2020

26.03.2020 – Jungfraubahn Holding AG

Jungfraubahn Holding AG: Jungfrau Railway Group generates CHF 53.3 million profit

Jungfraubahn Holding AG / Key word(s): Annual Results
Jungfraubahn Holding AG: Jungfrau Railway Group generates CHF 53.3 million
profit

26-March-2020 / 06:38 CET/CEST
Release of an ad hoc announcement pursuant to Art. 53 KR
The issuer is solely responsible for the content of this announcement.

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Jungfrau Railway Group generates CHF 53.3 million profit

In 2019, the Jungfrau Railway Group generated a profit of CHF 53.3 million -
the best results in its history. The Board of Directors will nevertheless
propose an unchanged dividend of CHF 2.80 to the General Meeting, as the
current outlook has been tarnished due to the spread of the coronavirus. The
consequences of the pandemic cannot yet be assessed. The Jungfrau Railway
Group must therefore assume that its results for 2020 will be significantly
down on previous years.

The Jungfrau Railway Group can look back on a pleasing 2019 financial year,
with a further increase in operating and transport revenue and in annual
profit. It generated an operating income of CHF 223.3 million. This
represents an increase of CHF 10.5 million on the previous year.

The Jungfrau Railway Group also recorded an increase in its key source of
income - transport revenue. At CHF 161.8 million, this was 5.2 percent
higher than the previous year. Compared to 2018, the EBIT margin rose by 1.6
percent to 30.2 percent. The return on sales was 23.9 percent. For the 2019
financial year, the result was a profit of CHF 53.3 million, up 11.5 percent
or CHF 5.5 million on the previous year.

Jungfraujoch - Top of Europe

The most important segment, Jungfraujoch - Top of Europe, achieved net sales
of CHF 149.8 million. The renewed increase of 7.6% is based on long-term,
highly active and successful development of the Asian markets. With
1,056,000 visitors, more than a million guests travelled to Jungfraujoch -
Top of Europe in the reporting year, the fourth time this happened following
2015, 2017 and 2018. Despite the slight drop in frequency of 1.1%, transport
revenue increased by 1.8% to CHF 120.9 million. Encouragingly, average
revenues also rose again, by 2.7% to CHF 114.50 per guest.

Experience Mountains

The sharpest rise was in Experience Mountains. All participating railways -
the Harder Railway, First Cableway and the Lauterbrunnen-Mürren Rail and
Cableway - once again achieved new records in transport revenue. Net sales
increased significantly by 18.9 percent to CHF 32.6 million.

Winter Sports

The Jungfrau Ski Region is a partnership in which the Jungfrau Railway Group
holds more than 60%. For the fourth time in a row, higher earnings were
achieved in winter sports. In comparison to the previous year, the number of
skier visits in the entire Jungfrau Ski Region rose by 8.4% to 1,069,500,
exceeding the one million mark for the first time since 2013. The Group's
proportionate transport revenue increased by 5.1% to CHF 23.5 million.
Overall, the winter sports segment generated net sales of CHF 30.8 million.

    Segment Information                  2019     2018     Change in %
    CHF (thousands)
    Segment sales
    Net Jungfraujoch sales               149,839  139,216         7.6%
    Net Experience Mountains sales        32,620   27,428        18.9%
    Net winter sports sales               30,779   28,051         9.7%
    Net sales for other segments*         49,125   50,130        -2.0%
    Elimination of internal group sales  -39,053  -32,010        22.0%
    Total operating income               223,310  212,815         4.9%
*Principal among the other segments are the Jungfrau Railway power station,
Jungfraubahnen Management AG and the Lauterbrunnen multi-storey car park.

Investments

In total, the investment volume of the Jungfrau Railway Group amounted to
CHF 118.6 million last year, CHF 83.6 million of which was attributable to
the V-Cableway project. In recent years, the company has invested just under
CHF 250 million into the major long-term project, which includes the core
elements of the Eiger Express, Grindelwald Terminal and the multi-storey car
park alongside the already completed rolling stock renewals at the
Wengernalp Railway and Jungfrau Railway.

