Slide 1: Interim Results 2023
Montage to be updated this week Interim Results 2023 Patrick Coveney, Group CEO Jonathan Davies, Group Deputy CEO and CFO 23 May 2023
Slide 2: Agenda
Agenda Highlights Patrick Coveney Financial review Jonathan Davies Business review and outlook Patrick Coveney Q&A
Slide 3: H1 Highlights
H1 Highlights Strong financial performance • Half-year revenue of £1.3bn; strengthening from 104% of 2019 levels in H1 to 111% in first six weeks of H2 • £91m EBITDA, driven by strong revenue, cost management and mitigation of inflationary headwinds • Strong contribution to profitability delivered b
Slide 4: Financial review
Financial review Jonathan Davies, Group Deputy CEO and CFO Obispo Tapas Bar, Toronto City
Slide 5: Financial highlights
Financial highlights Revenue EBITDA Revenue (% of 2019 levels) £1,318m 104% £91m vs HY22: +64% HY22: 64% vs HY22: +£76m Operating profit Capex Net debt £34m £(94)m £(392)m vs HY22: +£71m vs HY22: £(52)m vs HY22: £(52)m Note: All figures on an underlying basis and pre IFRS 16.
Slide 6: Underlying Operating Profit £52m (IFRS basis)
Underlying Operating Profit £52m (IFRS 16 basis) IFRS 16 basis Pre-IFRS 16 basis £m H1 2023 H1 2022 H1 2023 H1 2022 Revenue 1,318.4 803.2 1,318.4 803.2 EBITDA* 199.0 85.1 90.5 14.7 % sales 15.1% 10.6% 6.9% 1.8% Depreciation (146.6) (137.7) (56.1) (51.1) Operating Profit* 52.4 (52.6) 34.4 (36.4) Oper
Slide 7: Revenue now at 111% of 2019 levels
Revenue now at 111% of 2019 levels 2023 H2 2022 H1 2022 H2 2023 H1 to date* Continental Europe 70% 95% 109% 116% North America 74% 94% 127% 124% UK & ROI 60% 84% 85% 94% Rest of World 43% 85% 104% 112% Group 64% 90% 104% 111% * 2023 H2 TD represents period from 1 April to 14 May 2023
Slide 8: H1 Revenue performance driven by volume recovery in Air
H1 Revenue performance driven by volume recovery in Air % of 2019 Revenue Group Air 114% Rail Volume 11% Volume Volume vs 2019: vs 2019: vs 2019: 85% 104% 6% 90% 77% 100% 100% 13% 100% 13% 13% (5)% 85% (10)% (15)% (23)% 2019 Volume Price Net gains H1 2019 Volume Price Net gains H1 2019 Volume Price
Slide 9: Ongoing strong cost management against inflationary headwinds
Ongoing strong cost management against inflationary headwinds £m H1 2023 vs. H1 2022 vs. H1 2019 Revenue 1,318.4 515.2 56.8 Gross Profit 948.6 371.5 56.4 % Sales 72.0% 0.2% 1.3% Labour Costs (425.4) (150.0) (40.3) % Sales (32.3)% 2.0% (1.8)% Concession Fees (271.5) (106.2) (22.9) % Sales (20.6)% 0.0
Slide 10: Underlying Net Loss £6m (pre-IFRS 16 basis)
Underlying Net Loss £6m (pre-IFRS 16 basis) IFRS 16 basis Pre-IFRS 16 basis £m H1 2023 H1 2022 H1 2023 H1 2022 Operating Profit* 52.4 (52.6) 34.4 (36.4) Net Financing Cost* (38.0) (36.6) (14.0) (20.8) Share of Associates 2.4 1.9 2.4 1.9 Profit Before Tax* 16.8 (87.3) 22.8 (55.3) Tax* (3.8) (4.3) (5.
