Irish Continental Group Plc · EURONEXT:IR5B

Irish Continental — H1 2009 Earnings Presentation

30 slides from Irish Continental's earnings presentation, Aug 28, 2009

  1. Slide 1: Irish Continental Group plc 2009 Interim Results Presentation

    Irish Continental Group plc 2009 Interim Results Presentation 1

  2. Slide 2: ICG Profile

    ICG Profile Capital 1. Irish Ferries Employed • Leading ferry company operating between UK/ Continent and Republic of Ireland 58% 2. Ship Chartering Division • 2 vessels on long-term charter 22% 3. Container Division • Container stevedoring terminals in Dublin & Belfast 20% • Leading container opera

  3. Slide 3: ICG - Group Results

    ICG - Group Results H1 2009 H1 2008 Change FY 2008 Turnover €119.8m €166.1m -27.9% €342.9m Operating Costs (exc. Dep) €101.0m €136.6m -26.1% €276.9m EBITDA €18.8m €29.5m* -36.3% €66.0m* Profit From Operations €7.1m €17.3m* -59.0% €41.8m* Adjusted EPS** 22.3c 58.9c -62.1% 148.9c Basic EPS 19.9c 67.1c

  4. Slide 4: Redemption

    Redemption • No redemptions during 2007 due to offers for Company • Redemption of 100 cent paid in April 2008 (€24.5m) • Redemption of 100 cent paid in May 2009 (€24.6m) 4

  5. Slide 5: ICG Cash Flow

    ICG Cash Flow H1 2009 H1 2008 FY 2008 EBITDA* 18.8 25.7* 62.2* Working Capital Movement 11.8 5.2 (2.9) Operating Cash Flow 30.6 30.9 59.3 Interest (0.7) (1.9) (2.7) Tax (0.7) (0.1) (3.9) Capex (4.3) (6.2) (8.4) Free Cash Flow 24.9 22.7 44.3 Asset Sales 0.1 14.4 13.2 Share Issue - 0.7 0.7 Dividends/R

  6. Slide 6: ICG Fuel Costs

    ICG Fuel Costs H1 2009 H1 2008 FY 2008 Consumption (000 tons) Heavy Fuel Oil 46.5 52.6 104.9 Marine Diesel 6.3 7.5 14.7 52.8 60.1 119.6 Price (€ per ton) Heavy Fuel Oil €237 €368 €385 Marine Diesel €357 €656 €684 Total Cost (inc. lubs) €13.6m €24.9m €51.0m % of Operating Costs (exc. Dep) 13.5% 18.2%

  7. Slide 7: Ferries Division

    Ferries Division ƒ Irish Ferries • 4100 sailings - UK • 300 sailings - France ƒ Ship Chartering • 2 Ferries on charter to P&O firm to 2010 • P&O hold options to 2013 7

  8. Slide 8: Ferries Division

    Ferries Division H1 2009 H1 2008 Change 2008 €m €m €m Turnover 65.5 83.9 -21.9% 183.1 Operating Costs** 51.3 63.0 -18.6% 130.8 EBITDA 14.2 20.9* -32.1% 52.3 Depreciation/Amortisation (10.3) (10.8) -4.6% (21.2) Operating Profit 3.9 10.1* -61.4% 31.1 Profit on sale of Normandy ___ 3.8 3.8 3.9 13.9 34.

  9. Slide 9: Irish Ferries Routes

    4 | lrish Ferries Routes Seis RNa tenn, Beas DUBLIN KS ROSSLARE @ \ ‘e PEMBROKE HOLYHEAD OD CHERBOURG ) ROSCOFF lyishCerries Com: The Low Fares Ferry Company

  10. Slide 10: Irish Ferries - Fleet

    Irish Ferries - Fleet Ulysses GT 50,900 tons PAX 1875 Cars 1342 Lane Metres 4.1km Speed 22 knots Jonathan Swift GT 6,000 tons PAX 800 Cars 200 Speed 39 knots 10

  11. Slide 11: Irish Ferries - Fleet

    Irish Ferries - Fleet Isle of Inishmore GT 34,000 tons PAX 2200 Cars 855 Lane Metres 2.1km Speed 21.5 knots Oscar Wilde GT 32,000 tons PAX 1458 Beds 1376 Cars 580 Lane Metres 1.2km Speed 21.5 knots 11

  12. Slide 12: Passenger Market

    Passenger Market CAGR H1 2009 1 Year 3 Year 5 Year 2008 2005 - 2008 2003 - 2008 Irish Ferries -9% -6% -1% -3% Republic of Ireland -10% -6% -3% -4% All Ireland -8% -7% -2% -4% 12

  13. Slide 13: Car Market

    Car Market CAGR H 1 2009 1 Year 3 Year 5 Year 2008 2005 - 2008 2003 - 2008 Irish Ferries -6% -7% 1% -1% Republic of Ireland -4% -7% -1% -3% All Ireland -4% -6% -1% -2% 13

