Mobico Group Plc · LSE:MCG
Mobico — H1 2024 Earnings Presentation
26 slides from Mobico's earnings presentation, Jun 30, 2024
Slide 1: Half Year Results for the period ended 30 June 2024
Half Year Results For the period ended 30 June 2024
Slide 2: Introduction
Introduction Ignacio Garat Group CEO Mobico Group Half Half Year Year Results Results 2 2
Slide 3: Key messages HY 24
Key messages HY 24 FY Guidance unchanged, progress on cash and continuing positive passenger demand FY 2024 Guidance on track • Group Adjusted EBIT unchanged range £185m to £205m • Improvement in covenant gearing, relative to FY 23, targeted 31 December 2024 • Critical discussions with German PTAs i
Slide 4: Passenger growth
Passenger growth Continuing positive momentum in passenger growth YoY passenger growth in H1 ALSA Long Passenger growth 18% Haul (Boosted by repeat of the multivoucher scheme) Passenger growth ALSA Urban 5% (Despite the strike impact in Bilbao) Corporate Passenger growth Shuttle (Reflecting increase
Slide 5: Pricing improvements
Pricing improvements H1 revenue growth reflects pricing actions already delivered, more secured for H2 Secured for H2 Delivered in H1 (incremental) ALSA Long 6.8% increase in average ticket Dynamic real time pricing led by Haul prices in H1 24 vs. H1 23 customer demand (across 9 main corridors) SY23
Slide 6: Key Contract Wins
Key Contract Wins Significant contracts won, retained and mobilised Spotlight on WeDriveU - 5 big contract wins • Overall 23 new contract wins at the Group level, ahead of the same point last year • Revenue values of £91m p.a. (H1 23: £72m), and incremental total contract values of £622m • Average E
Slide 7: Summary
Summary FY Guidance unchanged, progress on cash and continuing growth FY 24 Guidance on track, adjusted EBIT £185m - £205m Focus on deleverage Profit & cash improvement initiatives on target Continuing, positive passenger demand Contract wins and successful retentions & mobilisations Mobico Group Ha
Slide 8: Financial Review
Financial Review Helen Cowing Group CFO Mobico Group Half Half Year Year Results Results 8 8
Slide 9: First 90 days
First 90 days Smooth handover and transition Engaging with the business for sustainable profitable growth Strengthening finance organisation by increasing bench strength, affordably Maintaining momentum on cost reduction and restructuring programmes (Accelerate) Mobico Group Half Year Results Focusi
Slide 10: 2024 H1 financial overview
2024 H1 financial overview Robust P&L growth and improved free cash flow, lower covenant gearing Restated1 Adjusted HY 24 HY 23 Change FY 23 Revenue £1.65bn £1.57bn 5.4% £3.15bn Group Operating Profit £71.2m £57.5m 23.8% £168.6m Basic EPS 0.3p 1.0p (0.7)p 4.5p DPS 0.0p 1.7p 1.7p 1.7p Key Metrics Fre
Slide 11: Divisional performance
Divisional performance Record H1 results in ALSA and the improvement in North America, were delivered alongside ongoing recovery in UK and Germany Revenue Adjusted Operating Profit YoY% YOY % HY 24 change HY 24 HY 23 change1 ALSA £617.1m 13.0% £82.5m £57.6m 46.9% North America £609.3m 6.4% £21.4m £1
Slide 12: Cash Flow
Cash Flow Free cash flow generation ahead of last year, re-invested in first half to fuel long term profitability and growth (£m) H1 24 H1 23 EBITDA 183.8 166.7 Net maintenance capex (89.7) (55.0) Working capital 23.9 (3.6) Pension deficit (3.8) (3.7) Operating cash flow 114.2 104.4 Tax & interest (
Slide 13: Net Debt
Net Debt Covenant net debt stable vs FY 23 and improvement in covenant gearing from 3.0x to 2.8x (£m) H1 24 H1 23 FY 23 Free Cash Flow after 20.8) 76.3) CapEx and M&A Adjusting items (38.7) (23.5) Hybrid coupon (21.3) (21.3) Other, including FX 4.5) 7.5) Net Funds Flow (34.7) 39.0) Closing Net Debt
