Irish Continental Group Plc · EURONEXT:IR5B
Irish Continental — FY2014 Earnings Presentation
30 slides from Irish Continental's earnings presentation, Mar 5, 2015
Slide 1: Irish Continental Group plc 2014 Results Presentation
Irish Continental Group plc 2014 Results Presentation th 5 March 2015 1
Slide 2: ICG Business Units
ICG Business Units 1. Ferries Division Irish Ferries, the leading ferry company operating between UK/Continent and the Republic of Ireland. 2. Container Division Eucon, leading container shipping operator between Ireland and the N.W. Continent with its own container terminals in Dublin & Belfast. Tu
Slide 3: Ferries Division
Ferries Division \ . ‘ \ ‘
Slide 4: Ferries Division Routes
a Ferries Division Routes re IRISH CONTINENTAL GROUP @ TROON A WEEKLY SAILINGS LARNE @: @ CAIRNRYAN BELFAST @ Dublin - Holyhead } WARRENPOINT © Ulysses 28 Jonathan Swift 28 DUBLIN ‘iene Epsilon 1% DUN LAOGHAIRE @! 74 ‘@ LIVERPOOL neue ‘© HOLYHEAD Rosslare - Pembroke coax Isle of Inishmore 28 ose Tot
Slide 5: Ferries Division
Ferries Division • Brand: Irish Ferries • 4 Conventional combined Car/RoRo ferries • 1 fast car carrying ferry, light freight • 1 ferry on charter to Kiwi Rail (New Zealand) to June 2017 Ireland - France Rosslare - 400 sailings Pembroke 1,400 8% sailings 27% Dublin - Holyhead 3,400 sailings 65% 5 4
Slide 6: Ferries Revenues 2014
Ferries Revenues 2014 Cars & Passengers Freight 59% 39% Other 2% 6 5
Slide 7: Ferries Costs 2014
Ferries Costs 2014 Other 14% Payroll Depreciation 24% 10% Repairs/Insurance 5% Port Costs 21% Fuel 26% 7 6
Slide 8: Distribution
Distribution Car Bookings On-Line 81% Telephone 13% Ports 6% 6 100% irishferries.com - 2014 • 5.5m visits (2013, 4.9m) • 215,000 Bookings (2013, 198,000) 77
Slide 9: Passenger Market
Passenger Market CAGR (Volumes) 1 Year H2 H1 3 Year 7 Year 15 Years 2014 2014 2014 2011 - 2014 2007 - 2014 1992 - 2007 Irish Ferries +5% +8% +1% +3% +1% 1% Republic of Ireland +3% +3% +2% 0% -2% 0% All Ireland +2% +3% 0% 0% -1% 0% 9 8
Slide 10: Car Market
Car Market CAGR (Volumes) 1 Year H2 H1 3 Year 7 Year 15 Years 2014 2014 2014 2011 - 2014 2007 - 2014 1992 - 2007 Irish Ferries +9% +11% +6% +3% -1% 4% Republic of Ireland +4% +5% +2% -1% -2% 2% All Ireland +2% +3% +2% -2% -2% 2% 10 9
Slide 11: RoRo Market
RoRo Market CAGR (Volumes) 1 Year H2 H1 3 Year 7 Year 15 Year 2014 2014 2014 2011 – 2014 2007 – 2014 1992 – 2007 Irish Ferries +21% +23% +18% +8% -1% +12% Republic of Ireland +7% +6% +7% +3% -1% +10% All Ireland +3% +3% +4% +1% -1% +6% 11 10
Slide 12: Ferries Division
Ferries Division 2014 2013 Change €m €m Turnover 184.3 161.7 14.0% Operating Costs (141.2) (120.2) 17.5% EBITDA 43.1 41.5 3.9% Depreciation/Amortisation (15.1) (16.6) -9.0% Operating Profit 28.0 24.9 12.4% • Passenger, Car & On Board revenue up 8.5% • RoRo Freight revenue up 25.7% • Fuel costs €40.7
Slide 13: Container & Terminal Division
Container & Terminal Division 12 13 12 12
Slide 14: Container & Terminal Division
Container & Terminal Division • 5 chartered vessels • 3,000 owned and leased containers, 5,800 teu (20ft, 40ft, 45ft, reefers, flats, curtain siders) • 6 ports served (2 owned terminals) • Door to Door (55%) Transport plus Quay to Quay (45%) (feeder) • DFT Terminal in Dublin - Principal terminal in
Slide 15: Eucon Container Routes
Eucon Container Routes 55 IRISH CONTINENTAL GROUP BELFAST @ DUBLIN e CORK @ .@ ROTTERDAM © ANTWERP @ RADICATEL
Slide 16: Terminals
Terminals 2 strategically located container handling terminals at Dublin and Belfast. • Annual throughput of 151,900 lifts (143,000 2013) • Design Capacity of 260,000 lifts • 3 Gantry Cranes and 8 Rubber Tyre Gantries (RTG’s) • Largest and most modern container terminal in Ireland • 5 minutes from m
Slide 17: Container Handling Irl.
