WDF S.P.A. Q4 & FULL YEAR 2014 RESULTS PRESENTATION

Transcription

1 WDF S.P.A. Q4 & FULL YEAR 2014 RESULTS PRESENTATION 11 th March 2015 WORLD DUTY FREE GROUP AFRICA AMERICAS ASIA EUROPE

2 Important Note THE PROPORTIONAL PARTIAL DEMERGER OF AUTOGRILL S.P.A., WHEREBY AUTOGRILL S.P.A. TRANSFERRED ITS TRAVEL RETAIL AND DUTY FREE BUSINESS TO WORLD DUTY FREE S.P.A.,CAME INTO EFFECT ON 1st OCTOBER 2013 ON THE SAME DATE WORLD DUTY FREE S.P.A. ORDINARY SHARES STARTED TRADING ON THE MERCATO TELEMATICO AZIONARIO (ELECTRONIC STOCK MARKET) ORGANIZED AND OPERATED BY BORSA ITALIANA S.P.A. ANY REPORT FOR PERIOD BEFORE 1st OCTOBER 2013 TO THE TRAVEL RETAIL IS ENTIRELY ATTRIBUTABLE TO AUTOGRILL ALTHOUGH WDF SPA WAS ESTABLISHED ON MARCH 27TH 2013, THE CONSOLIDATED RESULTS OF THE Q4 OF 2014 HAVE BEEN PRESENTED COMPARED TO THE Q4 OF 2013 OF THE CONSOLIDATED RESULTS OF WDFG SAU, AS IF THE DEMERGER HAD TAKEN PLACE BY JANUARY 1ST 2013 THIS APPROACH IS IN LINE WITH THE ONE FOLLOWED IN THE PREPARATION OF THE CONSOLIDATED FINANCIAL STATEMENTS OF THE WDF SPA FOR THE YEAR 2

3 Forward Looking Statements This presentation is of a purely informative nature and does not constitute an offer or solicitation to sell, exchange or buy securities issued by World Duty Free S.p.A. or its subsidiaries or any advice or recommendation with respect to such securities or other financial instruments, nor shall it or any part of it nor the fact of its distribution form the basis of, or be relied on in connection with, any contract or investment decision in relation thereto. the statements contained herein have not been independently verified. This presentation shall mean and include the slides that follow, the oral presentation of the slides by World Duty Free S.p.A. and any question-and-answer session that follows that oral presentation and hard copies of this document. This presentation is not for distribution in, nor does it or any other statement (oral or otherwise) made at any time in connection herewith constitute an offer of securities for sale in Canada, Australia, Japan or in any jurisdiction where such distribution or offer is prohibited. Neither the presentation nor any copy of it may be taken or transmitted into the United States of America, its territories or possessions, or distributed, directly or indirectly, in the United States of America, its territories or possessions or to any U.S. person as defined in Regulation S under the US Securities Act Any forward looking statements, projections, objectives and estimates in this presentation are based upon information available on the date of this presentation and are subject to change without notice. Any forward looking statements involve risks and uncertainties that could cause actual events or results to differ materially from the events or results described in the forward looking statements. Actual results or performance may differ significantly from the from those expressed in or implied by these statements for a number of reasons and factors, many of which are beyond the ability of World Duty Free S.p.A. to control or estimate precisely including by way of example: traffic trends in the countries and business channels where the Group operates; the outcome of negotiations on renewals of existing concession contracts and future tenders; changes in the competitive scenario; exchange rates between the main currencies and the euro, esp. the US dollar and UK sterling; interest rate movements; future developments in demand; changing oil prices; general global economic conditions; geopolitical factors and new legislation in the countries where the Group operates; other changes in business conditions. Statements contained in this presentation regarding past trends or activities should not be taken as a representation that such trends or activities will continue in the future. World Duty Free S.p.A. makes no representation or warranty, whether expressed or implied, and no reliance should be placed on, the fairness, accuracy, completeness, correctness or reliability of the information contained herein and/or discussed verbally. Neither the Company nor any of its representatives shall assume any responsibility or accept any liability whatsoever (whether arising in tort, contract or otherwise) arising in any way in relation to such Information or in relation to any loss arising from its use or otherwise arising in connection with this presentation. World Duty Free S.p.A. undertakes no obligation to publicly update or revise any forward looking statements, whether as a result of new information, future events or otherwise. Readers are cautioned not to place undue reliance on forward looking statements contained herein, which are made only as of the date of this presentation. This presentation has to be accompanied by a verbal explanation. A simple reading of this presentation without the appropriate verbal explanation could give rise to a partial or incorrect understanding. 3

