Avolta Ag · SIX:AVOL
Avolta — Dufry — Q3 2020 Earnings Presentation
43 slides from Avolta's earnings presentation, October 2020
Slide 1: Q3 2020 Trading Update
Q3 2020 TRADING UPDATE
Slide 2: Agenda
AGENDA 01 = Group Highlights 02 Business Performance 03 ~~ Financial Summary 04 Outlook OS = Appendix wo DU FRY THIRD QUARTER TRADING UPDATE 2020 2
Slide 3: Group Highlights
GROUP HIGHLIGHTS Z l Q3 2020 =
Slide 4: Business Highlights
BUSINESS HIGHLIGHTS Q3 2020 Final Stage Reintegration & Advent & Alibaba Dufry & Alibaba More than 1,350 Group Delisting of Group Join as Group Form of Dufry’s Shops Reorganization & Hudson Significant Strategic Have Reopened Alignment on Track Shareholders Joint Venture Globally New regionalsetup P
Slide 5: Financial Highlights
FINANCIAL HIGHLIGHTS Q3 2020 CHF 2,074 ~CHF 760 CHF ~51 CHF 890 CHF 2,065 million million million million million TURNOVER IN COSTS SAVINGS Q3 2020 CASH GROSS PROCEEDS PRO-FORMA 9M 2020 IN 9M 20° CONSUMPTION CAPITAL INCREASE? LIQUIDITY? CHF 487 million Savings target of Decisive actions Successful C
Slide 6: Business Performance
BUSINESS PERFORMANCE O02 Q3 2020
Slide 7: Organic Growth Evolution Group
ORGANIC GROWTH EVOLUTION GROUP Q3 2020 ORGANIC GROWTH MONTHLY EVOLUTION in % TURNOVER 9M 2020 2,074 cue” " Gradual improvements in Q3 with encouraging travel uptake at peak of holiday season in August 1e% ™ Plateauing since September related to renewed containment measures " Spend per passenger cont
Slide 8: New Regional Composition
NEW REGIONAL COMPOSITION Segment reporting as of 1 September 2020 NORTH AMERICA EUROPE, MIDDLE-EAST & AFRICA’ Canada, USA Germany, UK Italy, Malta, Portugal and Spain Armenia, Bulgaria, Greece, India, Jordan, Kuwait, Serbia, Sri Lanka, Turkey, UAE Cabo Verde, Egypt, Finland, France, Ghana, Ivory Coa
Slide 9: Turnover and Organic Growth by Region
TURNOVER AND ORGANIC GROWTH BY REGION Q3 2020 9M 2020 turnover & organic © srizczo curmover rae EUROPE, MIDDLE EAST NORTH AMERICA ° @ 05 2020 turnover 8 organic & AFRICA vatston growth year-on-year (in %) 513.8° 952.1=° ° . e 121.6 == 274.5 3" CENTRAL & SOUTH AMERICA 390.6%" a 390. 134.5 17.1 = Dist
Slide 10: Net Sales by Region & Sector
NET SALES BY REGION & SECTOR Q3 2020 DUFRY BY REGION - Q3 2020 DUFRY BY SECTOR - Q3 2020 Distribution Europe, Middle Centers East & Africa 2% 57% Duty-paid 56% -73.1% yoy North America net sales Duty-free 25% MA% 7855 %yoy Central & South Asia Pacific net sales America A% 12% = — Regions EMEA and Ce
Slide 11: Net Sales & Performance by Channel
NET SALES & PERFORMANCE BY CHANNEL Q3 2020 DUFRY BY CHANNEL - Q3 2020 Net sales 2020 vs 2019 Pay sate avers III -202% 4% sore domme cease nr eno “% Airports cnet oh eaimytatons6 oe lll -220= 2% Border, downtown, & hotel shops 16.3% * Easing of travel restrictions and uptake of domestic and intraregi
Slide 12: Dufry by Product Category - Q3 2020
| i) i DUFRY BY PRODUCT CATEGORY - Q3 2020 NETSA Q3 2020 | 7 Perfumes & cosmetics;, = publicatic = (ii open are mostly in categor products, perfume & cosme’ | THIRD ouaen2A01Ns UrDATEza0 | & DUFRY Altea. vs 2019 : A LUTTE s OTTO CECE HULA ETHEL 12
Slide 13: Retail Space Development
RETAIL SPACE DEVELOPMENT Highlights Q3 2020 TOTAL RETAIL SPACE sam ~470,000 9 New 12-year concession contract signed New Dufry Shopping store opening at GROSS RETAIL SPACE OPENED - 9M 2020 with Istanbul Sabiha G6kgen International Odessa International Airport, Ukraine Airport, Turkey SQM 4 ] '@] '@]
