INVESTOR MEETING - medias.sncf.com

INVESTOR MEETINGFRIDAY, 27 NOVEMBER 2020

SNCF GROUP PRESENTATION2 SNCF GROUP PRESENTATION2

SNCF GROUP STRATEGY: A CORE COMPONENT OF FRANCE’S GREEN RECOVERY PLANJEAN-PIERRE FARANDOU Chairman and CEO, SNCF Group

SNCF GROUP PRESENTATION3

IN AN UNPRECEDENTED CRISIS, RESILIENT SNCF OPERATIONS CONTINUED TO SERVE OUR NATION WIDE COMMUNITY


AN UNPRECEDENTED CRISIS…

PASSENGER BUSINESS BOUNCES BACK IMMEDIATELY AFTER FIRST LOCKDOWN

SNCF VOYAGEURS

On TGV– Hit a low during first lockdown, with ridership down 90%

in April/May 2020

– Rebounded in summer as 80% of passengers returned, though revenue was still down 40%

TER and Transilien– Mass transit business showed more resilience,

with revenue down only 10%-20% in H1

KEOLIS

– Revenue largely steady in H1 (-12%)

– Strong summer performance, with revenue unchanged from 2019

APRIL MAY JUNE JULY AUG SEPT APRIL MAY JUNE JULY/AUG SEPT

10.5 11.6 11.7 10.7 10.92

1.3 4.8 8.8 8.9 7.41

TGV(PAX million)

KEOLIS(Revenue in € billion)

0.677

0.383

0.782

0.562

0.793

0.559

1.528

1.393

0.767

0.721

Transilien, Intercités and TER(Revenue in € billion)

2019

2020

10.9

0.58

0.549

0.540

1.008

1.002

0.552

0.376

0.554

0.475

0.523

0.426

APRIL MAY JUNE JULY/AUG SEPT



INFRASTRUCTURE AND LOGISTICS OPERATIONS STAY STRONG

LOGISTICS

GEODIS Excellent resilience, with revenue steady in H1 (+0.3%) and up slightly over the summer (+1% in July/August)

FRETDown 20% in H1 and during the summer months

Resilience in mid-November, with business keeping pace with the economy, especially in the construction industry

SNCF RESEAU – SNCF G&C

Operations hit by falling track access fees payments from transport providers, but re-stabilized by early summer

2019

2020

SNCF Réseau - SNCF G&C(Revenue in € billion)

0.679

0.682

1.360

1.310

0.671

0.631

0.697

0.459

0.240

0.159

GEODIS(Revenue in € billion)

0.680

0.717

1.320

1.336

0.656

0.738

0.695

0.719

0.671

0.593

APRIL MAY JUNE JUILY/AUG SEPT

SNCF Fret (TFMM)(Revenue in € billion)

0.142

0.129

0.274

0.237

0.132

0.122

0.156

0.112

0.141

0.099





SERVING OUR NATIONWIDE COMMUNITY – AS ALWAYS

We used TGVs as hospital trains, transporting critically ill patients to less crowded hospitals and carrying healthcare workers to areas hit hardest by the virus.

Transilien, TER and KEOLIS cut service to a minimum, carrying only passengers with a legitimate need for transport, especially between home and work.

SNCF Réseau carried out priority maintenance and urgent works projects.

Freight trains carried food, fuel, chlorine and other products needed to keep strategic factories running.

GEODIS operated charters to meet urgent transport needs as normal air freight capacity was scaled back.

GEODIS also played a critical role in supplying protective gear, airlifting masks from China to France.


SNCF PLAYS A STRATEGIC ROLE IN FRANCE’S GREEN RECOVERY PLAN

“For the ecological transition to succeed, it is vital for both passenger and freight mobilities to be as low-carbon and eco-friendly as possible.” French Prime Minister Jean Castex


POWERING FRANCE’S GREEN RECOVERY

SNCF PLAYS A STRATEGIC ROLE IN FRANCE’S GREEN RECOVERY PLAN

2 REBOOT RAIL FREIGHT

Reduce the transport industry’s emissions

Boost employment, especially by renewed investment in network segments used for freight

4 PUT FINANCES BACK ON A SOUND AND SUSTAINABLE FOOTING

Get debt under control without slowing the pace of development

Aim for a sound financial structure and strong, sustainable solvency

Upgrade the network’s busiest segments

Improve service quality on network segments where regional trains account for 80% of traffic

Boost employment in the construction industry (+38,000 jobs/year)

