Avolta Ag · SIX:AVOL
Avolta — Dufry — FY2020 Earnings Presentation
46 slides from Avolta's earnings presentation, March 2021
Slide 1: Full-Year Results 2020
FULL-YEAR RESULTS 2020
Slide 2: Agenda
AGENDA ol 02 03 04 05 Group Highlights Business Performance Financial Summary Outlook Appendix ® DUFRY FULL YEAR RESULTS 2020
Slide 3: Group Highlights
l GROUP HIGHLIGHTS FY “2020 en SS A oa us } “wey
Slide 4: FY 2020 group highlights
¹ ¹ Savings include MAG relief of CHF 551.4 million, personnel and other expenses savings of CHF 527.3 million and CHF 233.4 million respectively for FY 2020 ² Including gross proceeds from share placement of CHF 151.3 million, convertible bond of CHF 350 million, rights issue of CHF 820.4 million,
Slide 5: Shareholder structure after rights issue
¹ Based on the number of new registered shares outstanding with Advent having 11.4%, and Alibaba 8.72% stake (including the mandatory convertible notes). Number of registered shares following rights issue of 80,263,682 (including 24,696,516 new shares) and of 82,357,621 including mandatory convertib
Slide 6: Sustainability highlights FY 2020
ENVIRONMENTA FY 2020 a ° Set up of com i al Salary program on si ‘ erland ey products base Council guide Expansion of internal communication channels to improving reach of non-deskt loyees lution of women@dufry tive towards diversity & sion program TRUSTED PARTNER Mappin: emissions and first disclos
Slide 7: Business Performance
BUSINESS PERFORMANCE er zz
Slide 8: Organic growth development
20% 0% -20% -40% -60% -80% -100%
Slide 9: Turnover and Organic Growth by Region
TURNOVER AND ORGANIC GROWTH BY REGION FY 2020 NORTH AMERICA __ EUROPE, MIDDLE EAST 644 4" & AFRICA CHF oe oo OT | 1,144.5*" 130.6 ’ ° 192.5 2" FY 2020 turnover & organic growth year-on-year (in %) @ 04 2020 turnover & organic growth year-on-year (in %) CENTRAL & SOUTH AMERICA 497.3*" a 106.7 2" 160.
Slide 10: Net Sales by Region & Sector
NET SALES BY REGION & SECTOR FY 2020 DUFRY BY REGION - FY 2020 DUFRY BY SECTOR - FY 2020 Distribution Centers North America 3% 25% Duty-paid *y pate Duty-free Central & South America Europe, Middle East & Robin hed “T3% yoy 20% Africa 46% Asia Pacific 6% = Regional split shifted slightly with Americ
Slide 11: Net Sales & Performance by Channel
NET SALES & PERFORMANCE BY CHANNEL FY 2020 DUFRY BY CHANNEL - FY 2020 Net sales 2020 vs 2019 Railway stations 6 other eer ete chope IIMA MMA -s3>% Border, downtown & hotel shops Raitway tations & other |MAIN| ~+5% Cruise liners & seaports Airports a% a6% avnpors IMMUN 2 Cruise iners 6 seaports Hl MI
Slide 12: Net sales by product category
Perfumes & cosmetics Food, confectionery & 31% catering Electronics 19% Food, confectionery & catering Other Tobacco goods 5% Wine & spirits 3 Literature & publications = — oat Wine and spirits Perfumes & cosmetics fica nine 17% Literature 6 publications 2% Luxury'goods Tobacco goods Luxury goods 12
Slide 13: Retail Space Development
