Irish Continental Group Plc · EURONEXT:IR5B

Irish Continental — H1 2007 Earnings Presentation

32 slides from Irish Continental's earnings presentation, 2007

  1. Slide 1: ICG Profile

    ICG Profile Capital 1. Irish Ferries Employed Leading ferry company operating between UK / Continent and Republic of Ireland. 67% 2. Ship Chartering Division 22% 3. Container Division ƒ Container stevedoring terminals in Dublin & Belfast 11% ƒ Leading container operator between Ireland and the Conti

  2. Slide 2: ICG - Group Performance

    ICG - Group Performance H1 H1 2007 2006 2006 Turnover €163.2m €141.8m €312.1m EBITDA* €32.6m €15.6m €59.7m Trading Profit * €16.4m €2.6m €32.2m Non recurring items (net) €(16.5)m - €0.7m Adjusted EPS** 50.8c (1.7)c 108.5c Basic EPS (6.8)c 10.2c 137.4c Equity €175.9m 141.1m €178.3m Net debt €121.2m 1

  3. Slide 3: Container Division

    Container Division H1 H1 2007 2006 2006 €m €m €m Turnover 77.5 70.2 142.1 EBITDA 5.7 2.7 7.7 Depreciation/Amortisation (1.5) (1.5) (3.3) Operating Profit 4.2 1.2 4.4 Start up costs Belfast (0.8) 3.6 3

  4. Slide 4: Operations & Highlights

    Operations & Highlights ƒ Container Routes ¾ Ireland / Continent - Door to Door plus Quay to Quay ¾ UK / Continent - Quay to Quay container movement ƒ Port Ownership ¾ Container Terminal in Dublin, €30m expansion, completion 2008 ¾ Belfast Container Terminal commenced in October 2006, meeting expect

  5. Slide 5: Container Routes

    Container Routes Grangemouth Belfast South Shields Dublin 15 ships Dublin Liverpool Waterford Holyhead 11 ports Cork Holyhead Cork Immingham Pembroke 16 routes Pembroke Felixstowe Tilbury Southampton Rotterdam Rotterdam Antwerp Le Havre 5

  6. Slide 6: Market Share – LoLo 2006

    Market Share – LoLo 2006 All Ireland (UK & Continent) % Peel Holdings 30 ICG 22 Samskip 16 DFDS 9 C2C 8 Others 15 Total 100 6

  7. Slide 7: Container Terminal Market

    ContainerTerminal Container TerminalMarket Market 1.3 Million Teu1.3 inMillion 2006 Teu in 2006 7 Picture courtesy of The Irish Times

  8. Slide 8: Container handling in Ireland

    Container handling in Ireland Market Share 22% 2006 CAGR Volume % % 12 11% 10 9% 9% 8% 8 7% 7% 6% Market 6 5% ICG 4 2 0 Last Last Last 2006 8 10 Yrs 5 Yrs 3 Yrs

  9. Slide 9: Ferries & Ship Chartering

    Ferries & Ship Chartering H1 H1 2007 2006 2006 €m €m €m Turnover 85.9 72.2 170.0 EBITDA 26.9 12.9 52.8 Depreciation/Amortisation (14.7) (11.5) (24.2) Operating Profit/Loss 12.2 1.4 28.6 9

  10. Slide 10: Ship Chartering / Irish Ferries Operations

    Operations ƒ Ship Chartering ¾2 ferries on charter to P&O firm to 2010 ¾1 ferry on charter to Color Line February – September 2007 prior to entering service with Irish Ferries ƒ Irish Ferries ¾4000 departures to and from UK ¾250 departures to and from France 10

  11. Slide 11: Replacement Vessel Ireland France “Oscar Wilde”

    Replacement Vessel Ireland France “Oscar Wilde” – Commences 30 November 2007 ¾ Replacement capex to upgrade product standard ¾ Cost €45 million ¾ Initial charter 8 months ¾ Additional annual depreciation and interest €5.5 million ¾ Normandy (existing vessel built in 1982) with shipbrokers 11 for sal

  12. Slide 12: Distribution

    Distribution Car Booking Report 2006 All Markets Share 2006 2005 % % Call Centres 21 25 At our Ports 11 10 Internet 50 43 Direct 82 78 Travel Trade 18 22 Total 100 100 12

  13. Slide 13: Cash Flow

    Cash Flow H1 H1 Year 2007 2006 2006 €M €M €m Operating Profit before restructuring 16.4 2.6 32.2 Deprecation 16.2 13.0 27.5 EBITDA (before restructuring) 32.6 15.6 59.7 Working Capital Movement 14.7 8.9 (6.1) Operating Cash Flow 47.3 24.5 53.6 Interest (net) (3.8) (2.6) (5.7) Tax (0.2) (1.0) (1.7) C

  14. Slide 14: Passenger Car Market UK-Ireland

    Passenger Car Market UK ÍÎ Ireland Market REPUBLIC OF IRELAND Volumes (Cars) Market Irish Irish Ferries Ferries Share H1: Jan - June 2007 +4% +19% 47% ƒ Weak car market due to Stena reducing their HSS Fast Craft capacity 2007 V 2006 ƒ Average yield slightly up on last year 14

