Full Year Results. Year ended 31 st December February 2012

Transcription

1 Full Year Results Year ended 31 st December February 2012

2 Delivering industry-leading perfrmance Dean Finch Grup Chief Executive

3 Natinal Express is nw a best in class public transprt peratr Recrd statutry prfit befre tax and amrtisatin f 180.2m (2010: 97.3m, 2009: (23.1)m) N exceptinal charges in 2011 Grup revenue grwth f 5.3% t 2,238m Operating prfit up 10.3% t 225.2m (2010: 204.2m) Sectr leading perating margin f 10.1% - up frm 5.9% in 2009 Basic EPS up 14.4% t 27.0p Annual dividend grwth f 5.6%; final dividend up 8.3% All terms in this reprt are nrmalised except where therwise stated 3

4 Turnarund nw cmplete in every divisin Majr recvery prgramme delivered within tw years: UK Bus margins imprved frm 7.1% t 12.4% Nrth America margins increase frm 5.7% t 10.0% Recrd prfits in UK Cach: 34.9m Industry leading margins in Spain, Nrth America, UK Cach and UK Rail 4

5 Delivering rganic grwth in every divisin Revenue grwth in every divisin Supprted by vlume grwth: Passenger vlumes in Spain, UK Cach and UK Rail Bus vlume in Nrth America Vlume grwth in UK Bus by end f 2011 Investing in new fleet 132m spent in 2011; ver 1,300 new vehicles 5

6 Natinal Express Strng platfrm t deliver sharehlder value Cre bus & cach platfrm Outstanding in Spain Nrth America grwth ptential Multiple grwth pprtunities Strng margins Cash generative Grwth ptential Value fr mney fr custmers Prven perfrmer in recessin Margins prtected with tp line grwth Winning new business Mdal shift Delivering mre cnversin cntracts Rbust return n capital established Market pprtunities Rail Emerging markets Develping Eurpe Cmmn grup strengths Strng financial platfrm Operatinal excellence Established team 6

7 Recrd prfit delivery Jez Maiden Grup Finance Directr

8 2011 Turnarund has delivered strng results m Change Revenue 2, , % Operating prfit % Net finance csts (46.4) (44.0) (5)% Assciates Prfit befre tax % Exceptinal charge/discntin d - (63.6) - Intangible amrtisatin (50.8) (57.1) 11% Tax (26.8) Statutry prfit % Basic earnings per share % 8

9 2011 Revenue and prfit grwth in each divisin Operating Prfit m Change Bus % Cach % Rail % Ttal UK % Spain % Nrth America % Centre (14.6) (13.0) (12%) Prject csts (9.2) - - Grup % Revenue grwth driven by yield management Vlume grwth in every business by year end Turnarund cmpleted in UK Bus and Nrth America Margin develpment thrugh cntinuing cst base efficiency One ff prject-related csts, including settlement f US claim ( 5m) 9

10 2011 Organic grwth and cst management driving prfit m (3) (9) (6) (43) Organic grwth Csts Prcurement Other Develpment Prject csts Depreciatin Inflatin

11 2011 Revenue increase frm yield and vlume grwth Netwrk Efficiency* LFL grwth Yield Vlume Revenue Spain Urban - Spain 1% - 1% - 1% Urban - Mrcc 7% 30% 37% (36)% 1% Intercity 5% 1% 6% (1)% 5% Passenger 6% (3)% 3% Nn-passenger (2)% Ttal 4% Nrth America 8% UK Bus Passenger 11% (7)% 4% 2% 6% Cncessin/ther (2)% Ttal 2% UK Cach Cre NE netwrk 4% 1% 5% (1)% 4% Other (2)% Ttal 4% UK Rail 3% 5% 8% * Decrease / (increase) in mileage perated 11

