Trainline Plc · LSE:TRN
Trainline — H1 FY2025 Earnings Presentation
41 slides from Trainline's earnings presentation, Nov 7, 2024
Slide 1: Half year results for the six months ended 31 August 2024
Y trainline Half year results For the six months ended 31 August 2024 7th November 2024.
Slide 2: Disclaimer
Disclaimer This presentation (the “Presentation”) has been prepared by Trainline ple (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: 1. Introduction
1. Introduction Jody Ford, CEO
Slide 4: H1 FY2025: scaling well with increasing operating leverage
H1 FY2025: scaling well with increasing operating leverage Platform one processed >110 million total transactions in the first half, up 18% Digitising rail travel in UK: industry eticket penetration at 51%; Trainline’s share of commuter segment up to 24% Positioning ourselves as the aggregator of ch
Slide 5: Trainline — Europe's number one rail app
Trainline — Europe’s number one rail app Achieved significant scale: Leveraging our scale: 2X Multiple tenants using one single global tech stack - Platform One Mobile App downloads versus next — closest rail app competitors Total App downloads in H1 FY2025 (millions) Economies of scale across tech
Slide 6: Agreement with unions ended 2+ year industrial dispute
Agreement with unions ended 2+ year industrial dispute Bringing rail operators into public ownership over next few years Shadow GBR engaging with private sector to drive growth Reiterated intention to roll out customer-focused innovation, incl. digital seasons, mobile PAYG, automated Delay-Repay Jod
Slide 7: Directorate-General for Mobility and Transport
• • • Directorate-General for Mobility and Transport
Slide 8: 2. Financial Performance
2 2. Financial Performance i Pete Wood, CFO
Slide 9: UK Consumer benefiting as market backdrop normalises
UK Consumer benefiting as market backdrop normalises and more oe people shift to digital ticketing UK Consumer Net ticket sales (£m) * eticket penetration increased to 51%, up from 46% in H1 FY2024. * Market conditions normalising: - Passenger volumes in August close to pre-COVID levels on average a
Slide 10: International Consumer growth led by Spain and Italy
International Consumer growth led by Spain and Italy iterations Consumer Net ticket sales (£m) * Spain and Italy +23% as we actively position ourselves as aggregator a of choice As expected, France and Germany -3% following French brand spend pause last year until widespread carrier competition arri
Slide 11: Trainline Solutions driven by strong growth in IT Carrier Solutions
Trainline Solutions driven by strong growth in IT Carrier Solutions fini. Solutions Net ticket sales (£m) * Provides B2B retailing capabilities to rail carriers and other travel platforms * Continued strong performance from carrier partners, following improvements to core functionality from Platform
Slide 12: Actively increasing non-commission revenues with value added services
Actively increasing non-commission revenues with value added services Partnerships | Insurance | Increasin netisation Hotels + Insurance revenue Just for you Cancel for any reason Close Book a stay VY. Cancel up to 15 mins before travel Noutre going to’ Lyon Rert- Diet Wo VY Get 95% of ticket price
Slide 13: Strong growth in net ticket sales and revenue
Strong growth in net ticket sales and revenue Net ticket sales (£m) Gross profit (£m) <> = 229 3,001 181 51 197 2,649 1 33 28 ot 106 H1 FY2024' H1 FY2025 H1 FY2024' H1 FY2025 H1 FY2024' H1 FY2025 = UK Consumer Int'l Consumer © Trainline Solutions 4. Prior year figures reflect the upwards revision to
Slide 14: Operational leverage leading to a meaningful increase in EBITDA
Operational leverage leading to a meaningful increase in EBITDA Marketing costs (£m) Other admin costs (£m) Adjusted EBITDA (£m) m UK Consumer Int'l Consumer | UK Consumer Int'l Consumer ® Trainline Solutions +44% 82 37 34 7 87 . 5 H1 FY2024' H1 FY2025 H1 FY2024' H1 FY2025 H1 FY2024' H1 FY2025 Int'l
Slide 15: Operating leverage and cost optimisation