  14. Slide 14: Market Share - Cars

    Market Share - Cars 000’s Republic of Ireland – UK & France 900.000 800.000 700.000 600.000 500.000 400.000 300.000 Others 200.000 Irish Ferries 100.000 45% 46% 47% 0.000 H1 2009 H1 2008 2008 14

  15. Slide 15: Distribution

    Distribution Internet Call Centres Travel Trade Ports 15

  16. Slide 16: RoRo Market

    RoRo Market CAGR H1 2009 1 Year 3 Year 5 Year 2008 2005 - 2008 2003 - 2008 Irish Ferries -22% -9% 5% 4% Republic of Ireland -17% -4% 3% 4% All Ireland -15% -4% 1% 2% 16

  17. Slide 17: Market Share - RoRo

    Market Share - RoRo 000’s Republic of Ireland – UK & France 1,000.000 900.000 800.000 700.000 600.000 500.000 400.000 300.000 Others 200.000 Irish Ferries 100.000 26.5% 28% 27% 0.000 H1 2009 H1 2008 2008 17

  18. Slide 18: RoRo Capacity

    RoRo Capacity Central & Southern Corridors ( incl. Warrenpoint ) 2007 Units 2009 Units Change 000’s 000’s Central Corridor Est. F’cast Heysham ( Seatruck / Norfolk ) 190 210 11% Liverpool ( P&O / Seatruck / Norfolk ) 500 550 10% Holyhead ( Irish Ferries / Stena) 820 860 5% Southern Corridor Pembroke

  19. Slide 19: Irish Ferries Revenues

    Irish Ferries Revenues 2008 On Board Sales Freight 10% 42% Foot Passengers 5% Cars 42% Holidays 1% 19

  20. Slide 20: Irish Ferries Costs

    Irish Ferries Costs 2008 Promotion/Marketing Depreciation 9% Overhead/Other 8% 7% Payroll 24% Repairs/Insurance 9% Fuel Port Costs 21% 22% 20

  21. Slide 21: Ship Chartering

    Ship Chartering Pride of Bilbao GT 37,500 tons PAX 2500 Beds 2447 Cars 580 Lane Metres 1km Speed 22 knots Kaitaki GT 22,300 tons PAX 1650 Beds 274 Cars 600 Lane Metres 1.7km Speed 19 knots 21

  22. Slide 22: Ship Chartering

    Ship Chartering ƒ Pride of Bilbao and Kaitaki on charter to 2010 ƒ Pride of Bilbao operates Portsmouth – Bilbao ƒ Kaitaki operates on sub-charter in New Zealand ƒ P&O has options to renew to 2013 ƒ Options to be declared early 2010 22

  23. Slide 23: Container & Terminal Division

    Container & Terminal Division H1 2009 H1 2008 Change FY 2008 €m €m €m Turnover 55.0 82.5 -33.3% 161.1 Operating Costs 50.4 77.7 -35.1% 151.2 EBITDA 4.6 4.8 -4.2% 9.9 Depreciation/Amortisation (1.4) (1.4) (3.0) Operating Profit 3.2 3.4 -5.9% 6.9 ƒ Volume down 31.5% (Terminals down 29.7%) ƒ Capacity d

  24. Slide 24: Operations

    Operations ƒ Container Routes • Ireland / Continent - Door to Door plus Quay to Quay (feeder) • UK / Continent - Quay to Quay (feeder) container movement ƒ Port Terminals • DFT Terminal in Dublin - Principal terminal in ROI • BCT Terminal in Belfast - 2006 start-up 24

  25. Slide 25: Container Routes

    Container Routes ƒ Eucon Route Network (Ireland - Continental Europe) 25

  26. Slide 26: Container Routes

    Container Routes ƒ Feederlink Route Network (Holland / Belgium - UK) 26

  27. Slide 27: Container Terminals

    Container Terminals ƒ Dublin Ferryport Terminal (DFT) • 150 year lease of 33 acres from 1972 • Direct access to new Port Tunnel • 480 metres of berths – 300m at 9.5m depth and 180m at 11m depth • Recently completed investment programme in new cargo handling equipment • Capacity to double current thr

  28. Slide 28: Container Terminals

    Container Terminals ƒ Belfast Container Terminal (BCT) • 11.5 acre site area operated under licence from Port of Belfast • 150m quay wall at 7.5m depth • Recently completed investment programme in new cargo handling equipment • Scope for further expansion 28

  29. Slide 29: Container Handling Irl.

    Container Handling Irl. Market Share 28% in 2008 CAGR 1 Year 3 Year 5 Year ICG 0% 12% 11% All Ireland -10% 3% 4% 29

  30. Slide 30: Outlook

    Outlook • Second half 2009 - Challenging trading environment continuing, pace of decline slowing • Unhedged on fuel, benefiting from lower average fuel costs • Lower container ship chartering costs / flexible terms / lower capacity • Modern fleet, no major capex required • Low cost base (outsourced

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