Investor Presentation 201624 November 2016

Driving the Value

Investor Presentation 2016

2

Contents

1. Stobart value wheel

2. Financial highlights

3. Aviation

4. Energy

5. Rail

6. Infrastructure

7. Investments

8. Questions

3

Strategy and Objectives Driving the Value

We are on track to deliver our

strategy by 2018 and drive

shareholder value through our

three growth operating divisions

of Energy, Aviation and Rail…….

The figures represent the book values of the non-current

assets in each division and the book values of the related

net debt as at 31 August 2016.

…….Whilst generating a cash

surplus through the exit of our

Infrastructure and Investment

divisions at the right time.

Financial Highlights

4

Increased turnover

• Increased by £7.7m (13.4%) year-on-year

Improved profitability

• Underlying EBITDA of £20.2m (+102%)

• Underlying profit before tax of £16.2m (+252%)

• Profit before tax £10.8m (2015: £0.6m)

Turnover

£65.3m

Underlying EBITDA

+102%

Financial Highlights (cont.)

5

Strong balance sheet and cash flow

• Net assets £407.2m

• Property assets of £241.8m

• Gearing maintained at 11.7% (February 2016: 11.6%) (net debt/ total

equity)

• Property realisations generated £36.9m net cash proceeds (2015: £6.2m)

Returns to shareholders

• Returned £13.8m to shareholders during the period through dividends

• Quarterly dividends of 3.0p commenced in October 2016

Gearing

11.7%

Dividends

£13.8m

6

Divisional Performance

0.4

0.7

0.0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8

2015

2016

EBITDA £m

HY

Aviation underlying EBITDA £m

4.2

4.9

0.0 1.0 2.0 3.0 4.0 5.0

2015

2016

EBITDA £m

HY

Energy underlying EBITDA £m

0.9

1.0

0.0 0.2 0.4 0.6 0.8 1.0 1.2

2015

2016

EBITDA £m

HY

Rail underlying EBITDA £m

0.7

11.9

0.0 2.0 4.0 6.0 8.0 10.0 12.0

2015

2016

EBITDA £m

HY

Infrastructure underlying EBITDA £m

3.2

5.5

3.2

0.0 2.0 4.0 6.0 8.0

2015

2016

EBITDA £m

HY

Investments underlying EBITDA £m

10.0

20.2

0.0 4.0 8.0 12.0 16.0 20.0 24.0

2015

2016

EBITDA £m

HY

Group underlying EBITDA £m

Auto sale

7

Stobart Aviation

Comprises:

Stobart Aviation aims to deliver a first class passenger experience

8

London Southend Airport

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The ‘anchor’ airline: easyJet

• Three based 156-seat Airbus A319 aircraft• 5,870 flights per annum to 20 destinations• Leisure focused ‘sun and sand’ network• Three key cities: Amsterdam; Barcelona; and Paris• In discussions for fourth and fifth based aircraft

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• ‘Which?’ magazine: Best UK Airport for three years• Plane to train in 15 minutes (hand baggage only)• The only London runway with peak time slots available• Only 53 minutes from central London; 44 to Stratford• Average taxi time of 7 minutes from terminal to runway• Majority of departures largely unaffected by the airspace

congestion over Greater London• Less than a minute to each gate from anywhere in the terminal

Award winning airport

Growing passenger numbers

11

• Heads of terms signed with CityJet• Up to 18 new destinations• Up to 600,000 passengers• Starting April 2017• Discussions with several other airlines ongoing

Propius – Aircraft leasing company

12

• Owns 8 ATR aircraft – all less than 4 years old• Long-term leases• Aer Lingus franchise• Stake increased to 66%• Profitable and cash generative

Stobart Energy

13

Stobart Energy is the number one supplier of biomass in the UK, sourcing and transporting fuel to biomass

plants under long-term contracts

14

Widnes Biomass Plant

15

16

Stobart RailStobart Rail is one of the UK’s leading names in rail network maintenance, repair and improvement

17

Stobart Rail in action

18

Stobart InfrastructureOur Infrastructure division has a strong track record of enhancing the value of the Group’s assets

