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2022 Annual Report &
Financial Statements
Irish Continental Group (ICG) is the leading Irish-based
maritime transport group. We carry passengers and
cars, Roll on Roll off freight (RoRo) and Container Lift
on Lift off freight (LoLo), on routes between Ireland,
Britain and Continental Europe. We also operate
container terminals in the ports of Dublin and Belfast.
We aim for continued success in our chosen markets
and focus our efforts on the provision of a safe, reliable,
timely, good value and high-quality experience for all
our customers in a way that minimises our impact on
the environment.
We will achieve success by anticipating our customers’
needs and matching their requirements with superior
services through constant innovation and the rapid
application of technology.
We measure our success through the quality of our
service, as seen by our customers, which should result
in delivering sustained and proﬁtable growth for the
beneﬁt of all our stakeholders.
view this report online
icg.annualreport22.com
STRATEGIC
REPORT
Our Group at a Glance 04
Financial Highlights 06
Five Year Summary 07
Chairman’s Statement 08
Chief Executive’s Review 12
How We Create Value 16
Key Performance Indicators and Summary of 2022 Results 18
The Ferries Division 22
The Container and Terminal Division 28
Financial Review 32
Sustainability and ESG 36
Risk Management 60
Our Fleet 70
Executive Management Team 72
CORPORATE
GOVERNANCE
The Board 76
Corporate Governance Report 78
Report of the Audit Committee 91
Report of the Nomination Committee 95
Report of the Remuneration Committee 98
Report of the Directors 109
Directors’ Responsibility Statement 113
FINANCIAL
STATEMENTS
Independent Auditor’s Report 116
Consolidated Income Statement 124
Consolidated Statement of Comprehensive Income 125
Consolidated Statement of Financial Position 126
Consolidated Statement of Changes in Equity 127
Consolidated Statement of Cash Flows 129
Notes to the Financial Statements 130
INVESTOR
AND OTHER
INFORMATION
Investor Information 196
Other Information 198
1
Strategic Report
2022 Annual Report and Financial Statements
STRATEGIC
REPORT
Our Group at a Glance 04
Financial Highlights 06
Five Year Summary 07
Chairman’s Statement 08
Chief Executive’s Review 12
How We Create Value 16
Key Performance Indicators and Summary of 2022 Results 18
The Ferries Division 22
The Container and Terminal Division 28
Financial Review 32
Sustainability and ESG 36
Risk Management 60
Our Fleet 70
Executive Management Team 72
2
Irish Continental Group
The Strategic Report contains certain forward-looking
statements and these statements are made by the Directors
in good faith, based on the information available to them up
to the time of their approval of this report. These statements
should be treated with caution due to the inherent
uncertainties, including both economic and business risk
factors, underlying any such forward-looking information.
The Strategic Report has been prepared for the Group as a
whole and therefore gives greater emphasis to those matters
which are signiﬁcant to Irish Continental Group and its
subsidiaries when viewed as a whole.
3
Strategic Report
2022 Annual Report and Financial Statements
Estonia
Latvia
Lithuania
Denmark
Sweden
Norway
Romania
Bulgaria
Serbia
Croatia
Italy
Slovenia
Hungary
Austria
Slovakia
Switzerland
Belgium
Czech Rep.
Poland
Germany
France
United
Kingdom
Ireland
Netherlands
Rosslare
Holyhead
Antwerp
Rotterdam
Pembroke
Dover
Cherbourg
Calais
Dublin
Belfast
Cork
Irish Ferries Ropax and
Cruise Ferry Services
Irish Ferries High Speed Ferry
Ports Served By Ferries:
Dublin, Rosslare, Holyhead,
Pembroke, Cherbourg, Dover, Calais
Group Geographical Coverage
Eucon Routes
Dublin Ferryport Terminals
Dublin Ferryport Inland Depot
Belfast Container Terminal
Ports Served By Container Ships:
Belfast, Dublin, Cork, Antwerp,
Rotterdam
Irish Continental Group is a customer
focused business with a pivotal position in
the logistics chain facilitating international
trade between Ireland, Britain and
Continental Europe.
The Group operates through two divisions
Ferries Division
Principal activities include the chartering of vessels both internally
and externally together with passenger and RoRo freight shipping
services under the Irish Ferries brand.
Container & Terminal Division
Principal activities include LoLo shipping activities under the
Eucon brand and the operation of two container terminals, Dublin
Ferryport Terminals (DFT) and Belfast Container Terminal (BCT),
within the two main ports on the island of Ireland, and following its
opening in January 2022 the Dublin Ferryport Inland Depot.
Our Group at a Glance
Strategic short sea RoRo routes
operated by Irish Ferries providing
seamless connections between Ireland,
Britain and Continental Europe for the
696,600 RoRo units carried in 2022.
Reliability underpinned by
major investment in tonnage
and maintenance of quality
assets ensuring the high levels of
schedule integrity demanded by
our customers.
Strategically located container terminals which handled
319,600 container units during 2022 in Ireland’s main ports
of Dublin and Belfast for shipping operators providing
services to key continental hub ports and onwards access to
global markets.
Connected container transport
services provided by Eucon,
transporting 322,600 teu (twenty
foot equivalent) in 2022 between
Ireland and 20 countries throughout
Europe by sea, road, rail and barge.
4
Irish Continental Group
Estonia
Latvia
Lithuania
Denmark
Sweden
Norway
Romania
Bulgaria
Serbia
Croatia
Italy
Slovenia
Hungary
Austria
Slovakia
Switzerland
Belgium
Czech Rep.
Poland
Germany
France
United
Kingdom
Ireland
Netherlands
Rosslare
Holyhead
Antwerp
Rotterdam
Pembroke
Dover
Cherbourg
Calais
Dublin
Belfast
Cork
Irish Ferries Ropax and
Cruise Ferry Services
Irish Ferries High Speed Ferry
Ports Served By Ferries:
Dublin, Rosslare, Holyhead,
Pembroke, Cherbourg, Dover, Calais
Group Geographical Coverage
Eucon Routes
Dublin Ferryport Terminals
Dublin Ferryport Inland Depot
Belfast Container Terminal
Ports Served By Container Ships:
Belfast, Dublin, Cork, Antwerp,
Rotterdam
Always on, always in touch, our
shipping and terminal services
operate 24/7, assisted by investment
in modern booking and tracking
systems to ensure our customers
can keep in touch over a variety of
platforms.
Key contributor to regional
tourism in all countries we offer
services, Irish Ferries carried
2,315,000 passengers and 573,400
cars during 2022 with research
indicating that car tourists stay
longer and travel outside the main
urban centres.
High standard on-board experience enjoyed by our Irish Ferries
customers encompasses quality food, beverage, entertainment and
accommodation services. Duty free shopping for passengers travelling
to and from Britain. Passengers are never out of touch with free
satellite wi-ﬁ services.
Fastest crossing on the Irish sea on board the Irish Ferries Dublin
Swift fastcraft service with a sailing time of two hours between
Dublin and Holyhead at speeds of up to 65 kph.
5
Strategic Report
2022 Annual Report and Financial Statements
2022
2021
17.5%
(0.1%)
2022
2021
€(171.1)m
€(142.2)m
2022
2021
33.6c
(2.7)c
2022
2021
33.6c
(2.6)c
2022
2021
€66.7m
€(0.2)m
2022
2021
€127.2m
€52.3m
2022
2021
€584.9m
€334.5m
Financial Highlights
Revenue
€584.9m +74.9%
2021: €334.5m
EBITDA*
€127.2m +143.2%
2021: €52.3m
Operating proﬁt
€66.7m
2021: €(0.2)m
Basic earnings per share
33.6c
2021: (2.6)c
Adjusted basic earnings per share*
33.6c
2021: (2.7)c
Net debt*
€(171.1)m (20.3%)
2021: €(142.2)m
Return on average capital employed*
17.5%
2021: (0.1)%
* The Group uses alternative performance measures “APMs” which are non-IFRS measures to monitor Group performance. Deﬁnitions and
reconciliation to IFRS measures are set out on pages 18 to 20.