RETAIL SPACE DEVELOPMENT Highlights Q4 2020 TOTAL RETAIL SPACE - FY 2020 ~470,000™ GROSS RETAIL SPACE OPENED - FY 2020 First Hudson Nonstop store with Amazon's _—_Dufry’s new exclusive duty-paid landside Just Walk Out technology opened at brand paradise ANECDOTE located at the SQM Dallas Love Field
Slide 14: Partnership with Alibaba & HDH in China
PARTNERSHIP WITH ALIBABA & HDH IN CHINA Mova Mall opening represents Dufry’s first involvement in a duty-free operation in China Official opening ceremony attended by government officials, brand partners, HDH and Dufry representatives, local media ® DUFRY & 10 ou GEFPLAZA FEErEErl am D8 Bike= py St
Slide 15: Financial Summary
FINANCIAL SUMMARY PY 2020
Slide 16: Income Statement FY 2020
INCOME STATEMENT FY 2020 Reflecting cost reduction achievements & one-off effects in HF milion Roported ___% Reported __% A Turnover 2.5611 100.0% 8,848.6 100.0% = -71.1% Gross Profit 1,377.3 53.8% 5,323.2 60.2% — -74.1% Lease Expenses 8.0 03% 13729) 155% — -100.6% Relief of MAG 360.3 148% - - - Per
Slide 17: Expense and Cash Savings
EXPENSE AND CASH SAVINGS FY 2020 VS FY CHANGES IN P&L AND CAS'| in CHF million 233.4 -289.5 69.6 139.3 ALA “49.0 “1,410.6 -3,945.7 1,862.5 6,287.3 2,341.6 Turnover Cost of Gross Concession Personnel Other Changes Income tax Capex Interest paidnet, Other —_—_Equity free cash sales profit fees! expens
Slide 18: Net working capital as % of turnover
700 20.0% 600 581 10.0% 522 500 485 0.0% 445 449 421 400 -10.0% 300 -20.0% 200 -30.0% 100 -40.0% 0 -50.0% HY' 18 FY' 18 HY '19 FY '19 HY'20 FY '20 NWC as % of Turnover
Slide 19: Cash Flow Statement
CASH FLOW STATEMENT FY 2020 SH FLOW STATEMENT FY in CHF million -41 -401.8 -405.9 “313.9 -27.3 -106.0 “M55 347 6.0 “1,027.3 Cash flow before Lease payments, Adjusted operating Changes Income tax Capex Interest paid, Cash flows related Other financing Equity free WC changes net cash flow in NWC paid
Slide 20: Financing Initiatives Executed in FY 2020
FINANCING INITIATIVES EXECUTED IN FY 2020 Strengthening Dufry’s financial structure 1247 million shares from rights issue and 2.1 million shares from mandatory convertible notes (MCN); gross proceeds include CHF 820.4 from rights issue and CHF 69.5 million from MCN 2 CHF 397 million under new 12-mon
Slide 21: Debt maturity profile
2500 2000 1500 1000 500 0 2020 2021 2022 2023 2024 2025 2026 2027 Term Loan A (USD 700m) Term Loan B (EUR 500m) RCF (EUR 1'300 m) Liquidity Facility (EUR 367m) Convertible Bond (CHF 350 m) EUR Bond (EUR 750 m) EUR Bond (EUR 800 m) Covid-19 related government-backed loans (GBP 50 m + EUR 115 m + CH
Slide 22: Net debt development
Net Debt Change in Net Net Debt Change in Net Equity Net Debt Change in Net Net Debt Business Capital Measures Change in Net Net Debt Dec'19 Debt Mar'20 Debt increase (net) Jun'20 Debt Sep'20 Combination¹ (net)¹ Debt Dec' 20
Slide 23: Cash Consumption
CASH CONSUMPTION FY 2020 Equity Free Cash Flow -483.1 -265.7 -51.0 7227.5 Equity- and financing measures 0.0 145.1 0.0 600.0? FX adjustments & other 47.8 71.2 -24.3 18.7 Change in Net Debt 435.3 7121.8 =75.3 391.2 * Cash consumption defined as Equity Free Cash Flow, also including FX adjustments * S
