Irish Continental Group Plc · EURONEXT:IR5B
Irish Continental — Davy Annual Conference 2018
34 slides from Irish Continental's conference presentation, Jan 5, 2018
Slide 1: Company Presentation
Company Presentation 05 January 2018
Slide 2: Half Year 2017 Performance Summary
Half Year 2017 Performance Summary Revenue EBITDA Net Cash Basic EPS €156.1 m €29.6 m €26.7 m 22.8 c +3.7% ‐3.0% +170.4% +121.4% • Revenue for the first half of the year grew by 3.7% to €156.1 million (2016: €150.5 million). In the Ferries division revenue* increased by 2.4% to €93.7 million (2016:
Slide 3: ICG Business Units
ICG Business Units Ferries Division Container & Terminal Division Irish Ferries, the leading ferry company operating Eucon, the leading container shipping operator between the UK/Continent and the Republic of between Ireland and the Continent. Dublin Ireland. The division is also engaged in ship Fer
Slide 4: Ferries Division
Ferries Division Company Presentation – 05 January 2018 4
Slide 5: Ferries Division - Routes
Ferries Division ‐ Routes WEEKLY SAILINGS 2018 Pre W.B. Post W.B. Yeats Yeats delivery delivery Dublin ‐ Holyhead Ulysses 28 28 Jonathan 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* Epsilo
Slide 6: Ferries Division
Ferries Division France 400 sailings • Brand: Irish Ferries 8% • 4 Conventional combined Car/RoRo Pembroke 1,400 ferries sailings • 2 fast car carrying ferries 26% • 4 container ships on charter Holyhead • 2 New Build conventional combined 3,500 sailings car/RoRo ferries on order 66% Always On Power
Slide 7: Ferries Division
Ferries Division Revenue 2016 Costs 2016 (Exclusive of Chartering activities) Charter 4% Other 18% Payroll Cars & 27% Passengers 58% Depreciation Freight 10% 38% Repairs/Insurance Port Costs 5% Fuel 23% 17% Company Presentation – 05 January 2018 7
Slide 8: Ferries Division - Car Market
Ferries Division ‐ Car Market CAGR (Volumes) YTD H1 1 Year 3 Year 7 Year 15 Years 11 NOV 2017 2016 2013 – 2009 – 1992 ‐ 2017 2016 2016 2007 Irish Ferries +2% +3% +3% +6% +2% +4% Republic of Ireland +4% +1% +2% ‐1% +2% All Ireland +3% +2% +1% ‐1% +2% Company Presentation – 05 January 2018 8
Slide 9: Ferries Division - RoRo Market
Ferries Division ‐ RoRo Market CAGR (Volumes) YTD H1 2017 1 Year 3 Year 7 Year 15 Years 2017 2016 2013 – 2009 – 1992 ‐ 2016 2016 2007 Irish Ferries 1% 0% +5% +12% +6% +12% Republic of +5% +7% +7% +3% +10% Ireland All Ireland +4% +6% +4% +2% +6% Company Presentation – 05 January 2018 9
Slide 10: Ferries Division - Ship Chartering activities
Ferries Division ‐Ship Chartering activities • Revenue from ship chartering activities amounted to €8.1 million at 30 June 2017 (including €3.4m inter‐segment revenue) and €6.5 million at 30 June 2016 (€3.2 inter‐segment revenue). • On 17 May 2017, ICG announced that it agreed to the sale of the MV
