Slide 1: Preliminary Results 2020
The Food Travel Experts Preliminary Results 2020 www.foodtravelexperts.com
Slide 2: Presentation structure
maideb\home\Desktop\Prelims slides v 8 191120_GS.pptx Presentation structure 1. Group highlights Simon Smith 2. Financial review Jonathan Davies 3. Business review Simon Smith 4. Q&A All 2 SSP: The Food Travel Experts
Slide 3: Group highlights
maideb\home\Desktop\Prelims slides v 8 191120_GS.pptx Group highlights • Strong start to the year; new space growth at 5.7%; further progress on strategic initiatives • Rapid and effective response to COVID to protect our people and the business • H2 cash outflow contained ahead of expectations. H2
Slide 4: Financial Review
Financial Review Preliminary Results 2020 Jonathan Davies, Group CFO www.foodtravelexperts.com 4 SSP: The Food Travel Experts
Slide 5: Group financial overview
maideb\home\Desktop\Prelims slides v 8 191120_GS.pptx Group financial overview 2020 2020 2019 IAS 17 £m IFRS 16 IAS 17 IAS 17 Change (%) Revenue 1,433.1 1,433.1 2,794.6 (48.7)% LFL Sales Growth (50.8)% (50.8)% 1.9% n/a EBITDA* 103.4 (98.2) 326.4 (130.1)% Operating (Loss)/Profit* (315.4) (211.7) 221.
Slide 6: Underlying Operating Loss of £212m (IAS 17 basis)
maideb\home\Desktop\Prelims slides v 8 191120_GS.pptx Underlying Operating Loss of £212m (IAS 17 basis) 2020 2020 2019 £m IFRS 16 IAS 17 IAS 17 Revenue 1,433.1 1,433.1 2,794.6 Gross Profit 1,002.0 1,002.0 1,987.9 % Sales 69.9% 69.9% 71.1% Labour Costs (518.6) (518.6) (809.3) % Sales (36.2)% (36.2)%
Slide 7: Underlying Net Loss of £224m (IAS 17 basis)
maideb\home\Desktop\Prelims slides v 8 191120_GS.pptx Underlying Net Loss of £224m (IAS 17 basis) 2020 2020 2019 £m IFRS 16 IAS 17 IAS 17 Operating (Loss)/Profit* (315.4) (211.7) 221.1 Net Financing Cost* (54.0) (26.2) (22.0) Share of Associates (2.4) (1.7) 4.1 Loss Before Tax* (371.8) (239.6) 203.2
Slide 8: Non-Underlying items (IFRS 16)
maideb\home\Desktop\Prelims slides v 8 191120_GS.pptx Non-Underlying items (IFRS 16) £m P&L Charge Cash flow Impairments and accelerated depreciation Tangible Assets (82.8) - Intangible Assets (33.0) - Restructuring costs (22.7) (22.7) IFRS 16 Covid rent waivers 91.9 91.9 Other (1.9) - Operating Los
Slide 9: LFL Sales Increase/(Decrease) (%YOY)
maideb\home\Desktop\Prelims slides v 8 191120_GS.pptx LFL Sales down -86% in H2 2020 Q1 Q2 H1 Q3 Q4 H2 20.0% LFL Sales Increase/(Decrease) (%YOY) 1.2% 0.0% (8.4)% -20.0% (18.5)% -40.0% -60.0% -80.0% (79.6)% (86.2)% -100.0% (93.4)% Note: Same store like-for-like sales growth at constant currency 9 SS
Slide 10: H2 year on year revenue progression by region
maideb\home\Desktop\Prelims slides v 8 191120_GS.pptx H2 year on year revenue progression by region 40% 35% Continental Europe % of prior year sales 30% Rest of World 25% 20% North America UK 15% 10% 5% 0% April May June July August September 10 SSP: The Food Travel Experts
Slide 11: Impact of Covid-19 on sales and profit
maideb\home\Desktop\Prelims slides v 8 191120_GS.pptx Impact of Covid-19 on sales and profit Sales Operating Profit* March Pessimistic scenario £1,400m March Pessimistic 3,500 250 £230m £-65m scenario £-385m** £3,015m £-147m 200 3,000 £-1,435m £-377m 150 2,500 100 50 2,000 £-212m £m 0 £m 1,500 £1,43
Slide 12: Underlying operating loss of £213m in H2 (IAS 17 basis)