MAKE THE RAIL NETWORK A PRIORITY1 FIGHT

REGIONAL INEQUALITY

Upgrade small local lines

Give France’s least populated regions more appeal

3

France Relance, the French government’s recovery plan, contains €4.7BN for the rail industry, including €4.05BN earmarked directly for SNCF


SNCF 2030 OUR STRATEGY Aim: Become a world-class champion of sustainable mobility for passengers and freight, with rail as our core business and France as our touchstone country


GROUP STRATEGY FOR THE NEXT 10 YEARS

SNCF 2030: CHAMPIONING SUSTAINABLE MOBILITY FOR PASSENGERS AND FREIGHT

LA LOGISTIQUE ET LE TRANSPORT DE MARCHANDISES

GEODIS Resilient player that rounds out other SNCF business lines

Proved its strategic value during the worst of the Covid-19 crisis

FRET Rail freight, grounded in a stable, profitable business model

LE FERROVIAIRE ET LE MASS TRANSIT EN FRANCE

Network upgrades: vital to successful operation of the rail system

SNCF Voyageurs transport providers: Voyages, TER, Transilien

KEOLIS: a powerful presence on French markets already open to competition (public service contracts)

SNCF Gares & Connexions

Industrial operations: Rolling stock and other services

LE FERROVIAIRE ET LE MASS TRANSIT EN FRANCE

SNCF Voyageurs transport providers in Europe: Eurostar, Thalys, Spain and more

KEOLIS: a global leader in mass transit

SYSTRA, AREP and more

Establish a strong position across all business lines

RAIL AND MASS TRANSIT IN FRANCE

RAIL AND MASS TRANSIT AROUND THE WORLD

LOGISTICS AND FREIGHT TRANSPORT



SNCF 2030 – DIVERSIFYING TO PROMOTE RESILIENCE

B2CPassengers

B2BShippers, carriers, etc.

B2G2CCountries, regions, urban communities and more

MANAGEMENT OF INFRASTRUCTURE AND ASSETS OPERATIONS

€4.4BNSNCF RÉSEAU

€1.5BNGARES&

CONNEXIONS

€1.9BNMATÉRIEL

€2.1BNSNCF RÉSEAU

€3.2BNTRANSILIEN

€5.0BNTER

€6.6BN KEOLIS

€8.2BN GEODIS

€8.8BNVOYAGE + SUBSIDIARIES

2019 revenues on a stand-alone basis (not as a contribution to the group total)



SNCF 2030 – DIVERSIFYING TO PROMOTE RESILIENCE

60,000employees outside France

33%of revenue generated on global markets

120Countries

N°8 WorldwideIn logistics

N°1 WorldwideIn driverless metros and in light rail/trams

93% 7%SUB-SAHARAN AFRICA

€40M

73%27%

NORTH AFRICA

€35M 40%

60%

MIDDLE EAST

€82M 12%75% 13%

SOUTH ASIA

€88M

95%5%

CENTRAL ASIA

€404M

95% 5%

SOUTHEAST ASIA

€176M

66%33%

1%

AUSTRALIA / OCEANIA

€904M

99.7% 0,3%

CENTRAL/EASTERN EUROPE

€237M

61%

38%

1%NORTHERN EUROPE

€1,011M

28%

70%1%1%

NORTH AMERICA

99.7% 0.3%

CENTRAL AMERICA

€237M

€2,565M

24%58%

18%

WESTERN EUROPE

€2,996M

97% 3%

SOUTH AMERICA

€174M

57%5%

37%1%

UNITED KINGDOM

€3,112M

BUSINESSES IN 2018

• Freight/goods logistics

• Mass transit

• Long-distance passenger transport

• Engineering consultancy (incl. Systra, consolidated on the equity method)

Revenue recorded by SNCF Group companies (controlling interest or not)



SNCF 2030: IMPROVING OPERATIONS WITH FIRST, H:00 & PRISME

Generate 5 million different updates for 5 million different customers every day

Invest €150M over 3 years to personalize passenger information

Aim for 90% of trains to depart on time – to the second

Meet this goal by simplifying processes and getting everyone engaged in improving performance

Use the PRISME programme to reduce safety incidents by 50% over 4 years

3 PRIORITIES – Transform information management – Deliver information more effectively – Produce information more effectively

4 PILLARS – Plan departures to the second, not to the minute– Use simulations to measure and anticipate plan design– Re-examine guidelines, especially for radio alerts– Train more staff in the field

