Slide 1: Q1 2024 Trading Update
Q1 2024 Trading Update 16 May, 2024 1
Slide 2: Agenda
2 AGENDA 01 Highlights & Business Update 02 Financials 03 Conclusion 04 Appendix 22
Slide 3: Highlights & Business Update
Highlights & Business Update 3
Slide 4: Clear Strategy (1/2)
Clear Strategy (1/2) Avolta’s unique foundations strongly positions it to capture growth ▪ Uncontested leader in Travel Retail and Food & Beverage ▪ Diversification underpins resilience and reinforces growth potential 73 Countries Scale and resilience ▪ A truly distinct counterpart for our business
Slide 5: Clear Strategy (2/2)
Clear Strategy (2/2) Destination 2027 gained momentum in 2023, continued execution in 2024 TOP LINE GROWTH AND RESILIENCE Reimagined Food & PROFITABILITY & MARGIN Travel Beverage Retail IMPROVEMENT “MAKING TRAVELERS Traveler HAPPIER” INCREASE CASH FLOW CONVERSION Digital Point of Sale STRONG BALANCE
Slide 6: Highlights Q1 2024
Highlights Q1 2024 Solid Q1 2024 Buoyant Market and Key Business Refinancing and Results Strong Execution Developments Credit Rating Upgrades CORE Turnover CHF 2,784.2m Solid travel demand despite Successful 10 year extension of Athens New EUR 500m senior notes, due with Organic Growth of 8.6%1 macr
Slide 7: Key Financials (1/2)
Key Financials (1/2) Q1 2024 Q1 2023 YoY In CHFm, CORE Numbers +8.6% Organic Turnover 2,784.2 2,359.3 +18.0% Reported EBITDA 168.6 134.1 +25.7% YoY EBITDA Margin (%) 6.1% 5.7% +40 bps EFCF -80.4 -137.8 +57.4 April YTD organic growth estimated at around +7.0% year-on-year CER1 comparable with Easter
Slide 8: Key Financials (2/2): Regional Performance and Segmentation
Key Financials (2/2) Regional Performance and Segmentation EUROPE, MIDDLE EAST & AFRICA NORTH AMERICA Geographic mix1 TURNOVER TURNOVER 47% 35% 13% 5% 1,269.9 CHF m 973.6 CHF m EMEA NA LATAM APAC 11.7% Organic Growth 7.3% Organic Growth Business Lines US growth in both F&B and Travel Positive perfor
Slide 9: Delivering on the Travel Experience – Commercial Initiatives (1/2)
Delivering on the Travel Experience – Commercial Initiatives (1/2) FLEX Framework for Customer Engagement & Conversion through the Journey Flexible Ensuring agility, adaptability Loyalty Entertainment Xfactor Generating additional value and Creating opportunities for fun Integrating hybrid concepts,
Slide 10: Mid-Term Outlook Confirmed
Mid-Term Outlook Confirmed Outlook provided in CER (and not withstanding any unforeseeable global shocks) Mid-Term Outlook (per annum at CER) Capital Allocation Policy Organic Growth +5% - 7% Leverage target 1.5x-2.0x EBITDA Margin +20 - 40bp Dividend 1/3 of EFCF Deleveraging & EFCF Conversion +100
Slide 11: Financials
Financials 11
Slide 12: Margin Expansion and Improved EFCF
Margin Expansion and Improved EFCF EBITDA EBITDA margin +40bp YoY reflecting CHFm 200.0 6.0% 180.0 168.6 ▪ Commercial performance 160.0 5.0% 134.1 140.0 120.0 4.0% ▪ Productivity increases ▪ Synergy delivery and some integration costs 100.0 3.0% 80.0 60.0 2.0% 40.0 1.0% ▪ Active portfolio management
Slide 13: Financial Net Debt and Leverage
Financial Net Debt and Leverage Financial Net Debt Financial net debt incorporates normal seasonal CHFm effects and FX translation 3,344 3,500 3,102 3,080 ▪ Net Debt CHF 2,915m 2,915 2,811 3,000 2,696 ▪ FX impact led to approximately CHF 100m increase 2,500 in net debt 2,000 ▪ Debt split: USD: 36%,
Slide 14: Maturity Profile & Liquidity Position
Maturity Profile & Liquidity Position Maturity Profile1 Successful refinancing initiative ▪ New 2031 EUR 500m senior notes issued at 4.75% coupon CHF 1,923m Undrawn RCF Notional ▪ 51% of notional taken up in April 2024 tender of EUR 2,750m EUR 800m senior notes. Remaining amount to be repaid in cash
Slide 15: Credit Rating Upgrades
Credit Rating Upgrades Moody’s S&P Global Ratings Rating Evolution Rating Evolution Ba2 BB+ BB Ba3 BB- B1 B+ FY 22 HY 23 FY 23 Apr 24 FY 22 HY 23 FY 23 Apr 24 ▪ Rating action: 27 March 2024 ▪ Rating action: 3 April 2024 ▪ Current rating: Ba2, Outlook Stable ▪ Current rating: BB+, Outlook Stable Rati
Slide 16: Conclusion
Conclusion 16
Slide 17: Conclusion: Mid-Term Outlook Confirmed - Journey On!
CONCLUSION Strong Sales Strong organic sales growth in Q1 (8.6%) driven by contribution from all regions Positive momentum continues with April YTD organic growth estimated at around +7.0% year-on-year CER1 comparable with Easter included in both years Margin Expansion Driven by earlier than expecte
Slide 18: Appendix
Appendix 18
Slide 19: FX Q1 2024
FX Q1 2024 Turnover by currency Q1 2024 FX Translation impact on turnover (vs previous year) 3.6% 2.4% 2.6% Other 1.4% 20% 0.0% -0.3% -0.8% -0.8% -1.4% -1.5% -1.5% -1.3% -1.9% -2.5% -2.8% -2.5% -4.4% USD -6.3% -6.6% -5.8% GBP 9% 47% -12.9% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Slide 20: Selected Events
Selected Events 13 June 4th Annual Evercore ISI Consumer and Retail Conference 25 June GS Building Services, Transport & Leisure, London 30 July HY Results 31 October Q3 Trading Update 20
Slide 21: Contact
Contact REBECCA LUCA MCCLELLAN ZUCCONI Global Head Investor Global Senior Investor Relations Relations Analyst +44 7543 800405 + 31 40 235 31 53 Rebecca.McClellan@avolta.net luca.zucconi@avolta.net AGUSTINA EMANUELE RINCÓN ISELLA Global Senior Investor Global Investor Relations Relations Analyst Man
Slide 22: Legal Disclaimer
Legal Disclaimer This document contains certain forward-looking statements. These forward-looking statements may be identified by words such as ‘believes’, ‘expects’, ‘anticipates’, ‘projects’, “targets”, ‘intends’, ‘estimates’, ‘future’, “outlook”, or similar expressions or by discussion of, among