Slide 1: Full year results
Full year results For the twelve months ended 28 February 2023 Snapshot from ‘Great Journeys Start with Trainline’ 4th May 2023 TV commercial launching April 17th 2023
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: Agenda
1. Key highlights Jody Ford, CEO 2. Financial performance Pete Wood, CFO 3. Progress against strategic priorities Agenda Jody Ford, CEO 4. International growth deep-dive Jody Ford, CEO 5. Q&A 2
Slide 4: Well placed to empower greener travel choices and drive long-term growth
Well placed to empower greener travel choices and drive long-term growth Europe’s leading Strong growth tailwinds independent rail platform €60bn rail market in 270+ rail and coach carriers UK & Europe 4.9* rated mobile app >90% eticket availability in UK this year 55 million cumulative 6/10 top hig
Slide 5: FY2023 overview
FY2023 overview Record operating performance, with strong growth in net ticket sales and revenue International Consumer became €1 billion net ticket sales business More than doubled UK commuter segment share Yo3Y (vs Pre-COVID) Net ticket sales 3x higher in Italy; 4x higher in Spain Yo3Y Foreign tra
Slide 6: Recent political and regulatory developments in the UK
Recent political and regulatory developments in the UK • Greater emphasis on private sector involvement in UK rail • Confirmation of Trainline’s commercial terms with RDG • ‘I Came by Train’ campaign gaining recognition with government and industry Jody Ford and UK Minister for Rail Huw Merriman, MP
Slide 7: Agenda
1. Key highlights Jody Ford, CEO 2. Financial performance Pete Wood, CFO 3. Progress against strategic priorities Agenda Jody Ford, CEO 4. International growth deep-dive Jody Ford, CEO 5. Q&A 6
Slide 8: UK industry recovery back on track
UK industry recovery back on track UK daily passenger volume1 • Passenger volumes continue path to recovery Strikes over Christmas period Train strikes – no public data available begin 100% • Industry recovery slowed by strike action: − 30 strike days between Jun-22 to Mar-23 90% − Gross sales impac
Slide 9: Record sales, revenue and gross profit
Record sales, revenue and gross profit Net ticket sales (£m) Revenue (£m) Gross profit (£m) +16% vs +25% vs +29% vs +72% FY2020 +74% FY2020 FY2020 YoY YoY +75% 4,323 327 YoY 252 597 110 100 915 2,520 189 45 144 302 30 66 407 61 14 2,811 7 172 122 1,812 109 77 FY2022 FY2023 FY2022 FY2023 FY2022 FY202
Slide 10: Strong revenue performance
Strong revenue performance Group revenue take rate1 7.6% • UK and International Consumer growing 7.0% faster than Trainline Solutions • Strong growth in foreign travel sales FY2020 FY2023 1. Revenues as a percentage of net ticket sales 9
Slide 11: Material EBITDA growth while we increased international investment
Material EBITDA growth while we increased international investment Marketing costs (£m) Admin costs (£m) Adjusted EBITDA (£m) 86 101 38 75 40 39 65 14 31 71 43 30 37 61 15 44 (13) 22 (22) 15 FY2022 FY2023 FY2022 FY2023 FY2022 FY2023 UK Consumer International Consumer People Other UK Consumer Int'l C
Slide 12: Operating leverage in International Consumer becoming more apparent
Operating leverage in International Consumer becoming more apparent International Consumer pre-transaction fee performance (£m) 58 +132% • Continue to prioritise sales and revenue growth +131% 43 • International Consumer benefits from operating leverage as it grows +87% 25 25 22 • Maintain disciplin
Slide 13: Group guidance for FY2024
Group guidance for FY2024 Net ticket sales Revenue growth: Adj. EBITDA as % growth: in the range of of net ticket sales: in the range of 13% to 22% in the range of 13% to 22% 2.15% to 2.25% 12
Slide 14: Agenda
1. Key highlights Jody Ford, CEO 2. Financial performance Pete Wood, CFO 3. Progress against strategic priorities Agenda Jody Ford, CEO 4. International growth deep-dive Jody Ford, CEO 5. Q&A 13
Slide 15: Strategic priorities for growth – UK Consumer
Strategic priorities for growth – UK Consumer Enhance customer Increase customer Grow Trainline Build demand experience lifetime value Solutions Digitising commuter Marketing campaigns Growing transaction experience; unlocking value focused on value, commute frequency and monetisation for customers
