Avolta Ag · SIX:AVOL
Avolta — Dufry — Q1 2011 Earnings Presentation
38 slides from Avolta's earnings presentation, May 2011
Slide 1: Dufry Presentation – Q1 2011 Results
Board of Directors Zurich, 24 March, 2009 Dufry Presentation – Q1 2011 Results May 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 Q1 2011 Performance 2. Key Figures Q1 2011 3. Dufry Strategy 4. Financials 5. Conclusion 3
Slide 4: 1. Update Q1 2011 Performance
Board of Directors Zurich, 24 March, 2009 1. Update Q1 2011 Performance 4
Slide 5: Update Q1 2011: Overview
Board of Directors Zurich, 24 March, 2009 Update Q1 2011: Overview 1) Remarkable results in an eventful quarter 2) Passenger development 3) Operations and Resources development 4) New projects and expansions 5) Main events Q1 2011 6) Trading update 5
Slide 6: Update Q1 2011 (1)
Board of Directors Zurich, 24 March, 2009 Update Q1 2011 (1) Remarkable results in an Eventful Quarter – 9.6% turnover increase on constant FX rates – Organic growth of 7.4%, excluding specific situations (MENA, snow storms and Mexico) 10.9% – Gross margin of 57.6% versus 56.6% in 2010 – 17.1% EBITD
Slide 7: Update Q1 2011 (2): Passenger Development
Board of Directors Zurich, 24 March, 2009 Update Q1 2011 (2) Passenger Development International PAX Growth Q1 2011 Expected International PAX Growth for FY 2011 10% 15% 8.3% 5.3% 5.8% 10% 5.2% 4.5% 5.6% 6.1% 6.0% 5.5% 5% 3.9% 4.6% 2.8% 5% 0% 0% -5% -5% -10% -15% -13.7% -10% -10.0% -20% Source: ACI
Slide 8: Update Q1 2011 (3): Dufry plus One
Board of Directors Zurich, 24 March, 2009 Update Q1 2011 (3) Dufry plus One - New customer research Sales / Productivity - New website Customer - Assortment - Improving in-store optimization + pricing merchandise policy - Global Procurement - Global Promotions Plan Committee Gross Margin - Demand co
Slide 9: Update Q1 2011 (3): One Dufry
Board of Directors Zurich, 24 March, 2009 Update Q1 2011 (3) One Dufry 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 - Tax initi
Slide 10: Update Q1 2011 (4): New Projects and Expansions
Board of Directors Zurich, 24 March, 2009 Update Q1 2011 (4) New Projects and Expansions Changes in the Retail Space in Q1 2011 Main openings Q1 2011 Added Closed Net Concepts Region space space Effect News & Convenience General Travel Retail Branded boutique Specialized shop Europe 128 63 65 Africa
Slide 11: Update Q1 2011 (5): Main Events
Board of Directors Zurich, 24 March, 2009 Update Q1 2011 (5) Main Events – North Africa: situation remains unchanged – Mexico: disruption due to Mexicana gradually improving – USA: snow storms impact mainly in January – Japan: no impact on Dufry’s business – F/X translation masks strong performance
Slide 12: Update Q1 2011 (6): Trading Update
Board of Directors Zurich, 24 March, 2009 Update Q1 2011(6) Trading Update – April continues with strong performance – Seasonality: Impact of Easter Positive Start in Q2 2011 12
Slide 13: 2. Key Figures Q1 2011
Board of Directors Zurich, 24 March, 2009 2. Key Figures Q1 2011 13
Slide 14: Key Figures Q1 2011
Board of Directors Zurich, 24 March, 2009 Key Figures Q1 2011 Q1 Turnover and EBITDA Evolution 800 9.6% -2.3% 641 • Turnover at constant FX rates 9.6% to 585 585 572 600 CHF 641 million (CHF million) 400 • Gross margin improved to 57.6% from 17.1% 2.9% 200 56.6% 65 76 65 67 - • EBITDA(1) at constant
