2015 full year results and strategy update

Transcription

2015 FULL YEAR RESULTS
AND STRATEGY UPDATE
25 November 2015
Agenda
› Highlights – Peter Fankhauser, CEO
› Financial results and current trading
› Transformation – the journey so far
› Our strategy for profitable growth
› Summary and outlook
Page 2
2015 was a successful year for Thomas Cook
› A year of underlying progress
› Return to top-line growth; Underlying EBIT margin up to 4%
› Growing despite external shocks
› Transition from operating efficiency to customer excellence
› Making sustainable long-term improvements to drive profitable
growth and create shareholder value
1 HIGHLIGHTS
Page 3
Back in the black at the bottom line
›
Positive profit after tax
Profit after tax of £19 million
›
Financially stronger
Extended maturities and new enlarged banking facilities
›
Strengthening UK business
Increased underlying EBIT by 42%
›
Dividend payment expected in early FY17
In respect of FY16 earnings
›
Well-positioned for further growth
Current trading is encouraging; New Operating Model is delivering
1 HIGHLIGHTS
Page 4
Agenda
› Highlights – Peter Fankhauser, CEO
– Michael Healy, CFO
Page 5
Financial overview – continued improvement
Profit after tax of
£19 million is an
improvement of £177
million and the first
profit after tax since
2010
EBIT margin of 4%
has been achieved
Net debt reduced by
£156 million
2 FINANCIAL RESULTS
£m
2015
2014
Change
Like-for-like
Change
Revenue
7,834
8,588
(754)
86
Gross Margin
22.6%
22.3%
0.3%
0.0%
Underlying EBIT
310
323
(13)
30
EBIT margin
4.0%
3.8%
0.2%
0.4%
19
(115)
134
177
(139)
(326)
187
156
Profit / (loss) after tax
Net Debt (at 30 September)
Page 6
Group revenue bridge
Like-for-like revenue slightly ahead of last year (+1%)
8,588
(641)
Like-for-like change +£86m
(98)
(101)
7,748
Fuel
FY14 LfL*
263
(130)
(47)
7,834
Other
FY15
EUR/GBP 10% lower
SEK/GBP 15% lower
FY14
Translation
Disposals
Own Brand
Hotels & Other
New Products
Tunisia
*a reconciliation of Like-for-like (LfL) adjustments are shown on page 54
2 FINANCIAL RESULTS
Page 7
Group gross margin bridge
Like-for-like gross margin improvements have been maintained
Like-for-like change maintained
0.7%
(1.0)%
22.6%
0.6%
22.6%
0.3%
22.3%
FY14
(0.3)%
Like-for-like
adjustments*
FY14 LfL*
Product/Yield
mix
Bed Cost
inflation
Profit
Improvement
Non-Fuel
flying costs
FY15
2 FINANCIAL RESULTS
Page 8
Gross margin by business
Gross margin improvements have been maintained though a strong performance in both the UK
and Northern Europe
UK
Continental
Europe
26.2% 26.6% 26.7%
Northern
Europe
25.4%
27.0% 27.9%
Airlines
Germany
27.1%
Group
28.7% 28.4%
21.9% 22.6% 22.6%
13.8% 14.2% 13.5%
+0.1%
2013 LfL 2014 LfL
2015
-0.3%
+0.9%
FLAT
-0.7%
2013 LfL 2014 LfL
2015
2013 LfL 2014 LfL
2015
2013 LfL 2014 LfL
2015
2013 LfL 2014 LfL
2 FINANCIAL RESULTS
Page 9
2015
Continental Europe gross margin
Clear set of actions to improve trading in Germany
Continental
Europe
13.8% 14.2% 13.5%
-0.7%
2013 LfL 2014 LfL
Issues
Responses
› Overcapacity and resulting
price pressure
› Strengthened management
› Geopolitical issues
› Increase in differentiated
holidays
› Disruption within
distribution channel
› New web platform
› Improved distribution
relationships
› Focus maintained on profit
2015
2 FINANCIAL RESULTS
Page 10
1