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Slide 15: Financing Initiatives Executed in 9M 2020
FINANCING INITIATIVES EXECUTED IN 9M 2020 Strengthening Dufry’s financial structure 1 24.7 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 millionfrom MCN (MCN execution subject to final d
Slide 16: Capital Increase Successfully Concluded
CAPITAL INCREASE SUCCESFULLY CONCLUDED Generating gross proceeds of CHF 890 million RIGHTS ISSUE MANDATORY CONVERTIBLE BOND = Issuance of 24,696,516 shares at CHF 33.22 per = Amount of CHF 69.5 million with coupon of share, generating gross proceeds CHF 820.4 4.1% and 3 years maturity million! = Con
Slide 17: Confirming Cost Reduction and Cash Flow Scenarios
CONFIRMING COST REDUCTION AND CASH FLOW SCENARIOS Having put initiatives in place to flexibly manage 2020 challenges Sensitivity Analysis Turnover Scenarios for 2020 -40% -55% -70% Concession Fees (Pre-IFRS 16) Personnel Expenses’ Other Expenses, net Capex ~33% of turnover Reduced by ~20% yoy Reduce
Slide 18: Treatment of MAG-Relief under IFRS
TREATMENT OF MAG-RELIEF UNDER IFRS 16 Accounting examples = Under IFRS 16, changes to concession agreements trigger Modification Accounting (reassessment of Right of Use assets and Lease Liability) * Related to COVID-19, simplified treatment not applying Modification Accounting under specific condit
Slide 19: Debt Overview
DEBT OVERVIEW Q3 2020 NET DEBT EVOLUTION (as of 30 September 2020) DEBT MATURITY PROFILE (as of 30 September 2020) in CHF million in CHF million 3.735 3.291 — 863 5.067 5102 = 3 = 540 = —— 1403} > —— 644 460 Ge | i— — — | 144 Decl8 Marl9 Junl9 Sepl9 Decl? Mar20 Jun20 Sep20 Pro-forma 2020 2021 2022 2
Slide 20: Change in Net Debt
CHANGE IN NET DEBT QS 2020 in CHF million 1% 295 3,537 267 “M45 3,659 3,735 3,102 3,171 Net Debt ‘Change in ND Net Debt ‘Change in ND* Equity Net Debt ‘Change in ND Net Debt Business Rights Issue and Net Debt Sep'20 Decl? Mar'20 increase (net) ‘Jun'20 Sep'20 Combination? MCN (net)? proforma * Change
Slide 21: Cash Consumption
CASH CONSUMPTION QS 2020 a1'20 a2'20 Q3'20 Equity Free Cash Flow -483.1 -265.7 -51.0 Capital Increase 0.0 145.1 0.0 FX adjustments & Other 47.8 71.2 -24.3 Change in Net Debt -435.3 7121.8 DS * Cash consumption defined as Equity Free Cash Flow, also including FX adjustments * Significant reduction du
Slide 22: Liquidity Position
LIQUIDITY POSITION QS 2020 LIQUIDITY POSITION AS OF 30 SEP 2020 * Cash and cash equivalents of CHF 748 million CHF million * Committed available credit lines of CHF 641 2,068 million, thereof 572 1493 "CHF 235 million available under Main 104 104 Syndicated Facilities 641 641 _ = CHF 396 million ava
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Slide 24: Reduction of Complexity through Hudson Reintegration
REDUCTION OF COMPLEXITY THROUGH HUDSON REINTEGRATION Simplifying and streamlining the organization for growth acceleration = Dufry to increase equity ownership in Hudson from 57.4% at present to 100% for total purchase price of ~CHF 295 million = Hudson to become an indirect wholly owned subsidiary
Slide 25: Re-openings with Positive Sales Trend
RE-OPENINGS WITH POSITIVE SALES TREND Weekly sales progressed in June and July and stabilized since end of August WEEKLY SALES EVOLUTION* yoy, in % ORGANIC GROWTH OCTOBER YOY* 16% wom e 7Ib6.4% " Despite some restrictive actions in selected regions sales on stable level, supported by Dufry's broad g
