Slide 1: Annual Results
Annual Results 1 2018 Annual Results of Getlink
Slide 2: #VITALLINK
#VITALLINK 2018 KEY 2018 FINANCIAL MESSAGES RESULTS BREXIT OUTLOOK 1 2 3 4 2 2018 Annual Results of Getlink
Slide 3: 2018 Key Messages
1 2018 KEY MESSAGES 3 2018 Annual Results of Getlink
Slide 4: 2018 Above Guidance
2018 Key figures 2018 ABOVE GUIDANCE (4) Revenues EBITDA: (2) Free €550M Dividend Net profit +5%(1) +9% to €569 M Cash Flow €0.01 above +21% to €130M (3) Green bond to €1.079Bn(1) €8M above guidance +7% to €252M guidance: +20% to €0.36 (1) At 2018 exchange rate: £1 = €1.128 (2) +5% vs 2017 at consta
Slide 5: Key Strengths for Future Growth
2018 Key Messages KEY STRENGTHS FOR FUTURE GROWTH AN EXPERIENCED MANAGEMENT TEAM Jacques François Jo Laurent Michel Steven Claire Pascal GOUNON GAUTHEY WILLACY FOURTUNE BOUDOUSSIER MOORE PICCOLIN SAINSON Chairman Deputy Commercial COO Chief Chief Executive Company Chief Executive & Chief Executive C
Slide 6: Key Strengths for Future Growth
2018 Key Messages KEY STRENGTHS FOR FUTURE GROWTH Technology and digital investments Real time information for customers CAFO truck transit time -3mn Load Management execution factor Passenger Shuttle +70bp Load factor truck Shuttle +120bp Availability of the infrastructure 99.8% 6 2018 Annual Resul
Slide 7: Key Strengths for Future Growth
2018 Key Messages KEY STRENGTHS FOR FUTURE GROWTH Consistent commercial strategy Premium Shuttle Service for the modern world: Flexiplus lounges / 100% wifi on terminals Yield management for Shuttle Services: CAGR 2011-2018 = +3.8% ETICA for Railway Network: London Amsterdam in 2018 London Bordeaux
Slide 8: Share Price Outperformance
2018 Key Messages SHARE PRICE OUTPERFORMANCE 125 GETLINK GET shares listed on the NYSE 120 Euronext Paris and London 115 110 Market capitalisation at 18 February 2018: €7.0 Bn 105 100 SBF120 Share performance (31/12/17 - 95 18/02/2019): +19% (vs -4% SBF 120) 90 85 Main Shareholders: Atlantia 15% (27
Slide 9: Getlink Committed to CSR Excellence
2018 Key Messages GETLINK COMMITTED TO CSR EXCELLENCE Environment -5% CO2 emission vs 2017 Social Responsibility 0.9M tonne of CO2 saved by Shuttle Service p.a. Allocation of free shares 5 days training/employee 4 1 Carbon trust certification Priority to safety: 26 K hours ElecLink favours energy tr
Slide 10: 2018 Financial Results
2 2018 FINANCIAL RESULTS 10 2018 Annual Results of Getlink
Slide 11: Record Profits: Records on Every Business Line
EUROTUNNEL IN 2018 RECORD PROFITS: RECORDS ON EVERY BUSINESS LINE 1 2 3 4 Record Shuttle traffic: Yield increase above Record Eurostar Record EBITDA: 1.7M trucks inflation ( i+150bp ) traffic: €545M and 2.7M cars 11M passengers (+5% vs 2017*) * At 2018 exchange rate of £1 = €1.128 11 2018 Annual Res
Slide 12: Trucks: Premium Service for a Modern Economy
EUROTUNNEL IN 2018 TRUCKS: PREMIUM SERVICE FOR A MODERN ECONOMY TRUCK VOLUMES (In thousands) +3.4% +4.4% p.a. Vital link for the modern economy: e- 1,693 commerce, just-in-time logistic, fresh food… 1,642 1,637 Customers ready to pay a premium for premium service 1,484 Growing 2.2x UK GDP 1,440 (201
