Irish Continental Group Plc · EURONEXT:IR5B
Irish Continental — FY2012 Earnings Presentation
30 slides from Irish Continental's earnings presentation, Mar 7, 2013
Slide 1: Irish Continental Group plc 2012 Results Presentation
Irish Continental Group plc 2012 Results Presentation 7 March 2013 1
Slide 2: ICG Business Units
ICG Business Units 1. Ferries Division Irish Ferries, the leading ferry company operating between UK/Continent and the Republic of Ireland. 2. Container Division Eucon, leading Container shipping operator between Ireland and the N.W. Continent with its own container terminals in Dublin & Belfast. Tu
Slide 3: ICG - Group Results
ICG - Group Results 2012 2011 Change Turnover* €256.1m €251.7m +1.7% Operating Costs (exc. Dep)* €210.3m €204.4m +2.9% EBITDA* €45.8m €47.3m -3.2% Operating Profit* €26.5m €27.1m -2.2% Non – Trading Items €(2.1)m Discontinued Operations €0.9m €2.1m Profit on Sale of Subsidiary €21.0m Basic EPS 183.2
Slide 4: Results By Division
Results By Division Continuing Operations 2012 2011 % €m €m Ferries €m €m Revenue 160.0 155.5 + 2.9% Costs exc. fuel 98.3 98.7 -0.4% Fuel 39.3 34.8 +12.9% EBIT 22.4 22.0 +1.8% Container Revenue 97.4 97.5 -0.1% Costs exc. fuel 79.4 80.3 -1.1% Fuel 13.9 12.1 +14.9% EBIT 4.1 5.1 -19.6% 4 3
Slide 5: ICG Fuel Costs
ICG Fuel Costs Continuing Operations FY 2012 FY 2011 Change 2012 v’s 2011 Consumption (000 tons) Heavy Fuel Oil 78.0 78.9 -1.1% Marine Diesel 14.2 13.8 +2.9% 92.2 92.7 +0.5% Price (€ per ton) Heavy Fuel Oil €536 €469 +14.3% Marine Diesel €720 €671 +7.3% Brent Crude (guide) $111.60 / €86.85 $110.79 /
Slide 6: ICG Cash Flow
ICG Cash Flow FY 2012 FY 2011 EBITDA 46.5 49.1 Working Capital Movement (2.6) (5.7) Pension Payments (5.4) (4.7) Other (0.3) (0.2) Cash Generated from Operations 38.2 38.5 Interest (1.8) (1.0) Tax (0.4) (1.0) Capex (8.5) (6.3) Free Cash Flow 27.5 30.2 Asset Sales 19.1 0.4 Payments received on financ
Slide 7: Tender Offer
Tender Offer • Tender offer for up to 24.73% of equity at €18.50 per share (6.027 million shares), €111.5m, announced 30 August 2012 • Premium of 15.6% to closing price of €16.00 (cum div) on 29 August • Premium of 17.1% to volume weighted average price of €15.80 over one month to 29 August • 7.368
Slide 8: Dividend / Share Buybacks
Dividend / Share Buybacks Cash Returned to Shareholders 2008 - 2012 Dividend/ Buyback / €m Redemption Tender Offer 2008 Paid 100c 24.5m 2009 Paid 100c 24.6m 2010 Paid 100c 25.0m 100c 25.1m 4.0m 2011 Paid 33c 8.2m 2012 Paid 67c 16.7m 10.1m Paid 33c 8.0m 111.5m Proposed 67c 12.3m 144.4m 125.6m Total 2
Slide 9: Group Pension Funds
Group Pension Funds Company Sponsored Funds Dec 2012 Dec 2011 Dec 2010 Dec 2009 €m €m €m €m Assets 213.5 193.5 200.3 191.9 Liabilities 268.1 215.2 206.5 207.6 Surplus/(Deficit) (54.6) (21.7) (6.2) (15.7) Discount Rate € / £ 3.8% / 4.4% 5.3% / 4.9% 5.5% / 5.5% 5.6% / 5.7% - Company in negotiation wit
Slide 10: Ferries Division
Ferries Division • Brand: Irish Ferries • 3 Conventional combined Car / RoRo ferries • 1 fast car carrying ferry, light freight • 4019 sailings - UK (Holyhead 2593 Pembroke 1426) Sailing Time - Holyhead Cruise Ferry 3¼ hours Holyhead Fast Ferry 2 hours Pembroke Cruise Ferry 4 hours • 292 sailings -
Slide 11: Ferries Division
Ferries Division 2012 2011 Change €m €m Turnover 160.0 155.5 2.9% Operating Costs 121.0 116.2 4.1% EBITDA 39.0 39.3 -0.8% Depreciation/Amortisation (16.6) (17.3) -4.0% Operating Profit 22.4 22.0 +1.8% • Passenger, Car & On Board revenue up 5.6% • RoRo Freight revenue down 1.9% • Fuel costs €39.3m, u
Slide 12: Ferries Revenues 2012
Ferries Revenues 2012 Cars & Passengers Freight 64% 33% (2011 – 63%) (2011 – 34%) Other 3% (2011 – 3%) 12 11 11
Slide 13: Ferries Costs 2012
Ferries Costs 2012 Other 12% (2011 – 13%) Payroll Depreciation 22% 12% (2011 – 23%) (2011 – 13%) Repairs/Insurance 5% (2011 – 5%) Port Costs 20% (2011 – 20%) Fuel 29% (2011 – 26%) 13 12 11
Slide 14: Irish Sea Routes
