Slide 1: Irish Continental Group plc 2011 Results Presentation
Irish Continental Group plc 2011 Results Presentation 8 March 2012 1
Slide 2: ICG Business Units
ICG Business Units 1. Ferries Division Irish Ferries, the leading ferry company operating between UK/Continent and Republic of Ireland 2. Container Division Eucon and Feederlink, leading Container operators between Ireland/UK and the Continent with own container terminals in Dublin & Belfast Turnove
Slide 3: ICG - Group Results
ICG - Group Results 2011 2010 Change Turnover €273.3m €262.2m 4.2% Operating Costs (exc. Dep) €224.2m €208.6m 7.5% EBITDA €49.1m €53.6m -8.4% Profit on sale of Vessel N/A €9.4m N/A Profit from Operations €28.9m €40.9m -29.3% Basic EPS 111.1c 156.8c -29.1% Adjusted EPS 109.9c 121.0c -9.2% Dividend pe
Slide 4: ICG Fuel Costs
ICG Fuel Costs FY 2011 FY 2010 FY 2009 Change 2011 v’s 2010 Consumption (000 tons) Heavy Fuel Oil 88.2 86.0 93.1 2.6% Marine Diesel 15.0 15.4 12.8 -2.6% 103.2 101.4 105.9 1.8% Price (€ per ton) Heavy Fuel Oil €469 €374 €275 25.4% Marine Diesel €670 €539 €390 24.3% Brent Crude (guide) $110.79 / €79.6
Slide 5: ICG Cash Flow
ICG Cash Flow FY 2011 FY 2010 EBITDA 49.1 53.6 Working Capital Movement (5.7) (4.7) Net Pension Cost / Payments /Curtailment Gain (4.7) (4.6) Other (0.2) (0.5) Cash generated from Operations 38.5 43.8 Interest (1.0) (0.4) Tax (1.0) (0.6) Capex (6.3) (7.2) Free Cash Flow 30.2 35.6 Asset Sales 0.4 2.1
Slide 6: Dividend
Dividend €128.1 million returned to shareholders over last 5 years 2011 2010 2009 2008 2007 Adjusted EPS (Cent) 109.9 121.0 107.7 148.9 178.6 Dividend/Redemption (Cent) 100 100 100 100 100 Cumulative Payout 75% 72% 69% 61% 56% 5
Slide 7: Group Pension Funds
Group Pension Funds Company Sponsored Funds Dec 2011 Dec 2010 Dec 2009 Dec 2008 €m €m €m €m Assets 193.5 200.3 191.9 169.9 Liabilities 215.2 206.5 207.6 187.2 Surplus/(Deficit) (21.7) (6.2) (15.7) (17.3) Discount Rate € / £ 5.3% / 4.9% 5.5% / 5.5% 5.6% / 5.7% 5.90% / 6.25% - Company in negotiation w
Slide 8: Ferries Division
Ferries Division • Brand: Irish Ferries • 3 Conventional combined Car / RoRo ferries • 1 fast car carrying ferry, light freight • 4019 sailings - UK (Holyhead 2593 Pembroke 1426) Sailing Time - Holyhead Cruise Ferry 3¼ hours Holyhead Fast Ferry 2 hours Pembroke Cruise Ferry 4 hours • 292 sailings -
Slide 9: Ferries Division
Ferries Division 2011 2010 Change €m €m Turnover 155.5 153.7 1.2% Operating Costs 116.2 110.1 5.5% EBITDA 39.3 43.6 -9.9% Depreciation/Amortisation (17.3) (19.1) -9.4% Operating Profit 22.0 24.5 -10.2% • Passenger, Car & On Board revenue down 1% • RoRo Freight revenue up 9% • Charter revenue down 31
Slide 10: Ferries Revenues 2011
Ferries Revenues 2011 Cars & Passengers Freight 63% 34% (2010 – 64%) (2010 – 32%) Other 3% (2010 – 4%) 10 11 9
Slide 11: Ferries Costs 2011
Ferries Costs 2011 Other (2010 – 14%) 13% Payroll 23% Depreciation 13% (2010 – 24%) (2010 – 15%) Repairs/Insurance 5% (2010 – 5%) Port Costs 20% (2010 – 20%) Fuel 26% (2010 – 22%) 11 10 11
Slide 12: Irish Sea Routes
lrish Sea Routes IRISH FERRIES ee STENA == P&O comm SEATRUCK == BRITTANY FERRIES === CELTIC LINK ome FASTNET LINE @m@e eROoN LARNE a BELFAST @' WARREN POINT @ DUBLII MEN \y HEYSHAM DUN LAOGHAIRE @: 5 ‘@ LIVERPOOL ROSSLARE | IWelNelzA) IN FISHGUARD ‘@ PEMBROKE Siew __ © SWANSEA U) CHERBOURG 'e ROSCOF
Slide 13: Passenger Market
Passenger Market CAGR 1 Year H2 H1 3 Year 5 Year 2011 2011 2011 2008 - 2011 2006 - 2011 Irish Ferries -1% 2% -4% 1% 2% Republic of Ireland -5% -4% -7% -1% -2% All Ireland -4% -3% -6% -1% -1% 13 12
Slide 14: Passenger Market
