Mobico Group Plc · LSE:MCG
Mobico — National Express Group — FY2008 Earnings Presentation
23 slides from Mobico's earnings presentation, Feb 26, 2009
Slide 1: Full Year Results
Full Year Results For year ended 31 December 2008 26 February 2009
Slide 2: Richard Bowker, Chief Executive
Richard Bowker Chief Executive
Slide 3: Agenda
Agenda g • Highlights • Strategic update • 2008 financial results • Cash management • Looking forward 3
Slide 4: Operational highlights
Operational highlights • Strong performance in delivery of Rail franchises in 2008, including meeting all first year commitments for East Coast • Robust growth in UK bus and coach, with enhanced efficiencies and cost savings g from integration g • Excellent customer retention in North America bus, s
Slide 5: Financial results
Financial results • Continuing revenue up 5.9% to £2,767.0m • Normalised operating margin improved to 9.2% (2007: 8.1%), excluding discontinued operations • Normalised profit before tax up 9.7% to £194.1m • Normalised diluted EPS up 11.6% to 93.6p • Operating cash flow £152.3m • Total T t l dividend
Slide 6: Our Strategy
Our Strategy gy Our Core O C Leveraging on our business successful model • High quality operational • Develop innovative delivery of public products & services to transport grow organically • Delivering a customer • Acquire and develop driven, branded businesses in new proposition markets 6
Slide 7: Strategic update
Strategic g update p Our Core business Leveraging on our successful model • New partnership model driving West Midlands • New market development growth in coach • Integrated approach • New rail franchise achieving improved service successfully mobilised to delivery across rail proven NX model • Mark
Slide 8: Jez Maiden, Group Finance Director
Jez Maiden Group Finance Director
Slide 9: Income statement
Income statement 2008 2007 £m £m Continuing Operations Revenue 2,767.0 2,612.3 Normalised profit from operations 253.9 210.4 Net finance costs (51 5) (51.5) (29 0) (29.0) Associates & JVs - 0.4 Normalised profit before tax 202.4 181.8 Discontinued Operations (8.3) (4.8) Normalised profit before tax
Slide 10: Divisional Revenue year-on-year growth
Divisional Revenue yyear-on-year y g growth (local currency) Lik for Like f like lik Reported % Yield % Volume % Total % Bus + 3 2 5 6 ++ Coach 6 (1) 5 12 Rail 5 2 7 (9) Spain 3 2 5 40 North America N/A N/A 8 12 + West Midlands only for “like for like” ++ Express only for “like for like” 10
Slide 11: Divisional performance - UK
Divisional p performance - UK Normalised operating p gpprofit • Bus & Coach benefiting from £m 2008 2007 integration Continuing: • Higher fuel cost impact Bus 40 0 40.0 43 5 43.5 • New NX London routes Coach 27.0 27.9 • Strong cross-country coach revenue; Kings Ferry successful Bus & Coach 67.0 71.4
Slide 12: Divisional performance – North America and Spain
Divisional p performance – North America and Spain North America continues revenue growth Normalised operating profit • Strong customer retention and new contract wins £m 2008 2007 • Margin constrained by cost performance, with Local currency (m) ‘double-running’ double running costs • Business Tran
Slide 13: Exceptionals
Exceptionals p Exceptional Other it items it items £m £m UK (17.2) Intangible amortisation (55.2) North America (11.1) Interest rate hedges (11.5) Spain (2.6) Profit on disposal 5.1 Continuing (30 9) (30.9) T Taxation ti (continuing) ( ti i ) 75 5 75.5 Discontinued (7.9) Total charge in year £(24.9)
Slide 14: Pensions and Tax
Pensions and Tax Pensions (IAS 19 basis) Tax • Defined benefit (DB) in UK only • Effective tax rate on normalised • All ‘long-term’ DB schemes now closed profits: 25.8% (2007: 27.2%) to new members • Normalised tax charge £52 £52.3m 3m – Bus schemes deficit £3.6m (2007: (2007: £49.5m) £5.1m deficit)
Slide 15: Operating cashflow
Operating p g cashflow £m 2008 2007 • Significant growth in EBITDA EBITDA, Normalised profit from 253.9 210.4 reflecting acquisition & profit operations performance Depreciation 96.0 79.6 • Investment at 1.2 x depreciation Other items 0.5 (2.4) – North America BT/fleet & Spain EBITDA 350.4 287.6 • S
Slide 16: Net Cashflow
Net Cashflow £m 2008 2007 • Lower franchise exit costs Operating cashflow 152 3 152.3 200 9 200.9 • Lower free cashflow reflecting Discontinued investment, rationalisation & operations & franchise (12.5) (36.1) exit acquisition interest Exceptionals (27.9) (11.3) • Foreign currency adverse impact on
Slide 17: Cash management – our key priority
Cash management g – our keyy p priority y • No facilities mature within 18 months – €540m acquisition q facility: y Sept p 2010 – £800m revolving facility: June 2011 – Sufficient committed undrawn liquidity • Covenants C t ttested t d half h lf yearly l – Dec 2008: o Gearing 3.5x (<4.0x limit) o Int
Slide 18: Cash management – financial plan
Cash management g – financial p plan • Our financial plan targets delivery of: – Strong cash management – A stronger balance sheet • Strong cash generative businesses – Contract & concession backed – Completing period of sustained investment – Opportunities to drive working capital improvement • Key
Slide 19: Economic impact of recession on our business
Economic impact p of recession on our business • Global economy facing considerable uncertainty • Range of businesses with differing economic & profit exposure Less sensitive Economic Exposure More sensitive Bus Coach Rail Rail UK UK EA EC NA Spain c2c Characteristics • Government-type • Medium disc
Slide 20: Review of East Coast
Review of East Coast We said: We delivered: • c10% revenue growth • Revenue growth of over 9% • Operational • Dramatic improvement in performance a top reliability priority • Customer C t satisfaction ti f ti off • Customer satisfaction 88% makes East Coast the needed urgent attention best long dist
Slide 21: East Coast Looking Forward
East Coast Looking g Forward • Whole rail industry facing the challenge of economic uncertainty • Constructive dialogue ongoing with DfT • Self-help solutions are our priority focus – Revenue maximisation – Cost reduction • We believe our plans overall will deliver a profitable rail division in 2009
Slide 22: The future
The future • Our strategy is clear and unchanged • A strong and balanced portfolio of transport businesses • Clear focus on strong cash management • Balance sheet and stable financial platform a key priority • Plans in place to come through recession resiliently • A track record of delivery gives co
Slide 23: national express
4 national
National Express Group — FY2008 Earnings Presentation on 6ix