Getlink Se · EURONEXT:GET
Getlink — Groupe Eurotunnel — FY2014 Earnings Presentation
41 slides from Getlink's earnings presentation, Mar 18, 2015
Slide 1: 2014 Annual results
Presentation to investors and analysts 2014 Annual results 18 March 2015 Jacques Gounon Chairman & Chief Executive Officer The world leader in piggyback transport The reference in respect for the environment
Slide 2: 2014 Annual results: agenda
Groupe Eurotunnel SE 2014 Annual results: agenda Eurotunnel Group Rail freight activity (Europorte) Maritime activity (MyFerryLink) Fixed Link Concession activity (Eurotunnel) 2014 financial results (Eurotunnel Group) Developments and outlook (Eurotunnel Group) 2
Slide 3: Eurotunnel Group in 2014
Eurotunnel Group In 2014 The world leader in piggyback transport The reference in respect for the environment
Slide 4: A 100% privately-owned European group
Groupe Eurotunnel SE A 100% privately-owned European group GET shares listed on the NYSE Euronext Paris and London • Market capitalisation at 17 March 2015: €6.8Bn • Share performance since 01/01/2014: +60% GET Concessionaire of share the cross-Channel Fixed Link until 2086 CAC40 SBF120 01/01/20
Slide 5: A high-quality, stable shareholding
Eurotunnel Group A high-quality, stable shareholding Capital breakdown* • 280,000 shareholders • Average holding up to 3,992 shares By shareholder profile By location of account holder Individual Belgium Luxemburg shareholders 5% 3% 11% Other countries Treasury shares Custodians 7% 49% 2% USA 40%
Slide 6: Overview – Eurotunnel Group
Overview – Eurotunnel Group Strong growth in traffic and revenue Group revenue exceeds €1.2BN in 2014 (+7%*) 2014 Revenue by segment • Fixed Link: €847M, +6%* • Europorte: €267M, +8%* • MyFerryLink: €93M, +25%* Strong competitive position in growing markets • Fixed Link supported by resurgent UK
Slide 7: Rail freight activity in 2014
Rail freight activity in 2014 Europorte The world leader in piggyback transport The reference in respect for the environment
Slide 8: Europorte: rail freight
Europorte: rail freight No.1 private rail freight operator in the UK/FR Excellence in railway logistics, hauling of trains and management of railway infrastructure in ports Around 1,100 trains hauled per week New contracts and extension of existing contracts • In France: fertiliser for Boreali
Slide 9: Europorte and its subsidiaries
Europorte and its subsidiaries Continued growth and profit In €M 2014 Variance 2013* Revenue 267 +8% 247 Operating costs -251 +11% -227 EBITDA 16 -€4M 20 Trading profit 5 - €4M 9 Managed revenue growth Operating costs up, due to: New contract start-up costs Increase in activity Investments: 25
Slide 10: Maritime activity
Maritime activity MyFerryLink The world leader in piggyback transport The reference in respect for the environment
Slide 11: Evolution of market shares
Evolution of market shares Short Straits – Accompanied freight * * * * 11 * December 2014 market shares
Slide 12: MyFerryLink in 2014
MyFerryLink in 2014 Growth in traffic and outstanding quality of service Activity (vs 2013) • 399,453 trucks (+22%) • 337,654 cars (+7%) • 1,570 coaches (+118%) • Revenue = €93M (+25%) Excellent quality of service: market share for freight up to 10.3%, market share for cars stable at 6.9% The
Slide 13: MyFerryLink
MyFerryLink Significant growth in revenue In €M 2014 Variance 2013 Revenue 93 +25% 74 Operating costs -105 +9% -96 EBITDA -12 +10 €M -22 Double-digit growth in revenue Improved load factor for the ferries Increase in productivity Despite the legal context 13
Slide 14: Fixed Link Concession activity in 2014
Fixed Link Concession activity in 2014 Eurotunnel The world leader in piggyback transport The reference in respect for the environment
Slide 15: Eurotunnel in 2014
