Ladies and gentlemen, welcome to the Get King Group Q3 twenty twenty traffic and revenue conference call. I now hand over to Mr. Jacques Gunnar, Chairman. Sir, please go ahead.
Thank you, Marie. Good morning, ladies and gentlemen. It's a real pleasure this call with you. I am with, Jan Lourich, CEO Geraldine Perischen, CFO and Euris, Mike Schuller and Jean Baptiste Trucille, plus of course, I'm now the claim in Romain Dufour. For the presentation and the relationship with both shareholders and the price.
In fact, you have the dream team. I know it's not usual to organize a call for key Q3 results, but, I think it's an opportunity for you ladies and gentlemen to have a direct contact with the new executive team and perhaps to have some comments about this, what but I can say pretty good Q3, better than expected as some comments have been already made. You have seen that we have a very strong cash position, which is, I would say, quite a good benchmark. And, we have, of course, to explain what would be our vision, our views regarding second semester because we are really in the 2nd wave of the sanitary crisis. Negotiations on Brexit are as expected also ongoing.
Even if we are not really, we have no fee, no specific fee for the outcome. And of course, and this has been already indicated due to the cemetery crisis. Of course, we even if we are fully confident in our robust business model. We are no longer able, of course, to confirm the initial guideline for end of this but I'm sure that the dream team I mentioned will answer to your questions. So, immediately, I give the floor to Jan Marie.
Yeah, it's the floor is yours.
Thank you, Jacques. I will start with this call with a short introduction then Jared will present you the Q3 classic and revenue. And, I will finish by giving you a few insights into our Q4 cutthroat plan. I'm on page 4 of the, of the debt with our key messages. So first, as you have seen, we had a robust truck traffic in Q3.
Volumes were down only 3% over the period and our market share was at, 39.3%. This confirms our strong competitiveness. Car traffic was done 30% in Q3. Revenue was, however, or less impacted, thanks to a strong yield. What was remarkable during the summer is the speed at which customers came back after the end of the spring lockdown.
Last week of June 5 weeks of July were our best ones ever in terms of booking. The a quick catch up in terms of bookings led to a catastrophic early August, which was only 5% down compared to 2019. Our Q3 market share was also remarkable with an all time high at 72.4%. Then Eurostar, traffic was strongly impacted by the pandemic, as part of their, their preparing the opening of the Amsterdam London Route, which is confirmed for the end of next month. With this less shuttle on one side and a railway traffic on the other side.
We finished the quarter with a strong cash position, as Jacques just mentioned, at 596,000,000, which is 85,000,000 above what we had in our accounts end of June. This amount is also to be compared with our H2 debt service of 1,000,000. As mentioned earlier on, we will finish this presentation by sharing with you our Q4 action plan. But before that, Geraldine, for the Q3 3 classic and revenue.
Thank you very much, and good morning to you all. I'm very happy to be here with you and to have the opportunity to speak about Get Link's Q3 performance. Let's start with Slide 6 with the overall revenues. They are at EUR 305,000,000 in Q3, down by 17% compared to last year, and year to date is down 25 percent at 1,000,000. This shows an improvement to compare to what we saw in H1 As a reminder, we were down by 30 2% in H1 2020 53% in Q2 compared to last year.
We'll get to that in the next pages, but you can see that we have a strong Q3 given the context, of course, for the Shuttle and Euroports, whereas the Railway segment is still suffering. On Slide 7, you can see that we had a revenue performance roughly in line with 2019 at the shuttle with 1,000,000 of revenue and that we had a decrease in the railway segment of 57% compared to last year. Let's get into more details about the shuttle performance on the following slide. On page 8, as explained by Jan, you can see that we had robust traffic in Q3 for trucks, which were down by only 3%. Regarding cars, slide 9 unsurprisingly, the volume decreased more than for trucks at minus 30%.
