Slide 1: Preliminary Results 2022
Preliminary Results 2022 Patrick Coveney, Group CEO Jonathan Davies, Group Deputy CEO and CFO 6 December 2022
Slide 2: Agenda
Agenda Highlights Patrick Coveney Financial review Jonathan Davies Business review, strategy and outlook Patrick Coveney Q&A
Slide 3: H2 and Full Year Highlights
H2 and Full Year Highlights Rapid recovery, strong financial performance • Full-year revenue of £2.2bn, with H2 revenue recovering to 90% of 2019 levels • £127m EBITDA in H2, taking full year EBITDA to £142m • Free cash generation of £83m in H2, driving full year free cash generation of £52m • Avail
Slide 4: Financial review
Financial review Jonathan Davies, Group Deputy CEO and CFO
Slide 5: Financial highlights
Financial highlights Revenue Revenue (% of 2019 levels) EBITDA £2,185m 78% £142m LY: £834m LY: 30% LY: £(108)m Operating profit Free cashflow Net debt £30m £52m £(297)m LY: £(209)m LY: £(58)m LY: £(308)m Note: All figures on an underlying basis and pre IFRS 16.
Slide 6: Underlying Operating Profit £30m (pre-IFRS 16 basis)
Underlying Operating Profit £30m (pre-IFRS 16 basis) IFRS 16 Pre-IFRS 16 £m Basis basis Revenue 2,185.4 2,185.4 Gross Profit 1,575.2 1,575.2 Labour Costs (686.7) (686.7) Concession Fees (299.3) (454.1) Overheads (275.8) (292.4) EBITDA* 313.4 142.0 % sales 14.3% 6.5% Depreciation & Amortisation (281.
Slide 7: Underlying Net Loss £36m (pre-IFRS 16 basis)
Underlying Net Loss £36m (pre-IFRS 16 basis) IFRS 16 Pre-IFRS 16 £m basis basis Operating Profit* 31.7 30.3 Net Financing Cost* (81.5) (43.6) Share of Associates 6.6 6.6 Loss Before Tax* (43.2) (6.7) Tax* 0.9 (4.6) Non-Controlling Interests* (18.6) (24.2) Net Loss* (60.9) (35.5) Loss per share (p)*
Slide 8: Reported Operating Profit £91.5m (IFRS 16 basis)
Reported Operating Profit £91.5m (IFRS 16 basis) IFRS 16 IFRS 16 IFRS 16 £m Underlying Non-Underlying Reported Operating Profit 31.7 59.8 91.5 Net Financing Cost (81.5) 8.6 (72.9) Non-Underlying items Share of Associates 6.6 - 6.6 Asset Impairments (18.2) Covid Waivers 23.0 (Loss)/Profit Before Tax
Slide 9: Revenue at 90% of 2019 in H2
Revenue at 90% of 2019 in H2 H2 2022: H1 2023 H2 2021: H1 2022: to date: 38% 64% 90% 120% 104% 100% 80% 60% 40% 20% 0% 2021 Q3 2021 Q4 2022 Q1 2022 Q2 2022 Q3 2022 Q4 2023 H1 TD* *H1 to date relates to the period 1 October – 27 November 2022
Slide 10: Most regions recovering strongly
Most regions recovering strongly H1 H2 Q1* Q1* vs 2020 vs 2019 C. Europe 70% 95% 101% 108% 140% N. America 74% 94% 109% 131% UK & ROI 60% 84% 80% 84% 120% North America Rest of World 43% 85% 104% 106% Rest of World Group 64% 90% 97% 104% % of pre-Covid revenue** 100% Continental Europe 80% UK 60% 40
Slide 11: Strong H2 profit performance despite inflationary headwinds
Strong H2 profit performance despite inflationary headwinds £m H1 2022 H2 2022 FY 2022 2019 Revenue 803.2 1,382.1 2,185.4 2,794.6 Gross Profit 577.1 998.1 1,575.2 1,987.9 % Sales 71.8% 72.2% 72.1% 71.1% Labour Costs (275.4) (411.3) (686.7) (809.3) % Sales (34.3)% (29.8)% (31.4)% (29.0)% Concession F
Slide 12: Free cash generation of £52m
Free cash generation of £52m £m Underlying free cash (308) 142 inflow £52m (297) (41) (11) (41) (4) (149) (2) 117 Opening Net EBITDA Working capital Capex Tax Net financing Exceptional Other cash Non cash debt Closing debt costs items items movements Net debt Note: All numbers shown on a pre-IFRS16
Slide 13: Strong liquidity and balance sheet
Strong liquidity and balance sheet A strong, flexible balance sheet Year-end net debt breakdown by type • Natural hedge against interest rate Floating Fixed Total exposure Bank Loans (380) (380) • £544m cash on balance sheet (379) (379) USPP Notes • High available liquidity Other Facilities (46) (20
Slide 14: Capital allocation strategy unchanged
Capital allocation strategy unchanged Uses of cash and balance sheet efficiency Clear priorities to generate returns • Priority is organic growth and value 1 2 creating infill M&A Organic investment M&A Significant structural growth Value creating infill • High returns (3-4 year payback) on capital