Container Handling Irl. CAGR 1 Year 3 Year 5 Year ICG 6% 0% 3% All Ireland 9% 2% 0% 17 16
Slide 18: Container & Terminal Division
Container & Terminal Division 2014 2013 Change €m €m Turnover 107.0 104.3 +2.6% Operating Costs (99.6) (96.6) +3.1% EBITDA 7.4 7.7 -3.9% Depreciation/Amortisation (2.7) (2.6) +3.8% Operating Profit 4.7 5.1 -7.8% • Container volumes down 0.7% at 277,200 teu, feeder down 4%, door/door up 2% • Terminal
Slide 19: Group
Group • Financials • Fuel • Pension Funds • Dividends/Share Buybacks • Outlook 19 18
Slide 20: ICG - Group Results
ICG - Group Results 2014 2013 Change Turnover €290.1m €264.7m 9.6% Operating Costs (exc. Dep) €239.6m €215.5m 11.2% EBITDA €50.5m €49.2m 2.6% Operating Profit €32.7m €30.0m 9.0% Non – Trading Items €28.7m €0.0m Discontinued Operations - €0.7m Profit on Sale of Subsidiary - €2.8m Basic EPS 30.4c 14.6
Slide 21: 2014 Operating Profit Bridge
2014 Operating Profit Bridge FERRIES CONTAINER & TERMINAL 20
Slide 22: ICG Cash Flow
ICG Cash Flow FY 2014 FY 2013 EBITDA 50.5 49.2 Working Capital Movement (2.2) (2.8) Pension Payments (3.9) (5.8) Other - (0.3) Cash Generated from Operations 44.4 40.3 Interest (3.5) (4.3) Tax (1.1) (0.2) Capex (8.0) (8.7) Free Cash Flow 31.8 27.1 Asset Sales 0.1 9.8 Payments received on Finance Lea
Slide 23: ICG Fuel Costs
ICG Fuel Costs FY 2014 FY 2013 Change 2014 v’s 2013 Consumption (000 tons) Heavy Fuel Oil 92.3 79.3 +16.4% Marine Diesel 15.1 13.8 +9.4% 107.4 93.1 +15.4% Price (€ per ton) Heavy Fuel Oil €452 €479 -5.6% Marine Diesel €665 €709 -6.2% Brent Crude (guide) $99.6/€74.9 $108.7/€81.8 -8.4% Total Cost (inc
Slide 24: Group Pension Funds
Group Pension Funds Company Sponsored Funds Dec 2014 Dec 2013 Dec 2012 Dec 2011 Dec 2010 €m €m €m €m €m Assets 256.5 230.5 213.5 193.5 200.3 Liabilities (IAS 19 basis) 279.2 265.2 268.1 215.2 206.5 Deficit (22.7) (34.7) (54.6) (21.7) (6.2) Discount Rate €/£ 2.0%/3.65% 3.6%/4.35% 3.8%/4.4% 5.3%/4.9%
Slide 25: Dividend / Share Buybacks
Dividend / Share Buybacks Cash Returned to Shareholders 2007 - 2014 Dividend/Redemption Year Interim (Cent) Final (Cent) Total (Cent) €m Buyback/ Tender Offer €m 2007 Nil 10.0c* 10.0c* 24.5 2008 Nil 10.0c* 10.0c* 24.6 2009 Nil 10.0c* 10.0c* 25.0 2010 Nil 10.0c* 10.0c* 25.1 2011 3.3c* 6.7c* 10.0c* 24
Slide 26: Current Trading
Current Trading General • Irish and UK economies growing (Investec Manufacturing PMI 57.5, highest since December 1999) • Fuel tailwind (although freight surcharges will partially offset this) • Stronger £ Sterling a positive Tourism YTD • Passenger numbers +3% •Car numbers +16% Freight • RoRo volum
Slide 27: Appendix: Fleet
Ferries - Fleet APPENDIX FLEET 27 APP
Slide 28: Ferries - Fleet
Ferries - Fleet Year Built 2001 Ulysses Cost €106m Ulysses GT 50,900 tons Ulysses PAX 1875 Cars 1342 Jonathan Swift Lane Meters 4.1km Speed 22 knots Route Dublin/Holyhead Jonathan Swift Year Built 1999 Jonathan Swift Cost €38m GT 6,000 tons PAX 800 Cars 200 Speed 39 knots Route Dublin/Holyhead APP
Slide 29: Ferries - Fleet
Ferries - Fleet Year Built 1997 Isle of Inishmore Isle of Inishmore Cost €81m GT 34,000 tons PAX 2200 Cars 855 Lane Meters 2.1km Speed 21.5 knots Route Rosslare/Pembroke OscarOscar WildeWilde Year Built 1987 Purchased in 2007 €51m - plus upgrade GT 32,000 tons PAX 1458 Beds 1376 Cars 580 Lane Meters
Slide 30: Ferries - Fleet
Ferries - Fleet Year Built 2011 Epsilon GT 26,375 tons PAX 500 Beds 272 Lane Meters 2.8km Speed 23 knots Route Dublin/Holyhead Dublin/France Year Built 1995 Kaitaki Cost €62m GT 22,300 tons PAX 1650 Beds 274 Cars 600 Lane Meters 1.7km Speed 19 knots Route Chartered Out APP 15
Irish Continental Group — FY2014 Earnings Presentation on 6ix