2016 Third Quarter Traffic and Revenue 19 October 2016 Jacques - PowerPoint PPT Presentation

2016 Third Quarter Traffic and Revenue 19 October 2016 Jacques Gounon – Chairman & Chief Executive Officer

1. EUROTUNNEL GROUP Key fact & figures in Q3 2016 2. RAIL FREIGHT ACTIVITY Europorte 3. FIXED LINK CONCESSION ACTIVITY Eurotunnel 4. OTHER GROUP ACTIVITIES ElecLink

EUROTUNNEL GROUP Confidence in the future Shuttle business better than ever  Consolidated market post MFL exit (Eurotunnel + two ferry operators)  Record volumes for trucks : +12% ytd. Market share up 220bp vs 2015  Expanding Peak day pricing strategy  Record volumes for cars (since end of duty free): +1% ytd. Market share up 190bp vs 2015  Successful yield management Eurostar ready for growth  Strong outlook thanks to new destinations  Amsterdam by end 2017. Eurostar e320 currently tested on the Dutch network  Post Marseille success, Eurostar considering Bordeaux  New business lounge in Paris Gare du Nord  Rapid recovery post exceptionnal events  9 months post July 2005 London attack  3 months post November 2015 Paris attack  3 months post March 2016 Brussels attack 3

EUROTUNNEL GROUP Confidence in the future Brexit not a concern for Groupe Eurotunnel  Declining £ is a strong stimulus for UK Economy  FMI and BoE don’t expect UK recession in 2017 (forecast GDP growth of 1.1% and 0.8% respectively*)  FTSE’s performance since referendum (+11%), indicator of resilient UK economy Adverse foreign exchange doesn’t prevent traffic and profitability growth  2012-2016 e : £/ € -2% but Truck volumes +12%**, Car Volumes +9%** and Fixed Link EBITDA + 16%*** Foreign exchange has no adverse impact on our traffic  Car traffic vs £/ € : no correlation (based on past 22 years of experience)  Eurostar passengers vs £/ € : no correlation Foreign exchange movements have counter balancing impact on profitability and debt  -10% £ vs € = - € 22M for Profit Before Tax (based on 2015 figures)  -10% £ vs € = - € 190M for Net Debt (based on 2015 figures) Strong balance sheet ( € 560M cash equivalent at end June 2016****) and no bullet repayment to come *source : http://www.imf.org/external/pubs/ft/weo/2016/02/pdf/text.pdf - http://www.bankofengland.co.uk/publications/Documents/inflationreport/2016/aug.pdf 4 **9m 2016 vs 9m 2012 ***based on 2012 EBITDA before adjusted 2016 guidance at 1£ = 1,20 € ****cash € 298M + FRN held € 153M + Finance Leases € 113M €

GROUPE EUROTUNNEL SE Key figures in Q3 2016 Growth in Group revenue: +4% to € 320M Shuttle Railway Network Europorte Revenue: +12% Traffic: Truck : +14% Revenue: -5% Car : +2% Revenue: -7% Traffic: Yield increase HST Passenger: -10% Rail freight: = * Excluding discontinued activity and recalculated at H1 2016 exchange rate: £1 = € 1.237 5

GROUPE EUROTUNNEL SE Continued growth in revenue in Q3 2016 +4%* 3 2 0 3 0 9 Europorte -7 % 2 5 7 Fixed Link + 7 % * Excluding discontinued activity and recalculated at H1 2016 exchange rate: £1 = € 1.237 6

GROUPE EUROTUNNEL SE Continued growth in revenue year to date in 2016 +3%* 9 0 2 8 7 9 Europorte -5 % 6 9 9 Fixed Link + 5 % * Excluding discontinued activity and recalculated at H1 2016 exchange rate: £1 = € 1.237 7

