Irish Continental Group Plc · EURONEXT:IR5B
Irish Continental — H1 2014 Earnings Presentation
27 slides from Irish Continental's earnings presentation, Jun 30, 2014
Slide 1: Irish Continental Group plc Half Year to 30 June 2014
Irish Continental Group plc Half Year to 30 June 2014 1
Slide 2: ICG Business Units
ICG Business Units 1. Ferries Division Irish Ferries, the leading ferry company operating between UK/Continent and the Republic of Ireland. 2. Container Division Eucon, leading Container shipping operator between Ireland and the N.W. Continent with its own container terminals in Dublin & Belfast. Tu
Slide 3: Ferries Division Routes
Ferries Division Routes e TROON LARNE @<_.@ CAIRNRYAN BELFAST © WARRENPOINT © \y HEYSHAM '@ LIVERPOOL L ROSSLARE 5 HOLYHEAD. IRISH SEA: IRISH FERRIES === STENA —— P&O ee SEATRUCK === IRELAND-FRANCE: IRISH FERRIES === BRITTANY FERRIES === STENA === LD LINES ome O ROSCOFF e CHERBOURG a IRISH CONTINENT
Slide 4: Ferries Revenues 2013
Ferries Revenues 2013 Cars & Freight Passengers 35% 62% (2012 – 33%) (2012 – 64%) Other 3% (2012 – 3%) 4 3
Slide 5: Ferries Costs 2013
Ferries Costs 2013 Other 14% (2012 – 12%) Payroll 24% Depreciation (2012 – 22%) 12% (2012 – 12%) Repairs/Insurance 5% (2012 – 5%) Port Costs 19% (2012 – 20%) Fuel 26% (2012 – 29%) 5 4
Slide 6: Ferries Division
Ferries Division • Brand: Irish Ferries • 3 Conventional combined Car / RoRo ferries (2014: increased to 4) • 1 fast car carrying ferry, light freight • 4,122 sailings - UK (Holyhead 2,696 Pembroke 1,426) (2014: 5,000) Sailing Time - Holyhead Cruise Ferry 3¼ hours Holyhead Fast Ferry 2 hours Pembrok
Slide 7: Distribution
Distribution Car Bookings On-Line 81% Telephone 13% Ports 6% 100% 6 irishferries.com - 2013 4.9m visits 198,000 Bookings 11 6
Slide 8: Passenger Market
Passenger Market CAGR YTD July/Aug H1 1 Year 3 Year 5 Year 2014 2014 2014 2013 2010 - 2008 - 2013 2013 Irish Ferries 4% 9% 1% 2% 1% 1% Republic of Ireland 2% 1% -3% -2% All Ireland 1% 1% -3% -1% 8 7
Slide 9: Car Market
Car Market CAGR YTD July/Aug H1 1 Year 3 Year 5 Year 2014 2014 2014 2013 2010 - 2013 2008 - 2013 Irish Ferries 8% 12% 6% -1% -2% -2% Republic of Ireland 2% 0% -4% -2% All Ireland 2% -1% -4% -2% 9 8
Slide 10: RoRo Market
RoRo Market CAGR YTD July/Aug H1 1 Year 3 Year 5 Year 2014 2014 2014 2013 2010 – 2013 2008 - 2013 Irish Ferries 20% 25% 18% 12% 5% -3% Republic of Ireland 7% 4% 0% -2% All Ireland 4% 3% 0% -2% 2013 2012 2011 2010 1992 -2007 Irish Ferries 12% -6% 9% -9% 12% Republic of Ireland 4% -2% -3% 3% 10% All I
Slide 11: Ferries Division
Ferries Division H1 H1 Change FY 2014 2013 2013 €m €m €m Turnover 77.7 69.4 12.0% 161.7 Operating Costs (67.4) (57.3) 17.6% (120.2) EBITDA 10.3 12.1 -14.9% 41.5 Depreciation/Amortisation (7.5) (8.1) -7.4% (16.6) Operating Profit 2.8 4.0 -30.0% 24.9 • Passenger, Car & On Board revenue up 4% at €41.7m
Slide 12: Container & Terminal Division
Container & Terminal Division • 5 chartered vessels • 2,900 owned and leased containers, 5,600 teu (20ft, 40ft, 45ft, reefers, flats, curtain siders) • 6 ports served (2 owned terminals) • Door to Door (54%) Transport plus Quay to Quay (46%) (feeder) • DFT Terminal in Dublin - Principal terminal in
Slide 13: Eucon Container Routes
. <s Eucon Container Routes poe IRISH CONTINENTAL GROUP BELFAST @ DUBLIN e CORK @ .@ ROTTERDAM © ANTWERP @ RADICATEL
Slide 14: Terminals
