Avolta Ag · SIX:AVOL
Avolta — Dufry — H1 2015 Earnings Presentation
30 slides from Avolta's earnings presentation, Jul 29, 2015
Slide 1: First Half 2015 Results
p DUFRY First Halt 2015 Results
Slide 2: Legal disclaimer
Legal disclaimer Information in this presentation may involve guidance, expectations, beliefs, plans, intentions or strategies regarding the future. These forward-looking statements involve risks and uncertainties. All forward-looking statements included in this release are based on information avai
Slide 3: Agenda
Agenda Highlights Financials Conclusion
Slide 4: Highlights HY 2015
Highlights HY 2015
Slide 5: Solid operational performance despite volatility in currencies
Solid operational performance despite volatility in currencies • Turnover of CHF 2,229.2 million; growth of 30.5% – Organic growth* of -2.6% • Like-for-Like of -2.9% CHF 2,229.2 • New concession, net* of +0.3% million • Gross profit increases to CHF 1,291.0 million with a margin of Turnover in HY 20
Slide 6: Weakening of Local Currencies in HY 2015
Sales impact of spent by selected nationalities at global level Weakening of Local Currencies in HY 2015 90% Devaluation of local 80% 79% currencies impacts 70% (YoY variation) 60% purchasing power of 50% 51% 38% selected nationalities 40% 26% 30% 21% 18% 20% 14% 13% 11% 11% 10% Sales to Russians an
Slide 7: Turnover performance by region
Turnover performance by region EMEA & Asia* America I 7% 12% 10% 2% 10% Double-digit growth -3% 8% 8% (Turnover growth) (Turnover growth) in US & Canada -8% -3% 6% 4% -13% 2% 2% -14% -18% 0% CHF based on local CHF USD based on local currencies Good performances * Excludes discontinued operations cur
Slide 8: Shop refurbishment: Increase sales on an annual basis
Shop refurbishment: Increase sales on an annual basis • Ongoing tri-annual plan affecting approx. 200 stores, 15-20% which generate nearly 50% of group sales sales increase • Refurbishment plan covers around 20% of retail space for each refurbished (FY 2014). store • Sales for each refurbished store
Slide 9: Dufry's segmentation
Dufry’s segmentation Dufry by Region HY 2015 Dufry by Category HY 2015 Literature and Publications Other Well balanced EMEA & Asia 4% 5% Perfumes and 21% Electronics geographic Nuance 27% 5% cosmetics 27% diversification Tobacco goods 10% Airports remain America I 18% Wine and Spirits major channel
Slide 10: Good prospects for PAX growth in the next years
Good prospects for PAX growth in the next 3 years Global International PAX Growth in HY 2015* 10% 4.4% 8% Average global 6% 9.8% 9.6% passenger growth 4% 7.1% p.a. in the 2% 4.8% 5.1% 2.7% next 3 years with 0% regional differences Source: Airports Council International (ACI) * Until May Evolution of
Slide 11: Opening of new retail space
Opening of new retail space Openings HY 2015 EMEA & Asia 50% 2,800 m2 America I 12% of additional retail space opened in HY 2015 United States & Canada 5% 38% average space Evolution New Retail Space contribution from 30,000 net openings from 25,000 2009 to 2014 20,000 (Square meters) 15,000 10,000
Slide 12: Strong project pipeline
Strong project pipeline 26,200 m2 Signed Space Project Pipeline: 33,000 m2 America I EMEA & Asia 6,000 26,200 m2 22% America I 4,600 EMEA & Asia 39% additional retail America II 9,200 space already signed United States & Canada 4,000 America II 8% for opening Nuance 2,400 0 2,500 5,000 7,500 10,000
Slide 13: 2015: The year of Nuance integration
2015: The year of Nuance integration 1 Pre-Close 2 Taking control 3 Integration CHF 70 million Set Integration teams Take over & Plan for Deliver Integration, and Prepare Plans Preserve Value Integration Synergies & Growth of synergies confirmed 3 months 8 weeks 10 weeks 15-21 months Implementation
Slide 14: Update on World Duty Free acquisition
Update on World Duty Free acquisition At the Ordinary General Meeting of 29th April, Dufry Capital shareholders have accepted capital increase for the increase acquisition of WDF announced on 30th March 2015 approved by Dufry Rights issue at market successfully executed with the shareholders raising
Slide 15: Transaction timetable
Transaction timetable Expected transaction timeline March April May June Q3 2015 Q4 2015 Closing Announcement of Edizione transaction expected for Q3 according to plan GM Rights issue execution MTO expected to be Bond issuance launched in Q3 2015 Closing of Edizione transaction Start of WDF consolid
