Avolta Ag · SIX:AVOL
Avolta — Dufry — Q1 2010 Earnings Presentation
32 slides from Avolta's earnings presentation, May 2010
Slide 1: Dufry Presentation – 1Q10 Results
Board of Directors Zurich, 24 March, 2009 Dufry Presentation – 1Q10 Results May 2010 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 1Q10 Results 2. Dufry Strategy 3. Financials 4. Conclusion 3
Slide 4: 1. Overview 1Q10 Results
Board of Directors Zurich, 24 March, 2009 1. Overview 1Q10 Results 4
Slide 5: Main Events 1Q10
Board of Directors Zurich, 24 March, 2009 Main Events 1Q10 • Return to growth – Strong organic growth of Dufry – Positive passenger growth • Retail network – Openings of 48 new shops in Q1 2010 – Opening of shops at Hongqiao airport in Shanghai in March 2010 • 13 shops with a total of 1‘410 square m
Slide 6: Key Figures 1Q10
Board of Directors Zurich, 24 March, 2009 Key Figures 1Q10 Turnover and EBITDA Evolution 2,600 12.5% 2,379 2,400 9.5% 2,200 2,114 • Turnover at constant FX rates 2,000 1,930 +15.7% to CHF 625 m 1,800 34.4% 1,600 1,436 • Gross margin improved 1,400 51.2% to 56.6% from 55.4% 1,200 1,000 950 800 19.6%
Slide 7: Passenger Growth
Board of Directors Zurich, 24 March, 2009 Passenger Growth PAX Growth March YTD International PAX Forecast 20% 18.2% 2010 2011 2012 2013 15.0% 15.4% 15% EUROPE 1.2% 2.7% 2.6% 2.6% NORTH AMERICA 1.3% 1.9% 2.1% 2.0% 10% 8.4% LATIN AMERICA 6.3% 3.4% 3.3% 3.2% 5.5% ASIA/ PACIFIC 12.5% 7.2% 6.8% 6.6% 4.8
Slide 8: Business Development Update
Board of Directors Zurich, 24 March, 2009 Business Development Update Openings in 2009 and Q1 2010 Current Project Pipeline by Retail Space Location Date Additional sqm Europe Africa Grandi Stazioni, Italy Oct-09 1,734 3% 2% Milan Train Station, Italy Nov-09 1,652 Torino Train Station, Italy Nov-09
Slide 9: Rio de Janeiro International Airport
Board of Directors Zurich, 24 March, 2009 Rio de Janeiro International Airport Shops’ Informations Dufry’s Position RJ Legal As % of As % of As % of case RJ Total Brazil Group • Dufry is confident that existing contracts are valid No. of shops 6 86% 11% 1% SQM 3,947 95% 34% 3% – Reviewed by lawyers
Slide 10: Dufry 2010-15: Strategic Plan
Board of Directors Zurich, 24 March, 2009 Dufry 2010-2015 Dufry 2010-15: Strategic Plan AIRPORT AUTHORITIES 14.2857% & LANDLORDS 14.2857% EMPLOYEES SHAREHOLDERS ORGANIZATION HR 14.2857% & INVESTORS Mid-Term Plan 2010 - 2012 CUSTOMERS 14.2857% DUFRY +1 ONE DUFRY INFORMATION TECHNOLOGY 14.2857% SOCIET
Slide 11: 2. Dufry Strategy
Board of Directors Zurich, 24 March, 2009 2. Dufry Strategy 11
Slide 12: Proven Track Record of Delivering Growth
Board of Directors Proven Track Record of Zurich, 24 March, 2009 Delivering Growth Dufry Key Facts Evolution of Dufry 2003–2009 2003 2009 Growth CAGR % • 40 countries Countries 25 40 60% 8% • 145 airports Airports 47 145 209% 21% • 1,097 shops Shops 227 1'097 383% 30% • Around 340 concessions Retail
Slide 13: Leading Global Travel Retailer
Board of Directors Zurich, 24 March, 2009 Leading Global Travel Retailer Mediterranean Corridor Asia Corridor Latin America Corridor 13
Slide 14: Dufry's Performance 1Q10
Board of Directors Zurich, 24 March, 2009 Dufry’s Performance 1Q10 Dufry per Region Dufry by Product Europe Other Electronics 11% North 13% 3% America Africa Perfumes & 28% 6% Tobacco cosmetics goods 23% Developed 8% Markets Eurasia 9% Watches & jewelry 11% Food 17% Literature & Central Publications
Slide 15: Global Growth Opportunities
Board of Directors Zurich, 24 March, 2009 Global Growth Opportunities Organic growth CAGR 7% Passengers 20% 17% • Significant historic and 15% 14% projected growth in all TOP-LINE GROWTH: 26% p.a. (1) 10% 11% areas 10% 8% 5% Productivity 5% • Penetration – Improved retail concept 0% Spend per Dec '0
Slide 16: Travel Retail Market Trends
Board of Directors Zurich, 24 March, 2009 Travel Retail Market Trends Travel Retail Industry Retail Trends Dufry • Broadening of customer base 6% - Emerging Markets - Lower customer segments • Enhance shopping experience - Adapt trends in high street retailing to travel Other retail Top 9 Operators
Slide 17: 3. Financials
Board of Directors Zurich, 24 March, 2009 3. Financials 17
Slide 18: Merger Completed
Board of Directors Zurich, 24 March, 2009 Merger Completed Dufry AG Shareholder Structure Funds Controlled DAG Free Float Hudson Media by Advent (Shares + BDRs) 33.5% 4.3% 62.2% DUFRY AG, SWITZERLAND • January 11th: Proposed Merger of Dufry AG and DSA • January 18th: Approval of the Merger by both B
Slide 19: Turnover/Net Sales Growth Analysis
Board of Directors Zurich, 24 March, 2009 Turnover/Net Sales Growth Analysis Turnover Growth Components FX Rate Development FX Evolution Turnover Growth at constant FX 15.7% Q1 Q2 Q3 Q4 CHF/USD 2010 1.06 Organic Growth 10.6% CHF/USD 2009 1.15 1.11 1.06 1.02 New Concessions 5.1% % Change 10/09 ‐8.1%
Slide 20: Profitability Analysis
Board of Directors Zurich, 24 March, 2009 Profitability Analysis EBITDA Growth CHF million Q1 10 Q1 09 Growth EBITDA At constant FX 70.1 58.1 20.7% Reported 64.8 58.1 11.6% EBITDA Margin (Before other operational result) Gross Profit Margin 16% 57% 56.6% 13.4% 13.9% 14% 12.7% 55.9% 56% 12% 11.1% 11.
