Getlink Se · EURONEXT:GET
Getlink — Groupe Eurotunnel — H1 2015 Earnings Presentation
40 slides from Getlink's earnings presentation, Jul 22, 2015
Slide 1: 2015 half-year results
2015 half-year results 22 July 2015 Jacques Gounon Chairman & Chief Executive Officer The world leader in rolling motorways The reference in respect for the environment
Slide 2: 2015 half-year results: agenda
Groupe Eurotunnel SE 2015 half-year results: agenda Eurotunnel Group Maritime activities (MyFerryLink) Rail freight activities (Europorte) Fixed Link Concession activities (Eurotunnel) H1 2015 financial results (Eurotunnel Group) Developments and outlook (Eurotunnel Group) 2
Slide 3: Eurotunnel Group in H1 2015
Eurotunnel Group In H1 2015 The world leader in rolling motorways The reference in respect for the environment
Slide 4: A 100% privately-owned group
Groupe Eurotunnel SE A 100% privately-owned group GET shares listed on NYSE Euronext Paris and London • Market capitalisation on 21 July 2015: €7.4Bn • Share performance since 01/01/2015 : +25% GET share Concessionaire of the cross-Channel CAC40 Fixed Link SBF120 until 2086 01/01/2015 21/07/2015
Slide 5: CSR of Eurotunnel Group
CSR of Eurotunnel Group Further progress in H1 2015 Publications • CSR Policy Charter (March) • Global Compact, communication on progress (May) Inducting young people into the Group • 100 apprentices or students on professional training contracts • Participation in the "Jeunes d’Avenirs" exhibit
Slide 6: Maritime activities: MyFerryLink
Maritime activities MyFerryLink The world leader in rolling motorways The reference in respect for the environment
Slide 7: MyFerryLink in H1 2015
MyFerryLink in H1 2015 Activity (vs H1 2014) • 233,584 trucks (+27%) • 116,406 cars (+7%) • 1,073 coaches (+15%) Increase in average yield Market share for freight at 11.6% Market share for cars at 5.7% In €M H1 2015 Variance H1 2014 Revenue 52 +33% 39 Operating costs -54 +7% -50 EBITDA -2 +
Slide 8: Legal proceedings - Competition & Markets Authority
Legal proceedings - Competition & Markets Authority MyFerryLink Reminder • 20 August 2012: launch of MyFerryLink commercial service • 9 January 2015: the Competition Appeal Tribunal (CAT) confirms the decision to prohibit MyFerryLink from operating the ferries from the port of Dover, with a 6-mont
Slide 9: Rail freight activities in H1 2015: Europorte
Rail freight activities in H1 2015 Europorte The world leader in rolling motorways The reference in respect for the environment
Slide 10: Europorte: rail freight
Europorte: rail freight No.1 private rail operator UK/FR Excellence in railway logistics, hauling of trains and management of railway infrastructure in ports Around 1,100 trains hauled per week in the UK/FR FR • Consolidation of existing activities and start of new contracts in H1 2015 • New c
Slide 11: Europorte and its subsidiaries
Europorte and its subsidiaries New improvement in result In €M H1 2015 Variance H1 2014* Revenue 154 +13% 136 Operating costs -143 +11% -129 +€4M EBITDA 11 +46% 7 Double-digit growth in revenue Operating costs up, due to: Growth in activity Start-up costs for new contracts Ongoing plan to stre
Slide 12: Fixed Link Concession activities in H1 2015
Fixed Link Concession activities in H1 2015 Eurotunnel The world leader in rolling motorways The reference in respect for the environment
Slide 13: Le Shuttle for passengers – H1 2015
Le Shuttle for passengers – H1 2015 Sustained dynamism of car traffic 1,159,863 cars transported in H1 2015 : Car volumes (‘000s) +4 % 1,180 +4% Eurotunnel market share stable at 54.8% 1,150 1,160 for the period 1,120 +5% 1,120 Continued growth in yield 1,090 1,060 1,071 Excellent outlook fo
Slide 14: Truck Shuttles – H1 2015
Truck Shuttles – H1 2015 Volumes and yield up Truck volumes (‘000s) 752,290 trucks transported 800 in H1 2015, +8% vs H1 2014 750 +8% 752 Eurotunnel market share stable 700 +3% at 37.5% for the period, 38.3% in June 699 650 678 Average yield continuously improving 600 Traffic sustained by th
Slide 15: High-speed passenger trains
