Trainline Plc · LSE:TRN
Trainline — H1 FY2020 Earnings Presentation
24 slides from Trainline's earnings presentation, Nov 5, 2019
Slide 1: Results for half year FY2020, November 2019
5 November 2019
Slide 2: Disclaimer
Disclaimer This presentation (the “Presentation”) has been prepared by Trainline plc (the “Company” and, together with its subsidiaries, the “Group”). For the purposes of this notice, “Presentation” means this document, its contents or any part of it, any oral presentation, any question or answer se
Slide 3: Financial highlights in H1 FY'20
Financial highlights in H1 FY’20 +19% Net ticket sales up YoY to £1.8 billion +29% Revenue up YoY to £129 million +37% Gross profit up YoY to £99 million +99% EBITDA up YoY to £42 million +£58mM — Operating Free Cashflow up YoY to £60 million 0.5x Net debt / EBITDA, significantly lower following IPO
Slide 4: Strategic highlights in H1 FY'20
Strategic highlights in Hi FY’20 Enhancing user experience: 20%+ conversion rate growth; now a 4.9 star-rated app Building demand: opening up new acquisition channels; app mix increased to 73% Optimising revenue to drive up take-rate: UK Consumer +c60bps, International +c130bps Growing Trainline for
Slide 5: Agenda
Slide 6: Agenda: strategic opportunity and progress, Q&A
2) strategic opportunity and) progressim iid Clare Gilmartin, CE@ 3, Q&A
Slide 7: Trainline: UK Consumer, International and Trainline for Business
Trainline: UK Consumer, International and Trainline for Business % of H1 FY’20 revenues: % of H1 FY’20 revenues: % of H1 FY’20 revenues: y Tl. y 6 6 Yo (~) Yo fa = trainline 6
Slide 8: UK Consumer, UK T4B and International
14 30 7 29 86 64 H1 FY'19 H1 FY'20 UK Consumer UK T4B International
Slide 9: H1 FY'19 to H1 FY'20 EBITDA by segment
70 50 (9) (8) (19) (21) UK H1 FY'19 H1 FY'20 International Central costs
Slide 10: Profitable for period excluding impact of one-off, exceptional items
Profitable for period excluding impact of one-off, exceptional items £m H1FY%9 H1FY’20 Variance Group adj. EBITDA 21 42 +21 Share based payments (2) (5) (3) Depreciation and Amortisation (18) (24) (5) Exceptional items (1) (21) (20) Operating profit / (loss) (0) (8) (8) Underlying Net Finance Costs
Slide 11: Strong operating free cash flow and cash conversion
Strong operating free cash flow and cash conversion £m Group adj. EBITDA Total capex Working capital movement’ Operating free cash flow % Operating free cash flow conversion? H1FY%9 H1FY’20 Variance 21 42 +21 (15) (15) H (4) 33 +37 2 60 +58 10% 144% . Cashflow up £58 million; 1.4x conversion rate: —
Slide 12: Reiterating full year guidance from H1 Trading Update
Reiterating full year guidance from H1 Trading Update * Net ticket Sales: Reconfirmed expectations of high-teens percentage growth * Revenue growth: Improved guidance to low to mid-20% range * Additional marketing investment to support International through final phase of re-platforming trainline ai
Slide 13: Agenda
Agenda 1) Financial\pertormancelin) Hil and outlook Shaun) Mce@abe; CFO 2. Strategic opportunity and progress in H1 Clare Gilmartin, CEO 3, Q&A 12
Slide 14: Our mission: make rail and coach travel easier
Our aim: To make rail and coach travel easier » All carriers in one app » Easy, consistent, friction free » Unique, Al driven travel info » For carriers: more customers & lower cost to serve trainline 13
Slide 15: Strong value proposition for customers
Strong value proposition for customers Smart ancillary & recommendations 260 Carriers 45 Countries trainline ¥ 4.9 9% %& koe
Slide 16: Significant headroom for growth with structural tailwinds
Significant headroom for growth with structural tailwinds law mente Muliisile qravih chives High frequency, complex Runway to transition to and fragmented online and mobile Global Rail and coach market value€) Online sales penetration in Europe) 86% SIGNIFICANT HIGH €225bn+ SPEED RAIL INVESTMENTS ?1
Slide 17: Leading rail and coach travel platform with capacity to scale
Leading rail and coach travel platform with capacity to scale Clear market leader Modern, agile, scalable global platform #1 by MAUs in Europe“ >500 micro services * ~3xnext nearest independent platform®2) * 300+ releases per week * ~28m cumulative app downloads * 300+ engineers * ~1.6 Mt lower CO2
Slide 18: Strategic priorities
Strategic priorities a reer experience trainline 7
Slide 19: Enhancing customer experience
Enhancing customer experience ¢ Re-platforming on track - Migrated all major carriers across 45 markets * Increased focus on fine-tuning platform for Europe - Continually optimising speed, core flows - Good start: strong conversion growth; improving NPS * Driving adoption of etickets in UK Consumer
Slide 20: Building demand
Building demand * Increasing customer acquisition and engagement Trainline mobile app downloads - Opening new customer acquisition channels (millions) - Improving effectiveness of existing channels a6 * Strong increase in new app downloads ~ App share of transactions up +11% points to 73% C9) . . 2.
Slide 21: Optimising revenues
Optimising revenues New revenue streams... ...driving strong growth in take rate ‘currencies, } insurance | ae soon A vertising Insurance currencies e.g. hotels 2 UK Consumer International Launched Launched Launched In testing mHIFY19 mH FY'20 trainline 20
Slide 22: Growing Trainline for Business (T4B)
Growing Trainline for Business (T4B) B2B White Label * Launched Smart- Increased * Launched etickets Increased = demand from for business = demand from enabled Digital existing customers existing Season tickets accounts accounts Account wins |° 78% win rate a Account wins |° Retained only new and re
Slide 23: Key takeaways
Key takeaways ¢ Strong financial performance in the first half, outperforming expectations ¢ Reconfirmed updated guidance for the full year ¢ Operate in a large market with structural tailwinds ¢ Progressing well against our strategic priorities trainline
Slide 24: Q&A
irainline Q&A