6 LEVERS– Develop PROACTIVE habits– Set up RISK management systems– Rethink INTERFACES and manage them effectively– SIMPLIFY operating procedures and documentation– Support MANAGEMENT– Use innovative tools and EQUIPMENT and engage employees

BETTER PASSENGER INFORMATION WITH FIRST

ON-TIME DEPARTURES WITH H:00

ZERO ACCIDENTS WITH PRISME



MAKING SNCF 2030 A SUCCESS: BUILDING ON 4 POWERFUL ASSETS

Make major transformations, requiring dialogue with and extra support for employees

Do the critical work of attracting and retaining current and future employees by boosting training budgets and more, with a special focus on strategic new skills for the rail industry

Strengthen SNCF’s position as a vital player in every aspect of regional development economic, environmental, social, cultural and more

Put the ecological transition at the heart of our sustainability strategy

Make these assets central to the services we offer our customers and to our operational processes in short, put them at the heart of our business and the critical skills we need for the future

PEOPLE REGIONAL DEVELOPMENT ENVIRONMENT DIGITAL TECH /

INNOVATION


IMPACT OF THE PANDEMIC AND FINANCIAL ROADMAP LAURENT TREVISANI Chief Strategy and Finance Officer


TO MEET THIS GLOBAL CRISIS, WE TOOK IMMEDIATE ACTION



KEY FIGURES AT JUNE 30 AND IMPACT OF COVID-19

– Down -21% from H1 2019– Impact of January strikes: -€275M

– 1% of revenue (vs 16.2% in H1 2019)– Impact of January strikes: -€240M

€14.1BN

€69M

On revenue

-€3.9BN

– Expanded €1.8BN action plan adopted for 2020+€1,1BN

– Versus +€20M at June 30, 2019-€2,5BN

– Linked directly to fall in EBITDA-€2,8BN

– €25BN transferred to French State– Impact of negative free cash flow: -€2.5BN€38.3BN

EBITDA

REVENUE

ACTION PLAN: IMPACT ON FREE CASH FLOW

FREE CASH FLOW

GROSS PROFIT

NET INDEBTEDNESS

JUNE 2020H1 2020:

IMPACT OF COVID

On EBITDA

-€3.2BN



CRISIS MITIGATION PLAN ROLLED OUT IN APRIL IN RESPONSE TO FRANCE’S FIRST LOCKDOWN

– €147M reduction in payroll costs (includes short-time working)

– €207M reduction in purchasing and expenses via:- postponement/adjustment of costs on some projects- reduction in G&A (consulting, seminars, etc.)

– Postponement of costs: 2020 CVAE, social charges– Activation of cash flow levers including securitization

of receivables– Optimizing working capital requirement

– Adjustments to investments and postponement of non-essential projects

2020 TARGET

AT JUNE 30, 2020

FREE CASH FLOW

+€1.8BN

COSTS

+€350M

CASH POSITION

+€600M

INVESTMENT

+€130M

+€1.1BN


FRENCH STATE’S STIMULUS PLAN RAIL PACKAGE


FRENCH STATE’S STIMULUS PLAN RAIL PACKAGE

A HISTORIC SUPPORT PACKAGE FOR THE FRENCH RAIL INDUSTRY

Budget credits Capital increase

RAIL INDUSTRY RECOVERY PLAN – GOALSBREAKDOWN OF RAIL PACKAGE

– €250M to upgrade the rail network

– €300M for small regional lines

– €100M to reintroduce service on two overnight train lines

– Of which €3.8BN to secure planned investment programmes at SNCF Réseau

– €250% to make 14 small lines a priority within the core network

“The affirmation of SNCF’s ratings reflects our assessment that the reduction in revenues and EBITDA, stemming from reduced passenger numbers due to the coronavirus, has been to some extent offset by the support package of EUR 4.7 billion from the French government”

“The amount and mechanism of the support reinforce our view of an extremely high likelihood of extraordinary government support, and helps the group pursue the deleveraging targets set by the rail reform implemented on Jan. 1, 2020”

