Ssp Group Plc · LSE:SSPG
Ssp — H1 2025 Earnings Presentation
40 slides from Ssp's earnings presentation, May 20, 2025
Slide 1: The Food Travel Experts
2) F.3sp The Food Travel Experts Too bert put 4 the geneg ee z = 2 a: - aN Patrick Coveney, Group CEO Jonathan Davies, Group Deputy CEO & CFO 20 May 2025
Slide 2: Camden Bar & Kitchen | Stansted Airport
Camden Bar & Kitchen| Stansted Airport
Slide 3: Key messages
Key messages H1 Highlights ¢ Good progress against tightened strategic priorities with opportunities to accelerate in H2 e Group revenue of £1.7bn, up 12%, including like-for-like growth of 5% ¢ Operating profit of £45m, up 31%, with +40bps margin enhancement e Leverage of 2.2x, reflecting working c
Slide 4: Nippon4Ramen | Brisbane Airport
4 Nippon4Ramen | Brisbane Airport
Slide 5: Financial Highlights
Financial Highlights REVENUE EBITDA OPERATING PROFIT £1,661m £114m £45m 412% vs H124 +13% vs H124 +31% vs H124 NET DEBT:EBITDA INTERIM DIVIDEND 2.2X 1.4p +0.6p vs H124 Net Debt: £764m +0.2p vsHi24 7) Note: All figures expressed on an underlying basis and pre-IFRS 16 at Actual FX. Year-on-year growth
Slide 6: Strong LFL sales growth sustained into H1
Strong LFL sales growth sustained into H1 LFL Sales Growth (%YoY) FY25 SSP PFE
Slide 7: H1 sales growth 12% with 5% like-for-like growth
Hi sales growth 12% with 5% like-for-like growth YoY % growth weeks I 1 I 1 I 1 Continental Europe 3% 2% = (2)% 3% I 2% I I 1 1 UK & ROI 8% 1% ° = 9% 1 10% =; 1 1 I I APAC & EEME 13% 12% 24% (10)% 38% | 14% I 1 I 1 1 pe 1 “Including impact of leap year in the prior year. Adjusting for this, LFL was
Slide 8: Underlying operating profit £45m, up 31%
Underlying operating profit £45m, up 31% 2) PF 55p ee. Underlying Operating Profit YOY Growth % Operating Profit % of sales (Pre-IFRS 16) Constant Currency 24 (2)% 6.0% (0.9)% (12) 23% (23)% 0.8% 23 40% 5.5% 1.2% 34 18% 1.8% (2.1)% (24) (20)% n/a n/a 45 31% 28% 0.4%
Slide 9: Group operating margin 2.7%, up 40bps
Group operating margin 2.7%, up 40bps YoY bps change Constant Actual fem 12028 12024 CCurceenisy) CCorceengy Revenue 1,661.1 1,517.2 Gross Profit 1,210.4. 1,095.0 % Sales 72.9% 72.2% 38 7 Labour Costs (5377) (479.7) % Sales (32.4)% (31.6)% (70) (80) Concession Fees (357.3) (322.3) % Sales (21.5)% (2
Slide 10: Underlying Net Loss £3m, £5m improvement YoY
Underlying Net Loss £3m, + £5m improvement YoY an H12025 H12024 Underlying Underlying H12025 Operating Profit Reconciliation of non-underlying items Net Financing Cost (20.3) (16.5) (3.8) | > | Underlying Operating Profit 45.4 Share of Associates 19 1 08 Fixed assetimpairments (21.2) Profit Before T
Slide 11: Minority interest charge £25m, flat YoY
Minority interest charge £25m, flat YoY Operating Profit Minority Interest NV H12025 | H12024 | % change H12025 H12024 % change Participation! North America Continental Europe - UK&ROI! - APAC & EEME 30% India 755% Other 15% Non-attributable - [soup Onacomparablebasis? Memo: India 22 15 47% 12 10 20
Slide 12: H1 net debt £764m reflects H1/H2 seasonality and later Easter
Hi net debt £764m reflects H1/H2 seasonality and later Easter £m Working capital includes timing impact of later Easter 2.2X Net debt/ EBITDA i Net pertciy 1.7x ! le interests nay H financing pidenq & Other 10 764 H mu ee 30 a Exceptional = — a 26 Nom-cash debt i MEE Acquisition 4 18 18 593 EBITDA W
Slide 13: Leverage expected towards lower end of target range at year-end
Due to stronger H2 cash flows, leverage expected to be towards lower end of target range of 1.5-2.0x at year-end Leverage expected to be towards lower end of Significant H2 cash flow expected medium-term range at year-end Net debt: EBITDA Planned second half step up in cash generation + Second half
Slide 14: Upper Crust | Cyprus Airport
14 Upper14 Crust| Cyprus Airport
Slide 15: Strategic priorities