  15. Slide 15: Market Share – Cars 2007 v 2006

    Market Share – Cars 2007 v 2006 Republic of Ireland – UK 2007 2006 % % Irish Ferries 47 41 Stena Line 49 50 P&O Irish Sea 1 2 Swansea Cork 0 4 Norfolkline 3 3 Total 100 100 15

  16. Slide 16: RoRo Freight Market UK-Ireland 2007

    RoRo Freight Market UK-Ireland 2007 REPUBLIC OF IRELAND Volumes Market Irish Market (Freight Units) Ferries Share Jan - June 2007 7% 18% 30% ƒ Irish Ferries benefited from earlier drydock so increased capacity in Jan & Feb. ƒ Stena’s operational problems – HSS & Stena Adventurer ƒ P&O - an additiona

  17. Slide 17: Market Share – RoRo 2007 V 2006

    Market Share – RoRo 2007 V 2006 Rep. of Ireland - UK 2007 2006 % % Irish Ferries 30 27 Stena Line 25 28 *Norfolkline 23 26 P&O Irish Sea 20 18 *Celtic Link 2 1 Swansea Cork 0 0 Total 100 100 *Market figures for Norfolkline & Celtic Link are estimates 17

  18. Slide 18: Ship Chartering Division

    Ship Chartering Division Pride of Bilbao Night Ferry; 2400 Ö beds, 580 cars, built 1986 Challenger Day Ferry; 600 cars or 108 trucks built Õ 1995 18 Pride of Cherbourg

  19. Slide 19: Ship Chartering Division charter income

    Ship Chartering Division ƒ Both vessels on charter to 2010. ƒ Charter Income 2006 €10.8m 2007 €10.1m* 2008 € 8.6m 2009 € 8.6m *Excludes short term charter to Color Line 19

  20. Slide 20: Irish Ferries - Ships

    Irish Ferries = Ships IRISH a GROUP

  21. Slide 21: Irish Ferries - Ships

    ¥ IRISH CONTINENTAL GROUP Irish Ferries - Ships + A

  22. Slide 22: Irish Ferries Route Structure

    Irish Ferries Route Structure Larne Stranraer Belfast Cairnryan Dublin Liverpool Rosslare Holyhead Pembroke Rotterdam Roscoff Cherbourg 22

  23. Slide 23: Total Passenger Market 2003 - 2006

    Total Passenger Market 2003 - 2006 Cumulative Last 3 Years 2006 2005 2004 Irish Ferries -19% -6% -7% -7% Republic of Ireland -15% -4% -6% -5% All Ireland -15% -3% -6% -5% 23

  24. Slide 24: Car Market 2003 - 2006

    Car Market 2003 - 2006 Cumulative Last 3 Years 2006 2005 2004 Irish Ferries -13% -3% -4% -4% Republic of Ireland -13% -3% -5% -5% All Ireland -12% -2% -5% -4% 24

  25. Slide 25: RoRo Market 2003 - 2006

    RoRo Market 2003 - 2006 Cumulative Last 3 Years 2006 2005 2004 Irish Ferries 18% 13%* 8% 6% Republic of Ireland 20% 8% 6% 6% All Ireland 18% 7% 5% 5% * Strike in 2005 flatters 2006 figures 25

  26. Slide 26: RoRo Freight Traffic Key Slots

    RoRo Freight Traffic Key Slots 26

  27. Slide 27: RoRo Market Analysis

    RoRo Market Analysis Greater integration between Ireland & UK/Continent 1992 2006*(e) CAGR % % Value of Imports & Exports €45.1bn €264.2bn 13.5% GDP €40.0bn €177.9bn 11.2% Imports & Exports as % of GDP 113% 150% *ESRI Estimate 2006 27

  28. Slide 28: Irish Ferries Revenue Mix

    Irish Ferries Revenue Mix 2006 28

  29. Slide 29: Irish Ferries Cost Analysis

    Irish Ferries Cost Analysis 2006 Payroll 15% Port Charges 30% 29

  30. Slide 30: Fuel Costs

    Fuel Costs 2006 2005 2004 (f) Consumption (000 tons) Heavy Fuel Oil 96.7 96.6 96.2 Marine Diesel 15.1 20.9 19.4 111.8 117.5 115.6 Price (€ per ton) Heavy Fuel Oil €258 €216 €144 Marine Diesel €454 €384 €298 Cost (2006 V’s 2005) +14% €33m €29m €20m (2006 V’s 2004) +65% 30

  31. Slide 31: Employment

    Employment Dec Dec Dec 2006 2005 2004 Irish Ferries Seagoing (incl. agency) 298 770 684 Shore (incl. ports) 277 304 330 Total 575 1074 1014 Container & Terminal & Group 188 192 206 763 1266 1220 31

  32. Slide 32: Market Share – Cars 2006 v 2005 (H1)

    Market Share – Cars 2006 v 2005 (H1) Republic of Ireland - UK 2006 2005 % % Irish Ferries 41 44 Stena Line 50 48 P&O Irish Sea 2 1 Irish Sea Express / IOMSPC 0 2 Swansea Cork 4 4 Norfolkline 3 1 Total 100 100 32

Irish Continental Group — H1 2007 Earnings Presentation on 6ix