Slide 16: Priming mobile app to better serve commuters in the UK
Enhance customer Increase customer Grow Trainline Build demand experience lifetime value Solutions Priming mobile app to better serve commuters in the UK UK Consumer Doubled commuter segment Personalising the commute Launched “Quick Buy” for share vs pre-COVID through Favourites commuters in April 2
Slide 17: Removing friction and unlocking value for customers
Enhance customer Increase customer Grow Trainline Build demand experience lifetime value Solutions Removing friction and unlocking value for customers UK Consumer Enabling a friction-free travel experience Providing ways to save money when booking “Next Best Actions” recommendations to help customer
Slide 18: Value and sustainability-focused marketing campaigns
Enhance customer Increase customer Grow Trainline Build demand experience lifetime value Solutions Value and sustainability-focused marketing campaigns UK Consumer One more image 17
Slide 19: Deepening our relationship with customers, driving higher frequency
Enhance customer Increase customer Grow Trainline Build demand experience lifetime value Solutions Deepening our relationship with customers, driving higher frequency UK Consumer Strong growth in active customers Increased frequency of transactions Average monthly active customers % of monthly activ
Slide 20: Strategic priorities for growth – Trainline Solutions
Strategic priorities for growth – Trainline Solutions Enhance customer Increase customer Grow Trainline Build demand experience lifetime value Solutions Leveraging platform strength to support travel partners 19
Slide 21: Platform One underpins our travel partners' online retailing
Enhance customer Increase customer Grow Trainline Build demand experience lifetime value Solutions Platform One underpins our travel partners' online retailing Customer-centric Deep Inventory Connections Leveraging machine learning ecommerce layer Large-scale multi tenanted rail platform with 1,000
Slide 22: Leveraging platform strength to better serve our travel partners
Enhance customer Increase customer Grow Trainline Build demand experience lifetime value Solutions Leveraging platform strength to better serve our travel partners • Supporting our IT Solutions partners: − Contract extensions with Cross-Country & Scotrail − New contract with 3rd party retailer Train
Slide 23: Agenda
1. Key highlights Jody Ford, CEO 2. Financial performance Pete Wood, CFO 3. Progress against strategic priorities Agenda Jody Ford, CEO 4. International growth deep-dive Jody Ford, CEO 5. Q&A 22
Slide 24: Strong progress against growth acceleration plans
Strong progress against growth Int e rna t iona l Consumer acceleration plans Accelerated product innovation Rapidly integrated new entrant carriers Grown brand awareness Increased customer acquisition International Consumer now a €1 billion net ticket sales business 23
Slide 25: Prioritising markets where we have strongest customer proposition
Prioritising markets where we have strongest customer proposition Int e rna t iona l Consumer Strongest customer proposition Future opportunity (2/3 International Consumer revenue in FY2023) More mature liberalised Foreign travel Less mature liberalised domestic markets domestic markets Spain Global
Slide 26: Liberalisation of European rail markets
Liberalised Foreign travel domestic markets Liberalisation of European rail markets • Carrier competition in Italy, Spain and France • Increasing number of routes with 3+ carriers competing • More fragmented markets brings more choice for the customer Carrier competition provides opportunity to posi
Slide 27: Our approach predicated on maturity of market liberalisation
Liberalised Foreign travel domestic markets Our approach predicated on maturity of market liberalisation Int e rna t iona l Consumer Phase 1 Phase 2 Phase 3 Provide a great UX; all key Make aggregation the key Deepening customer journeys and prices differentiator relationships 26
