Irish Continental Group Plc · EURONEXT:IR5B
Irish Continental — FY2013 Earnings Presentation
31 slides from Irish Continental's earnings presentation, Mar 6, 2014
Slide 1: Irish Continental Group plc 2013 Results Presentation
Irish Continental Group plc 2013 Results Presentation 6 March 2014 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 2013 2012 Change Turnover* €264.7m €256.1m +3.4% Operating Costs (exc. Dep)* €215.5m €210.3m +2.5% EBITDA* €49.2m €45.8m +7.4% Operating Profit* €30.0m €26.5m +13.2% Non – Trading Items €0.0m €(2.1)m Discontinued Operations €0.7m €0.9m Profit on Sale of Subsidiary €2.8m €21.0m Ba
Slide 4: Results By Division
Results By Division Continuing Operations 2013 2012 % €m €m Ferries €m €m Revenue 161.7 160.0 +1.1% Costs exc. fuel (101.0) (98.3) +2.7% Fuel (35.8) (39.3) -8.9% EBIT 24.9 22.4 +11.2% Container Revenue 104.3 97.4 +7.1% Costs exc. fuel (86.2) (79.4) +8.6% Fuel (13.0) (13.9) -6.5% EBIT 5.1 4.1 +24.4%
Slide 5: 2013 Operating Profit Bridge €m
2013 Operating Profit Bridge €m 5 4
Slide 6: ICG Cash Flow
ICG Cash Flow FY 2013 FY 2012 EBITDA * 49.2 45.8 Working Capital Movement (2.8) (2.6) Pension Payments (5.8) (5.4) Other (0.3) (0.3) Cash Generated from Operations 40.3 37.5 Interest (4.3) (1.8) Tax (0.2) (0.4) Capex (8.7) (8.5) Free Cash Flow 27.1 26.8 Asset Sales 9.8 19.8 Payments received on Fina
Slide 7: Ferries Division
| IRISH CONTINENTAL GROUP Ferries Division
Slide 8: Ferries Division Routes
Ferries Division Routes TROON s LARNE a BELFAST @ WARRENPOINT © IRISH SEA: IRISH FERRIES == STENA —— PRO me SEATRUCK === IRELAND-FRANCE: IRISH FERRIES === BRITTANY FERRIES === CELTIC LINK comme LD LINES em O ROSCOFF O CHERBOURG a IRISH CONTINENTAL GROUP WEEKLY SAILINGS Dublin - Holyhead Ulysses 28 J
Slide 9: Ferries Division
Ferries Division • Brand: Irish Ferries • 3 Conventional combined Car / RoRo ferries (2014: increased to 4) • 1 fast car carrying ferry, light freight • 4,122 sailings - UK (Holyhead 2696 Pembroke 1426) (2014: 5,000) Sailing Time - Holyhead Cruise Ferry 3¼ hours Holyhead Fast Ferry 2 hours Pembroke
Slide 10: Ferries Revenues 2013
Ferries Revenues 2013 Cars & Freight Passengers 35% 62% (2012 – 33%) (2012 – 64%) Other 3% (2012 – 3%) 10 9
Slide 11: Ferries Costs 2013
Ferries Costs 2013 Other 14% (2012 – 12%) Payroll 24% Depreciation (2012 – 22%) 12% (2012 – 12%) Repairs/Insurance 5% (2012 – 5%) Port Costs 19% (2012 – 20%) Fuel 26% (2012 – 29%) 11 10
Slide 12: Distribution
Distribution Car Bookings On-Line 81% Telephone 13% Ports 6% 100% 6 irishferries.com - 2013 4.9m visits 198,000 Bookings 11 11
Slide 13: Passenger Market
Passenger Market CAGR 1 Year H2 H1 3 Year 5 Year 2013 2013 2013 2010 - 2013 2008 - 2013 Irish Ferries +2% +3% 0% +1% +1% Republic of Ireland +1% +3% -3% -3% -2% All Ireland +1% +2% -2% -3% -1% 13 12
Slide 14: Car Market
Car Market CAGR 1 Year H2 H1 3 Year 5 Year 2013 2013 2013 2010 - 2013 2008 - 2013 Irish Ferries -1% +2% -4% -2% -2% Republic of Ireland 0% +2% -3% -4% -2% All Ireland -1% +1% -3% -4% -2% 14 13
Slide 15: RoRo Market
RoRo Market CAGR 1 Year H2 H1 3 Year 6 Year 15 Year 2013 2013 2013 2010 – 2013 2007 – 2013 1992 – 2007 Irish Ferries +12% +16% +8% +5% -4% +9% Republic of Ireland +4% +6% +3% 0% -3% +10% All Ireland +3% +4% +2% 0% -2% +6% 15 14
Slide 16: Ferries Division
