government.
of 21 March 1991 on the reform of certain economic public
manager and a rail operator), which will participate together
with the State in HR Rail, a public law subsidiary, which will act
Preparations have been started to draw up a new management
as the sole employer of the staff.
contract between the SNCB merger company and the
government.
The transition to the new structure consisted of three
operations that were carried out simultaneously, and the
In the meantime, the 2008-2012 management contract has
consequences of which took effect from 1 January 2014:
been extended, and provisional rules have been set for the
1.the merger of SNCB-Holding and SNCB via a merger method transitional period.
by which SNCB-Holding absorbs SNCB.
2.The transfer of certain activities and assets of SNCB-Holding As well as SNCB’s obligations, the management contract will
to Infrabel through a partial demerger, accompanied by a also define the subsidies that SNCB will receive for its public
decoupling of the current shareholding of SNCB-Holding in utility services with respect to both investments and operating
Infrabel.
funds.
3.The establishment of HR Rail as a public limited company under public law which will be the employer of the staff and
Following the guidelines of its main shareholder, the SNCB
into which the assets and liabilities from the current human Group took measures to reduce the number of subsidiaries.
resources operational activity of SNCB-Holding have been Concrete actions have already been taken to reduce the
brought.
consolidation of the SNCB Group in 2013 by 27 companies. In
2014, this movement will be extended and will include at least
five additional subsidiaries.
104
Research and development activity
Each quarter, the Finance Department reports on financial
There were no significant activities in the field of research and
activities to the Executive Committee, the Audit Committee
development in the year 2013.
and the Board of Directors, as part of the presentation of the
financial statements.
Branch offices
SNCB-Holding does not have any branch offices.
Every year, the Treasury Service of the Finance Department
prepares a report analysing the consequences of the credit
Application of going concern rules
SNCB-Holding’s results for the financial year are a positive
€150.8 million, and it should be noted that, through its
activities, the company generated a gross operating surplus
(EBITDA) of €144.1 million as at the end of 2013, up €18.9
million from 2012. This amount easily covers the financial
charges relating to the management contract debt (€82.0
crisis for SNCB-Holding. This report is intended for the
Executive Committee, the Audit Committee and the Board of
Directors.
In addition, Internal Audit is responsible for verifying
compliance with the financial policy defined by the company,
in particular concerning the use of derivatives, and the
million).
accuracy of reports.
Finally, SNCB-Holding’s rating has been stable since its
In view of the internal regulations in force regarding the
downgrade in 2011 by Moody’s (from Aa1 to A1) and by
Standard & Poor’s (from AA to A+, with ‘negative’ outlook).
These ratings have been repeatedly confirmed since then,
most recently on 20 November 2013 by Moody’s and on 15
November 2013 by Standard & Poor’s.
In accordance with the obligations arising from Article 109
of the management contract, the SNCB-Holding Board of
Directors monitors changes in the SNCB’s financial situation
with careful attention, as any deterioration in that situation
could jeopardise the financial equilibrium of the Group as a
whole and, at the same time, compromise the achievement of
the management contract objectives.
Reporting and control
Each month, an activity report is prepared by the Treasury
Service at the Finance Department for the Chief Financial
Officer, the Deputy Financial Officer, Accounting, Internal Audit,
and the Board of Auditors.
management and reduction of risks, it is clear that the existing
contracts relating to derivatives can have only a marginal
impact on the company’s price, credit, liquidity and cash flow
risks.
These risks are assessed quarterly at their market value and
the necessary provisions are made or reversed.
In accordance with Article 67 of the management contract with
the State, the Finance Department submits regular reports on
the utilisation of the RER Fund financial resources to the DGTT
and the Minister of Public Companies.
Concerning the management of the Railway Investments Fund,
the Finance Department provides the federal government with
a special report (pursuant to the Royal Decree of 21 December
2013) regarding payment into the Railway Investments Fund
account of the financial resources for investments which have
not been used by the SNCB Group in 2013.
financial report of SNCB-Holding
105
The resources managed by SNCB-Holding for the Liefkenshoek
Liquidity risk
Rail Link (under the supervision of the Flemish Region) and for
When financing is contracted, account is taken of the forecast
the Flemish Region in connection with the Mechelen station
changes in the future cash flow in order to level out and
approach project are mentioned in a special report to the
reduce the cash balances as far as possible. Investments and
Flemish Region.
loans must be aligned to each other in order to minimise
Risks and uncertainties relating to the use
of financial instruments and the company’s
financial situation
internal risks.
