1 / 37

Annual Results Year ended 30 April 2010 23 June 2010

Annual Results Year ended 30 April 2010 23 June 2010. Preliminary Results 2010. Cautionary statement. This document is solely for use in connection with a briefing on Stagecoach Group plc (“the Group”).

jluz
Download Presentation

Annual Results Year ended 30 April 2010 23 June 2010

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Annual ResultsYear ended 30 April 2010 23 June 2010 Preliminary Results 2010

  2. Cautionary statement This document is solely for use in connection with a briefing on Stagecoach Group plc (“the Group”). This document contains forward-looking statements that are subject to risk factors associated with, amongst other things, the economic and business circumstances occurring from time to time in the countries, sectors and markets in which the Group operates. It is believed that the expectations reflected in these statements are reasonable but they may be affected by a wide range of variables which could cause actual results to differ materially from those currently anticipated. No assurances can be given that the forward-looking statements in this presentation will be realised. The forward-looking statements reflect the knowledge and information available at the date of preparation. This document is not a full record of the presentation because it does not include comments made verbally by Stagecoach Group management or by others.

  3. Robert SpeirsChairman

  4. Highlights • Successful management of business through economic cycle • Further revenue growth • Tight cost control • Continued investment • Robust financial position • Adjusted EPS 18.7p (2009: 22.9p) • 8.3% increase in full year dividend per share • Positive outlook for 2010/11

  5. Martin GriffithsFinance Director

  6. Summary income statement Year to 30 April 10 £m Year to 30 April 09 £m Change £m UK Bus operating profit North America operating profit North America joint ventures’ profit after tax UK Rail operating profit Virgin Rail Group profit after tax Restructuring costs, group overheads and other items Operating profit Finance charges (net) Tax Profit excluding intangibles and exceptionals Intangibles and exceptionals, net of tax Reported profit from continuing operations 126.1 9.1 7.6 41.6 19.2 (11.6) 192.0 (30.7) (27.2) 134.1 (26.3) 107.8 125.6 25.2 0.3 55.7 34.0 (13.0) 227.8 (31.4) (33.0) 163.4 (29.9) 133.5 0.5 (16.1) 7.3 (14.1) (14.8) 1.4 (35.8) 0.7 5.8 (29.3) 3.6 (25.7)

  7. UK Bus Year to 30 April 10 Year to 30 April 09 Change 875.4 839.5 126.1 14.4% 650.1 314.7 830.8 805.9 125.6 15.1% 653.0 319.2 5.4% 4.2% 0.4% (0.7)% (0.4)% (1.4)% Revenue (£m) Like-for-like revenue (£m) Operating profit (£m) Operating margin (%) Estimated like-for-like passenger journeys (m) Like-for-like vehicle miles operated (m)

  8. North America Year to 30 April 10 Year to 30 April 09 Change 426.3 64.1 490.4 14.6 12.8 27.4 5.6% 499.5 9.6 509.1 42.3 0.5 42.8 8.4% (3.7)% (36.0)% (2.8)% Revenue – wholly owned (US$m) Revenue – joint ventures (US$m) Revenue - total (US$m) Operating profit – wholly owned (US$m) Operating profit – joint ventures (US$m) Operating profit – total (US$m) Operating margin (%) * Includes US$60.0m for business transferred to Twin America from 31 March 2009

  9. UK Rail Year to 30 April 10 Year to 30 April 09 Change 1,026.7 968.9 41.6 4.1% 3,262.0 1,214.9 977.7 932.4 55.7 5.7% 3,298.4 1,219.6 5.0% 3.9% (25.3)% (1.6)% (1.1)% (0.4)% Revenue (£m) Like-for-like revenue, excluding tram (£m) Operating profit (£m) Operating margin (%) Estimated passenger miles – S Western (m) Estimated passenger miles – E Midlands (m)

  10. Virgin Rail Group Year to 30 April 10 Year to 30 April 09 Change 355.3 25.5 7.2% 25.1 3,318.8 322.3 42.7 13.2% 43.9 2,757.4 10.2% (40.3)% (6.0)% (42.8)% 20.4% Revenue – 49% share (£m) Operating profit - 49% share (£m) Operating margin (%) Dividends received (£m) Estimated passenger miles

  11. Rail revenue risk sharing South Western East Midlands West Coast 785.9 703.8 (82.1) 43.7 Nil 303.8 257.3 (46.5) 28.7 Nil 795.6 671.0 (124.6) 77.4 77.4 Target revenue – year to 31 March 2010 (£m) Actual revenue – year to 31 March 2010 (£m) Revenue shortfall (£m) Theoretical revenue support (£m) Actual revenue support (£m)

