NOBINA AB Investor presentation, June – August 2017 1
LARGEST PUBLIC TRANSPORT COMPANY IN THE NORDIC REGION Total market - Annual net sales per country Nobina’s economies of scale, market expertise and outstanding bus fleet, combined with long-term delivery of quality, make Nobina the industry (SEK billion) leader in terms of profitability. Stable operations and growing market. More than 95% 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 7 management and to increase the value added by delivering benefits to 9 passengers, clients and society. Nobina - Net sales per country 21 2016/17 (SEK billion) 8 Sweden 6 332 Denmark 535 Norway 974 Finland 1 044 Source: Approximation based on Nobina’s data 2 Nobina investor presentation, Q2, 17/18
FINANCIAL OVERVIEW Q2 NET SALES EBIT EBT CASH FLOW SEK million SEK million SEK million SEK million 2,169 106 74 -308 (2,146) (142) (107) (-173) Q2 FINANCIAL HIGHLIGHTS Net sales grew 1.1% supported by extra traffic, passenger driven revenue and indexation of revenue, partly offset by negative contract migration effects from last year EBT dropped to SEK 74 million due to contract migration, shortened depreciation on express buses and one time costs of SEK 11 million related to accrued restructuring costs, primarily staff redundancy Cash flow from operations before changes in working capital was SEK 294 million (336) Investments of SEK 271 million (472) in buses and other equipment 3 Nobina investor presentation, Q2, 17/18
FINANCIAL OVERVIEW YTD NET SALES EBIT EBT CASH FLOW SEK million SEK million SEK million SEK million 4,445 193 124 -372 (4,370) (263) (193) (-141) YTD FINANCIAL HIGHLIGHTS Net sales grew 1.7% supported by extra traffic, passenger driven revenue and indexation of revenue, partly offset by negative contract migration effects from last year EBT dropped to SEK 124 million due to contract migration, lower efficiency, shortened depreciation on express buses and one time costs of SEK 23 million related to accrued restructuring costs, primarily staff redundancy Cash flow from operations before changes in working capital was SEK 516 million (622) Investments of SEK 484 million (584) in buses and other equipment 4 Nobina investor presentation, Q2, 17/18
SIGNIFICANT EVENTS IN Q2 Nobina was awarded a 10 year-contract in Kungsbacka, Sweden covering 13 scheduled buses, however appealed by competitor Skånetrafiken extended contract with Nobina until 2021 in Malmö and converts to electric buses SL and Nobina will develop the city traffic in Norrtälje, Sweden by extending the contract to 2021 and introduce electric buses Troms Fylkestrafikk and Nobina Norway are in agreement not to utilise the full extension option which means the contract will end on July 31, 2019 As part of the strategic review of the interregional operations announced in Q1 a restructuring of Swebus was initiated Cooperation started with Telia to analyse traveller needs in public transportation 5 Nobina investor presentation, Q2, 17/18
SIGNIFICANT EVENTS AFTER Q2 No significant events noted after Q2 6 Nobina investor presentation, Q2, 17/18
BUSINESS DEVELOPMENT Extra traffic and passenger driven share of revenue continue to increase and having favourable impact Finland operations continue to show strong KPI’s Sweden on lower EBT level according to plan after last year’s contract migration Integration of Swebus into Nobina Sweden ongoing to obtain synergies from joint operations Improvement initiative to gain resource efficiency in Norway Nobina investor presentation, Q2, 17/18 7
MARKET UPDATE Higher interest in electric and BRT bus solutions on national level Bus-for-rail market continues to grow Continued increase of profitability in public transportation industry Electric bus tenders spreading across Nordic countries New players on the Nordic express bus market adding price pressure Örebro decision to insource public bus transportation in the city Testing and development of self-driving buses is continuing in several geographic areas 8 Nobina investor presentation, Q2, 17/18