Slide 26: Having Re-opened More Than 1,350 Shops Globally
HAVING RE-OPENED MORE THAN 1,350 SHOPS GLOBALLY Re-opening as a location-specific, shop-by-shop decision in line with PAX NORTH AMERICA 994” EUROPE, MIDDLE EAST AND AFRICA 487 CENTRAL & SOUTH AMERICA ASIA PACIFIC 29°" ® DUFRY As of end-October, almost 55% of Dufry stores are open, representing 72% o
Slide 27: Encouraging Customer Insights for Accelerating Recovery
ENCOURAGING CUSTOMER INSIGHTS FOR ACCELERATING RECOVERY Customers engage mostly the same with travel retail, supported by promotions WHAT WILL MOTIVATE YOU THE MOST TO PURCHASE FOR YOUR NEXT FLIGHT?* 38% Customers post-Covid... 30% 20% * Are motivated by store discounts, and new 12% and exclusive pr
Slide 28: Outlook summary
16 es d qua er ffittforadca mpra ments, p ad er first week of August with 40% restrictions are e cution of Prox reorganization With ; s of ~CHF 760 million in 9M 2020, with final implementation of initiatives fo pe ‘CHF 400 million ae " Disciplined cash flow Qs <0", Cost reduction and casi - * Hudso
Slide 29: Appendix
APPENDIX
Slide 30: Update on Global Air Travel PAX Recovery Forecasts
UPDATE ON GLOBAL AIR TRAVEL PAX RECOVERY FORECASTS Leading associations and data providers with limited visibility for 2021+ Forecasts Data provider fecorery 2020 vs. 2019 2021 vs. 2019 2021 vs. 2020 publiexcion ACI 2024 -58% = = 31/08/20 IATA (RPK) 2024 -66% - - 29/09/20 IATA (PAX) 2024 -55% -27% 6
Slide 31: Turnover Growth Components
TURNOVER GROWTH COMPONENTS QS 2020 Ql'l9 Q2'19 «Q3'19 §=Q4'19 Ql'20. Q2'20 = Q3''20 9M '20 9M ‘19 Like for Like -13% 0.0% 13% 2.2% -20.1% -88.5% -76.9% -64.9% 0.1% New concessions, net 3.3% 2.3% 2.8% 0.9% -13% -4.3% -2.8% -2.9% 2.8% Organic growth 2.0% 2.3% 4.1% 3.1% -214% -92.8% -79.7% -67.8% 2.9%
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Slide 37: Turnover by Currency and FX Translational Impact
FX QS 2020 TURNOVER BY CURRENCY Q3 2020 FX TRANSLATIONAL IMPACT ON TURNOVER Other uso S 33% 36% “0.5% ~0.8% EUR : : ; : ; Gap fUR as. aang ar'20 220 0320 MAIN CURRENCIES DEVELOPMENT DEVALUATION OF LOCAL CURRENCIES a a2 1.2% "10.8% a3 “5% a3 jai ‘x one 7.8% _ smn . 26.5%, yn 7.0% cL a4! ~25.S muggy m
Slide 38: Retail Space Development
RETAIL SPACE DEVELOPMENT 9M 2020 4,700 SQM OF GROSS RETAIL SPACE OPENED 9M 2020 12,100 SQM SIGNED SPACE 9M 2020 North Aner Europe, Middle East & Africa |[INTITIITITIATTIATTNTTIETIEII 8.320 Central & South Europe, Middle Asia Pacific (INIII 1.250 America East & Africa 23% AA% Central & South America
Slide 39: * Signatory member of
* Signatory member of witchingto - — Paper bain. = » ENVIROMENTAL —. = ? y “GOVERNANCE
Slide 40: Upcoming Events
UPCOMING EVENTS 2020/2021 05 Nov 2020 11 Nov 2020 12 Nov 2020 13 Nov 2020 17 Nov 2020 18 Nov 2020 19 Nov 2020 1-3 Dec 2020 3-4 Dec 2020 7-8 Dec 2020 10 Dec 2020 08 Mar 2021 Subject to changes © DUFRY Swiss Equity Conference in Zurich - ZKB Virtual Roadshow Zurich - Kepler Virtual Roadshow Frankfurt
Slide 41: IR Contact Details
IR CONTACT DETAILS DR. KRISTIN KOHLER Global Head Investor Relations F +4179563 18 09 M__ kristin.koehler@dufry.com ® DUFRY NATALIA BARCELLOS Investor Relations F +55 21 99871 0863 M _ natalia.barcellos@br.dufry.com THIRD QUARTER TRADING UPDATE 2020 41
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Slide 43: 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