Annual Report 2011.

Each day in 2011, SBB took 977,000 passengers to their destinations – getting them there on time, safely and reliably. This was 2.7 percent more than in 2010. SBB has posted excellent figures for punctuality and safety, and its customers have also given it a good rating. Despite a marked decline in net income from passenger services and dwindling demand for domestic freight, consolidated net income amounts to a gratifying CHF 338.7 million. SBB was able to finance its commercial investments mainly from its own resources. The Group posted nega-tive free cash flow of CHF 5.2 million. At just under CHF 8 billion, however, interest-bearing debt remains high. Moreover, SBB will enhance its product offering and services, and gear them even more closely to customers’ needs. At the same time, SBB will further improve its efficiency in the years to come.

In 2011, 977,000 customers used SBB’s services every day – 2.7 percent (26,000) more than in 2010. Passengers travelled 17,749 million kilometres in SBB trains (+1.3 percent). SBB increased its market share versus other transport modes to 25.4 percent (2010: 25.2 percent). In the commuter segment, the figure was even higher at 34.1 per-cent (2010: 32.7 percent).

Freight business stagnated against the background of a generally contracting domestic market and a strong Swiss franc. The international freight business was transferred to the newly formed SBB Cargo International. SBB Cargo and SBB Cargo International transported 195,000 tonnes of freight per day in 2011 (2010: 200,000), and net tonne-kilometres totalled 12,346 million (2010: 13,111 million). SBB makes more intensive use of its rail network than any other railway in the world. Train-path kilometres travelled increased in 2011 by 1.0 percent to 165.1 million. Last year, each kilometre of the SBB network was used by an average of 96.3 trains a day (2010: 95.4). In 2011, 89.8 percent of SBB passengers reached their destinations on time, i.e. with a delay of no more than three minutes (2010: 87 percent). In 97.7 percent of all cases, passengers made their connections (2010: 97.2 percent). These are the best figures ever recorded. In the domestic freight segment, 98.4 percent of trains arrived on time or less than 30 minutes late – roughly the same as last year (98.2 percent).

Customers remain satisfied with SBB’s services. The aspects that received higher rat-ings than in 2010 were passenger information, product offering/services, courtesy and professionalism of staff, schedules and punctuality. Two aspects were awarded slightly lower scores: value for money, and the passengers’ sense of well-being on board trains. Customers were also satisfied with the standard of service in the freight and infrastructure segments as well as with the services on offer at stations. SBB had to announce a number of unpopular decisions in 2011 and was not always able to communicate the related customer benefits in a transparent way. Consequently, SBB is all the more grateful to customers for the loyalty they continued to show in 2011.

SBB was spared any major train accidents in 2011 resulting in deaths or seriously in-jured passengers. This was due above all to the comprehensive safety management measures taken. SBB was fortunate, however, in that three serious incidents – a fire in the Simplon tunnel and side-on collisions at Olten and Döttingen – did not have more severe consequences. The number of work accidents decreased again. However, this encouraging outcome in 2011 was overshadowed by a fatal work accident at the beginning of March 2012.

Good result for the year despite sharp fall in profit from passenger services.

At CHF 338.7 million, SBB’s consolidated net income for 2011 was better than in 2010 (CHF 298.3 million). Targeted investment and debt management, efficiency enhance-ments in the Infrastructure, Passenger and Freight (SBB Cargo) divisions and the transfer of international freight services to a new company all had beneficial effects.

The Passenger Division’s segment result of CHF 213.9 million was well below that posted for 2010 (CHF 292.6 million). For one thing, demand for transport services de-creased; for another, track charges were higher than in 2010. As train-path fees are being raised again in 2013 and 2017, the Passenger Division’s financial result will remain under heavy pressure and continuing efforts will have to be made to increase efficiency. The segment result for SBB's Infrastructure Division before deduction of compensation payments was CHF 182.5 million (2010: CHF 173.5 million). Of this total, CHF 150 million was paid to Infrastructure while the remainder went towards the restructuring of the SBB pension fund in the form of interest and amortisation payments. SBB Cargo improved its segment result to CHF -45.9 million (2010: -64.0 million). Infrastructure posted a segment result of CHF 72.4 million in 2011 (2010: CHF 4.8 million). In 2011, SBB generated a free cash flow of CHF -5,2 million and interest-bearing debt now amounts to CHF 7.965 billion (2010: 8.052 billion).