HIGH MARKS FROM RATING AGENCIES

10/23/202010/21/2020

€0.6BN €4.05BN

Fonds de concours

Budget earmarks 2021-2028 Capital increase

Exceptional dividend

Transport Organizing Authorities

€4.7BN


NEW STRATEGY, SAME FINANCIAL GOALS



STRONG POSITIONS IN FRANCE: FOCUS ON MARKET LIBERALIZATION

IMPACT DU COVID SUR L’OUVERTURE À LA CONCURRENCE

HIGH-SPEED OPERATORS – PROCESS SLOWS– Arrival of competitors (Trenitalia, Flixtrain, Renfe)

delayed by 6-12 months– Trenitalia’s Paris-Lyon-Milan service delayed

by several months– Renfe set to begin operating Lyon-Marseille line

after December 2021

INTERCITÉS– For the Nantes-Bordeaux & Nantes-Lyon routes,

tender process withdrawn for new entrants

UN CALENDRIER PROGRESSIF D’OUVERTURE

DECEMBER 2019The French State and regional governments may issue calls for tender as existing public transport contracts with TER and Intercités expire– 2020: Brittany signs new 10-year agreement with SNCF– 2020: SUD Provence-Alpes-Côte d’Azur region issues

call for tender. Grand-Est, Hauts-de-France, Pays de la Loire & Paris region plan to follow suit

DECEMBER 2020Open access begins for high-speed and conventional transport providers not subject to regional public transport contracts

DECEMBER 2023The French State and regional governments must issue calls for tender as existing public transport contracts with TER and Intercités expire

DECEMBER 2039Special conditions for Transilien (Paris Region commuter rail): service will open up to competition on a line-by-line basis between 2023 and 2039

TIMELIME FOR GRADUAL OPENING OF MARKETS Overview of official calendar

COVID’S IMPACT ON LIBERALIZATION



SELECTIVE GROWTH OUTSIDE RAIL AND OUTSIDE FRANCE

– SNCF is already diversified

– We must continue to diversify: logistics and other non-core business lines act as financial shock absorbers, cushioning the impact of economic cycles

– Growing our international markets is not an end in itself. It’s a decision to be made line by line, contract by contract, as opportunities present themselves

– We may opt to do business in high-growth markets and pull out of markets with low margins or fierce competition

– This is consistent with SNCF’s corporate mission and essential to its success

– This principle calls for continuous improvement in our operational and financial performance and continued across-the-board productivity efforts

– Our choices should enable us to:- Maintain a sustainable financial

structure

- Optimize dividends to secure investments in the rail system

- Fund profitable investments and keep the Group on track

– SNCF Group cannot take on debt to fund growth in areas outside our core rail business

– We will self-finance on an acceptable timeline, e.g., by developing partnerships with third parties that could provide funding

GUIDING PRINCIPLE: RISK DIVERSIFICATION

GUIDING PRINCIPLE: PRAGMATIC GROWTH IN EUROPE

GUIDING PRINCIPLE: PROFITABILITY ACROSSALL BUSINESS LINES

GUIDING PRINCIPLE: SELF-FINANCING FOR NON-CORE INVESTMENTS 21 3 4


Total for 2020-2028

2017 2020 20282018 2019


MAKING PROFITABLE PERFORMANCE A CORE PRIORITY FOR SNCF: HOW WE PLAN TO CUT COSTS BY 2028

GROUP COMMITMENTS EXCLUDING COVID-19 MITIGATION MEASURES (OPEX & CAPEX)

TARGET

ACTUAL

2017-2019 TARGET

€1.765M

ACTUAL FIGURE IN 2017-2019

€1.916M

€651M

€830M

€580M

€530M

€534M

€557M

€504M €4.2BN

SNCF’s financial roadmap calls for productivity gains of €4.2BN between 2020 and 2028.

This target for 2020-2028 is €0.8BN higher than in 2018 – despite additional operating costs arising directly from Covid-19 (disinfecting trainsets, etc.).



STRATEGIES FOR ADDITIONAL SAVING AS THE COVID CRISIS CONTINUES

Selling real estate assetsTrimming non-strategic properties from the Group’s balance sheet

Extracting value from real-estate assetsApplying strategies to monetize certain Group assets

Optimizing working capital requirements

Cutting operating costsReviewing support functions and outside procurement in particular

Adjusting non-essential investmentsCareful management

Supporting Green Speed, a tie-up between Eurostar & ThalysCustomers benefit from an expanded network with more agility

Expanding our low-cost OUIGO offerExpanding OUIGO makes the Group more competitive and more resilient to market liberalization

Optimizing the Voyages SNCF fleetIncreasing the productivity of each trainset allows us to shrink our fleet

Digitizing ticket sales, maintenance, and operationsThis is paired with a plan to streamline outside expenses

HOW WE’RE ADAPTING CUTTING COSTS AND OPTIMIZING CASH


Defend SNCF Group rating by ensuring that ratios are in keeping with SA status– CFL > 0 from 2022– FFO / net debt ≥ 10.0% from 2022– Net debt / EBITDA ≤ 6.0x from 2023

Limit structural subordination of debt held by SNCF SA

Keep liquidity high enough (cash position + RCF) to ensure – at all times – a ratio over 1.2x (sources/uses)

Ensure prudent cover for all financial risk (forex, interest rates, inflation, etc.)

