Irish Continental Group Plc · EURONEXT:IR5B
Irish Continental — H1 2015 Earnings Presentation
26 slides from Irish Continental's earnings presentation, Nov 12, 2015
Slide 1: Irish Continental Group plc Half Year to 30 June 2015 & IMS
Irish Continental Group plc Half Year to 30 June 2015 & IMS 12 November 2015 1
Slide 2: ICG Business Units
ICG Business Units 1. Ferries Division Irish Ferries, the leading ferry company operating between the UK/Continent and the Republic of Ireland. 2. Container Division Eucon, the leading container shipping operator between Ireland and the N.W. Continent. Dublin Ferryport Terminals (DFT) and Belfast Co
Slide 3: Ferries Division Routes
a Ferries Division Routes pe IRISH CONTINENTAL GROUP ey noON A WEEKLY SAILINGS LARNE @: @ CAIRNRYAN BELFAST @ Dublin - Holyhead } WARRENPOINT © Ulysses 28 Jonathan Swift 28 DUBLIN \iesram Epsilon 3 DUN LAOGHAIRE @! 74 '@ LIVERPOOL norine ‘© HOLYHEAD Rosslare - Pembroke (as Isle of Inishmore 28 SP To
Slide 4: Ferries Revenues 2014
Ferries Revenues 2014 Cars & Passengers Freight 59% 39% Other 2% 4 3
Slide 5: Ferries Costs 2014
Ferries Costs 2014 Other 14% Payroll Depreciation 24% 10% Repairs/Insurance 5% Port Costs 21% Fuel 26% 5 4
Slide 6: Ferries Division
Ferries Division • Brand: Irish Ferries • 4 Conventional combined Car/RoRo ferries • 1 fast car carrying ferry, light freight • 1 ferry on charter to Kiwi Rail (New Zealand) to June 2017 Ireland - France Rosslare - 400 sailings Pembroke 1,400 8% sailings 27% Dublin - Holyhead 3,400 sailings 65% 6 5
Slide 7: Distribution
Distribution Car Bookings On-Line 82% Telephone 14% Ports 6% 100% 6 irishferries.com - 2014 • 5.5m visits • 215,000 Bookings 6
Slide 8: Passenger Market
Passenger Market YTD H1 1 Year 3 Year 7 Year 2015 2015 2014 2011 – 2014 2007 – 2014 (7 Nov) CAGR CAGR Irish Ferries +3% +3% +1% +3% +1% Republic of Ireland -1%* -1% +2% 0% -2% All Ireland -2%* -1% +1% 0% -1% * To 31 October 8 7
Slide 9: Car Market
Car Market YTD H1 1 Year 3 Year 2015 2015 2014 2011 – 2014 (7 Nov) CAGR Irish Ferries +6% +7% +9% +3% Republic of Ireland +1%* +1% +4% -1% All Ireland -1%* -1% +2% -2% 1992 – 2007 2007 – 2014 2007 – 2014 CAGR CAGR Overall Irish Ferries 4% -1% -6% Republic of Ireland 2% -2% -12% All Ireland 2% -2% -1
Slide 10: RoRo Market
RoRo Market YTD H1 1 Year 3 Year 2015 2015 2014 2011 – 2014 (7 Nov) CAGR Irish Ferries +10% +12% +21% +8% Republic of Ireland +6%* +6% +7% +3% All Ireland +4%* +4% +3% +1% 1992 – 2007 2007 – 2014 2007 – 2014 CAGR CAGR Overall Irish Ferries 12% -1% -6% Republic of Ireland 10% -1% -9% All Ireland 6% -
Slide 11: Ferries Division
Ferries Division 9 Months Change H1 H1 FY 2015 2014 2015 2014 2014 €m €m €m €m €m Revenue 161.3 145.6 +10.8% 86.5 77.7 184.3 Operating Costs (105.7) (108.7) -2.8% (66.5) (67.4) (141.2) EBITDA 55.6 36.9 +50.7% 20.0 10.3 43.1 Depreciation/Amortisation (11.5) (11.2) +2.7% (7.7) (7.5) (15.1) Operating P
Slide 12: Container & Terminal Division
Container & Terminal Division • 5 chartered vessels • 3,000 owned and leased containers, 5,800 teu (20ft, 40ft, 45ft, reefers, flats, curtain siders) • Operating between the ports of Dublin, Cork and Belfast, Rotterdam and Antwerp • Door to Door (55%) Transport plus Quay to Quay (45%) (feeder) • Own
Slide 13: Eucon Container Routes
a Eucon Container Routes pas IRISH CONTINENTAL GROUP BELFAST @ DUBLIN e CORK @
Slide 14: Terminals
Terminals 2 strategically located container handling terminals at Dublin and Belfast. • Annual throughput in 2014 of 151,900 lifts • Design Capacity of 260,000 lifts • 3 Gantry Cranes and 8 Rubber Tyre Gantries (RTG’s) • Largest and most modern container terminal in Ireland • 5 minutes from motorway
Slide 15: Container & Terminal Division