Slide 15: Strong track record of cash generation funding investment in growth
Strong track record of cash generation funding investment in growth £m 300 Capex Acquisitions Operating cash generation 250 200 150 100 50 0 FY14 FY15 FY16 FY17 FY18 FY19 Net debt: EBITDA 2.3x 1.9x 1.6x 1.0x 1.1x 1.5x Accelerating investment has been funded by cash generation
Slide 16: Business review, strategy and outlook
Business review, strategy and outlook Patrick Coveney, Group CEO
Slide 17: My first eight months: significant opportunities across SSP
My first eight months: significant opportunities across SSP Spain Malaysia Germany Thailand France Greece USA Cyprus Norway India Sweden UAE UK Singapore Ireland Finland Denmark Switzerland Netherlands
Slide 18: Impressions of SSP
Impressions of SSP Strong foundations Priorities • Strong positions in growth markets • Continue to re-mobilise the business • Brilliant teams • Accelerate growth in targeted markets • Great concepts • Drive like-for-like revenue growth • Strong brand, client and JV partnerships • Secure operational
Slide 19: Travel returning to structural growth
Travel returning to structural growth Market tailwinds Growth rate 2019 2020 2025 2030 2025-30 Rising income in emerging markets Air Europe 100 33 104 ~120 c.2% More infrastructure being built North 100 37 103 ~130 c.5% £23bn market with more space America being dedicated to F&B Decline in in-flight
Slide 20: Travel F&B sector resilient to consumer spending pressures
Travel F&B sector resilient to consumer spending pressures Strong market recovery Most Air markets except Asia already index +85 in 2022 and continue to recover Affluent Consumers Food matters consumers want to travel to travellers 70-80% of flights Travel is leisure Up to ~60% of made by people con
Slide 21: Structurally well-placed to manage economic headwinds
Structurally well-placed to manage economic headwinds External factors Business model • Geographic diversity • Business mix skewed towards (resilient) leisure traveller 1 Economic slowdown • Operational flexibility to respond to changes in demand • Variable cost base (as % of sales) - rent, franchis
Slide 22: Our economic model is working
Our economic model is working • Conversion of profit to cash • Contract renewals • Working capital 4 • Mobilisation of pipeline • Capital expenditure 1 • New contract wins • Operational investment • Disciplined M&A Sustainable, high returns • Gross margin optimisation • Customer insights • Variable
Slide 23: Priorities
Priorities • Accelerate growth in North America and targeted Geographic focus Asia Pac • More selective growth in UK, Europe & EEME • Reinforced like-for-like revenue focus • Customer proposition – formats and brands Enhance business • Digital capability • People and culture • Sustainability • Revit
Slide 24: Significant potential for high growth and returns in N. America
Geographic focus Significant potential for high growth and returns in N. America Largest 200 airports in North America by passenger numbers A market leading proposition 26% revenue CAGR 2014-19 Attractive proposition with local ‘sense of place’ SSP present Strong relationships: client, brand and SSP
Slide 25: Significant potential for high growth and returns in Asia Pac
Geographic focus Significant potential for high growth and returns in Asia Pac An exciting footprint 2025-30 market CAGR Strong presence in high growth India +13% markets e.g. India Wide range of concepts led by Malaysia +10% 92 our International brands 17 Philippines +10% JV partnerships delivering
Slide 26: Net gains pipeline adding c.£550m to annualised sales by 2025
Geographic focus Net gains pipeline adding c.£550m to annualised sales by 2025 Estimated sales contribution By Type By Geography in-year1 (£m) 550 UK Roll of units c.5% opened pre- 350-400 COVID C. Europe c.£150m c.29% Net units yet N.America to open c.47% 200 Net openings c.£325m post COVID c.£75m