6
Irish Continental Group
2022
2021
17.5%
(0.1%)
2022
2021
€(171.1)m
€(142.2)m
2022
2021
33.6c
(2.7)c
2022
2021
33.6c
(2.6)c
2022
2021
€66.7m
€(0.2)m
2022
2021
€127.2m
€52.3m
2022
2021
€584.9m
€334.5m
2022 2021 2020 2019
3
2018
€m €m €m €m €m
Summary extract of Income Statement
Revenue 584.9 334.5 277.1 357.4 330.2
Operating expenses and employee beneﬁts expense (457.7) (282.2) (235.0) (270.6) (261.8)
Depreciation and amortisation (60.5) (52.5) (41.3) (36.8) (22.1)
66.7 (0.2) 0.8 50.0 46.3
Non-trading items
1
- - (11.2) 14.9 13.7
Interest (net) (4.2) (3.9) (7.6) (3.4) (0.8)
Proﬁt / (loss) before taxation 62.5 (4.1) (18.0) 61.5 59.2
Taxation (2.7) (0.8) (1.0) (1.3) (1.4)
Proﬁt / (loss) for the year 59.8 (4.9) (19.0) 60.2 57.8
EBITDA 127.2 52.3 42.1 86.8 68.4
Per share information:
€cent €cent €cent €cent €cent
Earnings per share
-Basic 33.6 (2.6) (10.2) 31.7 30.4
-Adjusted basic
2
33.6 (2.7) (4.3) 23.8 23.1
Dividend per share (declared) 14.09 9.00 - 4.42 12.77
Shares in issue at year end:
m m m m m
-At year end 170.8 182.8 187.0 187.4 190.3
-Average during the year 177.8 186.7 187.0 189.8 190.0
Summary extract of Statement of Financial Position
€m €m €m €m €m
Property, plant and equipment, right-of-use and intangible assets 405.6 387.3 353.0 353.5 308.1
Retirement beneﬁt surplus 33.6 6.7 1.0 12.5 2.5
Other assets 134.7 117.9 224.9 225.8 203.7
Total assets 573.9 511.9 578.9 591.8 514.3
Equity capital and reserves 260.8 249.7 265.9 287.9 252.9
Retirement beneﬁt obligation 0.4 1.4 2.2 3.7 4.2
Other non-current liabilities 195.8 154.8 141.6 229.3 205.7
Current liabilities 116.9 106.0 169.2 70.9 51.5
Total equity and liabilities 573.9 511.9 578.9 591.8 514.3
Summary extract of Consolidated Statement of Cash Flows
Net cash inﬂow from operating activities 126.3 57.8 46.1 84.8 61.5
Net cash (outﬂow) / inﬂow from investing activities (72.7) (52.7) 7.8 (52.3) (158.8)
Net cash (outﬂow) / inﬂow from ﬁnancing activities (52.8) (117.4) (14.4) (46.5) 131.4
Cash and cash equivalents at the beginning of the year 38.5 150.4 110.9 124.7 90.3
Effect of foreign exchange rate changes (0.3) 0.4 - 0.2 0.3
Closing cash and cash equivalents 39.0 38.5 150.4 110.9 124.7
€m €m €m €m €m
Net debt (171.1) (142.2) (88.5) (129.0) (80.3)
Times Times Times Times Times
Net debt / EBITDA 1.2x 2.6x 2.1x 1.5x 1.2x
Gearing (net debt as a percentage of shareholders’ funds) 66% 57% 33% 45% 32%
1. Non-trading items are material non-recurring items that derive from events or transactions that fall outside the ordinary activities of the Group and
which individually, or, if of a similar type, in aggregate, are separately disclosed by virtue of their size or incidence.
2. Adjusted basic earnings per share exclude pension interest and non-trading items.
3 The ﬁgures for years prior to 2019 have not been restated for the effects of IFRS 16 which was adopted with effect 1 January 2019. The effect on the
Consolidated Income Statement for ﬁnancial year 2019 was to decrease operating expenses by €9.4 million, increase depreciation charges by €8.6
million, increase interest expenses by €1.0 million and a net reduction in proﬁt after tax of €0.2 million. The effect on the Consolidated Statement of
Financial Position was to increase assets by €35.3 million and liabilities by €35.5 million and reduce retained earnings by €0.2 million.
Five Year Summary
7
Strategic Report
2022 Annual Report and Financial Statements
2022 has been a year not just of
recovery, but of building for long-term
growth. With the Covid-19 pandemic
now behind us, we have turned our
full attention to maximising the
opportunities that have arisen for the
Group over the last two years. We come
out of the pandemic operations larger
than we had at its commencement,
and with a balance sheet that is as
strong as ever.
2022 saw the completion of our
planned ﬂeet investment for the Dover
– Calais route. The entry to this route
has been a long-term objective for the
Group and the expansion to a three
ship operation in the ﬁrst half of this
year allows us to compete effectively
on this route. The ending of pandemic
related travel restrictions alongside
the continued support of our freight
customers have driven revenues to a
record level.
We continued our investment in future
growth and sustainability throughout
2022. We acquired a further ferry, the
Isle of Inisheer, for the Dover – Calais
route bringing the total number of
vessels on the route to three. We also
added a further container vessel,
the CT Pachuca in March 2022. As
summarised below and detailed later
on in the Annual Report, we continued
to invest in a sustainable future for
the Group. Continued investment in
Chairman’s Statement
INVESTING FOR
GROWTH AND
A SUSTAINABLE
FUTURE
8
Irish Continental Group
the electriﬁcation of Dublin Ferryport
Terminal (DFT) took place, which will
lead to an achievable and material
reduction in emissions from the
container terminal based in Dublin
Port.
Alongside the recovery in our
passenger business during the year,
both our RoRo freight operations and
container and terminal operations
enjoyed another strong year of growth.
The Container and Terminal Division
had another exceptionally strong year,
with growth in both revenues and
proﬁtability. Ferries Division RoRo and
Tourism revenues both grew to record
levels driven primarily from the new
operation on the English Channel.
As in prior years, I would like to take this
opportunity to thank all our colleagues
who made these results possible. Our
colleagues, particularly those on the
front line, have ensured operations
continued throughout the Covid-19
pandemic. Those same colleagues
are essential to the strong recovery in
our business during the year and our
planned growth in the future.
Financial Outcome
The overall ﬁnancial outcome for the
Group was a proﬁt before tax of €62.5
million (2021: loss of €4.1 million) while
operating proﬁt was €66.7 million
(2021: loss of €0.2 million). EBITDA
generated was €127.2 million (2021:
€52.3 million) from total revenues of
€584.9 million (2021: €334.5 million).
EBITDA grew strongly versus the prior
year in our Ferries Division where
EBITDA was €95.7 million (2021: €23.2
million). The division saw increased
revenues from the recovery in our
tourism markets, continued growth
in the freight market, increased
charter revenue and the introduction
of a third vessel on the Dover – Calais
service which allowed us to compete
effectively on the route.
Performance in our Container and
Terminal Division improved with an
EBITDA of €31.5 million (2021: €29.1
million) through a continued focus
on cost optimisation and increases in
revenue.
In the prior year, our diversiﬁed
revenue streams and cost containment
measures protected our strong balance
sheet and allowed us to begin 2022
from a position of strength. The ending
of travel restrictions and strong growth
in our markets allowed us to build
on that strength in the current year
allowing us to both further invest in the
business and make material returns
to shareholders. Cash generated from
operations of €132.0 million (2021:
€67.0 million) together with net debt
increase of €28.9 million was used
to fund strategic capital expenditure
of €57.4 million and returns to
shareholders of €73.4 million via a
combination of dividends and share
buybacks. Net debt at year end was
€171.1 million (2021 €142.2 million).
Strategic Development
The Group has continued to progress a
number of key strategic developments
during the year.
In keeping with our progress over the
last number of years, we have placed
a signiﬁcant focus on enhancing our
approach to ESG and sustainability.
We have rolled out a number of
further initiatives across the Group and
continued initiatives that commenced
in prior years. These are discussed
later in the Sustainability and ESG
Report at pages 36 to 59, highlights
of which include the signiﬁcant
progress we have made in reducing
the emissions of our container terminal
operations. Continuing our expansion
and modernisation programme
at Dublin Port, 2022 was a year of
further material investment in this
business. With the investment we
have made and continue to make
in more environmentally friendly
terminal equipment, we are on course
to achieve a reduction in the emissions
from our container terminal operations
of 70 per cent by 2025 over the course
of the programme. With the progress
made to date and the expected future
investment, we expect to achieve
our target of net zero emissions in
our container terminal operations by
2030. We also continue to develop our
environmental reporting processes
in co-ordinating the collection of
relevant data and considering how
John B. McGuckian,
Chairman
9
Strategic Report
2022 Annual Report and Financial Statements
best this can be harnessed to affect
behaviours in order to drive further
improvement. This also provides the
basis for increasing transparency over
our sustainability credentials as set out
in the Sustainability and ESG Report.