Strategic priorities FY23 & FY24 Strengthening foundations, accelerating growth 2) PF 55p ee. Delivering returns and driving profitability Medium-term Sustainable growth and returns 1S
Slide 16: FY25 priorities: Delivering returns and driving profitability
FY25 priorities: Delivering returns and driving profitability Strong, sustainable Building profitability Further cost bikie RAMSEL 5 F : Rafah investment organic growth in Continental Europe efficiencies and focus on cash c45% || 15%%C.3% | Cc Sobps 20% FY24 FY25 FY25 planned Continental Europe FY25
Slide 17: Sustainable Growth
Sustainable Growth QB) Capitalising on structural tailwinds to deliver growth Global air travel projected to grow Strongest long-term growth forecast Strong SSP growth in markets with strongly in medium-term to come from our focus regions greatest market share opportunity Global air passenger foreca
Slide 18: Sustainable Growth: Enhancing our global proposition and footprint
Sustainable Growth QB) Enhancing our global proposition and footprint North America: Continued growth in market position Continental Europe: Effective mobilisation of renewals Airports entered in H1 include: SSP presence in North American airports 57 54 : L| LI Victoria Airport Dulles Airport, = Can
Slide 19: Building profitability in Continental Europe
Building profitability in Continental Europe )@GX4) Driving a step change in our Continental Europe business Drive returns from our investment programme New leadership team Reduce and optimise cost base Exit German motorway service business Drive like-for-like sales Extensive programme to tackle und
Slide 20: Building profitability in Continental Europe
Building profitability in Continental Europe )@GX4) Continental Europe improving ROCE through better operating margin and lower capex Operating profit margin builds as change Reduced capital allocation driven by more programme takes effect normalised renewal levels CE operating profit margin CE capi
Slide 21: Further cost efficiencies
Further cost efficiencies GX) 3 (4) Driving efficiencies across the Group cost base Addressing eac ost line with a stream of activity Labour costs * Launched review of support centre structures in H2 * Rollout of UK workforce management programme to other regions * Ongoing digital rollout programme
Slide 22: Further cost efficiencies: Workforce Management
Further cost efficiencies CGX2) 3 (4) Labour efficiency programme <i> rN Lav Case Study: Workforce Management ‘Overview of Sales & Team Deployment ick for Detais * Advanced auto-scheduling labour tool er Ses AG Ac Howe * Enhancing customer experience through quicker speed of service jaws * Better co
Slide 23: Further cost efficiencies: Recipe Standardisation
Further cost efficiencies CGX2) 3 (4) Gross margin optimisation = Case Study: Recipe Standardisation Management Sos * Updating recipes in c.250 restaurants, starting with the highest ENTAEES HANDHELDS volume locations + Delivering scalable, repeatable and replicable processes + Efficiencies driven b
Slide 24: Returns and cash generation
Returns and cash generation(1 X2X\3)@4 Driving returns on investments Group ROCE' (pre-tax) to build from 17.7% in FY24 20% ROCE drivers Driving LFL 177% 17.0% European profit recovery Cost efficiencies Targeted capital investment Maturing investment on renewals a i On nS Tackling underperforming in
Slide 25: Returns and cash generation: Driving returns from recent M&A
Returns and cash generation(1 X2X\3)@4 Driving returns from recent M&A Market Canada Australia Indonesia Annualised sales c.£75m c£20m c.£20m c.£100m c.£15m Number of units 40 5 8 62 3 Newairports entered 4 Existing 1 4 2 Completion date Nov 23 Dec 23 Feb 24 May 24 Nov 24 Strategic rationale Infill
Slide 26: Investment in renewals and extensions will reduce in FY26
