Slide 1: FirstGroup FY 2024 Results
FirstGroup FY 2024 Results Tuesday 11 June 2024
Slide 2: Agenda
Agenda 1. Overview 2. Financial review 3. Business review 4. Summary 2
Slide 3: Strong delivery against our strategy
Strong delivery against our strategy We are delivering value-accretive sustainable growth, underpinned by our strong balance sheet and disciplined capital allocation policy – adjusted EPS up 44% to 16.7p Deliver, day in day out Drive modal shift Lead in environmental and Diversify our portfolio soci
Slide 4: Agenda
Agenda 1. Overview 2. Financial review 3. Business review 4. Summary 4
Slide 5: Material increase in profit driven by excellent progress in both First Bus and First Rail
Material increase in profit driven by excellent progress in both First Bus and First Rail ▪ Strong increase in margins in FY 2024 £m (from continuing FY 2024 FY 2023 Change % operations) ▪ Invested in landmark £100m strategic decarbonisation Hitachi joint venture (capex savings Revenue 4,715.1 4,755
Slide 6: First Bus: on track to achieve 10% margin target during FY 2025
First Bus: on track to achieve 10% margin target during FY 2025 ▪ Revenue up 12% due to 9% higher passenger volumes, further performance improvements and lower lost mileage, offsetting a c.£40m reduction in funding ▪ Adjusted operated profit margin of 9.4% achieved in H2 2024 (FY 2024: 8.3%; FY 2023
Slide 7: First Rail: continued outperformance in open access
First Rail: continued outperformance in open access Significant increase across the First Rail portfolio, adjusted operating profit up £18.5m vs. FY 2023 £m FY 2024 FY 2023 Change ▪ DfT TOCs Adjusted operating profit up £12.3m due GWR adj. op profit 56.2 47.2 9.0 mainly to higher than accrued final
Slide 8: Substantial increase in Group adjusted earnings
Substantial increase in Group adjusted earnings Strong financial performance in FY 2024 as we continue to grow and diversify our earnings ▪ First Bus improvement due to passenger revenue and volume growth, ▪ Open access and additional rail services increase due to strong passenger operational effici
Slide 9: Significant cash generation before investments and returns
Significant cash generation before investments and returns £143.7m of cash generated from operations ▪ Post tax management fee from DfT TOCs received a year in arrears ▪ Disposal proceeds includes depots sales and battery sales to the Hitachi JV ▪ Working capital includes outflow of c.£10m relating
Slide 10: Strong progress on managing our pension liabilities
Strong progress on managing our pension liabilities We have materially reduced our pension exposure by removing or fully insuring c.£1bn of gross pension liabilities without requiring any cash from the Group ▪ Group pension liabilities reduced to £1.4bn from £2.3bn during FY 2024 following: - First
Slide 11: A disciplined capital allocation policy delivering growth and returns
A disciplined capital allocation policy delivering growth and returns We have considerable capacity to continue to invest in decarbonisation, grow and diversify our portfolio, maintain our progressive shareholder returns and ensure our business remains resilient in the long term ▪ First Bus: - elect
Slide 12: FY 2025 full year financial outlook
FY 2025 full year financial outlook ▪ Group: current trading and outlook for FY 2025 in line with our expectations ▪ Interest of £50-55m, includes DfT TOCs interest of c.£40m Financial ▪ First Bus: further growth expected vs. FY 2024; 10% margin expected to be reached in H2 2025 performance ▪ First
Slide 13: Agenda
Agenda 1. Overview 2. Financial review 3. Business review 4. Summary 13
Slide 14: Another year of strong performance at First Bus
Another year of strong performance at First Bus Operating profit growth of 43% up £25m on FY 2023 ▪ Passenger volumes +7% with total mileage down 2.9% (excluding the extra week in FY 2024); passengers per mile grew 10% ▪ Revenue per mile +13% reflecting growth in passenger volumes and improvements i
Slide 15: Continuing to grow and diversify the First Bus portfolio
