Slide 1: Full Year Results
Full Year Results For the year ended 31 Dec 2023
Slide 2: Introduction and key messages
Introduction and key messages Ignacio Garat Mobico Group Group CEO Full Year Results 2
Slide 3: Introduction and key messages
Introduction and key messages Top-line growth strong – delay to profit and gearing recovery Positive demand Pressure on profit and cash • PAX and yields improve • Profitability disappointing • Significant contracts retained, • Price rises lag inflation won and mobilised • Restructuring and Germany a
Slide 4: Financial and Operational Review
Financial and Operational Review James Stamp Group CFO Mobico Group Full Year Results 4
Slide 5: 2023 financial overview
2023 financial overview Summary FY 2022 Adjusted £m FY 2023 (Restated) Change Revenue 3,150.9 2,807.5 12% Group Operating Profit 168.6 197.3 (15)% Basic EPS 4.5p 15.0p (10.5)p DPS 1.7p 5.0p (3.3)p Key Metrics Free Cash Flow £m 163.7 160.5 2% ROCE 7.0% 7.6% (0.6)% Covenant Gearing 3.0x 2.8x 0.2x Stat
Slide 6: 2022 – 2023 profit bridge
2022 – 2023 profit bridge Volume and pricing improvements; not sufficient to fully offset inflation and reduction in Covid funding 114 (130) (105) 88 15 (10) 197 169 Mobico Group 2022 Reported Reduction in Volume Pricing Costs Cost reduction Germany 2023 EBIT Full Year Results EBIT Covid funding pro
Slide 7: Profit performance
Profit performance Divisions at different stages of recovery Revenue (£m) Adjusted Operating Profit (£m) FY 2023 YoY % FY 2023 FY 2022 YoY % change1 change1 ALSA 1,165.4 +19% 136.8 103.9 +29% North America 1,115.6 +7% 27.1 68.4 (60)% UK 610.1 +15% 23.5 25.6 (8)% Germany 259.8 (5)% 0.2 17.6 (99)% Cen
Slide 8: Germany
Germany Principal issues Audit complete and associated German Rail issues concluded Three main commercial issues: • Volatility in energy market and associated cost recovery indices • Industry wide disruption in the train driver market and lower productivity • Persistently high inflation Discussions
Slide 9: Germany: Financial details
Germany: Financial details Onerous contract provision Adjusted operating profit impact (RRX2/3) (RME and RRX1) Onerous contract provision increased Profit for FY23 £0.2m from £47m to £118m. (down £17m from FY22) £99m £10m £10m in-year P&L charge of £99m hit from IFRS 15 through adjusting items contr
Slide 10: Adjusting items
Adjusting items Profit Cash FY 2022 £m FY 2023 FY 2023 FY 2022 (Restated) Adjusted Operating Profit 168.6 197.3 Goodwill impairment of ALSA - (260.6) - - Intangible amortisation for acquired businesses (35.3) (37.2) - - Re-measurement of onerous contracts and impairments resulting from (113.3) (63.3
Slide 11: FCF after growth capex and M&A of £86m
FCF after growth capex and M&A of £86m Free cash flow conversion at 91%, lower growth capex and M&A. (£m) FY 2023 FY 2022 EBITDA 386.0 418.1 Net maintenance capex (135.7) (184.5) Working capital 9.1 (1.1) Pension deficit (7.5) (7.4) Operating cash flow 251.9 225.1 Tax & interest (88.2) (64.6) Free c
Slide 12: Net debt stable
Net debt stable Covenant gearing up 0.2x to 3.0x on lower EBITDA (£m) FY 2023 FY 2022 Free Cash Flow after 86.2 37.9 CapEx and M&A Adjusting items (71.0) (49.3) Dividend (41.1) - Hybrid coupon (21.3) (21.3) Other, including FX 53.4 (105.4) Net Funds Flow 6.2 (138.1) Closing Net Debt (1,201.7) (1,207
Slide 13: Accelerate restructuring programs on track
Accelerate restructuring programs on track Delivering significant bottom-line benefits in FY24 and beyond Accelerate 1.0 Accelerate 2.0 m m m m £20m Further restructuring m programme launched in FY23, m targeting an additional £20m annualised savings. m m c£10m With c. £10m in FY 2024. Mobico Group
Slide 14: Bridge to 2024 adjusted EBIT guidance
Bridge to 2024 adjusted EBIT guidance Significant headwinds as we enter FY24, but with actions in place to offset these Key Variables Volume School Bus bid season pricing Inflation 205 169 185 Mobico Group Full Year Results FY23 Actual Germany Revenue Accelerate Pricing Volume Inflation & Lower Rang
Slide 15: Q1 update
Q1 update Inline with current expectations Constant Revenue Reported Currency £m Change Change ALSA 8.7% 12.1% North America (0.8)% 3.5% UK and Germany 3.5% 4.6% Total 3.5% 6.7% Mobico Group Full Year Results 15
Slide 16: Operational Review
Operational Review Ignacio Garat Group CEO Mobico Group Full Year Results 16
Slide 17: Delivering Evolve
Delivering Evolve Environmental leader Driving fundamental improvement Targeting 14,500 ZEVs by 2030. SBTi approved targets. Most satisfied customers Pax - up 9.9% vs. 2022 (1,074m up from 977m). This is the first time that we have surpassed 1bn passenger journeys. Employer of choice 2023 ENPS score
Slide 18: Delivering on pipeline - retention
Delivering on pipeline - retention High retention & successful mobilisation High retention rate Mobilised £180m of contracts (ACV) in the year 97% School bus retention (excluding Belfast-Dublin Porto, Portugal non-regretted) RRX, Germany Serveo, Madrid ~100% Retention rate in rest of Group Charlesto
