NATIONAL EXPRESS GROUP PLC AN OVERVIEW February 2005 3
A leading international public transport Group Carrying over one billion passengers a year 4
A BRIEF HISTORY 1973 - First National Express coach appeared on Britain s roads 1988 - Privatised by Government 1992 - Floated on London Stock Exchange 1995 - Acquired Travel West Midlands 1996 - Acquired first train companies 1998 - Entered North American student bus market 1999 - Entered Australian transport market 2001 - Disposal of UK Airports 2002 - Entered Canadian transport market - Exited Australian train and tram operations 2004 - Commenced operation of one rail franchise - Entered London bus market 5
NATIONAL EXPRESS GROUP TODAY Buses Travel West Midlands Travel Coventry Travel Dundee Travel Midland Metro Travel London Trains c2c Central Trains Gatwick Express Midland Mainline one Silverlink Stansted Express Wagn Wessex Trains Coaches National Express National Express Airport National Express Shuttle Eurolines USA ATC Durham School Services Stock Transportation Stewart Airport Australia Westbus 7
STRATEGY To achieve customer and revenue growth To work in partnership with customers To deliver high quality, value for money and safe services To expand by capitalising on privatisation opportunities in key geographic markets To make public transport the first choice travel option not the last resort 8
FINANCIAL HIGHLIGHTS Turnover of 2.6bn (2001: 2.5bn) Group operating profit before goodwill and exceptionals of 130.9m (2001: 157.8m) Cash flow from operations of 175.5m (2001: 185.5m) Profit before goodwill, exceptional and tax of 106.8m (2001: 129.2m) Normalised fully diluted EPS of 60.3p (2001: 66.0p restated) Increase in total dividend per share of 11% to 24.5p (2001: 22.0p) Net debt of 334.6m (2001: 315.0m) Continuing EBITDA interest cover of 9.5 times (2001: 7.5 times) 9
AVERAGE NUMBER OF EMPLOYEES (as at December 2003) Thousands 50 40 30 20 Australia N America UK 10 0 1998 1999 2000 2001 2002 2003 10
UK TRAINS 11
UK - BUSES 12
UK - BUSES TWM largest single area metropolitan bus network in the UK serving Birmingham and the West Midlands Operations in Scotland 2,000 vehicles carry more than 350 million passengers 80 million miles each year Operator of new 145m Midland Metro tram system in Birmingham 140m invested in 800 new easy access low floor buses since 1995 13
UK - TRAINS Largest owner of train companies in the UK with 8 companies Gatwick Express Silverlink Midland Mainline Wagn (including Stansted Express) Central Trains c2c One Wessex Trains Only dedicated train maintenance company in UK Consistent 10% per annum growth in passenger revenue since acquisition (pre Hatfield) Over 200 new trains ordered worth 550m Performance league leaders since privatisation Innovative new train services, marketing and fare initiatives Bus/rail integration initiatives 14
UK - COACHES 15
UK - COACHES Britain s only scheduled express coach network 12 million passengers a year 1200 destinations in England, Scotland and Wales 500 branded coaches Leaders in telesales and internet Leading operator of dedicated coach services for airports and airlines with 5.5m passenger journeys Britain s largest operator of scheduled European coaches with 450 destinations in 25 countries in continental Europe 16
USA - BUSES 17
NORTH AMERICA Ontario WA MI OR ID WI Nova Scotia NE IA MI PA NY MA CA NV UT CO KS MO IL OH VA MD NJ CT OK NC Student Transportation Division AZ NM MS GA SC Public Transit Division TX LA Student Transportation and Public Transit Divisions FL Airport Division 18
NORTH AMERICA Critical mass Strong professional management Investment in building customer relations/partnerships Excellent contract retention rates 19
OTHER OPERATIONS Stewart Airport in North America April 1, 2000 handover by Governor of New York State 4th largest airport in New York State 800,000 passengers per annum Westbus in Australia 20
A DAY IN THE LIFE OF 1 million bus passengers in Birmingham 51,000 coach journeys in Britain 800,000 train or tram journeys in Britain 160 dedicated Airport Express trains to London airports 500 breakfasts served on Midland Mainline 104,000,000 American school children safely delivered each year 280,000 commuters taken to and from work in Melbourne 21