Terminals 2 strategically located container handling terminals at Dublin and Belfast. • Annual throughput of 143,000 lifts (2013) • Design Capacity of 260,000 lifts • 3 Gantry Cranes and 8 Rubber Tyre Gantries (RTG’s) • Largest and most modern container terminal in Ireland • 5 minutes from motorway
Slide 15: Container & Terminal Division
Container & Terminal Division H1 H1 Change FY 2014 2013 2013 €m €m Turnover 53.7 52.2 2.9% 104.3 Operating Costs (50.0) (48.5) 3.1% (96.6) EBITDA 3.7 3.7 - 7.7 Depreciation/Amortisation (1.3) (1.3) - (2.6) Operating Profit 2.4 2.4 - 5.1 • Container volumes up 1.5% at 142,700 teu • Terminal volumes u
Slide 16: Container Handling
Container Handling CAGR 1 Year 3 Year 5 Year ICG -2% +3% -4% All Ireland 0% -1% -6% 16 15
Slide 17: ICG - Group Results
ICG - Group Results H1 H1 Change FY 2014 2013 2013 Turnover €130.7m €120.9m 8.1% €264.7m Operating Costs (exc. Dep) €116.7m €105.1m 11.0% €215.5m EBITDA €14.0m €15.8m -11.4% €49.2m Operating Profit €5.2m €6.4m -18.8% €30.0m Finance Costs €(2.5)m €(3.1)m -19.4% PBT €2.7m €3.3m -18.2% Profit on Sale o
Slide 18: ICG Fuel Costs
ICG Fuel Costs H1 2014 H1 2013 FY 2013 Consumption (000 tons) Heavy Fuel Oil 44.0 37.9 79.3 Marine Diesel 7.5 6.6 13.8 51.5 44.5 93.1 Price (€ per ton) Heavy Fuel Oil €475 €491 €479 Marine Diesel €684 €716 €709 Brent Crude (guide) $108.77/€79.37 $107.95/€82.16 $108.67/€81.83 Total Cost (inc. lubs) €
Slide 19: ICG Cash Flow
ICG Cash Flow H1 2014 H1 2013 FY 2013 EBITDA 14.0 15.8 49.2 Working Capital Movement 11.4 9.8 (2.8) Pension Payments in excess of service costs (1.0) (2.4) (5.8) Other 0.1 (0.1) (0.3) Cash Generated from Operations 24.5 23.1 40.3 Interest (1.8) (2.1) (4.3) Tax (0.8) (0.1) (0.2) Capex (6.7) (6.6) (8.
Slide 20: Dividend / Share Buybacks
Dividend / Share Buybacks Cash Returned to Shareholders 2007 - 2014 Dividend/Redemption 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
Slide 21: Group Pension Funds
Group Pension Funds Company Sponsored Funds June 2014 Dec 2013 Dec 2012 Dec 2011 Dec 2010 €m €m €m €m €m Assets 243.4 230.5 213.5 193.5 200.3 Liabilities 287.9 265.2 268.1 215.2 206.5 Deficit (44.5) (34.7) (54.6) (21.7) (6.2) Discount Rate € / £ 2.9% / 4.2% 3.6% / 4.35% 3.8% / 4.4% 5.3% / 4.9% 5.5%
Slide 22: Current Trading / Outlook
Current Trading / Outlook General • Irish and UK economies growing. Expected ECB stimulus in Continental Europe • Current fuel prices are similar to 2013 levels (mandatory low sulphur fuel from 1 January 2015 to affect Eucon. Price surcharge will be applied. Small impact for Irish Ferries (Irish Sea
Slide 23: 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
Slide 24: Appendix
Sulphur Emission Control Area APPENDIX FLEET 24 APP
Slide 25: Ferries - Fleet
Ferries - Fleet Ulysses Year Built 2001 Cost €106m Ulysses GT 50,900 tons Ulysses PAX 1875 Cars 1342 Lane Meters 4.1km Jonathan Swift Speed 22 knots Route Dublin/ Holyhead Jonathan Swift Year Built 1999 Jonathan Swift Cost €38m GT 6,000 tons PAX 800 Cars 200 Speed 39 knots Route Dublin/Holyhead APP
Slide 26: Ferries - Fleet
Ferries - Fleet Year Built 1997 Isle of Inishmore Isle of Inishmore Cost €81m GT 34,000 tons PAX 2200 Cars 855 Lane Meters 2.1km Speed 21.5 knots Route Rosslare/Pembroke Oscar Wilde Year Built 1987 Oscar Wilde Purchased in 2007 €51m - plus upgrade GT 32,000 tons PAX 1458 Beds 1376 Cars 580 Lane Mete
Slide 27: Ferries - Fleet
Ferries - 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 Year Built 1995 Kaitaki Cost €62m GT 22,300 tons PAX 1650 Beds 274 Cars 600 Lane Meters 1.7km Speed 19 knots Route Chartered Out APP 15
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