Slide 1: Full year results for the twelve months ended 29 February 2024
Full year results For the twelve months ended 29 February 2024 3 May 2024
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. Introduction Jody Ford, CEO 2. Financial performance Pete Wood, CFO 3. Progress against strategic priorities Agenda Jody Ford, CEO 4. Spain case study Jody Ford, CEO 5. Q&A
Slide 4: Our purpose and vision
Our purpose Our vision Empowering greener Building the world’s travel choices number 1 rail platform
Slide 5: Significant addressable market opportunity and best positioned to win
Significant addressable Best positioned to win in market opportunity: liberalising rail markets: c€55bn Remit to aggregate carriers in multiple geographies rail market in UK & Europe1 c€30bn Expertise and scale to invest Scalable tech platform optimised for markets where new across markets rail trav
Slide 6: Strong progress in FY2024
Strong progress in FY2024 Record net ticket sales of £5.3 billion, up +22%, and revenue of £397 million, up +21% Higher profit and cash generation: adj. EBITDA up +42% to £122 million; operating free cashflow up £83 million to £91 million Digitising rail travel in UK: industry eticket penetration at
Slide 7: Draft Rail Reform Bill outlines Conservatives' plans for UK rail
Draft Rail Reform Bill outlines Conservatives’ plans for UK rail • Intend to establish Great British Railways: arms-length guiding mind, unifying track and train • Increasing support behind Open Access carriers • Clear support for independent rail retailing, including level playing field for third-p
Slide 8: Labour's new policy paper puts forward its vision for UK rail
Labour’s new policy paper puts forward its vision for UK rail • Labour taking a passenger-focused approach • Intend to establish Great British Railways: arms-length directing mind, unifying track and train • Plan to bring private rail operators under public ownership as contracts expire: - Expected
Slide 9: Recommitted to innovative and competitive third-party retail market
Recommitted to innovative and competitive third-party retail market • Vision to simplify some of the 27 different train operator “…We would task GBR with working with websites and apps over time innovators like Trainline to make sure that • No plans to revive centralised app and website where they h
Slide 10: Agenda
1. Introduction Jody Ford, CEO 2. Financial performance Pete Wood, CFO 3. Progress against strategic priorities Agenda Jody Ford, CEO 4. Spain case study Jody Ford, CEO 5. Q&A
Slide 11: UK Consumer growth led by commute and short distance travel
UK Consumer growth led by commute and short distance travel UK Consumer Net ticket sales (£m) • Industry eticket penetration up from 43% to 47% +23% YoY • Trainline pushing further into commuter and on-the-day booking opportunity while long distance and leisure travel remain strong • Rail market rec
Slide 12: International Consumer growth led by Spain and Italy
International Consumer growth led by Spain and Italy International Consumer Net ticket sales (£m) • Net ticket sales growth1 led by markets with carrier competition - Spain and Italy: +43% YoY +14% YoY - France and Germany: +3% YoY • Growth in App sales remained strong - 62% of sales transactions th
Slide 13: Trainline Solutions continues to recover
Trainline Solutions continues to recover Trainline Solutions Net ticket sales (£m) • Encompasses Trainline Partner Solutions and Platform One +31% YoY • Strong performance from IT Carrier Solutions 785 • Business travel in UK continuing to recover from lower base 597 FY2023 FY2024 12
Slide 14: Strong growth in sales and revenue
Strong growth in sales and revenue Net ticket sales (£m) Revenue (£m) Gross profit (£m) +22% +21% 5,295 +21% 397 305 785 4,323 327 135 252 597 1,041 124 110 915 100 53 45 36 30 3,469 2,811 209 172 145 122 FY2023 FY2024 FY2023 FY2024 FY2023 FY2024 13
Slide 15: Increasing adjusted EBITDA reflects operating leverage and cost management
Increasing adjusted EBITDA reflects operating leverage and disciplined cost management Marketing costs (£m) Other admin costs (£m) Adjusted EBITDA (£m) +42% +14% 122 +4% 116 65 67 101 86 53 47 37 40 41 43 86 71 69 61 22 26 -22 -17 FY20241 FY2023 FY2024 FY20231 FY2024 FY2023 FY2024 Int’l Consumer Adj
Slide 16: Strong cash generation increases ability to return capital
Strong cash generation increases ability to return capital Strong cash generation in FY2024 Operating free cashflow (FCF) • Strong cash generation primarily driven by Adj. EBITDA plus working capital inflow • Leverage ratio reduced to 0.5x Adj. EBITDA (FY2023: 1.2x) • Ongoing £50 million share buyba
Slide 17: FY2025 Group guidance range
FY2025 Group guidance range Net ticket Adj. EBITDA as % Revenue growth: sales growth: of net ticket sales: in the range of 8% to 12% in the range of 7% to 11% in the range of 2.4% to 2.5% 16
Slide 18: Agenda
1. Introduction Jody Ford, CEO 2. Financial performance Pete Wood, CFO 3. Progress against strategic priorities Agenda Jody Ford, CEO 4. Spain case study Jody Ford, CEO 5. Q&A