Passenger Market Total Passengers Growth Rates 2006 (BASE) to 2011 115 % 110 % 105 % 100 % 95 % 90 % 85 % 2006 2007 2008 2009 2010 2011 Irish Ferries Republic of Ireland Island of Ireland 14 13
Slide 15: Car Market
Car Market CAGR 1 Year H2 H1 3 Year 5 Year 2011 2011 2011 2008 - 2011 2006 - 2011 Irish Ferries -4% -4% -3% -2% 0% Republic of Ireland -6% -7% -6% -1% -1% All Ireland -6% -6% -5% -1% -1% 15 14
Slide 16: Car Market
Car Market Total Cars Growth Rates 2006 (BASE) to 2011 115 % 110 % 105 % 100 % 95 % 90 % 85 % 2006 2007 2008 2009 2010 2011 Irish Ferries Republic of Ireland Island of Ireland 16 15
Slide 17: RoRo Market
RoRo Market CAGR 1 Year H2 H1 3 Year 5 Year 2011 2011 2011 2008 – 2011 2006 - 2011 Irish Ferries 9% 6% 12% -7% -4% Republic of Ireland 0% -1% 1% -1% 0% All Ireland 0% 0% 1% -2% -1% 2011 2010 2009 2008 1992 -2007 Irish Ferries 9% -9% -19% -9% +8% Republic of Ireland 0% 11% -12% -4% +10% All Ireland 0
Slide 18: RoRo Freight Market
RoRo Freight Market Total Fv's Growth Rates 2006 (BASE) to 2011 120 % 115 % 110 % 105 % 100 % 95 % 90 % 85 % 80 % 75 % 70 % 2006 2007 2008 2009 2010 2011 Irish Ferries Republic of Ireland Island of Ireland 18 17
Slide 19: Container & Terminal Division
Container & Terminal Division 2011 2010 Change €m €m Turnover 119.1 109.8 8.5% Operating Costs 109.3 99.8 9.5% EBITDA 9.8 10.0 -2.0% Depreciation/Amortisation (2.9) (3.0) -3.3% Operating Profit 6.9 7.0 -1.4% • Container volumes flat • Terminal volumes up 12% • Fuel costs up 28% at €17.3 million • Ot
Slide 20: Operations
Operations • 9 chartered vessels • 3,000 owned and leased containers, 5850 teu (20ft, 40ft, 45ft, reefers, flats, curtain siders) • 11 ports served (2 owned terminals) • Ireland / Continent - Door to Door plus Quay to Quay (feeder) • DFT Terminal in Dublin - Principal terminal in ROI • BCT Terminal
Slide 21: Container Routes
Container Routes ICG owns and operates terminals in Dublin & Belfast. Other ports are operated by third parties. ICG owns and operates terminals in Dublin & Belfast. Other ports are operated by third parties. 22 24 20
Slide 22: Container Handling Irl.
Container Handling Irl. LoLo Market 1m Teu’s in 2011 CAGR 1 Year 3 Year 5 Year ICG 12% -5% 2% All Ireland* -2% -10% -7% * Based on figures January – September 2011 22 21
Slide 23: Outlook
Outlook • Ireland is a very open economy and trade flows in 2012 will be negatively affected by the slowdown in the UK and the Euro area and positively impacted by the growth in the USA and the emerging economies • The Irish consumer faces another difficult year as austerity programmes continue • Th
Slide 24: Outlook
Outlook • Fuel costs are currently approximately 17% (+ €8m) higher than the 2011 average which is a challenge to pass on given the significant increases in recent years • There is less tourism capacity in 2012 with the liquidation of Fastnet Line (Swansea – Cork) and the withdrawal of a competitor’
Slide 25: Ferries - Fleet APPENDIX
Ferries - Fleet APPENDIX FLEET 25 APP
Slide 26: Ferries - Fleet
Ferries - Fleet Year Built 2001 Ulysses Cost €106m Ulysses GT 50,900 tons PAX 1875 Cars 1342 Jonathan Swift Lane Meters 4.1km Speed 22 knots Jonathan Swift Year Built 1999 Cost €38m GT 6,000 tons PAX 800 Cars 200 Speed 39 knots 26 APP
Slide 27: Ferries - Fleet
Ferries - Fleet Isle of Inishmore Year Built 1997 Cost €81m GT 34,000 tons PAX 2200 Cars 855 Lane Meters 2.1km Speed 21.5 knots Isle of Year Inishmore Built 1987 Oscar Wilde Purchased in 2007 €51m - plus upgrade GT 32,000 tons PAX 1458 Beds 1376 Cars 580 Lane Meters 1.2km Speed 21.5 knots 27 APP APP
Slide 28: Ferries - Fleet
Ferries - Fleet Year Built 1995 Kaitaki Kaitaki Cost €62m GT 22,300 tons PAX 1650 Beds 274 Cars 600 Lane Meters 1.7km Speed 19 knots 28 APP 15