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Edited Transcript of GET.PA earnings conference call or presentation 23-Jul-19 9:00am GMT

Half Year 2019 Getlink SE Earnings Call

Paris Jul 27, 2019 (Thomson StreetEvents) -- Edited Transcript of Getlink SE earnings conference call or presentation Tuesday, July 23, 2019 at 9:00:00am GMT

TEXT version of Transcript

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Corporate Participants

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* Jacques Gounon

Getlink SE - Chairman & CEO

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Presentation

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Unidentified Analyst, [1]

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Getlink reports results for the first half of 2019. Jacques Gounon, you are the Chairman and CEO of Getlink, hello.

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Jacques Gounon, Getlink SE - Chairman & CEO [2]

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Hello. I'm very pleased to answer to your questions.

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Questions and Answers

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Unidentified Analyst, [1]

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So how would you describe these half year results?

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Jacques Gounon, Getlink SE - Chairman & CEO [2]

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Good, very strong results because we had revenue growth for the 10th times in a row, which is very strong, which is a clear evidence of the robustness, the resilience of our business model, despite a lot of challenges in this first half. Of course, Brexit, which was scheduled for end of March, a new Brexit. And the various crisis in France with the French custom officer's strike, which obviously, has impacted our results. And yellow vests crises, demonstrations, which is not really attractive for tourists. So in a nutshell, I would say gross revenue growth, and we are very pleased to say that we serve the highest level of dividends as ever with EUR 193 million of dividends. So just to explain that we focused on the total shareholder return.

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Unidentified Analyst, [3]

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So could you give us some figures for this half year?

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Jacques Gounon, Getlink SE - Chairman & CEO [4]

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Clear and blunt figures in order to understand that we have a very resilient and sustainable business model. Revenues are up by 2%. Net profit is up by 5%. And more importantly, free cash flow is up by 19%. This is a clear evidence of the quality of the business and the facility that we have to serve increase dividends, for instance. And despite the slight weakness of EBITDA due to the custom officer's strike, I mentioned, if such crisis will not happen, it means that EBITDA would be still positive, still growing. So that's strong in the concession itself.

And I would like to pay tribute to Europorte, our railway subsidiary, which did a very good business and very strong results. And, of course, we are working on, let's say, kind of green business, which is quite good, like for the concession itself. So definitely, we are very pleased with the first half results even if we faced some challenges. But perhaps, we can explain what are such future challenges in the second half because we are focusing on the second half.

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Unidentified Analyst, [5]

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So what is your guidance for the second half of 2019?

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Jacques Gounon, Getlink SE - Chairman & CEO [6]

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In a nutshell, we can say that this year, we have 2 Brexit: One in March, which did not happen; and something likely to happen, like a no deal in October. We have already said that in case of no deal, which is the most likely to happen presently, our guidance was EUR 560 million. And I confirm we can provide such -- we can deliver such level of profit. And, of course, there is no problem, as I said, on dividends policy, still growing, still a strong dividend return.

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Unidentified Analyst, [7]

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And beyond 2019?

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Jacques Gounon, Getlink SE - Chairman & CEO [8]

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Great Britain will have a new prime minister. I don't know what is the official statements he will make. But I am sure that we are able to deal with all the new rules, whatever such rules, because we have invested in a lot, in staff prepared for the Brexit, in IT tools, in infrastructure in order to focus on what is key for us, which is fluidity and speed. We have a customer-driven strategy, and we believe that this is the real way to have a very successful future. We are very confident in the capacity for the group to have strong and reliable growth in the future midterm.

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Unidentified Analyst, [9]

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Jacques Gounon, thank you very much.

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Jacques Gounon, Getlink SE - Chairman & CEO [10]

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Thank you.