Slide 28: France
Liberalised Foreign travel domestic markets France Int e rna t iona l Consumer • Market liberalisation remains nascent • Ongoing industrial action • Managing investment to coincide with future arrival of widespread carrier competition • Continue to invest in UX and performance marketing 27
Slide 29: Spain: new routes quickly liberalising
Liberalised Foreign travel domestic markets Spain: new routes quickly liberalising Int e rna t iona l Consumer • Total rail market: c.€2 billion • Four high-speed carrier brands • Aggregated high-speed route opportunity1: €1.3 billion 1. High speed routes with at least 2 different carriers running s
Slide 30: Spain: Four train carrier brands competing on high speed rail market
Liberalised Foreign travel domestic markets Spain: Four train carrier brands competing on high speed rail market Int e rna t iona l Consumer Premium brand Value brand Incumbent brand 69 return 11 return services per day services per day Challenger brand 37 return 10 return services per day services
Slide 31: Madrid-Barcelona: clear signs competition driving modal shift
Liberalised Foreign travel domestic markets Madrid-Barcelona: clear signs competition driving modal shift Carrier competition driving modal shift Trainline increasing market share Industry passenger volume Trainline tickets sold Air traffic down –28% 9X 1.4X 2X Average fare reduction –55% Q4 CY2021
Slide 32: Spain: embedding Trainline as the leading aggregator
Liberalised Foreign travel domestic markets Spain: embedding Trainline as the leading aggregator Int e rna t iona l Consumer Improved journey search Journey combinations Enhanced booking experience Combine multiple carriers for Intuitive search filters Iryo Bistro meal selection same journey 31
Slide 33: Italy: a more mature liberalised market
Liberalised Foreign travel domestic markets Italy: a more mature liberalised market Int e rna t iona l Consumer • Total rail market: c€4 billion • Carrier competition for 10+ years • Maturing product market fit: - All carriers, routes and options - Simple, convenient app experience • SNCF’s low cost
Slide 34: Italy: Brand campaigns driving up awareness and customer acquisition
Liberalised Foreign travel domestic markets Italy: Brand campaigns driving up awareness and customer acquisition Int e rna t iona l Consumer Nationwide brand campaign No. 1 in app store Increased net ticket sales 3X FY2020 FY2023 33
Slide 35: Italy: deepening our relationship with customers
Liberalised Foreign travel domestic markets Italy: deepening our relationship with customers Int e rna t iona l Consumer Regional travel increased considerably Tickets sold on Regional journeys 4X FY2020 FY2023 34
Slide 36: Foreign travel
Liberalised Foreign travel domestic markets Foreign travel Int e rna t iona l Consumer FY2023 net ticket sales almost doubled Yo3Y • Total addressable market >€4 billion1 Daily average net ticket sales • Double-digit % revenue take rate • Seasonal market, peaking in summer months • Strong sales in F
Slide 37: One stop shop for US inbound customers
Liberalised Foreign travel domestic markets One stop shop for US inbound customers Int e rna t iona l Consumer Typical US inbound Trainline customer Easy to book tickets in Books journeys well in advance advance or on the day 42% sales from customers All key routes, carriers, booking journeys 2+ car
Slide 38: Attracting US inbound customers
Liberalised Foreign travel domestic markets Attracting US inbound customers Int e rna t iona l Consumer PR and paid Build trust and marketing campaigns inspire customers Launched US PR campaign to Journey guides, information find “Trainline’s Chief Conductor” and inspiration for US tourists 37
Slide 39: Key takeaways
Key takeaways • Record operating performance in FY2023; expect momentum to continue in FY2024 • Driving digital ticket penetration in the UK, particularly for commuters • Prioritising International markets where have strongest customer proposition • Harnessing aggregation to accelerate Trainline's s
Slide 40: Q&A
Q&A
Slide 41: Thank you
Thank you Y trainline