Group EBIT bridge
Like-for-like EBIT is £30m higher than last year
Like-for-like change +£30m
Gross margin improvement includes:
 +£49m profit improvement
 +£21m incremental New Product growth
 -£18m adverse impact from EU261
(19)
323
61
(38)
42
(5)
(32)
(22)
280
310
£13m depreciation
£19m other (1.2% inflation)
EUR/GBP 10% lower
SEK/GBP 15% lower
FY14
Translation
Disposals
FY14 LFL*
Underlying
Gross Margin
2 FINANCIAL RESULTS
Tunisia
Cost
Out
(Overhead)
Strategic
Opex
Depn &
other
Page 11
FY15
EBIT by business
Like-for-like EBIT growth in all segments except Continental Europe
Continental
Europe
UK
EBIT Margin % 1.8%
3.4%
4.8%
1.6%
2.5%
2.1%
Northern
Europe
6.3%
7.8%
Airlines
Germany
9.1%
3.7%
Group
4.5%
4.1%
2.1%
3.6%
280
+£35m
-£19m
+£18m
4.0%
310
+£9m
172
47
84
2013 LfL 2014 LfL
119
58
2015
90
2013 LfL 2014 LfL
71
2015
64
78
2013 LfL 2014 LfL
96
42
2015
47
2013 LfL 2014 LfL
56
2015
2013 LfL 2014 LfL
Note: Group EBIT includes head office costs of £32m 2015, £19m 2014, and £30m 2013
2 FINANCIAL RESULTS
Page 12
2015
Group cash flow
Seasonal cash flow in line with last year
£m
98
2015
2014
Change
484
-
441
43
12
43
(43)
(12)
EBITDA
Working Capital1
Tax
Pensions & Other
Operating Cashflow
Total Exceptional items2
Capital Expenditure
Net Interest Paid
Free Cash Flow
484
139
(18)
(20)
585
(98)
(201)
(125)
161
496
3
(32)
(22)
445
(43)
(156)
(130)
116
(12)
136
14
2
140
(55)
(45)
5
45
Cash conversion3
75%
55%4
20%
EBITDA (LfL)
EBIT LfL adjustments
Deprecation LfL adjustments
Prior Year
exceptional items
40
EU261
16
Current Year
exceptional items
42
43
34
9
FY15
FY14
1 Aircraft related provision movements of £13m in 2015 and are shown within working capital (FY14:£35m)
2 Includes net proceeds from disposals of £20m in 2015 and £78m in 2014
3 Cash conversion Cash conversion ratio is defined as free cash flow after exceptional items and before capital expenditure as a
percentage of EBITDA. Methodology shown on page 49
4 cash conversion in FY14 restated for aircraft related costs being treated as working capital rather than capital expenditure
2 FINANCIAL RESULTS
Page 13
Net debt
Like-for-like net debt reduction of £156m
Total change £187m
Like-for-like change £156m
£(201)m
£(98)m
£585m
£(125)m
£(5)m
£18m
£92m
£(79)m
£(295)m
£(326)m
FY14
£(139)m
New Equity
2 FINANCIAL RESULTS
FX
movements
Non-cash
movements
FY14 LFL
Operating
Cashflow
Capex
Exceptionals
Net Interest Other Trading
Paid
Page 14
FY15
Net debt composition and maturity profile
Significant improvement of average maturity of capital structure
Maturity profile – 1 October 2014
£m
€400m senior notes
Maturity profile - 30 September 2015
£m
Bank Facility Tranche A
Bank Facility Tranche B
£300m senior notes
767
83
470
340
30
800
310
408
297
388
299
295
45
2015
2016
2 FINANCIAL RESULTS
2017
2018
2019
2020
2021
2015
2016
2017
2018
2019
2020
Page 15
2021
Current trading
UK
W15/16
Continental Europe
W15/16
• Bookings:
+8%
• Bookings:
-6%
• ASP:
+2%
• ASP:
+6%
• % Sold
53%
• % Sold
54%
Northern Europe
W15/16
Condor
W15/16
• Bookings:
+7%
• Bookings:
-1%
• ASP:
+9%
• ASP:
-1%
• % Sold
70%
• % Sold
58%
Total Group bookings and ASP are +1% and +3% respectively and 58% of the programme has been sold
Based on cumulative bookings to 14 November 2015
2 FINANCIAL RESULTS
Page 16
Agenda
› Highlights