In addition, the liquidity risk is covered by spreading debt due
dates over time. Thus, at most 20% of the outstanding debt
In connection with financing its debt and concluding various
may mature in the same year, with a maximum of 10% of the
alternative financing transactions, SNCB-Holding actively
debt per quarter. During the financial year 2012, an exemption
manages certain risks, in particular relating to liquidity,
was obtained by the Board of Directors concerning the issue
exchange, and interest and credit rates. For this purpose, it
of the first tranche of €500 million under the new EMTN
has drawn up a financial policy, approved by the Board of
programme.
Directors, laying down strict risk management rules.
Exchange risk
To cover exchange and interest rate risks, products known
Any debt transaction, even short term, generating an exchange
as ‘derivatives’ are used, namely swaps, forward rate
risk, must be immediately covered in full in euros (principal
agreements, options, forward exchange contracts and futures,
and interest) by the use of derivatives.
the underlying securities being an interest rate, inflation, an
exchange rate, energy products (including diesel for diesel
The covered position can be accompanied by a floating or fixed
traction and traction electricity) or a receivable.
interest rate.
Such transactions are recorded in accordance with IAS
Interest rate risk
standards 32 and 39 for the accounts published under ‘full
The working methods for limiting liquidity risks also apply to
IFRS’, and in accordance with Belgian accounting legislation
covering interest rate risks.
for the accounts published under Belgian Gaap.
The aim is for fixed rate debt to represent 2/3 of net longThree counterparties need to be consulted in advance before
term debt. This ratio may be adjusted according to market
hedging transactions can be entered into.
conditions, provided set procedures are complied with.
Trading operations are excluded.
The pre-financing contracted by SNCB-Holding for the TGV
project, the RER equipment and the purchase of series 18
The financial policy mentioned above is also applicable to
locomotives, which is covered by hedging, is not taken into
the financial resources of the RER Fund, which SNCB-Holding
account in calculating the ratio.
manages in the name and on behalf of the State.
106
Credit risk
Investments must be in the form of a loan and may not use risk
Regional pre-financing and co-financing
capital. They are subject to strict minimum rating criteria of the
The cooperation agreement between the State, the Flemish
counterparties, depending on the term of the investment.
Region, the Walloon Region and the Brussels-Capital Region
relating to the (then unitary) SNCB 2001-2012 multi-year
Maximum amounts per counterparty are also set. However,
investment plan provided for:
these limits are not applicable to investments in instruments
• the pre-financing of infrastructure projects of regional that benefit from an AAA/Aaa rating or are issued or
interest, with the pre-financed amounts being reimbursed guaranteed by the Belgian Government, the Flemish
by the federal State and the interest charges being borne by Community, the Walloon Region, the French Community and
the Region concerned;
the Brussels-Capital Region.
• the co-financing of work concerning major rail investments, with the pre-financing cost (principal plus interest) being For derivatives, the credit risk in relation to the counterparties
reimbursed in full by the Region concerned.
must be spread and systematically covered by the
arrangement of Credit Support Annex (CSA) contracts. With
The following pre-financing arrangements were current as at
regard to this type of contract, regular calculations are made of
31 December 2013:
the net amount that would have to be paid by either SNCB-
• railway infrastructure works at the port of Zeebrugge,
Holding or the counterparty in the event of the immediate
cancellation of the total outstanding amount of the derivatives
entered into with the counterparty.
Recourse to CSAs limits the risk to a maximum amount, which
varies according to the rating of the counterparty. Continued
downgrading of SNCB-Holding’s rating would result in
considerable sums having to be lodged with counterparties
under these CSA contracts.
If a bank’s rating falls below BBB+/Baa, contracts with this bank
must be transferred to another bank that has a higher rating.
With counterparties that have been put on negative credit
watch, no new transactions can be carried out during the
negative credit watch period.
investments in the localised part of the Brussels Luxembourg axis and railway infrastructure works at the port of Brussels (agreement of 5 December 2006) via a
pre-financing agreement with SNCB-Holding;
• construction of the Liefkenshoek tunnel at the port of Antwerp (DBFM agreement of 5 November 2008) via a
public-private partnership;
• construction of parking facilities at Louvain-la-Neuve (agreement of 2 June 2009) via pre-financing with SNCB-
Holding.
In addition to the following co-financing arrangements :
• construction of a link road and associated structures with a view to redevelopment of the station approaches and public spaces in Mechelen (agreement of 19 December 2008) via a financial report of SNCB-Holding
107
financing contract with SNCB-Holding;
of the shares and 20% of the voting rights minus one, only
• integration of a bus station in the future Mons railway transactions under market conditions were performed.
station (agreement of 1 March 2010) and integration of a Transactions in which SNCB-Holding is the supplier are either
bus station in the existing station at Namur (agreement of
performed at cost price (in particular the secondment of
4 September 2012) via financing contracts with SNCB-
personnel) or defined by intra-group contracts (already existing
Holding.
or being entered into) which have been subject to in-depth
negotiations between the parties, on the basis of benchmarks
Of the six pre-financing projects planned initially, only the
where these were available. Likewise, transactions in which
agreement relating to the construction of a new station at
Infrabel is a supplier are either performed at cost price (in
Gosselies airport has yet to be signed.
particular the supply of electricity) or defined by intra-group
contracts (already existing or being entered into) which have
On 14 December 2010 a cooperation agreement was entered
been subject to in-depth negotiations between the parties, on
into with the Flemish Region and De Lijn for the realisation of
the basis of benchmarks where these were available.
the Ostend station project.
