Ssp Group Plc · LSE:SSPG
Ssp — FY2021 Earnings Presentation
36 slides from Ssp's earnings presentation, Dec 5, 2021
Slide 1: Preliminary Results 2021
The Food Travel Experts Preliminary Results 2021 www.foodtravelexperts.com
Slide 2: Agenda
Agenda 1. Group highlights Jonathan Davies 2. Financial review Miles Collins 3. Business review Jonathan Davies 4. Q&A All 2 SSP: The Food Travel Experts
Slide 3: Group highlights: Strong H2 Performance
Group highlights: Strong H2 Performance • Revenue recovering to 38% of 2019 levels • Positive EBITDA in H2, taking full year EBITDA to -£108m • Profit conversion 22% on the lost sales vs 2019, in line with H1 and ahead of previously indicated range of 25% - 30% • Free cash generation of £83m in H2,
Slide 4: Financial review
Financial review Full year Results 2021 Miles Collins, Director of Group Finance SSP: The Food Travel Experts
Slide 5: Group financial overview
Group financial overview 2021 2020 Reported Pre IFRS 16 Reported Pre IFRS 16 £m (IFRS 16) basis (IFRS 16) basis Revenue 834.2 834.2 1,433.1 1,433.1 Revenue % vs 2019 (70.1)% n/a (48.7)% n/a EBITDA* 23.1 (108.3) 103.4 (98.2) Operating Loss* (323.3) (209.0) (315.4) (211.7) Loss Before Tax* (393.1) (25
Slide 6: Underlying Operating Loss of £209m (pre IFRS 16 basis)
Underlying Operating Loss of £209m (pre IFRS 16 basis) 2021 £m Reported (IFRS 16) Pre IFRS 16 basis Revenue 834.2 834.2 Gross Profit 599.4 599.4 % Sales 71.9% 71.9% Labour Costs (352.2) (352.2) % Sales (42.2)% (42.2)% Concession Fees (96.4) (215.8) % Sales (11.6)% (25.9)% Overheads (127.7) (139.7) %
Slide 7: Underlying Net Loss of £222m (pre IFRS 16 basis)
Underlying Net Loss of £222m (pre IFRS 16 basis) 2021 Reported Pre IFRS 16 £m (IFRS 16) basis Operating Loss* (323.3) (209.0) Net Financing Cost* (72.1) (43.7) Share of Associates 2.3 1.7 Loss Before Tax* (393.1) (251.0) Tax* 50.6 30.6 Non-Controlling Interests* 18.6 (2.1) Net Loss* (323.9) (222.5)
Slide 8: Non-Underlying items (IFRS 16)
Non-Underlying items (IFRS 16) Charged to £m Cash flow P&L Impairments and accelerated depreciation Tangible Assets (24.4) - Intangible Assets (26.4) - IFRS 16 Covid rent waivers 92.0 - Restructuring costs (18.1) (18.1) Amendment and extension fees re bank loans* (5.4) (5.4) Other (3.6) (0.3) Operat
Slide 9: H2 revenue 38% of 2019 levels
H2 revenue 38% of 2019 levels FY21 FY22 Q1 Q2 H1 Q3 Q4 H2 Q1 to date* 70% Revenue % of 2019 60% 66% 50% 47% 40% 38% 30% 20% 27% 22% 19% 20% 10% 0% * Q1 to date comprises the period 1 October – 5 December 2021 9 SSP: The Food Travel Experts
Slide 10: Revenue progression by region
Revenue progression by region 90% Latest week* vs 2020 vs 2019 80% UK 61% 63% % of pre Covid revenue** Continental Europe 70% Continental Europe 70% 69% Rest of World 45% 46% North America 60% North America 67% 79% UK Group 63% 65% 50% Rest of World 40% 30% 20% 10% 0% Oct Nov Dec Jan Feb Mar Apr May
Slide 11: Impact of Covid-19 on 2021 sales and profit
Impact of Covid-19 on 2021 sales and profit Sales Operating Profit/(Loss)* 3,000 250.0 £2,795m £-1,005m £221m £-223m 200.0 2,500 22% drop-through 150.0 on sales impact 2,000 100.0 £-956m 50.0 £-207m £-209m £m £m 1,500 0.0 -50.0 1,000 £834m -100.0 500 -150.0 -200.0 - -250.0 2019 H1 Covid impact H2 Co
Slide 12: Underlying operating loss of £209m (pre IFRS 16 basis)
Underlying operating loss of £209m (pre IFRS 16 basis) Cost saving £m 2021 Full Year YoY (vs 2019) vs 2019 % Revenue 834.2 (1,960.4) Labour Gross Profit 599.4 (1,388.5) 57% % Sales 71.9% 0.8% Labour Costs (352.2) 457.1 % Sales (42.2)% (13.2)% Concession fees Concession Fees (215.8) 336.0 61% % Sales
Slide 13: Unit openings closely aligned to passenger recovery