4 Definitions GROSS MARGIN EBIT EBITDA ADJUSTED EBITDA ADJUSTED RENTS WORKING CAPITAL CASH FLOW FROM OPERATIONS NET CASH FLOW FROM OPERATIONS CAPEX FREE OPERATING CASH FLOW (FOCF) NET PROFIT NET FINANCIAL POSITION (NFP) NET INVESTED CAPITAL EARNINGS PER SHARE CONSTANT EXCHANGE RATES CHANGE COMPARABLE GROWTH Revenue less Cost of Goods sold Operating profit EBIT excluding provision for risk and charges, restructuring costs, linearization of concession fees and depreciation, amortization and impairment losses on property, plant and equipment and intangible assets EBITDA plus the recovery of annual concession fees paid in advance to AENA Contractual concession fees minus the recovery of annual concession fees paid in advance to AENA Inventories plus Trade Receivables, Other assets and Income tax assets lees Trade Payable, Other liabilities, Income tax liabilities and Employee benefits Adjusted EBITDA plus change in Working Capital plus change in Non-current Nonfinancial Assets and Liabilities and Other non cash items Cash Flow from Operations less net interests and taxes paid Capital Expenditure excluding Investments in financial non-current Assets and Equity investments Net Cash Flow from Operations less Capex paid, plus/minus Net Investments proceeds/paid Profit for the year Bank loans and borrowings and Other financial Liabilities current and non-current minus Cash & Cash Equivalents and non-current financial Assets. Should the NFP be negative, it can be also be referred as Net Debt Non-Current Assets plus Working Capital plus Other non-current non-financial Assets and Liabilities plus Assets held for sale Profit for the year attributable to owners of the parent divided by the average number of outstanding shares The variation that would have been reported had the comparative figures of consolidated companies with functional currencies other than Euro been converted at the same exchange rates Revenue generated only by those stores which have been up and running for periods reported with the same offer Some figures may have been rounded to the nearest million. Changes and ratios have been calculated using figures in thousands and not the figures rounded to the nearest million as shown. Some reclassifications of 2013 figures and/or items have been made in order to get a better understanding of the changes during

5 GLOBAL RETAIL TRAVEL EXCELLENCE Foundations in place to deliver 3-year budget Eugenio Andrades CEO WORLD DUTY FREE GROUP AFRICA AMERICAS ASIA EUROPE

6 Strong performance in line with expectations Revenues up to 2,406m; +15.8% vs (+13.7% in local currency) Q4 Sales growth in line +15.8% vs (+11.2% in local currency) Ex US Retail FY sales +11.0% vs (+8.9% in local currency) Q4 sales % vs (+12.4% in local currency) Adjusted EBITDA: 289.7m; +5.2% vs % 15.0% 10.0% 5.0% Revenue Growth % 15.9% 15.8% 12.4% 10.2% 8.9% 10.2% 3.1% Adjusted EBITDA margin dilution from 13.2% to 12.0% Net Debt reduced to 969.5m 0.0% Q1 Q2 Q3 Q4 Reported growth Ex Us Retail at constant FX Portfolio length (ex US) 8.9 years 6

7 UK airports performing well despite strength of MAN 10% STD 6% Sales FY 2014 Rest of UK 22% LGW 18% LHR 44% Change in Q FY 2014 Sales Pax* Sales Pax* TOTAL UK +4.9% +5.9% +2.9% +4.9% LHR -3.1% +1.3% -2.4% +1.4% LGW +6.5% +7.3% +5.2% +7.5% STD +34.9% +20.1% +24.9% +12.0% MAN +7.2% +6.5% +6.3% +5.8% LHR impacted by: Strength of Political events impacting other currencies (e.g. ruble) Airport reorganisation developments / T5 refurbishment, T2 opening, T1 preparation for closure Outside LHR PAX growth coupled with aggressive commercial actions to maximise spends Contract extensions secured at LHR, MAN & STD (UK portfolio length 11.5 years) UK Sales +2.9% in = +8.4% in * Source: LHR Airports Ltd, Manchester Airport Group and Gatwick Airport 7

8 Sales recovery continues in Spain 15.0% Evolution of Traffic vs. WDFG sales Y-o-Y Quarterly growth rates 10.0% 5.0% 0.0% Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q % -10.0% Change in traffic Spain Spain LFL sales Full year sales growth +14.1% vs 2013, driven by traffic +4.6% (LFL sales +8.8%) Sales in Q4 improved to +20.7% vs 2013, from traffic +4.3% (LFL sales +8.2%) Top performers: Tenerife South, Mallorca, Malaga, Alicante & Palma Source: AENA LFL excludes Tenerife South & Boutiques 8

