Irish Continental Group Plc · EURONEXT:IR5B
Irish Continental — H1 2012 Earnings Presentation
27 slides from Irish Continental's earnings presentation, Aug 30, 2012
Slide 1: Irish Continental Group plc Half Year to 30 June 2012
Irish Continental Group plc Half Year to 30 June 2012 30 August 2012 1
Slide 2: Highlights
Highlights • Robust results, EBITDA €14.3m (€16.1m) despite fuel up €4.5m • Interim dividend of 33c unchanged • Sale of Feederlink Shipping & Trading b.v. for up to €29m (subject regulatory approval) • €111.5m tender offer to shareholders for up to 24.91% of •shareholding (subject EGM) 1
Slide 3: Tender Offer
Tender Offer • Tender offer for up to 24.91% of equity at €18.50 per share (6.027 million shares), €111.5m • Premium of 15.6% to closing price of €16.00 (cum div) on 29 August • Premium of 17.1% to volume weighted average price of €15.80 over one month to 29 August • Subject to shareholder approval
Slide 4: ICG Business Units
ICG Business Units 1. Ferries Division Irish Ferries, the leading ferry company operating between UK/Continent and Republic of Ireland 2. Container Division Eucon and Feederlink, leading Container operators between Ireland/UK and the Continent with own container terminals in Dublin & Belfast Turnove
Slide 5: ICG - Group Results
ICG - Group Results H1 2012 H1 2011 Change FY 2011 Turnover €127.1m €126.6m 0.4% €273.3m Operating Costs (exc. Dep) €112.8m €110.5m 2.1% €224.2m EBITDA €14.3m €16.1m -11.2% €49.1m Profit From Operations €5.1m €6.5m -21.5% €28.9m Adjusted EPS 17.7c 24.0c -26.3% 109.9c Basic EPS 14.5c 24.4c -40.6% 111
Slide 6: Results By Division
Results By Division H1 H1 % 2012 2011 Ferries €m €m Revenue 69.5 68.2 1.9% Costs exc. fuel 47.8 49.0 -2.4% Fuel 18.5 16.0 15.6% EBIT 3.2 3.2 N/C Container Revenue 57.6 58.4 -1.4% Costs exc. fuel 45.3 46.7 -3.0% Fuel 10.4 8.4 23.8% EBIT 1.9 3.3 -42.4% 6 5
Slide 7: ICG Cash Flow
ICG Cash Flow H1 2012 H1 2011 FY 2011 EBITDA 14.3 16.1 49.1 Working Capital Movement 6.5 7.3 (5.7) Pension Payments (2.5) (2.2) (4.7) Other (0.7) 0.3 (0.2) Cash generated from Operations 17.6 21.5 38.5 Interest (0.4) (0.4) (1.0) Tax (0.2) (0.4) (1.0) Capex (5.1) (3.7) (6.3) Asset Sales 0.4 - 0.4 Pay
Slide 8: Dividend / Share Buybacks
Dividend / Share Buybacks Cash Returned to Shareholders 2008 - 2012 Dividend/ €m Buyback Redemption 2008 Paid 100c 24.5m 2009 Paid 100c 24.6m 2010 Paid 100c 25.0m 100c 25.1m 4.0m 2011 Paid 33c 8.2m Paid 67c 16.7m 10.2m 2012 Proposed 33c 8.0m _____ 132.1m 14.2m 7
Slide 9: ICG Fuel Costs
ICG Fuel Costs H1 2012 H1 2011 FY 2011 Consumption (000 tons) Heavy Fuel Oil 42.3 43.2 88.2 Marine Diesel 6.8 6.9 15.0 49.1 50.1 103.2 Price (€ per ton) Heavy Fuel Oil €552 €451 €469 Marine Diesel €742 €652 €670 Brent Crude (guide) $113.58 / €87.46 $111.05 / €79.17 $110.79 / €79.62 Total Cost (inc.