I'll spend a few minutes on this it is a result of a very contrasting period. Jan mentioned a few minutes ago that we saw a fast returns in volumes as soon as the travel restrictions were lifted with record breaking bookings during the 1st week of July and volumes done by just 5% versus 2019 just before the quarantine was reinstated in mid August. Volumes were also down by only 46% compared to 2019 in August, I'm saying only, of course, because compared to the rest of the travel industry, this is a very impressive and resilient traffic number. Several factors explain those numbers, the fact that we provide an end to end contactless and safe way to travel, the fact that we offer the fastest journey time and a reliable freaking timetable as well, of course, of the quality of our sales. The last element explains the settled revenue performance is yield and that has been quite strong in Q3, mostly explained by the increased proportion of reimbursable tickets of Flexi Plus customer and last minute booking.
This is illustrated in Slide 10, where you can see that our total yield, trucks and cars included over the last 9 months is up by nearly 14% that's to be compared to the average annual rate over the last 5 years of 3%. The picture is different for highway, as you can see on Page 11. Eurostar passengers were down by 89% in Q3, the high freight emissions by 3% and the total revenues down by 57%. The significant difference in volumes and that you can see is explained by the 6 portions that the railways customers pay to us. Eurostar has better recovery and airlines, thanks to green credentials, the relative easier and reassuring safety procedures and city centre to city centre journeys.
As mentioned, Diane, the launch of the direct London Amsterdam Services and the acceleration of the Greenfield projects also provides some good perspectives for the business. Finally, page 12, you can see that Europort made a solid performance in Q3 with EUR 42,000,000 of revenue, which is by 3% compared to last year. This excellent performance was made possible that allowed us to more than compensate the decrease of emissions that were ordered by the current portfolio of contracts with additional last minute spot missions. I will now leave the floor to Jan for the Q4 action plan.
Thanks, Geraldine. Q4 action plan. So here, we have 4 main priorities. Which are 1 performance, 2 agility and 3, discipline in the execution. Performance 1st, it's both about cost and revenue.
So please go on Page 14 Regarding our cost, we launched a program called shield, aiming at producing OpEx, CAPEX and employed costs. So first OpEx, we are reducing all our external costs, consulting, outsourcing SG and A and others, we are also accelerating all our productivity programs. CapEx. So here, we are reviewing 1 by 1 all our plan investments. Mechanicality of optimizing their amounts and schedules.
Of course, all safety, regulatory and proxy projects are maintained. Last employees cost, here, we have implemented furlough in the UK and activity per share in France. To adapt our workforce to the level of traffic we operate. We do not plan today to make people redundant as we do want to be able to be fully to fully benefit from the end of the travel restrictions when they come. As mentioned earlier on, we have learned this summer that the truck we bounce back very quickly when the restrictions are over.
Our cost reduction plan shield is managed by our heads of finance, HR, operations, and sales. They have weekly meetings to review the action dedicated to reach our savings targets. We will not communicate about these targets as they depend on the level of traffic we'll have over the next month. On the revenue side, we are developing a new pricing engine, which will go live early next year. The goal of this engine is to segments, our customer base more funny than today, especially as to their vehicle size.
We are also developing value add services for our freight customers. Now let's go to Page 15, agility, to bring costs down and be able to add up quickly to the demand, we want to have a workforce as flexible as possible. To do this, we have developed program called 1 team 1 mission. As its name indicates, we are 1 team with 1 mission, which is to best serve our clients at the best cost. We are training people to jobs that are not the usual ones to get the flexibility that we need.
And this will help us best manage the year end right traffic increase that we expect with the pre Brexit stockpiling. Regarding about our financial structure,
The group has always posted an active management of its financial structure and obviously now is not the time to change those good habits. So in an abundance of precaution, we have signed a waiver under your original term loan financial DSCR covenants. Discover the next free testing period, December 2020, June December 2021. The last two periods are options which are available if we require them. We are also closely monitoring the financial market conditions to be in a position see is refinancing opportunities, for example, of our green bonds.