9 Madrid now taking the lead in traffic growth MAD & BCN vs. Rest of Spain Quarterly figures 30.0% 25.0% 20.0% 15.0% Change in traffic Madrid Change in traffic Rest of Spain (excl MAD & BCN) Change in traffic Barcelona 10.0% 5.0% 0.0% -5.0% Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q % -15.0% -20.0% Q4 sales: MAD +9.4% from increased traffic and spends matching 2013 levels (LFL sales +4.0%) BCN +9.1% achieved through passenger and spend growth (LFL sales +3.7%) Source: AENA LFL excludes boutiques sales 9

10 Other regions performing well Y-o-Y Growth % Euro Local currency % to total sales UK 8.4% 2.9% RoEUROPE 18.8% 18.8% AMERICAS 36.0% 39.7% Excl. US Retail 4.3% 8.5% ASIA&ME 8.1% 7.8% 18.2% 5.9% 7.2% 44.0% TOTAL 15.8% 13.7% Excl. US Retail 11.0% 8.9% 24.7% Other airports in Europe outside Spain improved Euro 32.8 million (+58%) driven mainly by Helsinki which opened in March adding sales of Euro 27.7m Americas Vancouver +19.4% from development improving Beauty & Luxury proposition. Asia & ME Jordan walk-through opened in Q improving spends in Q1 to Q

11 GLOBAL RETAIL TRAVEL EXCELLENCE Solid financial performance David Jiménez-Blanco CFO WORLD DUTY FREE GROUP AFRICA AMERICAS ASIA EUROPE

12 2014 performance in line with expectations 12 Months Million Eur Change Change at constant FX REVENUES 2, , % 13.7% GROSS MARGIN 1, , % 13.2% % On Sales 58.7% 58.9% ADJUSTED EBITDA % 2.9% % On Sales 12.0% 13.2% NET PROFIT (62.5%) (65.6%) % On Sales 1.7% 5.3% CAPEX % % On Sales 3.3% 2.9% FOCF (225.6) n.a. % On Sales 4.3% (10.9%) NFP as of 31st Dec ,026.7 (5.6%) 12

13 Strong sales growth FY ,500 In million Euro 2,400 US Retail contribution 2, , % ,200 2, ,100 2, ,000 2, % 1,900 1,800 Revenues 12 Months 2013 Forex effect United Kingdom Rest of Europe Americas (ex US Retail) Asia & Middle East Revenues 12 Months

14 Adjusted EBITDA margin FY % 13.5% 13.2% 0.3% 13.5% (0.4%) 0.1% (0.4%) 13.0% 12.5% (0.7%) 0.5% 12.6% (0.6%) 12.0% 12.0% 11.5% 11.0% Adjusted EBITDA margin 12M 2013 Us Retail exclusion Adjusted EBITDA margin 12M 2013 (ex US Retail) Gross margin Other operating income Personnel Adjusted rents Other operating cost Adjusted EBITDA margin 12M 2014 (ex US Retail) US Retail Adjusted EBITDA margin 12M

15 Positive cash flow generation FY Months Million EUR Adjusted EBITDA Change in working capital and net change in non-current non-financial assets and liabilities (34.6) (10.7) AENA advance payment 0.0 (278.9) Other non-cash items (0.2) 0.5 CASH FLOW FROM OPERATIONS (13.7) Tax (paid) / refund (49.1) (50.8) Net interest paid (42.8) (31.6) NET CASH FLOW FROM OPERATIONS (96.1) Net CAPEX outflow (69.7) (49.5) Net investments (paid) / proceeds 10.3 (80.0) FREE OPERATING CASH FLOW (225.6) 15

16 1,050 1, Continued reduction in debt despite one-offs In million Euro 1,027 (274) Refinancing fee & cash deposit in India (10) NWC adjustment for HMSHost acquisition & LHR rents NFP Deleverage without extraordinary effects Euro 108m CF from operations before extraord. effects Net tax/interest paid Net CAPEX outflow Other movements NFP before extraord. effects Forex effect Extraord. effects in CF from operations Net investments Other extraordinary movements NFP Covenant ratio 3.35x (3.21x contractual) 16

17 GLOBAL RETAIL TRAVEL EXCELLENCE Update on business priorities & current trading Eugenio Andrades CEO WORLD DUTY FREE GROUP AFRICA AMERICAS ASIA EUROPE

18 Our 3-year budget targets From 2014A to 2017E CAGR Sales ( m) 2,407 3, % Adjusted EBITDA ( m) % Adjusted EBITDA Margin (% Sales) 12.0% 11.2% - Net Debt ( m)

19 Committed to our business priorities 2017E Ebitda impact Complete integration process Organisation 16m IT integration 3m Supply chain & logistics 7m Maximising value of existing contracts Kuwait contract extended to 1st March 2020 New contract Eurotunnel France (Q2 2015) Portfolio length (ex US) 8.9 years Enhancing performance in Spain 17m January traffic above expectations Commercial actions according to plan Pursuing the US opportunity 13m Atlanta, Oakland & Empire State from March 2015 (purchase price $19m) New concessions LAX T6, SFO T3 Integration process in progress 19