Unit openings closely aligned to passenger recovery 70% 60% Units open and sales % vs 2019 50% 40% Group % of units open 30% Sales % 20% 10% 0% October November December January February March April May June July August September 13 SSP: The Food Travel Experts
Slide 14: Slightly above break-even EBITDA in H2 (pre IFRS 16 basis)
Slightly above break-even EBITDA in H2 (pre IFRS 16 basis) £m H1 2021 H2 2021 2021 Full Year Revenue 256.7 577.5 834.2 % of 2019 20.3% 37.7% 29.9% Gross Profit 185.5 413.9 599.4 % Sales 72.2% 71.7% 71.9% Labour Costs (146.6) (205.7) (352.3) % Sales (57.1)% (35.6)% (42.2)% Concession Fees (85.0) (130
Slide 15: Net Free Cash inflow £83m in H2
Net Free Cash inflow £83m in H2 2021 2021 2021 £m H1 H2 Full Year EBITDA* (110.3) 2.0 (108.3) Working Capital 22.1 149.6 171.7 Capital Expenditure (25.2) (44.2) (69.4) Net Tax (0.4) 1.5 1.1 Other (0.4) (1.5) (1.9) Underlying Operating Cash Flow* (114.2) 107.4 (6.8) Net Financing Costs (16.1) (16.8)
Slide 16: Net Debt £308m (pre IFRS 16 basis)
Net Debt £308m (pre IFRS 16 basis) £m Net Debt at start of year (692.0) Net Free Cash Flow (58.1) Net proceeds from April 2021 Rights Issue 450.8 Other non-cash movements (8.7) Net Debt at end of year (pre IFRS 16 basis) (308.0) Lease Liabilities (1,172.4) Net Debt at end of year (IFRS 16 basis) (1,
Slide 17: £935m Available Liquidity at September 2021
£935m Available Liquidity at September 2021 £m Cash at end of September 2021 774 Further Undrawn Facilities: RCF 150 Other Local Facilities 11 Available Liquidity September 2021 935 CCFF repayment (February 2022) (300) Pro forma Liquidity post CCFF repayment 635 Pro forma Liquidity post CCFF repayme
Slide 18: Summary and Outlook
Summary and Outlook FY 2021 Results • Good second half performance, following resilient first half • Positive EBITDA in H2 with sales recovering to 38% of 2019 levels, up from 20% in H1 • Free cash generation of £83m in H2, reducing full year cash usage to £58m • Liquidity at the year end of £935m,
Slide 19: Business Review
Business Review Preliminary Results 2021 Jonathan Davies, Deputy CEO & Group CFO SSP: The Food Travel Experts
Slide 20: A phased response to COVID – in Recovery & Rebuild phase
A phased response to COVID – in Recovery & Rebuild phase Post-Covid Covid Travel Environment environment Business Protection Hibernation Recovery & Rebuild Sustainable Growth Recovery & Rebuild Sustainable Growth • Reopen units in line with demand to deliver efficient profit • Drive LFL sales throug
Slide 21: Regional review: UK & Ireland and Continental Europe
Regional review: UK & Ireland and Continental Europe UK & Ireland Continental Europe • Rapid unit mobilisation c. 400 outlets, >70%, now open. Sales • Rapid unit mobilisation with c. 860 outlets, c.78%, now open currently c. 63% v 2019 • Sales currently c. 69% v 2019: Frabel c. 80%, DACH c. 65%, • R
Slide 22: Regional review: North America and Rest of the World
Regional review: North America and Rest of the World North America Rest of the World • Sales now c. 80% of 2019 level: driven by USA at c.90% with • Sales now 45% of 2019 level. Mixed picture with: India c. 88%, c. 240 outlets, 69%, now open Australia c. 46%, Thailand c. 18%, Egypt c. 123% • Recover
Slide 23: SSP's Strategy for Sustainable Growth
SSP’s Strategy for Sustainable Growth LFL Sales Growth Business Development Efficient Conversion • Recovery and structural growth in travel • Contract renewals & extensions • Gross margin optimization • Range, menus and pricing optimization • Existing pipeline mobilization • Labour & overhead effici
Slide 24: Embedding sustainability in our business
Embedding sustainability in our business 24 SSP: The Food Travel Experts
