Slide 1: FirstGroup 2025 Half Year Results
FirstGroup 2025 Half Year Results Thursday 14 November 2024
Slide 2: Agenda
Agenda 1. Overview 2. Financial review 3. Business review 4. Summary 2
Slide 3: Progressing our strategy to maximise shareholder returns
Progressing our strategy to maximise shareholder returns ▪ Strong performance in H1 2025 ▪ First Bus: portfolio diversification, improved operational performance and margin expansion ▪ First Rail: growing existing open access earnings, adding capacity and bidding for new contracts ▪ Strong sustainab
Slide 4: Our strategic framework continues to drive positive momentum
Our strategic framework continues to drive positive momentum Lead in environmental and Diversify our portfolio Deliver, day in day out Drive modal shift social sustainability ✓ First Bus on track to achieve ✓ First Bus underlying1 ✓ FirstGroup upgraded to ✓ Acquisitions and contract 10% adjusted ope
Slide 5: Agenda
Agenda 1. Overview 2. Financial review 3. Business review 4. Summary 5
Slide 6: Underlying profit maintained in H1 2025; 5% growth in adjusted EPS
Underlying profit maintained in H1 2025; 5% growth in adjusted EPS £m (from continuing H1 2025 H1 2024 Change % ▪ Adjusted revenue increased by £14.8m operations) ▪ Adjusted profit in line with the prior year which Adjusted revenue 649.6 634.8 2.3% included an extra week of trading (+c.£1.4m) and c.
Slide 7: Improved operational performance is driving growth in First Bus
Improved operational performance is driving growth in First Bus Adjusted operating profit up 14% despite the extra week of trading in H1 2024 (+c.£1.4m EBIT) ▪ Underlying2 passenger volumes growth +4% aided by improved service delivery, free travel for under 22s scheme in Scotland and £2 fare cap in
Slide 8: First Rail: continued focus on operational delivery
First Rail: continued focus on operational delivery £m H1 2025 H1 2024 Change ▪ DfT TOCs H1 2025 adjusted operating profit DfT TOCs attributable earnings reconciliation lower than prior year which included higher than Adj. operating profit from DfT TOCs1 44.1 54.9 (10.8) accrued final variable fee p
Slide 9: Sustained growth in Group adjusted EPS
Sustained growth in Group adjusted EPS Strong financial performance in H1 2025 as we continue to grow, diversify our earnings and return capital to shareholders 3.9p 3.3p ▪ DfT TOCs attributable earnings lower due mainly to higher than accrued ▪ Central costs lower due to continued efficiencies fina
Slide 10: Strong cash generation enabling investments and returns
Strong cash generation enabling investments and returns £72.1m of cash generated from operations ▪ Post tax management fee from DfT TOCs received a year in arrears and ▪ Disposal proceeds comprise battery sales to the Hitachi joint arrangement paid mainly in H2 ▪ Pension and EBT comprises cash flows
Slide 11: FY 2025 full year financial outlook
FY 2025 full year financial outlook ▪ Group: current trading and outlook for FY 2025 slightly ahead of expectations set out in June ▪ Interest of £50-55m, includes DfT TOCs IFRS16 interest of c.£40m Financial performance ▪ First Bus: further progress expected in H2 2025, including a 10% adjusted ope
Slide 12: We expect to maintain adjusted earnings per share in FY 2026
We expect to maintain adjusted earnings per share in FY 2026 ▪ First Bus - We anticipate growth in adjusted operating profit in FY 2026, with operational and yield efficiencies and organic and inorganic growth driving increased revenues ▪ First Rail - DfT TOCs: as the contracts transition, we antici
Slide 13: Agenda
Agenda 1. Overview 2. Financial review 3. Business review 4. Summary 13
Slide 14: First Bus on track to achieve 10% margin in H2 2025
First Bus on track to achieve 10% margin in H2 2025 ▪ Adjusted operating profit margin of 8.0%; on First Bus revenue (£m) and adjusted operating profit margin track to reach 10% in H2 2025 (H1 2024: 7.1%) 9.4% 7.1% 8.0% ▪ Underlying1 passenger volume growth of 4% 7.9% 4.8% ▪ Revenue per mile increas