Slide 11: New Cruise Ferry, W.B. Yeats, ordered from Flensburger
New Cruise Ferry, W.B. Yeats, ordered by ICG from Flensburger (FSG) for delivery June 2018 W.B. Yeats Details Cost €151 million (incl. 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 outp
Slide 12: New Cruise Ferry, New Build 2, ordered from Flensburger
New Cruise Ferry, New Build 2, ordered by ICG from Flensburger (FSG) for Dublin – Holyhead route (for delivery before Mid 2020) Cost: €165.2m (incl. Scrubber) New Build 2 Ulysses Effective Peak Freight Capacity 300 200 Passenger/Crew Capacity 1,800 1,850 Cars 1,500 1,342 Engine output (4 engines) 33
Slide 13: Ferries Division
Ferries Division H1 H1 Change FY 2017 2016 2016 €m €m €m Revenue* 93.7 91.5 +2.4% 209.8 Operating Costs (70.8) (67.6) +4.7% (139.1) EBITDA 22.9 23.9 ‐4.2% 70.7 Depreciation/Amortisation (9.2) (8.5) +8.2% (18.4) Operating Profit 13.7 15.4 ‐11.0% 52.3 Non‐ trading items 29.3 ‐ +100% ‐ Operating profit
Slide 14: Container & Terminal Division
Container & Terminal Division 2016 Results Presentation (6th March 2017) 14
Slide 15: Container & Terminal Division
Container & Terminal Division • 5 chartered vessels • 3,400 owned and leased containers, 6,600 teu (20ft, 40ft, 45ft, reefers, flats, curtain siders) • Operating between the Ports of Dublin, Cork and Belfast to Rotterdam and Antwerp • Door to Door (51%) Transport plus Quay to Quay (49%) (feeder) • D
Slide 16: Container & Terminal Division
Container & Terminal Division Company Presentation – 05 January 2018 16
Slide 17: 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 165,000 lifts Commissioners (BHC) for 5 years from (2015: 162,000 lifts) Jun
Slide 18: Container & Terminal Division - Container Handling Irl.
Container & Terminal Division ‐ Container Handling Irl. CAGR (Volumes) H1 1 Year 3 Year 5 Year 2017 ICG 2% 16% 18% 9% ICG (Excl. 3% 2% 5% 2% Belfast) All Ireland ‐ 5% 7% 4% Company Presentation – 05 January 2018 18
Slide 19: Container & Terminal Division
Container & Terminal Division H1 H1 Change FY 2017 2016 2016 €m €m €m Revenue* 66.4 62.8 +5.7% 123.9 Operating Costs (59.7) (56.2) +6.2% (111.1) EBITDA 6.7 6.6 +1.5% 12.8 Depreciation/Amortisation (1.3) (1.2) +8.3% (2.5) Operating Profit 5.4 5.4 ‐ 10.3 • Container volumes up 6.8% at 163,100 teu (up
Slide 20: Group
Group • Results • Fuel Costs • Cashflow • Dividends/Share Buybacks • Outlook/Current Trading Davy Annual Conference – New York – 05 January 2018 20
Slide 21: Group - Results
Group ‐ Results H1 2017 H1 2016 Change FY 2016 Revenue €156.1m €150.5m +3.7% €325.4m Operating Costs €126.5m €120.0m +5.4% €241.9m (excl. dep) EBITDA €29.6m €30.5m ‐3.0% €83.5m Operating Profit (incl. non‐trading €48.4m €20.8m +132.7% €62.6m items) Basic EPS 22.8c 10.3c +121.4% 31.4c Adjusted EPS 9.