Eurotunnel in 2014 Record-breaking traffic More than 21 million passengers through the Tunnel Almost 120,000 trains through the Channel Tunnel, of which 96,000 Eurotunnel Shuttles Le Shuttle transported 16,416 tourist vehicles on 9 August and 375 000 for the whole month of August Truck Shutt
Slide 16: Le Shuttle for passengers – 2014
Le Shuttle for passengers – 2014 Sustained dynamism of car traffic Car volumes (‘000s) Another record-breaking year 2 600 +4% More than 2.5M cars transported in 2014: +2% 2,572 +4% 2 400 +7% 2,481 2,424 Subdued growth in car market in 2014: +6% +1.5% 2 200 2,263 2,125 Eurotunnel market share
Slide 17: Truck Shuttles – 2014
Truck Shuttles – 2014 Volumes and yield up Truck volumes (‘000s) More than 1.44 M trucks transported in 2014, i.e. +6% vs 2013 1 600 Strong growth in truck market: +8% -7% +6% 1 400 +16% in 2014 1,465 1,440 1 200 +16% 1,363 1,263 Eurotunnel historic level of market 1 000 1,089 share: 37.8% ove
Slide 18: High-speed passenger trains
High-speed passenger trains Continued performance in 2014 Eurostar passengers* (‘000s) Steady rise: +3% in 2014 11 000 Regular promotional offers (summer, winter..) +3% +2% 10,398 Access charges as defined 10 000 +2% 10,133 by the Railway Usage +2% 9,912 Contract (RUC) - (1987-2052) 9,680 9,52
Slide 19: Cross-Channel rail freight – 2014
Cross-Channel rail freight – 2014 Double-digit increase in traffic Number of freight trains +14% increase in number of freight trains and +21% in tonnage of goods transported in 2014 3 000 +14% New services generated (+24%) 2,900 by ETICA (Eurotunnel Incentive for 2 500 +10% Capacity Additions),
Slide 20: Fixed Link
Fixed Link Steady growth in revenue In €M 2014 Variance 2013* Revenue 847 +6% 802 Shuttle Services 527 +7% 491 Railway Network 305 +3% 298 Other revenues 15 +14% 13 Operating costs -353 +6% -334 EBITDA 494 +5% 468 Strong increase in Shuttle revenue Railway network: increase in volumes, low infla
Slide 21: Fixed Link operating costs
Fixed Link operating costs +6% 353 334 Adjusted: +5% * 2013: €4M one-off insurance indemnity received. Adjusted Opex = €338M 2014: 5% adjusted Opex growth (excluding 2013 one-off). 2/3 of costs increase due to operational activity growth, 1/3 due to non- recurring projects 21 * Recalculated at 2
Slide 22: 2014 financial results
2014 financial results Eurotunnel Group The world leader in piggyback transport The reference in respect for the environment
Slide 23: Group P&L
Group P&L Steady growth in Pre-tax result In €M 2012* 2013* 2014 Variance Revenue 1,004 1,123 1,207 +7% OPEX 569 657 709 +8% EBITDA 435(1) 466 498 +7% EBIT 269(1) 302 334 +11% Net Finance costs(2) 272 277 272 -2% Pre-tax results 5(1) 30 56 +89% Result after tax 5(1) 111(3) 57 ns (1) Excluding €30M i
Slide 24: CAPEX: to support growth in activity and to secure the future
CAPEX: to support growth in activity and to secure the future In €M 182 200 141 MyFerryLink 150 76 74 100 92 49 5 Europorte 50 31 57 38 49 0 Fixed Link 2012* 2013* 2014 Fixed Link €750M investments since 1994 2014 investments: Terminal 2015, GSM-R Sustained preventive maintenance (rerailing…)
Slide 25: Cash flow statement
Cash flow statement Increased cash – Lower net debt ratio FCF = €155M (+22%) Cash = €385M (+€108M) * Recalculated at 2014 exchange rate: £1 = €1.258 Net debt of €3.5BN Decreased leverage: Net debt/EBITDA = 7.1 vs 7.8 * All figures stated at exchange rate applicable for each year 25
Slide 26: Long-term debt profile
Long-term debt profile Matches long duration of Concession Debt Service (€m) Long term duration with average life of 24 years Moderate repayments over next 10 years (€34M in 2015) Denominated in £/€ to match Group revenue Part of debt is inflation linked, matching cash flows of Railways reve
Slide 27: Summary of 2014 results
Eurotunnel Group Summary of 2014 results Strong growth in revenues: +7% to €1.207bn Free cash flow: €155M (vs €129M in 2013) Scheduled repayment of the Term Loan: €34M EBITDA at €498M, up by €32M Operating profit (EBIT) at €334M, an increase of €32M Result before tax: €56M profit (+89% v