Slide 14: Prioritising debt reduction
Prioritising debt reduction Through profit improvement, rigorous cash management and the disposal of NA School Bus. Current debt level Potential disposal to deleverage Accelerate North America School Bus disposal plans No change to the debt structure at £1.2bn 2.0 progressing in line with expect
Slide 15: Accelerate restructuring programme
Accelerate restructuring programme The Accelerate Programme is delivering significant and sustainable bottom-line benefits in FY24 FY 24 FY 25 & beyond Organisational Design Accelerate 1.0 Procurement £30m of savings will be delivered in FY 24 Productivity from Accelerate 1.0. Digital Enablement Acc
Slide 16: Financial imperatives
Financial imperatives Focusing on profitable growth and deleverage Maintaining momentum on cost reduction and restructuring programmes (Accelerate) Building a sustainable, profitable cash generative business into the future Mobico Group Half Year Results 16
Slide 17: Operational Review
Operational Review Ignacio Garat Group CEO Mobico Group Half Half Year Year Results Results 17 17
Slide 18: Operational review key highlights
Operational review key highlights Relentless focus on improving operating effectiveness and profitability ALSA North Leadership America changes delivered record H1 results won and gained Making an impact routes in both in UK & Germany WeDriveU and and School Bus School Bus Mobico Group Half Year Res
Slide 19: ALSA
ALSA Record revenue performance and strong profit growth Key Stats H1 24 H1 23 % Change Revenue €722.0m €638.8m 13% Adjusted Operating Profit €96.5m €65.7m 47% Adjusted Operating margin 13.4% 10.3% 3.1% Achievements H1 Key focus areas H2 Long-Haul revenues up 25.6% vs H1 23 Delivery of Long-Haul
Slide 20: North America
North America Profitable growth achieved in H1 Key Stats H1 24 H1 23 % Change Revenue $770.9m $724.3m 6% Adjusted Operating Profit $27.1m $17.1m 58% Adjusted Operating margin 3.5% 2.4% 1.1% Achievements H1 Key focus areas H2 School Bus School Bus Volume improvements following route Preparation f
Slide 21: UK
UK Turnaround in progress Key Stats H1 24 H1 23 % Change Revenue £307.3m £285.4m 8% Adjusted Operating Loss £(12.6)m £(10.8)m (17)% Adjusted Operating margin (4.1)% (3.8)% (0.3)% Achievements H1 Key focus areas H2 UK Bus UK Bus Optimising continued strong passenger growth Driving margin benefit
Slide 22: Germany
Germany Critical discussions with PTAs in progress Key Stats H1 24 H1 23 % Change Revenue €140.7m €156.7m (10.2)% Adjusted Operating (Loss) / Profit €(6.0)m €6.7m (190)% Adjusted Operating margin (4.3)% 4.3% (8.6)% Achievements H1 Key focus areas H2 Passenger volumes boosted by German Critical d
Slide 23: Conclusion and key takeaways
Conclusion and key takeaways Ignacio Garat Group CEO Mobico Group Half Half Year Year Results Results 23 23
Slide 24: Conclusion & key takeaways
Conclusion & key takeaways FY Guidance unchanged, progress on cash and continuing growth FY 24 Guidance on track, adjusted EBIT £185m - £205m Focus on deleverage Profit & cash improvement initiatives on target Continuing, positive passenger demand Contract wins and successful retentions & mobilisati
Slide 25: Appendices Q&A
Appendice s Q&A Mobico Group Half Year Results 25
Slide 26: Mobico Group Half Year Results
The information in this presentation is general information and background only, and is not intended to be relied upon as advice to investors or potential investors as it does not take into account their particular investment objectives, financial situation or needs. The contents of this presentatio