No material transactions were executed with other subsidiaries
Transactions with related parties carried out
under non-market conditions
or sub-subsidiaries not directly or indirectly wholly owned by
SNCB-Holding.
Pursuant to the Royal Decree of 10 August 2009, SNCBHolding is obliged to provide additional information on
For the sake of prudence, it should also be specified that
material transactions with related parties executed under
no material transactions were executed under non-market
non-market conditions. In particular, this concerns companies
conditions with companies not directly or indirectly wholly
meeting more than one of the criteria set out in Article 16, §1,
owned by the State, which owns 99.9% of the SNCB-
sub-paragraph 1 of the Company Code.
Holding shares. Furthermore, no material transactions were
entered into under non-market conditions with members of
Although transactions with SNCB are not covered by the
provisions of the Decree, given that SNCB-Holding is its sole
shareholder, it should be noted that such transactions are
either performed at cost price (in particular the secondment
of personnel), or defined by intra-group contracts (already
existing or being entered into) which have been subject to
in-depth negotiations between the parties, on the basis of
benchmarks where these were available. However, for certain
rolling stock sub-leasing contracts entered into at the time of
implementation of the new SNCB Group structure on 1 January
2005, no benchmark was or is available.
With regard to Infrabel, in which SNCB-Holding held 93.66%
108
management or executive bodies or persons related to them.
financial report of SNCB-Holding
109
Corporate Governance
• the Steering Committee
• the National Joint Committee
The SNCB-Holding articles of association are heavily
• the Three CEOs Committee
influenced by its legal status as a public limited company
• the Strategic Unit
under public law (Société anonyme de droit public). As such,
SNCB-Holding is primarily subject to the Law of 21 March
In addition, there are also the inspection bodies, such as the
1991 on the reform of certain economic public companies. For
Government Commissioner and the Board of Auditors.
matters not covered by this Law, it is subject to the Company
For a more detailed description of the management structure
Code.
and the operating rules of the management bodies, see the
Corporate Governance Charter published on the SNCB-Holding
In the world in which we operate, corporate governance is
website (www.sncb-holding.be).
a major issue demanding careful attention and rules of the
utmost transparency. As a public company, SNCB-Holding is
firmly committed to a duty of responsibility, and to improving
the management and control of its activities. In view of
its public service duties, SNCB-Holding has a direct social
responsibility towards its main shareholder – the State – and
its customers: members of the public who travel by train.
Corporate governance statement
Derogation from the Belgian Corporate
Governance Code 2009
SNCB-Holding complies with the principles and provisions
of the Belgian Corporate Governance Code 2009, with the
exception of provisions 4.1, 4.2, 4.6 and 4.7.
Provisions 4.1 and 4.2 stipulate that the Board of Directors
must establish appointment procedures and selection criteria
With regard to the rules of corporate governance, SNCB-
for the directors and that the Chairman or another non-
Holding complies with the reference code imposed by the
executive director must conduct the appointment process,
Royal Decree of 6 June 2010 (Belgian Official Gazette of 28
whereas Article 162 bis §2 of the Law of 1991 stipulates that
June 2010, p. 39622 ff.), except as provided for in the Law
the King will appoint a number of directors in proportion to
of 21 March 1991 on the reform of certain economic public
the voting rights attached to the shares held by the State. As
companies.
the Belgian State holds 99.998% of the shares, all directors
are appointed by the King, according to the complementary
In order to properly fulfil its obligations, SNCB-Holding is
nature of their skills.
supported not only by its Board of Directors but also by three
specialist committees: the Audit Committee, the Appointments
Provision 4.6 stipulates that directors’ terms of office must not
and Remuneration Committee and the Strategic Committee,
exceed four years, whereas, according to Article 162 bis §3 of
as well as the Executive Committee and other consultative
the Law of 1991, SNCB-Holding directorships have a six-year
committees, such as:
term.
Provision 4.7 stipulates that the Chairman must be appointed
by the Board; according to Article 162 bis §5, however, the
Chairman is appointed by the King.
110
SNCB-Holding: composition of the
management and control bodies in 2013
Audit Committee
The composition of the Audit Committee is such that it
comprises the multiple skills required for a public company of
the size of SNCB-Holding.