High-speed passenger trains Best 2nd quarter ever Eurostar passengers* (‘000s) Traffic stable in Q1 2015: impact of the terror attacks in Paris, 5,200 +2% traffic disruptions and reduction 5,000 +2% 5,121 in services to Disneyland 5,041 4,945 Paris at beginning of 2015 4,800 3% growth in traffic
Slide 16: Rail freight network – H1 2015
Rail freight network – H1 2015 Return to a normal increase in traffic Number of rail freight trains +4% increase in number of freight trains and +6% in tonnage of goods 1,600 transported +4% 1,500 1,536 Strong growth in traffic in Q1 2015 but 1,483 slowdown in Q2 2015 : 1,400 +15% industrial con
Slide 17: Fixed Link: No.1 operator on the Short Straits
Fixed Link No.1 operator on the Short Straits 10.3 million passengers through the Tunnel in H1 2015 • Including 5.2 million on Eurotunnel Shuttles • And 5.1 million in Eurostar trains Around 59,000 trains through the Channel Tunnel of which 48,000 Eurotunnel Shuttles 105,000 pets (dogs and cat
Slide 18: Fixed Link: continued growth in revenue
Fixed Link Continued growth in revenue In €M H1 2015 Variance H1 2014* Revenue 443 +6% 418 Shuttle Services 275 +9% 252 Railway Network 160 +1% 159 Other revenues 8 +9% 7 Operating costs -200 +9% -183 EBITDA 243 +3% 235 Strong increase in Shuttle revenue: +9% Railway Network: increase in revenue
Slide 19: Increase in migrant pressure in the Calais region
Fixed Link Increase in migrant pressure in the Calais region FR Increase in intrusion attempts, operating disruptions and accidents • 20,000 migrants intercepted on site in H1 2015 and more than 10,000 from 1st to 15 July • 3 dead and several tens of injured including 3 seriously • 1,000 Shuttle d
Slide 20: Cross-Channel Fixed Link developments in H1 2015
Cross-Channel Fixed Link Developments in H1 2015 (June) Railway Usage Contract application agreement • Signed by Eurotunnel and the Railway Networks for Eurostar • On the contributions to operating, maintenance and renewal costs of the cross-Channel Fixed Link railway network Regulation of the C
Slide 21: Financial results for the 1st half of 2015
Financial results for the 1st half of 2015 Eurotunnel Group The world leader in rolling motorways The reference in respect for the environment
Slide 22: Group revenue
Group revenue Strong growth: +€56M in H1 2015 In €M 649 700 593 551 +9% 52 MyFerryLink +33% 600 +8% 39 30 500 136 154 Europorte +13% 123 400 160 152 159 300 443 200 Fixed Link +6% 239 252 275 (+9% Eurotunnel Shuttles) 100 0 7 7 8 H1 2013* H1 2014* H1 2015 Other revenues Eurotunnel Shuttles Railway N
Slide 23: Group operating costs
Group operating costs Activity up In €M 397 400 362 54 330 +10% MyFerryLink +9 % 350 +10% 50 300 46 143 250 129 Europorte +11% 114 200 150 100 183 200 170 Fixed Link +9% 50 0 H1 2013* H1 2014* H1 2015 Increase in activity for all the Group’s segments Non-recurring items Strengthening of the se
Slide 24: Group EBITDA
Group EBITDA Operating margin up by €21M In €M 252 231 260 221 +9% +4% Europorte +€4M 7 11 210 9 160 228 235 243 110 Fixed Link +€8M 60 10 -16 -11 -2 -40 MyFerryLink +€9M H1 2013* H1 2014* H1 2015 6th consecutive year of EBITDA increase for the Fixed Link 24 * Recalculated at H1 2015 exchange rate
Slide 25: Group operating profit (EBIT)
Group operating profit (EBIT) Up by €23M (+16%) En M€ 170 137 147 180 +16% 5 Europorte +€3M +7% 140 3 2 100 172 158 153 Fixed Link +€14M 60 20 -13 -7 -19 MyFerryLink +€6M -20 H1 2013* H1 2014* H1 2015 25 * Recalculated at H1 2015 exchange rate: £1 = €1.391
Slide 26: CAPEX: to support growth in activity
CAPEX: to support growth in activity and to secure the future In €M 57 60 45 1 50 35 MyFerryLink 40 31 4 30 33 Europorte 20 16 25 10 15 12 Fixed Link 0 H1 2013* H1 2014* H1 2015* Fixed Link Investments in H1 2015: Terminal 2015, rerailing Europorte Purchase of new locomotives, to be refinanced l
Slide 27: Net finance costs
Net finance costs Impact of lower inflation In €M Nominal value of the debt: €4Bn at 30/06/2015** 190 151 144 136 140 22 -5% 17 -7% 8 90 130 128 129 40 -1 -1 -1 -10 H1 2013* H1 2014* H1 2015 Interest payable Term Loan indexation Finance income Debt repayments in H1 2015: €19M** Total reduction
