Statement re investor day

23 January 2014

                                FIRSTGROUP PLC                                 

                                 INVESTOR DAY                                  

FirstGroup plc ("FirstGroup" or "the Group") will be making a series of
presentations to institutional investors and analysts in London today, during
which the Group will review its plans to generate long term sustainable value
for shareholders. The presentation will be available on our website, 
www.firstgroup.com, later today.

Further to the medium term targets set out in May, including for revenue,
margin and return on capital, the Group will set out further details of its
plans, as follows:

  * The Group aims to increase Group revenue (excluding UK Rail) at a faster
    rate than the economies we serve, through careful investment in our
    passenger revenue-based services, and disciplined bidding in our
    contract-based businesses.
   
  * First Student will improve margins to double digit levels over the medium
    term through the continued delivery of cost savings, the disciplined
    management of returns and profitable growth.
   
  * UK Bus will improve margins to double digit levels through further cost
    optimisation from more disciplined operations; market-by-market
    improvements to our networks and fares structures to drive improved volume
    growth; and further investment in our bus fleets and technology to improve
    customer experience.
   
  * Greyhound has significantly improved the flexibility of its operating model
    and the successful expansion of Greyhound Express continues. As we continue
    our programme to modernise the traditional Greyhound network, we are
    upgrading our technology infrastructure to improve yield management, offer
    real-time pricing and provide more consumer friendly ticketing. Greyhound
    is now targeting a margin of approximately 12% in the medium term.
   
  * First Transit will continue its market leadership and record of growth
    while maintaining margins.
   
  * In UK Rail we will participate in a range of future franchise competitions
    to achieve profit and risk on a par with the last round of franchising,
    based on our expertise as the operator of the largest and most varied
    portfolio of UK rail franchises.
   
  * Overall the Group's objective is to achieve a post-tax return on capital
    employed (ROCE) in the range of 10% to 12% in the medium term, compared to
    7.6% in the 2012/13 financial year.
   
  * We also aim to maintain an investment grade credit rating and appropriate
    balance sheet liquidity and headroom. The Group expects net debt : EBITDA
    of approximately 2.2 times at the end of the current financial year, and is
    targeting net debt : EBITDA of 2 times in the medium term.
   
The Group released its third quarter Interim Management Statement on 17 January
2014 and consequently no further update on current trading will be given during
the presentations.

Tim O'Toole, Chief Executive, said: "I am confident we are on the right track
to increase the resilience of the Group and improve returns and growth
prospects for the benefit of all our stakeholders. While there remains a
significant amount to be done, we are making progress in returning to the
strength necessary to drive sustainable, long term shareholder value."

Contacts at FirstGroup:

Rachael Borthwick, Group Corporate Communications Director

Faisal Tabbah, Group Investor Relations Manager

Stuart Butchers, Group Media Relations Manager

Tel: [phone] / 0512

Brunswick PR: Michael Harrison/Andrew Porter, Tel: [phone]