Board of Directors
Until 14 October 2013:
Chairman: Jean-Claude Fontinoy
Until 14 October 2013:
CEO: Jannie Haek
Chairman: Lieve Schuermans
Directors: Eddy Bruyninckx, Catherine Members: Eddy Bruyninckx, Catherine Gernay, Luc Joris, Paul Matthys, Gernay, Magali Verdonck
Lieve Schuermans, Magali Verdonck, Marianne Vergeyle, Jacques Etienne
From 14 October 2013 until 16 December 2013:
Chairman: Members: From 14 October 2013 :
Chairman : Renaud Lorand
Eddy Bruyninckx, Valentine Delwart, Kris Lauwers
Jean-Claude Fontinoy
Jannie Haek (until 13 November From 16 December 2013:
2013), Jo Cornu (from 13 Chairman: Dirk Sterckx
November 2013)
Members: Valentine Delwart, Kris Lauwers,
Directors: Eddy Bruyninckx, Valentine Renaud Lorand
Delwart, Luc Joris, Kris Lauwers, Valérie Leburton, Renaut Lorand, Appointments and Remuneration Committee
Saskia Schatteman and Dirk Until 14 October 2013:
CEO:
Sterckx.
Chairman:
Jean-Claude Fontinoy
Members:
Jannie Haek, Luc Joris, Marianne Vergeyle
Executive Committee
Chairman: Jannie Haek (until 13 November 2013), Jo Cornu (from Du 14 octobre 2013 au 16 décembre 2013 :
13 November 2013)
Chairman: Jean-Claude Fontinoy
Executive Officers: • Michel Allé (Finance)
Members :
Jannie Haek (until 13 November •Vincent Bourlard (Stations)
2013), Jo Cornu (from 13 •Michel Bovy (Strategy & November 2013), Luc Joris, Dirk Coordination) (until 20 Sterckx
December 2013) •Sven Audenaert (Human Resources)
corporate governance SNCB-Holding
111
National Joint Committee
From 16 December 2013:
Chairman: Jean-Claude Fontinoy
Chairman: Jean-Claude Fontinoy
Members:
Jo Cornu, Luc Joris, Eddy SNCB Group delegation:
Jannie Haek (until 13 November 2013), Jo Cornu (from 13 November 2013), Michel Alle,
Michel Bovy, Sven Audenaert, Luc Lallemand, Luc Vansteenkiste,
Bruyninckx
Strategic Committee
Chairman: Jannie Haek (until 13 November Eddy Clement (until 13 November 2013), Jo Cornu (from 13 2013), Marc Descheemaecker
November 2013)
(until 13 November 2013), Members: • the other nine directors
Sabin S’heeren, Richard Gayetot
• the four executive officers
Delegation of recognised
• the representatives of the union bodies:
Pierre Lejeune, Serge Piteljon, union bodies: Michel Abdissi L. Sempels, Rudy Verleysen, (until 14 June 2013), Dominique Michel Praillet, Claude Deschaep-
Dalne (until 18 October 2013), meester, I. Bertrand, Luc Piens, Rudi Dils (from 14 June 2013),
Gérard Husson, P. Vanderborght
Jean-Pierre Goossens (until 14 June 2013), Gerard Husson Government Auditor
(from 18 October 2013), Luc Government Auditor:
Olivier Vanderijst
Piens, Serge Piteljon, Michel Praillet (from 14 June 2013), Board of Auditors
Rudy Verleysen (from 14 June Board of Auditors for inspection of the statutory accounts:
2013), Marcel Vertongen (until Chairman: 14 June 2013)
Members: Philippe Gossart
Ignace Desomer, Michel de Fays, Ria Verheyen
Steering Committee
Chairman: Jannie Haek (until 13 November Auditors
2013), Jo Cornu (from 13 Auditors for inspection of the consolidated accounts of the
November 2013)
SNCB-Holding - Infrabel consortium:
Members: Marc Descheemaecker (until 13 Ria Verheyen on behalf of Grant
November 2013), Luc Lallemand, Thornton Réviseurs d’entreprises Luc Piens, Michel Abdissi,
SCRL and Philippe Gossart on Jean-Pierre Goossens
behalf of Mazars Réviseurs d’entreprises SCRL.
112
Board of Directors
unanimous consent of the directors, expressed in writing.
This procedure was used once in 2013.
Composition
The Board is made up of ten members, including the CEO. At
Powers
least one-third of the members must be of the opposite sex
The Board of Directors is empowered to carry out all actions
(Article 162 bis §1 of the Law of 21 March 1991). Linguistic
necessary or useful for the fulfilment of the public company’s
parity is observed.
corporate object.