Slide 19: Strategic priorities for growth – UK Consumer
Strategic priorities for growth – UK Consumer Enhance customer Increase customer Grow Trainline Build demand experience lifetime value Solutions Unlocking value; removing Marketing campaigns Improving transaction friction and digitising rail focused on value, commute frequency and monetisation ticke
Slide 20: A large UK rail market with £3 billion offline ticket sales headroom
Enhance customer Increase customer Grow Trainline Build demand experience lifetime value Solutions A large UK rail market with £3 billion offline ticket sales headroom UK Consumer UK rail industry ticket sales by retail channel (£ billions): Expanding UK rail market 10.6 • Unlocking value & removing
Slide 21: Unlocking value and removing friction for customers
Enhance customer Increase customer Grow Trainline Build demand experience lifetime value Solutions Unlocking value and removing friction for customers UK Consumer Enhanced Price Prediction tool Improved Ticket Alerts feature SplitSave on >80% of routes 20
Slide 22: Connecting long distance customers with new open access operators
Enhance customer Increase customer Grow Trainline Build demand experience lifetime value Solutions Connecting long distance customers with new open access operators UK Consumer Com p e t ing wit h Ca rrie r Route s inc um b e nt London – Edinburgh LNER London – Glasgow (from 2025) AWC, ScotRail Lond
Slide 23: Priming Mobile App to serve short distance and commute journeys
Enhance customer Increase customer Grow Trainline Build demand experience lifetime value Solutions Priming Mobile App to serve short distance and commute journeys UK Consumer Trainline share Best Price Guarantee Digital Seasons of commuter segment 23% 10% FY2020 FY2024 22
Slide 24: Brand campaigns helped drive +13% increase in active customers
Enhance customer Increase customer Grow Trainline Build demand experience lifetime value Solutions Brand campaigns helped to drive +13% increase in active customers UK UK Consumer Consumer 23
Slide 25: Increasing customer engagement while nurturing new revenue streams
Enhance customer Increase customer Grow Trainline Build demand experience lifetime value Solutions Increasing customer engagement while nurturing new revenue streams UK Consumer More on-the-day bookings is increasing Nurturing ancillary revenue streams our transaction frequency 68% 3.2 66% 3.1 66% 3
Slide 26: 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 25
Slide 27: Enhancing offering for business travel and carrier partners
Enhance customer Increase customer Grow Trainline Build demand experience lifetime value Solutions Enhancing offering for business travel and carrier partners Integrated Trainline Business Launched new features for carrier partners within UK Consumer App 26
Slide 28: Platform One: harnessing advanced ML and AI
Enhance customer Increase customer Grow Trainline Build demand experience lifetime value Solutions Platform One: harnessing advanced ML and AI Splitsave: Price Prediction: Recommended For You: Guidebook: mass-market split algorithmic personalised generative AI ticketing prediction of recommendations
Slide 29: Strategic priorities for growth – International Consumer
Strategic priorities for growth – International Consumer Enhance customer Increase customer Grow Trainline Build demand experience lifetime value Solutions Growing customers & Deepening customer Great UX, differentiating brand awareness in relationships and growing through aggregation priority marke
Slide 30: Focusing on €10bn priority markets where we can win today
International Focusing on €10bn priority markets where we can win today Consumer France Germany Rest of Europe (ex UK) rail market European €10bn €9bn €11bn c€15bn Future growth opportunity Spain Italy Foreign travel €2bn addressable market €4bn addressable market €4bn addressable market Doubled dom
Slide 31: €10bn priority markets now include three of top 10 routes globally
€10bn priority markets now include three of Trainline’s top 10 routes globally International Consumer Trainline net ticket sales H2 FY2024 London | Manchester Piccadilly 1 Birmingham | London 2 Barcelona | Madrid New entry 3 Edinburgh (Waverley) | London 4 London | Paris 5 Leeds | London 6 Liverpool
Slide 32: Removing friction and unlocking value
Enhance customer Increase customer Grow Trainline Build demand experience lifetime value Solutions Removing friction and unlocking value International Consumer New fare presentation Best price guarantee Auto-applied promo codes 31
Slide 33: Investing to grow brand awareness in Italy and Spain
Enhance customer Increase customer Grow Trainline Build demand experience lifetime value Solutions Investing to grow brand awareness in Italy and Spain International Consumer More than doubled brand awareness in c18-24 months1 40% Italian brand campaign launch: spring 22 34% 19% Spanish brand campai
Slide 34: Encouraging Mobile App usage to deepen customer relationships in Italy