Container & Terminal Division 9 Months Change H1 H1 FY 2015 2014 2015 2014 2014 €m €m €m €m €m Revenue 87.3 80.7 +8.2% 57.2 53.7 107.0 Operating Costs (78.8) (75.2) +4.8% (51.7) (50.0) (99.6) EBITDA 8.5 5.5 +54.5% 5.5 3.7 7.4 Depreciation/Amortisation (2.0) (2.0) - (1.4) (1.3) (2.7) Operating Profit
Slide 16: Container Handling
Container Handling CAGR H1 2015 1 Year 3 Year 5 Year ICG 12% 6% 0% 3% All Ireland 6% 9% 2% 0% 16 15
Slide 17: ICG - Group Results
ICG - Group Results 9 Months H1 H1 FY Change 2015 2014 2015 2014 2014 Revenue €248.6m €226.3m +9.9% €143.1m €130.7m €290.1m Operating Costs (exc. Dep) €184.5m €183.9m -0.3% €117.6m €116.7m €239.6m EBITDA €64.1m €42.4m +51.2% €25.5m €14.0m €50.5m Operating Profit €50.6m €29.2m +73.3% €16.4m €5.2m €32
Slide 18: ICG Fuel Costs
ICG Fuel Costs 9 Months Change 2015 2014 2015 v’s 2014 FY 2014 Consumption (000 tons) Heavy Fuel Oil 51.7 68.5 -24.5% 92.3 Marine Diesel 29.4 11.7 +151.3% 15.1 81.1 80.2 +1.1% 107.4 Price (€ per ton) Heavy Fuel Oil €306 €472 -35.2% €452 Marine Diesel €494 €681 -27.5% €665 Brent Crude (guide) $56.6 /
Slide 19: ICG Cash Flow
ICG Cash Flow 9 Months H1 2015 H1 2014 FY 2014 2015 2014 EBITDA 64.1 42.4 25.5 14.0 50.5 Working Capital Movement 0.9 (0.3) 22.7 11.4 (2.2) Pension Payments in excess of service costs (2.3) (1.8) (1.4) (1.0) (3.9) Other 0.1 - 0.1 0.1 - Cash Generated from Operations 62.8 40.3 46.9 24.5 44.4 Interest
Slide 20: Dividend / Share Buybacks
Dividend / Share Buybacks Cash Returned to Shareholders 2007 - 2015 Dividend/Redemption Year Interim (Cent) Final (Cent) Total (Cent) €m Buyback/ Tender Offer €m 2007 Nil 10.0c 10.0c 24.5 2008 Nil 10.0c 10.0c 24.6 2009 Nil 10.0c 10.0c 25.0 2010 Nil 10.0c 10.0c 25.1 2011 3.3c 6.7c 10.0c 24.9 4.0 2012
Slide 21: Group Pension Funds
Group Pension Funds Company Sponsored June 2015 Dec 2014 Dec 2013 Dec 2012 Dec 2011 Funds €m €m €m €m €m Assets 273.1 256.5 230.5 213.5 193.5 Liabilities (IAS 19 basis) 271.4 279.2 265.2 268.1 215.2 Surplus/(deficit) 1.7 (22.7) (34.7) (54.6) (21.7) Discount Rate € / £ 2.40% / 3.65% 2.0% / 3.65% 3.6%
Slide 22: Current Trading / Outlook
Current Trading / Outlook General • Irish economy continues to grow ( ESRI GDP forecast 4.4% (2015) and 3.7% (2016) ) • Fuel tailwind • Stronger £ Sterling Tourism • Passenger numbers up 3% YTD • Car numbers up 6% YTD Freight • RoRo volumes up 10% YTD • LoLo volumes up 3% YTD • Terminal volumes up 2
Slide 23: Disclaimer
Disclaimer This presentation may contain certain forward-looking statements. These statements are made by the Directors in good faith based on the information available to them up to the time of their approval of this presentation. These forward-looking statements should be treated with caution due
Slide 24: Ferries - Fleet
Ferries - Fleet Ulysses Year Built 2001 Cost €106m Ulysses GT 50,900 tons Ulysses PAX 1875 Cars 1342 Lane Meters 4.1km Jonathan Swift Speed 22 knots Route Dublin/ Holyhead Jonathan Swift Year Built 1999 Jonathan Swift Cost €38m GT 6,000 tons PAX 800 Cars 200 Speed 39 knots Route Dublin/Holyhead APP
Slide 25: Ferries - Fleet
Ferries - Fleet Year Built 1997 Isle of Inishmore Isle of Inishmore Cost €81m GT 34,000 tons PAX 2200 Cars 855 Lane Meters 2.1km Speed 21.5 knots Route Rosslare/Pembroke Oscar Wilde Year Built 1987 Oscar Wilde Purchased in 2007 €51m - plus upgrade GT 32,000 tons PAX 1458 Beds 1376 Cars 580 Lane Mete
Slide 26: Ferries - Fleet
Ferries - Fleet Epsilon Year Built 2011 GT 26,375 tons PAX 500 Beds 272 Lane Meters 2.8km Speed 23 knots Route Dublin/Holyhead Dublin/France Year Built 1995 Kaitaki Cost €62m GT 22,300 tons PAX 1650 Beds 274 Cars 600 Lane Meters 1.7km Speed 19 knots Route Chartered Out APP 15
Irish Continental Group — H1 2015 Earnings Presentation on 6ix