This is to further improve our strong liquidity position But only if the market is favorable, there is no necessity, we are just being opportunistic.
Okay. And finally, on Page 16 discipline in the execution, we have 2 projects. We give a specific attention to, Brexit and electric. So what's it first, the infrastructures and facilities are ready. We are currently supporting our client to get ready for, January 1st We, for example, organized weekly webinars with our freight clients.
We are also testing all our new IT systems, the main one is our horizontal border pass, which will enable to, freight customers to digitize all their border documents and send them to us in advance, in order to then cross the frontier seamlessly. And finally, DelekLink, As you know, we are now working in a very constructive manner with the IGC And CTSA. We have weekly meetings with them. And we got from them a first consent, the first one we were expecting on October 7th, it was the authorization to test the power station. And we now expect the second one, which is about holding the cable in the signal in December.
Thank you for your attention. Now, we'll go through the QNSA in.
Yes, thank you, Jan and Geraldine. I think that, of course, we made such a quick presentation because we want to give a room for a Q and A session. That you have seen through this presentation that, first of all, and I would like to add that we have the full support of our employees and unions, which is absolutely key. We are very flexible. We are motivated.
We are looking carefully to the and we are taking all the actions which are requested in order to deal with any situation. So once again, as we did in the past, I think we are still the the leader of the Detroit root and we consider that we are in a very well positioning regarding all the competition. But now please ask your question. And so I give the floor to Maureen in order to explain how we can work on that.
We have the first question from Navil Ahmed from Barclays. Sir, please go ahead.
Yes, good morning. Thanks a lot for granting this call, really useful. I actually had 3 series of questions if I may. The first one is maybe on the technicals of the covenant waivers, I think in the release, you mentioned that the waiver is subject to holding specific cash levels at the original level. Could you please elaborate a bit on that?
Second question on the shield plan, I'm aware that the situation is what it is and there's a lot of uncertainty, but if you could help us understand what sort of cost and CapEx benefits you expect from the initiatives you'll be taking. And also, if you can guide us on what sort of OpEx and CapEx trajectory you would expect for the reminder of the year, that would be useful. And finally, one question on cash. I think you're mentioning an improved cash situation at the end of September? Have you drawn on additional credit lines?
Is it related to the cash flow generation of the third quarter? Any comments you could make on that would be useful. Thank
you. This is Geraldine. I will take your first question. Regarding the waiver, we cannot disclose the exact terms as they are confidential, but I can tell you that the agreed are essentially a fee that is minimal compared to what we currently see in the market and a cash level maintenance that is well in line with our usual policy actually regarding the amount of cash we live in the Eurotonnel subgroup.
Okay. Regarding the Shield plan, as mentioned earlier on, we're not going to disclose a precise amount, as tall, we target OpEx, CapEx and employee costs. So we are seeing in all fields, our cost. But we want to keep some flexibility in program, just because we know that the year end can be good, especially in terms of freight traffic and we want to be to take all opportunities as they come and not, just focus on, on the reducing costs. Our role is to maximize value 1st.
And perhaps we can remind that we made 1,000,000 savings in the Q2, including, of course, million coming from the state aid related to, activity sale and follow. So it means that in 3 months, we have been able to generate a significant savings and I'm sure that the team under Jens of course, we'll do something very strong.
Yes, Geraldine?
Yes. And on the 3rd question, on cash position, nebability is purely cash flow generation. We didn't draw on any line to generate that amount.
Can I just add a a follow-up on CapEx? I think previously you were guiding on roughly 1,000,000 for 2020, is that still the order of magnitude we should expect for this year?
No, we'll not give any number on the CapEx all.
Next question comes from Christian Madacru from UBS. Sir, please go ahead. Mr. Anilaku, your microphone is open. You can ask your question.