maideb\home\Desktop\Prelims slides v 8 191120_GS.pptx Underlying operating loss of £213m in H2 (IAS 17 basis) 2020 Full H2 YOY cost £m 2020 H1 2020 H2 Year savings Revenue 1,433.1 1,214.6 218.5 Gross Profit 1,002.0 856.2 145.8 Labour % Sales 69.9% 70.5% 66.7% 293.4 69.2% Labour Costs (518.6) (387.8)
Slide 13: Underlying Free Cash outflow £195m in H2
maideb\home\Desktop\Prelims slides v 8 191120_GS.pptx Underlying Free Cash outflow £195m in H2 2020 2019 2020 2020 £m Full Year Full Year H1 H2 Underlying Operating (Loss)/Profit* (211.7) 221.1 1.3 (213.0) Depreciation & Amortisation* 113.5 105.3 54.9 58.6 Working Capital (67.6) 3.7 (45.1) (22.5) Ca
Slide 14: Net Debt £692m (IAS 17 basis)
maideb\home\Desktop\Prelims slides v 8 191120_GS.pptx Net Debt £692m (IAS 17 basis) 2020 Full 2020 £m Year H2 Net Debt at 1 Oct 2019 and 1 April 2020 (IAS 17 basis) (483.4) (457.7) Underlying Free Cash Flow (372.2) (195.3) Exceptional restructuring costs (22.7) (22.7) 2019 Final Dividend (26.8) (26.
Slide 15: £520m Liquidity at September 2020
maideb\home\Desktop\Prelims slides v 8 191120_GS.pptx £520m Liquidity at September 2020 Additional actions taken to protect liquidity £m • Equity placings in March and June (£219m) Cash at end of September 2020 185 • CCFF in place until 2022 (£300m) Further Undrawn Facilities: • Additional local fac
Slide 16: Business Review
Business Review Preliminary Results 2020 Simon Smith, Group CEO www.foodtravelexperts.com 16SSP: The Food Travel Experts
Slide 17: Update: Four phases to our response to COVID-19
maideb\home\Desktop\Prelims slides v 8 191120_GS.pptx Update: Four phases to our response to COVID-19 Sustainable Business Protection Hibernation Recovery Growth Key achievements Key achievements Key achievements • New safety protocols • Temporary unit closures • Created lower-cost, more • Staff fur
Slide 18: Decisive action to create and protect liquidity
maideb\home\Desktop\Prelims slides v 8 191120_GS.pptx Decisive action to create and protect liquidity Actions taken to create liquidity Actions to preserve cash in H2 Current liquidity position Quickly created £750m liquidity by April MAGs waived, rents reduced £520m liquidity at the end of Septembe
Slide 19: Unit openings driven by summer leisure demand
maideb\home\Desktop\Prelims slides v 8 191120_GS.pptx Unit openings driven by summer leisure demand UK Continental Europe • Channel mix FY19: 70% • Channel mix FY19: 60% air; 30% rail;10% rail, 30% air other • Increased demand in rail • Stronger performance of the rail business; and air over the sum
Slide 20: Domestic travel is leading the recovery
Domestic travel is leading the recovery Domestic passenger recovery versus 2019 China Domestic recovery Hainan 20% 20% 0% 0% China -20% -20% Thailand -40% -40% -60% N America -60% India* -80% -80% -100% -100% Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Week1 Week3 Week5 Week7 Week9 Week1
Slide 21: Unit profitability at lower levels of sales
maideb\home\Desktop\Prelims slides v 8 191120_GS.pptx Unit profitability at lower levels of sales Actions taken Optimising unit openings in line with passenger numbers Flexible operating hours linked to demand Lower flexible rents Lowered unit costs; profitability at lower Simplified ranges
Slide 22: Streamlined menus to simplify operation and improve profitability
maideb\home\Desktop\Prelims slides v 8 191120_GS.pptx Streamlined menus to simplify operation and improve profitability Before After 22 SSP: The Food Travel Experts
Slide 23: Acceleration of customer service digital technology