Slide 21: Income Statement
Board of Directors Zurich, 24 March, 2009 Income Statement (CHF million) Dec '03 % Dec '07 % Dec '08 % Dec '09 % Mar '09 % Mar '10 % Turnover 685.7 100.0% 1,930.3 100.0% 2,113.5 100.0% 2,378.7 100.0% 538.3 100.0% 585.0 100.0% Gross profit 318.1 46.4% 1,028.0 53.3% 1,151.9 54.5% 1,329.4 55.9% 298.2 5
Slide 22: Net Earnings / Earnings Per Share
Board of Directors Zurich, 24 March, 2009 Net Earnings / Earnings Per Share Net Earnings CHF million Q1 10 Q1 09 Growth NET EARNINGS 21.9 10.3 112.4% Proforma post merger 1) Minority Interest 2.0 12.1 1) Equity Holders of the Parent 19.9 -1.8 Reported Minority Interest 13.5 12.1 Equity Holders of th
Slide 23: Seasonality
Board of Directors Zurich, 24 March, 2009 Seasonality Turnover Turnover Seasonality 2,500 2,379 2,114 700 641 624 619 1,930 597 2,000 600 585 538 538 485 500 450 in CHF million CHF million 1,500 400 1,000 300 538 585 200 450 500 100 0 0 Q1 Q2 Q3 Q4 2007 2008 2009 1Q08 1Q09 1Q10 2008 2009 2010 EBITDA
Slide 24: Balance Sheet
Board of Directors Zurich, 24 March, 2009 Balance Sheet ASSETS (CHF million) 31/12/2007 31/12/2008 31/12/2009 31/03/2010 Cash & equivalents 125.1 263.7 405.3 456.7 Trade receivables, net 52.0 44.3 48.2 47.0 Inventories 291.4 344.3 306.5 313.7 Other current assets 89.4 121.1 122.4 144.3 Current Asset
Slide 25: Balance Sheet Mar/10
Board of Directors Zurich, 24 March, 2009 Balance Sheet Mar/10 In CHF million Other non 180 current assets (8%) 850 Equity (37%) Intangible assets (60%) 1,367 Non current 185 liabilities (8%) 613 Net Debt (27%) PP&E (10%) 240 Current assets, Other current 505 643 other than cash (22%) liabilities (2
Slide 26: 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 capital changes 66.3 62.8 Change in net working capital (22.3) 35.8 Income taxes paid (5.3) (7.1) Net cash flows from operating activities 38.7 91.5 C
Slide 27: Financing and Covenants
Board of Directors Zurich, 24 March, 2009 Financing and Covenants Net Debt Evolution Debt by Currency 1,000 943 900 EUR 824 808 800 771 10% 723 700 643 in CHF million 610 613 600 500 CHF 21% 400 300 200 100 0 31 Oct 08 31 Dec 08 31 Mar 09 30 Jun 09 30 Sep 09 31 Dec 09 31 Mar 10 31 Mar 10 PF* Note: U
Slide 28: Trading Volumes
Board of Directors Zurich, 24 March, 2009 Trading Volumes Market Capitalisation Average Trading Volume (CHF million) (CHF million) 2500 2,415 14 12 2000 10 1,497 62% 1500 1,341 8 6 1000 630 47% 4 500 918 2 711 38% 53% 0 ‐ 11/11/2009 ‐ 11/01/2010 ‐ 29/03/2010 ‐ Mkt Cap DAG (1) Mkt Cap DAG (2) 08/01/2
Slide 29: 2010 Results Calendar
Board of Directors Zurich, 24 March, 2009 2010 Results Calendar • 1Q 2010 Results – May 20th, 2010 • Half Year 2010 results – August 12th, 2010 • 3Q 2010 results – November 16th, 2010 • Full Year 2010 results – March 24th, 2011 29
Slide 30: 4. Conclusion
Board of Directors Zurich, 24 March, 2009 4. Conclusion 30
Slide 31: Conclusion/Outlook
Board of Directors Zurich, 24 March, 2009 Conclusion/Outlook Key Targets for 2010 • Q1 10 performance has confirmed that growth trend is back as mentioned in Q4 2009 • Maintain cost savings from Efficiency Plan in 2009 – Q1 EBITDA margin confirms that improvements can be sustained • Use lessons lear
Slide 32: Thank You
Board of Directors Zurich, 24 March, 2009 Thank You 32