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 2,528 162 107 -536 (2,224) (136) (92) (-300) 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 *adjusted for currency effects and discontinuing operations Nobina investor presentation, Q2 2019/20 2
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. 3 Nobina investor presentation, Q2 2019/20
GOOD GROWTH POTENTIAL DUE TO LOW EXPOSURE IN H2 • Nobina submitted tenders for 1 490 buses Definitions: Available - Remaining buses available in tenders this year • Nobina won 241 of the 1 212 announced buses Submitted – Number of buses in tenders submitted by Nobina Pending – Submitted less announced • Nobina gaining market share through a 20% win-rate Announced – Submitted tenders, results are announced Won – Nobina’s wins out of announced tenders TENDER UPDATE Number of buses Tender results during the period 1 490 1 600 March 2019 – (number of buses) Aug 2019 1 400 1 212 Announced Won 1 200 1 000 682 207 825 Sweden 1 337 800 429 0 Norway 1 164 600 768 400 241 278 101 34 Finland 200 173 193 153 105 57 0 0 48 48 Denmark 0 Submitted Pending Announced Won Remaining available Total 1 212 241 Nobina operating old contract Others operating old contract 4 Nobina investor presentation, Q2 2019/20
CONTRACT MIGRATION SCALING UP IN Q2 • Nobina started contracts with 428 buses during the period • Nobina ended contracts involving 378 buses during the period 7.7 Traffic changes during the period Average weighted contract length March 2019 – (number of buses) (last year) Aug 2019 (8.1) Started Ended 166 102 Sweden 4.6 Average weighted contract age 127 154 Norway (last year) (4.7) 115 122 Finland 20 0 Denmark 6.4 Average age of bus fleet Total 428 378 (last year) (6.2) 5 Nobina investor presentation, Q2 2019/20
SIGNIFICANT TRAFFIC STARTS NEXT SUMMER Traffic starts September 2019 – August 2020 Expiring contracts September 2019 – August 2020 PTA No. of years Traffic start No. of buses New buses PTA Traffic ending No. of buses HSL, Finland 1 Jan 2020 7 - LT Örebro Sep 2019 100 HSL, Finland 7 Jan 2020 27 27 Movia, Denmark Dec 2019 11 Hallandstrafiken 10 June 2020 127 120 Hallandstrafiken June 2020 58 Piteå* 10 July 2020 12 12 HSL, Finland Aug 2020 19 Östergötatrafiken 10 Aug 2020 87 87 Midttrafik, Denmark Aug 2020 23 Västtrafik 10 Aug 2020 71 71 Total 331 317 Total 211 *Award decision has been appealed Nobina will end contracts involving a total of 211 Nobina will start new contracts involving a total of 331 in-service buses in the next 12 months in-service buses in the next 12 months 6 Nobina investor presentation, Q2 2019/20
ACQUISITIONS ADDING GROWTH AND IMPROVED PROFITABILITY SWEDEN - NET SALES SWEDEN – EBITA Q2 HIGHLIGHTS SEK million SEK million • Net sales increased strongly compared 1 953 with the prior year period based on the 1 880 1 823 1 656 1 638 acquisition of Samtrans 1 504 239 189 • EBITA significantly higher than last year coming from efficiency improvements, 125 121 113 109 increased traffic and Samtrans Q1 18/19 Q2 Q3 Q4 Q1 19/20 Q2 Q1 18/19 Q2 Q3 Q4 Q1 19/20 Q2 DENMARK - NET SALES DENMARK – EBITA Q2 HIGHLIGHTS SEK million SEK million • Increased net sales coming from acquisitions of DBO and Örslev as well as 243 231 205 from new traffic in Roskilde 21 151 150 142 • EBITA significantly higher than last year with 10 9 strong contribution from DBO and Örslev as -2 5 5 well as increased traffic Q1 18/19 Q2 Q3 Q4 Q1 19/20 Q2 Q1 18/19 Q2 Q3 Q4 Q1 19/20 Q2 7 Nobina investor presentation, Q2 2019/20
