Avolta Ag · SIX:AVOL
Avolta — Dufry — FY2009 Earnings Presentation
33 slides from Avolta's earnings presentation, March 2010
Slide 1: Dufry Presentation - Full Year 2009 Results
Board of Directors Zurich, 24 March, 2009 Dufry Presentation - Full Year 2009 Results March 2010 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. Overview FY 2009 Results 2. Dufry Strategy 2010 – 2015 3. Dufry Fundamentals 4. Financials 5. Conclusion 3
Slide 4: 1. Overview FY 2009 Results
Board of Directors Zurich, 24 March, 2009 1. Overview FY 2009 Results 4
Slide 5: Full Year 2009 Results – Strong Numbers in a Tough Economic Environment
Board of Directors Full Year 2009 Results – Strong Numbers in a Zurich, 24 March, 2009 Tough Economic Environment Turnover and EBITDA Evolution CHF million 12.5% 2,379 2,400 2,200 9.5% 2,114 • Turnover +13% to CHF 2,379m 2,000 1,930 1,800 34.4% • Gross margin improved 1,600 1,436 to 55.9% from 54.5%
Slide 6: Proven Track Record of Delivering Growth
Board of Directors Proven Track Record of Zurich, 24 March, 2009 Delivering Growth Dufry Key Facts Evolution of Dufry 2003–2009 2003 2009 Growth CAGR % • 40 countries Countries 25 40 60% 8% • 145 airports Airports 47 145 209% 21% Shops 227 1'097 383% 30% • 1,097 shops Retail Surface (sqm) 36'750 146
Slide 7: Update on Strategy
Board of Directors Zurich, 24 March, 2009 Update on Strategy Dufry per Region FY 2009 Dufry by Product FY 2009 Europe North 14% Other; 11% Perfumes & America cosmetics; 29% Africa Electronics; 22% Developed 8% 3% Markets Tobacco Eurasia & goods; 8% Asia 10% Watches & Food; 18% jewelry; South Central
Slide 8: Leading Global Travel Retailer
Board of Directors Zurich, 24 March, 2009 Leading Global Travel Retailer Mediterranean Corridor Asia Corridor Latin America Corridor 8
Slide 9: Long-Term Concession Portfolio with High Exposure to Emerging Markets
Board of Directors Long-Term Concession Portfolio with Zurich, 24 March, 2009 High Exposure to Emerging Markets Net Sales by Duration of Contracts FY 2009 Diversified Portfolio 1 - 2 years 9 + years 11% • Diversified portfolio with more than 24% 340 contracts • 49% of sales based on contracts with a
Slide 10: Performance of Efficiency Plan 2009
Board of Directors Zurich, 24 March, 2009 Performance of Efficiency Plan 2009 Full Year 2009 Targets Effective to 31 December, 2009 Spend per Maintain productivity Caribbean (jewelry & watches), PAX Swine Flu Maintain gross margin existing Gross margin to 55.9% from business 54.5% year-on-year Gross
Slide 11: 2. Dufry Strategy 2010 – 2015
Board of Directors Zurich, 24 March, 2009 2. Dufry Strategy 2010 – 2015 11
Slide 12: Dufry 2010 - 2015
Board of Directors Zurich, 24 March, 2009 Dufry 2010 - 2015 Strategic Pillars “True” Retailer with Local Market Knowledge Development 2003 - 2009 High-Quality Concession Portfolio Organic Growth – CAGR 7% Disciplined Approach to Profitable Growth New Concessions – CAGR 6% Enhance Central Functions t
Slide 13: Focus on Profitable Growth – Targets 2010
Board of Directors Zurich, 24 March, 2009 Focus on Profitable Growth – Targets 2010 Focus on Profitable Growth Managing on Fundamentals • Organic growth • Managing the company based on – Passenger numbers fundamentals – Productivity improvements – Operating performance as key driver • External growt
Slide 14: 3. Dufry Fundamentals
Board of Directors Zurich, 24 March, 2009 3. Dufry Fundamentals 14
Slide 15: Global Growth Opportunities
Board of Directors Zurich, 24 March, 2009 Global Growth Opportunities Organic growth CAGR 7% 20% Passengers 17% • Significant historic and 15% 14% projected growth in all TOP-LINE GROWTH: 26% p.a. (1) 10% areas 10% 8% Productivity 5% 5% • Penetration 0% – Improved retail concept Spend per Dec '04 De
Slide 16: Capture Passenger Growth
Board of Directors Zurich, 24 March, 2009 Capture Passenger Growth Air4casts International PAX Forecast Global PAX by Region 2009 2010 2011 2012 2013 Europe EUROPE 1.7% 2.4% 2.4% 2.4% North 31% America NORTH AMERICA 1.2% 1.5% 1.4% 1.4% 33% LATIN AMERICA 7.8% 3.4% 3.3% 3.3% ASIA/ PACIFIC 9.8% 5.7% 5.