– Michael Healy, CFO
Page 17
We have achieved a step change in financial performance
Revenue (£bn)
8.1
Underlying EBIT (£m)
8.0
7.7
7.8
126
FY12
LfL
FY13
LfL
FY14
LfL
FY15
Profit after tax (£m)
FY12
LfL
280
310
FY14
LfL
FY15
172
FY13
LfL
Net Debt (£m)
19
(378)
FY12
LfL
(283)
FY13
LfL
(158)
(421)
(326)
FY13
FY14
(139)
(788)
FY14
LfL
3 TRANSFORMATION – THE JOURNEY SO FAR
FY15
FY12
FY15
Page 18
Performance by business
Group EBIT margin has increased from 1.6% in 2012 to 4.0% in 2015
UK & Ireland
Continental
Europe
Northern
Europe
2012
2015
2012
2015
2012
2015
2012
2015
2012
2015
Customers (m)
7.1
6.1
7.6
7.1
1.5
1.7
6.8
7.7
20.6
20.0
Revenue (£bn)
2.8
2.5
3.6
3.4
1.0
1.1
1.0
1.3
8.1
7.8
Airlines
Germany
Group
Gross Margin %
25.0%
26.7%
13.8%
13.5%
26.7%
27.9%
25.8%
28.4%
21.0%
22.6%
EBIT %
-0.4%
4.8%
1.2%
2.1%
8.4%
9.1%
3.1%
4.5%
1.6%
4.0%
 From broadly the same
base of passengers and
revenue from 2012 to
2015, the Group has
delivered significant
improvements in both
Gross and EBIT Margins
 All businesses have
contributed to the
improved Group EBIT
Margin
Page 19
Progress towards our 2015 KPIs and targets
2012
New Product Revenue
Actual
2013
2014
2015
Target
2015
Achievement
• Achieved for Own Brand hotels;
not achieved for City Breaks
-
£94m
£280m
£543m
> £700m
Web Penetration
34%
36%
38%
40%
> 50%
Cost out / Profit Improvement
£60m
£194m
£400m
£510m
> £500m • Achieved
Sales CAGR1
-
-
-
(1.2%)
> 3.5%2
• Not achieved due to focus on
profitable business
Underlying Gross Margin Improvement2
-
0.8%
1.5%
1.6%
> 1.5%
• Achieved
UK underlying EBIT Margin2
0.1%
2.2%
3.5%
4.8%
> 5%
• Mostly achieved
Cash Conversion3
11%
48%
55%
75%
> 70%
• Achieved
Notes:
1.
2.
3.
• Not achieved
Compound annual growth rate from 2013 to 2015 including new product revenue
Underlying gross margin, adjusted for disposals and shop closures to make all periods from 2012 - 2015 like-for-like
Cash conversion ratio is defined as free cash flow after exceptional items and before capital expenditure as a percentage of EBITDA.
FY14 has been restated for aircraft related costs being treated as working capital rather than capital expenditure; FY14 reported cash conversion was 62%
Page 20
Agenda
› Highlights
› Our strategy for profitable growth – Peter
Fankhauser, CEO
4 OUR STRATEGY FOR PROFITABLE GROWTH
Page 21
Well positioned in a long-term growth market
World international tourist arrivals (m)
Holidays taken by UK residents (air)
Year-on-year growth
1,200
10%
1,000
5%
800
0%
600
-5%
400
-10%
1994
1996
1998
2000
2002
2004
2006
2008
2010
2012
2014
200
Source: UNWTO
2010 2011
Package
2012 2013 2014
Independent
Source: ONS International Passenger Survey
Page 22
Our vision and customer focus
“Our vision is to be the world’s best loved holiday company, delighting our
customers, staff and shareholders”
› Loyalty and customer lifetime value
› Shift focus from price to quality
› Customer satisfaction as a core KPI
› Cultural change across the Group
Page 23
Our customer charter
Page 24
Our business model
Tablet
Desktop
Dynamic package
Mobile
Classic package
By phone
In store
Component
Ancillaries
Thomas Cook
Airlines
Yield & pricing
Differentiated holidays
Content &
Reviews
Customer
experience
Complementary products
Customer
information
Hotels & Resorts
division
Inventory & reservation systems