Slide 28: Treasury
Treasury Serving shareholders 2013 dividend paid in 2014 = €81M Term Loan repayment = €34M Net CAPEX = €77M Partial refinancing of = €22M locomotives purchased by Europorte Cash position = €385M as at 31/12/2014 (vs €277M at 31/12/2013) 28
Slide 29: Appropriation of the income statement
Appropriation of the income statement Sustainable increase in dividend Proposed payment of a dividend • €0.18 per share, a 20% increase • Total amount for year 2014: €99M • Total amount since 2008: €336M To be approved at AGM on 29 April 2015 A sustainable dividend policy 0.18 0.15 0.12 0.08 I
Slide 30: Developments and outlook
Developments and outlook Eurotunnel Group The world leader in piggyback transport The reference in respect for the environment
Slide 31: Vision 2020 – Fixed Link
Vision 2020 – Fixed Link A collaborative approach to address challenges 4 objectives to accommodate by 2020 • 2 million trucks, vs 1.4M in 2014 • 3 million cars, vs 2.5 M • 5,000 freight trains, vs 2 900 • 13.5 million high-speed train passengers, vs 10.4 M 7 themes, 7 working groups • Customer
Slide 32: Passenger Shuttles by 2020
Passenger Shuttles by 2020 Traffic and strategy Current car market share > 51.5 % 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 33: Le Shuttle: customer experience
Le Shuttle: customer experience A tailor-made quality of service A strategic and daily priority Investments based on their benefit to the customer Constant improvement in service • Flexiplus, Pets • New online booking module • Extension of Wi-fi coverage, GSM-P and 4G in the Tunnel • Modernisa
Slide 34: Truck Shuttles by 2020
Truck Shuttles by 2020 Traffic and investments 2014 • Growth in truck market in 2014: +8% Market back to 2007 level From 2015 • 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 tra
Slide 35: Truck Shuttles: Terminal 2015 and service advantages
Truck Shuttles Terminal 2015 and service advantages Support growth in traffic and customer satisfaction • Renovation of the 19 club-cars for truck drivers completed by end of 2014 • Extension of free wi-fi coverage and real time communications • Security controls reinforced Terminal 2015 FR • Wo
Slide 36: 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) • December 2016: London-Amsterdam New Eurostar trains • End of 2015: new distributed power system e320 Siemens trains (900 passengers) into
Slide 37: 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 between Eurotunnel Group and Star Capital Partners (49/51%) • 1,000MW intercon
Slide 38: Europorte: rail freight
Europorte: rail freight A fast-growing market Rail freight making progress throughout Europe, except in France Fret SNCF cannot carry on making losses Long-term partnerships with customers (Lhoist, Verdon, Caledonian Sleeper,…) Opportunities in private infrastructure management 38
Slide 39: 2014/2015 targets: one year ahead of schedule
Eurotunnel Group 2014/2015 targets: one year ahead of schedule In 2014 the Group has exceeded its target of growth in revenue and EBITDA • 2014 objective: €460M EBITDA • 2015 objective: >€500M EBITDA • 2014 achieved: €498M EBITDA 2015 and beyond: several catalysts favour the Group • New MARPOL e
Slide 40: Sustainable growth
Eurotunnel Group Sustainable growth €1.207Bn revenue and €498M EBITDA in 2014 Net profit after tax: €57M Concessionaire until 2086 of a vital binational link between Great Britain and Europe The most environmentally-friendly cross-Channel transport system Major player in rail freight An
Slide 41: Contact investors & analysts
Contact investors & analysts: Michael Schuller Jean Baptiste Roussille Corporate finance director co-Head of IR co-Head of IR 00 33 1 40 98 04 81 00 44 1303 288 719 Jean-baptiste.roussille@eurotunnel.com Michael.schuller@eurotunnel.com Leader leader World mondialin depiggyback l’autoroutetransport f