Stobart Group Full year results presentation Stobart Group Limited 4 June 2020 1
Stobart Group This presentation has been prepared by Stobart Group Limited (the Company) solely in connection with discussions of its FY19/20 results. For purposes of this notice, this “presentation” shall include these slides and any question-and-answer session that follows oral briefings by the Company’s executives. This presentation is for informational purposes only does not constitute an offer to sell or the solicitation of an offer to buy securities in the Company. Furthermore, this presentation does not constitute a recommendation to sell or buy securities in the Company. No representations or warranties, express or implied, are made as to, and no reliance should be placed on, the accuracy, fairness or completeness of the information presented or contained in this presentation. This presentation contains certain forward-looking statements, which are based on current assumptions and estimates by the management of the Company. Past performance cannot be relied upon as a guide to future performance and should not be taken as a representation that trends or activities underlying past performance will continue in the future. Such statements are subject to numerous risks and uncertainties that could cause actual results to differ materially from any expected future results in forward-looking statements. These risks may include, for example, changes in the global economic situation, and changes affecting individual markets and exchange rates. The Company provides no guarantee that future development and future results actually achieved will correspond to the forward-looking statements included here, and accepts no liability if they should fail to do so. The Company undertakes no obligation to update these forward-looking statements, which speak only as at the date of this presentation, and will not publicly release any revisions that may be made to these forward-looking statements, which may result from events or circumstances arising after the date of this presentation. Nothing in this presentation should be interpreted as a term or condition of the capital raise. Any decision to purchase, subscribe for, otherwise acquire, sell or otherwise dispose of new shares must be made only on the basis of the information contained in the prospectus related to the capital raise once published. Copies of that prospectus will, following publication, be available from the Company and on its website at www.stobartgroup. co.uk/investors. This presentation does not contain or constitute an offer for sale or the solicitation of an offer to purchase securities in the United States. The securities referred to herein have not been and will not be registered under the US Securities Act of 1933, as amended (the Securities Act), or with any securities regulatory authority of any state or jurisdiction of the United States, and may not be offered or sold in the United States absent registration under the Securities Act or an available exemption from, or transaction not subject to, the registration requirements of the Securities Act. There will be no public offer of the securities in the United States. None of the securities, this presentation or any other document connected with the capital raise has been or will be approved or disapproved by the United States Securities and Exchange Commission or by the securities commissions of any state or other jurisdiction of the United States or any other regulatory authority, and none of the foregoing authorities or any securities commission has passed upon or endorsed the merits of the offering of the securities or the accuracy or adequacy of this presentation or any other document connected with the capital raise. Any representation to the contrary is a criminal offence in the United States. This presentation is for information purposes only and is not intended to and does not constitute or form part of any offer or invitation to purchase or subscribe for, or any solicitation to purchase or subscribe for, any secu- rities or to take up any entitlements to any securities in any jurisdiction. No offer or invitation to purchase or subscribe for, or any solicitation to purchase or subscribe for, any securities or to take up any entitlements to any securities will be made in any jurisdiction in which such an offer or solicitation is unlawful. 2
Stobart Group Agenda 1. Update and vision for the future 2. Aviation 3. Energy 4. Non-strategic assets 5. Financial summary 3
Stobart Group FY20 at a glance Stobart Group delivered another year of operational progress. Passenger The volume of + 43 % + 12 % numbers waste we supply £32.8m increased by increased by 12% 43% to 2.1m . to 1.5m tonnes. 2.1m 1.5m The improvement Adjusted in adjusted underlying underlying EBITDA from EBITDA for the our two main Group refmects + 36 % + 48 % operating both growth divisions in our core increased by businesses, and 2017 2018 2019 2020 36% to £32.8m the £7.1m loss Aviation passenger numbers (2019: £24.1m). made by Stobart Energy tonnes Rail & Civils. Combined adjusted underlying EBITDA 4
Stobart Group Group response to COVID-19 COVID-19 has had a signifjcant impact on our business and the full impact will take time to become clear. We took immediate action to conserve cash and maintain operational capability to ensure we are best placed to manage through the recovery. Frozen all capex Utilised the other than for Job Retention safety reasons. Scheme to put on Discretionary furlough c.50% of spend deferred. our people. Board and Senior Recruitment Leadership freeze since early agreed to 20% March 2020. pay cuts; 10% for All variable pay non-furloughed awards deferred. management. To help preserve the Group’s liquidity and secure funding for the future, we have explored a range of options. 5
Stobart Group Our vision for the future Our strategic focus is to ensure that our Aviation and Energy businesses emerge from the COVID-19 crisis stronger by adapting to the new world. AVIATION ENERGY London Southend Airport is being specifjcally adapted and developed Stobart Energy intends to cement its position as the UK’s to be a passenger-focused airport, providing the space and number one supplier of waste fuel with long-term, high-margin experience to travel with confjdence in the aftermath of COVID-19. contracts to supply 1.7m tonnes of waste wood per annum. London Southend Airport is unique as a London airport with It is a mature, highly cash generative and stable business, immediate space and existing plans to deliver this level of underpinned by long-term UK Government subsidies (ROCs). passenger-focused experience. The intention is to monetise Stobart Energy in the next 18-24 Airline partners are expected to enjoy the benefjts of the most months to fund future growth at London Southend Airport. cost-effjcient airport in London with the best customer experience. NON-STRATEGIC ASSETS Our aim is to divest all of our non-core assets within the next three years. We will balance shareholder value versus timeliness. 6
Stobart Group Aviation 7
Stobart Group Aviation FY20 highlights OUR RETAIL OUTLETS London Southend passenger numbers 2.1m 1.5m 1.1m 0.9m 2017 2018 2019 2020 OUR AIRLINE PARTNERS 2020 London passenger numbers 80.8m 46.5m 28.1m 18.2m 5.1m 2.1m Heathrow Gatwick Stansted Luton City LSA 8
Stobart Group Impact of COVID-19 on London Southend Airport London Southend Airport saw a reduction in passenger numbers to zero, impacting revenues while costs remained. PASSENGERS Passenger numbers fell from c.5,500 per day to nearly zero over the course of March 2020 – REVENUES expect a slow recovery over the rest of the year. COSTS Global logistics operation and hotel continue to Maintained fixed provide some revenues – costs including all other revenues driven security, air traffic to near zero. control and fire safety. AIRLINE RELATIONSHIPS Over 15 aircraft parked at London Southend and discussions ongoing with LCCs looking to manage costs once operations return. 9
Stobart Group Our vision for London Southend Airport post COVID-19 RIGHT ENVIRONMENT SUMMER 2021 Separate arrivals and We can design and deliver departures terminals a redeveloped airport by planned, to provide the right Summer 2021. environment for passengers. PASSENGER FOCUSED AIRLINE PARTNERS London Southend intends We are confident that travel CAPITAL EFFICIENCY to balance commercial will return over time. However, revenues with a spacious, lower costs will be imperative We aim to offer convenient, safe and for our airline partners during airlines the most capital secure environment. the restart post COVID-19. efficient operation. 10
Stobart Group Energy 11
Stobart Group Energy FY20 highlights Tonnes supplied 1.50m +11.5% 1.34m 0.89m 0.87m All the plants that we supply are now commissioned. 2017 2018 2019 2020 Plants we supply are experiencing Energy adjusted underlying EBITDA improved availability +25.9% £24.2m 70.3% 68.9% £19.2m 56.8% £12.1m £10.2m 2018 2019 2020 2017 2018 2019 2020 12
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