Page 25
The New Operating Model
Strategic pillar
Own-brand hotels
and flights
Our holiday offering
Omni-channel and
customer
Efficiencies
Business focus
Hotels & Resorts unit
New Operating Model initiative
Grow own-brand hotel occupancy and improve yield
In-house airline
Optimise mix (package vs seat only) and yielding
Differentiated holidays
Grow sales to fewer, higher margin, quality hotels
Complementary products
Online and retail
Develop low-cost model
Improve omni-channel effectiveness and efficiency
CRM and ancillaries
Increase ancillary sales through improved CRM
“One Tour Operator”
Align and integrate tour operator processes
Cost out continuation
Generate further efficiencies through cost out
Page 26
Own-brand hotels and flights: Thomas Cook Hotels & Resorts
Grow own-brand hotel occupancy and improve yield
Significant improvement in “Trust You” scores1
+1.56
› Generate more value from
existing ~200 hotels
87.12
+1.93
79.76
+2.49
+3.37
+3.11
86.69
88.46
85.92
› Grow demand through better
quality and brands – new
concept Casa Cook in 2016
› Grow yields through more
effective distribution
1. 2015 vs 2014
Page 27
Own-brand hotels and flights: Thomas Cook Group Airlines
Optimise mix (package vs seat only) and yielding
Delays of > 3 hours
halved
over the last 2 years
› Drive profitable growth in
seat only
› Reduce reliance on tour
operator to minimise risk
› Improve yields through
more effective distribution
Page 28
FY15 Group revenue split (£bn)
2.0
3.9
1.9
Differentiated
Complementary
Seat only and
other ancillaries
FY15 differentiated revenue split (£bn)
0.7
3.2
Own-brand
Other differentiated
Grow sales to fewer higher margin differentiated hotels
› Improve quality and service to attract new customers
› Focus sales on fewer hotels
› Increase capacity sharing across source markets
Develop low cost complementary model
› Offer range and choice to our customers
Page 29
Omni-channel and customer
Improve omni-channel
effectiveness and efficiency
Increase ancillary sales
through improved CRM
› Increase conversion
› Share CRM best practice
throughout the Group
› Develop more features
› Grow personalised services
› Optimise booking flow
OneWeb conversion uplift1
Group web penetration
+10%
+16%
+67%
2012
2015
34%
40%
1. 2015 vs 2014
Page 30
Efficiencies: “One Tour Operator” and cost out
Drive out costs by aligning and integrating our tour operator processes
From country siloes to Group-wide functions
› Reduce IT complexity
› Improve yield management
across the Group
› Integrate functions across
the Group
Cost savings
More customer centric
Higher quality
Page 31
Progressing Fosun initiatives
We continue to develop joint initiatives with Fosun, underpinned by a strong working relationship
› China JV: Key staff in place and licenses in
train
› Club Med: marketing and distribution
partnership operational
› Hotel Fund: key team being recruited to form
fund management company
Page 32
New Operating Model financial benefits
Cumulative EBIT benefits of £100m to £120m by FY18
Offset by cost of
£80m to £90m
Benefits of £180m to £210m
Omni-channel and
customer
25-30
25-30
(20-25)
(60--65)
25-30
100-120
20-25
50-55
35-40
Own-brand
Differentiated Complementary Omni-channel
hotels & flights
Holiday
Holiday
offering
offering
5 GROWTH METRICS
