1 Investor presentation, Interim report June 2019 – August 2019
NOBINA AB 1 Investor presentation, Interim report June 2019 August - - PowerPoint PPT Presentation
NOBINA AB 1 Investor presentation, Interim report June 2019 August - - PowerPoint PPT Presentation
NOBINA AB 1 Investor presentation, Interim report June 2019 August 2019 STRONG GROWTH AND STABLE PROFIT DEVELOPMENT CONTINUING INTO Q2 NET SALES EBITA EBT Adj CASH FLOW SEK Millions SEK Millions SEK Millions SEK Millions 2,528 162
STRONG GROWTH AND STABLE PROFIT DEVELOPMENT CONTINUING INTO Q2
2
NET SALES
SEK Millions
2,528
(2,224)
Q2 FINANCIAL HIGHLIGHTS
- Net sales* grew 9.3% supported by acquisitions while organic growth was slightly negative.
- Adjusted EBT increased to SEK 107 million due to performance improvements in maturing contracts, increasing extra traffic as well
as positive contributions from the acquired companies.
- Cash flow from operations before changes in working capital increased to SEK 421 million (347) and total cash flow decreased to
SEK-536 million (-300).
- Investments amounting to SEK 1,164 million (35) in buses and other equipment. Change from leasing to loan financing 224 MSEK
EBITA
SEK Millions
162
(136)
EBT Adj
SEK Millions
107
(92)
CASH FLOW
SEK Millions
- 536
(-300)
Nobina investor presentation, Q2 2019/20
*adjusted for currency effects and discontinuing operations
3
HIGHLIGHTS
▪ Comprehensive contract migration in Q2 comprising several major contract start-ups encompassing 395 buses and contract terminations consisting of 378 buses. ▪ The European Commission has declared that subsidies to publicly owned operators are not permitted ▪ Nobina Sweden received Unionen’s LGBT-award for 2019, as Sweden’s most LGBT-friendly workplace.
Nobina investor presentation, Q2 2019/20
GOOD GROWTH POTENTIAL DUE TO LOW EXPOSURE IN H2
Nobina investor presentation, Q2 2019/20 4 Definitions: Available - Remaining buses available in tenders this year Submitted – Number of buses in tenders submitted by Nobina Pending – Submitted less announced Announced – Submitted tenders, results are announced Won – Nobina’s wins out of announced tenders
153 105 48 48 57
1 337 173 1 164 193 768
1 490 278 1 212 241 825
200 400 600 800 1 000 1 200 1 400 1 600
Submitted Pending Announced Won Remaining available
Nobina operating old contract Others operating old contract
- Nobina submitted tenders for 1 490 buses
- Nobina won 241 of the 1 212 announced buses
- Nobina gaining market share through a 20% win-rate
March 2019 – Aug 2019 Tender results during the period (number of buses) Announced Won
Sweden 682 207 Norway 429 Finland 101 34 Denmark Total 1 212 241 TENDER UPDATE
Number of buses
CONTRACT MIGRATION SCALING UP IN Q2
Nobina investor presentation, Q2 2019/20 5
- Nobina started contracts with 428 buses during the period
- Nobina ended contracts involving 378 buses during the period
March 2019 – Aug 2019 Traffic changes during the period (number of buses) Started Ended
Sweden 166 102 Norway 127 154 Finland 115 122 Denmark 20 Total 428 378
6.4
(6.2)
7.7
(8.1)
4.6
(4.7) Average weighted contract length (last year) Average weighted contract age (last year) Average age of bus fleet (last year)
Traffic starts September 2019 – August 2020
PTA
- No. of years
Traffic start
- No. of buses
New buses HSL, Finland 1 Jan 2020 7
- HSL, Finland
7 Jan 2020 27 27 Hallandstrafiken 10 June 2020 127 120 Piteå* 10 July 2020 12 12 Östergötatrafiken 10 Aug 2020 87 87 Västtrafik 10 Aug 2020 71 71 Total 331 317
