Lagardere Sa · EURONEXT:MMB
Lagardere Sa — Lagardère Travel Retail — Investor Presentation (June 2019)
37 slides from Lagardere Sa's investor presentation, Jun 4, 2019
Slide 1: Introduction to Lagardère Travel Retail
Introduction to Lagardère Travel Retail 04/06/2019 Investor Meeting
Slide 2: Lagardère Travel Retail is a leading global travel retail operator
Lagardère Travel Retail is a leading global travel retail operator delivering its 2015-2019 Strategic Plan financial objectives 2018 2018 vs 2014 €3.7bn €235m +€1.3bn sales sales Recurring EBITDA (1) x2 Recurring EBITDA (1) 35 257 22,000 +6 +50 countries airports (2) countries airports (2) employees
Slide 3: Lagardère Travel Retail is a leading global travel retailer
Lagardère Travel Retail is a leading global travel retailer We cover all segments of travel retail 1.5 5.7 €7.2bn (2017) 2.2 2,0 0.7 4.9bn (2018) 5.1bn including HBF FY 4.8bn (2017) 4.6bn (2017) 3.7bn (2017) 3.4bn (2017) 3.2bn1) (2017) 2.7bn (2017) 2.1bn (2017) Travel Essentials Duty Free & Fashion
Slide 4: A global presence in 35 countries
A global presence in 35 countries Travel Essentials Duty Free & Fashion Foodservice 500M clients • 1bn shoppers • 3bn exposed pax (airports) 4
Slide 5: We cover all segments of travel retail
We cover all segments of travel retail DUTY FREE & FASHION 24 countries TRAVEL ESSENTIALS 42% 700 outlets €4.9bn (1) 29 countries 3,000 outlets 45% 14% FOODSERVICE* 20 countries 900 outlets (1) Sales @100% 2018 5
Slide 6: The global leader and expert in Travel Essentials
The global leader and expert in Travel Essentials €2.2bn(1) 29 3,000 190 750 sales countries stores airports railway & metro stations (1) Sales @100% 2018 6
Slide 7: RELAY, Sydney Airport T2, Australia
RELAY, Sydney Airport T2, Australia
Slide 8: RELAY, Bari Airport (Italy)
RELAY, Bari Airport (Italy)
Slide 9: Other own brands
Other own brands 1 Minute Discover Glasgow World of Venice Warsaw Airport, Poland Glasgow Airport, United Kingdom Venice Airport, Italy Tech2go Case-bi Air de Paris Phnom Pehn Airport, Cambodia Dakar Airport, Senegal Paris CDG Airport, France 9
Slide 10: Partner brands
Partner brands Marks & Spencer Univision Lego Paris Gare de l’Est station, France Dallas Fort Worth Airport, USA Sydney Airport T2, Australia The Official All Blacks store Trip Advisor Fnac Auckland Airport, New Zealand Houston Airport, USA Paris CDG Airport, France 10
Slide 11: A global leading position in Duty Free & Fashion
A global leading position in Duty Free & Fashion €2.0bn(1) 24 700 135 11 sales countries stores airports airlines (1) Sales @100% 2018 11
Slide 12: New Age Beauty Buy Paris Duty Free, Paris CDG airport (France)
New Age Beauty Buy Paris Duty Free, Paris CDG airport (France)
Slide 13: Other brands
Other brands Duty Zero by cdf & House of Hennessy Délices de Lyon Aelia Duty Free Beauty Hong Kong International Airport Lyon Airport, France Zagreb Airport, Croatia BuY Paris Duty Free Casa del Gusto The Fashion Place Paris CDG Airport, France Rome Fiumicino Airport, Italy Lyon Airport, France 13
Slide 14: Partner brands
Partner brands Hermès Victoria’s Secret Nespresso Paris CDG Airport, France Prague Airport, Czech Republic Paris Orly Airport, France Rituals M&M’s Tiffany & Co. Prague AIrport, Czech Republic Paris CDG Airport, France Paris CDG Airport, France 14
Slide 15: A global leader in Foodservice
A global leader in Foodservice €700m* 20 900 90 150 2018 sales countries outlets airports railway & metro stations (1) Sales @100% 2018 +€200m +3 +150 +30 +26 with HBF SK / NL / GA with HBF + NL with HBF with NL 15
Slide 16: Own brands
Own brands Vino Volo Trib’s The Daily DXB Sacramento Airport, US Berlin Airport, Germany Dubai Airport, UAE So!Coffee Emporio del Grano Bread & Co. Krakow Airport, Czech Republic Venice Airport, Italy Nice Airport, France 16
Slide 17: Partner brands
Partner brands Burger King Dean &DeLuca P.F. Chang’s Frankfurt train station, Germany Hong Kong International Airport Los Angeles Airport, US Costa Coffee Prêt à Manger Eric Kayser Starbucks Prague Downtown, Czech Republic Nice Airport, France Nice Airport, France 17
Slide 18: Achieving many structural improvements
Achieving many structural improvements Sustained business Rebalanced Pure player development geographical mix in Travel Retail: in both existing countries and with the acquisition sale of the new territories while improving and integration of Paradies Distribution activities profitability & HBF in N
Slide 19: We operate in a dynamic growing market
We operate in a dynamic growing market despite challenging marginal SPP in duty free ILLUSTRATIVE Travel retail market growth PAX(1) growth Spend Per Pax growth Category Infrastructure Stores Customer growth improvements commercial mix(3) effectiveness Air traffic will double in the 15 next years, d
Slide 20: Air traffic will double in the next years, driven by emerging markets
Air traffic will double in the 15 next years, driven by emerging markets Air traffic forecast by region [# bn PAX; CAGR; 2016-2022-2031] +3.5% +5.0% +3.0% 2.0 2.7 3.4 +7.8% +3.4% 2.8 Europe 1.8 2.2 +7.9% +6.2% 0.4 0.6 1.1 North America Middle East +8.2% +4.9% 6.7 4.4 2.7 +3.1% +5.9% 15.7 10.8 +5.5%