CRM
Efficiencies
Depreciation
Overhead
Cost Inflation
Page 33
EBIT
benefit
Financial targets to FY18
We believe our strategy has the potential to deliver significant further growth by FY18
Existing business
momentum
+
New Operating
Model
Revenue growth:
At least in line with
market (c. 2% - 3%)
EBIT benefits from New
Operating Model:
£100m – £120m
Cash conversion1:
> 70% per annum
Fixed term debt reduction:
£300m by FY18
1. New definition of cash conversion
5 GROWTH METRICS
Page 34
Dividend policy
We expect to reinstate the dividend in respect of FY16 profits, as previously announced
› Pay out ratio of 20-30% of net profit, first dividend payable in respect of FY16 earnings
› Dividend payments will be funded out of positive free cash flow
› A final dividend will be declared at the full year results announcement each year
› In view of the seasonality of the Group’s profit profile, no interim dividends will be paid
› The Board will review the pay out ratio annually in line with our debt reduction strategy
5 GROWTH METRICS
Page 35
Agenda
› Highlights
› Summary and outlook – Peter Fankhauser, CEO
6 SUMMARY AND OUTLOOK
Page 36
Summary and outlook
›
Delivered against underlying expectations in spite of headwinds
›
Reshaping our business with the Customer at Our Heart
›
Well positioned to deliver sustainable profitable growth
6 SUMMARY AND OUTLOOK
Page 37
Q&A
Page 38
Group revenue bridge – 2012 to 2015
9,145
(697)
(130)
(386)
FY12
6 Appendix
Translation
Disposals
543
(419)
8,062
FY12 LfL
New
Products
Tunisia
Capacity
Reductions
(222)
7,834
Derisking
FY15
Page 39
Group EBIT bridge – 2012 to 2015
(38)
(109)
310
286
166
(26)
FY12
6 Appendix
Translation
(15)
Disposals
125
68
FY12 LFL Gross Margin
(22)
Tunisia
Cost
Out
(Overhead)
Strategic
Opex
Depn &
other
Page 40
FY15
Group net debt bridge – 2012 to 2015
£m
c.£550m
Financial
Stability
c.£1,470m
Operational
Improvements
c.£(860)m
Investment in
business
c.£(500)m
Debt
Servicing
(139)
(788)
FY12
6 Appendix
Net
Disposals
Recap &
FOSUN
partnership
EBITDA
Working
Capital
Capex &
Aircraft
Exceptionals
Interest
Pensions,
Tax & Other
Page 41
FY15
Revenue & EBIT by quarter
Q1
19%
Share of revenue
Q2
16%
Q4
40%
Q3
25%
Full Year
8,030 7,748 7,834
Revenue
£bn
+£40m
+£2m
+£5m
+£39m
+£86m
3,179 3,103 3,142
1,546 1,479 1,519
1,244 1,221 1,223
2012 2013 2014
2012 2013 2014
2,061 1,945 1,950
2012 2013 2014
2012 2013 2014
2012 2013 2014
+30m
381
EBIT
£m
+£10m
+£8m
(70)
(63)
(53)
(146)
6 Appendix
(128)
+£7m
+£5m
7
25
446
453
280
172
30
(120)
Page 42
310
Group income statement
£m
2015
2014 LfL
2013LfL
Like-for-like
Change
Revenue
7,834
7,748
8,030
86
Gross Profit
1,774
1,754
1,759
20
Overheads
(1,464)
(1,474)
(1,587)
10
EBIT
310
280
172
30
Separately Disclosed Items (EBIT)
(99)
(271)
(232)
172
Profit/Loss from Operations
211
9
(60)
202
8
2
1
6
Net Finance costs
(141)
(143)
(146)
2
Separately Disclosed Items (Finance Charges)
(28)
(25)
(31)
(3)
Profit / (Loss) before Tax
50
(157)
(236)
207
Tax
(31)
(1)
(47)
(30)
Loss after Tax
19
(158)
(283)
177
Associated Undertakings
6 Appendix
Page 43
Revenue by business
2015 vs. 2014
£m
2015
2014
2014 LfL
Headline
variance
Like-for-like
variance
UK & Ireland
2,457
2,585
2,458
(5)%
0%
Continental Europe
3,449
3,958
3,554
(13)%
(3)%
Northern Europe
1,057
1,153
998
(8)%
6%