SBB is continuing to expand its service offering and its capacity, and is gearing these consistently to customers’ needs. In 2012 the first of the new double-deck trains will be deployed on regional services, and 2014 will see the rollout of the first 400-metre dou-ble-deck trains designed for long-distance services. These offer 40 percent more seats than the trains currently in service. At the same time, SBB is improving its on-board ser-vices. To meet customer needs, SBB is investing around a billion francs each year in new, comfortable and efficient rolling stock. The opening of the Zurich cross-city link (2014), the Gotthard base tunnel (2016) and the Ceneri base tunnel (2019), as well as the inauguration of the Mendrisio-Varese link line (2014) and the Cornavin-Annemasse line in the Geneva area (probably 2017) will facilitate big increases in both long-distance and regional capacity. SBB will also optimize access to its stations. In 2012, the company plans to place third-party orders totalling about CHF 4 billion, much of which will accrue to the Swiss economy.

More big challenges ahead for an enterprise in transformation.

In recent years SBB has greatly improved its operational management and business transparency. The rail network’s maintenance backlog and the restructuring needs of the freight business have been demonstrated, and the individual business units' profitability and the associated financial challenges are known. The task now is to reduce the backlog of network maintenance work and, by agreement with the federal government and the customers, to streamline the existing domestic freight network. SBB will increase efficiency and productivity by two percent a year in the administrative area, at SBB Cargo and in the Passenger Division, its aim being to maintain Switzerland’s efficient rail system in good condition and to develop it further for the benefit of the customers. These strenuous efforts will to a large extent enable it to absorb the higher track charges prescribed by the government as well as other cost increases. Debt management will be tightened up and the scarce financial resources will be deployed in areas offering the greatest customer benefits and the highest potential returns.

Some of SBB’s biggest challenges can only be resolved together with the federal and cantonal governments. The FABI (“financing and expanding rail infrastructure”) bill has been successfully launched. Here it is crucial that the leading political bodies and the cantons achieve a consensus. Otherwise the bill could be doomed to failure, which would deal a serious blow to the quality of public transport in Switzerland. For SBB this could mean that funds for the maintenance of the existing infrastructure will be lacking in the medium term. Negotiations between SBB and the federal government concerning the 2013-2016 service level agreement are also progressing well. There is a maintenance backlog in the network, and bottlenecks need to be eased in order to preserve the rail system’s efficiency or indeed to increase it in specific areas. If the attractiveness of rail freight and of Switzerland as a transport hub is to be maintained, the planned Limmattal and Basel North gateways will have to be swiftly implemented.

An attractive employer.

SBB’s impressive scorecard for 2011 can be attributed to its 28,586 (2010: 28,143) em-ployees. 3,273 of these people worked part-time, and 1,297 were apprentices. The Board of Directors and Management Board thank all these staff most sincerely for their efforts in the past year. As a token of its gratitude for the key role they have played in boosting efficiency, SBB is raising its pension fund contributions by two percent. Thanks to a federal contribution of CHF 1.148 billion, the reserve ratio of the SBB pension fund rose to 96 percent in 2011.

Remark for members of the media:

On our webpage www.sbb.ch/balance_media_conference-quotes you will find quotes from our Chairman of the Board of Directors Ulrich Gygi, CEO Andreas Meyer and CFO Georg Radon.

Key figures for the SBB Group.

Financial data in CHF millions.

Consolidated income statement.

 

2011

2010

Change

(absolute)

Change

(in percent)

Link opens in new window.Operating incomeLink opens in new window.

8,021.7

7,759.1

262.6

3.4%

Operating expenses

-7,492.1

-7,332.7

-159.4

-2.2%

Operating income/EBIT

529.7

426.4

103.3

24.2%

Financial result

-250.1

-194.8

-55.3

-28.4%

Non-operating profit/loss

66.9

82.9

-16.0

-19.3%

Profit before tax

346.5

314.5

32.0

10.2%

Taxes & minority interests

-7.7

-16.2

8.5

52.5%

Consolidated net income

338.7

298.3

40.4

13.5%

* after payment of interest and principal for the restructuring of the pension fund and compensation payments to Infrastructure

** adjusted for intra-group eliminations

Free cash flow by segment.

