Mobico Group Plc · LSE:MCG
Mobico — National Express Group — H1 2007 Earnings Presentation
29 slides from Mobico's earnings presentation, Jul 26, 2007
Slide 1: Interim Results
Interim Results For the six months ended 30 June 2007 26 July 2007
Slide 2: Richard Bowker, Chief Executive
Richard Bowker Chief Executive 2
Slide 3: Half Year
HALF YEAR • Strong trading across all divisions • Continental Auto • Integration of UK businesses • Record bid season in North America • Official travel supplier to Wembley and partnership with FA • Industry-leading performance and customer service record on UK railways • Growth in the West Midlands
Slide 4: Adam Walker, Finance Director
Adam Walker Finance Director 4
Slide 5: Financial Highlights
FINANCIAL HIGHLIGHTS • Revenue up 5% to £1.3bn (2006: £1.3bn) • Normalised operating profit up 8% to £90.6m (2006: £84.0m) • Operating cash flow of £77.7m (2006: £67.3m) • Normalised operating margin of 6.9% (2006: 6.7%) • Normalised profit before tax up 18% to £79.0m (2006: £67.2m) • Normalised dil
Slide 6: Group Income Statement
GROUP INCOME STATEMENT 2007 2006 £m £m Revenue 1,309.3 1,252.7 Normalised operating profit 90.6 84.0 Profit/(Loss) from associates 0.5 (3.8) Interest (12.1) (13.0) Normalised profit before tax 79.0 67.2 Exceptional items --- (27.2) Goodwill & intangible asset amortisation (13.6) (34.5) Profit before
Slide 7: Divisional Operating Profit & Margin
DIVISIONAL OPERATING PROFIT & MARGIN Operating profit Operating margin 2007 2006 2007 2006 £m £m % % Alsa 18.9 18.1 15.5 15.5 Coaches 6.1 5.3 5.9 5.6 Buses 19.8 19.0 12.6 12.9 North America 24.1 26.6 14.8 17.2 Trains 28.7 20.0 3.7 2.7 Central functions (7.0) (5.0) --- --- 90.6 84.0 6.9 6.7 7
Slide 8: Alsa
ALSA • Passenger growth 3% • Internet sales 20% • Margin outlook 8
Slide 9: Alsa
ALSA • Long distance growth ¾ Promotional fares ¾ Loyalty card ¾ Supra • Regional contracts • New urban contracts • Rabat new contract • Investment in fleet €19.5m 9
Slide 10: Coaches
COACHES • Passenger growth 3% • Internet sales 34.5% • Improvement in margin • Seasonality • Strong cash conversion 10
Slide 11: Coaches
COACHES • Revenue growth ¾ Yield management ¾ Special events ¾ Core network ¾ Targeted fun fares • Investment in infrastructure ¾ Stations ¾ Ticket machines • Eurolines opportunity 11
Slide 12: Buses
BUSES • Passenger growth ¾ West Midlands 2% ¾ Dundee 4% • Fuel hedged 29m litres (58m full year) 12
Slide 13: Buses
BUSES • Fare paying passenger growth • Concessionary fare scheme • London ¾ New and retained contracts • Investment in fleet 13
Slide 14: North America
NORTH AMERICA • Top line growth 16% • ROIC 11.5% • Contracts retained 98% • Net new revenue won $38m • Fuel costs absorbed $13m for full year • Adverse currency impact £2.4m 14
Slide 15: North America
NORTH AMERICA • Significant growth pre fuel costs in local currency • Record bid season • Customer focussed • Competitive landscape • Business Transformation project on track • Stewart Airport 15
Slide 16: Trains
TRAINS • Passenger growth 6% • PPM for division 90.4% • Rail bid costs £7.5m • EC4T deal costs £8.1m • Refurbishment costs £5.5m 16
Slide 17: Trains
TRAINS • Recovery of financial performance at ‘one’ ¾ London economy ¾ Improved performance ¾ Growth at Stansted ¾ Refurbished trains • EC4T • Franchise exit costs 17
Slide 18: Divisional Cash Flow
DIVISIONAL CASH FLOW UK UK UK North Alsa Central Total Coach Bus Train America Functions £m £m £m £m £m £m £m Normalised operating profit 6.1 19.8 28.7 24.1 18.9 (7.0) 90.6 Depreciation/ amortisation of FA grants/ 2.3 8.4 8.1 12.3 6.3 0.7 38.1 profit on disposal/ share based payments EBITDA 8.4 28.2
Slide 19: Movement in Net Debt
MOVEMENT IN NET DEBT 2007 £m Net Debt at 1 January (438.4) Operating cash flow 77.7 Payments to associates (8.4) Interest (12.2) Taxation 0.1 Dividends (36.5) Share proceeds 4.8 Cash inflow before acquisitions and disposals 25.5 Acquisitions and disposals (3.6) Currency translation 3.8 Net Debt at 3
Slide 20: The Future
THE FUTURE • Three geographies with strong economies • Management excellence • Clear strategy is being implemented • Developing plans in areas where we can differentiate ourselves 20
Slide 21: UK Integration
UK INTEGRATION • Formation of single UK business group • Acceleration of decision making • Annual benefits of £11 million ¾ Property ¾ People ¾ Systems • One-off cost of £8.5 million in 2007 • Implementation from 1 January 2008 21
Slide 22: Summary
SUMMARY • Strong trading performance • Current trading gives confidence for full year • Growth opportunities across three geographies ¾ Acquisition growth in core markets ¾ Re-orientate business towards the customer • Shareholder value 22
Slide 23: Interim Results
Interim Results For the six months ended 30 June 2007
Slide 24: Appendices
APPENDICES
Slide 25: Appendices: Divisional Revenue
APPENDICES DIVISIONAL REVENUE 2007 2006 £m £m Coaches 103.5 94.8 Buses 157.0 147.5 Trains 771.1 744.0 North America 162.8 155.0 Alsa 121.7 117.1 Inter-company elimination (6.8) (5.7) 1,309.3 1,252.7 25
Slide 26: Appendices: Balance Sheet
APPENDICES BALANCE SHEET 30 June 31 December 2007 2006 £m £m Goodwill and intangibles 687.4 697.6 Property, plant and equipment 499.3 501.9 Other non-current assets 31.1 37.2 1,217.8 1,236.7 Working capital (330.0) (339.0) Non-current assets held for sale 17.9 17.7 Net debt (412.7) (438.4) Provision
Slide 27: Appendices: Currency
APPENDICES CURRENCY Closing Rate Average Rate 2007 2006 2007 2006 US Dollar 2.01 1.85 1.98 1.79 Canadian Dollar 2.14 2.06 2.23 2.03 Euro 1.48 1.44 1.48 1.45 27
Slide 28: Appendices: Fuel
APPENDICES FUEL 2007 2008 2009 Volumes hedged (million litres) UK Bus, UK Coach and UK Train 142 57 24 North American Bus 45 23 12 Alsa 42 35 24 229 115 60 Percentage of usage hedged 90% 68% 35% 28
Slide 29: Interim Results
Interim Results For the six months ended 30 June 2007
National Express Group — H1 2007 Earnings Presentation on 6ix