Slide 27: Mix of business shifting to higher growth markets
Geographic focus Mix of business shifting to higher growth markets By Channel By Geography 7% 4% Other 26% UK 28% Rail 39% 41% 35% C.Europe 44% 68% Air 14% RoW 52% 7% 25% N.America 9% 2014 2025 2014 2025
Slide 28: New business wins in H2
Geographic focus New business wins in H2 Dallas Houston Santa Rosa Sydney Rail Goa Keflavik Berlin Darwin
Slide 29: Contract renewals secured during H2
Geographic focus Contract renewals secured during H2 Toronto Seattle Phoenix Bordeaux/Lyon Norway Retail Gothenburg Manchester Heathrow
Slide 30: Investing in proposition to drive like-for-like growth
Enhancing competitive strengths Investing in proposition to drive like-for-like growth Focusing on ‘big outlet’ Leveraging consumer and Adding new brands and Refreshing our own performance client insights concepts brands • Opportunity to drive • Using insights to • Continually evolving • Enhancing m
Slide 31: Leveraging digital to improve customer experience and drive efficiency
Enhancing competitive strengths Leveraging digital to improve customer experience and drive efficiency Digital ordering Frictionless Communicating wait times • Rapid roll out of digital • Leverages AI technology • More visibility on ordering to enable entirely customer wait times Customer ordering c
Slide 32: Leveraging digital to restructure our labour requirements
Enhancing competitive strengths Leveraging digital to restructure our labour requirements Case Study – Order at Table - Seattle Tacoma Vyne Ballard Brew Hall 2/3 c. transactions Transaction values; Labour costs; completed through customers have more reduction as servers can ‘order at table’ via a ti
Slide 33: Focus on people and culture
Enhancing competitive strengths Focus on people and culture Attraction and retention Inclusion and Developing skills Focus on safety and well- engagement being • Local attraction and • Driving engagement • Training opportunities • Mental health retention schemes • Global inclusion • Personal develop
Slide 34: Sustainability front-and-centre
Enhancing competitive strengths Sustainability front-and-centre Global strategy and targets Strong progress Leading with purpose Clear and measurable targets to 2025 Good progress against 2025 targets Driving positive change in the food Net zero carbon emissions across our Mapped carbon fo
Slide 35: Driving profit conversion
Drive operational efficiency Driving profit conversion Refreshed efficiency programme 4 Rigorous inflation mitigation and pricing 1 Commercial deep dives Procurement - supplier rationalisation, menu standardisation Sustainable, Labour scheduling high returns Energy efficiency Digital OAT and k
Slide 36: Revenue building to £3.2bn - £3.4bn by 2024
Revenue building to £3.2bn - £3.4bn by 2024 Planning Assumptions 2019-2024 revenue bridge c.£3.2bn – 2019-2023 revenue bridge c.12-14% £3.4bn c.£2.9bn - c.7% £3.0bn £2.8bn c.9% c.5% £2.8bn c.5% c.7% c.(5)-(10)% c.(10)-(15)% 2019 PAX Normal Supernormal S' normal Net gains 2023 2019 PAX Normal Superno
Slide 37: EBITDA increasing to £325-375m for 2024
EBITDA increasing to £325-375m for 2024 Planning Assumptions: 2023 2024 Planning assumptions - 2024 • LFL business operating at broadly 2019 Revenue £2.9-3.0bn £3.2-3.4bn levels vs. 2019 • Cash EBITDA ahead of 2019 levels due - PAX 85-90% 90-95% to benefit of net gains - Cumulative inflation c.12% c
Slide 38: Summary
Summary • Strong rebound in travel; our economic model is working well • Good revenue momentum in the early part of our new financial year • Dealing with cost headwinds; ability to manage short term changes in demand and mitigate cost inflation • Further recovery in sales and profitability expected
Slide 39: SP Tid Bens
“2 SP Tid Bens
Slide 40: 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