We continue to engage with our
stakeholders to understand their key
pressing and material issues which we
will evaluate and implement in our day
to day business when appropriate.
We continued the expansion of
our Dover – Calais service with the
addition of a third vessel, the Isle of
Inisheer, during April 2022. This service
commenced by Irish Ferries in June
2021 has been well received by both
passengers and freight customers. The
introduction of the third vessel is the
culmination of our planned investment
for the route. With Irish Ferries now
offering up to 30 sailings per day on
the Dover – Calais service, we now offer
a genuine alternative for all customers
on the Channel route.
During 2022, the Group continued
its investment in the modernisation
and expansion at DFT. It took delivery
of and commissioned a further ﬁve
remote control semi-automated
electric rubber-tyred gantry cranes
(RTGs) bringing the total of electrically
powered units at DFT to nine. Six of
these RTG’s have been commissioned
and are in use, with a further three
due to be commissioned in 2023.
This will increase the total number of
electric gantries in our Dublin Terminal
from six to nine by the end of 2023,
continuing our transition to this more
environmentally efﬁcient mode of
operation. Following the successful
deployment of these environmentally
friendly electric rubber-tyred gantries
the Group has also ordered one new
electrically powered ship-to-shore
crane (STS) for delivery in 2023. The
deployment of these electric cranes
puts us on track to meet our emissions
reduction target of net zero emissions
by 2030. Furthermore, the delivery of
these cranes and the relocation of our
empty depot facility to the Dublin
Ferryport Inland Depot will increase
the capacity of DFT to meet the need
of the market.
Belfast Container Terminal (BCT)
operates the sole container terminal
at Belfast under a services concession
agreement with Belfast Harbour
Commissioners (BHC) at a 27 acre
site in Belfast Harbour. The £40
million re-investment project by
BHC commenced in 2020 and
continued into 2022. The project
included extensive civil works and
the delivery of two new ship-to-shore
gantry cranes along with eight new
electrically operated RTGs. As per the
investment in DFT, this investment is
essential to reducing emissions in our
terminal operations. The project is now
completed following the deployment
of the ﬁnal three RTGs in 2022.
The Group commenced operations at
the new Dublin Inland Port in January
2022, under a 20 year lease agreement
awarded following a public tender
process. Trading as Dublin Ferryport
Inland Depot (DFID), this facility
will be used for the remote storage,
maintenance and upgrade of empty
container boxes, releasing valuable
capacity for the handling of containers
in the port area. The Dublin Inland
Port is located adjacent to Dublin
Airport with direct access to the M50
Motorway (Dublin Ring Road) and
Dublin Port via the Port Tunnel.
Corporate Governance
The Board acknowledges the
importance of good corporate
governance practices. We have
developed a corporate governance
framework based on the application
of the principles and compliance with
the provisions of the UK Corporate
Governance Code (2018) and the Irish
Corporate Governance Annex. I report
on this framework in the Corporate
Governance Report on pages 78 to 90.
Chairman’s Statement
Continued
During the year, I led the annual
evaluation of Board performance of
which further details are set out in
the Corporate Governance Report on
page 86. As Chairman, I am satisﬁed
that the Board operates effectively
to ensure the long-term success of
the Group and that each Director
is contributing effectively and
demonstrating commitment to their
role.
Dividend and share buyback
Following the easing of travel
restrictions and the subsequent
increase in our tourism carryings, the
Directors declared and paid during
2022 a ﬁnal dividend of 9.00 cent per
ordinary share for 2021 and an interim
dividend of 4.64 cent per ordinary share
for 2022. Dividends paid during the
year totalled €24.2 million. Payment of
dividends had been suspended during
2020 and 2021 due to the effects of
the Covid-19 travel restrictions on the
ﬁnancial performance of the Group.
During the year, the Company bought
back a total of 12.0 million shares which
were cancelled. The total consideration
paid for these shares was €49.2 million
(2021: €19.8 million). The Directors are
proposing a ﬁnal dividend in respect of
2022 of 9.45 cent per share subject to
shareholder approval at the AGM on 11
May 2023, which will be paid on 9 June
2023 to shareholders on the register at
close of business on 19 May 2023.
Outlook
We have experienced strong growth
in car and RoRo freight volumes in
2022, due partly to the unwinding
of Covid-19 restrictions and also due
to the expansion of our services on
the Dover – Calais route. Container
volumes were down slightly as they
are more impacted by the slowdown
in world growth and international
trade volumes.
10
Irish Continental Group
In the period from 1 January 2023 to 4
March 2023, Irish Ferries carried 50,000
cars, an increase of 42.0% over the
same period in the prior year. While
these increases are encouraging, it is
over a seasonally less signiﬁcant time
of the year for passenger travel. We
do see an opportunity for material
growth in our passenger business with
the expected return to pre-pandemic
levels.
RoRo volumes in the Ferries Division
have also started strongly in 2023.
Overall, Irish Ferries RoRo volumes
are up 21.1% on the same period in the
prior year to 111,900 RoRo units. We
expect that 2023 sees a continuation
of the trend of freight customers
returning to the landbridge and we are
hopeful that the Windsor Framework
will remove the distortion from the
non-implementation of the Northern
Ireland Protocol. We welcome recent
calls for the establishment of Green
lanes on ferry routes between the UK
and the Republic of Ireland, for trafﬁc
destined for Northern Ireland. This will
ensure freight moves on and off the
island of Ireland in the most efﬁcient,
timely and environmentally friendly
manner.
The Container and Terminal Division
has seen a reduction in containers
shipped in the period from 1 January
2023 to 4 March 2023 of 4.4%. The
number of terminal lifts has seen a
similar drop of 5.6% in the same period.
This is indicative of a slowdown in the
global economy and is not unexpected.
However, the recent and ongoing
investment in capacity expansion and
plant modernisation at our container
terminals will provide a platform
for both growth and more efﬁcient
operations at our Dublin terminal. This
will be further aided by the operations
at our new Dublin Inland Port facility
which commenced during 2022.
We note the ever-increasing
expectations and regulatory
requirements to reduce the effects of
our operations on the environment.
While the Group acknowledges that
its operations have an inevitable
impact on the environment it does
so in the knowledge that it operates
essential services from the island of
Ireland, which was clearly evident
during the worst of the Covid-19
lockdowns. Our operations remain
the most environmentally sustainable
form of transport for facilitating trade
and movement of people on and off
the island. Nevertheless, reducing
our impact on the environment
is embedded in the Group’s DNA
through maximising the effectiveness
and efﬁciency in our operations while
continuing to invest in appropriate
technologies to reduce our impact
on the environment. We remain
committed to our decarbonisation
targets set out in the Sustainability and
ESG Report.
While there is some uncertainty
around economic growth rates, we
look forward to continued growth
during 2023 through the leveraging
of our recent investments and the
continued support of all customers.
John B. McGuckian,
Chairman
8 March 2023
11
Strategic Report
2022 Annual Report and Financial Statements
Key Financial Highlights
EBITDA
€127.2m +143.2%
2021: €52.3m
Operating proﬁt
€66.7m
2021: €(0.2)m
Return on average capital employed
17.5% +17.6pts
2021: (0.1)%
Adjusted basic earnings per share
33.6c
2021: (2.7)c
Free cash ﬂow before strategic
capital expenditure
€108.0m +143.8%
2021: €44.3m
Chief Executive’s Review
A YEAR OF
PROGRESS
AND RECORD
GROWTH
12
Irish Continental Group
2022 Performance
2022 was a year of strong recovery in
our business and record growth. As we
exited the restrictions of the Covid-19
pandemic, we have beneﬁted from
the investment decisions made over
the last two years. The investment
in the new Dover – Calais route have
allowed us to materially grow our
ferries business. Our investment in
container ships allowed us to beneﬁt
from the strong container ship market
during 2022. We also continued
the modernisation and expansion
programme in our container terminals
which has allowed us to offer our
customers a more efﬁcient and
sustainable service.
The Group made a proﬁt before tax of
€62.5 million (2021: loss of €4.1 million).
Operations were cash generative at
€126.3 million (2021: €57.8 million) and
the Group maintained a strong balance
sheet.
The performance in the Ferries
Division saw a signiﬁcant increase in
EBITDA to €95.7 million (2021: €23.2
million). Partially reﬂective of returning
passenger volumes following removal
of travel restrictions, the level of
underlying growth is encouraging and
justiﬁes the decisions and investment
we have made to grow both our ferry
and chartering operations.
Performance in the Container and
Terminal Division again grew at an
impressive rate during the year.