In addition to the V-Cableway, a second major project has been launched -
the renewal programme for the Lauterbrunnen-Mürren Rail and Cableway. Costs
of a good CHF 50 million are anticipated for the entire renewal of the
Mürren Rail and Cableway, largely financed by the Canton of Bern.

  Key Figures form the consolidated  2019             2018     Change in %
  financial statements
  CHF (thousands)
  Operating income                           223,310  212,815         4.9%
  Transport revenue                          161,807  153,833         5.2%
  EBIT                                        67,504   60,969        10.7%
  Annual profit                               53,344   47,826        11.5%
  Free cash flow                             -21,511   16,305      -231.9%
  Headcount (full-time equivalents)              612      600         2.0%
                                                2019     2018  Change in %
  Dividend                           2.80 (proposal)     2.80            -

Outlook

Jungfraubahn Holding AG is currently having to deal with the effects of the
coronavirus. The WHO declared COVID-19 to be a global pandemic on 11 March
2020. Management responded to the decline in reservations in its
international group travel business with cost-cutting measures. They have
taken the opportunity to review the entire cost structures once again. In
terms of market development, they will act in a fast and agile manner as
soon as the situation permits, through additional sales efforts and offers
on the global markets.

The federal measures are currently in place for a limited time, until 19
April 2020. The thinned-out timetable for public transport lines will
initially remain in place until 30 April 2020. The consequences of the
corona crisis are not foreseeable at the present time. Jungfraubahn Holding
AG must assume that the results for 2020 will be significantly down on
previous years.

Jungfrau Railways has experienced various global crises in its over 100-year
history. As a value stock, it has a solid balance sheet with retained
earnings of CHF 595 million and currently no interest-bearing debt.

V-Cableway - A project for the future

With regard to the time with the V-Cableway, the company has made various
preparations. It has thus outlined a new vision for development into an
integrated leisure company and driven forward with initial steps, such as
the expansion of shopping and catering services. The Executive Board will be
enlarged on 1 January 2021, as previously communicated. The financial
targets have been adjusted (see the Strategic Financial Targets section in
the Annual Report), whilst adhering to the principles of a value stock with
strong equity (limitation of the interest-bearing debt to 10%) and high
earnings intensity (increase in return on sales from 12% to 18%).

The highlight so far of the main strategic project - the V-Cableway - was
the punctual operational launch of parts of the terminal in Grindelwald
Grund for our partner companies: since 14 December 2019, Berner
Oberland-Bahnen AG's trains have been stopping at the new station and
Grindelwald-Männlichen Gondola Cableways opened its new facility to the
public on the same day. Work on the construction site on the Eigergletscher
is several weeks behind schedule due to harsh weather conditions. At the
moment (as of 25 March 2020) construction work is continuing at full speed.
All necessary federal hygiene and safety regulations are being
systematically followed. As of today, we can assume that the entire
V-Cableway terminal, with shops, restaurants and other services, the Eiger
Express 3S Cableway and the new multi-storey car park with 1,000 spaces will
open on 12 December 2020.

Annual Report and proposals to the General Meeting

The Jungfrau Railway Group's General Meeting will be held in Interlaken on
18 May 2020. It will be held in compliance with COVID-19 Regulation 2, with
no physical participation by shareholders whatsoever. Shareholders will be
informed about the format of the General Meeting and the voting procedure by
personal invitation and publication in accordance with the Articles of
Association. In view of the current situation, the Board of Directors is
proposing an unchanged dividend of CHF 2.80.

The Jungfraubahn Holding AG Annual Report for the 2019 reporting year was
produced as an online edition. The online annual report is published under
the following link:

- Annual Report 2019: www.jungfrau.ch/geschaeftsbericht

- Link to the Agenda of the 2020 General Meeting:
www.jungfrau.ch/generalversammlung/

- Link:
https://www.jungfrau.ch/en-gb/corporate/investor-relations/jungfraubahn-holding-ag/adhoc-news/


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