Irish Continental Group Plc · EURONEXT:IR5B

Irish Continental — FY2019 Earnings Presentation

34 slides from Irish Continental's earnings presentation, Mar 5, 2020

  1. Slide 1: 2019 Results Presentation

    2019 Results Presentation 5th March 2020

  2. Slide 2: Full Year 2019 Performance Summary

    Full Year 2019 Performance Summary • Revenue for the year increased by 8.2% to €357.4 million (2018: €330.2 million). In the Ferries division revenue* increased by 8.3% to Revenue €212.4 million (2018: €196.2 million) while in the Container and €357.4m Terminal division revenue* increased by 7.7% to

  3. Slide 3: ICG Business Units

    ICG Business Units Ferries Division Container & Terminal Division Irish Ferries, the leading ferry Eucon, the leading container shipping company operating between the operator between Ireland and the UK/Continent and the Republic of Continent. Dublin Ferryport Terminals Ireland. The division is also

  4. Slide 4: Ferries Division

    Ferries Division Irish Continental Group 2019 Results Presentation 5th March 2020 4

  5. Slide 5: Ferries Division - Routes

    Ferries Division - Routes Weekly Sailings 2018 2019 Dublin - Holyhead Ulysses 28 28 Dublin Swift 28 28* Epsilon / W.B. Yeats 18 26/28 74 82/84 Rosslare - Pembroke Isle of Inishmore 28 28 Total Ireland - UK 102 110/112 Ireland - France Oscar Wilde 7 - Epsilon / W.B. Yeats 2 6/7 Total Ireland-France 9

  6. Slide 6: Ferries Division

    Ferries Division Sailings 2018 Brand: Irish Ferries Owned: - 3 cruise ferries 6% - 1 fast ferry 26% Holyhead: 3,300 Sailings - 6 container ships 28% 66% Pembroke: 1,400 On order: - 1 cruise ferry Sailings Charter in: - 1 ropax ferry 66% France: 300 Sailings Always On irishferries.com Strategic route

  7. Slide 7: Ferries Division

    Ferries Division Car Market CAGR (Volumes) 1 Year 3 Years 5 Years 10 Years 27 Years 2019 2016 – 2019 2014 - 2019 2009 - 2019 1992 - 2019 Irish Ferries +2% -1% +1% +1% +2% Republic of Ireland -1% -1% 0% -1% +1% All Ireland 0% 0% 0% -1% +1% RoRo Market CAGR (Volumes) 1 Year 3 Years 5 Years 10 Years 27

  8. Slide 8: Ferries Division - Ship Chartering activities

    Ferries Division -Ship Chartering activities Ship Chartering Revenue FY 2019 FY 2018 €m €m External 5.3 2.1 Internal 8.2 8.1 Total 13.5 10.2 • External charter revenues up €5.3 million following the purchase during the year of the MV Thetis, CT Rotterdam and the sale of the MV Oscar Wilde. • Charter

  9. Slide 9: Cruise Ferry Investments

    Cruise Ferry Investments General • Two new cruise ferries contracted with German yard FSG for intended deployment on Irish Ferries services. • Total contract value €314 million. • W.B. Yeats construction was completed in 2018 and the ship was delivered to Irish Ferries in December 2018 and entered s

  10. Slide 10: New Cruise Ferry, W.B. Yeats, ordered by ICG from Flensburger (FSG)

    New Cruise Ferry, W.B. Yeats, ordered by ICG from Flensburger (FSG) delivered in late 2018 Cruise Ferry Details Cost €144 million (excl Scrubber) Deck Capacity (Maximum) 165 Trucks or 1,216 Cars Deck Capacity (Mix) 165 Trucks and 300 Cars Passenger/Crew Capacity 1,885 Passenger Cabins 440 Engine out

  11. Slide 11: New Cruise Ferry, Hull 777, ordered by ICG from Flensburger (FSG)

    New Cruise Ferry, Hull 777, ordered by ICG from Flensburger (FSG) for Dublin – Holyhead route (contracted for delivery late 2020) New Build 2 (Hull 777) MV Ulysses Effective Peak Freight Capacity 300 200 Passenger/Crew Capacity 1,800 1,850 Cars 1,500 1,342 Engine output (4 engines) 33,600kw 31,200kw

