Slide 1: Dufry Presentation – HY 2011 Results
Board of Directors Zurich, 24 March, 2009 Dufry Presentation – HY 2011 Results August 2011 1
Slide 2: Legal Disclaimer
Board of Directors Zurich, 24 March, 2009 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
Slide 3: Agenda
Board of Directors Zurich, 24 March, 2009 Agenda 1. Update HY 2011 Performance 2. Key Figures HY 2011 3. Dufry Strategy 4. Financials 5. Conclusion 3
Slide 4: 1. Update HY 2011 Performance
Board of Directors Zurich, 24 March, 2009 1. Update HY 2011 Performance 4
Slide 5: Update HY 2011: Overview
Board of Directors Zurich, 24 March, 2009 Update HY 2011: Overview 1) Strong operational performance continues 2) Passenger development 3) Operations and Resources development 4) New projects and expansions 5) Main events HY 2011 6) Trading update 5
Slide 6: Update HY 2011 (1)
Board of Directors Zurich, 24 March, 2009 Update HY 2011 (1) Dufry’s strong performance continues in the first half of 2011 – 10.2% turnover increase on constant FX rates – Organic growth of 7.9%, excluding specific situations (still political turmoil in North Africa and Mexicana Airline bankruptcy)
Slide 7: Update HY 2011 (2): Passenger Development
Board of Directors Zurich, 24 March, 2009 Update HY 2011 (2) Passenger Development International PAX Growth HY 2011* Expected International PAX Growth for FY 2011 10% 15% 7.3% 7.0% 7.0% 10.4% 5.9% 5.8% 9.3% 4.5% 10% 7.3% 5% 6.6% 5.4% 5.1% 5% 0% 0% -5% -5% -10% -10% -15% -11.5% -14.6% -15% -20% Sourc
Slide 8: Update HY 2011 (3): Operational Development
Board of Directors Zurich, 24 March, 2009 Update HY 2011 (3) Operational Development - New customer research Sales / Productivity - New website Customer - Assortment - Improving in-store optimization + pricing merchandise policy - Global Procurement - Global Promotions Plan Committee Gross Margin -
Slide 9: Update HY 2011 (3): Resources Development
Board of Directors Zurich, 24 March, 2009 Update HY 2011 (3) Resources Development Sales / Customer / - New ERP integrated Productivity - Optimized reporting with Dufry Global and global dash board applications Operational Performance Cash / Working - Global Cash Pool + Capital Cash Flow forecasting
Slide 10: Update HY 2011 (4): New Projects and Expansions (1/2)
Board of Directors Zurich, 24 March, 2009 Update HY 2011 (4) New Projects and Expansions (1/2) Changes in the Retail Space in HY 2011 Additional Gross New Space Signed in 2011 Opened Closed Net 6,000 Region space space Effect 5,007 5,000 Europe 691 311 380 4,000 Africa 127 54 73 3,000 2,561 2,351 2,
Slide 11: Update HY 2011 (4): New Projects and Expansions (2/2)
Board of Directors Zurich, 24 March, 2009 Update HY 2011 (4) New Projects and Expansions (2/2) Project Pipeline Main New Concessions Africa 1% Europe Eurasia • China: Chengdu 6% 36% – 26 shops ; 2,240 sqm North America – Duty paid with brand boutiques, specialty shops 13% and Hudson News South Ameri
Slide 12: Update HY 2011 (4): Acquisitions Summary
Board of Directors Zurich, 24 March, 2009 Update HY 2011 (4): Acquisitions Summary Banks Argentina Add-on Facility of (Interbaires) USD 1,000 million Armenia, Ecuador Payment of and Uruguay USD 957 million Martinique Wholesale Co. (Uruguay) • Dufry signed four agreements to acquire operations in fiv
Slide 13: Update HY 2011 (4): Overview New Businesses
Board of Directors Zurich, 24 March, 2009 Update HY 2011 (4): Overview New Businesses New Operations Geographic Locations (USD million) LTM '11 (1) Revenues (2) 395.0 Martinique Armenia Ebitda (2) 96.5 (2) Ebitda margin 24.4% Note: (1) Last twelve months ending in May (2) Pro-Forma combined numbers
Slide 14: Update HY 2011 (4): Acquisitions Rationale
Board of Directors Zurich, 24 March, 2009 Update HY 2011 (4): Acquisitions Rationale 1 Emerging Market locations with high growth potential 1. – Complementary to operations in South and Central America and Eurasia 2 Highly profitable operations 2. – Pro-Forma EBITDA margin well above 20% when combin
