Irish Continental Group Plc · EURONEXT:IR5B
Irish Continental — FY2009 Earnings Presentation
28 slides from Irish Continental's earnings presentation, Mar 23, 2010
Slide 1: Irish Continental Group plc 2009 Results Presentation
Irish Continental Group plc 2009 Results Presentation, 23 March 2010 1
Slide 2: ICG Profile
ICG Profile Capital Employed 1. Ferries Division Leading ferry company operating between UK/Continent and 85% Republic of Ireland €170m 2. Container Division Leading Container operator between Ireland and the Continent 15% with own container stevedoring terminals in Dublin & Belfast €31m 2 1
Slide 3: ICG - Group Results
ICG - Group Results 2009 2008 Change Turnover €260.5 €342.9m -24% Operating Costs (exc. Dep) €209.8m €276.9m -24% EBITDA €50.7m €66m* -23% Profit From Operations €26.5m €41.8m* -37% Adjusted EPS** 107.7c 148.9c* -28% Basic EPS 102.4c 164.7c* -38% Dividend / Redemption per 100c 100c - Unit Equity €15
Slide 4: ICG Cash Flow
ICG Cash Flow FY 2009 FY 2008 EBITDA* 50.7 62.2* Working Capital Movement 7.7 (3.1) Pension Payments (5.7) (0.1) Other 0.7 0.3 Operating Cash Flow 53.4 59.3 Interest (1.6) (2.7) Tax (0.1) (3.9) Capex (4.8) (8.4) Free Cash Flow 46.9 44.3 Asset Sales 0.1 13.2 Lease Receipts 4.3 2.3 Share Issue - 0.7 D
Slide 5: Redemption / Dividend
Redemption / Dividend • Redemption of 100 cent paid in April 2008 (€24.5m) • Redemption of 100 cent paid in May 2009 (€24.6m) • Proposed dividend of 100 cent payable H1 2010 (€24.6m) 5 4
Slide 6: ICG Fuel Costs
ICG Fuel Costs FY 2009 FY 2008 Consumption (000 tons) Heavy Fuel Oil 93.05 104.9 Marine Diesel 12.8 14.7 105.9 119.6 Price (€ per ton) Heavy Fuel Oil €275 €385 Marine Diesel €390 €684 Total Cost (inc. lubs) €31.5m €51.0m % of Operating Costs (exc. Dep) 15% 18.4% 6 5
Slide 7: Group Pension Funds
Group Pension Funds Company Sponsored Funds 2009 2009 2008 2008 Deficit €m Surplus €m Deficit €m Surplus €m Assets 174.4 17.4 155.3 14.6 Liabilities 192.5 15.0 175.2 11.9 Surplus/(Deficit) (18.1) 2.4 (19.9) 2.7 Discount Rate 5.6% 5.7% 5.90% 6.25% €m €m Additional Contributions 2009 3.2 - Company in
Slide 8: Ferries Division
Ferries Division • 5 conventional combined Car/ RoRo ferries • 1 fast car carrying ferry, light freight • 4000 sailings - UK • 300 sailings - France • 2 ferries on charter to P&O 8 7
Slide 9: Ferries Division Results
2009 2008 Change €m €m Turnover 149.0 183.1 -19% Operating Costs** 109.9 130.8 -16% EBITDA 39.1 52.3 -25% Depreciation/Amortisation (21.0) (21.2) Operating Profit 18.1 31.1 -42% Profit on sale of Normandy ___ 3.8 Adjusted Operating Profit 18.1 34.9 -48% * Excludes €3.8m profit on sale of MV Normandy
Slide 10: Ferries Revenues 2009
Ferries Revenues 2009 2009 Other 5% (2008 - 10%) (2008 – 4%) Ro Ro Freight 35% (2008 – 41%) (2008 – 5%) Cars & Passengers 60% (2008 – 55%) 10 9
Slide 11: Ferries Costs 2009
Ferries Costs 2009 Overhead/ Other 7% (2008 – 7%) P ayro ll P ro mo tio n/ (2008 – M9%) (2008 - 5%) 25% arketing (2008 – 7%) (2008 – 24%) 9% (2008 – 24%) (2008 – 9%) (2008 – 9%) (2008 – 9%) (2008 - 24%) D epreciatio n 16% (2008 – 14%) (2008 - (2008 – 8%) (2008 – 22%) R epairs/ Insurance P o rt C o s
Slide 12: Irish Sea Routes 2010
lrish Sea Routes 2010 A el a @xe---~__ ~ S@ HEYSHAM DUN LAOGHAIRE © oe “@ LIVERPOOL C} ROSSLARE 5 HOLVHEAD CORK O rs 4 Ss ‘@ FISHGUARD 1 "e PEMBROKE \ ~ @ SWANSEA ‘ -" \ \ 1 \ IRISH FERRIES ome % REMENEUT STENA LINE omme i ‘ P&O IRISH SEA = = ae NORFOLK LINE @ eee a* SEATRUCKe@me 8 8 8 8= 8 8}©=§=—)
Slide 13: Market Share
Market Share Republic of Ireland / UK RoRo Tourism Operators Split Irish Ferries Irish Ferries Operators Split Irish Ferries Irish Ferries Short Sea Total Short Sea Total Short Sea 2 52% 50% 26% 2 96% 45% 43% Long Sea 4 48% 3 4% Republic of Ireland / France RoRo Tourism Operators Irish Ferries Opera