12 2011 Rbust cash cnversin supprting fleet investment m (110.2) (52.5) (10.6) Operating prfit Depn/Other EBITDA Maintenance capex Wrking capital Deficit pensin Operating cash flw 71% cnversin f perating prfit int cash Increase in fleet replacement investment expected t drive passenger grwth Wrking capital increase: Scheduled Spanish scial security repayment Net extensin f receivables in Spain; ne custmer 12

13 2011 Free cash flw rbust as ne-ffs decline m Operating cash flw Rail franchise exit/discntinued (5.8) (25.5) Exceptinal cash (8.2) (52.6) Payments t assciates (8.0) (8.6) Net interest (44.6) (42.7) Tax & minrities (8.8) (8.6) Free cash flw One-ff payments significantly reduced: East Cast wash-up, n exceptinal charge Penultimate ICRRL (Eurstar) assciates payment Cash tax expense remains well belw Effective Tax Rate 13

14 2011 Free cash flw invested in rganic grwth, acquisitin and sustainable dividend Free cash flw 84.4m Grwth Capex 35.6m Nrth American bid wins Mrcc new cntracts Spain cntract wins Dividends 45.8m Final dividend +8.3% Ttal dividend 9.5 pence per share (2010: 6.0p) Acquisitins (net f dispsals) 7.6m Vgel (schl bus) Spain Return n capital emplyed 14.1% 13.2% Nn-rail dividend cver 2.1x 3.0x 14

15 2011 Rbust balance sheet with substantial debt capacity Gearing Ratis 31 Dec Dec 2010 Cvenant Ratings Net debt/ebitda 1.9x 2.1x <3.5x Mdys Baa3 Interest cver 7.2x 6.9x >3.5x Fitch BBB- Strng debt maturity prfile Gearing belw ur target level 2.0x t 2.5x net debt/ebitda Cmmitted t investment grade rating; rating cnfirmed 2011 N refinancing due until Drawn* Available Over 500m cmmitted headrm* at end 2011 * Available cash and undrawn cmmitted facilities 15

16 Executing ur strategy Dean Finch Grup Chief Executive

17 Delivering ur strategy in 2011 Driving imprvement in the existing cre peratins Delivering margin imprvement Achieving rganic grwth Targeting additinal grwth Securing targeted expansin Develping strategic pprtunities At least industry average margin achieved in each divisin Relentless fcus n cst base: taking ut unprfitable mileage, imprving prductivity Industry leadership: Spain, UK Cach, N America Revenue grwth in every divisin Vlume grwth in Spain, N America and UK Rail Attracting custmers thrugh better service and imprved accessibility Opprtunities t leverage psitin in ecnmic austerity New cntracts wn in Spain and N America wrth c. 250m Madrid Turist Bus; Agadir add-n Successful Nrth America bid seasn, Vgel acquisitin Same and similar mdes f transprt Overlapping gegraphies Advantages f scale with immediate synergies Clearly defined financial bjectives Operatinal excellence embedded Securing rganic grwth Develping pprtunities 17

18 Frm lss t recrd prfit in tw years 2009 Business Survival Managing debt & liquidity Reslving East Cast lsses Determining crprate wnership Achieving apprpriate capital structure 2010 Business Turnarund Actins Regaining peratinal cntrl Driving ut excess cst Creating effective leadership Refinancing debt 2011 Prfit and Grwth Imprving margin Delivering rganic grwth Surcing blt n acquisitins Identifying grwth ptins Return t dividend Revenue: 2,711m EBITA: 159.8m Margin: 5.9% PBT 1 : (23.1m) Gearing: 2.5x EPS: 17.8p 2 1 Pre-amrtisatin, pst exceptinals 2 Pst rights issue equivalent (nt IFRS) Revenue: 2,126m EBITA: 204.2m Margin: 9.6% PBT 1 : 97.3m Gearing: 2.1x EPS: 23.6p Perfrmance Revenue: 2,238m EBITA: 225.2m Margin: 10.1% PBT 1 : 180.2m Gearing: 1.9x EPS: 27.0p 18