3 RAIL FREIGHT ACTIVITY RAIL FREIGHT ACTIVITY EUROPORTE in Q3 2016 Europorte in H1 2016

EUROPORTE Revenue impacted by slowdown in cereals and coal market Q3 2016 Q3 2015* In € M Change 63 68 Revenue -7% Revenue GBRf Europorte France New contracts started in 2015 and GET received a binding and Europorte France remains focused H1 2016 but expected end of irrevocable offer for GBRf on its own development, with the contracts in the UK goal of becoming the foremost 28% IRR (2010-2016) private rail freight operator in Decline of cereals transport in Forecasted revenue of £125M in France. France 2016 Decline of coal transport in UK * Recalculated at H1 2016 exchange rate: £1 = € 1.237 9

3 FIXED LINK CONCESSION ACTIVITY FIXED LINK CONCESSION ACTIVITY Eurotunnel in H1 2016 EUROTUNNEL in Q3 2016

Fixed Link Strong volume growth for the shuttle services Q3 2016 Q3 2015* In € M Change 257 241 Revenue +7% 179 159 o.w. Shuttle +12% 74 78 o.w. Railway Network -5% 4 4 o.w. Other Ns Shuttle Railway Network Strong traffic growth Decline in Eurostar passengers because of adverse impact of Yield increase terrorist attacks on tourism * Recalculated at H1 2016 exchange rate: £1 = € 1.237 11

TRUCK SHUTTLES – Q3 2016 A fast, frequent and flexible An all-time traffic record and yield up Eurotunnel Freight service Truck volumes (‘000) +14% +12% +5% +6% +4% -1% Traffic Market Yield 400,450 trucks transported Steady growth in Short Straits Steady increase market: +7% (+5% ytd) 11 consecutive months of record traffic (November 2015 to Eurotunnel market share up 240 September 2016) points to 38.8% (+220bp to 39.4% ytd) Eurotunnel, world leader in piggyback transport 12

LE SHUTTLE FOR PASSENGERS – Q3 2016 A fast, reliable, easy and comfortable Best year to date traffic for 15 years service with Le Shuttle Car volumes (‘000) +2% +4% +2% +1% +3% -1% Traffic Market Yield 882,358 cars transported (+2%) Contraction in the Short Straits Continued growth in average yield market: -1% (-2% ytd) 12,021 coaches (-6%) Growth in Flexiplus premium service sales Eurotunnel market share up 140 Good outlook for the end of 2016 points to 49.8% (+190bp to 53.7% based on bookings ytd) 13

HIGH-SPEED PASSENGER TRAINS* EUROSTAR – Q3 2016 Tourism in Europe under pressure Eurostar passengers (‘000) -5% +2% +2% +3% +2% -10% Traffic Activity Dynamic business traffic New Eurostar trains: more comfort, more services and more destinations Tourism in Europe impacted by terrorist attacks (Nice in July 2016) 10 first new e320 trains in commercial service since end of June New e320 being tested on Belgium and Dutch network * Number of Eurostar passengers travelling through the Channel for coming London-Amsterdam direct service Tunnel, excl. the Paris-Calais and Paris-Lille routes 14

CROSS-CHANNEL RAIL FREIGHT – Q3 2016 Traffic waiting for migrant clearance = -34% +9% +13% -33% -8% Traffic Relaunch of activity Still impacted by the migrant crisis in H2 2015 Calais-Fréthun site once again secure and difficulties to secure the SNCF Calais- Eurotunnel is working with all parties Fréthun site concerned to re-launch traffic Traffic transfered to other commercial routes 15

4 OTHER GROUP ACTIVITIES OTHER GROUP ACTIVITIES ElecLink, CIFFCO ELECLINK

DEVELOPMENT OF STRATEGIC INFRASTRUCTURE ELECLINK, a FR-UK electricity interconnector Added-value for the Channel Tunnel : high expected return (consensus 2020 e EBITDA = c. € 100M*) Regulatory process completed Implementation phase  Secure EPC and O&M contracts  Forward sell long-term contracts  Raise debt to part-finance construction  Construction to begin by end of 2016, with service to start in 2019 * Consensus collected by GET, consisting of 6 analysts

Contact investors & analysts: Michael Schuller Jean Baptiste Roussille Corporate Finance Director co-Head of IR co-Head of IR 00 33 1 40 98 04 81 00 44 1303 288 719 Jean-baptiste.roussille@eurotunnel.com Michael.schuller@eurotunnel.com