Mobico Group Plc · LSE:MCG
Mobico — National Express Group — H1 2004 Earnings Presentation
26 slides from Mobico's earnings presentation, Jul 29, 2004
Slide 1: Interim Results
Interim Results For the six months ended 30 June 2004 29 July 2004
Slide 2: Phil White, Chief Executive
Phil White Chief Executive 2
Slide 3: Half Year Highlights
HALF YEAR HIGHLIGHTS • Strong financials • Good operational performance • Increased earnings • Improved dividend • Launch of ‘one’ • Improved rail performance • New franchise extensions • Strong performance across all divisions 3
Slide 4: Adam Walker, Finance Director
Adam Walker Finance Director 4
Slide 5: Financial Highlights (1)
FINANCIAL HIGHLIGHTS (1) • Ahead of expectations for the half year • Margin improvement in three of the four core divisions • Significant free cash flow • Well positioned to enhance shareholder returns 5
Slide 6: Financial Highlights (2)
FINANCIAL HIGHLIGHTS (2) • Turnover £1.3bn (2003: £1.3bn) • Normalised operating profit up 9% to £61.9m (2003*: £56.6m) • Normalised profit before tax of £47.9m up 19% (2003*: £40.2m) • Normalised diluted EPS of 27.0p up 17% (2003*: 23.1p) • Interim dividend of 9.35p (2003: 8.5p) increase of 10% • E
Slide 7: Profit & Loss Account
PROFIT & LOSS ACCOUNT 2004 2003* £m £m Turnover 1,266.7 1,258.8 Operating profit before goodwill and exceptionals 61.9 56.6 Loss from associates (4.3) (3.7) Interest (9.7) (12.7) Normalised profit before tax 47.9 40.2 Exceptional items (5.3) - Goodwill amortisation (26.4) (22.4) Profit before tax 16
Slide 8: Divisional Turnover
DIVISIONAL TURNOVER 2004 2003 £m £m Buses - continuing 107.0 103.8 - acquisitions 8.1 - Trains 838.6 823.6 Coaches 87.8 85.3 North America - Student 113.8 129.1 - Public Transit 78.0 87.2 Australia Bus 33.4 29.8 1,266.7 1,258.8 8
Slide 9: Divisional Operating Profit and Margin
DIVISIONAL OPERATING PROFIT AND MARGIN Operating profit Operating margin 2004 2003* 2004 2003* £m £m % % Buses 21.1 22.1 18.3 21.3 Trains 15.7 9.0 1.9 1.1 Coaches 4.2 2.9 4.8 3.4 North America - Student 20.8 23.3 18.3 18.0 - Public Transit 3.0 1.2 3.8 1.4 Australia Bus 1.2 1.7 3.6 5.7 Central costs
Slide 10: Bus Operating Profit
BUS OPERATING PROFIT 2002 * 2003 * 2004 £m £m £m Operating profit as reported 49.8 47.5 21.1 Operating leases 1.3 2.7 1.8 Concessionary fares methodology - - 0.5 51.1 50.2 23.4 Restated margin 24.5 23.7 21.9 * Restated for change in classification 10
Slide 11: Trains Division
TRAINS DIVISION Turnover Operating Profit/(Loss) 2004 2003* 2004 2003* £m £m £m £m London & SE 348.6 274.6 5.9 8.8 Long Distance 106.3 93.1 6.0 5.9 Regional 383.7 455.9 5.1 (4.5) Franchise bid costs - - (1.3) (1.2) 838.6 823.6 15.7 9.0 * Restated for change in classification 11
Slide 12: North America
NORTH AMERICA 2004 2003* $m $m Student Transportation - Turnover 207.4 208.4 - Operating profit 37.9 37.6 - Margin 18.3% 18.0% Public Transit - Turnover 142.2 140.7 - Operating profit 5.5 1.9 - Margin 3.8% 1.4% * Restated for change in classification 12
Slide 13: Earnings and Dividends
EARNINGS AND DIVIDENDS • Earnings per share ¾ Basic 6.4p (2003*: 8.3p) ¾ Normalised diluted 27.0p (2003*: 23.1p) • Dividend per share 9.35p (2003: 8.5p) • Dividend cover 2.9 times (2003*: 2.7 times) * Restated for change in classification 13
Slide 14: Divisional Cash Flow
DIVISIONAL CASH FLOW UK UK UK North Australia Central Total Buses Coaches Trains America Bus costs £m £m £m £m £m £m £m Operating profit before exceptionals 21.1 4.2 15.7 23.8 1.2 (4.1) 61.9 Depreciation / amortisation of FA grants/ 5.0 3.1 7.0 10.4 1.9 0.3 27.7 Profit on disposal EBITDA 26.1 7.3 22
Slide 15: Movement in Net Debt
MOVEMENT IN NET DEBT 2004 £m Reported Net Debt at 1 January (289.1) Add back ScotRail rolling stock cash (18.7) Effective Net Debt at 1 January (307.8) Operating cash flow 150.0 Interest (10.3) Taxation (3.1) Dividend (23.6) Shares and investments 0.6 Cash inflow before acquisitions and disposals (1
Slide 16: = pe VON favourite fiber, /ey.
= pe VON favourite fiber, /ey. AA a7 9 iain
Slide 17: Buses
BUSES • High quality integrated network 17
Slide 18: Bus Patronage per Head
BUS PATRONAGE PER HEAD 160 137 140 128 120 101 106 100 84 87 80 2002/3 60 40 20 0 y ire r r ire s ea te se nd h sh es W er ks la rk ch M & id or Yo an tM ne tY tM Ty h es es ut W G W So 18 Source: Centro Annual Stats Report 2003
Slide 19: Buses
BUSES • High quality integrated network • New initiatives to stimulate growth Route 67 statutory quality partnership Saverbus Premium products • Dundee Concordat • Travel London • Continued investment in new buses 19
Slide 20: Trains
TRAINS • Improved operational performance • Passenger growth of 5% • Integrating the ‘one’ franchise • New financial arrangements for Central and ScotRail • Two year franchise extension for Silverlink • DOO introduced at c2c • Getaway Giveaway summer promotion 20
Slide 21: Rail Promotion
RAIL PROMOTION 21
Slide 22: Coaches
COACHES • A new look business • Passenger growth of 6% • Roll-out of best value fares • New state-of-the-art coaches • Pilot of “CoachCom” technology • Landmark coach station for Birmingham 22
Slide 23: North America
NORTH AMERICA • Seamless transition to new management team • Good results from bidding season and contract renewals at Durham School Services • Increased market share in Ontario at Stock • Engineering and procurement cost initiatives throughout the division • Improved financial performance at Public
Slide 24: Government Policy
GOVERNMENT POLICY The Future of Rail • Less complicated structure • Closer working relationship • Better cost control • Improved performance The Future of Transport – Buses • Valuable role for buses • BSOG retained • Partnerships between local authorities and operators 24
Slide 25: Key Messages
KEY MESSAGES • 2004 – a year of change • Greater customer focus • Strong cash flow business • Flexibility for the future • Increasing shareholder value • Growth is back 25
Slide 26: Interim Results
Interim Results For the six months ended 30 June 2004 29 July 2004
National Express Group — H1 2004 Earnings Presentation on 6ix