Maybe there is a problem with your microphone. Next question comes from Jenny Russo from ODDO. Madam, please go ahead.
You explain us how comfortable you are to get the authorization to pull the cable in December? And then what are following steps? And could you remind us your target in terms of sales EBITDA and the timing for Thanks a lot.
Okay. So on Elek Link, as mentioned, we have now a strong working relationship with them. And there was a meeting on October 8th. So they were recently. And during that meeting, the head of the France delegation of the IGC and the head of the UK delegation of the IGC board told us that the decision would be taken on December 10th.
So we have a working pro I'm in between, but, they were very confident that with everything that we give them, you know, that they now consider that all the file, all the documents that we gave them are comprehensive. They are not asking for new questions. They today that we get everything that we had to. So this is the first step. So now they are working as King, I mean, discussing with us, but there is nothing new.
So we are very confident that they will take the decision on that day. Of course, it's their decision. It's not ours. So, I cannot tell you that it's 1 over percent, but I can tell you that we are very confident given the current context of working. So once we have this a second authorization after the first one that we've just got about the power station.
We have 18 month of work, of holding the cable and then the final testings before the cable go live. We haven't changed our revenue forecast compared to the one that disclosed, I think for the first time in 2018, we are still on the same numbers, you know, that we test those numbers in a regular basis. And for the moment, the condition are still the same. So we still target the same EBITDA target as one that we initially communicated.
Thank you. Next question comes from Christian Nedercou from UBS. Please go ahead.
Hi. Thank you very much for taking my questions. If I may. The first one on the car shuttle pricing, I guess, what are the since learned from what you've seen over these last few months, in terms of the pricing strategy in the car shuttle on the mid and long term. And do you reckon that some of these price increases can be sustained for the next few years even after things normalize?
And the second one, I guess, just looking a bit at your headcount, I think in 2006, you had somewhere around 2300 employees. In 2019, you have around 3000 500. So your head count increased by 45%, while in the same time the shuttle volume were up 25% to 30% during that time frame. So I guess what explains that proportionate increase in headcount. I'm just trying to better understand the opportunity of cost optimization here going forward.
Thank you.
Okay. So, the first question was about the cash shuttle pricing. So you've seen that our yield increased over the past month. And here, two effects that are combining. The first one is people are booking later on their trips compared to last year.
1 and second, the mix of product that we sell is not the one that we sold in 2019, people go to more expensive products. For example, our flexible at, reached an 11% share of our sales, which was record compared to 2019. So those two effects are very important. What we have learned over the summer is that also people are willing to travel back if they can. Just after the end of the lockdown, we had record bookings for 5 weeks in a row, the best booking weeks ever, which is a very interesting and the lesson learned for us, which is that clients willing to come back.
So based on that, we, we are very confident about the future, but we also acknowledge that we must already understand what are the, the, you know, the new needs of our customers, with the COVID, with a few other factors, their needs might change in the future. So that's why we're working hard on, you know, trying to better and better understand their needs and to refine our pricing engine for the This is what I mentioned before. We'll have a new system in place early next year and you know that to capture all the value our customers, we absolutely need to segment them as finally as possible and to understand their willingness to pay. So this is what we are working on. And, yes, of course, this will help our yield going forward.
If I may add some comment, Jan, I would just mention that everyone knows the plus scheme and the investments we made, which are very profitable because in August, perhaps, the lockdown, which has been imposed by the business government, Flexi Plus Representing.
Shaq, we using you.
Hello? Jacques?
Yes. Jacques is online, but I think there is a problem with his microphone.
Okay. So while Jacques is reconnecting, I would say a few words about the second question The increase that was mentioned in, in, in staff is linked to the, Europe that joined the group in 2010. If we look at the period just for your auto renewal from 2006 to 20 19, the increase is +17 percent, which is lower than the increase of traffic.
Understood. Thank you very much.
Jack is not online for the moment. Maybe we'll be reconnecting
Let's take another question, maybe. Yes.