Slide 21: A clear mission driven by strategic pillars and supported by 4 enablers
A clear mission driven by 4 strategic pillars and supported by 4 ambitious enablers A team committed to exceeding travelers’ and partners’ expectations, every day Excellence Agile Partner Profitable in retail and efficient of choice expansion and food organization INNOVATION Excel in traveler Rely D
Slide 22: Excellence in retail and food
Excellence in retail and food Be recognized as travelers’ preferred retailer By offering memorable By adapting By constantly innovating shopping and food to each environment for a seamless experiences & to each traveler profile customer journey 22
Slide 23: Partner of choice
Partner of choice The widest & most diverse portfolio in Travel Retail TRAVEL ESSENTIALS DUTY FREE & FASHION FOODSERVICE Own brands Partner brands Bespoke brands Non-exhaustive list 23
Slide 24: Partner of choice
Partner of choice MANAGEMENT LEASE CONTRACT OTHER BESPOKE Flexible CONCESSION CONTRACT SOLUTIONS business models JOINT MASTER VENTURE CONCESSION 24
Slide 25: Partner of choice
Partner of choice A long standing experience of successful joint ventures with international strategic partners 2003 2011 2013 2014 2015 2016 2017 ▪ JV allow for a combination of expertise and Our JV operations show our ability to build long alignment of interest between parties. term partnerships,
Slide 26: Profitable expansion
Profitable expansion Switzerland Geneva: Fashion + Diplomatic store Major openings and successes in 2019 Austria Slovakia Netherlands Vienna: Fashion Bratislava: Costa Coffee Dutch Rail (FS): 28 POS (Smullers) China Canada Beijing Daxing: Fashion Vancouver (TE) US Raleigh-Durham (TE/Fashion) Hong Ko
Slide 27: A clear path for global expansion through new tenders & M&A
We have a clear path for a 3BLs Global expansion, through new tenders & M&A: WHERE to expand? HOW to expand? 1. Existing Countries Tenders ▪ Strengthen positions in existing activities offer competitive rents & attractive through tenders and M&A commercial offer; improved takeover/ Geographies ▪ Dev
Slide 28: A locally-empowered organization supported by central functions
A locally-empowered organization supported by central functions COUNTRIES FRANCE & MIDDLE EAST EUROPE, MIDDLE EAST & AFRICA ASIA PACIFIC NORTH AMERICA FRANCE & LUXEMBOURG ITALY SWITZERLAND POLAND GREATER CHINA USA SINGAPORE & CANADA KSA SPAIN & PORTUGAL UK & IRELAND CZECH REPUBLIC MALAYSIA UAE GERMA
Slide 29: This ambitious strategy is supported by 4 enablers
This ambitious strategy is supported by 4 enablers A team committed to exceeding travelers’ and partners’ expectations, every day Excellence Agile Partner Profitable in retail and efficient of choice expansion and food organization INNOVATION DIGITAL PROCESSES & SYSTEMS TALENTS & CSR 29
Slide 30: Our innovation approach
INNOVATION 1 Our innovation approach We strive to ensure a to Stand out as the partner Re-enchant travelers’ Empower each Provide agile and of choice for bringing experiences throughout collaborator impactful playgrounds innovative their journey to take risks and explore to test and roll-out solutio
Slide 31: The digital transformation will be a key priority for the Group
The digital transformation will be a key priority DIGITAL 2 for the Group in the 5 next years We have defined our ✓ Provide frictionless and highly ✓ Ability to simplified ✓ Build ✓ Adapted capabilities ✓ Structured ✓ Develop on digital vision for B2B, B2C in Duty and B2E Free and Food ✓ Further dig
Slide 32: Optimize and harmonize our processes and systems to gain efficiency
Continue to optimize and harmonize our processes PROCESSES & SYSTEMS 3 and systems is crucial to gain efficiency maximize our operational performance through the development of shared best practices, methodologies & KPIs implement common IT strategy, strengthen IT security and gain in agility Common
Slide 33: Strong group CSR commitments, through our PEPS program
TALENTS & CSR 4 Strong group CSR commitments, through our PEPS program lanet thics eople ocial Reduce energy Specific commitments Specific commitments Specific commitments consumption of POS TBD on: TBD on: TBD on: -50% food waste by 2025 • Anti-bribery • Equal opportunities • Charity • Personal dat
Slide 34: Make employee experience unique and become the most attractive employer brand
Make employee experience unique and become TALENTS & CSR 4 the most attractive employer brand Talents Attraction, Communication Development & Information & Retention Diversity & Well-being at work Ethical Mobility commitment & Succession & Environment Planning 34
Slide 35: New Age Beauty Buy Paris Duty Free, Paris CDG airport (France)
New Age Beauty Buy Paris Duty Free, Paris CDG airport (France)
Slide 36: 47 stores in 34 airports across the US and Canada
36 47 stores in 34 airports across the US and Canada
Slide 37: Lagardère
Lagardere per ~| new horizons, every day
Lagardère Travel Retail — Investor Presentation (June 2019) on 6ix