EBITDA in this division increased
by 8.2% to €31.5 million (2021: €29.1
million). This was achieved despite a
reduction in volumes in both Eucon
and the Terminals. Revenue grew by
27.2% to €221.5 million (2021: €174.0
million).
Eamonn Rothwell,
Chief Executive Ofﬁcer
Financial Position
The Group ended the year in a strong
position with equity attributable to
shareholders increasing by €11.1 million
to €260.8 million, which was after total
returns made to shareholders of €73.4
million. The strong recovery against
the previous two ﬁnancial years saw
the resumption of dividend payments,
with €24.2 million paid. In addition,
the Group bought back 12.0 million
shares which were cancelled, for a total
consideration of €49.2 million.
Net debt at year end was €171.1 million
compared to net debt of €142.2 million
in the prior year. This represents a
net debt / EBITDA leverage of 1.2
times under banking covenant
deﬁnitions. The increase in net debt
together with cash generated from
operations, was used to fund strategic
capital expenditure of €57.4 million,
dividends paid of €24.2 million and
share buybacks of €49.2 million during
the year. Year end net debt of €171.1
million comprised gross borrowings
of €167.7 million (2021: €123.1 million),
lease obligations of €42.4 million
(2021: €57.6 million) less gross cash
balances of €39.0 million (2021: €38.5
million). Right-of-use lease obligations
are excluded for banking covenant
purposes.
Strategic Performance
As Chief Executive, a key responsibility
is to drive future proﬁtable and
sustainable growth of the Group. I’m
happy to report that on a strategic level
signiﬁcant progress was made during
2022 in building on the progress made
in 2021 and preparing the Group for
future long term growth opportunities.
The Group continued its investment in
the Dover – Calais service, which had
commenced in June 2021. The Isle of
Inisheer was introduced as the third
vessel on the route during April 2022.
The addition of a third ship onto the
route for Irish Ferries has strengthened
our position on the route and ensures
we are a viable alternative to the other
operators on the route.
13
Strategic Report
2022 Annual Report and Financial Statements
Operations at our new inland container
depot commenced in January 2022.
This is an important development for
the Group as we look to expand our
container operations in Dublin in the
knowledge of the scarcity of space to
expand in the core Dublin Port area.
This allows for increased utilisation at
our terminal at Dublin Port facilitating
efﬁcient imports and exports.
The Group’s management continually
seeks investment opportunities which
meet the Group’s stringent return
hurdles both in terms of return and risk
appetite, a policy which is promoted
at all levels within the organisation.
These investments are funded through
a combination of debt and cash
generation from existing activities.
Strategy and the Environment
The Group is conscious that its
activities have an environmental
impact but is happy to note that
reducing that impact aligns with
our overall strategy. The Group
has continued with the signiﬁcant
investments in installing exhaust gas
cleaning systems (EGCS). A further
EGCS unit was installed on one of our
container vessels while an EGCS was
also installed on the Isle of Inishmore
in early 2023. The programme for
the electriﬁcation of heavy plant at
our container terminals continued in
2022, including the commissioning
of two additional electric cranes at
Dublin Ferryport Terminal. Three
further electric cranes were also
delivered during 2022 and will be
commissioned during 2023. Both of
these investments, while reducing
harmful emissions, also bring health
and safety beneﬁts to our operatives
and align with the strategic objective
of delivering sustained and proﬁtable
growth. Further details of our work in
this space during the year are detailed
in our Sustainability and ESG Report at
pages 36 to 59.
The Group currently collects various
data related to its environmental
impact of its operations for external
reporting purposes. In recognition
of the powerful effect that data
can have on creating awareness of
individual actions, the Group collates
and harnesses this data as a tool to
promote environmental responsibility
within the workforce. While we
recognise there is and always will be
additional work to do in this space, we
consider the ongoing improvement
and progress together with the ﬁrm
foundation established from prior years
will enable the further development of
our approach to sustainability, ESG and
strong reporting in the years ahead.
However, for certain aspects the
Group will require the shipping
sector as a whole to work together.
This particularly relates to global
regulation under the auspices of the
International Maritime Organisation
setting common standards and key
Chief Executive’s Review
Continued
DOVER – CALAIS SERVICE WILL
GIVE US AN EXCELLENT PLATFORM
TO CONTINUE TO GROW
14
Irish Continental Group
equipment suppliers adopting the
latest technologies. As a small operator
in a global market, the Group will
only apply proven technologies and
we will recover the costs of same,
either by increased efﬁciencies or by
passing associated costs through to
customers. The International Maritime
Organisation and the European Union
decarbonisation goals for the Maritime
industry are set out and discussed in
our Sustainability and ESG Report on
pages 36 to 59.
The Group is aware that our
stakeholders require us to be
environmentally focused and the
Group is committed to continuous
improvement in both the big and small
things that we do. Freight remains
the backbone of the local Irish and
European economies. Our efforts
in greening the maritime industry
is a vital part of moving the wider
European economy to a sustainable
footing in the face of the rising
challenge from climate change.
Stakeholders
The Group’s performance is dependent
on the support of our customers,
suppliers and employees. I would
like to thank all our customers for
their support during the year. We will
continue to work with our customers to
meet their expectations into the future.
Our suppliers are key to our ability
to deliver quality services to our
customers. We continually work with
our suppliers whether they be port
operators, contracted service providers
or product suppliers to improve
efﬁciencies and quality. We appreciate
the co-operation and ﬂexibility
achieved in delivering our 24/7 services.
As in prior years, I would like to take this
opportunity to thank our employees
for their continued dedication to the
operation of our services that are
essential to the island of Ireland. It is
their knowledge and dedication to
customer service that drives the future
success of the Group.
Outlook
I look forward in 2023 to a continuation
of the positive trends we saw
throughout the Group in 2022 that
saw both operational and ﬁnancial
progress across all the divisions in the
Group. The work and the investment
over the last number of years gives
us an exciting platform for long-
term sustainable growth in all of our
divisions. As always, we will continue to
seek out improvement and investment
opportunities for our longer-term
success.
Eamonn Rothwell,
Chief Executive Ofﬁcer
8 March 2023
15
Strategic Report
2022 Annual Report and Financial Statements
How We Create Value
Ferries Division
Multipurpose ferry services carrying both passengers and
RoRo freight on strategic short sea routes.
OUR
PURPOSE
Revenue
€399.9m
64% of Group *
Capital Employed
€317.7m
83% of Group
EBITDA
€95.7m
75% of Group
Ireland Britain
Britain France
Ireland France
Operating a ﬂeet of eight ferries
(including two chartered-in)
Capacity to operate up to
47 sailings daily
8 LoLo chartered-out vessels
Customer type
Freight
+ Haulage
Leisure
Breaks
Key strategic developments
over the last 5 years
W.B. Yeats
The introduction of the WB Yeats in 2018 has
met our expectations both operationally and
ﬁnancially. The ﬂexibility, reliability and capacity
of the vessel has been critical in allowing
the Ferries Division to successfully navigate
constantly changing trade ﬂows due to the twin
effects of the UK exit from the European Union
and the Covid-19 pandemic.
*inclusive of inter-segment revenue
16
Irish Continental Group
Container &
Terminal Division
Direct container shipping services between Ireland
and Continental Europe together with the operation
of container terminals at both Dublin and Belfast.
We will create value for our
stakeholders by anticipating our
customers’ needs and matching
their requirements with superior
services through constant
innovation and the rapid
application of technology.
Revenue
€221.5m
36% of Group *
EBITDA
€31.5m
25% of Group
Capital Employed
€66.9m
17% of Group
Container ﬂeet capacity
8,900 TEU
Strategically located
container terminals
Customer type
Freight
+ Haulage
Dover to Calais route
Commencement of the Irish Ferries
service on the Dover – Calais route in 2021.
Introduction of a third ship onto the route
in during 2022 allowing us to offer 30
sailings per day to our customers.
Dublin Ferryport Inland
Depot (DFID)
Opening of our new terminal in the
Dublin Ferryport Inland Depot in January
2022. The inland depot is strategically
located to allow easy access to Ireland’s
motorway system. This will allow ancillary
services to be provided outside of the
Dublin Port area, therefore increasing
capacity in the Dublin Ferryport Terminal.
Terminals Investment
Continued investment in decarbonisation of
Dublin and Belfast Terminals. During 2022,
the Group took delivery of a further ﬁve
electric RTGs, Of the total of nine electric
RTG’s, six are fully commissioned and in use,
with a further three to be commissioned in
2023. The Group has also ordered one new
electrically powered ship-to-shore crane for
delivery in 2023.