For the moment, we have no more questions. Ladies and gentlemen, just to
you.
We have a new question from Nadil Ahmed from Barclays. Sir, please go ahead.
Taking the opportunity. Can we discuss all the, the track shuttle as well? I think October November is usually the time where you're starting to have conversation with your customers, of next year's seeing, kind of this obviously a very unique environment in many ways, but how do you approach pricing in the current situations? And also, if you could say worried about the market share loss you experienced in the second quarter, whether that has changed in the third quarter, and how cost are responding to the various cross cutting measures that you might implement there.
Okay. So your first point was about the pricing for rights business, for next year. You're right. Discussion has started with our main customers. We don't change our global strategy regarding pricing, which is a reasonable increase year over year.
And so what we are planning this year. And with the first contact that we had with our customers, they understand. I mean, there is no specific issue to be, to be mentioned here. Of course, the discussion are a lot about what will happen on January, the they ask us a lot of questions, and they have identified that on the market, we are the one providing the, I mean, the best prepared and providing the best answers, we get even question from, from, holders that are not our clients today, which is very testing because that shows that we are the market leaders on that field. I'm not sure I fully understood your second question cost cutting, it's different from our relationship with our clients here.
We are just optimizing the way we operate internally. So this will have no impact, of course, on the service that we deliver to our client. Oh, yes. Sorry. There was also the question of the mark share of Q2, yes, which dropped a bit.
So what happened in Q2 is that when the the COVID started to spread, people, of course, were wondering how all of this would work. And, some drivers where not, I mean, not so confident about getting in the train with us or in a bus, when you go from your truck to your car. All of this has been addressed very quickly. So we have invested a lot in getting prepared for the COVID. So we have overhauled our buses and shrank.
So not an issue anymore. You see that our market share has raised against significantly over the summer and we even had a record market share in September are going to be trucks?
Perhaps two other comments. First of all, in Q2 theory operators have accepted the drivers remain in their truck. Which is against all the maritime rules. And we raised the point of the transport minister. And of course, this had changed impact has been quite important for a while.
At the same time, also the ferry operators were offering a free lunch all over the day for guys. So it was very attractive. So it is a kind of a business generate move from ferry operators to attract all ears and drivers. And obviously, It has not been a long enough because we recovered as it has been mentioned, our market share. I would like to add, but of course, we will have to look at in the future that as we already experienced, we could be we could benefit of a kind of stockpiling before end of the year, which is different, of course, from the year negotiations you are mentioning, but once again, such flexibility and the fact that we are ready to meet any requirements from our customers is a key strength in order to recover traffic and market share or to maintain at the best level.
So once again, flexibility is absolutely in our business and we can react very rapidly when we have decisions to make.
Okay. That was actually my next question. I mean, how do you read the plus 2% in September in trucks? I think there was possibly some calendar that, that's still the number, but are you experiencing pre Brexit deadlines stockpiling again? How do you think the next ones will fare in the truck business?
Yes, as mentioned earlier on, we will not close our, our forecast for the end of the year. But for sure, what we experienced between before I will be, 1st and 2nd Brexit is that, yes, there was a stock lighting effect. So that is one strong ability for the end of this year.
Next question comes from Charles Menardier from Kempen. Sir, please go ahead.
Hi, good morning. I just have one question on the dividend during H2 results, you mentioned that you were expecting to resume dividend payments in 2021. So could you confirm that this is still the case? And could you also give some color on the amount, that that you could be basically paying or on the policy that would be applicable by then?
Thanks. I take the lead of the answer, Jan and Geraldine, because it's a board decision, of course. At this point in time, the board has not consider any change on its policy, which means that, serving dividend remains priority for the board in order to consider shareholders. Clearly, of course, it will not be at the same amount we were used to deliver, of course. This decision has to be made, last in December, if we consider on 1st payment, 1st since 10 months of the final situation.