Slide 13: Cars: Managing Capacity and Yield
EUROTUNNEL IN 2018 CARS: MANAGING CAPACITY AND YIELD CAR VOLUMES (In thousands) +1.4% p.a. +2.5% Meeting customers expectations: speed, comfort, reliability, ease of use Excess demand on peak days promotes pricing power Premium tickets: 4.8% of traffic / 11.3% of revenue 13 2018 Annual Results of Ge
Slide 14: High Speed Trains: Serving Modern Travellers
EUROTUNNEL IN 2018 HIGH SPEED TRAINS: SERVING MODERN TRAVELLERS EUROSTAR PASSENGERS (Number of Eurostar passengers (‘000s) travelling through the Channel Tunnel) Double source of growth +1.6% p.a. +6.5% 1- Historic markets (c.+4.5% in 2018): Green transport Ease of use/Comfort 2- New markets: New ro
Slide 15: Record Revenue and EBITDA
EUROTUNNEL IN 2018 RECORD REVENUE AND EBITDA €M 2018 Change 2017(1) +6% growth Revenue 958 +5% 910 in Shuttle Services revenue, thanks to an increase in traffic and Shuttle Services 636 +6% 601 yield for Passenger and Truck Shuttles Railway Network 306 +5% 291 Other 16 -7% 18 +5% EBITDA despit
Slide 16: Costs in Line with Quality of Service Strategy
EUROTUNNEL IN 2018 COSTS IN LINE WITH QUALITY OF SERVICE STRATEGY €10M traffic related cost increase (operation and maintenance) 430 OPERATIONS STRATEGIC REGULATORY 410 3 €6M on quality of service 3 413 6 410 (Flexiplus lounges and fluidity for trucks) 5 5 402 407 390 397 392 392 €3M Brexit cost: co
Slide 17: Profitable Growth
EUROPORTE IN 2018 PROFITABLE GROWTH €M 2018 Change 2017 Only profitable rail freight operator in France Revenue 121 +3% 118 Strong management achievements Operating costs -113 +1% -112 21% increase staff allocation/productivity(1) 26% increase asset productivity(1) EBITDA 8 +33% 6 100bp reduction of
Slide 18: Contribution to Profits Starting in 2020
ELECLINK IN 2018 CONTRIBUTION TO PROFITS STARTING IN 2020 Installation of HEX beams Converter station in France in the north railway tunnel Helix for cable pulling Investment: €213M in 2018 and €453M to date Cable installation waiting for final IGC authorisation 18 2018 Annual Results of Getlink
Slide 19: Net Profit Up 21%
2018 Financial Results NET PROFIT(4) UP 21% (1) (2) In € M 2018 2017 Δ % 2018 vs 2017 Revenue 1,079 1,028 +5% Operating costs -510 -505 +1% (3) EBITDA 569 523 +9% % of sales 52.7% 50.9% +180bp Trading profit 395 371 +6% Net finance costs -269 -269 - Net consolidated profit from continuing activiti
Slide 20: Free Cash Flow Up 7%
2018 Financial Results FREE CASH FLOW UP 7% €M Free cash flow(1): €252M (26) 3900 (199) 4052 4,078 (175) 3853 3600 3,733 (194) 3678 572 (75) 3300 3484 (248) 3000 o.w. €56M 2700 debt repayment (vs €26M in 2017) 2400 (1) FCF excluding ElecLink project expenditure and net proceeds from financial operat
Slide 21: Long Dated Financing for the Group
2018 Financial Results LONG DATED FINANCING FOR THE GROUP (1) €550M Fixed rate In €M 2018 Green Getlink SE Bond due 2023 Long duration Financial liabilities(1) (4,907) Inflation linked tranches aligned Eurotunnel Inflation Term loan with Railways Usage Contract revenue Linked Notes (G2) 222 (2) Euro
