Trainline Plc · LSE:TRN
Trainline — H1 FY2023 Earnings Presentation
38 slides from Trainline's earnings presentation, Nov 3, 2022
Slide 1: Half year results
Half year results For the six months ended 31 August 2022 3 November 2022
Slide 2: Disclaimer
Disclaimer This presentation (the “Presentation”) has been prepared by Trainline plc (the “Company” and, together with its subsidiaries, the “Group”). For the purposes of this notice, “Presentation” means this document, its contents or any part of it, any oral presentation, any question or answer se
Slide 3: Agenda
Agenda Agenda 1. Key highlights Jody Ford, CEO 2. Financial performance Pete Wood, Interim CFO 3. Progress against strategic priorities Jody Ford, CEO 4. Q&A 2
Slide 4: Key highlights from H1 FY2023
Key highlights from H1 FY2023 • Strong trading performance - net ticket sales up +17% & revenue up +28% vs pre-COVID • Significant EBITDA growth, whilst investing in International opportunity • Unlocking value for customers, scaling active digital railcard users to 1.7 million in UK • Positioning ou
Slide 5: Our purpose and vision
Our purpose Our vision Empowering greener Building the world’s travel choices number 1 rail platform
Slide 6: Enhancing mobile app to encourage modal shift
Enhancing mobile app to encourage modal shift Carbon comparison Bike reservation Showing customers their emission savings from taking Helping the millions of cyclists in the UK to more easily the train vs other forms of transport take their bicycle on a train 5
Slide 7: Low consumer awareness of benefits of switching to rail
Low consumer awareness of benefits of switching to rail Transport the largest GHG emitting sector1 Rail emits far less CO2 than flying or driving2 7x XX% 73% 3x XX% 27% Air Car Train Seeking to lead agenda on growing awareness and encouraging modal shift 1. BEIS 2021 UK GHG emissions by sector, 2019
Slide 8: Introducing
Introducing A mission to make rail famous for being the most sustainable form of transport 7
Slide 9: Agenda
Agenda Agenda 1. Key highlights Jody Ford, CEO 2. Financial performance Pete Wood, Interim CFO 3. Progress against strategic priorities Jody Ford, CEO 4. Q&A 8
Slide 10: Sales, revenue and gross profit surpassed pre-COVID levels
Sales, revenue and gross profit surpassed pre-COVID levels Net ticket sales (£m) Revenue (£m) Gross profit (£m) +116% +17% vs +28% vs +124% +33% vs +112% YoY H1 FY2020 H1 FY2020 YoY H1 FY2020 YoY 129 2,159 165 274 53 49 452 24 16 1,000 78 57 104 179 26 23 1,433 6 3 88 63 716 46 32 H1 FY2022 H1 FY202
Slide 11: Strong step-up in Adj. EBITDA while increasing international investment
Strong step-up in Adj. EBITDA while increasing international investment Marketing costs (£m) Other admin costs (£m) Adjusted EBITDA (£m) 45 50 17 19 34 34 11 15 38 2 22 16 31 9 23 (3) 4 (10) 11 5 H1 FY2022 H1 FY2023 H1 FY2022 H1 FY2023 H1 FY2022 H1 FY2023 UK Consumer International Consumer People Ot
Slide 12: Rail industry continuing to recover
Rail industry continuing to recover UK daily passenger volume as % of pre-COVID level1 NR usage v FY20 NR Usage (wk Avg) • Rail industry continues its path to recovery 120.0% • Ongoing industrial action in UK, resulting in 100.0% passenger volume volatility 85.0% 80.0% • Underlying demand remains st
Slide 13: Reaffirming FY2023 guidance
Reaffirming FY2023 guidance Net ticket sales Revenue growth: Adj. EBITDA as % growth: in the range of of net ticket sales: in the range of 22% to 31% in the range of 18% to 27% versus FY2020 1.9% to 2.1% versus FY2020 12
Slide 14: Agenda
Agenda Agenda 1. Key highlights Jody Ford, CEO 2. Financial performance Pete Wood, Interim CFO 3. Progress against strategic priorities Jody Ford, CEO 4. Q&A 13
Slide 15: Strategic priorities for growth
Strategic priorities for growth Enhance customer Increase customer Grow Trainline Build demand experience lifetime value Solutions 14
Slide 16: Strategic priorities for growth – UK Consumer
Strategic priorities for growth – UK Consumer Enhance customer Increase customer Grow Trainline Build demand experience lifetime value Solutions Digitalising commuter Value-focused brand experience; unlocking Scaling digital railcards campaign value for customers 15
Slide 17: Eticket availability no longer a constraint; significant headroom remains
Enhance customer Increase customer Grow Trainline Build demand experience lifetime value Solutions Eticket availability no longer a constraint; significant headroom remains UK Consumer etickets now available on every major TOC; Strong eticket penetration growth but headroom >90% of passenger journey
Slide 18: Unlocking new digital demand with digital season tickets
Enhance customer Increase customer Grow Trainline Build demand experience lifetime value Solutions Unlocking new digital demand with digital season tickets UK Consumer • Season ticket market recovering to c£0.8 billion • No digital ticket option available historically • Rolled out digital seasons to
Slide 19: Attracting more commuters and converting them into purchasers
Enhance customer Increase customer Grow Trainline Build demand experience lifetime value Solutions Attracting more commuters and converting them into purchasers UK Consumer Growing time checkers and purchasing time checkers • Sizeable step up in ‘time-checker’ commuters as we primed our app to meet
Slide 20: Enhancing Splitsave to unlock further savings
Enhance customer Increase customer Grow Trainline Build demand experience lifetime value Solutions Enhancing Splitsave to unlock further savings UK Consumer • Data-led optimisation to expand splits offered • Increased availability to 76% of journeys (64% at launch) • Launched Splitsave on web 19
Slide 21: Strong value proposition, increasingly relevant during cost-of-living crisis