Continuing to grow and diversify the First Bus portfolio We have an experienced growth team focused on making use of our assets and capabilities to participate in attractive Adjacent Services, franchising and partnership opportunities Adjacent Services ▪ Revenues grew to £220m (FY 2023: £175m; FY 20
Slide 16: Significant progress in electrification at First Bus
Significant progress in electrification at First Bus The electrification of our fleet and infrastructure is transforming our business and cost base ▪ Fleet, infrastructure and funding: - we now have c.600 electric buses, c.13% of our fleet and over 600 charging outlets - significant opportunity to r
Slide 17: First Rail TOCs continue to focus on operational delivery
First Rail TOCs continue to focus on operational delivery We are an experienced UK operator and uniquely positioned to work with our partners to add value and provide better rail services DfT Contracted TOCs ▪ FY 2024 adjusted operating profit of £105.6m (FY 2023: £93.3m); majority of upside comes f
Slide 18: Hull Trains and Lumo continue to materially outperform the market
Hull Trains and Lumo continue to materially outperform the market Our successful open access operations are demonstrating what private operators can do for the industry; stimulating demand, providing competitive, sustainable and reliable services Hull Trains & Lumo FY 2024 FY 2023 Change Revenue (£m
Slide 19: Growing our successful open access businesses
Growing our successful open access businesses If approved, the applications we have submitted for new and extended open access services could more than double our open access capacity over the next 3-5 years ▪ Existing services capacity totals c.940m seat miles ▪ Hull Trains London-Sheffield service
Slide 20: Agenda
Agenda 1. Overview 2. Financial review 3. Business review 4. Summary 20
Slide 21: Significant progress delivered and a strong platform for further growth
Significant progress delivered and a strong platform for further growth FirstGroup today is a resilient and profitable business with a clear strategy to deliver sustainable growth from our leading bus and rail operations ▪ Strong balance sheet provides scope for growth and diversification, underpinn
Slide 22: Appendix
Appendix First (ao
Slide 23: FY 2024 sustainability highlights
FY 2024 sustainability highlights Leveraging both First Rail and the Group’s expertise and capabilities, we strive to be leaders in environmental and social sustainability Selected FirstGroup credentials and ratings: Environment ▪ Membership of UN Global Compact Network and ranked top performing bus
Slide 24: Appendix: Group accounting for rail
Appendix: Group accounting for rail The Group includes alternative measures in its financial statements that adjust for the underlying economics of the rail contracts ▪ Although the Group has very limited revenue, cost and contingent capital risk under the DfT National Rail Contracts (‘NRC’s), under
Slide 25: Group Adjusted earnings
Group Adjusted earnings Our planning and dividend policy focus on underlying fees from rail contracts to look through IFRS 16 distortions £m FY 2024 FY 2023 ▪ FirstGroup reports ‘Adjusted earnings’ shown before net Group Adjusted earnings comprise: adjusting items and excluding IFRS 16 impacts in th
Slide 26: Appendix: Reconciliation of Statutory to Adjusted cash flows
Appendix: Reconciliation of Statutory to Adjusted cash flows Discontinued & Ring fenced cash £m Statutory IFRS 16 Reclassifications Adjusted adjusting items movements EBITDA 585.6 163.0 (61.1) (539.2) - 148.3 Management fees - 38.2 - - 38.2 Working capital (109.0) (11.5) 121.8 (23.2) (20.9) (42.8) C
Slide 27: Appendix: IFRS 16 (leases)
Appendix: IFRS 16 (leases) ▪ As at 30 March 2024, £1.5bn of leased assets were recognised as Right of Use assets on the balance sheet. FY 2024 FY 2023 £m Under IAS17 IFRS 16 effect Under IFRS 16 Under IFRS 16 Adjusted and Continuing EBITDA 209.4 +539.2 748.6 762.4 Operating profit 156.6 +47.7 204.3
Slide 28: Important notice
Important notice This presentation includes statements that are, or may be deemed to be, forward-looking statements. These forward-looking statements can be identified by the use of forward-looking terminology, including (but not limited to) the terms anticipates, believes, could, estimates, expects