The Board exercises oversight over the management provided
The King appoints a number of directors in proportion to the
by the Executive Committee, which reports regularly to the
voting rights attached to the shares held by the State (Article
Board.
162 bis §2 sub-paragraph 1 of the Law of 21 March 1991), by
The Board, or its Chairman, without prejudice to the powers
decree following consultation in the Council of Ministers. All
granted to him under Article 18 §5 of the Law of 21 March
the directors are appointed by the King.
1991, may at any time ask the Executive Committee to provide
a report on the Company’s activities or certain of them.
The Board of Directors of SNCB-Holding was reconstituted
by the Royal Decree of 14 October 2013. With a view to
In 2013, in addition to ongoing matters, the Board of Directors
the restructuring of the SNCB Group, the composition of
took decisions on and monitored a certain number of major
the Boards of Directors of SNCB-Holding and the SNCB was
issues:
made identical as from 14 October 2013. This is also the
• monitoring the restructuring of the SNCB Group;
composition of the Board of Directors of the new SNCB from 1
• monitoring the financial situation of the SNCB Group and January 2014.
stabilisation of debt;
• the 2013-2025 multi-year investment plan;
The term of office of all directors is six years from 14 October
• monitoring changes in the SNCB Group workforce;
2013.
• monitoring the restructuring of SNCB Logistics;
Functioning
• monitoring the major station projects.
Frequency of meetings
Under Article 10 of the Articles of Association, the Board meets
as often as is required by the interests of the company, and at
least four times a year.
In 2013, the Board met 15 times.
In exceptional cases, when an urgent situation and the
interests of the company so require (except in cases excluded
by law), decisions of the Board of Directors may be taken by
corporate governance SNCB-Holding
113
Audit Committee
• monitoring the financial situation of SNCB Logistics;
• monitoring the subsidiaries.
Functioning
Appointments and Remuneration Committee
Frequency of meetings
The existence of the Appointments and Remuneration
The Audit Committee meets at regular intervals. The Chairman
Committee is required by Article 161 ter of the Law of 21
of the Committee can convene special meetings to enable the
March 1991.
Committee to properly fulfil its remit.
Directors who are not members of the Audit Committee can
Functioning
attend meetings if they wish, in which case they receive the
corresponding attendance fees. In 2013 the Audit Committee
Frequency of meetings
met 14 times.
The Committee meets as often as required in the interests of
the company. In 2013, the Appointments and Remuneration
Powers
Committee met 9 times.
The Audit Committee carries out the tasks entrusted to it
by the Board of Directors. In addition, it assists the Board of
Powers
Directors by examining financial information, in particular the
The Committee advises on applications proposed by the CEO
annual financial statements, the annual report and interim
with a view to the appointment of members of the Executive
reports. It also ensures the reliability and integrity of the
Committee.
financial reports with regard to risk management.
It makes proposals to the Board on the remuneration and
The main issues dealt with by the Audit Committee in 2013
benefits granted to Executive Committee members and senior
included:
executives and monitors these issues on an ongoing basis.
• monitoring the restructuring of the SNCB Group;
• monitoring the financial situation of the SNCB Group and It also carries out the tasks entrusted to it by the Board of
stabilisation of debt;
Directors.
• monitoring the credit crisis;
• monitoring the recommendations made by Internal Audit and the action plans agreed between it and the operational management;
• the Internal Audit 2014 activity programme, and in particular the audit work to be carried out;
• monitoring intra-group invoicing;
• monitoring SNCB-Holding’s credit rating;
• management and control of tenders/contracts within SNCB-
Holding;
114
Strategic Committee
annual accounts for 2012;
This Committee was set up by the Law of 22 March 2002
• the 2013 quarterly accounts;
modifying the Law of 21 March 1991 (Article 161 ter §§ 1, 5, 5
• the amendment of the 2013 investment budget;
bis, 6 and 7 of the Law of 21 March 1991). The Committee was
• the 2013-2025 multi-year investment plan;
established on 20 December 2002.
• the SNCB-Holding investment budget for 2014.
Functioning
Executive Committee
The CEO is appointed by the King, by decree issued after
Frequency of meetings
consultation in the Council of Ministers, for a six-year term of
The Committee meets whenever decisions need to be taken
office (Article 162 quater of the Law of 21 March 1991).
by the Board on strategic matters for which the Committee’s
prior opinion is required, and whenever the management
The Board of Directors appoints the members of the Executive
contract needs to be discussed. In 2013, the Strategic
Committee at the proposal of the CEO and after hearing the
Committee met 9 times.
opinion of the Appointments and Remuneration Committee
(Article 162 quater of the Law of 21 March 1991).