  12. Miscellaneous income statement items Year to 30 April 10 Year to 30 April 09 Change Citylink joint venture (£m) Group overheads (£m) Restructuring costs (non-exceptional) (£m) Intangible asset expenses (£m) Post-tax exceptional items (£m) 1.2 (11.6) (1.2) (11.6) (11.1) (13.0) 1.0 (11.5) (2.5) (13.0) (13.4) (18.7) 0.2 (0.1) 1.3 1.4 2.3 5.7 • Exceptional items include £20.5m of ineffective interest rate derivatives arising in connection with December 2009 bond issue

  13. Finance charges and credit ratios Year to 30 April 10 Year to 30 April 09 Change Net Group finance charges* (£m) EBITDA from continuing operations and joint ventures* (£m) Year-end net debt (£m) Net Debt/EBITDA* EBITDA*/Net finance charges* (30.7) 283.9 (296.7) 1.0x 9.2x (31.4) 300.1 (340.1) 1.1x 9.6x (2.2)% (5.4)% (12.8)% (0.1)x (0.4)x * excluding exceptional items

  14. Taxation Year to 30 April 2010 Pre-tax Profit £m Tax £m Rate % Excluding intangible asset expenses and exceptional items Intangible asset expenses Exceptional items Reclassify joint venture taxation for reporting purposes Reported in income statement Cash tax paid (net) 168.7 (11.1) (24.3) 133.3 (7.4) 125.9 (34.6) 1.7 7.4 (25.5) 7.4 (18.1) (0.7) 20.5% 15.3% 30.5% 19.1% n/a 14.4%

  15. Movement in net debt Year to 30 April 2010 £m EBITDA from Group companies before exceptional items Operating exceptional items Loss on disposal of plant and equipment Equity-settled share based payment Dividends from joint ventures Movement in retirement benefit obligations Working capital movements Net interest paid Tax paid Net cash from operating activities Net capital expenditure including new hire purchase and finance leases Acquisitions /disposals of businesses, intangibles and investments Token sales and redemptions/others Cash generation Foreign exchange/income statement movements Equity dividends Share capital movements Decrease in net debt Opening net debt Closing net debt 255.9 (1.8) 2.0 6.3 35.7 (17.2) (10.7) (53.1) (0.7) 216.4 (101.9) (1.4) (0.2) 112.9 6.3 (76.7) 0.9 43.4 (340.1) (296.7)

  16. Capital expenditure New hire purchase and finance leases £m Impact of capex on net debt £m Disposal proceeds** £m Net 2009/10 Actual £m Cash spent on capex* £m UK Bus North America UK Rail (63.8) (1.9) Nil (65.7) (96.3) (12.5) (46.1) (154.9) 4.1 Nil 48.9 53.0 (92.2) (12.5) 2.8 (101.9) (32.5) (10.6) (46.1) (89.2) * Excludes capitalised intangible assets and assets acquired through business combinations ** Excludes proceeds from selling businesses

  17. Funding 30 April 10 30 April 09 Change 296.7 345.9 6.3 1.0x 9.2x 340.1 508.0 2.3 1.1x 9.6x (12.8)% (31.9)% 4.0 (0.1)x (0.4)x Net Debt (£m) Undrawn, committed bank facilities (£m) Average debt maturity (years) Net Debt / pre-exceptional EBITDA Pre-exceptional EBITDA / Finance charges

  18. Robust funding & cash conversion Strong conversion of profits to cash 5 years to 30 Apr 10 £m Track record of relatively low leverage Year 2003/4 2004/5 2005/6 2006/7 2007/8 2008/9 2009/10 Net debt/EBITDA 0.3 1.0 0.7 (0.8) 1.2 1.1 1.0 Net cash flows from operating activities after tax Profit after tax Exclude: Depreciation Amortisation Non-cash net gains on disposals of businesses and fixed assets Profit after tax excluding significant non-cash items Conversion ratio 1,155.5 887.0 361.2 72.7 (145.0) 1,175.9 98% Investment grade credit ratings of new bonds Agency S&P Fitch Moody’s Rating BBB- BBB Baa2