Enhance customer Increase customer Grow Trainline Build demand experience lifetime value Solutions International Encouraging Mobile App usage to deepen customer relationships in Italy Consumer 2nd most downloaded travel app Strong growth in App usage driving up transaction frequency1 #1 80% 3 Bookin
Slide 35: Improving monetisation as we scale the International business
Enhance customer Increase customer Grow Trainline Build demand experience lifetime value Solutions Improving monetisation as we scale the International business International Consumer Foreign travel sales generating New ancillary Increasing International double-digit take rate products (e.g. hotels)
Slide 36: Agenda
1. Introduction Jody Ford, CEO 2. Financial performance Pete Wood, CFO 3. Progress against strategic priorities Agenda Jody Ford, CEO 4. Spain case study Jody Ford, CEO 5. Q&A
Slide 37: New entrant carriers have brought real choice to customers
New entrant carriers have brought real choice to customers Spain Premium brands Low-cost brands • Incumbent • Launched mid-2021 • 16 high-speed routes • 6 high-speed routes • Launched late-2022 • Launched mid-2021 • 6 high-speed routes • 3 high-speed routes Number of high-speed routes in Spain where
Slide 38: Carrier competition transforming high speed rail market
Carrier competition transforming high speed rail market Spain New entrants taken more Average fares have fallen Industry passenger volume than half the market share considerably increased significantly Share of passengers on three HS routes1 Avg. transaction value (€) on three HS routes1 Total passe
Slide 39: Carrier competition creates more complexity for the customer
Carrier competition creates more complexity for the customer Spain Maria, 24 Outbound Outbound Outbound 19:40: €54.05 19:53: €16.58 Travelling: Madrid-Valencia 17.15: €19.00 Outbound: c.19:30; Return: c.07:30 Return Return Return: 06:57: €54.05 07:27 €13.00 09:57: €21.12 Illustrative example only; A
Slide 40: Complexity creates a need for Trainline to become the aggregator
Complexity creates a need for Trainline become the aggregator Spain Maria, 24 Travelling: Madrid-Valencia All four c a rrie r b ra nd s in one Outbound: c.19:30; Return: c.07:30 hig hly-ra te d m ob ile Ap p 39
Slide 41: Complexity creates a need for Trainline to become the aggregator
Complexity creates a need for Trainline become the aggregator Spain Maria, 24 Top Com b o st itc he s tog e t he r Travelling: Madrid-Valencia All four c a rrie r b ra nd s in one d iffe re nt c a rrie rs for re t urn Outbound: c.19:30; Return: c.07:30 hig hly-ra te d m ob ile Ap p a nd mult ip le l
Slide 42: Trainline taking share on high speed routes
Trainline taking share on high speed routes Spain Share per Train Operator* Number of Trainline Trainline Share1 carrier brands growth YoY1 Madrid to… Barcelona 55% 4 Valencia 63% 4 Alicante 38% 4 +183% 8-13% Seville 35% 3 Ouigo due to enter late 2024 Malaga 31% 3 1. CNMC data for Q4 CY2023 41
Slide 43: Focus on aggregated routes driving sales growth and engaged customers
Our focus on aggregated routes driving sales growth as well as a more engaged customer base Spain Trainline domestic net ticket sales in Spain1 +103% +127% 44% 34% 31% FY2022 FY2023 FY2024 Repeat customers New customers 1. Spanish domestic sales reflects sales to customers with a Spanish IP address
Slide 44: New entrant competition set to ramp up across Europe
New entrant competition set to ramp up across Europe • More carrier competition coming, including to Italy, France and UK • 20 routes set to see new entrant carriers launch services by end 2025 • Proposed ramp up in carrier competition could support a golden age of rail travel 43
Slide 45: Italy: competing carriers to increase from two to four
Italy: competing carriers to increase Italy from two to four in coming years • Due to enter end-2025 • Planning one International and six domestic intercity routes • Due to enter from 2026 • SNCF’s low-cost carrier brand • Already operate in France and Spain 44
Slide 46: France: new entrant competition coming to Paris-Lyon and London-Paris
France: new entrant competition coming to Paris-Lyon and London-Paris France Liberalised Paris – Lyon route growth rate similar London - Paris route due to liberalise to combined growth across Spain and Italy Net ticket sales +42% FY23 FY24 • Annual passenger revenue: c.€0.5 billion1 • Annual passen
Slide 47: Spain provides template for carrier competition catalysing need for aggregator
Spain provides template for how carrier competition catalyses the need for a market aggregator like Trainline Significant market benefits Trainline honing aggregation Best positioned to become from carrier competition playbook in Spain aggregator of choice in Europe €55bn Spain • Avg. fares down –50
Slide 48: Key takeaways
Key takeaways • Digitising commuter / walk-up experience in UK Consumer, with £3 billion of headroom to go after • Engaging with both leading political parties in UK, with greater clarity ahead of General Election • Spain creating template for International markets, with Trainline building head star
Slide 49: Q&A
Q&A
Slide 50: Thank you
Thank you Y trainline