SSP Group PLC · LSE:SSPG
SSP — Corporate Update (March 2016)
29 slides from SSP's corporate update, Mar 21, 2016
Slide 1: Site visit to Euston Station
Site visit to Euston Station 21 March 2016
Slide 2: Introduction and Welcome
Introduction and Welcome Kate Swann, Chief Executive Officer foodtravelexperts.com
Slide 3: Euston Station site visit - Timetable
Euston Station site visit - Timetable 4.30 – 5.00pm Introduction and presentations SSP UK in context Kate Swann, CEO, SSP Group SSP in the UK UK strategic priorities Simon Smith, CEO, SSP UK & Ireland Euston and Gino’s 5.00 – 5.30pm Tour of Euston Station 5.30 – 6.30pm Visit to SSP’s Gino D’
Slide 4: SSP in UK Context
SSP in UK Context Kate Swann, Chief Executive Officer foodtravelexperts.com
Slide 5: Steady growth in a mature market
Steady growth in a mature market • UK, an important market for SSP UK Revenue • Mature market 2012: £680 2015: £731m • Strong position, good profitability • Strengthened management team 38% 40% • Key Focus on: 60% 62% Strategic initiatives ─ Like for like sales ─ Gross margin UK EBIT ─ Operating e
Slide 6: SSP in the UK
SSP in the UK Simon Smith, Chief Executive Officer, SSP UK foodtravelexperts.com
Slide 7: UK Market and Strategy
UK Market and Strategy UK Market SSP Strategy • Large market • Focus on driving performance • Modest growth in rail PAX Like for like sales • Stronger growth in air PAX Gross Margin • SSP, market leading positions Operating efficiency Cash generation • Retention, a key focus Rail and Air •
Slide 8: Broad channel and geographic mix
Broad channel and geographic mix Channels Geographic mix c.9,0001 employees 2012 2015 and 1 SSP head office Other Other Air Air Rail Rail 121 88 Sites 18 Rail Air Other 367 121 130 Units Air Presence Rail Presence Other Presence Rail Air Other 1 Including head office employees, excluding Ireland and
Slide 9: Wide ranging portfolio of c.45 individual brands and concepts
Wide ranging portfolio of c.45 individual brands and concepts Third Party Franchised Brands Own Brands and Bespoke Concepts International Local Heroes Proprietary Bespoke concepts 9
Slide 10: Strong financial performance
Strong financial performance Revenue EBIT • Steady progress on top line driven by LFL CAGR 800 2.4% 700 • Increasing passenger travel and retailing £m 600 initiatives 500 400 2012 2013 2014 2015 • Strong increase in EBIT driven by 80 CAGR Gross margin improvement 60 32% £m 40 Operating Efficienc
Slide 11: UK strategic priorities
UK strategic priorities Optimise our offer to benefit from the positive trends in our markets Optimise gross margin and leverage scale benefits Run an efficient and effective business Optimise investment using best practice and shared resource Grow profitable space Source: SSP financial statements,
Slide 12: UK management team
UK management team Simon Smith Peter Casey Luke Tait Andy Webb Chief Executive Chief Operating Chief Financial Business Development Officer Officer Officer Director Employment date June 2014 April 2015 October 2001 February 2013 Rachel Howarth Ian Brown Angela Morrison Lucy Knowles Ciaran Foley HR D
Slide 13: Driving LFL sales growth
Driving LFL sales growth Optimise our offer to benefit from the positive trends in our markets Areas of focus Improve ranges Optimise price and promotion Upselling Maximise use of space Focus on category as well as brand performance 13
Slide 14: Driving LFL: Case Study - Soft drink category management
Driving LFL: Case Study - Soft drink category management Bestsellers Range improvements New chillers and fewer promotions 14
Slide 15: Driving LFL: Case Study – Burger range, premium bars
Driving LFL: Case Study – Burger range, premium bars Classic Cheese & Bacon Ultimate £11.50 £13.50 £15.50 Good Better Best 15
Slide 16: Optimising gross margin
Optimising gross margin Optimise gross margin and leverage scale benefits Areas of focus Procurement disciplines Simplify and standardise recipes Reduce waste and losses 16
Slide 17: Optimising gross margin: Case Study – Premium bars
Optimising gross margin: Case Study – Premium bars Premium Bar Premium Bar Premium Bar Premium Bar A B C D Actual food GP% 83% 80% 80% 68% Breakfast sales 40% 38% 39% 18% Lunch sales 40% 41% 43% 51% Dinner sales 20% 21% 18% 31% 17
Slide 18: Optimising gross margin: Case study – Tomatoes
Optimising gross margin: Case study – Tomatoes Purchasing Usage Bought diced vs. diced in house Sliced by hand vs. sliced by machine 18
Slide 19: Driving efficiency
Driving efficiency Run an efficient and effective business Areas of focus Service optimisation Improve forecasting and scheduling Employ technology to improve efficiency Improve reporting and accountability 19
Slide 20: Driving efficiency: Case Study – Energy and self-service tills
Driving efficiency: Case Study – Energy and self-service tills Self Service Energy efficiency New timers M&S, Euston New data manager Self-service tills Old meter - no data system 20
Slide 21: Driving efficiency: Case Study – CYPAD’s
Driving efficiency: Case Study – CYPAD’s Live data Detailed recording Automatic summaries 22. Correct Hand Washing procedures in place 98% 23. No evidence of cross contamination 97% 24. No items of food or drink past their use 98% 25. No items food or drink past their best 99% 26. First in first out
Slide 22: Optimise investment: Case Study – Fit out costs
Optimise investment: Case Study – Fit out costs Optimise investment using best practice and shared resource Historic cost of Current cost of fit out fit out Savings % (£ Sqm) (£ Sqm) International Coffee Brand £3,200 £2,800 14% International Casual Dining Brand £2,700 £2,300 15% International QSR Br
Slide 23: Growing profitable Space
Growing profitable Space Grow profitable space Areas of focus High renewal rate New units within existing sites Existing markets, new sites New markets 23
Slide 24: Continued brand development core to retention and wins
Continued brand development core to retention and wins 24
Slide 25: Growing profitable space: Case Study – Euston retention
Growing profitable space: Case Study – Euston retention 25
Slide 26: Growing profitable space: Case Study – Stansted Airport win
Growing profitable space: Case Study – Stansted Airport win 26
Slide 27: Euston and Gino’s
Euston and Gino’s Simon Smith, Chief Executive Officer, SSP UK foodtravelexperts.com
Slide 28: Gino is the latest high profile chef to join us…
Gino is the latest high profile chef to join us… 28
Slide 29: Disclaimer
Disclaimer Certain statements in the presentation may constitute “forward-looking statements”. These statements reflect the Company’s beliefs and expectations and are based on numerous assumptions regarding the Company’s present and future business strategies and the environment the Company will ope