Getlink Se · EURONEXT:GET
Getlink — Groupe Eurotunnel — H1 2017 Earnings Presentation
25 slides from Getlink's earnings presentation, Jul 25, 2017
Slide 1: 2017 half-year results
2017 half-year results 25 July 2017 Jacques Gounon – Chairman & CEO
Slide 2: Summary of the presentation
GROUPE EUROTUNNEL SE Summary of the presentation 1. KEY MESSAGES 2. KEY FIGURES IN H1 2017 3. H1 2017 FINANCIAL RESULTS
Slide 3: Key Messages
KEY MESSAGES EaROTONNED.
Slide 4: An outstanding 1st half of the year for value creation
AN OUTSANDING 1ST HALF OF THE YEAR FOR VALUE CREATION THROUGH PRICING POWER AND COST CONTROL Operating REVENUE EBITDA cash flow +3%* +8%* €262M** * At H1 2017 exchange rate: £1 = €1.161 and excluding discontinued activities 4 ** At exchange rate at 30/06/2017: £1 = €1.137
Slide 5: Solid British and European economies
KEY MESSAGES Solid British and European economies UK: good momentum for 2018 and 2019 Euro zone: In May, the Bank of England upgraded its GDP “The economic recovery in the euro area is growth estimates for 2018 and 2019 projected to continue, at a faster pace than previously expected” (ECB, June
Slide 6: Brexit: accelerator of digitalisation
KEY MESSAGES Brexit: accelerator of digitalisation 25% of trade in goods between the UK and the Continent passes through the Tunnel Premium Trade: added-value flows, (just-in-time, fresh products, express) Industry needs speed and frequency (frictionless border) Anticipate possible changes in bo
Slide 7: Strong liquidity position with €550M
KEY MESSAGES Strong liquidity position with €550M* Net refinancing Debt service: Free Cash Flow impact savings of €111M €265M c.€60M p.a. 7 * At 30 June 2017 exchange rate: £1 = €1.137
Slide 8: Key figures in H1 2017
KEY FIGURES IN H1 2017 EaROTONNED.
Slide 9: A strong performance
FIXED LINK IN H1 2017 A strong performance Strong Yield increase Increase in competitive much higher EBITDA position than inflation margin Stable competitive environment, price leader, control of costs 9
Slide 10: Consistent success in increasing average yields
FIXED LINK Consistent success in increasing average yields Strong increase in average yields since 2011 * Above inflation Passenger vehicles: dynamic yield management and Flexiplus Trucks: pricing power and peak days +3.7% 2017 and beyond Extra peak days Rationalised ferry market with two
Slide 11: Strong competitive position maintained
FIXED LINK – TRUCK AND PASSENGER SHUTTLES IN H1 2017 Strong competitive position maintained Truck volumes* Car volumes* 900 1,200 1,160 1,163 1,138 830 823 1,100 800 752 1,000 900 -2% 700 -0.8% 800 +4% = +8% +10% 700 600 600 H1 2015 H1 2016 H1 2017 H1 2015 H1 2016 H1 2017 Traffic stable, despite the
Slide 12: Eurostar growth in volumes despite adverse effects
FIXED LINK – RAILWAY NETWORK (high-speed passenger trains and rail freight trains) Eurostar growth in volumes despite adverse effects Eurostar passengers* Number of freight trains 5,200 5,121 1,600 1,536 5,100 5,040 1,400 5,000 4,971 1,200 1,043 4,900 1,000 869 4,800 800 +1.4% 600 4,700 +2% -3% 400
Slide 13: Growth in prices and cost control
FIXED LINK CONCESSION Growth in prices and cost control In €M H1 2017 Change H1 2016* Revenue 438 +3% 425 Shuttle Services 285 +3% 277 Railway Network 146 +4% 141 Other 7 +13% 7 Operating costs -198 -1% -199 Operating margin (EBITDA) 240 +6% 226 3% growth in Shuttle Services revenue, due to a c.4% a
Slide 14: Continued investments in quality of service and security
FIXED LINK Continued investments in quality of service and security Investments in security New Security Control Centre in Coquelles (January) Scanner for freight trains in the Fréthun yard (in progress) Heartbeat detection check buildings (in progress) Track siding before the entrance to th
Slide 15: Eurotunnel Flexiplus
iolus flex
Slide 16: A proven business model for freight
EUROPORTE IN H1 2017 A proven business model for freight Positive +3.5% Revenue EBITDA increase in +2% up by quality of +€4M service 16 * Europorte France - traction
Slide 17: Strong growth in profitability
EUROPORTE Strong growth in profitability In €M H1 2017 Change H1 2016* Revenue 59 +2% 58 Operating costs -56 -5% -59 Operating margin (EBITDA) 3 +€4M -1 Operating activity Commercial activity Performance New Vynova traffic between Renewal of Gefco and Exxon Transport plans and train schedules Belgiu
Slide 18: New infrastructure creating value
ELECLINK New infrastructure creating value An economic Recurring 25-year model proven revenues exemption for over more expected the sale of than 20 years from 2020 capacity 1,000MW electricity capacity, equivalent to the consumption of c.2 million households 18
Slide 19: Start of the construction phase
ELECLINK Start of the construction phase 23 February 2017: foundation stone laid for the electrical interconnector February 2017: construction work on the two converter stations in Folkestone and Coquelles May 2017: start of the installation of the monorail and cable supports in some areas of the Tu
Slide 20: H1 2017 Financial Results
3 H1 2017 FINANCIAL RESULTS 20
Slide 21: H1 2017 Income Statement
H1 2017 INCOME STATEMENT €M H1 2017 H1 2016* D% Revenue 497 483 +3% Operating costs -255 -258 -1% EBITDA 242 225 +8% Trading profit 166 153 +9% EBIT 160 148 +8% Net finance costs and other -124 -116 +7% Pre-tax profit from continuing activities 36 32 +14% Net profit from continuing activities 30 25
Slide 22: Cash in H1 2017
CASH IN H1 2017 Free Cash Flow: €111M -6 +265 Other FCF 22
Slide 23: A debt below 4%
FINANCIAL DEBT A debt below 4% Refinancing of the Group’s floating rate debt Refinancing over-subscribed 2.5 times Debt raised: €1,957M (refinancing of the entire Tranche C) Average cash interest rates reduced from 6 to 4% on the whole debt of the Group Savings on interest payments of c.€60M p
Slide 24: Strong H1 2017 performance supports the full-year objectives
GROUPE EUROTUNNEL SE Strong H1 2017 performance supports the full-year objectives Financial objectives of EBITDA for 2017 and 2018 based on an exchange rate of £1 = €1.175 and current scope of consolidation 2017 EBITDA: €530M 2018 EBITDA: €560M Objectives of growth in dividend for 2017 and 2018
Slide 25: 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