Europe’s most
downloaded rail
app
Investor Presentation
First published: 4 July 2023
Updated: 4 July 2024
Disclaimer
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without notice. Accordingly, undue reliance should not be placed on any of the industry or market data contained in this Presentation.
1
We are Europe’s leading independent
rail platform, in a market estimated
to be around €55 billion.
1
We enable millions of travellers to
seamlessly search, book and manage
their journeys through our highly
rated Trainline website, mobile app
and B2B partner channels.
This presentation provides
introductory information for
prospective investors to Trainline.
1 OC&C Analysis as at 2023 – Addressable European market includes UK and excludes
Russia & Ukraine
Our purpose
Empowering greener
travel choices
Building the world’s
number 1 rail platform
Our vision
Our customer proposition
Route
emission info
4
Digital ticketing
including season
tickets and ‘favourites’
commute
personalisation
All carriers, fares and
railcards in one mobile app
‘I Came By Train’
campaign to drive
awareness of
sustainability of rail
Money-saving
features e.g.
SplitSave (split
ticketing)
Simple, intuitive
user interface
0
50
100
150
200
250
300
1990 2000 2010 2020
Energy Transport
Modal shift a key way to reduce transport emissions
5
1. BEIS UK GHG emissions by sector, 2022 2. Emissions per passenger/KM as per https://www.gov.uk/government/publications/greenhouse-gas-reporting-conversion-factors-2021
Transport responsible for 26% of all emissions
1
Air Car Train
7x
3x
Switching to rail significantly reduces emissions
2
Million tonnes of CO
2
equivalent
Our business segments
UK Consumer
% of FY24 NTS:
65%
Sells rail tickets on behalf of
all UK rail companies and
National Express coach
tickets to customers
worldwide.
International
Consumer
% of FY24 NTS:
20%
Sells rail tickets on behalf of
all the major European Rail
and coach companies.
Focus markets include
domestic Italian and Spanish
travel, as well as foreign
travel.
% of FY24 NTS:
15%
Combines Platform One
technology with our Trainline
Partner Solutions business.
Trainline Partner Solutions
provides retailing capabilities
for rail carriers, businesses and
travel sellers.
Trainline
Solutions
6
172
209
45
53
110
135
FY2023 FY2024
2,811
3,469
915
1,041
597
785
FY2023 FY2024
Strong growth in sales and revenue
Revenue (£m)Net ticket sales (£m)
7
397
327
4,323
5,295
+22%
+21%
71
86
-22
-17
37
53
Adjusted EBITDA (£m)
122
86
FY2023 FY2024
+42%
Int’l Consumer Adj. EBITDA:
-£1 million excl. internal
transaction fee in FY2024
How do we make money?
8
Case Study: FY 2024 UK Consumer revenue take rate
(revenue as % of net ticket sales)
Base commissions
Other revenues
Internal transaction fee
to access Platform One
Revenue take rate
Average commissions
on net ticket sales paid
by rail carriers
Revenues from
booking/service fees, multi-
currency services,
advertising and other
ancillary services
Contra revenue charge payable
to Trainline Solutions; nil impact
to Group revenue
(N.B. International Consumer
internal transaction fee -1.5%)
Revenue as a percentage of
net ticket sales, as per
Trainline’s financial accounts
Best positioned to win in
liberalising rail markets:
rail market in UK & Europe
1
c€55bn
1 OC&C Analysis as at 2023 – Addressable European market excludes Russia & Ukraine; 2. New entrant carrier competition within €10bn priority markets (Spain, Italy, Foreign Travel), France and
UK within next two years
Significant addressable
market:
markets where new
entrants launching over
next two years
2
c€30bn
Remit to aggregate
carriers in multiple
geographies
Scalable tech
platform
optimised for
rail travel
Expertise and
scale to invest
across markets
Our growth opportunity
Our strategic priorities for growth
Enhance the
customer experience
• Continually improving and
optimising the user experience,
removing friction while offering
access to unrivalled value and
the widest choice
• Using customer insights and
research, personalisation, data
and machine learning, we
design features that enhance
customers’ journeys at every
stage, from planning and
booking through to post sales
• Deploying our marketing
playbook to drive customer
acquisition and encourage more
customers to choose greener
modes of transport
• We have built a strong brand in