Slide 16: Combined integration timeline Nuance and WDF
Combined integration timeline Nuance and WDF Expected integration plan timeline 2015 2016 2017 18-24 months Complete Nuance Integration to integrate WDF into Dufry’s regional WDF Acquisition & Integration structure Closing for WDF acquisition expected in Q3 2015 Phase 1: Integration of WDF’s busines
Slide 17: Complementary footprint of Dufry and WDF
Complementary footprint of Dufry and WDF Global presence of Dufry and WDF Excellent balance between emerging and developed markets Presence of Dufry (incl. Nuance) Presence of WDF Pro forma presence of Dufry (incl. Nuance) and WDF First Half 2015 Results 30 July 2015 17 Source: Company filings, WDF
Slide 18: Financials HY 2015
Financials HY 2015
Slide 19: Analysis of turnover growth
Analysis of turnover growth Growth Components HY 2015 35% 1.4% 30.5% 25% 30.5% 15% Turnover growth 31.7% 29.1% 5% -2.9% -2.6% +0.3% -5% * Organic growth excludes discontinued operations ** Changes in scope include acquisitions plus discontinued operation Turnover by Currency* EUR 22% Other** 25% Fir
Slide 20: Aggregated FX development
Aggregated FX development Main Currencies Development – HY 2015 -20% -10% 0% 10% • Ongoing high volatility in Dufry generates most emerging market currencies of its sales and costs 2.8% Q1 -12.2% Weighted average • Main currencies against in matching foreign 6.8% CHF trading in broad range EUR/CHF c
Slide 21: Income statement
Income statement Income Statement HY 2015 (CHF million) HY 2015 % HY 2014 % Turnover 2,229.2 100.0% 1,707.9 100.0% Nuance consolidation Gross profit 1,291.0 57.9% 1,011.1 59.2% impacting all Concession fees (544.4) 24.4% (375.6) 22.0% elements of P&L Personnel expenses (343.1) 15.4% (274.1) 16.0% Ot
Slide 22: Cash earnings per share
Cash earnings per share Cash Earnings per Share 3.00 Cash EPS excluding 2.50 2.51 2.49 one-offs from WDF 2.00 1.91 acquisition flat (CHF) 1.50 1.00 0.50 Pro-forma Cash EPS 0.00 is adjusted for one- HY '14 HY '15 Reported Pro-Forma adjusted for WDF non-recurring costs offs from acquisition activities
Slide 23: Balance sheet
Balance sheet Balance Sheet (CHF million) 30.06.2015 31.03.2015 Variation PP&E 402 413 -11 Intangible assets 4,224 4,389 -165 Assets are mainly Other non current assets 119 124 -5 related to Intangible Net Working Capital 403 432 -29 Other current assets 223 240 -18 assets generated by acquisitions
Slide 24: Cash flow statement
Cash flow statement Cash Flow Statement (CHF million) HY 2015 HY 2014 EBITDA before other operational result 236.7 221.4 H1 is the least Other operational items (1.1) (9.2) Cash flow before working capital changes 235.6 212.2 semester of the year, Changes in net working capital (32.4) (40.6) due to
Slide 25: Capex & Net Working Capital
Capex & Net Working Capital Capex Evolution 320 5.9% 6.0% Capex returning to 280 4.7% 5.0% Capex (as % of Turnover) Capex (CHF million) 240 historical levels after 3.5% 3.9% 4.0% 200 expansion plan 160 2.8% 3.0% executed in 2014 120 2.0% 198 80 140 112 101 1.0% 40 62 0 0.0% 2012 2013 2014 HY '14 HY
Slide 26: Financing & Covenants (1)
Financing & Covenants (1) Net Debt Evolution 2,600 2,400 2,280 Solid financial 2,200 2,000 1,755 1,800 structure (CHF million) 1,600 268 1,400 1,200 2,132 with slight decline 1,000 2,181 2,355 2,368 1,753 1,726 800 1,487 in net debt 600 400 200 0 148 Dec 13 Mar 14 Jun 14 Sep 14 Dec 14 Mar 15 Jun 15
Slide 27: Financing & Covenants (2)
Financing & Covenants (2) Covenants Evolution 4.25 4.50 4.50 4.50 4.50 4.50 4.25 4.50 4.00 4.00 4.00 4.00 (Net Debt/Adjusted EBITDA) Leverage ratio 4.00 3.50 3.00 3.67 3.66 3.70 3.61 3.40 significantly below 2.50 3.12 3.27 2.00 covenant levels 1.50 1.00 0.50 0.25 0.00 Covenants Actual Threshold* Act
Slide 28: Conclusion
Conclusion
Slide 29: Delivering of synergies of Nuance integration
Delivering of synergies of Nuance integration • Nuance integration will be the priority for 2015 Nuance integration – Integration being executed at all organizational, commercial to be completed and operational levels by end 2015 – Integration to be completed as per end 2015 as planned – CHF 70 mill
Slide 30: Thank you
Thank you