  12. Slide 12: Ferries Division

    Ferries Division 2019 2018 Change POST PRE POST PRE IFRS16 IFRS16 IFRS16 IFRS16 Revenue* €212.4m €212.4m €196.2m +8.3% +8.3% Operating Costs (€145.2m) 151.1m (€142.6m) +1.8% +6.0% EBITDA €67.2m €61.3m €53.6m +25.3% +14.3% Non-trading item €14.9m €14.9m €13.7m +8.8% +8.8% Depreciation/Amortisation (€

  13. Slide 13: Container & Terminal Division

    Container & Terminal Division Irish Continental Group 2019 Results Presentation 5th March 2020 13

  14. Slide 14: Container & Terminal Division

    Container & Terminal Division • 6 chartered vessels • 3,800 owned and leased containers, 7,400 teu (20ft, 40ft, 45ft, reefers, flats, curtain siders) • Operating between the Ports of Dublin, Cork and Belfast to Rotterdam and Antwerp • Door to Door (52%) Transport plus Quay to Quay (48%) (feeder) • D

  15. Slide 15: Container & Terminal Division

    Container & Terminal Division Irish Continental Group 2019 Results Presentation 5th March 2020 15

  16. Slide 16: Container & Terminal Division - Terminals

    Container & Terminal Division - Terminals 2 strategically located container handling terminals at Dublin (DFT) and Belfast (BCT). • 150 year lease in Dublin from 1972 • Concession from Belfast Harbour • Annual throughput of 190,600 lifts Commissioners (BHC) extended for 6 (2018: 182,500 lifts) years

  17. Slide 17: Container & Terminal Division - Container Handling Ireland

    Container & Terminal Division - Container Handling Ireland CAGR (Volumes) 1 Year 3 Year 5 Year 2019 2016-19 2014-19 ICG 3% 4% 11% ICG*Excl. Belfast 4% 5% 5% All Ireland 4% 4% 4% Irish Continental Group 2019 Results Presentation 5th March 2020 17

  18. Slide 18: Container & Terminal Division

    Container & Terminal Division 2019 2018 Change POST PRE IFRS16 POST PRE IFRS16 IFRS16 IFRS16 Revenue* €154.4m €154.4m €143.3m 7.7% 7.7% Operating Costs (€134.8m) (€138.3m) (€128.5m) 4.9% 7.6% EBITDA €19.6m €16.1m €14.8m 32.4% 8.7% Depreciation/Amortisation (€6.0m) (€3.1m) (€2.7m) 122% 14.8% Operatin

  19. Slide 19: Group

    Group • Results • Fuel Costs • Cash Flow • Share Performance/Dividends/Share Buybacks • Current Trading/Outlook • Refinancing of Group Debt Irish Continental Group 2019 Results Presentation 5th March 2020 19

  20. Slide 20: Group - Results

    Group - Results 2019 2018 Change POST IFRS16 PRE IFRS16 POST IFRS16 PRE IFRS16 Revenue €357.4m €357.4m €330.2m 8.2% 8.2% Operating Costs (exc. Dep) €270.6m €280m €261.8m 3.4% 7.0% EBITDA €86.8m €77.4m €68.4m 26.9% 13.1% Non-trading items €14.9m €14.9m €13.7m 8.8% 8.8% Operating Profit €64.9m €64.1m

  21. Slide 21: Group - Fuel Costs

    Group - Fuel Costs 2019 2018 Change Consumption (000 tons) Heavy Fuel Oil 88.3 69.6 26.9% Marine Diesel 31.7 39.0 (18.8%) 120.0 108.6 10.5% Average Price (€ per ton) Heavy Fuel Oil €363 €376 (3.4%) Marine Diesel €523 €543 (3.6%) Brent Crude (guide) $64/€57 $72/€61 (10.8%)/(5.9%) Total Cost (inc. lub

  22. Slide 22: Group - Cash Flow

    Group - Cash Flow 2019 2018 €m €m EBITDA 86.8 68.4 Working Capital Movement 2.0 (3.8) Pension Payments (1.3) (1.6) Other 2.0 1.7 Cash Generated from Operations 89.5 64.7 Interest (3.5) (1.0) Tax (1.2) (2.2) Purchases of property, plant and equipment & intangible asset before new vessel (11.6) (15.6)

  23. Slide 23: Group – Share Performance/Dividends/Share Buy Backs

    Group – Share Performance/Dividends/Share Buy Backs ICG shares: Total return CAGR last 10 years to 31/12/19 17.3% Total return CAGR since flotation on 14/04/88 17.3% Cash Returned to Shareholders 2008 - 2018 Buyback/ Year Interim (Cent) Final (Cent) Total (Cent) €m Tender Offer €m 2008 Nil 10.0c 10.