the UK, with further headroom
to grow across our core
European markets
Build
demand
Increase customer
lifetime value
• We want our customers to use
us more frequently for more of
their travel needs
• Our enhanced product offering
and broader marketing helps
people make better travel
choices everyday
• This helps to drive faster growth
and improves our economics,
allowing us in turn to invest more
in customer acquisition
Grow Trainline
Solutions
• Underpinned by Platform One,
our single global tech platform,
Trainline Solutions offers
retailing solutions to carriers and
distribution capabilities for
travel sellers
• We are focused on increasing
demand from our existing clients
while winning new clients
• Traditionally focused on the UK,
we are now breaking through
into European markets
10
5.8
3.1
1.7
FY2024
Online Offline Contactless (primarily TfL)
A large UK rail market with £3 billion offline ticket sales headroom
11
UK Consumer
UK rail industry ticket sales by
retail channel (£ billions):
Expanding UK rail market
• Unlocking value & removing friction
for customers
• Connecting customers with new
open access operators
10.6
Shifting more people to online and
digital tickets
• Priming mobile App for short
distance and commute journeys
Eticket penetration is % of UK industry net ticket sales fulfilled using a barcode read ticket;
Eticket availability is % of UK rail journeys where an eticket can be used
Trainline driving market shift to
digital tickets in UK
21%
14%
47%
FY2019 FY2024
Best Price Guarantee
On the day ticket purchases, including
commuters, represent next leg of growth…
Eticket penetration in UK has more than tripled in
last five years…
Digital Seasons
Eticket
availability
63%
Eticket
availability
>90%
12
UK C o n s u m e r
Liberalisation of European rail enabling
Trainline’s market fit
13
Carrier competition provides opportunity to position Trainline as market aggregator
• EU Fourth Railway Package mandating domestic market
liberalisation
• Proposed ramp up in carrier competition could support a golden age
of rail travel
• Carrier competition now nationwide in Italy and Spain
• 20 more routes set to see new entrant carriers launch services by
end 2025
• More fragmented markets brings more choice for the customer
• But carriers do not offer competitor inventory on their respective
websites
International
Consumer
Focusing on €10bn priority markets where we can win today
14
International
Consumer
€10bn €9bn
c€15bn
France Rest of Europe (ex UK)
European
rail market
Spain
€2bn
addressable market
Doubled domestic sales
in FY2024 in a four
carrier market
Foreign travel
€4bn
addressable market
Leveraging our seamless,
trustworthy App and Website
for a high margin customer base
Italy
€4bn
addressable market
Deepening customer relationships
in a two carrier market, with new
entrants on the horizon
€11bn
Germany
Future growth opportunity
Spain provides template for how carrier competition catalyses the
need for a market aggregator like Trainline
• Avg. fares down –50%
1
• Industry passenger volume up +70%
1
• Real customer choice
• Best UX through highly-rated App
• TopCombo
• Best Price Guarantee
• Remit to aggregate in multiple geos
• Expertise and scale to invest
• Scalable platform optimised for rail
15
€55bn
Spain
Provides significant runway for future growth
1. Three high speed routes with four carrier brands (Madrid-Barcelona, Madrid-Valencia, Madrid-Alicante)
International
Consumer
Significant market benefits from
carrier competition
Trainline honing aggregation
playbook in Spain
Best positioned to become
aggregator of choice in Europe
Platform One underpins our B2C businesses as well as our travel
partners' online retailing
16
Deep Inventory Connections
Customer-centric ecommerce
layer
Leveraging machine learning, and
now AI
Large-scale multi tenanted rail platform with >350 searches per second
Tra in lin e
So lu t io n s
Appendix
18
Trainline: A Brief History
IPO:
Who we are: the Board of Directors
19
Brian was Chair of ASOS from 2012 to
2018 and Chief Executive Officer of
Amazon.co.uk from 2006 to 2011. He
has also held Non-executive Director
positions at AO World plc,
Computacenter PLC, Three PLC and
Celtic FC PLC. He was previously on
the Board of the BBC and was a
member of the Advisory Board of
Huawei UK.