Enhance customer Increase customer Grow Trainline Build demand experience lifetime value Solutions Strong value proposition, increasingly relevant during cost-of-living crisis UK Consumer All carriers and Seamless journey options advanced Digital railcards SplitSave (incl. coach) booking Compare all
Slide 22: New value-led brand campaign
Enhance customer Increase customer Grow Trainline Build demand experience lifetime value Solutions New value-led brand campaign UK Consumer 21
Slide 23: Scaling digital railcards to make it even easier to save money
Enhance customer Increase customer Grow Trainline Build demand experience lifetime value Solutions Scaling digital railcards to make it even easier to save money UK Consumer • Seamless way for customers to save up to a third off rail travel • Scaling digital railcards further: − 1.7 million active d
Slide 24: Significant step up in frequent customers
Enhance customer Increase customer Grow Trainline Build demand experience lifetime value Solutions Significant step up in frequent customers UK Consumer Customers transacting 2+ per month • Helping more customers make everyday 2x travel choices • Growing relevancy for more of our customers travel ne
Slide 25: Strategic priorities for growth – International Consumer
Strategic priorities for growth – International Consumer Enhance customer Increase customer Grow Trainline Build demand experience lifetime value Solutions Aggregating carriers and Increasing customer Growing brand awareness differentiating UX frequency 24
Slide 26: Strong growth on routes that have recently liberalised
Enhance customer Increase customer Grow Trainline Build demand experience lifetime value Solutions Strong growth on routes that have recently liberalised International Consumer Tickets sold now 7x on Madrid-Barcelona1 Tickets sold now 3x on Paris-Lyon2 3X 7X 2X 5X Sep Apr Sep Sep Apr Sep 2021 2022 2
Slide 27: Aggregating new carrier Iryo on Madrid-Barcelona
Enhance customer Increase customer Grow Trainline Build demand experience lifetime value Solutions Aggregating new carrier Iryo on Madrid-Barcelona International Consumer Madrid - Barcelona Average Daily return fares down Carrier Type 48% YoY services1 Incumbent 22 Incumbent 4 (low cost) Low cost La
Slide 28: Carrier competition expanding to Madrid-Valencia and beyond
Enhance customer Increase customer Grow Trainline Build demand experience lifetime value Solutions Carrier competition expanding to Madrid-Valencia and beyond International Consumer Madrid - Valencia Daily return Carrier Type services1 Incumbent 13 Incumbent 3 (low cost) Low cost Launched 5 (SNCF) O
Slide 29: Launching new products and features to optimise UX in each market
Enhance customer Increase customer Grow Trainline Build demand experience lifetime value Solutions Launching new products and features to optimise UX in each market International Consumer Friction free Unrivalled value Delays / cancellation Airline-style Seat maps in Weekly price calendar in Trenita
Slide 30: Leveraging value proposition for customers in core European markets
Enhance customer Increase customer Grow Trainline Build demand experience lifetime value Solutions Leveraging value proposition for customers in core European markets International Consumer All carriers and journey Seamless advanced booking Digital railcards SplitSave options (incl. coach) All carri
Slide 31: Nationwide brand campaign has doubled customer acquisition in Italy
Enhance customer Increase customer Grow Trainline Build demand experience lifetime value Solutions Nationwide brand campaign has doubled customer acquisition in Italy International Consumer New app customers has tripled in Italy >3x H1 FY20 H1 FY21 H1 FY22 H1 FY23 30
Slide 32: Serving more inbound travellers as they return to European rail
Enhance customer Increase customer Grow Trainline Build demand experience lifetime value Solutions Serving more inbound travellers as they return to European rail Inbound travellers increased significantly Yo3Y International Consumer net ticket sales €m +66% +89% H1 FY2020 H1 FY2023 US inbound Globa
Slide 33: Strong step up in customer frequency
Enhance customer Increase customer Grow Trainline Build demand experience lifetime value Solutions Strong step up in customer frequency International Consumer Number of customers transacting 2+ times a month 4x 2x H1 FY2020 H1 FY2023 H1 FY2020 H1 FY2023 France Italy 32
Slide 34: Strategic priorities for growth – Trainline Solutions
Strategic priorities for growth – Trainline Solutions Enhance customer Increase customer Grow Trainline Build demand experience lifetime value Solutions Leveraging platform strength to support travel partners 33
Slide 35: Update on Great British Railways (GBR)
Enhance customer Increase customer Grow Trainline Build demand experience lifetime value Solutions Update on Great British Railways (GBR) • Creation of GBR as single guiding mind: primary legislation delayed • Creation of GBR as a ticket retailer: Consolidated Online Retailing Solutions (CORS) tende
Slide 36: Leveraging our platform strength to help our travel partners
Enhance customer Increase customer Grow Trainline Build demand experience lifetime value Solutions Leveraging our platform strength to help our travel partners • Supporting our IT Solutions partners: − White label contract extension with Scotrail − NTV Italo regional ticket sales live – our first Eu
Slide 37: Key takeaways
Key takeaways • Strong trading and financial performance in the first half • Reaffirming improved guidance for the full year FY2023 • Digitising commuter experience in the UK • Unlocking value for an increasingly cost conscious customer base • Positioning ourselves as the aggregator in Europe, drivi
Slide 38: Q&A
Q&A