Irish Continental Group Plc · EURONEXT:IR5B
Irish Continental — H1 2018 Earnings Presentation
33 slides from Irish Continental's earnings presentation, Nov 29, 2018
Slide 1: 2018 November Trading Update Presentation
2018 November Trading Update Presentation 29th November 2018
Slide 2: Half Year 2018 Performance Summary
Half Year 2018 Performance Summary • Revenue for the year grew 0.7% to €157.2 million (2017: €156.1 million). In the Ferries division revenue* decreased by 3.0% to €90.9 million (2017: €93.7million) while in the Container and Terminal division revenue* Revenue increased by 6.0% to €70.4 million (201
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
Slide 4: Ferries Division
Ferries Division Irish Continental Group 2018 November Trading Update Presentation 29th November 2018 4
Slide 5: Ferries Division - Routes
Ferries Division ‐ Routes Weekly Sailings Current Proposed 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 7* Epsilon / W.B Yeats 2 6/7 Total
Slide 6: Ferries Division
Ferries Division Sailings 2017 Brand: Irish Ferries • Brand: Irish Ferries • 4 Conventional combined Car/RoRo ferries 26% 8% Holyhead: 3,500 • 1 fast car carrying ferry Sailings • 4 container ships on charter 26% 66% Pembroke: 1,400 • 2 New Build conventional combined car/RoRo Sailings ferries on or
Slide 7: Ferries Division
Ferries Division Car Market CAGR (Volumes) YTD YTD H1 1 Year 3 Years 5 Years 10 Years 25 Years 24.11.18 October 2018 2017 2014 – 2012 ‐ 2007 ‐ 1992 ‐ 2018 2017 2017 2017 2017 Irish Ferries ‐7% ‐7% ‐2% +3% +4% +5% +1% +2% Republic of ‐2% ‐1% +2% +1% +2% ‐1% +1% Ireland All Ireland ‐2% ‐1% +2% +1% +1%
Slide 8: Ferries Division - Ship Chartering activities
Ferries Division ‐Ship Chartering activities Ship Chartering Revenue H1 2018 H1 2017 FY 2017 €m €m €m External 1.0 4.7 8.2 Internal 3.5 3.4 6.9 Total 4.5 8.1 15.1 • External charter revenues down €3.7 million following sale of Kaitaki and redeployment of Westpac Express to Irish Ferries services. •
Slide 9: New Cruise Ferry, W.B. Yeats ordered from FSG
New Cruise Ferry, W.B. Yeats ordered by ICG from Flensburger Schiffbau‐ Gesellschaft (‘FSG’) for delivery 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 1,800 Passen
Slide 10: New Cruise Ferry, New Build 2, ordered from FSG
New Cruise Ferry, New Build 2, ordered by ICG from FSG for Dublin – Holyhead route (for delivery mid 2020) New Build 2 MV Ulysses Effective Peak Freight Capacity 300 200 Passenger/Crew Capacity 1,800 1,875 Cars 1,526 1,342 Engine output (4 engines) 33,600kw 31,200kw Speed 23.0 knots 22.0 knots Gross
Slide 11: 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. • The investment will allow greater vessel route configurations and improve service continuity and reliability especially
Slide 12: Ferries Division
Ferries Division H1 H1 Change FY 2017 2018 2017 €m €m €m Revenue* 90.9 93.7 ‐3.0% 212.1 Operating Costs (72.1) (70.8) +1.8% (144.8) EBITDA 18.8 22.9 ‐17.9% 67.3 Non‐trading item 13.7 29.3 ‐53.2% 28.7 Depreciation/Amortisation (8.4) (9.2) ‐8.7% (18.2) Operating Profit 24.1 43.0 ‐44.0% 77.8 • Passenge
Slide 13: Container & Terminal Division
Container & Terminal Division Irish Continental Group 2018 November Trading Update Presentation 29th November 2018 13
Slide 14: Container & Terminal Division
Container & Terminal Division • 6 chartered vessels • 3,550 owned and leased containers, 6,900 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
Slide 15: Container & Terminal Division
Container & Terminal Division Irish Continental Group 2018 November Trading Update Presentation 29th November 2018 15
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 172,800 lifts Commissioners (BHC) for 5 years from (2016: 165,000 lifts) Gro
Slide 17: Container & Terminal Division - Container Handling Irl.