Prior to Trainline, Jody held the
position of CEO at Photobox Group,
Europe’s leading personalisation
business, encompassing the Moonpig
and Photobox brands. Prior to
Photobox Group, he spent ten years
at eBay leading the Growth function
globally.
Pete joined Trainline in 2015,
becoming CFO in December 2022.
Prior to this he served as VP Finance
leading financial control, planning and
analysis. Pete also played a key role in
the IPO.
Prior to Trainline he spent 9 years at
eBay both as a finance leader and in
various commercial roles.
Jennifer was Executive VP of People
for ARM Holdings plc from 2013 to
2017. Prior to this, Jennifer was Group
People and Culture Director at UBM
plc from 2007 to 2013 and Group HR
Director at Emap plc from 2003 to
2007. Jennifer holds an MA (Hons)
from the University of Oxford in
English and French.
Duncan was CFO of Ocado plc from
2012 to 2020. Prior to this, Duncan
was CFO at Fitness First plc, and
Group FD at Kingfisher plc. He has
also been FD of B&Q plc and CFO of
Virgin Entertainment Group. Until
2018, he was Nonexecutive Director
and Senior Independent Director of
Zoopla Property Group PLC.
Rakhi has extensive expertise in
customer experience and innovation
having spent 12 years at Amazon in
senior leadership positions. Prior to
this, Rakhi held roles at TomTom and
US management consulting firm
Oliver Wyman.
Andy brings experience in e-commerce
and knowledge of technology and
marketplaces from his previous role as
CEO of Priceline International and Chair
of Toptable.com, both now part of
Booking.com. Andy is an adviser for iQ
Capital and was previously a Non-
executive Director of Albion
Development VCT PLC.
Brian McBride
Chair
Jennifer Duvalier
Senior Independent Non-executive Director
Jody Ford
Executive Director
& Chief Executive Officer
Pete Wood
Executive Director
& Chief Financial Officer
Duncan Tatton-Brown
Independent Non-executive Director
Andy Phillipps
Independent Non-executive Director
Rakhi Goss-Custard
Independent Non-executive Director
Marie has a wealth of experience of data-
driven strategic growth and consumer
behaviours having spent 29 years at Nielsen
ultimately as Executive Vice President. Marie
holds a diploma in International Business
Management and Administration from
Kedge School of Business and is based in
France.
Marie Lalleman
Independent Non-executive Director
Who we are: the Executive Team
20
Before Trainline, Milena spent 12 years
at Google Play, leading the
engineering teams in charge of app
distribution and developer experience.
Having started her career as a
Software Engineer, Milena has a
wealth of experience designing
systems and providing technical
leadership across products related to
search, mobile services and software
distribution.
Milena Nikolic
Chief Technology Officer
Before joining Trainline in July 2020,
he spent more than 20 years in
product management. From BBC
iPlayer to Spotify, Dave has been at
the forefront of creating simple,
relevant product experiences used by
customers across the world.
Dave Price
Chief Product Officer
James’ team was awarded Legal
Department of the Year by the British
Legal Awards 2018 and the Legal 500
UK Awards 2019. Prior to joining
Trainline in 2009, James spent four
years at leading UK law firm Travers
Smith LLP. James is an English law
qualified solicitor.
James Hanratty
General Counsel
Pete joined Trainline in 2018, bringing
with him 20 years’ experience in
consumer internet. He spent 11 years
at eBay, where he held roles in
internet marketing, analytics and
finance. He has also been CFO of
LADbible.