19 Fur divisins nw deliver industry leading prfitability m Revenue EBITA Margin Industry leading margin New Management UK Bus % 12% 17% Prmted UK Cach % 14% 14% (NX) UK Rail 1, % 6% 6% (NX) Prmted Spain % 16% 16% (NX) x Nrth America % 10% 10% (NX) Key achievements UK Bus UK Cach UK Rail Spain Nrth America W Mids prfit nearly dubled Yield up Cst dwn Investing in fleet Strng prfit Grwth restred Segmentatin driving develpment Strng prfit Past issues reslved Grwth restred Mrcc develpment Austerity managed Prfit bradly dubled Margin restred/ cst ut Grwth delivered includes Lndn Bus revenues 19

20 Spain 2011 Intercity +6% revenue grwth in scheduled & turist and in all gegraphic areas Urban +5% revenue steady demand in Spain; Agadir cntract expansin Madrid City Tur cntract cmmenced Receivables management strng Revenue 635.4m 612.7m Revenue 551.1m 525.6m Operating prfit 90.1m 86.2m Operating margin 16.4% 16.4% % f Grup prfit 40% Outlk fr the future Excellent value, high quality services suits ecnmic cnditins Benefit frm reduced capacity in airlines/reductin in public funding f rail Flexible cst base & lng-term cncessins resilient platfrm Cntract/cncessin rder bk 3.1 billin fcus n renewing 9% revenue due fr tender in 2012 Multiple pprtunities fr cncessin/cntract expansin Mrcc, new utsurcing, partnerships Platfrm fr grwth in liberalising Eurpe/beynd utilise Alsa expertise, scale & reputatin 20

21 Nrth America 2011 Best in class margin - $40m annual savings delivered since 2009 Organic revenue grwth Acquisitins, Bids, Cnversins Excellent bid seasn 98% retentin, ver 1,000 rutes wn 94% custmer endrsement Strnger capital management Revenue $772.2m $712.1m Revenue 481.0m 459.8m Operating prfit 47.9m 36.9m Operating margin 10.0% 8.0% % f Grup prfit 21% Outlk fr the future $1.3 billin rder bk in lwer risk, highly cntracted schl bus market ffers stable, rbust returns Investment in technlgy will drive further margin imprvement Scpe fr prfitable expansin: Pipeline f cnversin pprtunities driven by funding pressure n schl bards Petermann acquisitin & synergy benefits Expansin int adjacent capital-light markets explring (para) transit market 21

22 UK Bus 2011 Rbust revenue grwth smarter marketing, new services, fleet investment 16% prfit imprvement better peratinal cst cntrl, leveraging Grup scale Embedding peratinal excellence efficient, n-time, lwest cst Revenue 263.5m 257.8m Operating prfit 32.7m 28.3m Operating margin 12.4% 11.0% % f Grup prfit Outlk fr the future Executing well, every day advanced driver accreditatin prgramme, lean engineering drive twards industry-leading margin Investment in fleet new buses intrduced ver 12 mnths, including 18 hybrids Technlgy real time service infrmatin, smartcards, telemetry/cctv will drive grwth Efficiency & grwth will help mitigate reduced fuel duty rebate frm April 15% 22

23 UK Cach 2011 Recrd prfit fr the divisin >5% revenue grwth in cre netwrk Yield imprvement shift away frm heavy discunting t everyday value Strng passenger vlume grwth in reginal and airprt rutes; significant Eurlines grwth Revenue 259.1m 250.3m Operating prfit 34.9m 32.0m Operating margin 13.5% 12.8% % f Grup prfit 15% Outlk fr the future Preeminent value leader in lng distance travel further pprtunities with austerity/rising rail fares Flexible, lw capital mdel further pprtunities fr imprvement Differentiate thrugh delivering great custmer service new rutes, 24/7 custmer supprt, fleet/technlgy investment Significant headwind frm withdrawal f senir citizen cncessinary funding frm Nvember 2011 mitigating actins underway Platfrm t expand Eurpean peratins alngside Alsa 23

