Avolta Ag · SIX:AVOL
Avolta — Dufry — Q1 2017 Earnings Presentation
26 slides from Avolta's earnings presentation, May 2, 2017
Slide 1: Q1 2017 Results
Q1 2017 Results Organic growth accelerates further May 2, 2017
Slide 2: 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
Slide 3: Agenda
AGENDA 1. Q1 2017 Results 2. Financials Q1 2017 3. Conclusion 3_ Q1 2017 Results Presentation
Slide 4: First Quarter 2017 Results
1 First Quarter 2017 Results 4_ Q1 2017 Results Presentation
Slide 5: Organic growth accelerates to 7.2%
Organic growth accelerates to 7.2% Gross profit margin expands to 59.6% due to WDF synergies EBITDA grows to CHF 154.7 million Cash earnings increase to CHF 0.29 5_ Q1 2017 Results Presentation
Slide 6: Highlights Q1 2017
Highlights Q1 2017 • Turnover of CHF 1,706.8 million in the first quarter of 2017; growth of 4.7% Organic growth continues to • Organic growth of +7.2% accelerate: 7.2% in Q1 2017 • Gross profit margin improves to 59.6% from 58.6% in Q1 2016 • EBITDA grows by 5.6% and reaches CHF 154.7 million WDF s
Slide 7: Turnover analysis
Turnover analysis • Acceleration of organic growth continues; Turnover evolution Turnover grows Q1 2017 at +7.2%, despite calendar 1,720 by 4.7% 1,706.8 effect: 1,700 +4.7% 1,680 • One day less in February (CHF million) Improvement in 1,660 • Easter in Q2 Brazil, Russia 1,630.2 1,640 and Turkey 1,62
Slide 8: Dufry has opened 5,600 m2 of gross retail space in Q1 2017
Dufry has opened 5,600 m2 of gross retail space in Q1 2017 Openings in Q1 2017 5,600 m2 of gross retail North America 37% Southern • 5,600 m2 of gross retail space opened, space opened Europe and including new shops and expansions Africa in Q1 2017 33% UK, Central and Eastern Europe Latin America 2%
Slide 9: 23,000 m2 additional retail space signed for 17/18
23,000 m2 additional retail space signed for 17/18 23,000 m2 signed space • Contract renewals and pursue of new 23,000 m2 concession is an important part of our additional retail Southern Europe and Africa 4,800 activities space signed UK, Central and Eastern 200 for 17/18 Europe • 23,000 m2 of new
Slide 10: Organic growth: Positive forecasts for ongoing passenger growth
Organic growth: Positive forecasts for ongoing passenger growth International PAX growth Q1 2017* International PAX growth forecast Healthy 2017 2018 2019 international 10% 9.0% 8.8% 7.7% Europe 6.3% 4.7% 4.7% PAX growth 8% 7.6% 5.9% Africa 1.5% 2.8% 2.7% 6% 4.3% Asia/Pacific 8.6% 7.7% 7.1% 4% Middl
Slide 11: Dufry's Segmentation (1/2)
Dufry’s Segmentation (1/2) Balanced Dufry by Division Q1 2016 Dufry by Division Q1 2017 concession UK, Central UK, Central and Eastern and Eastern portfolio across Southern Europe Southern Europe 26% 25% divisions Europe and Africa Europe and Africa 17% 17% Asia, Middle Asia, Middle East and East an
Slide 12: Dufry's Segmentation (2/2)
Dufry’s Segmentation (2/2) Dufry by Channel Q1 2016 Dufry by Channel Q1 2017 Airports remain major channel Airports Airports 90% 92% Border, downtown Border, and hotels downtown shops and hotels 4% shops Railway 3% Stations & Railway Opportunities in Other Stations & 4% Other additional 3% Cruise Li
Slide 13: Priorities for 2017 and beyond
Priorities for 2017 and beyond • Organic growth acceleration to be continued with expansion and increase of BOM spend-per-passenger initiatives such as digitalization implementation progressing • Implementation of new Business Operating Model (BOM) according to • Country rollout plan launched in Jan
Slide 14: Financials Q1 2017