Slide 11: Accelerated growth in N. America and ROW supported by JV partners
Accelerated growth in N. America and ROW supported by JV partners • Structurally higher growth in travel sector in North America and Rest of World • SSP frequently operates with JV partners in these markets ― c.25% of North America sales currently attributable to ACDBE partners ― c.30% of Rest of Wo
Slide 12: Free cash usage of £118m
Free cash usage of £118m £m Underlying free cash 23 (24) outflow £118m (392) (28) (12) (94) (297) 91 (51) Opening net debt EBITDA Working capital Capex Tax Net financing Minorities FX & Non cash debt Closing net debt costs movements Note: All numbers shown on a pre-IFRS16 basis
Slide 13: Step up in capex to mobilise the new business secured pipeline and Covid catch-up
Step up in capex to mobilise the new business secured pipeline and Covid catch-up 300 New contracts 250 Renewals/IT/Maintenance Covid Catch-Up 200 150 100 50 0 2019 2020 2021 2022 2023 2024 2025 Capex (£m) Actual Forecast
Slide 14: Capital allocation strategy unchanged
Capital allocation strategy unchanged Uses of cash and balance sheet efficiency Clear priorities to generate returns 1 2 • Priority is organic growth and value Organic investment M&A creating infill M&A Significant structural growth Value creating infill • All potential investments (>£50k) opportuni
Slide 15: Business review and outlook
Business review and outlook Patrick Coveney, Group CEO Aamanns, Copenhagen
Slide 16: We compete in a travel industry with long-term structural growth trends
We compete in a travel industry with long-term structural growth trends Passenger levels, % of 2019 Strong Air PAX recovery Global RPKs (billion per month) 800 Source: IATA Economics, IATA Monthly Statistics Growth rate 2019 2020 2025 2030 2025-30 600 400 Air Europe 200 North 0 America 2017 2018 201
Slide 17: Strong demand for food & beverage experiences
Strong demand for food & beverage experiences 1 2 3 Consumers wanting to travel; food Consumers spending more for Behaviours evolving post-Covid integral to experience quality Travel #1 40% 83% way to spend discretionary income willing to pay for "premium" food or as or more likely to purchase food
Slide 18: Strategic priorities
Strategic priorities • Accelerate growth in North America and targeted Increase geographic focus Asia Pac • Grow selectively in UK, Europe & EEME • Drive like-for-like revenue Enhance business • Enhance customer proposition – formats & brands capability to drive long • Leverage digital term performa
Slide 19: Business pivoting to higher growth channels & markets
Increase geographic focus Business pivoting to higher growth channels & markets North America & Asia Pac Revenue mix by geography Accelerate growth in N. A and targeted Asia Pac • Grow share: RoW 7% 14% − New contract growth N.America 9% − Value creating M&A c. 40% NA & ROW • Build relationships wit
Slide 20: Building enhanced propositions
Enhance Enhance capability business capability Building enhanced propositions Innovating to meet customer needs Leveraging digital Partnering with new brands Developing new formats • Digital rollout progressing at pace • Enhancing digital capability with AI • Digital ready units Dublin Kuala Market
Slide 21: Embedding sustainability into strategy
Enhance capability Embedding sustainability into strategy Driving our Net Zero 2040 Integrating sustainability Delivering value for our Accelerating targets delivery science-based targets (SBT) across our propositions business and stakeholders and increasing transparency Our net zero roadmap • Await
Slide 22: Focus on colleague engagement and training
Enhance Enhancing capability strengths competitive Focus on colleague engagement and training Growing back Safety and wellbeing Uptick in stronger:10k new colleague colleagues; focus engagement on employer scores brand equity Attraction and retention Inclusion and engagement Roll out of Health, safe
Slide 23: Strategic priorities driving our economic model
Strategic priorities driving our economic model • Conversion of profit to cash • Customer insights • Working capital • Menu and range • Capital expenditure 4 1 • Format/brand enhancement • Operational investment • Digital customer solutions Sustainable, high growth & returns • Gross margin optimisat
Slide 24: Driving like-for-like sales performance
Like-for-like revenue growth Driving like-for-like sales performance Like-for-like performance is a critical element to Case studies: optimising LFL performance building returns North America: Project Phoenix UK & I: Best at our Busiest Menu optimisation Increasing capacity at busy times • c.2,800 u
Slide 25: Accelerated pace of new business wins
New business development Accelerated pace of new business wins Estimated net gains contribution A favourable competitive environment c.£625m pipeline by geography from secured business wins1 • Higher levels of net new business secured UK c.2% Est. yoy net • £75m net new business added since contract
Slide 26: New business wins in H1
Increase New geographic business focus development New business wins in H1 Kelowna Airport Calgary Airport Ontario Airport Boston Airport JFK Airport Kuala Lumpur Airport Krabi Airport Rome Rail Station London Heathrow Airport Frankfurt Airport Tenerife South Airport Helsinki Airport
Slide 27: Contract renewals in H1
New business development Contract renewals in H1 London Gatwick Airport Newcastle Airport Marseille Airport T1 & T2 Norway regional Airports Reno Airport Waterloo Station Boston Airport Orlando Sanford Airport Hobart Airport Torp Airport Cardiff Airport German Rail
Slide 28: Further business expansion in North America through M&A
New business development Further business expansion in North America through M&A Midfield: A strong strategic fit Building share in high growth US market with 40 new units in 7 Newark airports c$100m annual revenue Detroit Expanding to 34 of the top 80 airports inc. four new locations Philadelphia C
Slide 29: A revitalised efficiency programme to drive performance and margin
Profit conversion A revitalised efficiency programme to drive performance and margin Building on core competencies and Covid learnings, a revitalised efficiency programme to drive performance and margin 1 2 3 4 Gross margin Supply chain Labour Overheads • Menu engineering • Inflation tracking • Digi
Slide 30: Outlook
Outlook Preliminary Results FY 2022 Planning Assumptions 2023 2024 Outlook Revenue £2.9-3.0bn £3.2-3.4bn • Strong current trading vs. 2019 • FY23 outcome now expected at upper end of - PAX 85-90% 90-95% previous sales and EBITDA planning ranges - Cumulative inflation c.12% c.14% • Corresponding FY23
Slide 31: Stronger, better business post-Covid
Stronger, better business post-Covid Leveraging structural growth Accelerating revenue growth opportunities; LFL & net gains Pivoting towards faster growth Building margins markets Our economic model Enhancing business capability Delivering strong free cash flow driving revenue and margin Investing
Slide 32: <q Oo
<q 3 Oo
Slide 33: Disclaimer
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 future business strategies and the environment the Company