Operating leverage and cost optimisation 5 percentage point reduction in cost: income ratio costs as a % of revenue 60% 58% * Platform One delivering scale benefits and efficiencies 10% 53% 1% . Po r . . . * Up-tick in investment to build foundation in International Consumer 9% now complete, with si
Slide 16: Strong cash flow generation while returning capital to shareholders
Strong cash flow generation while returning capital to shareholders 5 P Returning excess capital to Strong cash generation Reducing leverage areholders via share buybacks Operating free cashflow (£m) Net Debt / LTM Adj. EBITDA Cumulative shares repurchased (£m) 6% of issued share capital 100 repurch
Slide 17: Increased guidance range for FY2025; new margin guidance for FY2026
Increased guidance range for FY2025; new margin guidance for FY2026 Net ticket sales Adj. EBITDA as % ets ; of net ticket sales: in the range o C.2.6% 12% to 14% ...originally 8% to 12% ...originally 2.4% to 2.5% range range FY2026: adj. EBITDA of between 2.6% to 2.7% of net ticket sales Pirainline
Slide 18: 3. Progress against strategic priorities
. 3. Progress against strategic priorities ° UK Consumer * International Consumer * Trainline Solutions Jody Ford, CEO
Slide 19: Trainline — Scope for further growth in UK
Trainline — Scope for further growth in UK Significant addressable market opportunity: H° elibn Rail market in UK' LL. sbn Offline sales headroom, mostly commuter and short distance 1. UK industry sales over 12 months to end August 2024 Uniquely placed to drive modal shift and grow online ticketing:
Slide 20: Trainline - the number one travel app in the UK
NIA “ap Trainline - the number one travel app in the UK UK Consumer Monthly Active Users" (millions) 12 9 7 2 2 2 Ran =. G inti ‘ . 1 WY icy TRAINPAL Yirainline Booking.com Uber tripadvzor National Rail 5% Skyscanner Expedia “<< Trains Hotels & Ride-hailing & Hotel, activities Train times Flight, ho
Slide 21: Strategic priorities for growth — UK Consumer
Strategic priorities for growth — UK Consumer Grow supply nak ak Enhance user experience NIA <1 INS Build demand Increase customer lifetime value All the tickets, fares and value saving products and features Removing friction for customers when travelling Marketing campaigns focused on value, commut
Slide 22: Grow supply
Grow supply NIA V4 All the tickets, fares and value saving products and features UK Consumer The home of Splitsave, saving customers £13 on average All the rail carriers' and fares in o1 4.9* mobile App 2 million digital railcard customers, c/3 of all railcard users 16-25 Railcard 1218 > 16:41 £61 1
Slide 23: Priming mobile App for commuters
NIA “aby UK Consumer Grow supply Priming mobile App for commuters Accelerating digital season sales Enhancing station ‘walk-up’ Driving growth in our share of where routes are enabled experience commuter segment Share of commuter market segment (%) . 24% 21% 19% Brighton London Victoria 08:03 > = 09
Slide 24: Great journeys start with Trainline
| Great jc ourneys start with Y trainline Download the app You won't find cheaper same-day tickets anywhere else. Or we'll refund the difference. Ticketo spliticus! y Claim an annual Railcard NIA aa UK Consumer Annual Railcard Upgrade to Extra, Perks or Max Track your 3 credit scores 23
Slide 25: Strong growth in transacting customer cohorts and transaction frequency
NIA “ap UK Consumer Strong growth in transacting Transaction frequency increasing Ase customer cohorts p ne) * growth p sales Active customers over last 12 months (millions) No. of monthly active customer transactions Gross transactions per annual cohort (000s) per cohort per month (averaged over LT
Slide 26: Trainline — Primed to win in European rail
Trainline — Primed to win in European rail Significant addressable Uniquely positioned in market opportunity: liberalising rail markets: c.€44bn rail market in Europe! Remit to aggregate carriers in multiple geographies Carrier competition expanding in markets over next two years: Expertise and scal
Slide 27: Strategic priorities for growth — International Consumer