*inclusive of inter-segment revenue
17
Strategic Report
2022 Annual Report and Financial Statements
The Group uses a set of headline Key Performance Indicators (KPIs) to measure the performance of its operations and of the
Group as a whole which are set out and deﬁned below.
Certain ﬁnancial measures used are not deﬁned under International Financial Reporting Standards (IFRS). Presentation
of these Alternative Performance Measures (APMs) provides useful supplementary information which, when viewed in
conjunction with the Group’s IFRS ﬁnancial information, allows for a more meaningful understanding of the underlying
ﬁnancial and operating performance of the Group. These non-IFRS measures should not be considered as an alternative to
ﬁnancial measures as deﬁned under IFRS. Descriptions of the APMs included in this report are disclosed below.
APM Description Beneﬁt of APM
EBITDA EBITDA represents earnings before interest, tax,
depreciation, impairment, amortisation and
non-trading items.
Eliminates the effects of ﬁnancing and
accounting decisions to allow assessment of the
proﬁtability and performance of the Group.
EBIT EBIT represents earnings before interest, tax
and non-trading items.
Measures the Group’s earnings from ongoing
operations.
Free cash
ﬂow before
strategic capital
expenditure
Free cash ﬂow comprises operating cash ﬂow
less capital expenditure before strategic capital
expenditure which comprises expenditure on
vessels excluding annual overhaul and repairs,
and other assets with an expected economic
life of over 10 years which increases capacity or
efﬁciency of operations.
Assesses the availability to the Group of funds
for reinvestment or for return to shareholders.
Net debt Net debt comprises total borrowings plus lease
liabilities less cash and cash equivalents.
Measures the Group’s ability to repay its debts if
they were to fall due immediately.
Leverage The debt leverage ratio is calculated per
the terms of our lending agreement and
is calculated as bank debt, excluding lease
liabilities, expressed as times EBITDA. The
calculation is set out at note 21 to the Financial
Statements.
Provides an indication of the Group’s borrowing
capacity.
Adjusted Basic
Earnings Per
Share (EPS)
EPS is adjusted to exclude the non- trading
items and net interest (income) / cost on
deﬁned beneﬁt obligations.
Directors consider Adjusted Basic EPS to be a
key indicator of long-term ﬁnancial performance
and value creation of a public listed company.
ROACE ROACE represents return on average capital
employed. Operating proﬁt (before non-
trading items) expressed as a percentage of
average capital employed (consolidated net
assets, excluding net (debt) / cash, retirement
beneﬁt surplus / (obligation) and asset under
construction net of related liabilities.
Measures the Group’s proﬁtability and the
efﬁciency with which its capital is employed.
Pre-IFRS 16 Use of the term Pre-IFRS 16 denotes that the
APM or IFRS measure has been adjusted to
remove the effects of the application of IFRS 16:
Leases.
Measurement of covenants for bank facility
purposes
Non-Financial KPI Description Beneﬁt of non-ﬁnancial KPI
Schedule
integrity
Schedule integrity (the number of sailings
completed versus scheduled sailings).
Schedule integrity is an important measure for
Irish Ferries’ vessels as it reﬂects the reliability
and punctuality of our service. This measure is
meaningful to both our passenger and freight
customers alike in facilitating them and their
cargo to arrive on time at their ﬁnal destination.
Key Performance Indicators and Summary of 2022 Results
18
Irish Continental Group
The following table sets forth the reconciliation from the Group’s operating proﬁt (EBIT) for the ﬁnancial year to EBITDA, free
cash ﬂow and net debt. See note 11 to the Consolidated Financial Statements for the calculation of Basic and Adjusted Basic
EPS.
Cash Flow
2022
€m
2021
€m
Operating proﬁt / (loss) (EBIT) 66.7 (0.2)
Depreciation and amortisation (note 9) 60.5 52.5
EBITDA 127.2 52.3
Working capital movements (note 33) 1.2 11.7
Retirement beneﬁt scheme movements (note 33) 1.1 0.6
Share-based payments expense (note 30) 3.0 1.3
Other (0.5) 1.1
Cash generated from operations 132.0 67.0
Interest paid (4.0) (8.4)
Tax paid (1.7) (0.8)
Maintenance capital expenditure (18.3) (13.5)
Free cash ﬂow before strategic capital expenditure 108.0 44.3
Strategic capital expenditure (57.4) (41.7)
Free cash ﬂow after strategic capital expenditure 50.6 2.6
Proceeds on disposal of property, plant and equipment 3.0 2.8
Share buybacks (49.2) (19.8)
Dividends paid (24.2) -
Settlement of employee equity plans through market purchases (2.9) (1.0)
Proceeds on issue of ordinary share capital 0.1 0.7
Net cash ﬂows (22.6) (14.7)
Opening net debt (142.2) (88.5)
Recognition of right-of-use asset lease obligations (6.2) (38.5)
Translation / other (0.1) (0.5)
Closing net debt (171.1) (142.2)
The following table sets forth the reconciliation from the Group’s ROACE calculation:
ROACE
2022
€m
2021
€m
Equity 260.8 249.7
Net debt 171.1 142.2
Asset under construction (including prepayment deposits) (14.1) (9.2)
Retirement beneﬁt obligations 0.4 1.4
418.2 384.1
Retirement beneﬁt surplus (33.6) (6.7)
Capital employed 384.6 377.4
Average capital employed 381.0 364.9
Operating proﬁt / (loss) 66.7 (0.2)
ROACE 17.5% (0.1%)
19
Strategic Report
2022 Annual Report and Financial Statements
The following table provides a reconciliation of the Group’s net debt position:
Net debt
2022
€m
2021
€m
Cash and cash equivalents (note 18) 39.0 38.5
Non-current borrowings (note 21) (160.4) (115.8)
Current borrowings (note 21) (7.3) (7.3)
Non-current lease obligations (note 22) (30.7) (37.5)
Current lease obligations (note 22) (11.7) (20.1)
Net debt (171.1) (142.2)
The calculation and performance of KPIs and a summary of the key ﬁnancial results for the year is set out in the table below.
A detailed review of the divisional operations is set out in the Strategic Report on pages 22 to 30.
Ferries Container & Terminal Inter- Segment Group
2022 2021 2022 2021 2022 2021 2022 2021
Comment €m €m €m €m €m €m €m €m
Revenue 399.9 175.5 221.5 174.0 (36.5) (15.0) 584.9 334.5
EBITDA 1 95.7 23.2 31.5 29.1 - - 127.2 52.3
Depreciation and amortisation (49.3) (40.6) (11.2) (11.9) - - (60.5) (52.5)
Operating proﬁt / (loss) (EBIT) 2 46.4 (17.4) 20.3 17.2 - - 66.7 (0.2)
Finance costs (note 7) (3.1) (2.0) (1.2) (2.0) - - (4.3) (4.0)
Finance income (note 6) 0.1 - - 0.1 - - 0.1 0.1
Proﬁt / (loss) before tax 43.4 (19.4) 19.1 15.3 - - 62.5 (4.1)
ROACE 3 14.9% (5.9)% 29.3% 25.5% 17.5% (0.1)%
EPS: (note 11)
EPS Basic 4 33.6 (2.6)c
EPS Adjusted Basic 4 33.6 (2.7)c
Free cash ﬂow 5 108.0 44.3
Comment:
Financial KPIs
1. EBITDA: Group EBITDA for the year increased by 143.2%, to €127.2 million (2021: €52.3 million). The increase in underlying
EBITDA was primarily due to due to increased revenues and a continued focus on cost optimisation. EBITDA in the Ferries
Division increased by 312.5%, to €95.7 million, while the Container and Terminal Division increased by 8.2%, to €31.5 million.
2. EBIT: Group EBIT for the year increased to €66.7 million (2021: €(0.2) million). The Ferries Division increase in underlying
EBIT was €63.8 million, primarily due to a full year of trading without Covid-19 restrictions, while the Container and
Terminal Division was €3.1 million higher, as a result of higher revenues.
3. ROACE: The Group achieved a return on average capital employed of 17.5% (2021: (0.1)%). The Ferries Division achieved a
return on average capital employed of 14.9% (2021: (5.9)%) while the Container and Terminal Division achieved 29.3% (2021:
25.5%).
4. EPS: Basic EPS was 33.6 cent compared with (2.6) cent in 2021. Adjusted Basic EPS (before net interest (income) / cost on
deﬁned beneﬁt obligations) was 33.6 cent compared with (2.7) cent in 2021.