Airlines Germany
1,257
1,299
1,145
(3)%
10%
Corporate
(386)
(407)
(407)
5%
5%
Total Revenue
7,834
8,588
7,748
(9)%
1%
6 Appendix
Page 44
Gross margin by business
2015 vs. 2014
£m
2015
2014
2014 LfL
Headline
variance
Like-for-like
variance
UK & Ireland
26.7%
26.1%
26.6%
0.6%
0.1%
Continental Europe
13.5%
14.2%
14.2%
(0.7)%
(0.7)%
Northern Europe
27.9%
27.4%
27.0%
0.5%
0.9%
Airlines Germany
28.4%
27.8%
28.7%
0.6%
(0.3)%
n/a
n/a
n/a
n/a
n/a
22.6%
22.3%
22.6%
0.3%
Flat
Corporate
Total Gross Margin %
6 Appendix
Page 45
Overheads by business
2015 vs. 2014
£m
2015
2014
2014 LfL
Headline
variance
Like-for-like
variance
UK & Ireland
(537)
(587)
(568)
9%
5%
Continental Europe
(393)
(460)
(413)
15%
5%
Northern Europe
(200)
(216)
(191)
7%
(5)%
Airlines Germany
(302)
(311)
(282)
3%
(7)%
Corporate
(32)
(19)
(20)
(60)%
(60)%
(1,464)
(1,593)
(1,474)
8%
1%
Total Overheads
6 Appendix
Page 46
EBIT by business
2015 vs. 2014
£m
2015
2014
2014 LfL
Headline
variance %
Like-for-like
variance
UK & Ireland
119
89
84
34%
42%
Continental Europe
71
102
90
(30)%
(21)%
Northern Europe
96
101
78
(5)%
23%
Airlines Germany
56
50
47
12%
19%
Corporate
(32)
(19)
(19)
(68)%
(68)%
Total EBIT
310
323
280
(4)%
11%
6 Appendix
Page 47
Separately disclosed items
2015
£m
2014
Cash
Non-cash
P&L
Cash
Non-cash
P&L
(51)
(1)
(52)
(109)
(1)
(110)
Reassessment of deferred consideration
-
18
18
-
-
-
Asset valuations
-
-
-
-
(57)
(57)
Onerous contracts and legal disputes
(5)
(30)
(35)
(5)
(74)
(79)
Other
(13)
(17)
(30)
(5)
(20)
(25)
EBIT related items
(69)
(30)
(99)
(119)
(152)
(271)
7
7
-
(28)
(28)
-
(25)
(25)
(69)
(51)
(120)
(119)
(177)
(296)
Restructuring
Profit on disposal of associated undertaking
Finance related charges
Total
6 Appendix
Page 48
Cash conversion – introduction to new method
Cash conversion (FY12 – FY15 method) (£m)
FY12
FY13
FY14
FY15
Operating Cashflow
Interest
Cash Exceptionals
Converted Cash
EBITDA
Cash conversion
282
(117)
(130)
35
316
11%
453
(130)
(120)
203
425
48%
445
(130)
(43)
272
496
55%
585
(125)
(98)
362
484
75%
Cash conversion (FY16 – FY18 method) (£m)
FY12
FY13
FY14
FY15
EBIT
Net interest
Underlying PBT
Free cash flow
Cash conversion
177
(123)
54
(103)
n/a
263
(146)
117
53
45%
323
(143)
180
116
64%
310
(141)
169
161
95%
75%
48%
55%
11%
FY12
FY13
FY14
FY15
95%
6 Appendix
64%
45%
n/a
Page 49
Underlying Finance Costs
Pro Forma
Assumes all bonds are repaid on maturity
£m
Interest on bank facilities
Coupon
2015
2014
2016
2017
2018
2019
2020
2021
LIBOR +3.50%
1
2
6
-
-
-
-
-
Interest on 2015 €400m bond
6.75%
15
24
-
-
-
-
-
-
Interest on 2017 £300m bond
7.75%
24
24
24
17
-
-
-
-
Interest on 2020 €525 bond
7.75%
30
33
32
32
32
32
24
-
Interest on 2021 €400m bond
6.75%
13
-
21
21
21
21
21
16
Bank and bond interest and related charges
83
83
83
70
53
53
45
16
Commitment fees
7
6
Letters of credit & bonding
15
17
Other interest costs
Interest & finance costs before aircraft
financing
Interest income
Net interest & finance costs before aircraft
financing
Aircraft financing
4
8
109
114
(1)
(1)
108
113
18
21
105
76
Fee amortisation and other non-cash
Net Interest Expense
6 Appendix
15
9
141
143
Assumed
at c.£60m (same
level as 2015)
143
130
113
113
Page 50
Net debt composition
Maturity profile – 30 September 2015
£m
2015 Euro Bond
2017 GBP Bond
2020 Euro Bond
