Irish Continental Group Plc · EURONEXT:IR5B
Irish Continental — FY2017 Earnings Presentation
32 slides from Irish Continental's earnings presentation, Mar 8, 2018
Slide 1: 2017 Results Presentation
2017 Results Presentation 8th March 2018
Slide 2: Full Year 2017 Performance Summary
Full Year 2017 Performance Summary • Revenue for the year grew 3.0% to €335.1 million (2016: €325.4 million). In the Ferries division revenue* increased Revenue by 0.8% to €204.4 million (2016: €202.7 million) while in €335.1m the Container and Terminal division revenue* increased by 6.5% to €130.7
Slide 3: ICG Business Units
ICG Business Units Ferries Division Container & Terminal Division Irish Ferries, the leading ferry Eucon, the leading container shipping company operating between the operator between Ireland and the UK/Continent and the Republic of Continent. Dublin Ferryport Terminals Ireland. The division is also
Slide 4: Ferries Division
Ferries Division Irish Continental Group 2017 Results Presentation - 8th March 2018 4
Slide 5: Ferries Division - Routes
Ferries Division - Routes Weekly Sailings 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* Epsilon /
Slide 6: Ferries Division
Ferries Division Sailings 2017 Brand: Irish Ferries • Brand: Irish Ferries • 4 Conventional combined Car/RoRo ferries 26% 8% Holyhead: 3,500 • 2 fast car carrying ferries Sailings • 4 container ships on charter 26% 66% Pembroke: 1,400 • 2 New Build conventional combined car/RoRo Sailings ferries on
Slide 7: Ferries Division
Ferries Division Car Market CAGR (Volumes) 1 Year 3 Years 5 Years 10 Years 25 Years 2017 2014 – 2017 2012 - 2017 2007 - 2017 1992 - 2017 Irish Ferries +3% +4% +5% +1% +2% Republic of Ireland +2% +1% +2% -1% +1% All Ireland +2% +1% +1% -1% +1% RoRo Market CAGR (Volumes) 1 Year 3 Years 5 Years 10 Year
Slide 8: Ferries Division - Ship Chartering activities
Ferries Division -Ship Chartering activities • Revenue from ship chartering activities amounted to €15.1 million at 31 December 2017 (including €6.9 million inter-segment charter revenue) and €15.8 million at 31 December 2016 (€6.7 million inter- segment charter revenue). • On 17 May 2017, ICG annou
Slide 9: New Cruise Ferry, W.B Yeats ordered from Flensburger for delivery June 2018
New Cruise Ferry, W.B Yeats ordered by ICG from Flensburger (FSG) for delivery June 2018 Cruise Ferry Details Cost €144 million (excl 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 outpu
Slide 10: New Cruise Ferry, New Build 2, for Dublin – Holyhead route
New Cruise Ferry, New Build 2, ordered by ICG from Flensburger (FSG) for Dublin – Holyhead route (for delivery before mid 2020) New Build 2 MV Ulysses Effective Peak Freight Capacity 300 200 Passenger/Crew Capacity 1,800 1,850 Cars 1,500 1,342 Engine output (4 engines) 33,600kw 31,200kw Speed 23.0 k
Slide 11: Ferries Division
Ferries Division 2017 2016 Change €m €m Revenue* 212.1 209.8 +1.1% Operating Costs (144.8) (139.1) +4.1% EBITDA 67.3 70.7 -4.8% Non-trading item 28.7 - 100% Depreciation/Amortisation (18.2) (18.4) -1.1% Operating Profit 77.8 52.3 +48.8% • Passenger, Car & On Board revenue down 0.5% to €117.9 million
Slide 12: Container & Terminal Division
Container & Terminal Division Irish Continental Group 2017 Results Presentation - 8th March 2018 12
Slide 13: Container & Terminal Division
Container & Terminal Division • 5 chartered vessels • 3,400 owned and leased containers, 6,700 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 14: Container & Terminal Division
Container & Terminal Division Irish Continental Group 2017 Results Presentation - 8th March 2018 14
Slide 15: 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 172,800 lifts Commissioners (BHC) for 5 years from (2016: 165,000 lifts) Jun
Slide 16: Container & Terminal Division - Container Handling Irl.