Returns and cash generation Investment in renewals and extensions will reduce in FY26, underpinning returns improvement % of business renewed (on sales basis) 20% HActual GForecast HIGHER % overall Covid Catch Up Phase portfolio renewals 15% 1% a a. Normalised renewals level ¢.10% : P&L pressure fro
Slide 27: Strengthening net cash flow through lower capex
Returns and cash generation Strengthening net cash flow to be delivered through lower capex and optimisation of working capital Group capex reflects more focused investment and lower renewal spend Driving cash conversion Group capital expenditure (£m) Renewals and maintenance IllNew contracts i Covi
Slide 28: The Kitchen | Houston George Bush Airport
28 28 The Kitchen | Houston George Bush Airport
Slide 29: Focused on what we can control in an uncertain consumer backdrop
Focused on what we can control in an uncertain consumer backdrop Mixed air passenger trends ‘Self help’ actions Growth in revenue passenger kilometres by region! 20% (+) Generating group cost efficiencies 15% Driving returns on investments 10% 5% | | IL | |! | (+) Optimising like-for-like sales A |
Slide 30: FY25 guidance maintained
FY25 guidance maintained FY 2024 Operating profit Like-for-like: 4-5% Net gains: c.4% M&A (already completed): 2-3% German MSA exit and TFS JV with AAHL: c.(2)% Building returns from recent renewals/new business Full-year contribution of recent M&A Improving Continental European operating profit mar
Slide 31: IPO of TFS in India targeted for summer
IPO of TFS in India targeted for summer Planned activity timeline’ Targeted pee Summer 2025 Expected Publication . bid/offer . . and filing of Marketing SEBI Updated period, SSP Begin tracing se 2 draft RH and investor approval prospectus purchase of Fansaction Ty co |6s hy iden’ prospectus educatio
Slide 32: Urban Crave | Dulles Airport
• • • • • Urban Crave | Dulles Airport
Slide 33: Cloud Picker | Dublin Airport
Cloud PIcker| Dublin Airport
Slide 34: Trattoria Tavolare | Oslo Airport
Trattoria Tavolare | Oslo Airport
Slide 35: 2025 Technical Guidance
2025 Technical Guidance On a pre-IFRS 16 basis 2025 expectation: Net finance costs: c£45m Associates: c.£10m Effective tax rate: 21-22% Minority interests: £60-65m Working capital: Growth broadly in line with sales Capex: <£230m Leverage: Target range of 1.5x to 2.0x (Net Debt: EBITDA), with the usu
Slide 36: FY2024 currency contribution
FY2024 currency contribution 20% 28% 28% a 2 4% 1% 12% Operate 15% B-. 5% Sales EBITDA 5 "4 a : 14% Vw 10% 16% Od 29% 5% Hl Pound sterling Jus dollar Hh euro HBB Nordic currencies indian Rupee — Egyptian Pound [Canadian Dollar Other currencies 7-1 FF 35p se. 6
Slide 37: Understanding JV partner contributions to capex spend
Understanding JV partner contributions to capex spend Group capital investment reconciliations Accounting for capital contributions from JV partners H12024 H1 2025 Capex gross of JV partner share 152 rt) JV partner contributions - 8 10 NAmerica Reported capex 144 130 JV partner contributions - 6 Asi
Slide 38: A sustainable model for shareholder value creation
A sustainable model for shareholder value creation Our medium-term guidance (2026-28) Revenue Profitability Capital deployment Capital allocation 2) FF 35p se. Total sales growth: 5-7% p.a. LFL growth: c.3% p.a. Net gains: 2-4% p.a., weighted to North America and APAC & EEME Operating profit margin
Slide 39: Near-term capital allocation priorities
Near-term capital allocation priorities SUSTAINABLE BALANCE SHEET PROFITABLE ORGANIC GROWTH ORDINARY DIVIDEND SURPLUS CAPITAL RETURNED 2D FF 35p se. Target net debt/EBITDA c.1.5x-2.0x FY 24 leverage of 1.7x; HI FY25 leverage of 2.2x driven by seasonal cashflows Renewals and net gains:> 20% IRR hurdl
Slide 40: M&S Food | Edinburgh Waverley
M&S Food | Edinburgh Waverley