And the last decision regarding amount for potential dividend will be taken in the 28th April, 2021, at DAA. Having said that, you have in mind that we have a very strong cash position that we, as Geraldine said, we will consider any market opportunities in order to reinforce this cash position. So it depends on the amounts to come, except the fact that we are still in the mood to find something to serve dividends at the reasonable amount in order to grant shareholders.
Okay. Thank
you. Next, the question comes from Christian from UBS. Sir, please go ahead.
Thank you very much. Maybe 2, 2 follow ups, if I may. The first on a hard Brexit scenario, how do you see the impact on freight volumes? In particular, I know there are some product categories like food meets dairy that have high tariffs between 20% to 50%. So how do you see the impact on volumes there?
And equally, so how evaluate the risk of volumes moving away from the Dover straights roots to other alternative routes? And the second one on AeroStar, would you remind us what percentage of AeroStar traffic is business? And going forwards, do you have any estimates around what percentage of that business traffic is structurally impaired, by COVID-nineteen? And working from home and technology and so on? Thank you.
So you have two questions. The first one is about the Brexit and the impact on the freight volumes. So here, a few answers. The first one is that, the, the goods that are getting imported or getting exported to the UK or from the UK, already are subject to the change between, the currency change, the currency level between the euro and the pound. So, we are adding with the Brexit, if possible, we'll see a possible new, tariff change, but there are also some fluctuations with the currency.
So this is the first point. The second one, after all the Brexit discussion that we, that we see happening today. We can also expect the Unity Kingdom to be able to bounce back and not to let its economy getting down. You have seen all the measures on the free ports and other that are coming for sure. So we cannot make the bets that all of this will negative effects, they are leaving EU because they want to be stronger, especially economically wise.
So that's why, we are quite confident that the traffic will remain strong. As to Eurostar, We don't have the precise, level of business travelers, but it's a fair share of their traffic. So here, it's interesting point. Yes, for sure, with the COVID, but also with a video conferencing, we can expect on the long term. Some people not traveling anymore, you know, back and forth during one day from London to Paris and back from Paris to London.
This is for sure. At the same time, if we look at the history, history of mobility, everything that was encountered so far, whether this is in the past or new technologies, none of them had the impact of reducing, mobility over time. I would give one example, which is telephone, Defone in the past, even prevent people from traveling, even if they were able to communicate in a much better way. So, what is happening usually when, in such changes is that mobility stays, that the cash of mobility that we face is changing, meaning that, yes, business people might not travel as they were doing in the past to meet, for example, their own teams or to meet clients that they already know, but they are going to reinvest the time that they save to meet, for example, prospects, you know, that you can do a lot with a Skype or a team's meetings, but it's working well when already know people, when you want to have a new clients, when you meet, when you want to meet new prospects, of course, an and billing is better. And so for example, we can expect people change, the reason why they try all.
But if we look at history, there is no data supporting the fact that mobility could go down. So that's why we are also here confident that traffic, with bounce back for different reasons and everything that we doing currently at your terminal and getting more generally is to understand where this new mobility will be. So that's are for sure the first one to capture it.
Thank you very much.
Thank next question comes from Nikolas from Morgan Stanley. Sir, please go ahead. Is open. You can ask your question.
Yes. Good morning, guys. So just three questions, please. First one on, just on CapEx. And CapEx savings.
I mean, we understand you've been a bit more open with investors on the trajectory of CapEx over the next few years, especially on the heavy delaying a bit of the heavy maintenance and the truck shuttle rolling stock purchases. So could we see at least for the next 2, 3, 4 years, a meaningful, let's say, cut to the expected pickup in spending, especially for fixed name, let's say to the tune of, what, 1000000, 1000000 that you were expecting for 2020 the first question. 2nd one on the debt. You mentioned options especially potentially a refi of the green bond. I mean, this has been just issued, let's say, two and a half years ago.