Pete Wade
Chief Commercial Officer
Martin joined Trainline in 2021,
bringing over 20 years’ experience in
strategic communications.
For over ten years he worked as Head
of Strategic Communications in the
UK government and advised Prime
Ministers Blair and Brown.
Martin Sheehan
Chief Corporate Affairs Officer
Lisa joined Trainline in February 2021.
She has more than 25 years’
experience within human resources.
For the ten years prior to joining
Trainline, Lisa was the CPO of Betfair
and Just Eat.
Lisa Hillier
Chief People Officer
Mike joined Trainline in 2021, bringing
over 20 years’ experience of leading
data teams and organisations. Mike
spent the previous four years at
Facebook as the Head of Data
Science and Engineering for
Workplace by Facebook. Prior to that
he led the data and insights capability
at Microsoft for Skype.
Mike Hyde
Chief Data Officer
Our monetisation avenues
21
• Commission on net ticket sales
• Commission rates vary by mode (rail
vs. coach), by ticket type (standard
vs. seasons), and by customer
(domestic vs. international inbound)
• Paid by operators from net ticket
sales
Commission
• Charged on most bookings but
excluding those made on-the-day of
travel
• Variable by ticket value and device
Booking fees
• Refund fees
• Charged per each transaction
• Settlement and fulfilment
• Settlement fee charged for
business credit cards only
• Fulfilment of ticket through
eticket, printing at station or post
Service fees
Ancillaries
• Includes insurance, hotel, multi
currency options, advertising etc.
TMC,
corporates,
white labels
• Bespoke contracts negotiated on an
overall take rate basis. Combination
of commission and fees
• White label bespoke development
projects negotiated on a case-by-
case basis
SME
• Commission based on consumer
take rates. Paid by operators
• Booking and refund fees
• Charged per each transaction and
consistent with consumer fees
• Paid by SMEs
• Settlement and fulfilment fees
• Fee charged for business credit
cards and postal delivery
• Paid by the SMEs
Commission
• Commission rates on net ticket sales
• Commission rates vary by operator,
by mode (rail vs. coach), by ticket
type (standard vs. seasons), and by
customer (domestic vs. international
inbound)
• Commission rates from certain
operators contain performance-
related kickers
• Paid by operator from net ticket
sales
Booking fees
• Charged for bookings for certain
carriers and for certain customer
groups (e.g. international inbound)
Ancillaries
• Includes multi currency options
UK Consumer
Trainline Solutions
Consists of B2B business and tech platform
(Platform One)
International Consumer
Internal
Transaction
fee
• Revenue contra: Internal transaction
fee for the use of the Platform One
technology
Internal
Transaction
fee
• Revenue contra: Internal transaction
fee for the use of the Platform One
technology
Internal
Transaction
fee
• Revenue includes an internal
transaction fee from UK Consumer
and International Consumer for the
use of the Platform One technology
Glossary – key items
22
• Gross value of ticket sales to customers, less the value of refunds issued, during the accounting period excluding Value Added Tax
in the United Kingdom (both to domestic and inbound customers)
UK Consumer
• Gross value of ticket sales to corporates, less the value of refunds issued, during the accounting period excluding Value Added Tax
supporting booking solutions for SMEs, Corporates, Travel Management Companies. It also includes white label solutions for rail
carriers
Trainline Solutions
• Gross value of ticket sales to customers, less the value of refunds issued, during the accounting period excluding Value Added Tax
to consumers from all over the world on behalf of European operators and rail passes in Japan to inbound visitors
International Consumer
• Commission earned from operators on amount transacted on Trainline or Trainline-operated networks
Commission
• Fee per transaction, based on ticket value and sales channelBooking fee
• Tiered refund fee associated with customers obtaining a refund of the fare paid prior to the date of travelRefund fee
• Customer fees charged for certain payment types. Charges removed for consumers in Jan-18 with EU legislation but still charged to
customers using a business credit card in the B2C booking flow
Settlement fee
• Cost per ticket, largely variable, relate to costs incurred in delivering the ticket to the customer (e.g. via eTicket, Ticket on departure
via vending machine or booking office, and via post)
Fulfilment costs
• Fully variable costs, settlement costs are principally debit and credit card processing charges, paid to the Group’s merchant acquirerSettlement costs
• Semi-variable in nature, mainly relate to after sales support provided by the Group’s call centre and backend support teamCustomer care costs
Net ticket
sales
RevenueCOGS
• Variable costs to access UK rail industry reservation system when selling rail ticketSystem costs (UK)
• Internal fee per transaction payable by UK Consumer and International Consumer businesses to access Platform One, reflected as a
contra to revenue (nil impact on Group revenue). See further explanation on slides 23 and 24.