Slide 22: Group - Fuel Costs
Group ‐ Fuel Costs H1 2017 H1 2016 Change FY 2016 Consumption (000 tons) Heavy Fuel Oil 34.7 33.2 +4.5% 69.2 Marine Diesel 18.9 19.7 ‐4.1% 40.9 53.6 52.9 +1.3% 110.1 Average Price (€ per ton) Heavy Fuel Oil €327 €192 +70.3% €233 Marine Diesel €437 €333 +31.2% €371 Brent Crude (guide) $52.7/€48.6 $41
Slide 23: Group - Cash Flow
Group ‐ Cash Flow H1 2017 H1 2016 FY 2016 EBITDA 29.6 30.5 83.5 Working capital movement 19.4 27.0 4.7 Pension payments in excess of service costs (0.5) (1.1) (1.8) Other 0.4 0.1 0.1 Cash generated from operations 48.9 56.5 86.5 Interest paid (0.8) (1.2) (2.3) Tax paid (0.5) (0.2) (2.1) Capex (13.2)
Slide 24: Group - Dividend / Share Buybacks
Group ‐ Dividend / Share Buybacks Cash Returned to Shareholders 2007 ‐ 2017 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 24.9 4.0 2012 3.3c 6.7c 1
Slide 25: Group - Current Trading
Group ‐ Current Trading General • Irish economy continues to grow (ESRI GDP forecast 5% for 2017 and 4% in 2018). The impact of weak sterling against the Euro must be having some impact on some Irish exporters (although benefitting some importers) but to date it does not appear to have had an impact
Slide 26: Refinancing of Group Debt
Refinancing of Group Debt Refinancing of Group Debt Following the maturity of its existing debt facilities ICG has concluded a suite of financing agreement comprising; • A 5 year multicurrency revolving credit facility provided by Allied Irish Banks plc (Co‐ordinating Bank) and Bank of Ireland (Agen
Slide 27: Appendix Fleet
Appendix Fleet Davy Annual Conference – New York – 05 January 2018 27
Slide 28: Appendix - Fleet
Appendix ‐ Fleet Ulysses Year Built 2001 Cost €106m GT 50,900 tons PAX 1875 Cars 1342 Lane Meters 4.1km Speed 22 knots Route Dublin/Holyhead Isle of Inishmore Year Built 1997 Cost €81m GT 34,000 tons PAX 2200 Cars 855 Lane Meters 2.1km Speed 21.5 knots Route Rosslare/Pembroke Company Presentation –
Slide 29: Appendix - Fleet
Appendix ‐ Fleet Jonathan Swift Year Built 1999 Cost €38m GT 6,000 tons PAX 800 Cars 200 Speed 39 knots Route Dublin/Holyhead Oscar Wilde Year Built 1987 Purchased in 2007 ‐ plus upgrade €51m GT 32,000 tons PAX 1458 Beds 1376 Cars 580 Lane Meters 1.2km Speed 21.5 knots Route Rosslare/France Company
Slide 30: Appendix - Fleet
Appendix ‐ Fleet Epsilon Year Built 2011 GT 26,375 tons PAX 500 Beds 272 Lane Meters 2.8km Speed 23 knots Route Dublin/Holyhead, Dublin/France Westpac Express Year Built 2001 Cost $13.25m GT 8,400 tons PAX 900 Cars 251 Speed 35 knots Company Presentation – 05 January 2018 30
Slide 31: Appendix - Fleet
Appendix ‐ Fleet New Build – W.B. Yeats Delivery Mid 2018 Cost (incl. Scrubber) €151m GT 55,000 tons Passenger & Crew Capacity 1,885 Beds 1,885 Cars (Max) 1,216 Lane Meters (excl Car Deck) 2.8km Speed 22.5 knots New Build for Dublin ‐ Holyhead Delivery Mid 2020 Cost (incl. Scrubber) €165.2m GT 67,30
Slide 32: 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 Company Presentation – 05 January 2018 32
Slide 33: Appendix - Fleet
Appendix ‐ Fleet Elbtrader IMO 9388534 Built 2008 LOA 139.60 Breadth 22 GT 8,246 Dead Weight 11,153 Size TEU 974 TEU @ 14tns 580 Elbcarrier IMO 9388510 Built 2007 LOA 139.60 Breadth 22 GT 8,246 Dead Weight 11,166 Size TEU 974 TEU @ 14tns 580 Company Presentation – 05 January 2018 33
Slide 34: Disclaimer
Disclaimer This presentation contains confidential information including price‐sensitive information the use of which may be regulated or prohibited by applicable legislation including securities law relating to insider dealing and market abuse and you undertake not to use any such information for a
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