Container & Terminal Division - Container Handling Irl. CAGR (Volumes) 1 Year 3 Year 5 Year ICG 3% 17% 10% ICG*Excl. Belfast 5% 4% 4% All Ireland 3% 5% 5% (Estimate) Irish Continental Group 2017 Results Presentation - 8th March 2018 16
Slide 17: Container & Terminal Division
Container & Terminal Division 2017 2016 Change €m €m Revenue* 131.9 123.9 +6.5% Operating Costs (118.2) (111.1) +6.4% EBITDA 13.7 12.8 +7.0% Depreciation/Amortisation (2.5) (2.5) - Operating Profit 11.2 10.3 +8.7% • Container volumes up 5.9% at 321,400 teu. • Terminal volumes up 3.0% at 296,800 lift
Slide 18: Group
Group • Results • Fuel Costs • Cash Flow • Share Performance/Dividends/Share Buybacks • Current Trading/Outlook • Refinancing of Group Debt Irish Continental Group 2017 Results Presentation - 8th March 2018 18
Slide 19: Group - Results
Group - Results 2017 2016 Change Revenue €335.1m €325.4m +3.0% Operating Costs (exc. Dep) €254.1m €241.9m +5.0% EBITDA €81.0m €83.5m -3.0% Non-trading items €28.7m - +100% Operating Profit €89.0m €62.6m +42.2% Basic EPS 44.1c 31.4c +40.4% Adjusted EPS 29.0c 31.4c -7.6% Dividend Per Share 12.16c 11.5
Slide 20: Group - Fuel Costs
Group - Fuel Costs 2017 2016 Change Consumption (000 tons) Heavy Fuel Oil 71.0 69.2 +2.6% Marine Diesel 39.9 40.9 -2.4% 110.9 110.1 +0.7% Average Price (€ per ton) Heavy Fuel Oil €310 €233 +33% Marine Diesel €438 €371 +18% Brent Crude (guide) $55/€48 $45/€40 +20% Total Cost (inc. lubs) €40.3m €32.2m
Slide 21: Group - Cash Flow
Group - Cash Flow 2017 2016 €m €m EBITDA 81.0 83.5 Working Capital Movement (1.9) 4.7 Pension Payments (1.1) (1.8) Other (0.6) (0.1) Share-based payments 1.1 0.2 Cash Generated from Operations 78.5 86.5 Interest paid (1.1) (2.3) Tax (5.6) (2.1) Purchases of property, plant and equipment & intangible
Slide 22: Group – Share Performance/Dividends/Share Buy Backs
Group – Share Performance/Dividends/Share Buy Backs ICG shares: Total return CAGR last 10 years to 31/12/17 14.8% Total return CAGR since flotation on 14/4/88 17.8% Cash Returned to Shareholders 2007 - 2017 Buyback/ Year Interim (Cent) Final (Cent) Total (Cent) €m Tender Offer €m 2007 Nil 10.0c 10.0
Slide 23: Group - Current Trading/Outlook
Group - Current Trading/Outlook General • HSC Jonathan Swift sold to Balearia Eurolines Maritimas for €15.5m. To be replaced by the HSC Westpac Express, renamed Dublin Swift. • Irish economy continues to grow (ESRI GDP forecast 5% for 2017 and 4% in 2018). The impact of weak sterling against the Eur
Slide 24: 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 (Agent Bank) extendable by up t
Slide 25: Appendix Fleet
Appendix Fleet Irish Continental Group 2017 Results Presentation - 8th March 2018 25
Slide 26: 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 Irish Continental Group
Slide 27: Appendix – Fleet
Appendix – Fleet Jonathan Swift (sold for delivery April 2018) 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
Slide 28: 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 W.B Yeats Delivery Mid 2018 Cost (incl. Scrubber) €151m GT 54,975 tons PAX 1,885 Beds 1,885 Cars (Max) 1,216 Lane Meters (excl Car Deck) 2.8km Speed 22.5 kno
Slide 29: Appendix – Fleet
Appendix – Fleet Dublin Swift (formerly Westpac Express) Year Built 2001 Cost $13.25m GT 8,400 tons PAX 900 Cars 251 Speed 35 knots Route Dublin-Holyhead from April 2018 New Build for Dublin - Holyhead Delivery Early 2020 Cost (incl. Scrubber) €165.2m GT 67,300 tons Passenger and Crew Capacity 1,800
Slide 30: 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 Irish Continental Group 2017 Results Presentation - 8th March
Slide 31: 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 Irish Continental Group 2017 Results Presentation - 8th Ma
Slide 32: 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
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