2 FINANCIALS Q1 2017 14_ Q1 2017 Results Presentation
Slide 15: Growth performance by division
Growth performance by division Reported growth components Organic growth acceleration Q1 '16 Q2 '16 Q3 '16 Q4 '16 Q1 '17 continued in Q1 Like for Like -6.2% -7.7% -0.6% 5.0% 7.2% 2017 New concessions, net 1.0% 0.4% 0.9% 0.6% 0.0% Organic growth -5.2% -7.3% 0.3% 5.6% 7.2% Changes in scope 63.0% 68.5%
Slide 16: Organic growth: Ongoing reduction of currency volatility impact
Organic growth: Ongoing reduction of currency volatility impact Local currencies vs USD • Currency volatility continuing with Reduced stabilizing trends in most markets volatility in most 16' Q2 -12% markets BRL x USD • Brazilian Real and Russian Ruble 16' Q3 9% 16' Q4 17% 17' Q1 24% devaluation ann
Slide 17: Aggregated FX development
Aggregated FX development Translational FX impact Translational FX impact turned 4.0% 2.2% 2.5% negative in Q3 2.0% 2016 due to GBP 0.0% -2.0% -1.4% -1.9% GBP impact to -4.0% -3.3% Q1 '16 Q2 '16 Q3 '16 Q4 '16 Q1 '17 continue in the next quarter Main currencies development Turnover by currency Q1 ‘17
Slide 18: Income statement Q1 2017
Income statement Q1 2017 Income statement Q1 2017 Strong turnover (CHF million) Q1 2017 % Q1 2016 % growth driven by Turnover 1,706.8 100.0% 1,630.2 100.0% organic growth Gross profit 1,017.2 59.6% 954.5 58.6% Concession fees (466.4) -27.3% (430.7) -26.4% Personnel expenses (268.6) -15.7% (258.6) -1
Slide 19: Cash earnings – strong growth in Q1 2017
Cash earnings – strong growth in Q1 2017 Cash EPS by quarter Cash EPS analysis Cash EPS Q1 2017 Q1 2016 4.00 improves from CHF -0.05 in Q1 2.86 Cash EPS 0.29 -0.05 3.00 2016 to CHF 0.29 Deffered taxes on acquisition- in Q1 2017 2.00 1.74 -0.25 -0.35 (CHF) 1.45 related amortization 1.00 0.29 Lineariz
Slide 20: Cash flow statement
Cash flow statement Cash flow statement Q1 is the less (CHF million) Q1 2017 Q1 2016 important EBITDA before other operational result 154.7 146.5 quarter in the Changes in net working capital (137.6) (26.6) Taxes paid (24.3) (13.3) year Other operational items 2.1 12.2 Dividends from associates - 0.
Slide 21: Capex & Net Working Capital
Capex & Net Working Capital Core Net Working Capital Quarter (1) • Improvement in core net working Core Net 900 10.0% capital management key for cash Working Capital 800 8.3% generation NWC (as % of Turnover) 8.0% continues at NWC (CHF million) 700 6.3% 5.9% 600 5.6% reduced levels 500 5.4% 6.0% 400
Slide 22: Balance sheet
Balance sheet Summary balance sheet as per 31.03.2017 No significant (CHF million) 31.03.2017 31.12.2016 Variation changes in the Concession right finite life 3,683 3,780 -97 balance sheet in Goodwill, Brands, Conc. rights indef. life 2,910 2,923 -14 Q1 2017 Other intangible assets 104 84 20 Other n
Slide 23: Financing & Covenants
Financing & Covenants Net Debt Evolution Debt maturity profile No debt maturity 4,500 3,500 until 2019 3,000 3,956 900 4,000 3,871 3,788 3,838 3,750 2,500 (CHF million) 3,566 534 (CHF million) 3,500 2,000 1,500 855 3,000 1,000 500 1,013 2,500 534 748 0 Deleveraging to 2017 2018 2019 2020 2021 2022 2
Slide 24: Conclusion
3 CONCLUSION 24_ Q1 2017 Results Presentation
Slide 25: Conclusion
Conclusion • Excellent organic growth acceleration of 7.2% in Q1 2017 Continue • Continue to drive organic growth by growing spend per passenger organic growth acceleration • Accelerating commercial initiatives • Digitalization of business • Refurbishing existing operations • Increasing retail space
Slide 26: Thank you
Thank you © DUFRY