Slide 25: Sustainability strategy: Key targets
Sustainability strategy: Key targets Supporting and protecting our colleagues and communities targets include: • Undertake and publish the headline results of an annual colleague engagement survey • At least one third of Board members to be female by 2021, have at least one person of colour and have
Slide 26: Sustainability: supporting healthier lifestyle choices
Sustainability: supporting healthier lifestyle choices 26 SSP: The Food Travel Experts
Slide 27: LFL sales growth: SSP well placed to benefit from rapid rebound of domestic and leisure travel
LFL sales growth: SSP well placed to benefit from rapid rebound of domestic and leisure travel SSP Pre COVID revenue mix Recent trends Medium Term Expectation unchanged c60% of SSP business is driven by Air domestic passenger travel Air passenger numbers for SSP expected • UK & European rail (30% of
Slide 28: Business Development: Pipeline strengthened with significant further opportunities
Business Development: Pipeline strengthened with significant further opportunities • High retention rate maintained during COVID Contract Renewals and Extensions • Extensions on favourable terms • Downside protection on Minimum Guaranteed Rents • c. 200 additional units already secured but not built
Slide 29: Business development: Contract Renewals and Extensions
Business development: Contract Renewals and Extensions Suvarnabhumi • Six-year contract worth c. £200m of sales • 34 food & beverage locations throughout the domestic and international terminals • Mix of local brands, proprietary brands (including Upper Crust & Camden Food) and international brands
Slide 30: Secured new business pipeline of c. £275m
Secured new business pipeline of c. £275m Split of new units in the pipeline yet to open Mobilisation of Existing Pipeline (by Annual Sales) • Around 200 additional units already secured but not yet trading • Expected to add c. £275m to sales (by 2024)* • Significant contracts include: Dublin, La Gu
Slide 31: Business development: Mobilising existing pipeline
Business development: Mobilising existing pipeline Malaysia Paris (Extime JV) • 29 units won across 2 airports (Kuala Lumpa and Kuching) • 109 units won, of which 64 will be net additional units. on back of earlier win of six lounges. • Will be operated as a 50:50 JV with ADP • Will be operated as a
Slide 32: Business development: Competitor withdrawals
Business development: Competitor withdrawals Copenhagen London Luton Delhi London Gatwick Zurich Gold Coast Hamburg Perth Glasgow 32 SSP: The Food Travel Experts
Slide 33: Efficient Conversion: Margin recovery underpinned by operational efficiency
Efficient Conversion: Margin recovery underpinned by operational efficiency… building on Covid learnings Covid learnings Focus on operational efficiencies • Range and menu simplification • Production automation • Renegotiation of rents and removal of MGRs • Labour scheduling systems • Brand partner
Slide 34: Summary
Summary • Good performance in H2 2021 … well ahead of earlier expectations • Positive EBITDA in H2 • Cash generation • Strong liquidity • Recovery in travel sector led by domestic and leisure travel … some uncertainty over the winter months • Material pipeline of secured new contracts to mobilise •
Slide 35: Q&A Preliminary Results 2021
Q&A Preliminary Results 2021 SSP: The Food Travel Experts
Slide 36: Disclaimer
Disclaimer Certain statements in the presentation may constitute “forward-looking statements”. These statements reflect the Company’s current beliefs and expectations and are based on numerous assumptions regarding the Company’s present and future business strategies and the environment the Company