Slide 15: Update HY 2011 (5): Main Events
Board of Directors Zurich, 24 March, 2009 Update HY 2011 (5) Main Events – Africa: conditions still affected by political turmoil – Egypt: showed an important recovery in the second quarter – Tunisia: upturn still modest – Ivory Coast: Started to recover – Eurasia: still affected by shops reposition
Slide 16: Update HY 2011 (6): Trading Update
Board of Directors Zurich, 24 March, 2009 Update HY 2011 (6) Trading Update – July and August continue with strong performance – Further improvements expected in Africa and Mexico – Acquisitions – Acquisitions announced this month will be included in the consolidated financial statements from August
Slide 17: 2. Key Figures HY 2011
Board of Directors Zurich, 24 March, 2009 2. Key Figures HY 2011 17
Slide 18: Key Figures HY 2011
Board of Directors Zurich, 24 March, 2009 Key Figures HY 2011 HY Turnover and EBITDA Evolution 10.2% 1,600 -6.8% 1,398 1,400 1,268 1,268 1,181 • Turnover at constant FX rates 10.2% to 1,200 CHF 1,397.5 million (CHF million) 1,000 800 600 • Gross margin improved to 58.0% from 17.4% 400 -3.9% 57.0% 15
Slide 19: 3. Dufry Strategy
Board of Directors Zurich, 24 March, 2009 3. Dufry Strategy 19
Slide 20: Expanding Leading Position Globally
Board of Directors Zurich, 24 March, 2009 Expanding Leading Position Globally North America Europe Turnover: CHF 756 million Turnover(1),(3): CHF 323 million Retail Space: 51,300 sqm Retail Space(3): 20,800 sqm Eurasia Turnover(1),(3): CHF 247 million Retail Space(3): 13,300 sqm Central America Afri
Slide 21: Dufry's Segmentation
Board of Directors Zurich, 24 March, 2009 Dufry’s Segmentation Dufry by Region 2003 Dufry by Region HY 2011 Developed Markets Europe 13% Europe North America Africa 45% 29% 5% Africa Eurasia 16% 8% CAGR 03-10: 21% North America Central Eurasia 7% America & Central 16% South Caribbean America America
Slide 22: Dufry's Segmentation
Board of Directors Zurich, 24 March, 2009 Dufry’s Segmentation Dufry by Product HY 2011 Dufry by Product Evolution 2003 - 2010 Electronics Other Tobacco 3% 5% Electronics 5% CAGR 03-10: 21% Perfumes and goods cosmetics 7% 24% Tobacco goods 9% Fashion, Leather and Watches, Jewelry and Access. 36% Bag
Slide 23: Dufry Growth Drivers: Top-line Growth 24% p.a.
Board of Directors Zurich, 24 March, 2009 Dufry Growth Drivers Organic growth Passengers TOP-LINE GROWTH: 24% p.a. (1) 20% 17% • Significant historic and 14% 15% projected growth in all areas 10% 10% 10% 8% 8% Productivity 5% 5% • Penetration 0% – Improved retail concept Spend per 2004 2005 2006 200
Slide 24: Dufry Growth Drivers: Passengers
Board of Directors Zurich, 24 March, 2009 Dufry Growth Drivers: Passengers Long-term Passenger Forecast Mid-term International Passenger Forecast 12.0 2011 2012 2013 2014 10.0 CAGR = 4.2% EUROPE 7.3% 4.8% 3.7% 3.6% (Billion Passengers) 4.6 8.0 AFRICA -11.5% -0.1% 4.0% 3.9% 6.0 3.1 ASIA/ PACIFIC 5.9%
Slide 25: Shop Concepts
Board of Directors Zurich, 24 March, 2009 Shop Concepts General Travel Retail Shops Brand Boutiques Duty free shop – Puerto Rico Victoria’s Secret shop - US News and Convenience Stores Specialized Shops Hudson News shop - US Wine Shop- Tunisia 25
Slide 26: Travel Retail Market
Board of Directors Zurich, 24 March, 2009 Travel Retail Market Travel Retail Development by Region Long-term Growth by Channel 100 85 12% CAGR = 8.1% 10% 80 10% 48% (USD billion) 60 8% 6% 6% CAGR = 6.9% 39 6% 40 2% 20% 20 40% 4% 3% 20 2% 30% 1% 23% 30% 2% 25% 35% 0 44% 0% 2000 2010 2020 Airport Shop
Slide 27: Travel Retail Market
Board of Directors Zurich, 24 March, 2009 Travel Retail Market Travel Retail Market by Channel in 2010 Airport Retailing forecast market Size 50 Airline Airport Shops 7% 40 60% 6% (USD billions) Ferries 7% 6% 30 60% 44.1 40.4 36.7 32.9 20 29.4 28% 25.0 27.1 Other 10 28% 2009 2010 2011 2012 2013 2014