SIGNIFICANT TRAFFIC STARTS NEXT SUMMER
*Award decision has been appealed
Nobina investor presentation, Q2 2019/20 6
Expiring contracts September 2019 – August 2020
PTA Traffic ending
- No. of buses
LT Örebro Sep 2019 100 Movia, Denmark Dec 2019 11 Hallandstrafiken June 2020 58 HSL, Finland Aug 2020 19 Midttrafik, Denmark Aug 2020 23 Total 211
Nobina will end contracts involving a total of 211 in-service buses in the next 12 months Nobina will start new contracts involving a total of 331 in-service buses in the next 12 months
ACQUISITIONS ADDING GROWTH AND IMPROVED PROFITABILITY
Nobina investor presentation, Q2 2019/20 7
Q2 HIGHLIGHTS
- Net sales increased strongly compared
with the prior year period based on the acquisition of Samtrans
- EBITA significantly higher than last year
coming from efficiency improvements, increased traffic and Samtrans
- Increased net sales coming from
acquisitions of DBO and Örslev as well as from new traffic in Roskilde
- EBITA significantly higher than last year with
strong contribution from DBO and Örslev as well as increased traffic
Q2 HIGHLIGHTS SWEDEN - NET SALES
SEK million
SWEDEN – EBITA
SEK million
DENMARK - NET SALES
SEK million
DENMARK – EBITA
SEK million
1 656 1 504 1 880 1 823 1 953 1 638
Q1 18/19 Q2 Q3 Q4 Q1 19/20 Q2
125 113 239 109 189 121
Q1 18/19 Q2 Q3 Q4 Q1 19/20 Q2
142 151 150 205 231 243
Q1 18/19 Q2 Q3 Q4 Q1 19/20 Q2
- 2
5 5 10 9 21
Q1 18/19 Q2 Q3 Q4 Q1 19/20 Q2
INCREASED EXTRA TRAFFIC SHOWS RESULT IN NORWAY
Nobina investor presentation, Q2 2019/20 8
Q2 HIGHLIGHTS
- Net sales higher than last year positively
affected by new contracts started in autumn 2018 and currency effects
- EBITA higher than last year due to
contract start-ups and improved efficiency
- Net sales higher than last year as a result
- f extensive extra traffic
- EBITA solidly higher than the prior year
period due to extra traffic. Included start-up costs for the contract in Lilleström that commenced in June 2019 and termination costs in Tromsö. Q2 HIGHLIGHTS FINLAND - NET SALES
SEK million
FINLAND - EBITA
SEK million
NORWAY - NET SALES
SEK million
NORWAY - EBITA
SEK million
288 278 317 295 322 299
Q1 18/19 Q2 Q3 Q4 Q1 19/20 Q2
10 11 17 6 12 15
Q1 18/19 Q2 Q3 Q4 Q1 19/20 Q2
269 292 250 236 248 354
Q1 18/19 Q2 Q3 Q4 Q1 19/20 Q2
- 8
14 7
- 9
23
Q1 18/19 Q2 Q3 Q4 Q1 19/20 Q2
STABLE SECOND QUARTER WITH SIGNIFICANT GROWTH
Nobina investor presentation, Q1 2019/20 9
- Net sales growth mainly
driven by acquisitions
- EBT of 101 MSEK includes
income and cost related to acquisition accounting. Adjusted EBT is 107 MSEK
- All four segments showing
strong Q2 figures supporting the growth in EBT
KEY POINTS
SEK million Q2 19/20 Q2 18/19 Change YTD 19/20 YTD 18/19 Change
Net sales 2 528 2 224 304 5 277 4 575 702 EBITDA % of net sales 438 17,3 % 387 17,4 % 51 869 16,5 % 735 16,1 % 134 EBITA % of net sales 162 6,4 % 136 6,1 % 26 330 6,3 % 251 5,5 % 79 EBIT % of net sales 156 6, % 127 5,7 % 29 308 5,8 % 241 5,3 % 67 Interest income Interest expenses FX net
- 46
- 9
- 44
- 2
- 9
- 97
- 13
- 89
1
- 8
- 14
EBT % of net sales Tax 101 4,0 %
- 20
83 3,7 %
- 21
18 1 198 3,7 %
- 41
153 3,3 %
- 39
45
- 2
Earnings after tax 81 62 19 157 114 43
STRONG CONTRIBUTIONS FROM ACQUISITIONS AND IMPROVED EFFICIENCY
Nobina investor presentation, Q2 2019/20 10
- Effects of price and volume positive both regarding Net sales
and EBT driven by a maturing contract portfolio and contract
- changes. This item includes positive effects from acquisitions,
additional traffic and incentive revenues.