4

Have financing capacity at optimum market conditions and lowest cost

21 53


FINANCIAL COMMITMENTS RENEWED


SOCIAL IMPACT AND SUSTAINABLE MOBILITIES AT SNCF GROUP MIKAËL LEMARCHANDDirector of Social Engagement and the Ecological Transitio

Heads SNCF’s corporate strategy project


GARES & CONNEXIONS

VOYAGEURS

FRET-TFMM

SOCIAL IMPACT AND SUSTAINABLE MOBILITIES AT SNCF GROUP

IMPROVING OUR GROUP’S SOCIAL IMPACT IS THE CORE OF OUR BUSINESS MODEL

TRENDS FAVOURABLE TO SNCF’S BUSINESS MODEL

Stricter legislation and regulations

More demanding public opinion

Rising expectations among our clients (local authorities, passengers, shippers, etc.)

More detailed specifications for suppliers and partners

Employees and labour markets

POSITIVE IMPACT ON OUR CORPORATE PROJECT STRATEGY’S DRIVERS

Identity: align our business model more closely with our mission

Competition: boost our competitive edge (in calls for tender, freight contracts, improved passenger experience/satisfaction)

Growth: win market share

Planet: improve the environmental footprint of each transport mode

People: boost employee engagement and our attractiveness as an employer

Regional development: strengthen our regional presence to promote concrete, sustainable improvements in the communities we serve

INTEGRATED SNCF GROUP



RAIL IS COMPETITIVE FOR ITS CARBON FOOTPRINT BUT THAT’S NOT ALL

10% RAIL’S SHARE OF TOTAL PASSENGER TRANSPORT

RAIL’S SHARE OF THE SECTOR’S CO2 EMISSIONS0.6%

2.5% RAIL’S SHARE OF THE SECTOR’S PARTICULATE MATTER EMISSIONS

1.6% RAIL’S SHARE OF THE SECTOR’S NITROGEN OXIDE EMISSIONS

MORE EFFICIENT THAN PLANES

23XMORE EFFICIENT THAN PRIVATE CARS

31X6XMORE EFFICIENT THAN BUSES

OUTSTANDING CARBON FOOTPRINT…

Trains account for 10% of passenger transport but only 0.6% of the sector’s emissions, making rail a powerful asset for the ecological transition

… AND MANY OTHER ADVANTAGES:

2.5% of the passenger transport sector’s particulate emissions, which cause 48,000 premature deaths a year

Only 1.6% of sector emissions of nitrogen oxide, compared with 80% for cars

Along with air travel, rail is the safest mode of transport 27 times safer than cars.

6 million people are exposed to noise from rail networks, compared to 52 million for cars

And the rail system has a very small footprint (87,000 ha for rail vs 1.2M ha for cars)

Safety

Nitrogen oxide

Noise

Particulatematter



INTEGRATION AND DIVERSIFICATION position us to meet our ambitious carbon reduction goals

We are fully committed to France’s National Low-Carbon Strategy and its targets: reduce emissions to 30% of 2015 levels by 2030 and achieve carbon neutrality by 2050.

WITH OUR KNOWLEDGE OF THE RAIL SYSTEM AND ITS OPERATING ASSETS, WE CAN (i) steer research programmes on hybrid trains, frugal

electrification and more

(ii) support the design process for new infrastructures, stations and maintenance centres

(iii) optimize the rail system’s energy intensity immediately, using green driving and parking practices

And with our strong presence in France’s regions, we can share SNCF’s expertise with local officials, support communities as they make the ecological transition and develop low-carbon strategies. This includes choosing new TER regional rolling stock and using our real estate portfolio to develop renewable energies.