Slide 22: Prepared for Brexit
3 PREPARED FOR BREXIT 22 2018 Annual Results of Getlink
Slide 23: Prepared for Brexit
Brexit PREPARED FOR BREXIT D-Day Plan: IT system, CRM, operation, communication, HR… €5M Capex / €3M Opex in 2018 c.€10M Capex / €7M Opex budgeted for 2019 23 2018 Annual Results of Getlink
Slide 24: Best Case Scenario: Agreement
Uncertainty BEST CASE SCENARIO: AGREEMENT Eurotunnel in advance, immediate benefit to customers 2 year transition period Optimised terminals Digital real-time info 24 2018 Annual Results of Getlink
Slide 25: Worst Case Scenario: No Deal
Uncertainty WORST CASE SCENARIO: NO DEAL Freight Eurotunnel ready Mid-term Passengers Info to customers As frictionless as ever #Brexit&Beyond campaign +/- Data collection at our terminals zero change Some minor friction Until customers have properly adapted to new procedures 25 2018 Annual Results
Slide 26: No Alternative Route for Freight to the Short Straits
No matter what NO ALTERNATIVE ROUTE FOR FREIGHT TO THE SHORT STRAITS NORTH SEA 6% SHORT Folkestone STRAITS Ferry Route Crossing Trip UK-Europe frequency duration 89% Felixstowe - Rotterdam 3 per day 9h Tilburry - Zeebruge 2 per day 9h Calais Portsmouth - Caen 3 per day 7h Plymouth- Roscoff 2 per day
Slide 27: 2/3 of Eurotunnel Traffic Not Correlated to £/€ or GDP
No matter what 2/3 OF EUROTUNNEL TRAFFIC NOT CORRELATED TO £/€ OR GDP (FOR CARS & EUROSTAR) No correlation between cars and UK GDP (r2=0,1) Between 2007 and 2010, UK GDP declined 3% when car traffic remained stable. Cars & high speed In 2005, UK GDP grew 1.5% when car traffic declined 2.4% train pas
Slide 28: Brexit: What Outcome?
Uncertainty BREXIT: WHAT OUTCOME? Consistent commercial Potential short term Implied short term impact strategy impact on revenue Confident in the States’ commitment to rapidly put Scenario 1: Priority to fluidity in place effective new border formalities, without causing operational discontinuity €
Slide 29: Outlook
4 OUTLOOK 29 2018 Annual Results of Getlink
Slide 30: Dividend 2018: €0.36 per Share, 20% Increase
Outlook DIVIDEND 2018: €0.36 PER SHARE, 20% INCREASE +20% Robust long term Getlink: a focus 0.36€ commitment on shareholder return 0.30€ 2018 dividend higher than planned: 0.26€ €0.36 per share(1), 0.22€ a 20% increase 0.18€ 0.15€ Total amount distributed 0.12€ including share buy backs 0.08€ since
Slide 31: Short Term Uncertainty but Confidence in Future Growth
Outlook GETLINK: SHORT TERM UNCERTAINTY BUT CONFIDENCE IN FUTURE GROWTH FINANCIAL OBJECTIVES FOR 2019 2022 HORIZON + ELECLINK EBITDA* EBITDA* Scenario 1: €560M €735M+ Scenario 2: €575M DIVIDEND DIVIDEND €0.41 +€0.05 p.a. * Including IFRS 16 and at the exchange rate of £1: €1.128 and using current sc
Slide 32: #VitalLink
#VitalLink 32 2018 Annual Results of Getlink
Slide 33: Contacts
CONTACTS Jean Baptiste Michael ROUSSILLE SCHULLER co-Head of IR Corporate Finance Director 00 33 1 40 98 04 81 co-Head of IR 00 44 1303 288 719 Jean-baptiste.roussille@getlinkgroup.com Michael.schuller@getlinkgroup.com 33 2018 Annual Results of Getlink