Slide 15: 3. Dufry Strategy
Board of Directors Zurich, 24 March, 2009 3. Dufry Strategy 15
Slide 16: Globally Diversified and Focused on Emerging Markets and Tourist Destinations
Board of Directors Globally Diversified and Focused on Zurich, 24 March, 2009 Emerging Markets and Tourist Destinations Europe 109 shops Presence at: Milan Malpensa (Italy) Milan Linate (Italy) Basel (Switzerland) North America 622 shops Presence at: Eurasia New York 73 shops Los Angeles Presence at
Slide 17: Dufry's Segmentation
Board of Directors Zurich, 24 March, 2009 Dufry’s Segmentation Dufry by Region 2003 Dufry by Region Q1 2011 Developed Markets Europe 13% North America Europe Africa 45% 27% 5% Africa Eurasia 16% 8% CAGR 03-10: 21% North America 7% Eurasia Central South 16% America & Central Caribbean America America
Slide 18: Dufry's Segmentation
Board of Directors Zurich, 24 March, 2009 Dufry’s Segmentation Dufry by Product Q1 2011 Dufry by Product Evolution 2003 - 2010 Electronics Other Tobacco 3% 4% CAGR 03-10: 21% Perfumes and Electronics 5% goods cosmetics 8% Tobacco goods 9% Fashion, Leat 24% her and Watches, Jewelry and Access. 36% Ba
Slide 19: Dufry Growth Drivers
Board of Directors Zurich, 24 March, 2009 Dufry Growth Drivers Organic growth TOP-LINE GROWTH: 24% p.a. (1) Passengers 20% 17% • Significant historic and 14% 15% projected growth in all areas 10% 10% 10% 8% 7% 5% Productivity 5% • Penetration 0% – Improved retail concept Spend per 2004 2005 2006 200
Slide 20: Dufry Growth Drivers (1): Passengers
Board of Directors Zurich, 24 March, 2009 Dufry Growth Drivers (1): Passengers Long-term Passenger Forecast Mid-term International Passenger Forecast 12.0 2011 2012 2013 2014 10.0 CAGR = 4.2% EUROPE 5.3% 3.2% 3.1% 3.0% (Billion Passengers) 4.6 8.0 AFRICA -10.0% 1.1% 2.7% 2.7% 6.0 3.1 ASIA/ PACIFIC 5
Slide 21: Dufry Growth Drivers (2): New Concessions
Board of Directors Zurich, 24 March, 2009 Dufry Growth Drivers (2): New Concessions Retail Space Added 2005 - 2010 Additional Gross New Space 2011: 9,600 sqm 60 14% 5,000 4,416 11% 50 4,000 10% (sqm thousands) 40 (sqm) 5% 5% 3,000 4% 6% 3% 30 2,016 47 0% 2,000 2% 1,344 20 864 26 1,000 576 -2% 384 10
Slide 22: 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 22
Slide 23: Travel Retail Market
Board of Directors Zurich, 24 March, 2009 Travel Retail Market Travel Retail Development by Region Long-term Growth by Channel 100 12% 85 10% CAGR = 8.1% 80 10% 48% 8% (USD billion) 60 6% 6% CAGR = 6.9% 6% 39 2% 40 20% 40% 4% 3% 20 2% 20 23% 30% 1% 30% 2% 25% 44% 35% 0 0% 2000 2010 2020 Airport Shop
Slide 24: 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 (USD millions) 60% 6% 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 25: 4. Financials
Board of Directors Zurich, 24 March, 2009 4. Financials 25
Slide 26: Turnover Growth
Board of Directors Zurich, 24 March, 2009 Turnover Growth Turnover Growth Details Turnover Growth by Region Q1 '11 / Turnover at Turnover Region Q1 '10 Constant FX Reported Organic Growth 7.4% Europe 9.5% -2.2% New Concessions 6.3% Africa -9.5% -20.3% Discontinued Operations -4.1% Eurasia -3.3% -13.