  19. Pensions 2010 Cash contributions £m 2009 Cash contributions £m 2010 Pension expense £m 2009 Pension expense £m 33.8 1.0 27.2* 62.0 37.3 1.0 22.4 60.7 UK Bus/Central North America UK Rail 22.0 1.7 21.1* 44.8 15.3 1.0 12.4 28.7 * Includes £5.7m increase from salary sacrifice • Post-tax deficit of £145.7m (2009: £57.7m) • Accounting value of pension assets, liabilities and costs will continue to vary with market fluctuations and assumptions • Rail – risks mitigated with obligations limited to contributions payable over duration of franchises • Bus – schemes closed to new entrants and contributions have stabilised

  20. Summary • Results significantly ahead of original expectations • Positive management action underpins profitability • Strong financial position and reduced leverage • Track record of strong cash conversion • Positive outlook for 2010/11 • Encouraging start to the new financial year

  21. Brian SouterChief Executive

  22. The Stagecoach difference • Comparative fares data extracted from TAS National Fares Survey 2009. The tables compare urban single fare levels by bus operator ownership.

  23. The Stagecoach difference Operational performance Customer service • Figures used refer to the measure of train punctuality – also known as PPM (public • performance measure) – which is commonly used throughout Europe. For long • distance operators, such as East Midlands Trains, this shows the percentage • of trains arriving within ten minutes of timetabled arrival at final destination. • London and south east operators (including South Western Trains), and regional • operators show the percentage arriving within five minutes of the timetabled • arrival. data covers the period 3 May 2009 to 1 May 2010. National Rail average • is for all franchised train operating companies. • Data extracted from National Passenger Survey, Spring Wave 2010. Percentages • are for overall satisfaction The National Passenger Survey (NPS) is conducted • twice a year from a representative sample of passenger journeys across the UK. It • surveys passengers’ overall satisfaction and satisfaction with 30 individual aspects • of service for each individual train operating company (TOC). Passenger ratings • are totalled for all TOCs across the country to provide a National Rail average.

  24. Growing the megabus brand - 1 2003: first pilot routes in UK 2005: megatrain launch; Scottish Citylink JV 2006: first routes in North America 2007: UK megabus network in profit 2009: North America megabus network in profit 2009: megabus launched in Canada

  25. Growing the megabus brand - 2 UK North America 42 locations in United States and Canada 50 locations in UK, plus 28 destinations with megatrain.com and 10 on megabusplus.com megabus.com: [x] locations megabus.com: [x] locations

  26. Sector-leading returns • The graph compares the performance of the Stagecoach Group Total Shareholder Return (‘TSR’) (share value movement plus reinvested dividends) over the 5 years to 30 April 2010 compared with that of Arriva, First Group, Go-Ahead, National Express, the FTSE Transport and Leisure All-Share Index, and the FTSE 250 Index.

  27. Outlook • Improving trends, consistent with economic recovery • UK Bus less sensitive to economic cycle • Cautious on bus fares: organic volume growth as economy recovers • Lower fuel costs in 2010/11 with increase in 2011/12 • Revenue support at South Western Trains and West Coast Trains • Well placed to increase earnings in 2010/11

  28. Annual ResultsYear ended 30 April 2010 23 June 2010

  29. Appendices

  30. Divisional income statements Year ended 30 April 2010 UK Bus £m North America £m UK Rail £m Virgin Rail Group (100%) £m 875.4 - - 16.6 (437.5) (122.2) (30.9) (54.8) - (11.4) - - - (35.6) (73.5) 126.1 266.1 - - 2.8 (117.8) (38.7) (19.4) (20.1) - (6.8) - - - (19.2) (37.8) 9.1 1,026.7 7.8 (148.7) 67.7 (264.0) (31.7) (6.4) (16.7) (186.8) (2.9) (181.3) (41.4) (24.0) (52.6) (104.1) 41.6 725.1 72.1 (95.1) 43.8 (134.1) (18.2) (3.7) (1.9) (211.7) - (154.8) (41.6) (44.0) (0.7) (83.1) 52.1 Revenue Rail revenue support Rail franchise support Other operating income Staff costs Fuel costs (i.e. diesel) Insurance and claims costs Depreciation Rolling stock costs – lease & maintenance Other operating leases Network Rail Electricity for trains Commissions payable Materials & consumables Other costs Operating profit

  31. UK Bus revenue Year to 30 April 2010 £m Year to 30 April 2009 £m Change % Like-for-like Acquisitions: Highland excluding Inverness depot (acquired May 2008) Inverness depot (integrated Highland and Bluebird business) Preston Bus (acquired January 2009) Eastbourne / Cavendish (acquired December 2008) Islwyn (acquired January 2010) Start-ups: Rail replacement (started May 2008) Total reported 839.5 9.3 8.5 7.7 5.9 0.7 3.8 875.4 805.9 9.3 8.6 2.3 1.9 - 2.8 830.8 4.2% 5.4%