maideb\home\Desktop\Prelims slides v 8 191120_GS.pptx Acceleration of customer service digital technology Customer order/pay models Customer Benefits Aligned with customer preferences 1. Order at Table Social distancing 2. Virtual Kiosks Speed of service; reduced wait times 3. Physical Kiosks
Slide 24: Continued contract extensions, wins and openings, despite Covid-19
Continued contract extensions, wins and openings, despite Covid-19 Extensions Wins Openings Switzerland Hobart Shenzhen Salt Lake City Seattle Sweden Haikou Shanghai Hongqiao 24 SSP: The Food Travel Experts
Slide 25: Sustainable growth; delivering for all stakeholders
maideb\home\Desktop\Prelims slides v 8 191120_GS.pptx Sustainable growth; delivering for all stakeholders Our ambition: to be the leading food and drink operator in travel locations worldwide, delivering for all stakeholders Colleagues Customers Clients Brand partners Shareholders Underpinned by our
Slide 26: We have many structural advantages in our sector
maideb\home\Desktop\Prelims slides v 8 191120_GS.pptx We have many structural advantages in our sector #1 Local insight and Leading market Long-term client Experienced employee Food travel expertise international scale positions relationships base • Deep understanding • Extensive • Long-term • High
Slide 27: A clear strategy to deliver long term sustainable growth
maideb\home\Desktop\Prelims slides v 8 191120_GS.pptx A clear strategy to deliver long term sustainable growth Sustainable Growth LFL growth Business development Efficient conversion • Optimise portfolio as we re-open • Contract extensions • Optimise rent deals • Continuous innovation in customer •
Slide 28: We have also developed our Corporate Responsibility and People strategies
maideb\home\Desktop\Prelims slides v 8 191120_GS.pptx We have also developed our Corporate Responsibility and People strategies Corporate Responsibility Framework People Strategy People & Communities What we Serve Protecting Our Planet Inspiring, Embedding Colleague engagement motivating and our & w
Slide 29: Summary and Outlook
maideb\home\Desktop\Prelims slides v 8 191120_GS.pptx Summary and Outlook • Good start to year; net space growth 5.7% • Rapid and effective response to COVID • Central and operational management skill retained • New low cost flexible operational model created; agile response • People and corporate r
Slide 30: Q&A
Q&A Preliminary Results 2020 www.foodtravelexperts.com 30SSP: The Food Travel Experts
Slide 31: Appendix
Appendix Preliminary Results 2020 www.foodtravelexperts.com 31SSP: The Food Travel Experts
Slide 32: Revenue down -48% at constant currency
maideb\home\Desktop\Prelims slides v 8 191120_GS.pptx Revenue down -48% at constant currency Net Contract LFL Sales Total Revenue Gains UK (51.2)% 0.1% (51.1)% Continental Europe (48.2)% 3.5% (44.7)% North America (53.1)% 5.2% (47.9)% Rest of World (53.5)% 3.6% (49.9)% Total at Constant Currency (50
Slide 33: Underlying operating loss of £212m (IAS 17 basis)
maideb\home\Desktop\Prelims slides v 8 191120_GS.pptx Underlying operating loss of £212m (IAS 17 basis) Operating Profit/(Loss)* IAS 17 Change (%) 2020 2020 2019 Constant Reported £m IFRS 16 IAS 17 IAS 17 Currency FX Rates UK** (28.7) (12.4) 101.8 (112.1)% (112.2)% Continental Europe (148.1) (103.2)
Slide 34: Disclaimer
maideb\home\Desktop\Prelims slides v 8 191120_GS.pptx 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 futur