- Contract migration have been extensive this year but occurred
late in Q2. Total effect on Net sales and EBT slightly positive.
- Efficiency after indexation has improved compared to last year
mainly driven by lower fuel consumption, sick leave and
- vertime.
- Other represents cost deviations, primarily within central
functions, and includes result from the fleet operations
- Profit for the year was adversely impacted by unrealized
currency effects on loan for acquisition financing in DKK and increased interest costs. KEY POINTS
SEK million
Net sales EBT, Adj. YTD Mar 2018 – Aug 2018 4,575 163 Price and volume 573 75 Contract migration 33 10 Indexation & operational efficiency 96 8 Other
- 14
Financial net
- 22
YTD Mar 2019 – Aug 2019 5,277 220
CASH FLOW IMPACTED BY NEW FINANCING METHOD AND TIMING EFFECT FROM GREEN BOND
Nobina investor presentation, Q2 2019/20 11
SEK million Q2 19/20 Q2 18/19 Change YTD 19/20 YTD 18/19 Change
Cash flow from operations before changes in working capital 421 347 74 855 724 131 Changes in working capital 53
- 83
136
- 50
- 179
129 Interest received and tax payment
- 2
- 1
- 1
- 2
- 1
- 1
Cash flow from operations after changes in working capital 472 263 209 803 544 259 Cash flow from investing activities
- 623
- 17
- 606
- 1 282
- 55
- 1 227
Cash flow from financing activities
- 385
- 546
161
- 127
- 863
736 Cash flow for the period
- 536
- 300
- 236
- 606
- 374
- 232
Cash and cash equivalents at the end of the period 460 402 58 460 402 58
KEY POINTS
▪ Cash flow from operations before working capital
stronger than Q2 previous year following higher result
▪
Improvement in working capital mainly relating to timing impact of accounts payables
▪
Negative cash flow from investing increased from last year due to extensive traffic starts and change in financing method of the existing bus fleet in Sweden from financial leasing to loans
▪
Improved cash flow from financing activities in Q2 due to new loans related to the change in financing method of the bus fleet in Sweden
▪ Total cash flow for the period lower than Q2 last
year due to high level of bus investments financed by the green bond issued in Q4 last year
GREEN BOND PROCEEDS PUT TO WORK
Nobina investor presentation, Q2 2019/20 12
- Lease financing of 525 MSEK relating to
bus investments in Norway and Finland
- Leased buses to a value of 224 MSEK in
Sweden has been refinanced by loans in the quarter
- Majority of green bond proceeds, 415
MSEK, utilized in Sweden during Q2
- Investments in buses also includes
residual value purchases of buses in expired leasing contracts
- All new bus investments are financed
through financial leasing, loans or with green bonds
SEK million Q2 19/20 Q2 18/19 Change YTD 19/20 YTD 18/19 Change
Investments in buses
- 1 164
- 10
- 1 154
- 1 815
- 78
- 1 737
Other investments
- 25
25
- 9
- 29
20 Total investments
- 1 164
- 35
- 1 129
- 1 824
- 107
- 1 717
Lease financing 525
- 525
528 33 495 Capex
- 639
- 35
- 604
- 1 296
- 74
- 1 222
Whereof: Loan financing of buses 224
- 224
813
- 813
Whereof: Cash financing
- 415
- 35
- 380
- 483
- 74
- 409
KEY POINTS
BALANCE SHEET GROWING WITH BUSINESS EXPANSION
Nobina investor presentation, Q2 2019/20 13
▪ Total non-current assets increased
relating to acquisitions of 1 824 MSEK
▪ Cash position increased to SEK 460
million (402)
▪ Equity ratio of 13.6% (16.5%) ▪ Interest-bearing liabilities was SEK
5,835 million (4,998), including acquisition related loan of 283 MSEK
▪ Net debt/EBITDA was 3.1x (2.9x)
KEY POINTS
SEK million 2019-08-31 2018-08-31 Change