Powers
Without prejudice to the powers granted to the Board and
All the members of the Executive Committee perform full-
to the Executive Committee, the Strategic Committee is
time functions within SNCB-Holding or in connection with
empowered:
representing it (Article 162 quater of the Law of 21 March
• to give its opinion, before the company’s management 1991).
contract is entered into, and to monitor the implementation of the management contract,
Functioning
• to give its opinion, prior to Board resolutions, regarding any measures capable of influencing medium- and long-
Frequency of meetings
term employment,
Meetings of the Executive Committee are held in principle
• to give its opinion, prior to Board resolutions, regarding every week, normally on Mondays. In 2013, the Executive
the company’s general strategy, its subsidiaries, merger Committee met 49 times.
and acquisition processes, general personnel and investment policy, the business plan, changes in annual
Powers
finances and budgets, and defence of the competitive The Executive Committee is responsible for the day-to-day
position provided that such resolutions have a long-term management and the representation with regard to such
impact.
management, and the implementation of resolutions of the
Board of Directors.
Specifically, the Strategic Committee was consulted on the
The members of the Executive Committee operate as a
following matters:
collegiate board. They can share out tasks.
• the SNCB-Holding annual accounts and the consolidated corporate governance SNCB-Holding
115
Steering Committee
• a report on the use of the Internet, email and professional IT The Steering Committee was set up at SNCB by the General
storage space;
Meeting of 28 May 2004. It is a statutory body with powers
• a fourth supplement to the 2008-2012 management to assist in the development of new structures and business
contracts between the State and the three SNCB Group plans and in connection with operational management
companies;
problems.
• monitoring the restructuring of the SNCB Group and the introduction of the new structures;
Frequency of meetings
• information on the Royal Decree establishing HR Rail;
The Committee meets at least once a month. Meetings can be
• general regulations on trade union relations.
convened by any member or by the SNCB-Holding Executive
Committee. The latter or any member can add items to the
agenda (Article 25 of the Articles of Association).
In 2013 the Steering Committee mainly dealt with the
following points:
• the restructuring of the SNCB Group;
There were 7 meetings of the National Joint Commission in
2013.
Government Auditor
Article 162 nonies of the Law of 21 March 1991 states:
‘SNCB-Holding shall be subject to the controlling power of the
• personnel developments;
Minister whose portfolio includes the railways. This control
• the punctuality and quality of rail services;
shall be exercised through the action of a Government Auditor,
• assessment of the agreement on work stoppages.
appointed and dismissed by the King, at the proposal of the
Minister concerned.’
The 3 CEOs Committee
The 3 CEOs Committee is formed by the CEOs of the three
The Auditor is invited to all meetings of the Board of Directors,
companies and chaired by the CEO of SNCB-Holding. In
the Executive Committee and the Strategic Committee,
particular, it prepares the meetings of the Steering Committee
and attends in an advisory capacity. In addition, he attends
and coordinates projects affecting the Group as a whole.
meetings of the Audit Committee in an advisory capacity.
National Joint Committee
Board of Auditors
Article 25 §1 of the Law of 21 March 1991 states: ‘The
Issues dealt with
verification of the financial situation, of the annual accounts,
• career breaks, palliative care leave, parental leave and care and of the compliance with the Law and the organic statute
for a seriously ill family member or relative;
of the operations to be shown in the annual accounts shall be
• adaptation of the selective testing programmes;
entrusted, in each autonomous public company, to a Board of
• the allowance for special work;
Auditors.’
• changes to ARAD 06 – Welfare at work;
• internship agreements in the context of part-time learning/
work;
116
The Board is made up of four members, two of whom are
appointed by the Court of Audit from among its own members,
and the other two by the General Meeting from members of
The gross remuneration of the other directors is made up
the Belgian Institute of Company Auditors.
of a fixed annual component which amounts to €13,600
and a variable component consisting of attendance fees for
The SNCB-Holding General Meeting held on 31 May 2011
meetings. These fees are:
appointed PKF Réviseurs d’entreprises SCRL and Mazars
• €500 per Board meeting;
Réviseurs d’entreprises SCRL for a period of three years,
• €400 per meeting of the other committees.
renewable once for three years. Mazars is represented by Mr
In addition, they receive an annual expense allowance of
Philippe Gossart and PKF by Ms Ria Verheyen.
€1,200.
Remuneration report
Attendance at meetings is a necessary requirement for
obtaining attendance fees.
Remuneration of members of the Board of Directors
Article 162 quinquies §2 of the Law of 21 March 1991 on the
Directors do not receive any remuneration based on results,
reform of certain economic public companies stipulates that
such as bonuses or long-term profit-sharing schemes; nor do
the General Meeting shall determine the remuneration of the
they receive any benefits in kind or pension-related benefits.
members of the Board of Directors.