Slide 28: 4. Financials
Board of Directors Zurich, 24 March, 2009 4. Financials 28
Slide 29: Turnover Growth
Board of Directors Zurich, 24 March, 2009 Turnover Growth Turnover Growth Details Turnover Growth by Region HY '11 / '10 Turnover at Turnover Region Organic Growth 7,9% Const. FX rates Reported New Concessions 5,6% Europe 10.5% -0.9% Discontinued Operations -3,3% Africa -14.5% -25.7% New / Discontin
Slide 30: FX Impact
Board of Directors Zurich, 24 March, 2009 FX Impact USD/CHF Development EUR/CHF Development 1.200 1.600 1.150 1.514 1.520 1.497 1.509 1.113 1.109 1.500 1.463 1.100 1.058 1.063 1.409 1.032 1.021 1.400 EUR/CHF USD/CHF 1.333 1.323 1.000 0.973 1.287 0.946 1.300 1.253 0.900 0.870 1.200 1.166 0.816 0.800
Slide 31: Key Business Drivers
Board of Directors Zurich, 24 March, 2009 Key Business Drivers Key Figures at Constant FX (CHF million) HY '11 % HY '10 % HY '11 / '10 Turnover 1,397.5 1,267.9 10.2% GROSS PROFIT 810.1 58.0% 723.3 57.0% 12.0% EBITDA(1) Constant FX 181.1 13.0% 154.3 12.2% 17.4% Reported 148.3 12.6% 154.3 12.2% -3.9%
Slide 32: P&L at Constant FX Rates
Board of Directors Zurich, 24 March, 2009 P&L at Constant FX Rates Q1'11 Q1'10 Q1'11 PF1) Q2'11 Q2'10 Q2'11 PF1) H1'11 H1'10 H1'11 PF1) % % / Q1'10 % % / Q2'10 % % / H1'10 PF1) PF1) PF1) (000 CHF) Sales 621,174 567,149 735,369 662,420 1,356,544 1,229,569 Advertising 19,786 17,876 21,198 20,464 40,98
Slide 33: Income Statement
Board of Directors Zurich, 24 March, 2009 Income Statement (CHF million) Dec '03 % Dec '08 % Dec '09 % Dec '10 % Jun '10 % Jun '11 % Turnover 685.7 100.0% 2,113.5 100.0% 2,378.7 100.0% 2,610.2 100.0% 1,267.9 100.0% 1,181.3 100.0% Gross profit 318.1 46.4% 1,151.9 54.5% 1,329.4 55.9% 1,501.9 57.5% 723
Slide 34: Net Earnings / Earnings Per Share
Board of Directors Zurich, 24 March, 2009 Net Earnings / Earnings Per Share Core Earnings Per Share Net Earnings 10.00 CHF million HY '11 HY '10 Change 9.00 8.00 NET EARNINGS 57.1 60.7 -5.9% 7.00 6.54 Minority Interest 10.9 20.3 5.98 6.00 Equity Holders of the Parent 46.2 40.4 5.29 (CHF) 5.00 4.40 4
Slide 35: Summary Balance Sheet June 2011
Board of Directors Zurich, 24 March, 2009 Summary Balance Sheet June 2011 (CHF million) 2,039 2,039 PP&E (13%) 205 773 Equity (48%) Intangible assets (68%) 1,083 560 Net Debt (35%) Other non current assets (2%) Non current liabilities (1%) 37 15 Net Working Capital (9%) 152 7 Deferred tax liabilitie
Slide 36: Cash Flow
Board of Directors Zurich, 24 March, 2009 Cash Flow Summary Cash Flow In millions of CHF HY '11 HY '10 Net debt - Dec 31 (637.9) (609.8) Cash flow before w orking changes 156.0 149.5 Change in net w orking capital (24.0) 4.8 Income taxes paid (14.3) (11.8) Net cash flow s from operating activities 1
Slide 37: Financing and Covenants
Board of Directors Zurich, 24 March, 2009 Financing and Covenants Net Debt / EBITDA Evolution Net Debt Evolution 1,000 943 3.5 3.1 3.1 900 824 808 2.9 800 723 3.0 717 (CHF million) 2.7 643 650 2.6 2.6 700 638 635 610 613 2.5 560 2.5 600 2.2 2.1 2.1 500 537 470 458 455 2.0 1.9 400 380 300 1.5 Net Deb
Slide 38: Investor Relations Update
Board of Directors Zurich, 24 March, 2009 Investor Relations Update Shareholder Structure Daily Average Volume in CHF 12.0 11.2 Advent Funds 23% 10.0 9.3 (CHF millions) 8.0 6.0 Hudson Media 4% 4.0 3.1 2.7 1.9 1.7 2.0 Free Float 73% 0.0 2006 2007 2008 2009 2010 2011(2) Note: (1) Since April 2010 incl
Slide 39: 5. Conclusion
Board of Directors Zurich, 24 March, 2009 5. Conclusion 39
Slide 40: Conclusion/Outlook
Board of Directors Zurich, 24 March, 2009 Conclusion/Outlook • Business diversification proved to be the key factor for Dufry – Solid operational performance in the first half year in main operations – Still face some impact from North Africa, Mexico and Singapore • FX only has translational effect
Slide 41: Thank You
Board of Directors Zurich, 24 March, 2009 Thank You 41