Yes, the price was expensive. I just Can you walk us through a little bit on your thinking? What are you aiming to do? Just getting you expect cheaper price despite the current environment? Do you want more maturity just to understand a little bit what would be the incentives for you to deliver that on that refi?
And at that point, because of the lack of visibility. I mean, when I understand you don't want to be too, you don't want to guide on any savings, on any volumes and so on, but do you feel today broadly comfortable with the level of consensus EBITDA for the year 2020? So I think we're on 3 25 something you feel comfortable with the amount of data you have today on traffic and so on? Thank you.
Okay. So, I would think the first one about the CapEx. And by the way, also respond to your last question, we won't give any guidance here on the phone today as you have stood, and same for the CapEx level. But yes, everything that I have mentioned, we did mention it because we have internal targets that we are working on, especially regarding the cap So CapEx, as you know,
we
had some of them that we are not going to touch I mentioned beforehand, the one related to, to safety, regulatory reasons and also to to Brexit. So we keep that. But for the rest, we are taking all our CapEx projects and one by one, we'll review them. Of course, some of them are easy to modify to postpone or to reduce relative to the level of traffic that we have today. So there is a for some of them, a mechanical impact, but it's not all, what we are doing, we are also trying to optimize each of them, it's wondering each time if, you know, the time is the right one, wondering each time if we cannot with technology, with digital, with data, also optimize what we are doing.
And opportunity so that we can optimize CapEx. So to your question, yes, you will see the level of CapEx compared to previous plan be reduced in a manner that you would be able to see in our accounts. Charlene?
Just perhaps yes, I would like, of course, that we will not make savings and CapEx related to safety and in order to keep the high quality of the maintenance in the tunnel. So And on top of that, of course, some of the CapEx have already launched before the sanitary crisis happen. And so there is a kind of trend that we have to monitor. But also perhaps an additional comment on CapEx in 2020, Regarding Brexit, of course, we have some final investments to make and we made it. And so we may consider that in the amount of CapEx for 2020, we have an additional 1000000 to 1000000 on the franchise and perhaps 1,000,000 on the UK side.
And if we consider the total amount we invested for Brexit to be Brexit ready, 1st January. You may consider that both in 2019 2020, we have spent in French. In France, we have spent, let's say, more than 1,000,000. And of course, when we have the clear understanding of the full amount, let's say, end of November, December, we intend to claim the reimbursement of this 1,000,000 on the French side. And we claim the reimbursement of the additional £5,000,000 on the British side, keeping in mind that a great Britain has already paid such as £1,000,000 in 3 installments in order to deal with the Brexit adaptation of our terminals.
So The key issue is the fact that we hope that we can extract from the French government at least 1,000,000 of reimbursement. So CapEx has been in 'nineteen, 'twenty, CapEx has been looked at with such issue in mind. So next is on that.
So regarding refinancing. I am not going to comment this much further, as you may understand. I'm just going to say that we have an active and responsible financial management. There is an abundance of liquidity in the market. So it's normal that we are looking at functions, and we are looking to find the right balance between extra liquidity, economics and technical technical parameters of undistable operation.
Okay. All right. Thank you.
Thank you. Next question comes from Victorio Karimi from Alvento Capital Partners. Sir, please go ahead.
Hi, good morning. Thank you for receiving my call. A quick one on the debt, which kind of size of impact should expect on the reported debt at the end of the year due to the FX effect in terms of translation of the different tranches. And the second one is related to the slide. Oh, I don't know, sizable overrun in the CapEx in elaglink.
So what have been driving the increase of capital expected by the end of the project, please?
The I'm sorry, I'm not totally sure I understood the question, but, regarding the transfer between the trenches, I think at the Eurotonov the horizontal group level, I don't see a significant change. There is some of the debt, as you will know, but it's not going to change a lot of things. And regarding the rest of the debt, for now, we have 560,000,000 green bond issue at the top of gating.