  32. North America revenue breakdown Year to 30 April 2010 US$m Year to 30 April 2009 US$m % Growth Scheduled service/line run/commuter School bus & contract Charter Megabus Sightseeing & tour Like-for-like revenue “Disposed” & closed operations and Canada fx Total North America 182.9 86.7 83.9 45.1 19.1 417.7 8.6 426.3 196.9 90.4 91.5 32.8 20.7 432.3 67.2 499.5 (7.1)% (4.1)% (8.3)% 37.5% (7.7)% (3.4)% (87.2)% (14.7)%

  33. Rail subsidy/(premium) profiles South Western £m East Midlands £m West Coast £m Year to 31 March: 2010 2011 2012 2013 2014 2015 2016 2017 (41.7) (99.8) (166.6) (242.0) (313.7) (387.3) (462.7) (454.2) 96.9 61.2 17.6 (14.2) (33.8) (91.5) - - (100.6) (147.2) (200.2) - - - - - The above amounts are subject to adjustment for: (1) various inflation measures (2) risks borne by the Department for Transport (3) called options and (4) changes in Regulated Network Rail charges. The amounts shown above are based on estimated inflation and options called to date. The amounts shown above for South Western and East Midlands do not reflect changes to subsidy/(premium) amounts arising from changes to Network Rail charges for Control Period 4, which began on 1 April 2009, because these changes are not yet finalised.

  34. Fuel Hedging UK Bus North America UK Rail 2009/10 - average effective price (per litre) 2010/11 - % of forecast consumption hedged - average hedge price (per litre) 2011/12 - % of forecast consumption hedged - average hedge price (per litre) Market price (per litre) 45.4p 98% 36.0p 60% 40.6p 38.9p 76.6 cents 83% 50.5 cents 77% 57.7 cents 54.9 cents 32.5p 77% 31.3p 50% 41.1p 38.4p Market prices are as at 16 June 2010 Prices exclude premia payable on fuel caps, delivery margins, duty, taxes and Bus Services Operators Grant

  35. Fuel costsLatest forecasts Fuel costs Volumes 2008/09 Actual £m 2009/10 Actual £m 2010/11 Forecast £m 2011/12 Forecast £m 2010/11 Forecast Litres m UK Bus, excluding BSOG* UK Bus, BSOG* UK Bus, including BSOG* North America South Western Trains East Midlands Trains Total (175.4) 75.9 (99.5) (32.8) (5.4) (20.0) (157.7) (201.2) 80.0 (121.2) (38.7) (5.0) (21.3) (186.2) (184.5) 77.4 (107.1) (30.7) (6.2) (21.5) (165.5) (195.1) 76.2 (118.9) (33.4) (6.2) (25.6) (184.1) 193.1 69.1 12.4 49.2 323.8 Market prices are as at 16 June 2010, when Brent Crude was US$76 per barrel Forecast costs for the unhedged element of fuel are based on 16 June 2010 spot prices Above costs include delivery margins, duty and taxes (duty forecast at current levels) but exclude 3rd party fuel costs * Bus Services Operators Grant (“BSOG”) represents a rebate of an element of fuel duty costs in respect of certain UK Bus services

  36. Definitions • Like-for-like amounts are derived, on a constant currency basis, by comparing the relevant year-to-date amount with the equivalent prior year period for those businesses and individual operating units that have been part of the Group throughout both periods. • Operating profit for a particular business unit or division within the Group refers to profit before net finance income/charges, taxation, intangible asset expenses, exceptional items and restructuring costs. • Operating margin for a particular business unit or division within the Group means operating profit as a percentage of revenue. • Exceptional items means items which individually or, if of a similar type, in aggregate need to be disclosed by virtue of their nature, size or incidence in order to allow a proper understanding of the underlying financial performance of the Group. • Gross debt is borrowings as reported on the consolidated balance sheet, adjusted to exclude accrued interest, deferred gains on derivatives and the effect of fair value hedges on the carrying value of borrowings, and to include the effect of foreign exchange derivatives that synthetically convert an element of borrowings from one currency to another.  • Net debt (or net funds) is the net of cash and gross debt.

  37. Annual ResultsYear ended 30 April 2010 23 June 2010

More Related