5. Free cash ﬂow before strategic capital expenditure: The Group’s free cash ﬂow before strategic capital expenditure was
€108.0 million (2021: €44.3 million). The increase in free cash ﬂow is mainly due to the increase in EBITDA. Free cash ﬂow
before strategic capital expenditure is a meaningful measure of cash generated for investment or return to shareholders.
Non-Financial KPIs
Schedule integrity: The Ferries Division delivered 96% of scheduled sailings across all services during 2022 (2021: 96%).
Key Performance Indicators and Summary of 2022 Results
Continued
20
Irish Continental Group
21
Strategic Report
2022 Annual Report and Financial Statements
France
United
Kingdom
Ireland
Irish Ferries Ropax and
Cruise Ferry Services
Irish Ferries High Speed Ferry
Rosslare
Holyhead
Pembroke
Dover
Cherbourg
Calais
Dublin
The Ferries Division
The Ferries Division operates multipurpose ferry
services carrying both passengers and RoRo freight
on strategic short sea routes between Ireland and
Britain, Britain and France and direct ferry services
between Ireland and France. The division also engages
in chartering activities.
The ferry services trade under the Irish
Ferries brand. Irish Ferries operates
on four routes utilising a ﬂeet of eight
vessels, six of which are owned and two
of which are chartered-in.
In addition to the modern ﬂeet,
Irish Ferries retains rights to access
Fleet Summary
Operated by Ferries Division
Vessel Type Employment
Ulysses Cruise ferry Dublin – Holyhead
Isle of Inishmore Cruise ferry Dover – Calais
Isle of Innisfree Cruise ferry Dover – Calais
Blue Star 1 (chartered-in) Cruise ferry Rosslare - Pembroke
Epsilon (chartered-in) Ropax Dublin – Holyhead / Cherbourg
Dublin Swift High speed ferry Dublin – Holyhead
W.B. Yeats Cruise ferry Dublin – Holyhead / Cherbourg
Isle of Inisheer Ropax Dover – Calais
Chartered out by Ferries Division
Vessel Type Employment
Ranger LoLo container vessel Charter – 3rd Party
Elbfeeder LoLo container vessel Charter – Inter-Group
Elbtrader LoLo container vessel Charter – Inter-Group
Thetis D LoLo container vessel Charter – 3rd Party
CT Daniel LoLo container vessel Charter – 3rd Party
CT Rotterdam LoLo container vessel Charter – Inter-Group
Elbcarrier LoLo container vessel Charter – Inter-Group
CT Pachuca LoLo container vessel Charter – Inter-Group
appropriate berthing times at key
ports allowing Irish Ferries to facilitate
its customers’ preferred sailing times.
The division also owns eight container
vessels, following the purchase of the
CT Pachuca during 2022, which are
time chartered at year end.
22
Irish Continental Group
France
United
Kingdom
Ireland
Irish Ferries Ropax and
Cruise Ferry Services
Irish Ferries High Speed Ferry
Rosslare
Holyhead
Pembroke
Dover
Cherbourg
Calais
Dublin
M50
M1
M2
M3
M4
M7
M50
M50
M50
M50
M50
M50
M50
M11
Dublin Port
Holyhead
Cherbourg
Best Ferry
Company
awarded by the Irish Travel
Trade News Awards and Irish
Travel Agents Association.
Best Ferry
or Fixed Link
Operator
in the Group Leisure &
Travel awards in the UK.
23
Strategic Report
2022 Annual Report and Financial Statements
Revenue in the division was 127.9%
higher than the previous year at €399.9
million (2021: €175.5 million). Revenue
in the ﬁrst half of the year increased
by 167.0% to €167.9 million (2021: €62.9
million), while in the second half
revenue increased by 106.0%, to €232.0
million (2021: €112.6 million). EBITDA
increased to €95.7 million (2021: €23.2
million) while EBIT was €46.4 million
compared with €(17.4) million in 2021.
Fuel costs were €104.6 million, an
increase of €61.5 million on the prior
year. The division achieved a return on
capital employed of 14.9% (2021: (5.9%)).
In total, Irish Ferries operated 13,642
sailings in 2022 (2021: 6,331), the
increase primarily due to increased
sailings on the Dover – Calais route.
2022 Overall Ferries Division
Performance
Revenue
€399.9m +127.9%
2021: €175.5m
EBITDA
€95.7m +312.5%
2021: €23.2m
Operating proﬁt
€46.4m
2021: €(17.4)m
ROACE
14.9% +20.8pts
2021: (5.9%)
The Ferries Division
Continued
Car and Passenger Markets
It is estimated that the overall car
market
1
, on the routes that we
operate (Republic of Ireland to UK/
France and the Dover Straits), grew
by approximately 147.2% in 2022 to
4,131,000 cars. While encouraging,
this level of car carryings is still 23.9%
behind 2019 levels.
Irish Ferries’ car carryings during the
year were increased over the previous
year by 181.6% to 573,400 cars (2021:
203,600 cars). The increase in carryings
versus 2021 levels is primarily due to the
lifting of Covid-19 travel restrictions and
the expansion to a three ship service
on the Dover – Calais route.
The total sea passenger market
(i.e. comprising car, coach and foot
passengers on the Republic of Ireland
to UK/France and the Dover Straits)
24
Irish Continental Group
increased by 95.5% on 2021 to a total
of 16.6 million passengers. Irish Ferries’
passenger numbers carried increased
by 246.7% at 2,315,000 (2021: 667,800).
The Ferries Division delivered 96% of
scheduled sailings in 2022 compared
with 96% in the previous year across all
services.
In 2022, with a return to more normal
travel patterns, Irish Ferries focused
its passenger messaging on its brand
platform “Sea Travel Differently” which
not only highlighted the service and
hospitality Irish Ferries offers, but also
the beneﬁts of sea travel versus air
travel, in a year in which many airports
suffered signiﬁcant security delays
and airline operators had high levels
of cancellations. The new Dover-Calais
route continued to be a key focus for
marketing and promotions activity in
2022, alongside support for our legacy
routes. There was increased use of
digital channels for our promotional
communication including paid
search, digital audio-visual and digital
audio including podcasts, in line
with consumer media consumption
evolution. In October 2022, market
research indicated that (in addition
to our ongoing brand strength in the
Irish market), for the British market 53%
of people were aware of Irish Ferries
services, and 14% would consider
using our Dover – Calais service in the
coming year
2
.
There was strong growth in the
number of visits to our website, as
well as in the corresponding number
of bookings transacted in the year.
Our social following increased across
all the main platforms including
Twitter, Facebook, and Instagram,
with fans and followers engaging with
our content and offers. AI enabled
automated web chat was maximised
to handle routine passenger enquiries
more efﬁciently, and towards the end
of the year was blended with live chat
for optimum customer service.
Irish Ferries continued to work
throughout the year with state tourism
agencies in Ireland (Tourism Ireland
and Fáilte Ireland) as well as in our
tourism source markets for Wales
(Visit Wales) and France (Normandy
Tourism and Cotentin Tourism). After
a two-year absence, Irish Ferries
returned as a headline sponsor of
the four-day programme for the St.
Patrick’s festival and the return of the
parade to the streets of Dublin was
important both in marking the kick-off
of the tourism season and the return
generally to routine tourism activities.
We participated in a collaborative
“press the green button” campaign
with Tourism Ireland in the British and
French markets as part of ongoing
efforts to encourage tourists to return
to Ireland, following the very restrictive
Covid-19 conditions in 2021.
1. (Market ﬁgures source: Passenger Shipping Association and Cruise & Ferry)
2. (Inclusion in an online nationally representative omnibus survey carried out amongst all adults 16+ by a third-party market research company)
25
Strategic Report
2022 Annual Report and Financial Statements
Irish Ferries is proud to be selected
to receive multiple awards from
travel trade professionals in our key
Irish and UK markets. Our numerous
consecutive wins reﬂect our focus
on delivering excellence in customer
service and our warm welcome and
wonderful hospitality on-board. We
constantly build on this and actively
seek feedback from our customers
via social media and surveys to
continuously improve our service
offering and facilities on-board
our vessels. This commitment to
outstanding service was once again
recognised in 2022 with the following
awards which were a welcome
acknowledgement of the quality
experience we offer:
 Ireland:
- ‘Best Ferry Company’ awarded by
the Irish Travel Trade News Awards
for the 15
th
consecutive time.
- 'Best Ferry Company' awarded by
the Irish Travel Agents Association
for the 11
th
consecutive time.