Strategic priorities for growth — International Consumer Grow supply Enhance user experience Build demand Increase customer lifetime value Aggregating new carriers and routes as markets liberalise Removing friction for customers when travelling Brand campaigns to drive up awareness in liberalising m
Slide 28: Grow supply: rapidly adding inventory on new routes
Grow supply Rapidly adding inventory on new PY trainline OUIGO Verinformacién > €34.63> we Verinformacién > > TopCombo © You're making savings on your journey by combining multiple carriers. Why do more work than you have to? We've automatically checked tickets from the carriers shown here to create
Slide 29: Creating a unique proposition for our customers
@ Creating a unique proposition for our customers ternational Consumer ‘Pass Rail’ in France Retailing Cercanias in Spain { @traintine ® } treo ida Auto applied promo codes in Italy Otrainline t=0 Step 1of 4 ‘Choose outbound ‘Eat soaren Buy a Pass Rail Miiano Centrale > Roma Termini eae ane en Passh
Slide 30: Enhance user experience
Enhance user Choma experience Enhancing product offering for foreign travellers Recently launched Eurail passes Passport? Check. Rail pass? Check. Let’s get you a pass Browse ll avalable passes Multi-leg rail pass for customers travelling around Europe Improving familiarity of rail travel for inboun
Slide 31: Carrier competition set to ramp up in Europe over next few years
Grow supply Carrier competition set to ramp up in Europe over next few years Strasbourg + 4x carrier brands already compete on top 3 high r ] speed routes Spain + Quigo to launch on Spanish southern corridor (Madrid-Seville; Madrid-Malaga) by end of year ( ) * SNCF / Ouigo and Renfe-backed Arenaways
Slide 32: Spain: Trainline increasingly taking share on liberalised routes
Grow supply Spain: Trainline increasingly taking share on liberalised routes 9 Total passenger Trainline sales Trainline share by A Share per Train Operator sales growth (YoY)! growth (YoY) route! Madrid to... Barcelona = 51% Valencia x 7% Alicante i i 46% Malaga ee | Servesin ite 34% services in la
Slide 33: Finding innovative ways to grow brand awareness in Spain
Slide 34: Strong growth in sales from a larger, more engaged customer base
— Strong growth in sales from a larger, more engaged customer base ** Over 1 million customers transacted last 12 5 : : j months and in H1 50% were repeat customers Net ticket sales have tripled in the last two years' 50% 48% 39% 9 34% SO H1FY2023 H2FY2023 H1FY2024 H2FY2024 H1FY2025 H1 FY2023 H1 FY2
Slide 35: Honing our aggregation playbook
Honing our aggregation
Slide 36: Trainline Solutions: growing sales through carrier and B2B partners
Trainline Solutions: growing sales through carrier and B2B partners New App features available for White Label Carriers New B2B distribution enn thro our Global Split tickets Good afternoon, Sean ¥ We've found £13.00 ~ £16.60 savings on Booking details your journey. Possenoee There's no difference t
Slide 37: Trainline Business: delivering key product features through branded B2B channels
Trainline Business: delivering key product features through branded B2B channels Admins to book travel on behalf of company employees ‘Y trainline business Proyns (ae) Gm) Orcmae/ “Book for someone else” capabilities now live ... Giving businesses greater control of their travel spend annin, sect t0
Slide 38: Platform One: leveraging AI and ML to improve UX and reduce costs
Platform One: leveraging Al and ML to improve UX and reduce costs 9:41 * Splitsave: mass-market split ticketing Search & Buy * Price Prediction: algorithmic prediction Experience of fare changes + Personalised recommendations and CRM Close Price Prediction Manage my booking Standard Frst Class Mon 2
Slide 39: Key takeaways
Key takeaways * Well placed to drive further adoption of rail and digital ticketing as UK’s #1 travel app’ * Increasing clarity on direction for the UK rail industry * Honing aggregation playbook in Spain to deploy on routes across Europe as they liberalise * Delivering strong, sustainable growth an
Slide 40: Q&A
Q&A Y trainline
Slide 41: Thank you
Thank you Y trainline