ACHIEVE CARBON NEUTRALITY GROUP-WIDE2050

REDUCE EMISSIONS TO 30% BELOW 2015 LEVELS2030

DEVELOP NEW CORPORATE STRATEGY2020

OUR ROLE IN FRANCE’S NATIONAL LOW-CARBON STRATEGY



WHY RAIL IS THE IDEAL MOBILITY SOLUTION FOR SHORT AND MEDIUM DISTANCE JOURNEYS

MEDIUM/LONG DISTANCE

Comparison of common travel modes

ENERGY FOOTPRINT

kep (kg equivalent oil)

CO2 FOOTPRINT

KCO2 (kg of CO2 equivalent)

241.5

170.6

145.5

144.6

136.2

58.5

11.8

3.2

75.7

54

46.5

45.3

43.6

18.3

6.8

2.7

PLANE – Regional link

AVG CAR

PLANE – Short haul

PLANE – Shuttle

AVG MOTORCYCLE

COACH

MAINLINE TRAINS

TGV HIGH-SPEED RAIL

SUR LA COURTE DISTANCESHORT DISTANCE

Comparison of common travel modes

ENERGY FOOTPRINT

koe (kg oil equivalent)

CO2 FOOTPRINT

KCO2 (kg of CO2 equivalent)

221.45

111.8

110.68

50.31

25.11

5.5

3.35

3.26

2.66

0

0

70.00

35.26

35.43

15.73

18.06

10.83

6.62

6.36

5.16

0

0

AVG CAR

AVG BUS

AVG MOTORCYCLE

COACH

TER

TRANSILIEN

RER

MÉTRO

TRAM

BY FOOT

BICYCLE

ADEME Eco-comparateur


COMING SOON: TECHNICAL SOLUTIONS FOR GREENER RAIL TRAVEL CAROLE DESNOST Director Innovation SNCF


2021 2022 2023 2024 2025 2026

COMING SOON – TECHNICAL SOLUTIONS FOR GREENER RAIL TRAVEL

REVOLUTIONARY NEW PROPULSION TECHNOLOGIES

TER + B100 FUEL 2021 - 1st train in operation

BATTERY-POWERED TER MID 2023 - 1st train in operation

HYBRID TER Q4 2022 - 1st train in operation

HYDROGEN TER MID 2025 - 1st train in operation

HYBRID TER 1st test

BATTERY-POWERED TER 1st test

HYDROGEN TRAIN 1st test


TAKEAWAYS

This solution makes existing rolling stock greener without additional infrastructure

– Modelling confirms our energy savings targets on flat routes with frequent stops

– Benefits increase when we use B100 biofuel

– A lithium-ion battery storage prototype is now being tested

– Energy is produced locally, in France, and does not compete with food resources

NEXT STEPS

2021: Convert the first trainset to hybrid operation and carry out dynamic testing on a closed circuit and on the rail network

COMING SOON — TECHNICAL SOLUTIONS FOR GREENER RAIL TRAVEL

HYBRID TRAINS WITH BIOFUEL

REPLACE HALF OF OUR DIESEL ENGINES WITH BATTERIESAIM: CUT ENERGY COSTS BY 20% AND MAINTENANCE COSTS BY 30%


TAKEAWAYS

– Batteries are added to replace diesel engines

– Upgrade of the traction and train control software and the driver interface

– Range is 100 km in 100% battery mode

– Self-powered trains allow frugal electrification, cutting infrastructure costs significantly

NEXT STEPS

– 2020: Signature of 5 agreements with French regions

– 2020: Signature of contract with Bombardier

– 2021: Design battery train and carry out proof of concept testing

– 2022: Convert trainsets and conduct tests

COMING SOON — TECHNICAL SOLUTIONS FOR GREENER RAIL TRAVEL

BATTERY-POWERED TRAIN (HIGH-CAPACITY BEMU)

REPLACE ALL DIESEL ENGINES WITH BATTERIESAIM: ACQUIRE 100% BATTERY-POWERED, DUAL-MODE HIGH-CAPACITY TRAINSETS (AGCs)

0100 EMISSIONS

KMS RANGE


COMING SOON —TECHNICAL SOLUTIONS FOR GREENER RAIL TRAVEL

FRUGAL ELECTRIFICATION

CUT INFRASTRUCTURE COSTS BY OVER 50%CUT TOTAL LIFE-CYCLE COSTS BY OVER 20%

Cost of infrastructure project €30M vs €150M (Aix-Marseille)

SAVE ON INFRASTRUCTURE INVESTMENTS

– Electrify easy-to-access areas

– Run dual mode trains or hybrids with batteries

Cost of engineering works (in € thousands)