 United Kingdom:
- ‘Best Ferry or Fixed Link Operator’
in the Group Leisure & Travel
awards for the 4
th
consecutive
year. This accolade was particularly
important as we extended our
Dover-Calais service to groups for
the ﬁrst time in 2022.
Duty Free Sales
With the introduction of duty-free
sales for services to/from the UK since
2021, expanding and promoting our
duty-free offering has been a key focus
on three routes (Dublin-Holyhead,
Rosslare-Pembroke and Dover-Calais),
as we returned to promoting travel.
For all on-board sales, passengers were
able to shop online and reserve items
for “click and collect” once on-board.
The Ferries Division
Continued
Our duty-free prices were competitive
at around 50% lower than high street
prices, and duty-free stores and their
ranges continue to be improved.
RoRo Freight
The RoRo freight market* between
the Republic of Ireland to the UK
and France and the Dover Straits fell
slightly in 2022. The total number of
trucks and trailers decreased by 1.1%, to
approximately 4,389,700 units.
Irish Ferries’ freight carryings, at
696,600 freight units (2021: 290,000
freight units), increased by 140.2%
versus the prior year. The increased
carryings over market performance
was enabled through the additional
capacity of the three vessel service on
the Dover – Calais route.
* (Market ﬁgures source: Passenger Shipping Association and Cruise & Ferry)
26
Irish Continental Group
Irish Ferries has also been proactive
in the online environment for freight
customers. In recent years high-
quality mobile options have been
developed, alongside the traditional
desktop, whereby customers can
access our freight reservations systems
with ease. This has facilitated an
increasing proportion of our business
being booked via our website, www.
irishferriesfreight.com.
Chartering
The Group continued to charter a
number of vessels to third parties
during 2022. Overall external charter
revenues were €17.2 million in 2022
(2021: €8.1 million). Of our eight
owned LoLo container vessels, ﬁve
are currently on year-long charters
to the Group’s container shipping
subsidiary Eucon on routes between
Ireland and the Continent whilst three
are chartered to third parties. The
Oscar Wilde continues on a bareboat
hire purchase agreement with MSC
Mediterranean Shipping Company SA.
Outlook
We look forward to further growth on
all of our routes and taking advantage
of the operational expansion
undetaken over the last number of
years. We are conﬁdent that the trends
seen in tourism markets in 2022 will
continue in the current year and allow
us to reach and eventually overtake
pre-pandemic levels. With a full year
well established three ship operation
on our Dover – Calais route, we expect
continued growth in our freight
carryings on this route.
We are planning for a continued return
of trafﬁc from the direct continental
routes to the landbridge and are
hopeful this will be helped with the
implementation of the Windsor
Framework.
27
Strategic Report
2022 Annual Report and Financial Statements
Estonia
Latvia
Lithuania
Denmark
Sweden
Norway
Romania
Bulgaria
Serbia
Croatia
Italy
Slovenia
Hungary
Austria
Slovakia
Switzerland
Belgium
Czech Rep.
Poland
Germany
France
United
Kingdom
Ireland
Netherlands
Antwerp
Rotterdam
Dublin
Belfast
Cork
Eucon Geographical Coverage
Eucon Routes
Dublin Ferryport Terminals
Dublin Ferryport Inland Depot
Belfast Container Terminal
Ports Served by Container Ships:
Belfast, Dublin, Cork, Antwerp,
Rotterdam
The Container and Terminal Division
The Container and Terminal division provides direct
container shipping services between Ireland and
continental Europe together with the operation of
container terminals at both Dublin and Belfast.
The division’s intermodal shipping
line Eucon is the market leader in the
sector, operating a core ﬂeet of six
chartered container vessels ranging
in size from 750 – 1,000 teu capacity,
connecting the Irish ports of Dublin,
Cork and Belfast with the continental
ports of Rotterdam and Antwerp.
Eucon is offering feeder services to the
Deep Sea Lines and a full intermodal
service where Eucon deploys 4,600
owned and leased containers
(equivalent to 8,900 teu) of varying
types thereby offering a full range of
services from palletised, project and
temperature controlled cargo to Irish
and European importers and exporters
from all points on the island of Ireland
to destinations across 20 European
countries. Door to door services are
contracted to third parties utilising a
variety of transport modes including
road, rail and barge.
Dublin Ferryport Terminals (DFT)
operates its Dublin Port container
facility from a leasehold facility with
remaining lease terms of between 73
and 99 years, covering over 34 acres.
The facilities comprise 480 metres
of berths for container ships, with a
depth of nine to eleven metres and is
equipped with three modern Liebherr
gantry cranes (40 tonne capacity) and
eleven rubber-tyred gantries (40 tonne
capacity) on a strategically located site
within three kilometres of Dublin city
centre and within one kilometre of the
Dublin Port Tunnel, providing direct
access to Ireland’s motorway network.
DFT now operates six electrically
operated rubber-tyred gantries
incorporating latest technologies to
allow for remote operation. Three more
of these cranes have been delivered
and will be commissioned in 2023.
The delivery of these cranes and the
relocation of our empty depot facility
in January 2022 to our new Dublin
Ferryport Inland Depot located at the
new Dublin Inland Port will increase
the capacity of DFT to meet the needs
of the market.
Belfast Container Terminal (BCT)
operates the sole container terminal
at Belfast under a services concession
agreement with Belfast Harbour
Commissioners (BHC) at a 27 acre
site in Belfast Harbour. This services
concession agreement currently
extends to 2026. BHC are currently
completing a £40 million re-
investment project which includes
extensive civil works and the delivery
of two new Liebherr gantry cranes and
eight new electrically operated RTGs
incorporating the latest technologies
to allow for remote operation similar
to the RTGs operated at DFT. Civil
works have continued on the building
of two new RTG stacks and a further
three RTGs are scheduled to be
commissioned in the second half of
2023.
28
Irish Continental Group
Estonia
Latvia
Lithuania
Denmark
Sweden
Norway
Romania
Bulgaria
Serbia
Croatia
Italy
Slovenia
Hungary
Austria
Slovakia
Switzerland
Belgium
Czech Rep.
Poland
Germany
France
United
Kingdom
Ireland
Netherlands
Antwerp
Rotterdam
Dublin
Belfast
Cork
Eucon Geographical Coverage
Eucon Routes
Dublin Ferryport Terminals
Dublin Ferryport Inland Depot
Belfast Container Terminal
Ports Served by Container Ships:
Belfast, Dublin, Cork, Antwerp,
Rotterdam
M50
M1
M2
M3
M4
M7
M50
M50
M50
M50
M50
M50
M50
M11
Dublin Port
Dublin Ferryport
Inland Depot
Rotterdam
Antwerp
Dublin Ferryport
Inland Depot
became operational
in January 2022
It is located in North Dublin City
with direct access to the M50
Motorway (Dublin Ring Road)
and 15 minutes from Dublin Port
via the Port Tunnel.
Capex project €21m
(2022/23) including
the delivery of
ﬁve new electric
environmentally
friendly semi-
automated RTGs
and the order of one new ship-to-
shore (STS) crane to be delivered in
2023.
29
Strategic Report
2022 Annual Report and Financial Statements
Revenue in the division increased to
€221.5 million (2021: €174.0 million).
The revenue is derived from container
handling and related ancillary revenues
at our terminals and in Eucon from a
mix of domestic door-to-door, quay-
to-quay and feeder services with
74% (2021: 72%) of shipping revenue
generated from imports into Ireland.
With a ﬂexible chartered ﬂeet and
slot charter arrangements, Eucon was
able to adjust capacity and thereby
continue to meet the requirements
of customers in a cost effective and
efﬁcient manner.
EBITDA in the division increased by
8.2% to €31.5 million (2021: €29.1 million)
while EBIT grew 18.0% to €20.3 million
(2021: €17.2 million).
In Eucon, overall container volumes
shipped were down 6.9% compared
with the previous year at 322,600
teu (2021: 346,600 teu). Despite the
reduction in volumes in Eucon and
strong increases in the cost base,
revenue and proﬁtability increased
due to recovery from our customers
by increasing rates and the continued
application of the ﬂexible bunker and
fuel surcharges.
Containers handled at the Group’s
terminals in Dublin Ferryport Terminals
(DFT) and Belfast Container Terminal
(BCT) were down 4.7% at 319,600 lifts
(2021: 335,500 lifts). DFT’s volumes
were down 4.5%, while BCT’s volumes
were down 5.1%. While the reduction
in volumes is disappointing, we are
encouraged by the continued revenue
growth in the terminals offsetting the
additional costs.