Slide 17: New Concessions
Board of Directors Zurich, 24 March, 2009 New Concessions Openings in 2009 and Q1 2010 Current Project Pipeline by Retail Space Additional Location Date Europe sqm Africa 3% Latinoamericana DF, Mexico Nov-09 3,917 2% Milan Train Station, Italy Nov-09 1,652 Canada Dec-09 1,600 North America Eurasia S
Slide 18: Travel Retail Market Trends
Board of Directors Zurich, 24 March, 2009 Travel Retail Market Trends Travel Retail Industry Retail Trends Dufry • Broadening of customer base 6% - Emerging Markets - Lower customer segments • Enhance shopping experience - Adapt trends in high street retailing to travel Other retail Top 9 Operators
Slide 19: 4. Financials
Board of Directors Zurich, 24 March, 2009 4. Financials 19
Slide 20: Merger of Dufry AG with Dufry South America Ltd
Board of Directors Zurich, 24 March, 2009 Merger of Dufry AG with Dufry South America Ltd Pre Transaction Post Transaction Funds Funds Former Hudson DAG DSA Free Hudson DAG Controlled Controlled DSA Free Media Free Float Float Media Free Float by Advent by Advent Float 47.0% 6.0% 47.0% 33.5% 4.3% 33
Slide 21: Remaining Transaction Steps
Board of Directors Zurich, 24 March, 2009 Remaining Transaction Steps • March 2010 – March 19: Special General Meeting of members of DSA – March 22: Extraordinary General Meeting of DAG – March 24: First trading day of new DAG shares on SIX • April 2010 – April 12: Payment of the Extraordinary Cash
Slide 22: Dufry – Income Statement
Board of Directors Zurich, 24 March, 2009 Dufry – Income Statement (CHF million) Dec '03 % Dec '04 % Dec '05 % Dec '06 % Dec '07 % Dec '08 % Dec '09 % Turnover 685.7 100.0% 850.5 100.0% 949.8 100.0% 1'436.3 100.0% 1'930.3 100.0% 2'113.5 100.0% 2'378.7 100.0% Gross profit 318.1 46.4% 408.1 48.0% 472.
Slide 23: Financial Statements 2009
Board of Directors Zurich, 24 March, 2009 Financial Statements 2009 Quarterly Organic Growth 2009 FX Rate Development 5% 3,0% FX Evolution Q1 Q2 Q3 Q4 YTD CHF/USD 2009 1.15 1.11 1.06 1.02 1.09 0% CHF/USD 2008 1.07 1.03 1.07 1.16 1.08 % Change 09/08 7.1% 8.0% -0.7% -11.7% 0.4% Q1 Q2 Q3 Q4 -5% CHF/EUR
Slide 24: Merger Impact
Board of Directors Zurich, 24 March, 2009 Merger Impact Balance Sheet Income Statement Merger 31/12/2009 Merger FY 2009 (CHF million) 31/12/2009 Impact Pro Forma (CHF million) FY 2009 Impact Pro Forma Assets Turnover 2'378.7 2'378.7 - Cash 405.3 -155.0 250.3 Gross Profit 1'329.4 1'329.4 - Inventory
Slide 25: Dufry – Balance Sheet
Board of Directors Zurich, 24 March, 2009 Dufry – Balance Sheet ASSETS (CHF million) 31/12/2006 31/12/2007 31/12/2008 31/12/2009 Cash & equivalents 102.4 125.1 263.7 405.3 (1) Trade receivables, net 28.7 52.0 44.3 48.2 Inventories 277.7 291.4 344.3 306.5 Other current assets 85.6 89.4 121.1 122.4 Cu
Slide 26: Financial Statements 2009 - Balance Sheet / Intangible Assets
Board of Directors Financial Statements 2009 - Zurich, 24 March, 2009 Balance Sheet / Intangible Assets Balance Sheet Other non current assets 8% 44% Equity Intangible assets 60% 8% Non current liabilities 27% Net Debt PP&E 11% Current assets, other than cash 21% 21% Other current liabilities net 20
Slide 27: Dufry – Cash Flow Statement
Board of Directors Zurich, 24 March, 2009 Dufry – Cash Flow Statement c 2009 2008 Net debt - Dec 31 (824.2) (370.4) Cash flow before working capital changes 313.9 270.6 Change in net working capital 105.5 (63.8) Income taxes paid (30.0) (33.9) Net cash flows from operating activities 389.4 172.9 Cap
Slide 28: Financing and Covenants
Board of Directors Zurich, 24 March, 2009 Financing and Covenants Net Debt Evolution Debt by Currency EUR 10% 1,000 943 900 824 808 800 765 723 700 643 CHF 16% 610 600 500 400 300 200 100 0 31 Oct 08 31 Dec 08 31 Mar 09 30 Jun 09 30 Sep 09 31 Dec 09 31 Dec 09 USD 74% PF* Note: Pro Forma net debt inc
Slide 29: Market Capitalisation and Access to Capital Markets
Board of Directors Market Capitalisation and Zurich, 24 March, 2009 Access to Capital Markets Pro-Forma Market Capitalisation (1) Pro-Forma Dufry Shareholder Structure 2,500 2,185 2,000 1,883 Funds Controlled 62% by Advent 1,500 1,341 1,360 62% 33.5% 1,172 47% 1,000 630 Free float 62.2% Hudson Media
Slide 30: Share Performance - Trading Volumes
Board of Directors Zurich, 24 March, 2009 Share Performance - Trading Volumes Daily Average Volume in CHF DAG Share Price Evolution 16 80 70 14 60 (CHF) 12 50 40 10 30 CHF (million) 20 8 10 6 D 09 Ju 9 Au 9 Ap 9 0 N 9 S e 09 09 Fe 0 Ju 9 M 09 M 10 M 09 O 9 Ja 9 0 -0 l- 0 -0 -1 -0 1 0 -0 n- - n- n- b
Slide 31: 5. Conclusion
Board of Directors Zurich, 24 March, 2009 5. Conclusion 31
Slide 32: Conclusion/Outlook
Board of Directors Zurich, 24 March, 2009 Conclusion/Outlook Key Targets for 2010 • Gradual improvement of the business in the last months – Visibility remains limited • Return to growth strategic – organic through passenger numbers and productivity improvement – New projects won in 2009 and project
Slide 33: Thank You
Board of Directors Zurich, 24 March, 2009 Thank You 33