2,500 –

2,000 –

1,500 –

1,000 –

500 –

0 –

Departure station

Tunn

el

Viad

ucPo

nt-r

oute

Pont

-rou

te

Pont

-rou

te

Pont

-rou

tePo

nt-r

ail

Tunn

el

Tran

chée

Tunn

el

Arrival station

1. Interoperable electrification

5. Substitution from 3kV to 1.5kV

2. Last Mile

3. Smart Elec.

6. Maintenance & repairs

Normal electrification

Neutra

l zone

4. Service tracks


TAKEAWAYS

Makes existing rolling stock greener without additional infrastructure

– Deploy Dual-Mode Régiolis Z / H2 – 25 kV dual-current / 1,500 V – 4 carriages

– Removable of diesel engine and diesel tanks

– Incorporate a fuel cell system and roof-mounted H2 tanks (160 kg)


HYDROGEN TER

REPLACE ALL DIESEL ENGINES WITH FUEL CELLS

H2

AIM: PRODUCE LONG-RANGE RÉGIOLIS H2 TRAINSETS

NEXT STEPS

– Preliminary technical studies are now complete

– In December 2020, French regions sign agreements to order 14 trainsets from Alstom

– Testing is set for 2023, with commercial operation planned for 2025

400 - 600KMS RANGE

1500 VDC 25 kVAC

H2

Energy management


HYBRID TER + B100 BATTERY-POWERED TRAIN HYDROGEN TER

PROJECT COST (1 TRAINSET) FOR HYBRID TER = €16.85M

Q4 2022: PROTOTYPE ENTERS COMMERCIAL SERVICE

PROJECT COST (5 TRAINSETS) FOR BATTERY-POWERED TRAIN = €38.4M

MID 2023: COMMERCIAL SERVICE BEGINS

PROJECT COST (14 TRAINSETS) FOR HYDROGEN TER = €260.3M

MID 2025: COMMERCIAL SERVICE BEGINS


A WIDE CHOICE OF SOLUTIONS FOR GREENER RAIL

Working with French regions to roll out the right carbon-reduction solutions for their needs

€3.8M €6M€3.8M €5.5M €8M

€ millions € millions € millions

0.25 1.2

86

52

52

52

3.0

3.0 5.37

3.0 5.37

5.37

5.37

5.37

€9.3M


TGV M: CUTTING-EDGE TECHNOLOGY TO SERVE PASSENGERS AND ADVANCE THE ECOLOGICAL TRANSITION PIERRE MATUCHETDirector, TGV Operations, Services and Information Systems


SUSTAINABLE MOBILITIES OF TOMORROW

INNOVATIVE PARTNERSHIP WITH ALSTOM BREAKS NEW GROUND

100% French design

SNCF and Alstom have worked together since September 2016

18 months of work and research, over 1,000 innovations and 50 draft patents

2,000 people helped design the TGV M, with 10 of Alstom’s 12 French sites contributing

Scale-up and approvals are now underway

First trainsets are set to run for the 2024 Olympic Games



TGV M: MAJOR INNOVATIONS

100% French, next-generation high-speed train

M for:- Modularity- Energy Management- Predictive Maintenance

Advantages: the TGV M is roomier, more modern, more eco-friendly, cheaper to maintain and more.

20% MORE PASSENGERSOR 740 PASSENGERS PER TRAINSET

30% REDUCTION IN MAINTENANCE COSTS

97%RECYCLABLE MATERIALSELIMINATE 32% OF C02 EMISSIONS



HISTORIC ORDER

Largest single order for TGV trainsets ever placed

The TGV M delivers many new benefits, costs less and sharpens our competitive edge

SNCF’s €3BN investment was fully self-financed

Designed with and for customers

100 TGV M TRAINSETS

ORDERED

€25M UNIT COST BEFORE

OPTIONS

€3BN FINANCED

BY SNCF


OUR STRATEGY FOR LIQUIDITY AND SUSTAINABLE FINANCINGGUILLAUME HINTZY Director, Finance and Treasury Division, SNCF Group


SNCF GROUP AND GREEN FINANCING


We’re expanding the scope of our green financial products



2029

2030

2031

2034

2047

850

1,000

900

1,500

1,350

10050

1,250

TIMELINE (€ MILLION)

High marks from non-financial ratings agencies– VIGEO EIRIS rates SNCF 72/100 (#1 out of 22)

and ECOVADIS rates SNCF 79/100

Leading green bond issuer– Outstanding bonds total €7.0BN, or 29% of financing

raised by SNCF Group in 2016-2019

– #3 in France and #5 in Europe and worldwide (excluding sovereign, supra and bank bonds)

