Ssp Group Plc · LSE:SSPG
Ssp — H1 2021 Earnings Presentation
32 slides from Ssp's earnings presentation, Jun 9, 2021
Slide 1: Interim Results 2021
The Food Travel Experts Interim Results 2021 www.foodtravelexperts.com
Slide 2: Presentation structure
Presentation structure 1. Group highlights Simon Smith 2. Financial review Jonathan Davies 3. Business review Simon Smith 4. Q&A All 2 SSP: The Food Travel Experts
Slide 3: Group highlights: First half 2021
Group highlights: First half 2021 • Resilient first half performance, despite H1 sales -80% v 2019 • Operating profit conversion c. 22% on the lost sales, ahead of previously indicated range of 25% - 30% • Underlying cash usage of £130m, averaging £22m cash burn per month, ahead of previously indica
Slide 4: Financial review
Financial review Interim Results 2021 Jonathan Davies, CFO SSP: The Food Travel Experts
Slide 5: Group financial overview
Group financial overview H1 2021 H1 2020 Reported Pre IFRS 16 Reported Pre IFRS 16 £m (IFRS 16) basis (IFRS 16) basis Revenue 256.7 256.7 1,214.6 1,214.6 LFL Sales Growth (79.0)% n/a (8.4)% n/a EBITDA* (42.3) (110.3) 197.5 56.2 Operating (Loss)/Profit* (226.6) (160.7) (5.8) 1.3 Loss Before Tax* (260
Slide 6: Underlying H1 Operating Loss of £161m (pre IFRS 16 basis)
Underlying H1 Operating Loss of £161m (pre IFRS 16 basis) H1 2021 £m Reported (IFRS 16) Pre IFRS 16 basis Revenue 256.7 256.7 Gross Profit 185.5 185.5 % Sales 72.2% 72.2% Labour Costs (146.6) (146.6) % Sales (57.1)% (57.1)% Concession Fees (28.2) (85.0) % Sales (11.0)% (33.1)% Overheads (53.0) (64.2
Slide 7: Underlying H1 Net Loss of £161m (pre IFRS 16 basis)
Underlying H1 Net Loss of £161m (pre IFRS 16 basis) H1 2021 Reported Pre IFRS 16 £m (IFRS 16) basis Operating Loss* (226.6) (160.7) Net Financing Cost* (34.8) (21.2) Share of Associates 0.5 (0.1) Loss Before Tax* (260.9) (182.0) Tax* 24.5 17.1 Non-Controlling Interests* 14.2 3.7 Net Loss* (222.2) (1
Slide 8: Non-Underlying items (IFRS 16)
Non-Underlying items (IFRS 16) £m P&L Charge Cash flow Impairments and accelerated depreciation Tangible Assets (26.6) - Intangible Assets (3.1) - IFRS 16 Covid rent waivers 53.3 53.3 Restructuring costs (9.8) (9.8) Amendment and extension fees re bank loans* (5.4) (5.4) Other (1.7) (0.8) Operating
Slide 9: LFL Sales down 79% in H1
LFL Sales down 79% in H1 (vs 2020) FY20 FY21 Q3 Q4 H2 Q1 Q2 H1 -70.0% LFL Sales Decrease % YOY -75.0% -78.3% -79.0% -80.0% -79.6% -79.6% -79.6% -81.3% LFL vs 2019 -85.0% -86.2% -90.0% -93.4% -95.0% Note: Same store like-for-like sales growth at constant currency vs 2020 (unless otherwise indicated)
Slide 10: Revenue progression by region (vs 2019)
Revenue progression by region (vs 2019) 60% North America 53% 50% 40% % of 2019 sales Continental Europe 30% 29% 25% UK 20% 17% Rest of World 10% 0% October November December January February March April May Latest Week* *Week ended 6 June 2021 10 SSP: The Food Travel Experts
Slide 11: Impact of Covid-19 on H1 sales and profit
Impact of Covid-19 on H1 sales and profit Sales Operating Profit/ (Loss)* 1,400 200 £1,262m £-1,005m 1,200 150 22% drop-through on sales impact 1,000 100 £62m 50 800 0 £m £m 600 -50 400 -100 £257m 200 -150 £-223m £-161m 0 -200 H1 FY19 H1 Covid impact H1 FY21 H1 FY19 H1 Covid impact H1 FY21 *Underlyi
Slide 12: Underlying H1 EBITDA loss of £110m (pre IFRS 16 basis)
Underlying H1 EBITDA loss of £110m (pre IFRS 16 basis) H1 cost £m H1 2021 H1 2019 YoY (vs 2019) savings % Revenue 256.7 1,261.6 (1,004.9) Gross Profit 185.5 892.2 (706.7) Labour % Sales 72.2% 70.7% 1.5% 61.9% Labour Costs (146.6) (385.1) 238.5 % Sales (57.1)% (30.5)% (26.6)% Concession fees Concessi
Slide 13: Underlying H1 Free Cash outflow £130m
Underlying H1 Free Cash outflow £130m £m H1 2021 H1 2020 EBITDA* (110.3) 56.2 Working Capital 22.1 (45.1) Capital Expenditure (25.2) (119.5) Net Tax (0.4) (20.1) Acquisitions - (26.9) Other (0.4) (12.4) Underlying Operating Cash Outflow* (114.2) (167.8) Net Financing Costs (16.1) (9.1) Underlying Fr
Slide 14: Net Debt £840m (pre IFRS 16 basis)
Net Debt £840m (pre IFRS 16 basis) H1 H1 £m 2021 2020 Net Debt at start of period (692.0) (483.4) Underlying Free Cash Flow (130.3) (176.9) Exceptional restructuring/ other costs (10.6) - Net proceeds from March 2020 equity raise - 208.6 Other non-cash movements (6.7) (6.0) Net Debt at end of period
Slide 15: £854m Pro forma Liquidity post Rights Issue
£854m Pro forma Liquidity post Rights Issue £m Cash at end of March 2021 240 Undrawn RCF 150 Undrawn Local Facilities 13 Rights Issue (Net proceeds) 451 Pro forma Liquidity post Rights Issue 854 CCFF repayment (February 2022) (300) Pro forma Liquidity post CCFF repayment 554 Current monthly cash bur
Slide 16: Medium Term Outlook
Medium Term Outlook • Despite ongoing volatility in the near term, our base case expectation is for travel market to recover to near pre- Covid levels in the medium term • LFL revenue expected to fully recover to 2019 levels by FY2024 (recovery of passenger numbers as well as inflation) • Current pi
Slide 17: Business Review
Business Review Interim Results 2021 Simon Smith, CEO SSP: The Food Travel Experts
