Avolta Ag · SIX:AVOL
Avolta — Dufry — FY2010 Earnings Presentation
30 slides from Avolta's earnings presentation, March 2011
Slide 1: Dufry Presentation – 2010 Full Year Results
Board of Directors Zurich, 24 March, 2009 Dufry Presentation – 2010 Full Year Results March 2011 1
Slide 2: Legal Disclaimer
Board of Directors Zurich, 24 March, 2009 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
Slide 3: Agenda
Board of Directors Zurich, 24 March, 2009 Agenda 1. Overview 2010 Results & Main Events 2. Dufry Strategy 3. Financials 4. Conclusion 3
Slide 4: 1. Overview 2010 Results & Main Events
Board of Directors Zurich, 24 March, 2009 1. Overview 2010 Results & Main Events 4
Slide 5: Main Events 2010
Board of Directors Zurich, 24 March, 2009 Main Events 2010 • Growth outperforming passenger traffic – Global passenger traffic growth of 6.3% over 2009 – 15% turnover increase on constant FX rates – Gross margin of 57.5% versus 55.9% in 2009 – 19% EBITDA increase on constant FX rates – Double digit
Slide 6: Key Figures 2010
Board of Directors Zurich, 24 March, 2009 Key Figures 2010 Turnover and EBITDA Evolution 9.7% 2,800 2,610 2,600 12.5% 2,379 • Turnover at constant FX rates 2,400 9.5% 2,114 14.8% to CHF 2,730 m 2,200 34.4% 1,930 2,000 1,800 • Gross margin improved to 57.5% from 55.9% (CHF million) 1,600 CAGR 1,436 1
Slide 7: Update on Passenger Growth
Board of Directors Zurich, 24 March, 2009 Update on Passenger Growth International PAX Growth 2010 Historic &Organic forecast GDP and Passengers Growth growth x Total Pax growth x GDP 160 15% 14.2% 12.1% 140 10.4% 10% CAGR = 5.1% 8.3% (03-09) 7.5% 120 5.7% 4.5% CAGR = 2.5% 5% (03-09) 100 0% 80 2003
Slide 8: Update on Business Development
Board of Directors Zurich, 24 March, 2009 Update on Business Development Changes in the Retail Space in 2010 Expected new space for 2011 Added Closed Net Region Africa Eurasia space space effect 4% 7% Central Europe 3,670 1,939 1,731 America & Europe Caribbean Africa 995 189 806 15% 36% Eurasia 4,01
Slide 9: 2. Dufry Strategy
Board of Directors Zurich, 24 March, 2009 2. Dufry Strategy 9
Slide 10: Dufry's Positioning
Board of Directors Zurich, 24 March, 2009 Dufry’s Positioning Evolution of Dufry 2003–2010 Dufry Key Aspects 2003 2010 Growth CAGR %(2) Dufry has a clear and consistent Countries 25 41 64% 7% business model and strategy Airports 47 143 204% 17% • Global leading player in travel retail Shops 227 1,14
Slide 11: Shop Concepts
Board of Directors Zurich, 24 March, 2009 Shop Concepts General Travel Retail Shops Brand Boutiques Duty free shop - Italy Victoria’s Secret shop - US News and Convenience Stores Specialized Shops Hudson News shop - US Jewelry shop - Barbados 11
Slide 12: Globally Diversified and Focused on Emerging Markets and Tourist Destinations
Board of Directors Globally Diversified and Focused on Zurich, 24 March, 2009 Emerging Markets and Tourist Destinations Mediterranean Corridor Asia The Americas 12
Slide 13: Dufry's Sales Performance 2010
Board of Directors Zurich, 24 March, 2009 Dufry’s Sales Performance 2010 Dufry per Region Dufry by Product Electronics Other Developed Tobacco 3% 4% Europe Perfumes and Markets goods 12% cosmetics North America 8% 23% Africa Fashion, 29% 7% Leather and Baggage Eurasia 8% 9% Watches, Jewelry and Acce
Slide 14: Global Growth Opportunities
Board of Directors Zurich, 24 March, 2009 Global Growth Opportunities Organic growth Passengers TOP-LINE GROWTH: 24% p.a. (1) 20% 17% • Significant historic and 14% 15% projected growth in all areas 10% 10% 10% 8% Productivity 5% 5% • Penetration 0% – Improved retail concept Spend per 2004 2005 2006
Slide 15: Travel Retail Market
Board of Directors Zurich, 24 March, 2009 Travel Retail Market Travel Retail Development by Region Long-term Growth by Sales Channel 100 12% 85 10% CAGR = 8.1% 80 10% 48% 8% (USD billion) 60 6% 6% CAGR = 6.9% 6% 39 2% 40 20% 40% 4% 3% 20 2% 20 23% 30% 1% 30% 2% 25% 44% 35% 0 0% 2000 2010 2020 Airpor
Slide 16: Travel Retail Market
