NATIONAL EXPRESS GROUP PLC

AN OVERVIEW

February 2005

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A leading international public transport Group

Carrying over one billion passengers a year

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A BRIEF HISTORY

1973 - First National Express coach appeared on Britain’s roads1988 - Privatised by Government1992 - Floated on London Stock Exchange1995 - Acquired Travel West Midlands1996 - Acquired first train companies1998 - Entered North American student bus market 1999 - Entered Australian transport market 2001 - Disposal of UK Airports2002 - Entered Canadian transport market

- Exited Australian train and tram operations2004 - Commenced operation of ‘one’ rail franchise

- Entered London bus market

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NATIONAL EXPRESS GROUP TODAY

CoachesNational ExpressNational Express AirportNational Express ShuttleEurolines

Buses Travel West MidlandsTravel CoventryTravel DundeeTravel Midland MetroTravel London

Trains c2cCentral TrainsGatwick ExpressMidland Mainline‘one’SilverlinkStansted ExpressWagnWessex Trains

ATCDurham School ServicesStock TransportationStewart Airport Westbus

USA

Australia

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STRATEGY

• To achieve customer and revenue growth

• To work in partnership with customers

• To deliver high quality, value for money and safe services

• To expand by capitalising on privatisation opportunities in key geographic markets

• To make public transport the first choice travel option – not the last resort

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FINANCIAL HIGHLIGHTS

• Turnover of £2.6bn (2001: £2.5bn)• Group operating profit before goodwill and exceptionals of

£130.9m (2001: £157.8m)• Cash flow from operations of £175.5m (2001: £185.5m)• Profit before goodwill, exceptional and tax of £106.8m

(2001: £129.2m)• Normalised fully diluted EPS of 60.3p (2001: 66.0p

restated) • Increase in total dividend per share of 11% to 24.5p (2001:

22.0p)• Net debt of £334.6m (2001: £315.0m)• Continuing EBITDA interest cover of 9.5 times (2001: 7.5

times)

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AVERAGE NUMBER OF EMPLOYEES(as at December 2003)

0

10

20

30

40

50

1998 1999 2000 2001 2002 2003

Thou

sand

s

AustraliaN AmericaUK

10

UK TRAINS

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UK - BUSES

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UK - BUSES

• TWM largest single area metropolitan bus network in the UK serving Birmingham and the West Midlands

• Operations in Scotland

• 2,000 vehicles carry more than 350 million passengers 80 million miles each year

• Operator of new £145m Midland Metro tram system in Birmingham

• £140m invested in 800 new easy access low floor buses since 1995

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UK - TRAINS

• Largest owner of train companies in the UK with 8 companies• Gatwick Express – Silverlink• Midland Mainline – Wagn (including Stansted Express)• Central Trains – c2c• One – Wessex Trains

• Only dedicated train maintenance company in UK• Consistent 10% per annum growth in passenger revenue

since acquisition (pre Hatfield)• Over 200 new trains ordered – worth £550m • Performance ‘league leaders’ since privatisation• Innovative new train services, marketing and fare initiatives• Bus/rail integration initiatives

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UK - COACHES

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UK - COACHES

• Britain’s only scheduled express coach network

• 12 million passengers a year

• 1200 destinations in England, Scotland and Wales

• 500 branded coaches

• Leaders in telesales and internet

• Leading operator of dedicated coach services for airports and airlines with 5.5m passenger journeys

• Britain’s largest operator of scheduled European coaches with 450 destinations in 25 countries in continental Europe

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USA - BUSES

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AZ

CA

CO

GA

IL OH

IA

KS MO

MS

NE

NV

NM

NY

OK

OR

PA

SC

TX

UT

WI

WA

Ontario

MI

CT

MA

LA

NC

FL

NJ

MD

UT

VA

MI

Nova ScotiaID

Student Transportation Division

Public Transit Division

Student Transportation and Public Transit Divisions

Airport Division

NORTH AMERICA

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NORTH AMERICA

• Critical mass

• Strong professional management

• Investment in building customer relations/partnerships

• Excellent contract retention rates

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OTHER OPERATIONS

• Stewart Airport in North America

April 1, 2000 – handover by Governor of New York State

4th largest airport in New York State

800,000 passengers per annum

Westbus in Australia

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A DAY IN THE LIFE OF…• 1 million bus passengers in Birmingham

• 51,000 coach journeys in Britain

• 800,000 train or tram journeys in Britain

• 160 dedicated Airport Express trains to London airports

• 500 breakfasts served on Midland Mainline

• 104,000,000 American school children safely delivered each year

• 280,000 commuters taken to and from work in Melbourne21