Slide 24: Liquidity Position
LIQUIDITY POSITION FY 2020 LIQUIDITY POSITION AS OF 31 DEC 2020 in CHF million 1,906 360 1,494 748 1,441 104 Dec-20 =Cash = Available Committed Credit Lines = Available Uncommitted Credit Lines ® DUFRY * Cash and cash equivalents of CHF 360.3 million * Committed available credit lines of CHF 1,441.3
Slide 25: Outlook
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Slide 26: Global Air Travel PAX Recovery Forecasts
GLOBAL AIR TRAVEL PAX RECOVERY FORECASTS Leading associations and data providers expect recovery between 2022-2024 Forecasts Data provider aecorery 2021 vs. 2019 2021 vs. 2020 2022 vs. 2019 ublisation ACI 2023 -37% 72% = 08/12/20 IATA (RPK) 2024 -49% 50% - 03/02/21 IATA (PAX) 2024 -38% 56% - 24/11/2
Slide 27: Turnover Scenarios 2021 and Related Costs and Cash Flow
TURNOVER SCENARIOS 2021 AND RELATED COSTS AND CASH FLOW EFCF break-even at around -40% turnover in 2021 vs 2019 Turnover Scenarios for (turnover FY 2021 vs FY 2019) Sensitivity Analysis -40% -55% Concession Fees (pre-IFRS 16) ~33% of turnover ~35% of turnover Personnel Expenses (fixed & variable) ~1
Slide 28: Re-openings with Positive Sales Trend
RE-OPENINGS WITH POSITIVE SALES TREND Weekly sales relatively stable since Q3 2020 WEEKLY SALES EVOLUTION, in % Week 25 Week29 Week 33 Week 37 Week41 Week 45 Week 49 Week53 Week4 Week 8 15/06to 13/07to 10/08to O7/09to O5/10to O2/llto 30/llto 28/12to 25/Olto 22/02to 21/06 19/07 16/08 13/09/10. 8/1 06
Slide 29: Having Re-opened Around 1,300 Shops Globally
HAVING RE-OPENED AROUND 1,300 SHOPS GLOBALLY Re-opening as a location-specific, shop-by-shop decision in line with PAX NORTH AMERICA SHOPS EUROPE, MIDDLEEAST 6 3 5 AND AFRICA 324” CENTRAL & SOUTH AMERICA 295° ASIA PACIFIC 37° As per end February, around 1,300 shops globally were open, representing a
Slide 30: Encouraging Customer Insights for Accelerating Recovery
ENCOURAGING CUSTOMER INSIGHTS FOR ACCELERATING RECOVERY Customers engage mostly the same with travel retail with shopping main activity CUSTOMER BEHAVIOUR POST-COVID - JUN 2020 VS JAN 2021" CUSTOMER JOURNEY IN THE AIRPORT? I WILL ENGAGE THE SAME OR MORE... ACTIVITIES DONE FROM SECURITY CONTROL UNTIL
Slide 31: Dufry 2021 Priorities
DUFRY 2021 PRIORITIES Preparing the organization to re-initiate profitable growth ol 02 03 04 05 FOCUS ON SECURING DRIVE GROWTH IN ACCELERATE & CONTINUE TO EFFICIENCIES & LIQUIDTIY & CORE & OTHER SCALE UP STRENGHTEN CASH GENERATION REFINANCING CHANNELS DIGITAL SUSTAINABILTY = Continued = Protection
Slide 32: Conclusion
CONCLUSION FY 2020 FY 2020 heavily impacted by health crisis with locations forced to operate with limited capacity or even close temporarily, and short-term disrupted demand solely related to restrictions Dufry decisively initiated mitigating measures, achieving CHF 1,312 million cost savings in 20
Slide 33: Appendix
Slide 34: Turnover Growth Components