Ferries Division 2013 2012 Change €m €m Turnover 161.7 160.0 1.1% Operating Costs (120.2) (121.0) -0.7% EBITDA 41.5 39.0 6.4% Depreciation/Amortisation (16.6) (16.6) Operating Profit 24.9 22.4 11.2% • Passenger, Car & On Board revenue down 2.2% • RoRo Freight revenue up 7.5% • Fuel costs €35.8m, dow
Slide 17: Container & Terminal Division
Container & Terminal Division 17 16
Slide 18: Container & Terminal Division
Container & Terminal Division • 5 chartered vessels • 2,900 owned and leased containers, 5,600 teu (20ft, 40ft, 45ft, reefers, flats, curtain siders) • 6 ports served (2 owned terminals) • Door to Door (54%) Transport plus Quay to Quay (46%) (feeder) • DFT Terminal in Dublin - Principal terminal in
Slide 19: Eucon Container Routes
i <—s Eucon Container Routes Biss IRISH CONTINENTAL GROUP BELFAST @ DUBLIN e CORK @ .@ ROTTERDAM © ANTWERP @ RADICATEL
Slide 20: Terminals
Terminals 2 strategically located container handling terminals at Dublin and Belfast. • Annual throughput of 143,000 lifts (2013) • 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 21: Container Handling
Container Handling CAGR 1 Year 3 Year 5 Year ICG -3% +2% -4% All Ireland 0%* -1% -6% * Based on figures January – September 2013 21 20
Slide 22: Container & Terminal Division
Container & Terminal Division Continuing Operations 2013 2012 Change €m €m Turnover 104.3 97.4 7.1% Operating Costs (96.6) (90.6) 6.6% EBITDA 7.7 6.8 13.2% Depreciation/Amortisation (2.6) (2.7) -3.7% Operating Profit 5.1 4.1 24.4% • Container volumes up 10.4% at 279,200 teu • Terminal volumes down 2
Slide 23: Group
Group • Fuel • Pension Funds • Dividends/Share Buybacks • Outlook 23 22
Slide 24: ICG Fuel Costs
ICG Fuel Costs Continuing Operations FY 2013 FY 2012 Change 2013 v’s 2012 Consumption (000 tons) Heavy Fuel Oil 79.3 78.0 +1.7% Marine Diesel 13.8 14.2 -2.8% 93.1 92.2 +1.0% Price (€ per ton) Heavy Fuel Oil €479 €536 -10.6% Marine Diesel €709 €720 -1.5% Brent Crude (guide) $108.67 / €81.83 $111.60 /
Slide 25: Group Pension Funds
Group Pension Funds Company Sponsored Funds Dec 2013 Dec 2012 Dec 2011 Dec 2010 €m €m €m €m Assets 230.5 213.5 193.5 200.3 Liabilities 265.2 268.1 215.2 206.5 Deficit (34.7) (54.6) (21.7) (6.2) Discount Rate € / £ 3.6% / 4.35% 3.8% / 4.4% 5.3% / 4.9% 5.5% / 5.5% - Company in advanced negotiation wit
Slide 26: Dividend / Share Buybacks
Dividend / Share Buybacks Cash Returned to Shareholders 2008 - 2014 Dividend/ Buyback/ €m Redemption Tender Offer 2008 Final* 100c 24.5m 2009 Final* 100c 24.6m 2010 Final* 100c 25.0m 2011 Final* 100c 25.1m 4.0m 2011 Interim 33c 8.2m 2012 Final* 67c 16.7m 2012 Interim 33c 8.0m 10.1m 111.5m 2013 Final
Slide 27: Current Trading / Outlook
Current Trading / Outlook General • Irish and UK economies growing • Current fuel prices are similar to 2013 levels (mandatory low sulphur fuel from 1 January 2015 to affect Eucon. Price surcharge will be applied. Small impact for Irish Ferries.) Tourism • Passenger numbers down 4% YTD • Car numbers
Slide 28: Appendix: Ferries - Fleet
Ferries - Fleet APPENDIX FLEET 28 APP
Slide 29: Ferries - Fleet
Ferries - Fleet Year Built 2001 Ulysses Cost €106m Ulysses GT 50,900 tons Ulysses PAX 1875 Cars 1342 Jonathan Swift Lane Meters 4.1km 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 30: 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 OscarOscar Wilde Year Built 1987 Wilde Purchased in 2007 €51m - plus upgrade GT 32,000 tons PAX 1458 Beds 1376 Cars 580 Lane Meter
Slide 31: 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 — FY2013 Earnings Presentation on 6ix