Slide 1: Full year results
Full year results For the twelve months ended 28 February 2022 5 May 2022
Slide 2: Disclaimer
Disclaimer This presentation (the “Presentation”) has been prepared by Trainline plc (the “Company” and, together with its subsidiaries, the “Group”). For the purposes of this notice, “Presentation” means this document, its contents or any part of it, any oral presentation, any question or answer se
Slide 3: Agenda
Agenda Agenda 1. Key highlights Jody Ford, CEO 2. Financial performance Shaun McCabe, CFO 3. Progress against strategic priorities Jody Ford, CEO 4. Q&A 2
Slide 4: Our purpose and vision
Our purpose Our vision Empowering greener Building the world’s travel choices number 1 rail platform 5 million tonne CO2e saving from switching 1% of air and car journeys in UK to rail1 1. Based on internal estimates for UK
Slide 5: Significant progress in FY2022
Significant progress in FY2022 • Supporting rail industry recovery; strong performance and positive outlook for FY2023 • Shifting more customers towards digital ticketing • Record levels of customer acquisition and significant increase in transaction frequency • Only retailer aggregating all high sp
Slide 6: MOU agreed with RDG provides greater certainty in UK rail
MOU agreed with RDG provides greater certainty in UK rail • Output from Rail Delivery Group review of rail retailing environment in UK • MOU to enter collaborative phase with RDG to reach agreement on future retail framework • Legally binding back-stop should contractual terms not be agreed • Sets f
Slide 7: Agenda
Agenda Agenda 1. Key highlights Jody Ford, CEO 2. Financial performance Shaun McCabe, CFO 3. Progress against strategic priorities Jody Ford, CEO 4. Q&A 6
Slide 8: Strong recovery despite COVID-related bumps in the road
Strong recovery despite COVID-related bumps in the road UK Consumer and International net ticket sales1 UK’s 1st UK’s 2nd UK’s 3rd Omicron lockdown lockdown lockdown restrictions Pre- COVID Feb-20 May-20 Aug-20 Nov-20 Feb-21 May-21 Aug-21 Nov-21 Feb-22 UK Consumer International 1. Rebased to Februar
Slide 9: Significant recovery in sales, revenue and gross profit
Significant recovery in sales, revenue and gross profit Net ticket sales (£m) Revenue (£m) Gross profit (£m) +222% +181% YoY 68% of YoY 72% of +214% 2,520 FY2020 189 FY2020 YoY 76% of 153 FY2020 21 418 13 15 11 290 67 153 129 783 1,812 49 11 235 12 7 8 75 44 34 473 FY2021 FY2022 FY2021 FY2022 FY2021
Slide 10: Returned to positive EBITDA while stepping up International investment
Returned to positive EBITDA while stepping up International investment Direct and central costs (£m) Adjusted EBITDA (£m) 85 116 114 39 38 39 144 74 98 38 32 44 21 (14) (4) (9) (41) 31 (45) (51) 40 31 (25) 10 FY2020 FY2021 FY2022 FY2020 FY2021 FY2022 Marketing People Other UK International Central c
Slide 11: Strong recovery driven significant reduction in net debt
Strong recovery driven significant reduction in net debt Net debt movements (£m) 241 Net debt/ EBITDA: 2.3x 90 Working capital Finance, lease and End FY2021 Adj. EBITDA Capital expenditure Other End FY2022 inflow treasury share costs 10
Slide 12: Guidance for FY2023
Guidance for FY2023 Net ticket sales: Revenue: Adj. EBITDA: in the range of in the range of in the range of £3.8-4.2 billion £280-310 million £70-75 million 11
Slide 13: Agenda
Agenda Agenda 1. Key highlights Jody Ford, CEO 2. Financial performance Shaun McCabe, CFO 3. Progress against strategic priorities Jody Ford, CEO 4. Q&A 12
Slide 14: Strategic priorities for growth
Strategic priorities for growth Enhance customer Increase customer Grow Trainline Build demand experience lifetime value Partner Solutions 13
Slide 15: Strategic priorities for growth – UK Consumer
Strategic priorities for growth – UK Consumer Enhance customer Increase customer Grow Trainline Build demand experience lifetime value Partner Solutions Growing customer Digitalising the commuter Increasing monetisation, acquisition; targeting experience frequency and retention under-30s 14
Slide 16: Supporting industry recovery with shift to digital ticketing
Enhance customer Increase customer Grow Trainline Build demand experience lifetime value Partner Solutions Supporting industry recovery with shift to digital ticketing UK Consumer Eticket penetration doubled in past 2 years Eticket availability to grow from >80% to >90% next year When etickets were
Slide 17: Meeting the needs of the 'new commuter'
Enhance customer Increase customer Grow Trainline Build demand experience lifetime value Partner Solutions Meeting the needs of the ‘new commuter’ UK Consumer Significant opportunity to digitalise commuter experience Primed commuter offering over last year • Frequent rail users underserved with digi
Slide 18: Strong early progress but still lots of runway for growth
Enhance customer Increase customer Grow Trainline Build demand experience lifetime value Partner Solutions Strong early progress but still lots of runway for growth UK Consumer Converting time-checkers into purchasers1 Digital seasons to launch this year 100% +27% 49% 39% Purchasers Purchasers All t
Slide 19: Record customer acquisition; targeting under-30s
Enhance customer Increase customer Grow Trainline Build demand experience lifetime value Partner Solutions Record customer acquisition; targeting under-30s UK Consumer Customer acquisition Targeting Under-30s New app customers Pre-COVID peak Nov-20 Nov-21 Aug-19 Apr-19 May-19 Aug-20 Aug-21 Dec-19 Ap
Slide 20: Digital railcards: locking in the next generation to rail travel
Enhance customer Increase customer Grow Trainline Build demand experience lifetime value Partner Solutions Digital railcards: locking in the next generation to rail travel UK Consumer • Significant progress in digital railcards, a key loyalty proposition: − >1,000,000 sales in FY2022 • Attracting yo