19

Stobart Investments

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Summary

• Strong growth targets in Aviation and Energy

• Award winning airport, with peak time slots available

• Long-term Contracts for 6 major new biomass plants to

commence in next 18 months

• 3p quarterly dividend

• Valuable non-operating assets

22

Appendices

Income Statement (1)

£'m 31 Aug 16 31 Aug 15 29 Feb 16

6 months 6 months Year

Revenue 65.3 57.6 126.7

Share of JV profits 5.5 6.4 11.1

Movements in value and disposal of properties 11.3 (0.3) 8.4

Operating expenses (61.9) (53.7) (116.2)

Underlying EBITDA 20.2 10.0 30.0

Gain/(loss) on diesel swap 0.7 (1.0) (2.2)

Restructuring, transaction costs and new contract incentives (1.9) (0.6) (1.7)

EBITDA 19.0 8.4 26.1

Income Statement (2)

£'m 31 Aug 16 31 Aug 15 29 Feb 16

6 months 6 months Year

EBITDA 19.0 8.4 26.1

Underlying

Depreciation (4.5) (3.9) (8.4)

Finance cost (net) - underlying (0.3) (0.5) (1.0)

Non underlying

Amortisation of brand (2.0) (2.0) (3.9)

49% share of ESL contract amortisation (1.4) (1.4) (2.8)

Profit before tax 10.8 0.6 10.0

Add back non-underlying items 5.4 4.0 8.4

Underlying profit before tax 16.2 4.6 18.4

Balance Sheet (1)

£m 31 Aug 16 29 Feb 16

Intangible assets 110.3 112.3

Land and buildings and investment property 188.8 216.3

Plant, machinery and fixtures 35.0 28.9

Commercial vehicles 19.3 19.7

ESL investment 54.7 50.9

Propius investment 12.0 11.0

Other investments and non-current receivables 14.1 14.3

Current assets (excluding cash) 106.4 99.4

Cash and restricted cash 4.4 9.8

Gross assets 545.0 562.6

Balance Sheet (2)

£m 31 Aug 16 29 Feb 16

Trade and other payables (48.8) (58.0)

Loans and borrowings (52.1) (57.9)

Provisions (4.3) (4.9)

Defined benefit pension scheme (6.3) (2.7)

Current tax and deferred tax (26.3) (25.4)

Gross liabilities (137.8) (148.9)

Net assets 407.2 413.7

Net debt 47.7 48.0

Banking facility headroom 28.0 23.0

Gearing 11.7% 11.6%

Cash Flow Analysis (1)

£'m 31 Aug 16 31 Aug 15 29 Feb 16

6 months 6 months Year

Profit before tax 10.8 0.6 10.0

Add back:

Movement in value of investment properties 0.2 0.3 (8.4)

Profit on disposal of property, plant and equipment and investment properties

(11.8) - (0.2)

Profit of association and joint ventures (4.0) (5.0) (8.3)

Depreciation 4.5 3.9 8.4

Finance income and charges 0.2 0.5 1.0

Amortisation of intangibles 2.0 2.0 3.9

Share option charge 0.4 0.4 0.6

Diesel swap (1.1) 0.9 1.5

Working capital (8.9) 0.1 (3.9)

Other - (0.2) (2.2)

Cash (used)/generated in operations (7.7) 3.5 2.4

Cash Flow Analysis (2)

£'m 31 Aug 16 31 Aug 15 29 Feb 166 months 6 months Year

Cash (used)/generated in operations (7.7) 3.5 2.4

Income taxes - 3.2 3.2

Purchase of property, plant and investment property (7.7) (24.9) (45.3)

Disposal of property, plant and investment property 37.5 11.8 31.5

Amounts advanced to joint ventures (net) - (2.7) 0.5

Other (2.3) (1.5) (2.5)

Investing activities 27.5 (17.3) (15.8)

Dividends (13.8) (13.1) (19.7)

Net drawdown/repayments (10.5) 26.8 18.4

(Purchase)/sale of treasury shares (0.1) - 17.4

Interest (0.8) (0.8) (1.8)

Financing activities (25.2) 12.9 14.3

(Decrease)/increase in cash (5.4) 2.3 4.1

Cash at beginning of period 9.8 5.7 5.7

Cash at the end of the period 4.4 8.0 9.8

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