Preliminary results for the year ended 31 December 2009

Highlights

• Strong run of contract wins and renewals: growing emphasis on rail in mainland Europe
• Mainland Europe order book up 29 per cent in euro
• UK Trains passenger revenue growth continuing to strengthen
• Tight management control mitigates £60 million fuel hit and effects of recession
  • - Commercial mileage reduced by 3.4 per cent in UK regional bus operations
  • - More than £15 million annualised cost savings achieved in UK Trains
  • - Targeted savings and mileage reductions in mainland Europe
  • - Pension and tax savings realised in 2009, and locked in for future years
• Profit before taxation down 19 per cent to £121.7 million
• Basic earnings per share up four per cent to 54.5 pence (2008: 52.6 pence)
• Adjusted earnings per share 58.8 pence (2008: 61.5 pence)
• Final dividend up five per cent to 18.80 pence per share

David Martin, chief executive, commented: “Arriva has comethrough a challenging year with resilient earnings. We have entered2010 with improved efficiency which is contributing to currenttrading in all three divisions.

“Throughout the year we worked on business improvementmeasures to counteract the effects of a deep recession throughoutEurope, and the legacy of unusually high fuel costs. Decisivemanagement action has bolstered our already strong underlyingperformance, and will continue to deliver benefits in 2010 andbeyond. Cost reductions have not been at the expense of operationalperformance, with reliability, punctuality and customersatisfaction at high levels throughout the group. Our tight focuson cost control and a disciplined approach to investmentopportunities will continue.

“We have continued to build our long-term business inmainland Europe with a series of contract wins for work startingbetween 2010 and 2012, and the pipeline of attractive tenderopportunities remains open. The exciting growth in our mainlandEurope order book reflects continuing strong demand for thebenefits the private sector can bring to transport in an era oftightening public spending, and a favourable competitivelandscape.

“Trading is healthy in most mainland European countries,our UK bus business is showing continuing strength, and theacceleration of passenger revenue growth in our UK rail franchisesis encouraging. Passenger revenue in CrossCountry is up by 8.8 percent in the first seven weeks of 2010, helping to offset the lowerfranchise support payments it will receive in 2010. With a£30 million reduction in fuel costs in 2010, new contractsalready secured, and passenger revenue support available toCrossCountry late next year, I am confident that the group hasexcellent prospects for substantial progress. That confidence isreflected in the Board’s recommendation of a further five percent increase in the final dividend."

Enquiries:

Notes to Editors:

• Arriva is one of the largest private sector providers of passenger transport in Europe, employing more than 42,300 people (including share of associate companies) and providing more than one billion passenger journeys every year.
• Arriva provides transport services including buses, trains, commuter coaches and water buses, and operates in 12 European countries: Czech Republic, Denmark, Germany, Hungary, Italy, the Netherlands, Poland, Portugal, Slovakia, Spain, Sweden and the UK.

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