TURNOVER GROWTH COMPONENTS FY 2020 Ql‘19 Q2'19 Q3'19 Q4'19 Ql'20 Q2'20 Q3'20 Q4'20 FY ‘20 FY ‘19 Like for Like -13% 0.0% 13% 2.2% -201% -88.5% -76.9% -74.5% -67.2% 0.6% New concessions, net 3% 2.3% 2.8% 0.9% -13% -4.3% -2.8% -16% -2.6% 24% Organic growth 2.0% 2.3% 41% 3.1% -21.4% -92.8% -79.7% — -76
Slide 35: Organic growth by region chart
20% 0% -20% -40% -60% -80% -100% -120%
Slide 36: Organic growth by region chart
40% 20% 0% -20% -40% -60% -80% -100%
Slide 37: Organic growth by region chart
0% -20% -40% -60% -80% -100% -120%
Slide 38: Organic growth by region chart
10% 0% -10% -20% -30% -40% -50% -60% -70% -80% -90% -100%
Slide 39: Retail Space Development
RETAIL SPACE DEVELOPMENT FY 2020 9,600 SQM OF GROSS RETAIL SPACE OPENED FY 2020 9,800 SQM SIGNED SPACE Central & South North America Europe, Middle East & Africa III NINH INN HN 0000001100000) 4,500 America u% 18% Asia Pacific Il IINIININITINIINI 2,200 ‘Asia Pacific Central & South America ||| 700 1
Slide 40: Income Statement Adjusted KPIs
INCOME STATEMENT ADJUSTED KPIs FY 2020 FY 2020 FY 2019 FY 2020 FY 2019 in CHF million Reported % Reported % in CHF million Reported % Reported % Operating Profit (EBIT) (2,500.8) -97.6% 432.8 4% Net Profit to equity holders (2,513.7) -98.1% (26.5) 0.3% Amortization of concession rights * 2511 9.8% 3
Slide 41: Treatment of MAG-Relief under IFRS
TREATMENT OF MAG-RELIEF UNDER IFRS 16 Accounting for FY 2020 DUFRY CASE ACCOUNTING TREATMENT MAG RELIEF * MAG relief received in CASE la: MAG relief granted for 2020 and up to max 2020 triggers different June 2021 - contract signed in 2020 COVID-19 approach with full MAG relief 380.3 IFRS-16 related
Slide 42: Balance Sheet - Overview
BALANCE SHEET - OVERVIEW FY 2020 in CHF million 31 Dec 2020 31 Dec 2019 A ASSETS Property, plant and equipment 453.3 627.1 (173.8) Right of Use assets 4,438.7 4,328.1 110.6 Intangible assets 2196.8 3,236.1 (1,039.3) Goodwill 2,369.3 2,611.3 (242.0) Inventories 659.6 1,050.0 (390.4) Other accounts re
Slide 43: Cash Flow Statement - Overview
CASH FLOW STATEMENT - OVERVIEW FY 2020 FY 2020 FY 2019 A Cash flow before working capital changes (4.1) 2,223.7 (2,227.8) Lease payments, net (401.8) (1,263.7) 861.9 Adjusted Operating Cash Flow (405.9) 960.0 (1,365.9) Changes in NWC (313.9) (24.5) (289.5) Income tax paid (27.3) (97.0) 69.6 Dividend
Slide 44: Upcoming Events
UPCOMING EVENTS 2021 17 Mar 2021 18 Mar 2021 24 Mar 2021 30-31 Mar 2021 12-13 Apr 2021 19-20 Apr 2021 21-22 Apr 2021 26 Apr 2021 18 May 2021 20 May 2021 10 Aug 2021 Subject to changes © DUFRY Citi Virtual Infrastructure & Airline Field Trip Virtual Roadshow Switzerland, Credit Suisse Kepler Digital
Slide 45: IR Contact Details
IR CONTACT DETAILS Natalia Barcellos Senior Investor Relations Analyst Dr. Kristin Koehler Global Head Investor Relations + 41 61 266 44 22 + 4179 563 18 09 kristin.koehler@dufry.com natalia.barcellos@br.dufry.com Carolina Lopes dr. Investor Relations Analyst Eduardo Ganino Investor Relations Analys
Slide 46: Legal Disclaimer
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 this release are based on information avai