Free cash flow

before public-sector financing of rail infrastructure

after public-sector financing of rail infrastructure

Financial year / change

2011

2010

Change

(absolute)

Change

(%)

2011

2010

Change

(absolute)

Change

(%)

Group*

-1,480.3

-2,652.4

1,172.1

44.2%

-5.2

-1,371.0

1,365.8

99.6 %

Passenger

19.4

-163.7

183.1

111.9%

38.7

-125.6

164.3

130.8 %

Freight

-41.8

-54.4

12.7

23.3%

-41.8

-54.4

12.7

23.3 %

Infrastructure

-1,458.0

-1,277.7

-180.3

-14.1%

-2.2

-34.3

32.2

93.6 %

Real Estate

-138.9

-216.1

77.1

35.7%

-138.9

-216.1

77.1

35.7 %

Segment results.

 

2011

2010

Change

(absolute)

Change

(in percent)

Passenger

213.9

292.6

-78.7

-26.9%

Freight

-45.9

-64.0

18.1

28.3%

Infrastructure

72.4

4.8

67.6

-

Real Estate*

2.4

3.3

-0.9

-27.3%

Group-level units**

96.0

61.6

34.4

55.8%

* after payment of interest and principal for the restructuring of the pension fund and compensation payments to Infrastructure

** adjusted for intra-group eliminations

Free cash flow by segment.

Free cash flow

before public-sector financing of rail infrastructure

after public-sector financing of rail infrastructure

Financial year / change

2011

2010

Change

(absolute)

Change

(%)

2011

2010

Change

(absolute)

Change

(%)

Group*

-1,480.3

-2,652.4

1,172.1

44.2%

-5.2

-1,371.0

1,365.8

99.6 %

Passenger

19.4

-163.7

183.1

111.9%

38.7

-125.6

164.3

130.8 %

Freight

-41.8

-54.4

12.7

23.3%

-41.8

-54.4

12.7

23.3 %

Infrastructure

-1,458.0

-1,277.7

-180.3

-14.1%

-2.2

-34.3

32.2

93.6 %

Real Estate

-138.9

-216.1

77.1

35.7%

-138.9

-216.1

77.1

35.7 %

* Group-level units

Public-sector funding

 

2011

2010

Change

(absolute)

Change

(in percent)

Payments and grants for infrastructure*

1,764.0

1,696.5

67.5

4.0%

Federal and cantonal loans for infrastructure

574.1

411.3

162.8

39.6%

Grants for freight services**

33.6

22.4

11.2

50.0%

Grants for regional passenger services

575.1

556.4

18.7

3.4%

Total public-sector funding

2,946.7

2,686.5

260.2

9.7%

* including non-repayable Finöv fund contributions – noise abatement/disability legislation (2011: 68.2; 2010: 83.5)

** In 2011, the international freight business received a one-off federal government contribution of CHF 7.9 million to cushion losses due to the strong Swiss franc and to improve the competitiveness of transalpine rail freight.

Equity

 

2011

2010

Change

(absolute)

Change

(in percent)

Equity*
as at 31.12.

10,344.3

9,995.4

348.9

3.5%

Debt

18,681.7

18,194.8

486.9

2.7%

Interest-bearing debt

7,964.6

8,051.7

-87.1

-1.1%

* including minority interests

Quantities and services (in millions)

 

2011

2010

Change

(absolute)

Change

(in percent)

Passenger

 

 

 

 

Persons carried

356.6

347.1

9.5

2.7%

Passenger-kilometres

17,749

17,513

236

1.3%

Freight

 

 

 

 

Net tonne-kilometres

12,346

13,111

-765

-5.8%

Infrastructure

 

 

 

 

Train path-kilometres

165.1

163.5

1.6

1.0%

Punctuality and safety.

 

2011

2010

Change

(absolute)

Change

(in percent)

Passenger punctuality
< 3' delay, Mon-Fri

89.8%

87.0%

2.8% points

-

Safety indicator*
(points)

1,037

1,322

-285

-21.6%

*  The aim is to achieve as low a score as possible. The indicator takes account of the number of work, shunting and train-related accidents.

Employees.

 

2011

2010

Change

(absolute)

Change

(in percent)

Average number in SBB Group*

28,586

28,143

443

1.6%

* converted to full-time equivalent

Further content