Slide 14: Ferries - Fleet
Ferries - Fleet Year Built 2001 Ulysses Cost €106m GT 50,900 tons PAX 1875 Cars 1342 Lane Metres 4.1km Speed 22 knots Jonathan Swift Year Built 1999 Cost €38m GT 6,000 tons PAX 800 Cars 200 Speed 39 knots 14 13
Slide 15: Ferries - Fleet
Ferries - Fleet Isle of Inishmore Year Built 1997 Cost €81m GT 34,000 tons PAX 2200 Cars 855 Lane Metres 2.1km Speed 21.5 knots Year Built 1987 Oscar Wilde Purchased in 2007 €51m - plus upgrade GT 32,000 tons PAX 1458 Beds 1376 Cars 580 Lane Metres 1.2km Speed 21.5 knots 15 14
Slide 16: Ferries - Fleet
Ferries - Fleet Pride of Bilbao Year Built 1986 Purchased 1993 €71m GT 37,500 tons PAX 2500 Beds 2447 Cars 580 Lane Metres 1km Speed 22 knots Year Built 1995 Kaitaki Cost €62m GT 22,300 tons PAX 1650 Beds 274 Cars 600 Lane Metres 1.7km Speed 19 knots 16 15
Slide 17: Car Market
Car Market CAGR 1 Year 2009 H2 2009 H1 2009 3 Year 5 Year 2006 - 2009 2004 - 2009 Irish Ferries 0% 5% -6% 2% 0% Republic of Ireland 2% 6% -3% 0% -2% All Ireland 1% 5% -3% 0% -2% 17 16
Slide 18: Market Share - Cars
Market Share - Cars 000’s Republic of Ireland – UK & France 1,000.000 900.000 800.000 700.000 600.000 500.000 400.000 300.000 Others 200.000 Irish Ferries 46% 47% 47% 100.000 0.000 2009 2008 2007 18 17
Slide 19: Distribution
Distribution Internet 75% Phone 19% Ports 6% 100% 19 18
Slide 20: RoRo Market
RoRo Market CAGR 1 Year H2 H1 3 Year 5 Year 2009 2009 2009 2006 - 2009 2004 - 2009 Irish Ferries -19% -15% -22% -6% -1% Republic of Ireland -14% -10% -17% -4% -1% All Ireland -11% -9% -14% -4% -1% 20 19
Slide 21: Market Share - RoRo
Market Share - RoRo 000’s Republic of Ireland – UK & France 1,000.000 900.000 800.000 700.000 600.000 500.000 400.000 300.000 Others 200.000 Irish Ferries 100.000 26% 28% 29% 0.000 2009 2008 2007 21 20
Slide 22: RoRo Capacity
RoRo Capacity Central & Southern Corridors 2007 Units 2010 Units Change 000’s 000’s Central Corridor Est. F’cast Heysham ( Norfolk ) 75 75 0% Liverpool ( P&O / Seatruck / Norfolk ) 495 525 6% Holyhead ( Irish Ferries / Stena) 815 830 2% Southern Corridor Pembroke / Fishguard / ( Irish Ferries / Sten
Slide 23: Charters
Charters Pride of Bilbao and Kaitaki on charter to P&O Pride of Bilbao operates Portsmouth – Bilbao Kaitaki operates on sub-charter in New Zealand, charter fixed until mid 2013 Charter of Pride of Bilbao ends October 2010 (17½ years) Pride of Bilbao very flexible/adaptable vessel highest ice class (
Slide 24: Container & Terminal Division
Container & Terminal Division 2009 2008 Change €m €m Turnover 111.5 159.8 -30% Operating Costs 99.9 149.9 -33% EBITDA 11.6 9.9 17% Depreciation/Amortisation (3.2) (3.0) Operating Profit 8.4 6.9 +22% Container volume down 26% Terminal volume down 23% Capacity down 27% (full year basis) Fuel c
Slide 25: Operations
Operations • 11 chartered vessels • 3,400 owned containers • 13 ports served (2 owned terminals) • Ireland / Continent - Door to Door plus Quay to Quay (feeder) • DFT Terminal in Dublin - Principal terminal in ROI • BCT Terminal in Belfast - 2006 start-up • UK / Continent - Quay to Quay (feeder) con
Slide 26: Container Routes
Container Routes ICG owns and operates terminals in Dublin & Belfast. Other ports are operated by third parties. 26 25
Slide 27: Container Handling Irl.
Container Handling Irl. Market Share 28% in 2009 CAGR 1 Year 3 Year 5 Year ICG -23% 0% 3% All Ireland* -24% -10% -3% * Based on figures January – September 2009 27 26
Slide 28: Outlook
Outlook • RoRo volumes continue to be affected by weak economies, challenging trading environment continuing • Car passenger market more resilient, benefiting from air capacity reductions • Unhedged on fuel • Lower container ship chartering costs / flexible terms / lower capacity • Modern fleet, no
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