ASSETS Total non-current assets 7 953 6 772 1 181 Trade receivables and other current rec. 1 153 976 177 Cash and cash equivalents 460 402 58 Total current assets 1 613 1 378 235 TOTAL ASSETS 9 566 8 150 1 416 EQUITY AND LIABILITIES Shareholders’ equity 1 303 1 343
- 40
Total non-current liabilities 5 067 4 461 606 Total current liabilities 3 196 2 346 850 TOTAL LIABILITIES 9 566 8 150 1 416
- Significant growth from acquisitions
- Stable earnings development in Q2 while the
comparison figures in H2 will be more challenging due to contract migration
- Comprehensive contract migration late in Q2
starting up 395 buses and terminating 378 buses
- Good potential for securing market share
increase in H2 due to low exposure
- EU Commission decision important step for fair
competition
Nobina investor presentation, Q2 2019/20 14
CONTINUED STABLE DEVELOPMENT
LARGEST PUBLIC TRANSPORT COMPANY IN THE NORDIC REGION
- Nobina’s economies of scale, market
expertise and outstanding bus fleet, combined with long-term delivery of quality, make Nobina the industry leader in terms of profitability.
- Stable operations and growing
- market. More than 97% of revenues
supported by long term contracts, typically lasting 5-10 years with a potential 1-2 year extension.
- Nobina aims to grow profitability
through active contract and portfolio management and to increase the value added by delivering benefits to passengers, clients and society.
Nobina investor presentation, Q2 2019/20 15
Sweden 6 863 Denmark 648 Norway 1 047 Finland 1 178
Source: Approximation based on Nobina’s data
TOTAL MARKET - ANNUAL NET SALES PER COUNTRY
(SEK billion)
NOBINA - NET SALES PER COUNTRY
2018/19 (SEK million)
9 7 9 22
This presentation and the information contained herein are being presented by Nobina AB (publ) (the “Company”). By attending a meeting where this presentation is presented, or by reading this presentation, you agree to be bound by the following limitations and notifications. This presentation does not constitute an offer or invitation to purchase or subscribe for any securities and does not constitute any form of commitment
- r recommendation on the part of the Company.
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- performance. While the Company believes that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given
that such expectations will materialise. Accordingly, results could differ materially from those set out in the forward-looking statements as a result of various
- factors. To the extent that this presentation contains opinions, estimates, forecasts or other forward looking statements, no guarantees or undertakings
that these are correct or complete are given by the Company or any of its members, advisors, officers or employees or any other person. Forecasts and assumptions which are subject to economic and competitive uncertainty are outside such person’s control and no guarantee can be given that projected results will be achieved or that outcomes will correspond with forecasts. Information in this presentation may be changed, added to or corrected without advance notification. The Company does not undertake any obligation to publicly update or revise any information contained herein. This presentation as well as any other information provided by or on behalf of the Company shall be governed by Swedish law. The courts of Sweden, with the District Court of Stockholm as the first instance, shall have exclusive jurisdiction to settle any conflict or dispute arising out of or in connection with this presentation or related matters.
DISCLAIMER – IMPORTANT INFORMATION
16 Nobina investor presentation, Q2 2019/20
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