Slide 1: Half Year 2024
Half Year 2024 30 July 2024 1
Slide 2: Agenda
2 AGENDA 01 Highlights 02 Strategy Update 03 Financial Performance 04 Conclusion 05 Appendix 2
Slide 3: Highlights
What does mean this pic? HIGHLIGHTS 3
Slide 4: Highlights HY 2024
Highlights HY 2024 Strong HY 24 and positive momentum into the summer Key Business Developments • CORE Turnover CHF 6,342.6m +11.0% YoY • Key Awards: Copenhagen, Macau Airport and Medan (Indonesia) • Organic Growth +7.1% • Key Extensions: Athens Airport, Perth Airport, California John Wayne Airport
Slide 5: Strong Performance Across all KPIs
Strong Performance Across all KPIs In CHFm, CORE Numbers HY 2024 HY 2023 D Turnover 6,342.6 5,715.2 +11.0% Organic Growth +7.1% EBITDA 568.3 491.8 +15.6% EBITDA Margin 9.0% 8.6% Net Profit1 181.9 124.0 +46.7% CAPEX -223.3 -184.6 EFCF 213.5 165.1 +29.3% Leverage 2.35x 2.62x 5 1To Equity Holders
Slide 6: Regional Performance & Segmentation H1 2024
Regional Performance & Segmentation H1 2024 EUROPE, MIDDLE EAST & AFRICA NORTH AMERICA 3,112.3 CHFm 2,132.6 CHFm Geographies1 +9.7% LfL +6.3% LfL +9.8% Organic Growth +6.9% Organic Growth 49% 34% 12% 4% Strong leisure demand boosts Robust growth in the USA across EMEA NA LATAM APAC performance, bene
Slide 7: Strategy Update
What does mean this pic? Strategy Update 7
Slide 8: Strategy Update (1/3): Global passenger outlook
Strategy Update (1/3) Global passenger outlook: Strong and growing market ACI latest updated passenger forecast 23.0 23.5 22.5 22.0 21.5 8.7b Passengers served by 2050 19.5 20.0 20.5 21.0 airports 2023 ~2.5x of 2024 level +3.5% 19.0 18.5 18.0 17.5 17.0 40% Non-aeronautical airport USD 2.4t 15.4 15.9
Slide 9: Strategy Update (2/3): Destination 2027 framework
Strategy Update (2/3) Our NorthStar – Strategy “Destination 2027”: Right framework TOP LINE GROWTH, SPP GROWTH & RESILIENCE / PREDICTABILITY Food & PROFITABILITY & MARGIN Retail Beverage IMPROVEMENT “MAKING TRAVELERS Traveler HAPPIER” INCREASE CASH FLOW CONVERSION Point Digital of Sale STRONG BALANC
Slide 10: Strategy Update (3/3): Strong Global Business Model
Strategy Update (3/3) Strong Global Business Model Reinforces Structural Competitive Advantages – Growth & Margin Widest Diversified Portfolio Undisputed Leader in Terms of Scale and Brand Relationships Unique access to brands in Retail & F&B: 1,000+ 73 • Broad portfolio of >1,000 brands across trav
Slide 11: Delivering on the Strategy (1/2) – Physical stores
Delivering on the Strategy (1/2) – First pillar – Physical stores Physical stores: Customers + Brands + Landord Partners FLEXIBLE LOCAL ENTERTAINMENT X-FACTOR • Enhance customer experience over time • Align with local cultural preferences and • Positive correlation with dwell time, SPP • Unique and
Slide 12: Delivering on the Strategy (2/2) – Digital engagement
Delivering on the Strategy (2/2) – Second pillar – Digital engagement end-to-end Digital: Traveler Intelligence to level up digital offerings – Loyalty, Digital Add-ons and New digital formats Building a data foundation… ... to create a new way of travel experience AVOLTA UNIQUENESS DATA SOURCES DAT
Slide 13: Unique investment proposition / mid-term outlook confirmed
Avolta’s unique investment proposition / mid-term outlook confirmed ✓ Strong Growth in Passenger Numbers and outperforming GDP growth Strong Industry Fundamentals ✓ Younger generations increasingly prioritize travel ✓ Global Footprint provides Passenger Data Powerhouse Resilience ✓ Long-term contrac
Slide 14: Financial Performance
Financial Performance 14
Slide 15: CORE Profit & Loss
CORE Profit & Loss in CHFm HY HY 2024 % 2023 % Significant increase in Turnover and Gross Margin Turnover 6,342.6 100.0% 5,715.2 100.0% ▪ CORE turnover reported growth +11% YoY Cost of sales. -2,185.1 -34.5% -2,035.8 -35.6% ▪ Organic growth +7.1% Gross profit. 4,157.5 65.5% 3,679.4 64.4% ▪ Gross mar
Slide 16: CORE Cash Flow Statement
CORE Cash Flow Statement HY HY YoY in CHFm 2024 2023 Growth 568.3 491.8 +15.6% CORE EBITDA Robust EFCF performance Other non-cash items and changes in lease obligation 31.7 25.4 ▪ EFCF CHF 213.5m, conversion 37.6% Changes in net working capital 12.5 26.1 ▪ Key driver operational performance with EBI