Slide 18: Delivering for all our stakeholders
Delivering for all our stakeholders Our Vision To be the leading food and beverage provider in travel locations worldwide delivering for all our stakeholders in a way that ensures long term sustainable growth Strategic pillars to deliver our ambition for all our key stakeholders Deliver profitable g
Slide 19: Building on our Corporate Responsibility Strategy
Building on our Corporate Responsibility Strategy People & Communities What we Serve Protecting Our Planet Global Engagement Survey Healthier choices: UK Partnering with food waste apps: France More vegetarian/ vegan options: Mental Health Awareness training Donating food: Thailand Nordics 19 SSP: T
Slide 20: Phased response to COVID and progress towards sustainable growth
Phased response to COVID and progress towards sustainable growth Post-Covid Covid Travel Environment environment Business Protection Hibernation Recovery Sustainable Growth Key achievements Key achievements Key achievements Priorities • New safety protocols • Temporary unit closures • Adapted operat
Slide 21: Proven strategy to deliver long-term sustainable growth
Proven strategy to deliver long-term sustainable growth Same Store Sales Growth Business Development Efficient Conversion Covid learnings • Reopen units; drive profitable • Contract renewals & extensions • Focused & flexible range sales Simplified ranges; consumer focussed • Mobilise existing pipeli
Slide 22: Regional review: UK & Ireland and Continental Europe
Regional review: UK & Ireland and Continental Europe UK & Ireland Continental Europe • Sales currently c. 25% of pre COVID level • Sales currently c. 30% of pre COVID level • Driven by rail, air just starting to re-open • Predominantly domestic travel; potential for short haul • c. 230 units open cu
Slide 23: Regional review: North America and Rest of the World
Regional review: North America and Rest of the World North America Rest of the World • North America sales >50% of pre COVID level: USA, c60% • Sales currently less than 20% of pre COVID level • Driven by domestic leisure travel; slower recovery in business • Driven by domestic leisure travel; but f
Slide 24: North America: current context
North America: current context Air passenger levels vs 2019 Key trends 20% Fast recovery in domestic travel 0% -20% More people/ families travelling for leisure -44% -40% Domestic Flight schedules concentrated -60% -81% “Mix” changes impacting customer behaviour, -80% International e.g. indulgence -
Slide 25: North America: systematic approach to re-opening
North America: systematic approach to re-opening Recent re-openings Analytical process Zone analysis Sales & profitability St Pete Clearwater Seattle evaluation Range & commercial initiatives Chicago Midway Salt Lake City Daily sales profitability report New sales opportunities JFK Indianapolis 25 S
Slide 26: North America: Covid learnings improving unit profitability
North America: Covid learnings improving unit profitability Actions taken Examples Rent renegotiations Cost of sales reconstruction Condensed simplified menus Simplified menus Brand swaps Range opportunities & promotions Order at Table and Virtual Kiosk roll out Brand swaps Promotions Digital roll-o
Slide 27: Continental Europe: contract extensions and new contract wins
Continental Europe: contract extensions and new contract wins Extensions and improved terms New contract wins • Contract with • 10 year contract Swedavia for 8 units won renewed; multiple at La Martinique unit extensions Airport, French WI • Revised terms & post-Covid • c. 2 million opening plan ann
Slide 28: Continental Europe: competitive environment and adjacent business opportunities
Continental Europe: competitive environment and adjacent business opportunities Competitor outlets Adjacent businesses • Agreement to • Expansion of operate two Togservice on- Starbucks units at board rail catering Zurich Airport from Norway into Sweden • Agreement to • In-flight catering operate Go
Slide 29: Significant business development activity
Significant business development activity • Significant activity to extend and renew contracts Contract Renewals • Preferential terms secured and Extensions • Including: Goa Airport, Suvarnabhumi (Thailand), Tromso Airport, London Waterloo and Liverpool St stations Goa Suvarnabhumi Waterloo • Open e
Slide 30: Summary and Outlook
Summary and Outlook Summary & Outlook Medium Term Priorities • Resilient first half performance given challenging conditions • Re-open units in line with demand • EBITDA losses and cash burn minimised. • Optimise offer; drive profitable sales • Significant £854m proforma liquidity at the end of H1.
Slide 31: Q&A Interim Results 2021
Q&A Interim Results 2021 SSP: The Food Travel Experts
Slide 32: Disclaimer
Disclaimer Certain statements in the presentation may constitute “forward-looking statements”. These statements reflect the Company’s current beliefs and expectations and are based on numerous assumptions regarding the Company’s present and future business strategies and the environment the Company