Slide 1: Q3 2024 Trading Update
Q3 2024 Trading Update 31 October 2024 1
Slide 2: Agenda
AGENDA 01 9M 2024 Highlights Financials 02 Strategic Update Key Initiatives Reinforced Capital Allocation 03 Conclusion 04 Appendix 22
Slide 3: 9M 2024
9M 2024 3
Slide 4: 9M in a Nutshell
Highlights Financials 9M in a Nutshell • Seventh consecutive quarter of strong performance CORE KPIs in Turnover, EBITDA and EFCF CHFm 9M 2024 9M 2023 % Var • Confidence in medium-term targets reaffirmed Turnover 10,172 9,383 8.4% EBITDA 1,012 894 13.2% • EBITDA & EBITDA Margin EBITDA Margin 9.9% 9.
Slide 5: Region & Category Performance
Highlights Financials Region & Category Performance Turnover (CHFm) 9M 2024 L-f-L OG YoY Geographic Mix1 EMEA 5,268 9.4% 9.2% 52% 32% 12% 4% NA 3,242 5.7% 6.1% EMEA NA LATAM APAC LATAM2 1,159 -2.8% -1.0% Business Lines APAC 425 12.4% 1.1% 35% 36% 29% Group 10,172 6.8% 6.6% L-f-L = Like for Like Dufr
Slide 6: Margin Expansion and Improved EFCF
Highlights Financials Margin Expansion and Improved EFCF EBITDA EBITDA Margin CHFm 1,012 • Commercial performance 443 • Heightened cost discipline 402 • Productivity increases 894 9.9% 11.6% • Active portfolio management 9.5% 11.0% EFCF performance • CAPEX phasing 9M 23 9M 24 Q3 23 Q3 24 • Ahead of
Slide 7: Financial Net Debt and Leverage
Highlights Financials Financial Net Debt and Leverage Leverage of 2.16x Net Debt/ CORE EBITDA Leverage 4.5x 4.5x 4.5x • Medium-term target leverage 1.5x-2.0x 3.52x 2.65x Net Debt CHF 2,617m 2.16x RCF extension 2019 2023 Sep-24 • Maturity extended by 2 years from 2027 to 2029 Leverage Threshold Net D
Slide 8: Strategic Update
Strategic Update 8
Slide 9: Our NorthStar – Strategy "Destination 2027"
Key Initiatives Capital Allocation Our NorthStar – Strategy “Destination 2027” TOP LINE GROWTH, SPP GROWTH & RESILIENCE / PREDICTABILITY Reimagined Food & PROFITABILITY & MARGIN Travel Beverage Retail IMPROVEMENT We make our travelers Traveler We are different! happier! Digital Point INCREASE CASH F
Slide 10: Hybrid Developments
Key Initiatives Capital Allocation Hybrid Developments 25% U.S. tenders with hybrid concepts in 2024 Madrid T4 34 Hybrid stores up and running +40 Additional stores in various stages of tender process promising robust growth Madrid T1 & T2 10
Slide 11: Welcome to Club Avolta
Key Initiatives Capital Allocation Welcome to Club Avolta Our loyalty program, with first-class treatment every Registration Growth step of the journey at 5,100 outlets across 73 countries. Loyalty recruitment in 2024 YTD Loyalty Share of Sales What to expect: is 50% ahead of last year. October 2024
Slide 12: Destination 2027 – Delivering on Targeted Geographical Expansion
Key Initiatives Capital Allocation Destination 2027 – Delivering on Targeted Geographical Expansion Free Duty Acquisition Avolta’s Hong Kong footprint post deal • Acquisition of Free Duty - Closing of transaction subject to CPs • Incremental revenues in APAC CHF 250m at attractive margins • Takes pr
Slide 13: Reinforced Capital Allocation
Reinforced Capital Allocation
Slide 14: Mid-Term Outlook Unchanged
Key Initiatives Capital Allocation Mid-Term Organic Growth +5% - 7% Outlook EBITDA Margin (%) +20 – 40 bps Unchanged EFCF Conversion (%) +100 – 150 bps 14
Slide 15: Reinforced Capital Allocation Policy
Key Initiatives Capital Allocation Reinforced Capital Allocation Policy ▪ Store Network Upgrading Capex to drive growth Invest In Growth ▪ Digital and Technology Transformation (~4% of turnover) (Organic & Inorganic) ▪ Business Development in new locations ▪ Small/medium size selective M&A ▪ Value a
Slide 16: Cancellation of Treasury Shares
Key Initiatives Capital Allocation Cancellation of • Approx. 6.1m treasury shares (4% of issued share capital), to be cancelled in 2024 Treasury Shares • Supported by company’s strong balance sheet and 2024 financial performance in line with Destination 2027 16
Slide 17: Conclusion
Conclusion 17
Slide 18: Conclusion
Conclusion Key Financial Highlights Key Operational Highlights Strategic Update • Strong 9M 2024 – organic • Increased proportion of tenders • Reinforced Capital Allocation growth of +6.6%, Q3 of +5.7% won with hybrid concepts (Retail Policy • 9M EFCF CHF 445m (+46% + F&B) • Cancellation of approx.
Slide 19: Appendix
Appendix 19
Slide 20: FX Q3 2024
FX Q3 2024 Turnover by currency Q3 2024 FX Translation impact on turnover (vs previous year) Other 3.6% 20% 2.4% 2.6% 1.4% 0.0% 0.0% -0.3% -0.8% -0.8% -1.4% -1.5% -1.5% -1.3% -1.3% USD -2.5% -2.8% -1.9% -2.5% GBP 43% -4.4% 9% -6.3% -6.6% -5.8% -12.9% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q
Slide 21: Selected Events Contact
Selected Events 19 November Jefferies Consumer Conference Miami 3-4 December Morgan Stanley, Global Consumer & Retail Conference, NYC 9 January Baader Swiss Equities Conference 2025, Bad Ragaz 10 January Octavian Seminar 2025, Davos Contact Rebecca McClellan Global Head Investor Relations +44 7543 8
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