  24. Slide 24: Group - Current Trading/Outlook

    Group - Current Trading/Outlook General • There is uncertainty at the moment over the manner of the proposed exit of the United Kingdom from the European Union. • There is uncertainty in relation to the impact of COVID-19 on ferry passenger movement and economic growth. • The previous virus outbreak

  25. Slide 25: Appendix Fleet

    Appendix Fleet Irish Continental Group 2019 Results Presentation 5th March 2020 25

  26. Slide 26: Appendix – Fleet: Ulysses

    Appendix – Fleet Ulysses Year Built 2001 Cost €106m GT 50,938 tons PAX 1875 Cars 1342 Lane Meters 4.1km Speed 22 knots Route Dublin/ Holyhead Irish Continental Group 2019 Results Presentation 5th March 2020 26

  27. Slide 27: Appendix - Fleet: Isle of Inishmore

    Appendix - Fleet Isle of Inishmore Year Built 1997 Cost €81m GT 34,031 tons PAX 2200 Cars 855 Lane Meters 2.1km Speed 21.5 knots Route Rosslare/ Pembroke Irish Continental Group 2019 Results Presentation 5th March 2020 27

  28. Slide 28: Appendix – Fleet: Dublin Swift

    Appendix – Fleet Dublin Swift (formerly Westpac Express) Year Built 2001 (refurbished 2018) Cost $13.25m GT 8,403 tons PAX 817 Cars 250 Speed 35 knots Route Dublin/ Holyhead from March-September Irish Continental Group 2019 Results Presentation 5th March 2020 28

  29. Slide 29: Appendix – Fleet: W.B. Yeats

    Appendix – Fleet W.B. Yeats Delivery 2018 Cost (incl. Scrubber) €151m GT 50,000 tons PAX 1,885 Beds 1,706 Cars (Max) 1,216 Lane Meters (excl Car 2.8km Deck) Speed 22.5 knots Route Dublin/ Holyhead, Dublin/ France Irish Continental Group 2019 Results Presentation 5th March 2020 29

  30. Slide 30: Appendix – Fleet: New Build for Dublin - Holyhead

    Appendix – Fleet New Build for Dublin - Holyhead Hull 777 (contracted delivery 2020) Contracted Delivery 2020 Cost (incl. Scrubber) €165.2m GT 67,300 tons Passenger and Crew Capacity 1,800 Cars (Max) 1,526 Lane Meters 5,610km Speed 23 knots Irish Continental Group 2019 Results Presentation 5th March

  31. Slide 31: Appendix – Fleet: Ranger, Elbfeeder

    Appendix – Fleet Ranger IMO 9322542 Built 2005 LOA 140.59 Breadth 21.8 GT 7,852 Dead Weight 9,300 Size TEU 803 TEU @ 14tns 518 Elbfeeder IMO 9388522 Built 2008 LOA 139.60 Breadth 22.0 GT 8,246 Dead Weight 11,157 Size TEU 974 TEU @ 14tns 580 Irish Continental Group 2019 Results Presentation 5th March

  32. Slide 32: Appendix – Fleet: Elbtrader, Elbcarrier

    Appendix – Fleet Elbtrader IMO 9388534 Built 2008 LOA 139.60 Breadth 22.0 GT 8,246 Dead Weight 11,153 Size TEU 974 TEU @ 14tns 580 Elbcarrier IMO 9388510 Built 2007 LOA 139.60 Breadth 22.0 GT 8,246 Dead Weight 11,166 Size TEU 974 TEU @ 14tns 580 Irish Continental Group 2019 Results Presentation 5th

  33. Slide 33: Appendix - Fleet: CT Rotterdam, Thetis D

    Appendix - Fleet CT Rotterdam IMO 9395575 Built 2009 LOA 139.60 Breadth 22 GT 8,273 Dead Weight 11,157 Size TEU 974 TEU @ 14tns 580 Thetis D IMO 9372274 Built 2009 LOA 168.11 Breadth 26.8 GT 17,488 Dead Weight 17,861 Size TEU 1,421 TEU @ 14tns 1,039 Irish Continental Group 2019 Results Presentation

  34. Slide 34: Disclaimer

    Disclaimer This presentation may contain certain forward-looking statements. These statements are made by the Directors in good faith based on the information available to them up to the time of their approval of this presentation. These forward-looking statements should be treated with caution due

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