Transdev public
transport company
Executive summary
2022 Annual Public Report
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Public transport operator, the Transdev group, a subsidiary of Caisse des Dépôts et
Consignations, is present in 17 countries. It employs 83,000 people and its turnover was €6.8
billion in 2020. The Covid crisis meant the company carried only 6.2 million passengers per
day on average in 2020, compared to 11 million in 2019.
Transdev group activities and organisation
Source: Transdev, Court of Accounts restatement.
Transdev’s quick adjustment to the Covid crisis
Although it had not anticipated the risk of a pandemic, Transdev group was able to put
an effective crisis management organisation in place from the outset of the health crisis.
Worldwide, in accordance with various authorities’ requests, urban transport services were
maintained at 60% of their pre-crisis level whereas, during the spring 2020 lockdown,
passenger numbers were at an average of 10% of their normal level. In France, following
government announcements at the beginning of 2020, working from home became the norm
for some employees. The majority of drivers continued working. Transdev helped protect the
health of passengers and drivers with the daily disinfection of vehicles and the adaptation of
spaces to encourage distancing. Innovative digitalisation solutions for passengers and
employees were also rolled out. Across the group as a whole, 4% of employees were
reportedly diagnosed with Covid-19 in 2020.
Exceptional human resources measures were put in place, including the use of furlough
schemes and a freeze on salaries and recruitment. Transdev group received subsidies of
€114.2 million for furlough mechanisms and benefitted from €253.9 million in deferred social
security contributions. Despite this aid, 2020 saw a 1.4% drop in the group’s workforce.
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A significant financial impact on income, but increased cash flow, thanks
in particular to governments’ intervention
The group’s turnover fell sharply in 2020 (down €660 million compared to 2019, i.e. a 9%
drop). Transdev assesses the impact of the Covid crisis on its operating income at €200 million
in 2020, almost
half of which relates to France (down €97.1 million). The profitability of
international businesses also declined in other European countries (down €77.3 million) and
the rest of the world (down €25.6 million).
The subsidiaries within each country have had to adapt to the various government
measures and the aid granted. They also held discussions with each transport authority to take
the expected level of service into consideration, and negotiate financial compensation owing
to loss of passenger revenue and additional costs related to health measures.
As a result of credit facilities granted by central governments (€385.5 million), and the
disposals of subsidiaries decided upon mainly before Covid struck, Transdev group improved
its cash position in 2020 (€4
85.3 million at year-end, i.e. up 56% compared to 2019). The
group’s net financial debt was reduced to €1,305.9 million in 2020 (compared to €1,864.2
million in 2019, i.e. a decrease of 30%).
Impacts of the health crisis on Transdev
Source: Transdev, Court of Accounts restatement.
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The medium-
term consequences of the Covid crisis on Transdev’s
business
Transdev’s
strategy, reviewed around four priorities (financial discipline, teams and
partnerships, attention to customer needs and contract profitability), has proven to be a match
for challenges posed by the Covid crisis. The crisis has consequently accelerated the process
of refocusing the group by business line (Transdev giving priority to transport businesses at
the request of the authorities) and by country.
As public transport use has still not returned to its pre-crisis level in most countries where
Transdev operates, the company faces great uncertainty about the medium-term development
of its business. Lower passenger numbers leads to a drop in operating revenue and changes
the balance of contracts. This situation should lead the group to adapt service levels and
renegotiate contracts with transport authorities, taking greater account of external factors, such
as pandemics. Transdev must also propose a new, more integrated offering taking into account
different mobility options, to bring users back to public transport and to differentiate itself from
the competition.
Recommendation
At the end of its investigation, the Court issues the following recommendation to
Transdev group:/
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in new contracts, pay particular attention to external factors causing changes in
passenger numbers to limit the economic risks.