Slide 17: Robust Balance Sheet
Robust Balance Sheet in CHFm HY 2024 31-Dec-23 ∆ Balance Sheet mainly affected by ASSETS Property, plant and equipment 1,228.9 1,131.4 8.6% ▪ Right of Use Assets increased by CHF 434m due to various Right of Use assets 7,671.0 7,237.0 6.0% adjustments and foreign exchange impacts Intangible assets 2
Slide 18: Financial Net Debt and Leverage
Financial Net Debt and Leverage Financial Net Debt CHFm ▪ Net Debt CHF 2,861m 3,500 3,344 3,102 3,080 ▪ Leverage1 2.35x Net Debt/ CORE EBITDA down from 2.62x 2,811 2,861 3,000 2,696 last year 2,500 ▪ Mid-term target ratio 1.5x-2.0x with flexibility up to 2.5x in the case of small bolt-on acquisition
Slide 19: Maturity Profile & Liquidity Position
Maturity Profile & Liquidity Position Maturity Profile CHFm ▪ Strong available liquidity at CHF 2,731.5m ▪ CHF 850.7m cash ▪ CHF 1,880.7m available committed credit facilities (RCF) EUR 2,750m 1,881 Undrawn Well diversified financing structure Revolving Credit ▪ Weighted average maturity 3.3 years F
Slide 20: Focus on Resilient Balance Sheet + Cost Control + Cash Conversion
Focus on Resilient Balance Sheet + Cost Control + Cash Conversion • Spend per Passenger increase, driven by Travel Experience Revolution 01 Long-term top-line growth • Business Development through diversification and hybrid concepts • Selected acquisitions / industry consolidation • Operational impr
Slide 21: Conclusion
Conclusion 21
Slide 22: Conclusion: Mid-Term Outlook Confirmed
CONCLUSION Strong H1 Performance and Promising Outlook • Supported by a strong global business model, Avolta reports for the sixth consecutive quarter a strong performance across all KPI’s • Strong organic sales growth of +7.1% • Margin expansion driven by focused strategic execution and reinforced
Slide 23: Appendix
Appendix 23
Slide 24: Planet, People and Communities - ESG as core pillar of Destination 2027
Planet, People and Communities - ESG as core pillar of Destination 2027 Avolta embraces a holistic approach to Environmental, Social and Governance values and is deeply committed to sustainability on a global and local level. We concentrate our initiatives on four key areas, where we want to have a
Slide 25: Avolta's ESG Strategy House
Avolta’s ESG Strategy House as an Integral Part of Destination 2027 Create Sustainable Respect Travel Experiences Our Planet • Climate change, energy and • Sustainable sourcing & traceability Ensuring sustainable Reducing our emissions • Supply chain management ways of traveling. footprint, • Waste
Slide 26: Income Statement HY 2024 – IFRS to CORE-Bridge
Income Statement HY 2024 – IFRS to CORE-Bridge Adjustments Acquisition IN CHF MILLION IFRS 6M 2024 Leases Fuel Sales CORE 6M 2024 related Net sales (IFRS) / (CORE) 6,354.6 -120.1 6,234.5 Advertising income 108.1 108.1 Turnover (IFRS) / (CORE) 6,462.7 -120.1 6,342.6 Cost of sales -2,296.6 111.5 -2,18
Slide 27: Reliable Profitability and Cash Conversion
Reliable Profitability and Cash Conversion Highly Flexible Cost Base Sustainable Cash Conversion 0% 100% 0% 100% COGS NWC* CAPEX** Concession Fees Income Tax PEX Minorities OPEX Interest Approx % fixed cost Approx % variable cost Approx % fixed cost Approx % variable cost ▪ Resilient EBITDA margins
Slide 28: NWC & Capex
NWC & Capex Trade Net Working Capital Development Capex Development in CHFm in CHFm 800 20.00% 13.9% 700 11.3% 9.3% 10.00% 600 5.1% 3.2% 270 4.2% 3.8% 5.3% 3.5% 3.7% 500 220 3.2% 0.00% 3.2% 3.0% 2.8% 400 170 2.7% 300 -10.00% 2.2% 581 1.6% 528 120 223 1.7% 445 185 200 405 311 339 -20.00% 70 1.2% 125
Slide 29: Contact
Contact REBECCA LUCA MCCLELLAN ZUCCONI Global Head Investor Global Senior Investor Relations Relations Analyst +44 7543 800405 + 31 40 235 31 53 rebecca.mcclellan@avolta.net luca.zucconi@avolta.net AGUSTINA RINCÓN Global Senior Investor Relations Analyst + 31 40 235 31 53 agustina.rincon@avolta.net
Slide 30: Legal Disclaimer
Legal Disclaimer This document contains certain forward-looking statements. These forward-looking statements may be identified by words such as ‘believes’, ‘expects’, ‘anticipates’, ‘projects’, “targets”, ‘intends’, ‘estimates’, ‘future’, “outlook”, or similar expressions or by discussion of, among