Slide 15: First Bus has significant scope to grow
First Bus has significant scope to grow We intend to win our fair share of the franchise market, grow our Adjacent Services portfolio and leverage our decarbonisation infrastructure and capabilities Franchising Adjacent Services Electrification ▪ Timelines remain uncertain but ▪ Acquisitions over th
Slide 16: First Rail focused on operational delivery
First Rail focused on operational delivery We are an experienced operator focused on delivering on our contracts, driving enhanced service delivery, innovation and effective cost control DfT TOCs ▪ H1 2025 attributable net income of £14.0m; £23.2m in H1 2024 included c.£13m uplift from higher than a
Slide 17: Continuing to grow our First Rail open access business
Continuing to grow our First Rail open access business Lumo and Hull Trains continue to grow their earnings as we work to increase capacity and add new services Hull Trains & Lumo H1 2025 H1 2024 Change - Open Access growth: ▪ Grand Union track access agreement acquisition Revenue (£m) 51.9 46.3 12%
Slide 18: Agenda
Agenda 1. Overview 2. Financial review 3. Business review 4. Summary 18
Slide 19: Our strategy continues to deliver as we navigate the industry transition in rail
Our strategy continues to deliver as we navigate the industry transition in rail ▪ FY 2025 outlook slightly ahead of expectations set out in June ▪ We expect to maintain adjusted earnings per share in FY 2026 as we deliver a higher proportion of Group earnings from First Bus and open access rail ▪ F
Slide 20: Appendix
Appendix First (ao
Slide 21: Appendix: Sustainability highlights
Appendix: Sustainability highlights Leveraging the Group’s expertise and capabilities, we strive to be leaders in environmental and social sustainability Selected FirstGroup credentials and ratings: Environment ▪ Membership of UN Global Compact Network; ranked top performing bus and rail operator To
Slide 22: Appendix: Definitions
Appendix: Definitions ▪ 'Adjusted revenue' is revenue excluding that element of DfT TOC revenue, and related intercompany eliminations, where the Group takes substantially no revenue risk. The Adjusted revenue measure includes management and performance fee income earned by the Group from its DfT TO
Slide 23: Appendix: Group Adjusted revenue and earnings
Appendix: Group Adjusted revenue and earnings Our revenue and earnings include underlying fees from rail contracts to reflect the Group's risk and to look through IFRS 16 distortions £m H1 2025 H1 2024 £m H1 2025 H1 2024 Adjusted revenue reconciliation: Group Adjusted earnings comprise: Statutory re
Slide 24: Appendix: Reconciliation of Statutory to Adjusted cash flows
Appendix: Reconciliation of Statutory to Adjusted cash flows Discontinued & Ring fenced cash £m Statutory IFRS 16 Reclassifications Adjusted adjusting items movements EBITDA 367.4 (5.4) (22.7) (260.8) - 78.5 Management fees - - 9.2 - - 9.2 Working capital (6.8) (0.2) (5.8) (7.0) 4.2 (15.6) Cash flow
Slide 25: Appendix: IFRS 16 (leases)
Appendix: IFRS 16 (leases) ▪ As at 28 September 2024, £1.2bn of leased assets were recognised as Right of Use assets on the balance sheet. H1 2025 H1 2024 £m Under IAS17 IFRS 16 effect Under IFRS 16 Under IFRS 16 Adjusted and Continuing EBITDA 101.2 +260.8 362.0 344.5 Operating profit 76.7 +24.1 100
Slide 26: Appendix: Group accounting for rail
Appendix: Group accounting for rail The Group includes alternative measures in its financial statements that adjust for the underlying economics of the National Rail Contracts ▪ Although the Group has very limited revenue, cost and contingent capital risk under the DfT National Rail Contracts, under
Slide 27: Important notice
Important notice This presentation includes statements that are, or may be deemed to be, forward-looking statements. These forward-looking statements can be identified by the use of forward-looking terminology, including (but not limited to) the terms anticipates, believes, could, estimates, expects