Slide 21: Driving up transaction frequency
Enhance customer Increase customer Grow Trainline Build demand experience lifetime value Partner Solutions Driving up transaction frequency UK Consumer Significant step up in frequent customers Customers transacting 2+ per month (UK Consumer): • Enhanced offering and marketing push means +39% we can
Slide 22: Strategic priorities for growth – International
Strategic priorities for growth – International Enhance customer Increase customer Grow Trainline Build demand experience lifetime value Partner Solutions Acquiring customers at Becoming the aggregator record levels and growing Growing regional travel for rail travel in Europe brand awareness 21
Slide 23: Enhance customer experience, Build demand (International)
Enhance customer Increase customer Grow Trainline Build demand experience lifetime value Partner Solutions International
Slide 24: Enhance customer experience, Build demand (International)
Enhance customer Increase customer Grow Trainline Build demand experience lifetime value Partner Solutions International
Slide 25: Enhance customer experience, Build demand (International)
Enhance customer Increase customer Grow Trainline Build demand experience lifetime value Partner Solutions International
Slide 26: Carrier competition now on 6/10 top high-speed routes in Europe
Enhance customer Increase customer Grow Trainline Build demand experience lifetime value Partner Solutions Carrier competition now on 6/10 top high-speed routes in Europe International Routes with carrier competition Routes without carrier competition Carriers on all routes fully integrated into our
Slide 27: All carriers, fares, journey options in one place
Enhance customer Increase customer Grow Trainline Build demand experience lifetime value Partner Solutions International All carriers, fares, journey options in one place All services in one app Multi-carrier journeys Partner of choice for new entrants • Rapidly adding inventory in new markets • Bri
Slide 28: Newly liberalised routes: Madrid-Barcelona
Enhance customer Increase customer Grow Trainline Build demand experience lifetime value Partner Solutions Newly liberalised routes: Madrid-Barcelona International Services per Competitor Type day2 Incumbent 19 Low-cost 4 incumbent Low cost 5 • Busiest domestic air-route in Europe pre (SNCF) liberal
Slide 29: Newly liberalised routes: Paris-Lyon
Enhance customer Increase customer Grow Trainline Build demand experience lifetime value Partner Solutions Newly liberalised routes: Paris-Lyon International Services per Competitor Type day1 Incumbent c.18 Low-cost 2-3 incumbent Premium 5 • Domestic flight ban in France from April 2022 • Two hour j
Slide 30: Optimising and differentiating our product offering
Enhance customer Increase customer Grow Trainline Build demand experience lifetime value Partner Solutions Optimising and differentiating our product offering International Unrivalled value Friction free Meeting local market needs Enhanced search and departure Airline-style Seat maps in Récup’ Retar
Slide 31: Strong customer acquisition but still plenty of upside opportunity
Enhance customer Increase customer Grow Trainline Build demand experience lifetime value Partner Solutions Strong customer acquisition but still plenty of upside opportunity International Customer acquisition at record levels App share of transactions below UK Consumer1 International new app custome
Slide 32: First major brand campaign in Italy in H2
Enhance customer Increase customer Grow Trainline Build demand experience lifetime value Partner Solutions First major brand campaign in Italy in H2 International Out of home TV campaign Influencer activation TV advert image 31
Slide 33: Increasing our relevance for more of our customers' travel needs
Enhance customer Increase customer Grow Trainline Build demand experience lifetime value Partner Solutions Increasing our relevance for more of our customers’ travel needs International Aggregating high-speed routes is the hook But customers increasingly using us for regional too Regional ticket sal
Slide 34: Strategic priorities for growth – Trainline Partner Solutions
Strategic priorities for growth – Trainline Partner Solutions Enhance customer Increase customer Grow Trainline Build demand experience lifetime value Partner Solutions Expanding white label business into Europe 33
Slide 35: Platform One – our single global tech platform
Enhance customer Increase customer Grow Trainline Build demand experience lifetime value Partner Solutions Platform One – our single global tech platform Broad yet deep End-to-end Reliable, scalable, Powerful data assets secure inventory connections ecommerce solutions >270 carriers Simple “1 click”
Slide 36: Expanding white label business into Europe
Enhance customer Increase customer Grow Trainline Build demand experience lifetime value Partner Solutions Expanding white label business into Europe • New European IT Solutions client: − Multi-year deal with NTV Italo − Enables Italo to sell regional transportation to expand reach of its high-speed
Slide 37: Consolidated Online Retailing Solution (CORS)
Enhance customer Increase customer Grow Trainline Build demand experience lifetime value Partner Solutions Consolidated Online Retailing Solution (CORS) • Preliminary steps in possible procurement of retailing capability, expected to be novated to GBR • Scope: Procuring cost effective, market leadin
Slide 38: Key takeaways
Key takeaways • Supporting rail industry recovery; strong performance and positive outlook for FY2023 • Shifting more UK customers to digital while MOU agreement gives us more future certainty • Building momentum in International as we invest to become the aggregator in Europe • Expanding white labe
Slide 39: Q&A
Q&A