Pre-Close Trading Update

29 April 2015

Stagecoach Group plc

Trading update

Stagecoach Group plc is pleased to provide an update on its trading ahead of a series of meetings with equity analysts. Recent trading has been consistent with our expectations and there is no change to the adjusted earnings per share that we are anticipating for the year ending 30 April 2015.

Revenue growth

Like-for-like revenue growth for the financial year to date in each of the Group's main businesses is provided below.

UK Bus (regional operations)

Our regional UK Bus Division is trading in line with our expectations with continued revenue growth. We have seen modest year-to-date growth in passenger journeys. We are pleased that the forecast reduction in our fuel costs has enabled us to keep fare increases for the year ahead to a minimum, consistent with our long-term objective to grow passenger volumes through our value fares strategy and notwithstanding increases to staff and other costs.

In mainland Europe, we have recently commenced domestic megabus.com coach services within Germany. We are now progressing plans for a new Cologne-Lyon-Barcelona service as well the first megabus.com services within Italy. These new services are in addition to our existing international services connecting the UK, France, Spain, Germany, Belgium, Luxembourg and the Netherlands. We have been encouraged by the progress of megabus.com in mainland Europe and we remain excited about its future prospects. In the short-term, as we continue the expansion of this promising business, we would expect operating losses to increase from around £5m in 2014/15 to around £10m in 2015/16. This is based on our previous experience of megabus.com start-up operations, where we invested in expanding the business in the early years of megabus.com in each of the UK and North America, which are now strong, profitable businesses.

UK Bus (London)

The UK Bus (London) Division continues to perform well. Revenue growth is consistent with our expectations and reflects the profile of the contracts that the Division has with Transport for London.

UK Rail

Like-for-like revenue growth in UK Rail remains strong. We began operating the new Virgin Trains East Coast rail franchise on 1 March 2015 and we are pleased with its progress so far. The new franchise is expected to make a significant operating profit contribution in the year ending 30 April 2016, reflecting our programme of investment to grow the business by transforming the customer experience. There will also be additional finance costs (in respect of pensions and bonding arrangements) related to the franchise.

North America

The 1.0% like-for-like revenue growth for North America includes 8.1% for megabus.com, where the significant drop in fuel prices has resulted in a marked slowing of revenue growth. We remain cautious on the short-term prospects for megabus.com revenue growth as the year-on-year fuel price drop persists. We are not planning any significant expansion of our North America megabus.com operations in the coming months but will re-assess the further growth opportunities for the business in the second half of the year ending 30 April 2016.

Virgin Rail Group

Virgin Rail Group is seeing a continuing strong performance from its West Coast rail franchise and that is set to benefit taxpayers through profit share payments by the business to the UK Department for Transport.

Twin America

We are pleased that a settlement has now been agreed in principle with the US Department of Justice and the New York Attorney General's office in respect of the previously reported anti-trust litigation relating to the Group's joint venture, Twin America. The settlement envisages cash payments by the defendants of US$7.5m and the relinquishment of certain bus stop rights. We have previously recognised costs associated with the litigation as exceptional items. We anticipate that the Group's share of the additional costs associated with this settlement will not exceed £3m and that these will be recorded as exceptional items in the second half of the year ending 30 April 2015. The settlement with the US Department of Justice and the New York Attorney General's office remains subject to court approval, following a public consultation and comment process. We will continue to co-operate fully with the authorities in relation to any further matters related to the Twin America litigation.

Twin America's management will now focus on seeking to re-build the business in the highly competitive New York tourism and sightseeing market.

Preliminary results

The announcement of the Group's preliminary results for the year ending 30 April 2015 is currently planned for Wednesday 24 June 2015.

Further information

For further information, please contact:

Notes

(1) Like-for-like revenue growth is derived, on a constant currency basis, by comparing year-to-date revenue with the equivalent prior year period for those businesses and individual operating units that have been part of the Group throughout both periods.

(2) This announcement contains certain forward-looking statements with respect to the financial performance, financial position and businesses of Stagecoach Group plc. These statements and forecasts involve risk, uncertainty and assumptions because they relate to events and depend upon circumstances that will occur in the future. There are a number of factors that could cause actual results or developments to differ materially from those expressed or implied by these forward-looking statements. These forward-looking statements are made only as at the date of this announcement. Except as required by law, Stagecoach Group plc has no obligation to update the forward-looking statements or to correct any inaccuracies therein.