lrish Sea Routes IRISH FERRIES === STENA =m P&O comm SEATRUCK == BRITTANY FERRIES === CELTIC LINK qm 5 TROON LARNE i“ IRNRYAN, BELFAST @' WARREN POINT @. eae 9 HEYSHAM DUN LAOGHAIRE @\ ‘@ LIVERPOOL ROSSLARE 5 HOLYHEAD CORK e ‘@ FISHGUARD ‘@ PEMBROKE @ SWANSEA e CHERBOURG {) ROSCOFF i Pre IRISH CONTI
Slide 15: Distribution
Distribution Car Bookings On-Line 80% Telephone 14% Ports 6% 100% irishferries.com - 2012 4.5m visits 191,000 Bookings €60m revenue 15 16 14
Slide 16: Passenger Market
Passenger Market CAGR 1 Year H2 H1 3 Year 5 Year 2012 2012 2012 2009 - 2012 2007 - 2012 Irish Ferries +1% +1% +1% +3% 0% Republic of Ireland -4% -5% -3% -1% -3% All Ireland -3% -5% -2% -2% -3% 16 15
Slide 17: Car Market
Car Market CAGR 1 Year H2 H1 3 Year 5 Year 2012 2012 2012 2009 - 2012 2007 - 2012 Irish Ferries 0% +2% -2% -2% -3% Republic of Ireland -7% -6% -7% -4% -3% All Ireland -6% -5% -7% -3% -3% 17 16
Slide 18: RoRo Market
RoRo Market CAGR 1 Year H2 H1 3 Year 5 Year 2012 2012 2012 2009 – 2012 2007 - 2012 Irish Ferries -6% -6% -5% -2% -7% Republic of Ireland -2% -1% -3% +3% -2% All Ireland -2% -1% -2% +2% -2% 2012 2011 2010 2009 1992 -2007 Irish Ferries -6% +9% -9% -19% +12% Republic of Ireland -2% 0% +11% -12% +10% Al
Slide 19: Irish Continental Group
5s ‘IRISH CONTINENTAL GROUP
Slide 20: Container & Terminal Division
Container & Terminal Division Continuing Operations 2012 2011 Change Feederlink Feederlink €m €m 2012 2011 Turnover 97.4 97.5 -0.1% 19.6 21.6 Operating Costs 90.6 89.5 +1.2% 18.9 19.8 EBITDA 6.8 8.0 -15.0% 0.7 1.8 Depreciation/Amortisation (2.7) (2.9) -6.9% 0 0 Operating Profit 4.1 5.1 -19.6% 0.7 1.
Slide 21: Sale of Feederlink Shipping & Trading b.v.
Sale of Feederlink Shipping & Trading b.v. • Agreement on 29 August for sale of Feederlink b.v. to Unifeeder A/S of th Denmark, subject to regulatory approval, which was obtained on 27 November • Sale proceeds €29m: €20m received on closing on 12 December 2012. Up to €9m deferred in stages for 12 mo
Slide 22: Operations
Operations • 5 chartered vessels • 2,900 owned and leased containers, 5,500 teu (20ft, 40ft, 45ft, reefers, flats, curtain siders) • 6 ports served (2 owned terminals) • Door to Door (55%) Transport plus Quay to Quay (45%) (feeder) • DFT Terminal in Dublin - Principal terminal in ROI • BCT Terminal
Slide 23: Eucon Container Routes - Market Share 23%
Eucon Container Routes - Market Share 23% 21
Slide 24: Terminals
Terminals 2 strategically located container handling terminals at Dublin and Belfast. • Annual throughput of 142,000 lifts (2012) • Design Capacity of 260,000 lifts • 3 Gantry Cranes and 8 Rubber Tyre Gantry’s (RTG’s) • Largest and most modern container terminal in Ireland • Market Share 2012, 34% R
Slide 25: Container Handling Irl.
Container Handling Irl. CAGR 1 Year 3 Year 5 Year ICG -2% +4% -3% All Ireland* -2% -3% -8% * Based on figures January – September 2012 25 23
Slide 26: Current Trading / Outlook
Current Trading / Outlook Economy • European growth remains sluggish although US and the Far East are better • Increased focus in the UK on growth, at the expense of Sterling • Some evidence of recovery in the Irish economy reflected in the fall in medium term bond yields from over 8% to under 4% ov
Slide 27: Ferries - Fleet Appendix
Ferries - Fleet APPENDIX FLEET 27 APP
Slide 28: Ferries - Fleet
Ferries - Fleet Year Built 2001 Ulysses Cost €106m Ulysses GT 50,900 tons PAX 1875 Cars 1342 Jonathan Swift Lane Meters 4.1km Speed 22 knots Jonathan Swift Year Built 1999 Cost €38m GT 6,000 tons PAX 800 Cars 200 Speed 39 knots 28 APP
Slide 29: Ferries - Fleet
Ferries - Fleet Isle of Inishmore Year Built 1997 Cost €81m GT 34,000 tons PAX 2200 Cars 855 Lane Meters 2.1km Speed 21.5 knots Isle of Year Inishmore Built 1987 Oscar Wilde Purchased in 2007 €51m - plus upgrade GT 32,000 tons PAX 1458 Beds 1376 Cars 580 Lane Meters 1.2km Speed 21.5 knots 29 APP APP
Slide 30: Ferries - Fleet
Ferries - Fleet Year Built 1995 Kaitaki Kaitaki Cost €62m GT 22,300 tons PAX 1650 Beds 274 Cars 600 Lane Meters 1.7km Speed 19 knots 30 APP 15
Irish Continental Group — FY2012 Earnings Presentation on 6ix