– World’s first rail infrastructure manager to issue green bonds

– World’s first 100-year green bonds in any currency or issuer class

Our sustainability-linked RCF – €3.5BN stand-by line of credit from 20 banks in Europe,

the US and Asia

– 3 criteria: carbon footprint, renewable energies, responsible procurement

2036

2119

2120

TheGreen BondPrinciples

ClimateBondCertified

Environmental

SNCF Reseau

Impact report of the yearWinnerAwards2018

Green BondFinance



IMPACT OF GREEN BOND ISSUES FROM 2016 TO 2019

CARBON IMPACT (€BN)

9,700 PEPOLE

Equal to the carbon footprint of 9,700 people in France over 40 years

CO24.7

1 BILLION EUROS

Invested in Green Bonds dedicated to infrastructure upgrades

BILLIONS TONS

of CO2 emissions avoidedover 40 years

CARBON IMPACT

Network upgrades

CARBONE IMPACT

Network expansion

CARBONE IMPACT

TOTAL IMPACT

2016

710

2.7

176

0.2

2.9

2017

1,508

5.7

226

0.2

5.9

2018

-

-

-

-

-

2019

3,181

17.11

-

-

17.1

€M

TCO2eq M

M€

TCO2eq M

TCO2eq M

Result: a total 25.9 million tons of CO2 eq saved thanks to SNCF Group Green Bonds (equal to the carbon footprint of 53,500 French people).

OTHER IMPACTS

Rails recycled and reused

Ballast reused

Wood reused as energy source

2016

96.5

30-50

78,300

2017

100

30-50

67,800

2018

-

-

-

2019

100

30-50

65,000

%

%

T


RÉSEAU’S ASSET BASE DEEPENS– Addition of UIC-5 and UIC-6– New envelope of €250M-€350M/year– Still applies exclusively to electrified network

PROGRAMME EXPANDS TO VOYAGEURS ACTIVITIES– Covers all investment, procurement and upgrade costs

for our zero-direct-emission TGV fleet– Average envelope of 350M/year, including replacement

of conventional TGV fleets with TGV M and Euro-duplex trains

SNCF is be the world’s first mobility group to develop a green bond programme for both infrastructure and rolling stock

BROADER, DEEPER BASE

ENVELOPE / YEAR

TOTAL ENVELOPE

GREEN BOND PROGRAMME: WHAT’S NEW IN 2021

VOYAGEURS

VOYAGES TER + TRANSILIEN


EXPANDING OUR GREEN BOND PROGRAMME

€1.5BN €0.35BN

€2-2.5BN

€0.15BN

+ €0.3BN


2020 OVERVIEW AND 2021 FINANCING STRATEGY



KEY FIGURES FOR 2020 AND GROUP LIQUIDITY

2023

2025

2027

2029

2031

2120

2024

2026

2028

2030

2040

2051

1,500 1,250

1,000

2,000

50

250

50

USDCHFEUR GreenEUR

TIMELINE (€BN)

Since introducing its EMTN programme in March 2020, SNCF SA has launched 5 bond issues representing a total of €6.3BN

Comfortable liquidity at year end (figures at 19/11/2020):

The group also has two short-term financing programmes €3BN et €5BN, 25% used).

10 years, €1,250M

20 years, €1,000M

30 years, €2,000M

3 years, $1,250M

10 years, CHF250M

Various private placements including one 100-year issue

Cash and equivalents

Bank credit line (RCF)

At group level

100% available

Liquidity ratio:

€ $€ CHF€ PP

€5.5BN

€3.5BN

1.5X Sources / Uses


BNIN DEBTISSUED AS GREEN BONDS€2.0

80%


2021 FINANCING STRATEGY

2021 financing needs: €4.0BN -€€5.0BN

We expect to raise €2.0BN with green bonds, through public offerings and/or private placements

Key components of our financing strategy:

– Average maturity over 10 years

– 80% public offerings and 20% private placements

– Public offerings in our primary currencies (€, $, £, CHF)

– Private placements and tap issues in all currencies ($, YEN, CAD, AUD, NOK, SEK, etc.) and private placements in fixed-rate bonds, FRNs, ZC bonds, CMSs, inflation-indexed bond, etc.

BNFINANCING NEEDED

PUBLIC OFFERINGS

€4.0 5.0

THANK YOU

INVESTOR MEETING - medias.sncf.com

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