Slide 10: Ferries Division
Ferries Division • Brand: Irish Ferries • 3 Conventional combined Car / RoRo ferries • 1 fast car carrying ferry, light freight • 4,100 sailings p.a. - UK (Holyhead 2,650 Pembroke 1,450) Sailing Time - Holyhead Cruise Ferry 3¼ hours Holyhead Fast Ferry 2 hours Pembroke Cruise Ferry 4 hours • 290 sai
Slide 11: Ferries Division
Ferries Division H1 2012 H1 2011 Change 2011 €m €m €m Turnover 69.5 68.2 1.9% 155.5 Operating Costs 58.5 56.8 3.0% 116.2 EBITDA 11.0 11.4 -3.5% 39.3 Depreciation/Amortisation (7.8) (8.2) -4.9% (17.3) Operating Profit 3.2 3.2 22.0 Passenger, Car & On Board revenue up 3% to €41.1 million (2011: €40.0
Slide 12: Ferries Revenues 2011
Ferries Revenues 2011 Cars & Passengers Freight 63% 34% (2010 – 64%) (2010 – 32%) Other 3% (2010 – 4%) 12 11 11
Slide 13: Ferries Costs 2011
Ferries Costs 2011 Other(2010 – 14%) 13% Payroll Depreciation 23% 13% (2010 – 24%) (2010 – 15%) Repairs/Insurance 5% (2010 – 5%) Port Costs 20% (2010 – 20%) Fuel 26% (2010 – 22%) 13 12 11
Slide 14: Irish Sea Routes
lrish Sea Routes DUBLIN eo DUN LAOGHAIRE @\ *° HOLYHEAD 0. IN FISHGUARD "e PEMBROKE a ‘@ SWANSEA ROSSLARE IRISH FERRIES === STENA —— P&O comm SEATRUCK == BRITTANY FERRIES === CELTIC LINK =m FASTNET LINE eae O CHERBOURG {) ROSCOFF Eas IRISH CONTINENTAL GROUP Ulysses Daily Sailing Schedule Freight Dem
Slide 15: Passenger Market
Passenger Market CAGR H1 3 Year 5 Year 2012 2008 - 2011 2006 - 2011 Irish Ferries +1% +1% +2% Republic of Ireland -4% -1% -2% All Ireland -4% -1% -1% 15 14
Slide 16: Car Market
Car Market CAGR H1 3 Year 5 Year 2012 2008 - 2011 2006 - 2011 Irish Ferries -2% -2% 0% Republic of Ireland -7% -1% -1% All Ireland -7% -1% -1% 16 15
Slide 17: RoRo Market
RoRo Market CAGR H1 H1 3 Year 5 Year 2012 2011 2008 – 2011 2006 - 2011 Irish Ferries -5% +12% -7% -4% Republic of Ireland -3% -1% -1% 0% All Ireland -2% 0% -2% -1% 2011 2010 2009 2008 1992 -2007 Irish Ferries +9% -9% -19% -9% +8% Republic of Ireland 0% +3% -12% -4% +10% All Ireland 0% +2% -10% -4% +
Slide 18: Container & Terminal Division
Container & Terminal Division H1 2012 H1 2011 Change FY 2011 €m €m €m Turnover 57.6 58.4 -1.4% 119.1 Operating Costs 54.3 53.7 1.1% 109.3 EBITDA 3.3 4.7 -29.8% 9.8 Depreciation/Amortisation (1.4) (1.4) (2.9) Operating Profit 1.9 3.3 -42.4% 6.9 Container volumes down 7.0% at 190,900 teu Terminal volu
Slide 19: Operations
Operations • 9 chartered vessels • 2,850 owned and leased containers, 5,500 teu (20ft, 40ft, 45ft, reefers, flats, curtain siders) • 11 ports served (2 owned terminals) • Ireland / Continent - Door to Door plus Quay to Quay (feeder) • DFT Terminal in Dublin - Principal terminal in ROI • BCT Terminal
Slide 20: Container Routes
Container Routes ICG owns and operates terminals in Dublin & Belfast. Other ports are operated by third parties. ICG owns and operates terminals in Dublin & Belfast. Other ports are operated by third parties. 22 24 19
Slide 21: Sale of Feederlink Shipping & Trading b.v.
Sale of Feederlink Shipping & Trading b.v. • Agreement on 29 August for sale of Feederlink b.v. to Unifeeder A/S of th Denmark, subject to regulatory approval • Sale proceeds €29m, €20m on closing up to €9m deferred in stages for 12 months subject to certain conditions • Feederlink being sold debt f
Slide 22: Container Handling Irl.
Container Handling Irl. LoLo Market 1.0m Teu’s in 2011 CAGR Market Share 33% H1 2012 H1 1 Year 3 Year 5 Year 2012 2011 2008-2011 2006-2011 ICG -5% +12% -5% +2% All Ireland -2% -2% -10% -7% 22 21
Slide 23: Current Trading / Outlook
Current Trading / Outlook Freight • Weak economic backdrop leading to volume weakness during seasonally weaker summer • ICG operationally geared to any resumption in growth • Closure of competing Belfast/Heysham freight service (August 2012) eliminates some recent excess capacity additions Tourism •
Slide 24: Appendix
Ferries - Fleet APPENDIX FLEET 24
Slide 25: Ferries - Fleet
Ferries - Fleet Ulysses Year Built 2001 Cost €106m GT 50,900 tons PAX 1875 Cars 1342 Lane Metres 4.1km Speed 22 knots Jonathan Swift Year Built 1999 Cost €38m GT 6,000 tons PAX 800 Cars 200 Speed 39 knots APP
Slide 26: Ferries - Fleet
Ferries - Fleet Year Built 1997 Isle of Inishmore Cost €81m GT 34,000 tons PAX 2200 Cars 855 Lane Metres 2.1km Speed 21.5 knots Oscar Wilde Year Built 1987 Purchased in 2007 €51m - plus upgrade GT 32,000 tons PAX 1458 Beds 1376 Cars 580 Lane Metres 1.2km Speed 21.5 knots APP
Slide 27: Ferries - Fleet
Ferries - Fleet Kaitaki Year Built 1995 Cost €62m GT 22,300 tons Kaitaki PAX 1650 Beds 274 Cars 600 Lane Metres 1.7km Speed 19 knots 27 APP 15
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