2021 Euro Bond
Commercial Paper
Revolving Credit Facility
Finance Leases
Aircraft related borrowings
Other external debt
Arrangement fees
Total Debt
Cash
Net Debt
6 Appendix
Jun-15
Jun-17
Jun-20
Jun-21
Various
May-19
Various
Various
Various
n/a
2015
2014
Variance
(299)
(388)
(295)
(155)
(310)
(297)
(408)
(82)
310
(2)
20
(295)
(73)
(183)
(99)
(47)
26
(1,440)
1,301
(139)
(181)
(79)
(13)
25
(1,345)
1,019
(326)
(2)
(20)
(34)
1
(95)
282
187
Bank Facility Tranche A
Bank Facility Tranche B
£300m senior notes
800
388
299
2015
2016
2017
2018
2019
2020
Page 51
295
2021
Performance of Wave 1 cost out programme versus targets
£m
2012
2013
2014
2015
2015
Actual
Actual
Actual
Actual
Target
60
124
140
140
140
-
70
260
370
360
Integrated Air Travel
-
27
100
148
134
Organisational Structure
-
30
91
118
111
Product, Infrastructure, Technology and other
-
13
69
104
115
60
194
400
510
500
Income Statement
36
47
30
24
11
Cash Flow
30
29
33
37
24
-
8
21
34
31
UK Turnaround
Group-wide cost out and profit improvement
Total Targeted Benefits
Costs to achieve
- Operating expenditure
- Capital expenditure
6 Appendix
Page 52
Capital expenditure
Investment of £201m in FY15
FY15 Capital Expenditure
FY14 Capital Expenditure
9 6
12
£201m
99
Airlines1
IT
Hotels
Store refits
Other
5
41
8
6
£156m
75
96
1 Excludes aircraft capital costs of £13m in FY15 (FY14:£35m) relating to maintenance of aircraft under operating leases
6 Appendix
Page 53
Reconciliation of ‘like for like’ to underlying numbers
“Underlying” refers to
trading results after
adjusting for separately
disclosed items that are
significant in
understanding the ongoing results.
“Like for like” reflects
the comparison in the
underlying results after
removing identifiable
non-recurring items in
the prior year.
6 Appendix
Revenue
£m
2015
£m
Underlying
7,834 8,588
Gross Margin
2014 Change
£m
£m
(754)
2015
%
2014 Change
%
%
22.6% 22.3% 0.3%
EBIT
2015
£m
2014 Change
£m
£m
310
323
(13)
(5)
5
Disposals/Store Closures
(98)
98
Fuel
(101)
101
0.3% (0.3)%
0
0
Currency impact
(641)
641
0.1% (0.1)%
(38)
38
7,834 7,748
86
280
30
Like-for-Like
(0.1)% 0.1%
22.6% 22.6%
Flat
310
Page 54
FX and fuel hedging (31 October 2015)
Winter
2015/16
Price
Summer
2016
Price
2016
Price
Winter
2016/17
EUR
95%
75%
81%
34%
USD
95%
84%
89%
50%
Jet Fuel
91%
$724
90%
$642
91%
Jet Fuel GBP
equivalent (i)
$692
82%
Price
$599
£470
(i) Hedged
jet fuel costs translated at hedged USD to GBP rate in FY16 equates to £470/tonne (including into plane costs), (FY15:£540/tonne).
This represents a projected saving of £100m for FY16 versus FY15
 Transactional USD exposures against EUR, GBP and SEK have been
hedged in line with Fuel hedges. A 1% variance in 2015 would
have a £0.1m impact.
It is our policy not to hedge EUR and SEK profits and so FY16
profits will not be hedged. At current rates(ii), the impacts of
fluctuations in those currencies can be summarised as:
 Transactional EUR exposures against GBP and SEK hedged in line
with policies. A 1% variance in 2015 would have a £0.3m impact.
 Every 1% move in Euro has a £1.6m impact on EBIT
(ii)
6 Appendix
 Every 1% SEK movement has a £2.9m impact on EBIT
Spot rates as at 12 November 2015
Page 55

2015 full year results and strategy update

Transcription

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