Slide 28: Group net result
Group net result Profit up by €44M In €M 39 40 30 20 -5 40 10 -8 0 -3 -1 -6 -2 -2 -10 H1 2013* H1 2014* H1 2015 Result before tax Income tax expenses 28 * Recalculated at H1 2015 exchange rate: £1 = €1.391
Slide 29: Summary of H1 2015 results
Eurotunnel Group Summary of H1 2015 results Strong growth in revenues: +9% at €649M Free cash flow: €77M (vs €12M at H1 2014) Scheduled repayment of the Term Loan: €18M EBITDA at €252M, up by €21M Operating profit (EBIT) at €170M, up by €23M Result before tax: €40M profit (+€43M vs H1 20
Slide 30: Treasury: serving shareholders
Treasury Serving shareholders 2014 dividend paid in 2015 = €97M Term Loan repayment = €18M Net CAPEX = €53M Cash position = €389M at 30/06/2015 (vs €385M at 31/12/2014) A sustainable dividend policy 30
Slide 31: Developments and outlook
Developments and outlook Eurotunnel Group The world leader in rolling motorways The reference in respect for the environment
Slide 32: Vision 2020 – Fixed Link
Vision 2020 – Fixed Link A collaborative approach to address challenges 5 factors favourable to Eurotunnel • Reduction in competition by the CMA to 2 only maritime operators • Continuation of growth in the Car and Truck markets on the Short Straits • Implementation of the Marpol environmental prot
Slide 33: Passenger Shuttles by 2020
Passenger Shuttles by 2020 Traffic and strategy Current car market share > 54.8% A fleet of 9 Shuttles Continuous increase in Passenger Shuttle traffic in excess of the anticipated market growth Almost 100% load factor during peak traffic periods Strategy, a mix between: • Increase in aver
Slide 34: Le Shuttle: customer experience
Le Shuttle: customer experience Priority to quality of service Investments and innovations based on their benefit to the customer Constant improvement of service • Opening of new Pets building in Coquelles in August: larger, more user-friendly and secure • New online booking module for Smartphon
Slide 35: Truck Shuttles by 2020
Truck Shuttles by 2020 Traffic and investments 2015 • Growth in Truck market in H1 2015: +8.2% • Just a 2.5% increase in traffic each year would lead to a global market of 4.4M trucks in 2020 • Marpol regulations for ferries represent an opportunity to generate more traffic for the Truck Shuttles
Slide 36: Truck Shuttles: growth in traffic and Terminal 2015
Truck Shuttles Growth in traffic and Terminal 2015 Quality of service further improved • April: flexible pricing introduced on 10/20 days of peak traffic in 2015 • Reinforcement of security measures and real-time information to customers • New Shuttle Freight extranet to further improve relations
Slide 37: High-speed passenger trains
High-speed passenger trains A potential of 14M passengers per year New destinations • May 2015: London-Marseille in 6h27 via Lyon (4h30) and Avignon (6h00) • June: renovation of the terminal at Lille Europe station • 2015/2016: extension of the terminal at Gare du Nord station in Paris • December
Slide 38: Optimise assets: ElecLink
Optimise assets ElecLink, an electricity interconnection FR-UK Added-value for the Channel Tunnel and development of strategic infrastructure Interconnection of electricity networks in Europe • ElecLink, joint venture Eurotunnel Group/Star Capital Partners (49/51%) • 1,000MW interconnection betw
Slide 39: Europorte: rail freight development strategy
Europorte: rail freight A development strategy Valorisation of the expertise in infrastructure operations and maintenance to renovate the lines of the feeder networks Opportunities in management of private infrastructures Diversification of transport activities in Europe Development of partn
Slide 40: Eurotunnel Group: Sustainable growth
Eurotunnel Group Sustainable growth €649M revenue, €252M EBITDA and €39M profit after tax Concessionaire until 2086 of a vital binational link between Great Britain and Europe The most environmentally-friendly cross-Channel transport system World leader in piggyback transport and major playe