Slide 27: FX Impact
Board of Directors Zurich, 24 March, 2009 FX Impact USD/CHF Development EUR/CHF Development 1.200 1.600 1.150 1.113 1.514 1.520 1.109 1.509 1.497 1.100 1.500 1.058 1.063 1.463 1.032 1.021 EUR/CHF USD/CHF 1.409 1.000 0.973 1.400 0.946 1.333 1.323 0.891 1.287 1.290 0.900 1.300 0.800 1.200 Q1 Q2 Q3 Q4
Slide 28: Key Business Drivers
Board of Directors Zurich, 24 March, 2009 Key Business Drivers Key Figures at Constant FX (CHF million) Q1 '11 % Q1 '10 % Change Sales 621.2 567.1 Advertising 19.8 17.9 Turnover 641.0 100.0% 585.0 100.0% 9.6% Gross profit 369.0 57.6% 331.0 56.6% 11.5% Concession fees -134.1 -20.9% -120.9 -20.7% 11.0
Slide 29: Income Statement
Board of Directors Zurich, 24 March, 2009 Income Statement (CHF million) Dec '03 % Dec '08 % Dec '09 % Dec '10 % Mar '10 % Mar '11 % Turnover 685.7 100.0% 2,113.5 100.0% 2,378.7 100.0% 2,610.2 100.0% 585.0 100.0% 571.6 100.0% Gross profit 318.1 46.4% 1,151.9 54.5% 1,329.4 55.9% 1,501.9 57.5% 331.0 5
Slide 30: 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 Q1 2011 Q1 2010 Change 9.00 NET EARNINGS 21.4 21.9 -2.3% 8.00 Minority Interest 4.7 13.5 7.00 6.54 5.98 Equity Holders of the Parent 16.7 8.4 6.00 5.29 (CHF) 5.00 4.40 4
Slide 31: Summary Balance Sheet March 2011
Board of Directors Zurich, 24 March, 2009 Summary Balance Sheet March 2011 (CHF million) 1,719 1,719 PP&E (13%) 223 816 Equity (47%) Intangible assets (68%) 1,166 635 Net Debt (37%) Other non current assets (2%) 40 17 Non current liabilities (1%) Net Working Capital (9%) 161 4 Deferred tax liabiliti
Slide 32: Cash Flow
Board of Directors Zurich, 24 March, 2009 Cash Flow Summary Cash Flow In millions of CHF Q1 '11 Q1 '10 Net debt - Dec 31 (637.9) (609.8) Cash flow before working changes 61.5 66.3 Change in net working capital (20.8) (22.4) Income taxes paid (6.0) (5.3) Net cash flows from operating activities 34.7
Slide 33: Financing and Covenants
Board of Directors Zurich, 24 March, 2009 Financing and Covenants Cash Flow Evolution Net Debt Evolution 350 1,000 943 300 900 824 808 250 (CHF million) 800 (CHF million) 200 723 717 700 643 650 638 635 150 610 613 100 600 50 500 537 0 470 458 455 400 2008 2009 2010 Q1 10 Q1 11 Operational Cash Flow
Slide 34: Trading Volumes
Board of Directors Zurich, 24 March, 2009 Trading Volumes Dufry AG Share Price Daily Average Volume in CHF 140 16.0 130 14.2 14.0 120 +61% 12.0 110 (CHF millions) 100 10.0 9.3 (CHF) 90 8.0 80 6.0 70 +7% 4.0 3.1 2.7 60 1.9 1.7 50 2.0 40 0.0 Jan/10 Mar/10 May/10 Jul/10 Sep/10 Nov/10 Jan/11 Mar/11 2006
Slide 35: 5. Conclusion
Board of Directors Zurich, 24 March, 2009 5. Conclusion 35
Slide 36: Conclusion/Outlook
Board of Directors Zurich, 24 March, 2009 Conclusion/Outlook • Resilience of business model confirmed – Despite several external events impacting Q1 11, Dufry delivered strong performance – Experience with similar situations in the past (Varig, Alitalia, Economic crisis in 2009) • FX only has transl
Slide 37: Dufry Awards
Board of Directors Zurich, 24 March, 2009 Dufry Awards 37
Slide 38: Thank You
Board of Directors Zurich, 24 March, 2009 Thank You 38