No changes to the remuneration of non-executive members of
The General Meeting held on 31 May 2006 fixed the
the Board of Directors are envisaged.
principles, set out below, for determining the remuneration of
directors with the exception of the CEO, who does not receive
Directors’ gross remuneration (excluding expense allowance):
any remuneration or attendance fees as a member of the
• J-C. Fontinoy
€58,700;
Board of Directors and Committees.
• E. Bruyninckx
€23,866;
• P. Matthys
€19,575;
• L. Joris
€29,066;
• C. Gernay
€20,775;
• L. Schuermans
€15,837;
• M. Verdonck
€20,775;
• M. Vergeyle
€19,175;
fees are:
• J. Etienne
€17,175;
• €500 per Board meeting;
• V. Delwart
€4,878;
• €400 per Committee meeting in which he participates.
• K. Lauwers
€6,833;
In addition, he receives an annual expense allowance of
• R. Lorand
€5,533;
€2,400 and is provided with a company car.
• V. Leburton
€5,562;
• S. Schatteman
€4,028;
• D. Sterckx
€4,297;
The calculation of directors’ remuneration did not change in
2013.
The gross remuneration of the chairman is made up of a fixed
annual component which amounts to €39,200, and a variable
component consisting of attendance fees for meetings. These
corporate governance SNCB-Holding
117
Remuneration of members of the Executive Committee
management bonuses. Six of these criteria are evaluated at
The procedure followed for fixing the remuneration of
SNCB Group level, namely stabilisation of debt, growth in
members of the Executive Committee complies with article
passenger traffic, general customer satisfaction, personnel
161 ter, §4, paragraph 2 of the Law of 21 March 1991 on the
engagement, accidents at work and punctuality of trains.
reform of certain economic public companies:
Seven criteria are evaluated according to SNCB-Holding's
results, namely customer satisfaction with regard to facilities,
‘The Board of Directors shall, on the proposal of the
service and cleanliness of stations, safety in stations and
Appointments and Remuneration Committee, determine
trains, operating cash flow, changes in net indebtedness,
the remuneration and benefits granted to members of the
implementation of the investment budget, length of the
Executive Committee and senior executives. It shall monitor
external recruitment process and specific targets assigned to
these matters continuously.’
the CEO.
A twofold balance is struck: firstly between Group criteria
On the proposal of the Appointments and Remuneration
(40%) and SNCB-Holding criteria (60%), and secondly
Committee, on 28 January and 4 February 2005 the Board
between financial criteria (30%) and qualitative criteria (70%).
approved the administrative and monetary situation of the
executive officers and CEO of SNCB-Holding.
The remuneration system does not include any provisions
entitling the company to reclaim any variable remuneration
Remuneration of Mr Jannie HAEK, CEO
granted on the basis of incorrect financial information.
(until 13 November 2013)
The system of remuneration consists of:
The holiday allowance, annual bonus and any other allocations
and remuneration are determined in accordance with the
1. a fixed component, i.e.:
applicable regulations. The CEO receives no remuneration or
• the basic salary
attendance fees as a member of the Board of Directors and
• the management allocation granted monthly
Committees. He receives no remuneration for his mandates in
• payment for the office: monthly fixed sum
subsidiaries. He does not benefit from group insurance.
• allocation for the office: 0 to 100% of the basic annual
salary. The percentage granted is determined at the start of the mandate by the Appointments and Remuneration Committee, taking into account the degree of difficulty and social complexity of the office held.
2. management bonus: variable according to an evaluation
coefficient from 0 to 3. An annual evaluation is carried out
by the Appointments and Remuneration Committee. The
Appointments and Remuneration Committee meeting held
on 29 April 2011 defined 13 criteria for fixing the CEO’s
118
The CEO does not receive any remuneration in the form of
shares, share options or other rights to acquire shares.
The total gross remuneration, including benefits in kind
(company car), paid to the CEO in 2013 amounts to
€518,902.30. The management bonus for 2012 is included in
this amount.
The management bonus (included in the above amount) paid
in 2013 amounts to €101,268.52.
Insurance: for the CEO, €732.94 in premiums was paid in 2013
Remuneration of executive officers
for health care and accidents at work insurance.
The system of remuneration consists of:
Remuneration of Mr Jo Cornu, CEO
1. a fixed component, i.e.:
The agreement concluded with Mr Cornu as CEO of SNCB-
• the basic salary
Holding, and from 1 January 2014 as CEO of the new SNCB,
• the management allocation granted monthly
came into effect on 13 November 2013 and will expire on 12
• payment for the office: monthly fixed sum
November 2019. The remuneration it defines – fixed and the
• allocation for the office: 0 to 100% of the basic annual variable components, allowances and severance pay – are in
accordance with the decision taken by the Council of Ministers
regarding the remuneration of CEOs of public companies.