Okay. And on Eleklinq, you were speaking about the cost. Yes, the cost went from a EUR 600,000,000 to EUR 685,000,000. This is a your mechanical effect with the delays of the project, you have in mind that adds with the IGC, sorry, what did I say? 665 That's it.
Yeah, this is pure consequence of the delays, on our side, the management of the project, there is no over cost due to any issues so far. So project management is strong. Unfortunately, the IGC delays have impacted our financials.
Okay. Thank you.
Thank you. Next question comes from Victor Astores from Societe Generale. Sir, please go ahead.
Hi, good morning. I have one question with the dividends. Regarding the waivers on the debt side. It's only the clarification on that. Is that you're available in the way to pay dividends when you have a covenant below 13 levels in 2021?
Thank you.
I'll take 1. So regarding dividends and waiver, again, I remind you that this is a topic for discussion with the board, but can say that the waivers agreement, that we have signed does not prevent any kind of dividend distribution.
So, Joe, so in order for clarification, you are able to pay?
The ability to pay regarding governance and dividend, we'll be related to the usual documentation that we have in place, in the company. But in the waiver, there's no impact yet
at all.
Yes, I think it's
a key point. Of course, we won't, by any means, to keep the facility to sell dividends even reduced. Of course, the consensus is very low. But really, it's a bold priority to pay both, of course, to pay dividends And so we are managing all the financial structure, the waivers and regulation freezers into that way to be able to keep a facility to, to serve dividends.
Thank you. Next question comes from Massin Wursdahl from Bank of America. Sir, please go.
Yes. Good morning. The first one is actually on your, gross cash position, I think 580,000,000 will you be able to disclose how much of that is actually within eurotunnel and how much of that sits at the get link holding company level, if you can make that distinction? And second question, this is related to fixed payments that you receive in your railway service, which I believe I think is around 1,000,000 per year. And I believe it's mostly from Eurostar Should we assume that there is still no risk to that payment?
Are you still confident that this is basically pretty, pretty stable revenue stream considering traffic recover is probably a bit slower than expected.
So on the first one, regarding the split, at the two levels, how there is roughly CHF 200,000,000 at the Gettlink Holding level and CHF 400,000,000 in the euro Tanesha group.
Okay. And regarding the fixed payments of your stuff, so first, you're right, the payers and amounts, which is in the magnitude of 1 1,000,000. Then, so the contract that we have with them as a different mechanism, but some of them in a neck one of them, which is linked to power will, of course, change If they run less trains, we are going to charge them less power consumption. So mechanically, the is going to be reduced. And then they also pay a share of the CapEx investment we make.
And so if we save money, thanks to our CapEx plan, share mechanically see also their share is going to drop. So the contract is there is said, it's strong and stable, but due to less services, Orion and due to CapEx savings, we can expect a slight decrease in the amount that they pay us over the next month.
Could I follow-up here? Are those meaningful reductions or these are not, are we talking 10,000,000 or much more than that?
Well, I won't enter into the details. The main part, which is flexible, again, is the power that they consume. Okay.
Okay. Thank you.
Thank you. We have no more questions for the moment, ladies and gentlemen, Thank
you.
Excuse
saying that there is no further questions?
No, there is no other question.
Okay.
There is no other question. Thank you all for your attention. The next publication is on November 5th with our traffic. Jack, we want to add a word?
There's no just to say that we have been pleased to, explain where we are. You know that we are keen of transparency. We have been awarded for such transparency. I think we are delivering more information than some other competitors and perhaps on the official in that matter. I would assume it's still available to answer to your questions, Mike and Jean Baptiste, of course.
And we really are comfortable even if we are in a tough time, which is quite reduced. But once again, transparency and confidence are the 2 materials of the company. Thank you very much. Have a nice day. Bye.
Thank you, ladies and gentlemen. This concludes the conference call. Thank you all for your participation. You may now disconnect.