TENDER RESULTS – YTD Tender update Nobina submitted tenders for 479 buses Number of buses Nobina won 16 of the 473 announced buses 1 400 1 188 1 200 Tender results during the period March 2017 – 1 000 (number of buses) August 2017 800 Announced Won 1040 600 479 473 46 16 Sweden 400 401 395 200 370 0 Norway 16 6 148 78 78 0 0 0 Finland Available Submitted Pending Announced Won Nobina operating old contract Others operating old contract 57 0 Denmark Definitions: Available - Remaining buses available in tenders this year Total 473 16 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 9 Nobina investor presentation, Q2, 17/18
CONTRACT MIGRATION, YTD Nobina started contracts involving 106 buses during the period Nobina ended contracts involving 140 buses during the period 8.2 AVERAGE WEIGHTED Traffic changes during the period March 2017 – (number of buses) CONTRACT LENGTH (Last year) August 2017 (8.0) Started Ended 58 79 Sweden 3.9 AVERAGE WEIGHTED 21 45 Norway CONTRACT AGE (Last year) (3.4) 27 16 Finland 5.8 0 0 Denmark AVERAGE AGE OF BUS FLEET (Last year) Total 106 140 (5.5) 10 Nobina investor presentation, Q2, 17/18
CONTRACT MIGRATION, COMING 12M Traffic starts September 2017 – August 2018 Expiring contracts September 2017 – August 2018 PTA No. of years Traffic start No. of buses New buses PTA Traffic ending No. of buses Skånetrafiken, Skyss, Norway Aug 2018 72 4 Dec 2017 42 12 Sweden Total 72 Värmlandstrafik 8 Dec 2017 3 3 Västtrafik* 10 Dec 2017 13 13 Total 58 28 Nobina will end contracts involving a total Nobina will start new contracts involving a total of 58 in-service buses in the next 12 months of 72 in-service buses in the next 12 months * Västtrafik tender has been appealed 11 Nobina investor presentation, Q2, 17/18
SWEDEN AND DENMARK - REGIONAL TRAFFIC Q2 HIGHLIGHTS Sweden - Net sales Sweden - EBIT SEK million SEK million 1 559 1,546 1 523 1 535 Net sales in line with last year with additional 1,493 1,489 sales from new contracts being offset by 137 1 460 134 1,454 ended contracts last fall 120 117 114 90 89 88 Contract migration and bus maintenance cost 1,358 1,335 have adverse effect on EBIT with favorable 47 46 effects from index net and one-off compensation from PTA negotiation Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 15/16 16/17 17/18 15/16 16/17 17/18 Denmark - Net sales Denmark - EBIT Q2 HIGHLIGHTS SEK million SEK million Net sales in line with last year EBIT below last year with last year 139 137 136 133 131 130 129 126 126 126 10 6 6 including positive one-off VAT for bus fleet 5 4 4 2 1 0 financing cost -5 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 15/16 16/17 17/18 15/16 16/17 17/18 12 Nobina investor presentation, Q2, 17/18
FINLAND AND NORWAY - REGIONAL TRAFFIC Q2 HIGHLIGHTS Finland - Net sales Finland - EBIT SEK million SEK million Net sales in line with last year 272 269 264 263 259 260 27 EBIT significantly higher than last year with 250 245 25 23 23 221 212 22 22 well managed driver utilization and efficiency 17 14 Extra traffic due to metro delays in Helsinki 12 continues 7 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 15/16 16/17 17/18 15/16 16/17 17/18 Norway - Net sales Norway - EBIT Q2 HIGHLIGHTS SEK million SEK million Net sales increased compared to last year 11 11 11 10 from started contracts this year and 265 261 -1 258 253 240 233 volume increases in existing contracts 229 227 229 -2 222 2 0 0 -11 EBIT affected by start-up costs and low efficiency in Tromsö Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 15/16 16/17 17/18 15/16 16/17 17/18 13 Nobina investor presentation, Q2, 17/18
SWEBUS Swebus - Net sales Swebus - EBIT Q2 HIGHLIGHTS SEK million SEK million Net sales decreased due to continued 95 10 87 lower express bus volumes 9 79 68 66 63 EBIT well below last year including 62 59 58 57 1 -2 -2 restructuring cost -3 -3 0 -8 -8 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 15/16 16/17 17/18 15/16 16/17 17/18 14 Nobina investor presentation, Q2, 17/18
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