The agreement for Mr Cornu as CEO of SNCB ran from 13
November 2013 to 31 December 2013. Mr CORNU performed
this office without remuneration.
The fixed remuneration comes to €230,000 per year and is
paid in twelve monthly instalments of €19,166.67. This is an
indexed amount (health index November 2013).
The variable remuneration is a maximum of €60,000 gross
per year (health index November 2013). The exact amount
is determined by the Board of Directors on the basis of the
objectives that the Board specifies. The Board of Directors
reviews the targets once a year.
There are no benefits in kind.
For his services in 2013, Mr Cornu received a gross amount of
€31,624.01.
salary. The percentage granted is determined at the start of the mandate by the Appointments and Remuneration Committee on the CEO’s proposal, taking into account the degree of difficulty and social complexity of the office held;
2. management bonus: variable according to an evaluation
coefficient from 0 to 3. An annual evaluation is carried
out by the CEO and submitted to the Appointments and
Remuneration Committee. The assessment is based 50% on
collective criteria relating to the stabilisation of debt, growth
in passenger traffic, general customer satisfaction, staff
engagement, accidents at work, train punctuality, customer
satisfaction regarding the facilities, service and cleanliness
of stations, safety in stations and trains, the length of the
external recruitment process, the operating cash flow, changes
in net indebtedness, implementation of the investment
budget and, for the other 50%, on the achievement of
individual targets set in advance.
The remuneration system does not include any provisions
entitling the company to claim any variable remuneration
granted on the basis of incorrect financial information.
The variable component represents, on average, approximately
20% of the remuneration.
The holiday allowance, annual bonus and any other
allowances and payments are determined in accordance with
corporate governance SNCB-Holding
119
the applicable regulations. Contracted personnel benefit from
they will continue to be occupied in the grade of executive
group insurance and hospitalisation insurance.
officer until the expiry date stipulated in their mandate, with
continuation of salary.
The members of the Executive Committee do not receive any
remuneration in the form of shares, share options or other
The remuneration of the new CEO, Mr Jo Cornu, takes into
rights to acquire shares.
account the decision that the Government has taken in the
area of top salaries in public companies. The remuneration
The total gross amount, including benefits in kind (company
of the new executive officers will also take this decision into
car), paid to members of the Executive Committee other than
account.
the CEO in 2013, amounts to €1,505,858.27. Bonuses for
2012 are included in this amount. The 2013 performance
Mandates in subsidiaries and companies in which
bonuses will only be determined in 2014, and are therefore
SNCB-Holding has a participating interest
not included in this amount.
The Board Meeting held on 25 February 2005 resolved that
directorships held in subsidiaries by members of SNCB Group
The management bonus (included in the above amount) paid
in 2013 amounts in total to €273,329.12.
Insurance: for non-statutory Executive Officers, €100,100.62
was paid in premiums in 2013 for group insurance and
healthcare and accidents at work insurance.
Severance pay for members of the Executive Committee
If his employment contract is terminated, Mr Allé is entitled to
an amount equal to:
• 17 months’ remuneration if the contract is terminated during the first year of office;
• 14 months’ remuneration if the contract is terminated during the second year of office;
• 11 months’ remuneration if the contract is terminated during the third year of office;
• 8 months’ remuneration if the contract is terminated during the fourth or subsequent years of office.
For the other three members of the Executive Committee –
Mr Audenaert, Mr Bourlard and Mr Bovy – if their mandate as
executive officer is terminated for other than serious grounds,
120
personnel would not be remunerated.
This annual report is a limited edition printed on 100% recycled Cocoon Offset. An interactive PDF is available at www.sncb.be/corporate
Report on the quality of passenger service in 2013
In accordance with Regulation (EU) 1371/2007 concerning the rights and obligations of rail passengers, the SNCB published a report on the
quality of passenger service for the year 2013. This report can be consulted as an attachment at www.sncb.be/corporate.
Sustainability Report
A sustainability report that reflects the evolution of the railways with regards to
sustainable development (triple bottom line), is available on the site www.rail-durabilité.be
121
Colophon
SNCB / SNCB-Holding annual report 2013
Concept: Bruno Van Calster, Kathleen Van Vaerenbergh
Coordination: Bruno Van Calster, Léni Pou
Text: Bruno Van Calster, Louis Maraite, SNCB Finance
Layout: Kathleen Van Vaerenbergh
Coordination photos: Veerle Baele
Photos: Reporters, Denis Moinil
Printing: Antilope Printing
More information: Bruno Van Calster / bruno.vancalster@sncb.be / 02 528 20 53
Press: presse@sncb.be
Publisher: Michaël Vanloubbeeck, SNCB Corporate Communication & Public Affairs, Avenue de la Porte de Hal 40, 1060 Bruxelles
June 2014