Internal transaction
fee
Glossary – key items
23
• Includes central staff costs relating to general management, administration, technology and back-office functions as well as
occupancy, finance and professional and IT costs. Platform costs are held in Trainline Solutions and include the costs associated
with maintaining Platform One, the engine behind our consumer app and website.
Central and platform
costs
• Primarily driven by internally generated software development, with development staff costs capitalised to the extent that they
meet the recognition criteria as defined by the Group’s accounting policies
Capex
• Discretionary and variable, costs incurred in relation to direct, performance-based streams (including PPC, retargeting, paid social
and Display), as well as more general brand awareness campaigns
Marketing costs
• Largely fixed in nature, relate to the costs of hosting, application and supportSystem costs
• Largely fixed in nature, related to the people costs of the key functions (e.g. tech, commercial and finance). Partially allocable,
partially included in central costs
Staff costs
• Largely fixed in nature, includes costs related to rent and rates for the offices, finance and related (including legal external services),
travel and entertainment and IT and communication. Partially allocable, partially included in central costs
Overhead
Other administration
expense
• Profit or loss before net financing income/(expense) and tax, depreciation and amortisation, and exceptional itemsAdj. EBITDA
• For the majority of our sales, we take the ticket sale monies and hold the cash on our balance sheet before we pay it to the carrier.At
any point in time, we have cash in our bank account/creditor on our balance sheet due to the carrier, therefore, we tend to have a
negative working capital cycle. However, the working capital at the end of the year is driven by where our UK rail creditor lands so is
subject to volatility
Working capital
• Cash generated from operating activities, adding back cash, exceptional items, and deducting cash flows in relation to purchase of
property, plant and equipment and intangible assets, excluding those acquired through business combinations or trade and asset
purchases
Adjusted operating free cash flow
Revised segmentation of business units – September 2022
•
New segmentation enhances disclosure with improved cost allocation between business units, better reflecting the
operation of the business
•
Improved reporting transparency, splitting out marketing from other direct admin costs on face of segmental P&L
•
Improved allocation of direct & central admin costs, enables Trainline to report adjusted EBITDA for each business unit
•
Created new ‘Trainline Solutions’ business unit:
− Absorbing UK and International TPS businesses, as well as costs to run Platform One technology stack
− Internal fee per transaction payable by UK Consumer & International Consumer businesses to access Platform One,
mirroring how B2B and TOC white label clients are charged
− Transaction fee reflected as contra revenue to UK Consumer & International Consumer (nil impact to Group revenue)
•
Adjusted the International segment, moving International TPS business to Trainline Solutions; International is now
referred to as ‘International Consumer’
•
Restated financials for the periods FY2020-FY2022 can be found on our investor website (published 15 Sept’ 2022)
24
Revised segmentation of business units
25
UK Consumer UK Consumer
International
International
Consumer
Trainline Partner
Solutions (UK)
Trainline Solutions
UK B2B
UK White label
Platform One revenues
and operating costs
Old segmentation
New segmentation
Transaction fees to access
Platform One (contra
revenue for UK Consumer &
International Consumer)
Group Group
International
Consumer
Trainline Partner
Solutions (International)
UK B2B
UK White label
Trainline Partner
Solutions (International)