24 UK Rail % revenue grwth acrss 2 franchises Vlume driven Expsure t strng Lndn/SE ecnmy NXEA cmpleted 185m investment prgramme delivery Strng prfit grwth acrss c2c and NXEA c2c tp perfrming UK peratr % f Grup prfit NXEA handver cmpleted Feb % Outlk fr the future c2c franchise extensin t May 2013 Prfit share basis Cntinued fcus n delivering industry-leading peratinal excellence Rail remains attractive value pprtunity Unlike peer grup, minimal residual dwnside fr rail earnings & franchise cash benefit c2c secured fur star EFQM rating & Netwrk Rail alliancing partnership Invested in highly experienced team t evaluate, bid & perate future franchises Submitted pre-qualificatin bids in current rund Revenue 688.3m 637.5m Operating prfit 43.4m 33.8m Operating margin 6.3% 5.3% 24

25 Summary Organic grwth fr existing prtfli Further margin imprvement Revenue grwth Cntract wins Strategic grwth Blt-n acquisitin t existing business Develpment f transit and paratransit Eurpean expansin Selected ther markets Rail ptential Capital strength Rbust balance sheet Cash generatin Fcused capex Strng funding psitin 25

26 Outlk 2012 Trading mmentum f 2011 cntinued int current year Gd underlying grwth in each business Already addressed the specific issues facing the sectr Fcus n grwth initiatives fr the future Rbust, defensible prtfli Markets ffer sustainable, prfitable grwth & strng cash generatin Driving margins further thrugh cst imprvement Building pipeline f cntract & market pprtunities ( 60 billin revenue market) 26

27 Q&A 27

28 Appendix 28

29 Diverse gegraphic & mdal prtfli Operating Prfit by gegraphy Operating Prfit by mde 49% 21% 40% Spain Nrth America UK 18% 40% 23% 19% Bus Schl Bus Cach Rail Excludes central & prject csts 29

30 2011 Summary divisinal incme statements m Spain N America UK Bus UK Cach UK Rail Revenue Depreciatin Nrmalised p. prfit Driver wages* 25% 44% 36% 7% 8% Capex Fuel* 13% 8% 11% 2% 5% * As a percentage f revenue Excludes third party peratrs 30

31 2011 Rail franchise payments Full year ( m) 2011 NXEA 2010 NXEA 2011 c2c 2010 c2c Franchise premium Franchise supprt credit (42.7) (42.3) - - Net cst

32 2011 Net finance csts Cmmitted Facilities: % 350 millin Sterling bnd % 225 millin Sterling bnd 500m unsecured revlving credit facility cmmitted until August 2014 Flating rate LIBOR % (EBITDA ratchet) m 2011 Bnd interest (37.8) Bank interest (8.4) Finance lease interest (5.0) Other interest and discunting (1.9) Interest paid (53.1) Interest received 6.7 Net finance cst (46.4) 32

33 2011 Risks managed: fuel and pensin Fuel Hedging % hedged 100% 50% Price per litre 44p 47p Match fuel requirements f cntracted businesses t length f cntract Owned businesses based n minimum 15 mnths; prvides a buffer fr price increases Vlume: 250 millin litres Pensins m (IAS19) Assets Liabilities Members Share Surplus/(Deficit)

34 2011 Other financial areas - pensins m Asset /(Liability) 2011 Asset /(Liability) 2010 P&L (charge)/credit 2011 P&L (charge)/credit 2010 UK Bus (16.8) (5.3) (1.9) (5.3) UK Cach UK Rail (2.2) (3.7) (6.8) (8.3) Other (1.4) (1.4)

35 2011 Alsa cncessin prfile Cncessins due fr renewal in Spain by quantity and annual revenue Annual Revenue ( ) Number f Cntracts 35

36 Natinal Express Grup PLC