INCREASED EXTRA TRAFFIC SHOWS RESULT IN NORWAY FINLAND - NET SALES FINLAND - EBITA Q2 HIGHLIGHTS SEK million SEK million • Net sales higher than last year positively affected by new contracts started in 322 317 299 295 288 autumn 2018 and currency effects 278 17 15 • EBITA higher than last year due to 12 11 10 contract start-ups and improved 6 efficiency Q1 18/19 Q2 Q3 Q4 Q1 19/20 Q2 Q1 18/19 Q2 Q3 Q4 Q1 19/20 Q2 NORWAY - NET SALES NORWAY - EBITA Q2 HIGHLIGHTS SEK million SEK million Net sales higher than last year as a result • 354 of extensive extra traffic 292 269 250 248 236 • EBITA solidly higher than the prior year 14 7 0 23 period due to extra traffic. Included -8 -9 start-up costs for the contract in Lilleström that commenced in June 2019 Q1 18/19 Q2 Q3 Q4 Q1 19/20 Q2 Q1 18/19 Q2 Q3 Q4 Q1 19/20 Q2 and termination costs in Tromsö. 8 Nobina investor presentation, Q2 2019/20
STABLE SECOND QUARTER WITH SIGNIFICANT GROWTH KEY POINTS Q2 Q2 YTD YTD SEK million Change Change • Net sales growth mainly 19/20 18/19 19/20 18/19 driven by acquisitions Net sales 2 528 2 224 304 5 277 4 575 702 EBITDA 438 387 51 869 735 134 • EBT of 101 MSEK includes % of net sales 17,3 % 17,4 % 16,5 % 16,1 % income and cost related to EBITA 162 136 26 330 251 79 acquisition accounting. % of net sales 6,4 % 6,1 % 6,3 % 5,5 % Adjusted EBT is 107 MSEK EBIT 156 127 29 308 241 67 • All four segments showing % of net sales 6, % 5,7 % 5,8 % 5,3 % strong Q2 figures Interest income - - - - - - supporting the growth in Interest expenses -46 -44 -2 -97 -89 -8 FX net -9 - -9 -13 1 -14 EBT EBT 101 83 18 198 153 45 % of net sales 4,0 % 3,7 % 3,7 % 3,3 % Tax -20 -21 1 -41 -39 -2 Earnings after tax 81 62 19 157 114 43 9 Nobina investor presentation, Q1 2019/20
STRONG CONTRIBUTIONS FROM ACQUISITIONS AND IMPROVED EFFICIENCY KEY POINTS • Effects of price and volume positive both regarding Net sales Net sales EBT, Adj. SEK million and EBT driven by a maturing contract portfolio and contract changes. This item includes positive effects from acquisitions, YTD Mar 2018 – Aug 2018 4,575 163 additional traffic and incentive revenues. Price and volume 573 75 • Contract migration have been extensive this year but occurred late in Q2. Total effect on Net sales and EBT slightly positive. Contract migration 33 10 • Efficiency after indexation has improved compared to last year Indexation & operational 96 8 mainly driven by lower fuel consumption, sick leave and efficiency overtime. Other - -14 • Other represents cost deviations, primarily within central functions, and includes result from the fleet operations Financial net - -22 • Profit for the year was adversely impacted by unrealized YTD Mar 2019 – Aug 2019 5,277 220 currency effects on loan for acquisition financing in DKK and increased interest costs. 10 Nobina investor presentation, Q2 2019/20
CASH FLOW IMPACTED BY NEW FINANCING METHOD AND TIMING EFFECT FROM GREEN BOND KEY POINTS Q2 Q2 YTD YTD ▪ Cash flow from operations before working capital SEK million Change Change 19/20 18/19 19/20 18/19 stronger than Q2 previous year following higher Cash flow from operations before result 421 347 74 855 724 131 changes in working capital ▪ Improvement in working capital mainly relating to Changes in working capital 53 -83 136 -50 -179 129 timing impact of accounts payables Interest received and tax payment -2 -1 -1 -2 -1 -1 ▪ Negative cash flow from investing increased from Cash flow from operations after last year due to extensive traffic starts and change 472 263 209 803 544 259 changes in working capital in financing method of the existing bus fleet in Sweden from financial leasing to loans Cash flow from investing activities -623 -17 -606 -1 282 -55 -1 227 ▪ Improved cash flow from financing activities in Q2 Cash flow from financing activities -385 -546 161 -127 -863 736 due to new loans related to the change in financing method of the bus fleet in Sweden Cash flow for the period -536 -300 -236 -606 -374 -232 ▪ Total cash flow for the period lower than Q2 last Cash and cash equivalents at the 460 402 58 460 402 58 year due to high level of bus investments financed end of the period by the green bond issued in Q4 last year 11 Nobina investor presentation, Q2 2019/20
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