2022 Overall Container and
Terminal Performance
Revenue
€221.5m +27.3%
2021: €174.0m
EBITDA
€31.5m +8.2%
2021: €29.1m
Operating proﬁt
€20.3m +18.0%
2021: €17.2m
ROACE
29.3% +3.8pts
2021: 25.5%
The Container and Terminal Division
Continued
Outlook
In Eucon, we have seen a reduction
in containers shipped of 4.4% in the
ﬁrst 2 months of 2023 compared with
the prior year. This is indicative of the
slowdown in the global economy that
is not unexpected. In our container
business, we will continue with our
approach of matching capacity to
the demand requirements of our
customers. Port lifts in our container
terminals decreased by 5.6% in the ﬁrst
2 months of 2023 compared with the
prior year and again is indicative of the
market situation.
We will commission a further three
electric rubber-tyred gantries capable
of remote operation during 2023
along with the delivery of a new ship-
to-shore crane. These investments
will continue to deliver operational
efﬁciency, increased capacity and with
these progressive investments in the
modernisation of our terminals we are
well placed when growth returns to the
market.
30
Irish Continental Group
Results
Revenue for the year amounted to
€584.9 million (2021: €334.5 million)
while operating proﬁt amounted to
of €66.7 million compared with a
loss of €(0.2) million in 2021. Principal
variations on the prior year relate to
the recovery in passenger volumes,
continued growth in our freight
volumes and revenue and an increase
in container charter ship rates.
Taxation
The tax charge is €2.7 million in 2022
compared with a charge of €0.8 million
in 2021. The corporation tax charge
of €2.7 million (2021: €0.7 million)
comprises Irish and UK corporation
tax. Certain activities qualify to be
taxed under tonnage tax (which is
an EU approved special tax regime
for qualifying shipping activities) in
Ireland. A reconciliation of the tax
charge showing the effect of the
tonnage tax regime on the Group’s
tax charge is shown at note 8 to the
Financial Statements. The deferred tax
charge was €nil in 2022 compared to a
charge of €0.1 million in 2021.
Financial Review
CONTINUATION
OF STRONG
PERFORMANCE
32
Irish Continental Group
Earnings per share
Basic EPS was 33.6 cent compared with
(2.6) cent in 2021. The primary reason
for the increase in Group proﬁtability
versus the prior year.
Adjusted basic EPS (before the net
interest (income) / cost on deﬁned
beneﬁt obligations and non-trading
items) was 33.6 cent compared with
(2.7) cent in 2021.
Cash ﬂow and investment
EBITDA for the year was €127.2
million (2021: €52.3 million). There
was a net inﬂow of €1.2 million due to
positive working capital movements,
pension funding movements of €1.1
million, yielding cash generated from
operations amounting to €132.0 million
(2021: €67.0 million).
Interest paid was €4.0 million (2021:
€8.4 million) while taxation paid was
€1.7 million (2021: €0.8 million).
Capital expenditure outﬂows
amounted to €75.7 million (2021: €55.2
million) which included €57.4 million of
strategic capital expenditure. Strategic
capital expenditure included the
purchase of an eighth container vessel
the CT Pachuca, the purchase of the
Isle of Inisheer and rubber-tyred gantry
cranes for Dublin Ferryport Terminal.
Total dividends of €24.2 million were
paid during the year (2021: €nil) and
€49.2 million (2021: €19.8 million) was
expended in buying back the Group’s
equity.
The above cash ﬂows resulted in a
year-end net debt of €171.1 million
(2021: €142.2 million) net debt, which
comprised gross borrowings of €167.7
million (2021: €123.1 million), lease
obligations of €42.4 million (2021: €57.6
million) offset by cash balances of
€39.0 million (2021: €38.5 million). The
key net debt / EBITDA (pre non-trading
items) ratio was 1.2 times (2021: 2.6
times).
David Ledwidge,
Chief Financial Ofﬁcer
Dividend and share buybacks
Following the easing of travel
restrictions and the consequent
improvement in passenger revenues
together with the continuation of
strong performance in all other
revenue streams, the Board considered
it appropriate to recommence the
payment of dividends. The Company
paid a ﬁnal dividend in respect of
ﬁnancial year 2021 of 9.00 cent per
ordinary share on 7 July 2022 to
shareholders on the register at the
close of business on 10 June 2022. The
Company paid an interim dividend in
respect of ﬁnancial year 2022 of 4.64c
per share. The total amount paid was
€24.2 million.
During the year, the Group bought
back 12.0 million shares which were
cancelled. The total consideration paid
for these shares was €49.2 million
(2021: €19.8 million).
Pensions
The Group has four, separately funded,
company-sponsored deﬁned beneﬁt
obligations covering employees in
Ireland, the UK and the Netherlands.
The Group also participates in the
UK based industry-wide scheme,
the Merchant Navy Ofﬁcers Pension
Fund (MNOPF) in which participating
employers share joint and several
liability. Aggregate pension assets in
the four company-sponsored schemes
at year end were €124.8 million (2021:
€145.8 million), while combined
pension liabilities were €91.6 million
(2021: €140.5 million). The total net
surplus of all deﬁned beneﬁt pension
schemes at 31 December 2022 was
€33.2 million in comparison to a €5.3
million surplus at 31 December 2021.
Financial risk management
The principal objective of the Group’s
treasury policy is the minimisation
of ﬁnancial risk at reasonable cost.
To minimise risk the Group may use
interest rate swaps and forward foreign
currency contracts. The Group does
not trade in ﬁnancial instruments for
speculative purposes.
33
Strategic Report
2022 Annual Report and Financial Statements
Financial Review
Continued
Interest rate management
The interest rates on Group borrowings
at 31 December 2022, comprising loan
notes and ﬁnance lease obligations
have been ﬁxed at a contracted rate
at the date of drawdown with the
relevant lender, eliminating exposure
to interest rate risk on borrowings. The
average effective interest rate at 31
December 2022 was 2.40% (2021: 1.60%).
Debt interest cover as deﬁned under
our banking covenants to operating
cash ﬂows for the year was 36.0 times
(2021: 12.6 times).
Currency management
The Group has determined that the
euro is the presenting currency in
which it reports its results. The Group
also has signiﬁcant sterling and US
dollar cash ﬂows. The Group’s principal
policy is to minimise currency risk
by matching foreign currency assets
and liabilities and to match cash ﬂows
of like currencies as far as possible.
Exposure to the US dollar relates
mainly to fuel costs. The Group has in
place fuel surcharge arrangements
with its commercial customers which
recovers a portion of movements
in euro fuel costs above a base level
which partially mitigates the exposure
to US dollar currency movements.
Commodity price management
Bunker oil costs constitute a separate
and signiﬁcant operational risk, partly
as a result of historically signiﬁcant
price ﬂuctuations. In the Container and
Terminal Division, bunker costs above
a base level are offset to a large extent
by the application of prearranged
price adjustments with our customers.
Similar arrangements are in place
with freight customers in the Ferries
Division. In the passenger sector,
changes in bunker costs are included
in the ticket price to the extent that
market conditions will allow. Bunker
consumption was 161,900 tonnes
in 2022 (2021: 129,400 tonnes). The
increase in consumption was primarily
due to increased activity levels on
the Ferries Division’s new service on
the English Channel following the
introduction of a third vessel. The
average cost per tonne of heavy fuel oil
(HFO) fuel in 2022 was 47% higher than
in 2021 while marine gas oil (MGO) was
107% higher than in 2021.
Credit risk
The Group’s credit risk arising on
its ﬁnancial assets is principally
attributable to its trade and other
receivables. The concentration of credit
risk in relation to trade is limited due
to the exposure being spread over
a large number of counterparties
and customers. The Group also has
a signiﬁcant long term receivable
relating to a bareboat hire purchase
arrangement which is secured by
retention of title to the vessel.
Liquidity
It is Group policy to maintain available
facilities which allow the Group to
conduct its business in an orderly
manner. The target level is reviewed
from time to time in line with the
Group’s future requirements over the
medium term and will comprise cash
deposits and committed banking
facilities. Total available facilities at 31
December 2022 amounted to €67.4
million, comprising cash balances of
€39.0 million together with undrawn
committed facilities of €28.4 million
with average maturity of 1.4 years
(2021: 2.4 years). Total drawn facilities of
€168.2 million had a weighted average
maturity of 2.5 years (2021: 3.6 years)
over remaining terms of up to 8 years
(2021: 9 years).
David Ledwidge,
Chief Financial Ofﬁcer
8 March 2023
34
Irish Continental Group