Mobico Group Plc · LSE:MCG
Mobico — National Express Group — H1 2005 Earnings Presentation
24 slides from Mobico's earnings presentation, Jul 28, 2005
Slide 1: Interim Results
Interim Results For the six months ended 30 June 2005 28 July 2005
Slide 2: Phil White, Chief Executive
Phil White Chief Executive
Slide 3: Half Year Highlights
HALF YEAR HIGHLIGHTS • Strong financial performance • Growth in earnings and dividend • Delivering premier league performance • Innovation driving passenger growth • Disposal of Public Transit to Connex • Record bid season in North America • Shareholder value enhanced
Slide 4: Adam Walker, Finance Director
Adam Walker Finance Director
Slide 5: Financial Highlights (1)
FINANCIAL HIGHLIGHTS (1) • Strong financial results ¾ Margin improvement ¾ Costs controlled ¾ Cash flow generation ¾ Shareholder value • IFRS restatement presented in June
Slide 6: Financial Highlights (2)
FINANCIAL HIGHLIGHTS (2) • Turnover £1.1bn (2004*: £1.2bn) • Normalised operating profit up 26.5% to £67.3m (2004*: £53.2m) • Normalised profit before tax of £58.1m up 47.5% (2004*: £39.4m) • Normalised diluted EPS of 31.3p up 44.9% (2004*: 21.6p) • Interim dividend of 10.0p up 7% (2004 : 9.35p) • N
Slide 7: Group Income Statement
GROUP INCOME STATEMENT 2005 2004* £m £m Revenue 1,077.7 1,157.9 Normalised operating profit 67.3 53.2 Loss from associates (4.4) (4.3) Interest (4.8) (9.5) Normalised profit before tax 58.1 39.4 Exceptional items (0.3) (5.3) Goodwill & intangible asset amortisation (18.3) (17.2) Profit before tax 39
Slide 8: Divisional Operating Profit and Margin
DIVISIONAL OPERATING PROFIT AND MARGIN Operating profit Operating margin 2005 2004* 2005 2004* £m £m % % Coaches 4.1 2.1 4.5 2.4 Buses 18.2 19.6 14.3 17.0 Trains 27.1 15.0 3.7 1.8 North America - continuing 22.6 20.6 18.3 17.8 Central functions (4.7) (4.1) - - 67.3 53.2 6.2 4.6 * Restated under IFRS
Slide 9: Trains Financial Performance
TRAINS FINANCIAL PERFORMANCE • MML - impact of CTRL blockade; introduction of new trains • Central - 6% passenger growth; new trains introduced • Wessex - improved financial performance • Gatwick - strong passenger growth reduces losses • ‘one’ - 6-month contribution; passenger revenue on budget; in
Slide 10: Divisional Cash Flow
DIVISIONAL CASH FLOW UK UK UK North Central Total Coaches Buses Trains America Functions £m £m £m £m £m £m Normalised operating profit 4.1 18.2 27.1 22.6 (4.7) 67.3 Normalised operating profit from - - - 2.7 - 2.7 discontinued operations Depreciation/ amortisation of FA grants/ 2.4 7.6 6.5 10.9 1.0
Slide 11: Movement in Net Debt
MOVEMENT IN NET DEBT 2005 £m Net Debt at 1 January (136.6) Operating cash flow 105.1 Interest (13.9) Taxation (10.3) Dividend (28.1) Shares and investments (27.2) Cash inflow before acquisitions and disposals 25.6 Acquisitions and disposals (19.9) Currency translation (12.4) Net Debt at 30 June (143
Slide 12: IFRS
IFRS • Restatement of 2004 results published 27 June • Treatment of RPS under IAS 19 • One-off impact to UK Bus under IFRS 2 in 2005 • Overall financial impact minimal • No significant earnings volatility anticipated
Slide 13: Slide 13
Slide 14: Coaches
COACHES • Strong passenger growth of over 5% • Further roll-out of best value fares • Continued migration to direct distribution channels • Investment in coach station facilities ¾ Heathrow ¾ Digbeth • Development of new DDA coach • Consolidation of operating bases
Slide 15: A SNES avouite number WA
A SNES avouite number WA ——_—_ —a— (ex
Slide 16: Buses
BUSES • Relationships with local councils • Growth from new service initiatives • National concessionary fare scheme • Driver recruitment campaign • Acquisition of Tellings Golden Miller’s London operations • £1.3m kick-start financing for Travel Dundee
Slide 17: Slide 17
Slide 18: Trains
TRAINS • Premier league operational performance
Slide 19: Rail Performance
RAIL PERFORMANCE 2004/5 2003/4 Percentage of trains arriving on time Q3 Q3 % % Midland Mainline 89.8 68.5 C2c 92.4 83.6 ‘one’ 86.9 - Silverlink 83.3 77.7 Wagn 86.6 79.8 Central Trains 67.2 67.8 Gatwick Express 83.4 78.6 Wessex Trains 83.1 79.6 Source: SRA quarterly performance figures 31 December 20
Slide 20: Trains
TRAINS • Premier league operational performance • Passenger growth of 4% • Joint performance initiatives with Network Rail • Rail bidding in full swing • DfT franchise remapping • SRA/ DfT discussions relating to MML, Central, Silverlink and Gatwick
Slide 21: Slide 21
Slide 22: North America
NORTH AMERICA • Strategic Review • Disposal of Public Transit operation • Record bid season completed • Renewal rates remain high • Process re-engineering project underway • Relocation of Head Office
Slide 23: Summary
SUMMARY • Disposal of Public Transit • Half year in line with expectations • Strong cash flow and low debt facilitate growth opportunities • Seeking acquisitions in core businesses • Strategy to enhance shareholder value ¾ Top line growth ¾ Investment in facilities ¾ Customer service initiatives ¾ D
Slide 24: Interim Results
Interim Results For the six months ended 30 June 2005 28 July 2005
National Express Group — H1 2005 Earnings Presentation on 6ix