Container & Terminal Division ‐ Container Handling Irl. CAGR (Volumes) Q.3 1 3 Year 5 Year 2018 Year ICG 5% 3% 17% 10% ICG*Excl. Belfast 7% 5% 4% 4% All Ireland 4% 3% 5% 5% Irish Continental Group 2018 November Trading Update Presentation 29th November 2018 17
Slide 18: Container & Terminal Division
Container & Terminal Division H1 H1 Change FY 2017 2018 2017 €m €m €m Revenue* 70.4 66.4 +6.0% 131.9 Operating Costs (63.1) (59.7) +5.7% (118.2) EBITDA 7.3 6.7 +9.0% 13.7 Depreciation/Amortisation (1.3) (1.3) ‐ (2.5) Operating Profit 6.0 5.4 11.1% 11.2 • Container volumes up 0.9% at 164,600 teu. (Vo
Slide 19: Group
Group • Results • Fuel Costs • Cash Flow • Share Performance/Dividends/Share Buybacks • Net cash and available borrowing facilities • Current Trading/Outlook Irish Continental Group 2018 November Trading Update Presentation 29th November 2018 19
Slide 20: Group - Results
Group ‐ Results H1 2018 H1 2017 Change FY 2017 Revenue €157.2m €156.1m +0.7% €335.1m Operating Costs (exc. Dep) €131.1m €126.5m +3.6% €254.1m EBITDA €26.1m €29.6m ‐11.8% €81.0m Non‐trading items €13.7m €29.3m ‐53.2% €28.7m Operating Profit €30.1m €48.4m ‐37.8% €89.0m Basic EPS 15.3c 22.8c ‐32.9% 44.
Slide 21: Group - Fuel Costs
Group ‐ Fuel Costs H1 2018 H1 2017 Change 2017 Consumption (000 tons) Heavy Fuel Oil 33.5 34.7 ‐3.5% 71.0 Marine Diesel 20.1 18.9 6.3% 39.9 53.6 53.6 ‐ 110.9 Average Price (€ per ton) Heavy Fuel Oil €359 €327 +9.8% €310 Marine Diesel €514 €437 +17.6% €438 Brent Crude (guide) $71.2/€58.8 $52.7/€48.6
Slide 22: Group - Cash Flow
Group ‐ Cash Flow H1 2018 €m H1 2017 €m FY 2017 €m EBITDA 26.1 29.6 81.0 Working Capital Movement 21.4 19.4 (1.9) Pension Payments (0.5) (0.5) (1.1) Other ‐ 0.4 (0.6) Share‐based payments 1.2 ‐ 1.1 Cash Generated from Operations 48.2 48.9 78.5 Interest paid (0.4) (0.8) (1.1) Tax (0.7) (0.5) (5.6) Ca
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 31/12/17 14.8% Total return CAGR since flotation on 14/04/88 17.8% Cash Returned to Shareholders 2007 ‐ 2018 Buyback/ Year Interim (Cent) Final (Cent) Total (Cent) €m Tender Offer €m 2007 Nil 10.0c 10.
Slide 24: Net Cash and Available Borrowing Facilities
Net Cash and Available Borrowing Facilities Latest Fixed Rate Facility Undrawn On‐hand / drawn Maturity €m €m €m Cash ‐ 180.0 180.0 Committed lending facilities: Bank overdrafts Annually Variable 15.4 15.4 ‐ Revolving credit Up to 2024 Variable 75.0 75.0 ‐ EIB Amortising Loan #1 2030 1.724% 75.0 ‐ 7
Slide 25: Group - Current Trading/Outlook
Group ‐ Current Trading/Outlook General • There is heightened uncertainty at the moment over the manner of the proposed exit of the United Kingdom from the European Union. This is bound to be affecting the timing of corporate investment decisions and continued uncertainty may have a negative impact
Slide 26: Appendix Fleet
Appendix Fleet Irish Continental Group 2018 November Trading Update Presentation 29th November 2018 26
Slide 27: Appendix - Fleet
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 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
Slide 28: Appendix - Fleet
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 April 2018 Oscar Wilde Year Built 1987 Purchased in 2007 ‐ plus upgrade €51m GT 31,914 tons PAX 1458 Beds 1376 Cars 580 La
Slide 29: Appendix - Fleet
Appendix – Fleet W.B Yeats Delivery 2018 Cost (incl. Scrubber) €151m GT 50,000 tons PAX 1,800 Beds 1,706 Cars (Max) 1,216 Lane Meters (excl Car Deck) 2.8km Speed 22.5 knots Irish Continental Group 2018 November Trading Update Presentation 29th November 2018 29
Slide 30: Appendix - Fleet
Appendix – Fleet New Build 2 ‐ Dublin‐Holyhead Hull 777 (under construction) 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 Epsilon (chartered in) Year Built 2011 GT 26,375 tons PAX 500 Beds 272 Lane Me
Slide 31: Appendix - Fleet
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 GT 8,246 Dead Weight 11,157 Size TEU 974 TEU @ 14tns 580 Irish Continental Group 2018 November Trading Update Presenta
Slide 32: Appendix - Fleet
Appendix – Fleet Elbtrader IMO 9388534 Built 2008 LOA 139.60 Breadth 22 GT 8,246 Dead Weight 11,153 Size TEU 924 TEU @ 14tns 580 Elbcarrier IMO 9388510 Built 2007 LOA 139.60 Breadth 22 GT 8,246 Dead Weight 11,166 Size TEU 924 TEU @ 14tns 580 Irish Continental Group 2018 November Trading Update Prese
Slide 33: 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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