Board of Directors Zurich, 24 March, 2009 Travel Retail Market Travel Retail Market by Channel in 2010 Airport Retailing forecast market Size 50 Airline Airport Shops 7% 40 60% 6% (USD millions) Ferries 7% 6% 30 60% 44.1 40.4 36.7 32.9 20 29.4 28% 25.0 27.1 Other 10 28% 2009 2010 2011 2012 2013 2014
Slide 17: Dufry Plus One and One Dufry: 360º Approach to Business
Board of Directors Dufry Plus One and One Dufry: Zurich, 24 March, 2009 360º Approach to Business - Assortment - Group application Turnover - Promotions plan upgrades - Sales training Gross Margin - Central data warehouse - New bonus incentive - Standard organization - Shop layout Operational - IT E
Slide 18: 3. Financials
Board of Directors Zurich, 24 March, 2009 3. Financials 18
Slide 19: Turnover Growth
Board of Directors Zurich, 24 March, 2009 Turnover Growth Turnover Growth Evolution Turnover Growth Components 30% 25% 24% 20% Organic Growth 10.1% 11% 15% New Concessions 4.7% 15% 5% Turnover Growth at constant FX 14.8% 10% 6% FX Translation Effect -5.1% 5% 10% 7% Reported Growth 9.7% 0% CAGR 2010
Slide 20: FX Impact
Board of Directors Zurich, 24 March, 2009 FX Impact USD/CHF Development EUR/CHF Development 1.200 1.600 1.150 1.514 1.520 1.150 1.509 1.113 1.497 1.109 1.500 1.463 1.100 1.058 1.063 EUR/CHF USD/CHF 1.409 1.050 1.032 1.400 1.021 1.333 1.323 1.000 0.973 1.300 1.287 0.946 0.950 0.900 1.200 Q1 Q2 Q3 Q4
Slide 21: Key Business Drivers
Board of Directors Zurich, 24 March, 2009 Key Business Drivers Profit Metrics Gross Profit Margin 60% (CHF million) 2010 % 2009 % 2010/2009 57.5% 55.9% 54.5% 55% GROSS PROFIT 1,501.9 57.5% 1,329.4 55.9% 13.0% as % of Turnover 53.3% +11.1 p.p. 51.8% EBITDA 49.7% 50% 48.0% Constant FX 359.0 13.1% 301.
Slide 22: Income Statement
Board of Directors Zurich, 24 March, 2009 Income Statement (CHF million) Dec '03 % Dec '07 % Dec '08 % Dec '09 % Dec '10 % Turnover 685.7 100.0% 1,930.3 100.0% 2,113.5 100.0% 2,378.7 100.0% 2,610.2 100.0% Gross profit 318.1 46.4% 1,028.0 53.3% 1,151.9 54.5% 1,329.4 55.9% 1,501.9 57.5% Concession fee
Slide 23: Net Earnings / Earnings Per Share
Board of Directors Zurich, 24 March, 2009 Net Earnings / Earnings Per Share Core Earnings Per Share Net Earnings 8.00 CHF million 2010 2009 Growth 7.50 NET EARNINGS 144.8 97.3 48.8% 7.00 6.54 Minority Interest 28.2 58.8 6.50 5.98 Equity Holders of the Parent 116.6 38.5 6.00 (CHF) 5.50 5.29 5.00 4.40
Slide 24: Summary Balance Sheet December 2010
Board of Directors Zurich, 24 March, 2009 Summary Balance Sheet December 2010 (CHF million) 2,139 2.139 PP&E (13%) 226 815 Equity (47%) Intangible assets (69%) 1,189 638 Net Debt (37%) Other non current assets (2%) 38 19 Non current liabilities (1%) Net Working Capital (9%) 153 9 Deferred tax liabil
Slide 25: Cash Flow Statement
Board of Directors Zurich, 24 March, 2009 Cash Flow Statement In millions of CHF 2010 2009 Net debt - Dec 31 (609.8) (824.2) Cash flow before working changes 372.8 313.9 Change in net working capital (10.3) 105.5 Income taxes paid (35.5) (30.0) Net cash flows from operating activities 327.0 389.4 Ca
Slide 26: Financing and Covenants
Board of Directors Zurich, 24 March, 2009 Financing and Covenants Net Debt Evolution Change in Net Debt 1,000 943 20 180 33 (CHF million) 900 373 824 808 122 610 46 638 800 458 (CHF million) 723 717 700 643 650 638 610 613 600 500 537 470 458 400 Net Debt Net Debt PF* * Net Debt PF excluding dividen
Slide 27: Trading Volumes
Board of Directors Zurich, 24 March, 2009 Trading Volumes Dufry AG Share Price Daily Average Volume in CHF 140 16.0 14.5 120 14.0 100 +260% 12.0 (CHF millions) 10.0 9.3 80 (CHF) 8.0 60 6.0 40 +21% 4.0 3.1 2.7 20 1.9 1.7 2.0 0 0.0 Jan/09 May/09 Sep/09 Jan/10 May/10 Sep/10 Jan/11 2006 2007 2008 2009 2
Slide 28: 4. Conclusion
Board of Directors Zurich, 24 March, 2009 4. Conclusion 28
Slide 29: Conclusion/Outlook
Board of Directors Zurich, 24 March, 2009 Conclusion/Outlook • Continued focus on driving operational performance and improve cash management – Productivity improvements – Gross margin increase – Operational cost management – Global cash pooling • Growth through new concessions and acquisitions – St
Slide 30: Thank You
Board of Directors Zurich, 24 March, 2009 Thank You 30