Slide 19: Delivering on pipeline - conversion
Delivering on pipeline - conversion Conversion momentum and discipline 43 Number of wins ACV won (£m)1 New contract wins £126m Annualised Contract Value (ACV) won 43 150 126 35 £>1bn Total Contract Value (TCV) won 20% Conversion rate on bids submitted and awarded TCV won (£bn)1 EBIT margin 23% ROCE
Slide 20: Opportunity pipeline
Opportunity pipeline £2.5bn pipeline contains a mix of large and small opportunities 18-month pipeline value by size of opportunity Bid pipeline contains a higher mix of asset light Bids Asset Heavy M&A 33% Asset Light 67% Large Medium Small (£>50m) (£5 - 50m) (£0 - 5m) Mobico Group Full Year Result
Slide 21: ALSA
ALSA Record revenue and profits Key stats 2023 2022 % Change Revenue €1,340.4m €1,129.3m 19% Adjusted Operating Profit €157.4m €121.8m 29% Adjusted Operating margin 11.7% 10.8% 0.9% 589m >€140m 3 contracts >65% Record Revenue & EBIT Retention of all key material Successful mobilisation of New centre
Slide 22: North America
North America Decisive actions to drive H2 improvement Key stats 2023 2022 % Change Revenue $1,387.7m $1,296.8m 7% Adjusted Operating Profit $33.7m $84.7m (60)% Adjusted Operating margin 2.4% 6.5% (4.1)% 97.3% 13% >450 £54m Significant progress with Significant progress Early contract wins for Reven
Slide 23: UK: Action taken to improve profitability
UK Action taken to improve profitability Key stats 2023 2022 % Change Revenue 610.1m £528.3m 16% Adjusted Operating Profit £23.5m £25.6m (8)% Adjusted Operating margin 3.9% 4.8% (1.0)% +25% 12.5% 2 key renewals 28% Mobico Group Strong growth in UK Coach Fares increase in UK Bus Two key contracts ren
Slide 24: UK: Rebalancing risk and reward
UK UK Rebalancing Rebalancing riskreward risk and and reward Bus • Transition to a model that rebalances risk & reward to maximise profitability and cash • External party (Oxera) engaged with the Bus Operators Group to finalise a mechanism that will allow fare increases to properly reflect sector co
Slide 25: Germany: Significant challenges
Germany Significant challenges Key stats 2023 2022 % Change Revenue €298.8m €315.0m (5)% Adjusted Operating Profit €0.2m €20.7m (99)% Adjusted Operating margin 0.1% 6.6% (6.5)% (99)% OCP increase RRX 1 launch Profits reduced as a result of Mobico Group Lifetime profitability of contracts Successfull
Slide 26: Conclusion and key messages
Conclusion and key messages Ignacio Garat Group CEO
Slide 27: Conclusions
Conclusions Tough challenges addressed, attractive opportunities ahead 2023 has been a Another strong Mobico’s role in leading challenging year – but performance from ALSA, modal shift continues to Mobico Group with important with North America and offer attractive long-term Full Year results underl
Slide 28: Q&A
Q&A Mobico Group Full Year Results 28
Slide 29: Appendix
Appendix Mobico Group Full Year Results 29
Slide 30: Passenger growth
Passenger growth Coach passengers Urban bus passengers1 Shuttle passengers UK Coach and ALSA Long Haul UK Bus and ALSA Urban Bus Shuttle Jul-20 Jan-21 Jul-21 Jan-22 Jul-22 Jan-23 Jul-23 Jan-24 Mar-21 Mar-22 Mar-23 Mar-24 Nov-20 Nov-21 Nov-22 Nov-23 Sep-20 Sep-21 Sep-22 Sep-23 May-20 May-21 May-22 Ma
Slide 31: Pricing
Pricing School Bus Coach UK Bus Price increases on Ticket price increases Price increase expiring portfolio vs FY22 13% 12.5% 10% 8% 4% SY22/23 SY23/24 UK Coach ALSA LH H2 % of 40% portfolio negotiated 40% +25% Passenger growth +28% Mobico Group Full Year Results -3%pts Occupancy +10%pts 31
Slide 32: Germany: contract comparison
Germany: contract comparison Contract Started Contract end Gross/Net Energy Comments operations date cost1 Index RRX 1 2023 2033 Net 626 Was emergency award contract. Run on long-term basis since December 2023 RRX 2 2020 2033 Net 625 Subject to OCP3 RRX 3 2020 2033 Net 625 Subject to OCP3 RME 2016 2
Slide 33: Group long-term targets
Group long-term targets Restated for current trading performance FY 27 revenue of at least £3.8bn (£1bn above FY 22) Sequential growth in Adjusted Operating Profit with FY 27 Adjusted Operating Profit of approximately £300m (c£100m above FY 22) Cumulative Free Cash Flow (after growth capex and M&A)
Slide 34: Debt maturity improved
Debt maturity improved with liquidity increased, and high visibility over interest costs RCF successfully refinanced Refinance of £400m bond 250 with inaugural EUR issuance £0.9bn cash and committed 18 headroom at 31 Dec 2023 28 Interest charge increases for 2024 to around £85-90m (FY 2023: £75m) 60
Slide 35: Mobico Group Full Year Results
The information in this presentation is general information and background only, and is not intended to be relied upon as advice to investors or potential investors as it does not take into account their particular investment objectives, financial situation or needs. The contents of this presentatio