20 Current Trading 2015 First 8 weeks Euro Local currency UK 12.3% 2.7% RoEUROPE 32.1% 32.1% AMERICAS 21.5% 3.1% ASIA&ME 17.5% -0.3% TOTAL 19.5% 8.6% Spain +22.5%, continued traffic growth and spends maintained (LFL +6.8%) LFL excludes Tenerife South & Boutiques AMERICAS include US Retail 20

21 GLOBAL RETAIL TRAVEL EXCELLENCE Q&A WORLD DUTY FREE GROUP AFRICA AMERICAS ASIA EUROPE

22 GLOBAL RETAIL TRAVEL EXCELLENCE APPENDIX Quarterly Financial Information WORLD DUTY FREE GROUP AFRICA AMERICAS ASIA EUROPE

23 Adjusted EBITDA as Key Recurrent Performance Measure SALES Other Operating Income TOTAL INCOME Cost of Goods Sold Personnel Expense Rents (no linearisation) OPEX EBITDA Restructuring cost Linearisation adjustment Provision for risk and charges Depreciation Amortization Recovery of the AENA advance payment ADJUSTED EBITDA Non cash and/or non recurring items EBIT WORLD DUTY FREE GROUP AFRICA AMERICAS ASIA EUROPE 23

24 Financial Highlights Q th QUARTER Million Eur Change Change at constant FX REVENUES % 11.2% GROSS MARGIN % 10.1% % On Sales 58.5% 59.0% ADJUSTED EBITDA % 0.6% % On Sales 11.4% 12.7% NET PROFIT (31.5) 19.9 (258.3%) (262.3%) % On Sales (5.0%) 3.6% CAPEX (25.2%) % On Sales 4.3% 6.6% FOCF (73.2) (22.5) 225.9% % On Sales (11.6%) (4.1%) 24

25 Financial Highlights (Excl. US Retail) Q th QUARTER Million Eur Change Change at constant FX REVENUES % 12.4% GROSS MARGIN % 10.9% % On Sales 58.1% 58.8% ADJUSTED EBITDA % (1.1%) % On Sales 12.1% 13.9% NET PROFIT (28.8) 22.3 (229.1%) (234.1%) % On Sales (4.9%) 4.4% CAPEX (31.5%) % On Sales 4.2% 7.2% FOCF (74.1) (22.5) 229.9% % On Sales (12.6%) (4.5%) 25

26 Regional Breakdown of Sales Q th Quarter Million Eur Change Change at constant FX UNITED KINGDOM % 4.9% Airports % 4.9% Non-airports - - n.a. n.a. REST OF EUROPE % 30.2% Airports % 29.1% Non-airports % 44.0% AMERICAS % 4.5% Airports % 4.7% Non-airports (100.0%) n.a. ASIA & MIDDLE EAST % 3.9% Airports % 4.7% Non-airports (60.0%) (60.0%) TOTAL SALES % 11.2% Airports % 10.7% Non-airports % 36.4% Spanish airports % 20.7% 26

27 Regional Breakdown of Sales (Excl. US Retail) Q th Quarter Million Eur Change Change at constant FX UNITED KINGDOM % 4.9% Airports % 4.9% Non-airports - - n.a. n.a. REST OF EUROPE % 30.2% Airports % 29.1% Non-airports % 44.0% AMERICAS % 9.1% Airports % 9.4% Non-airports (100.0%) n.a. ASIA & MIDDLE EAST % 3.9% Airports % 4.7% Non-airports (60.0%) (60.0%) TOTAL SALES % 12.4% Airports % 11.9% Non-airports % 36.4% Spanish airports % 20.7% 27

28 Sales Bridge Q In million Euro Revenues Q Forex effect United Kingdom Rest of Europe Americas Asia & Middle East Revenues Q

29 Adjusted EBITDA Margin Bridge Q % 12.7% (0.5%) 12.5% 0.3% (0.2%) (1.6%) 12.0% 11.5% 0.7% 11.4% 11.0% 10.5% 10.0% 9.5% Adjusted EBITDA margin Q Gross margin Other operating income Personnel Adjusted Rents Other operating cost Adjusted EBITDA margin Q

30 Condensed Cash Flow Statement Q th QUARTER Million EUR Change Adjusted EBITDA Change in working capital and net change in non-current nonfinancial assets and liabilities (81.3) (23.9) (57.4) Other non-cash items CASH FLOW FROM OPERATIONS (9.1) 45.8 (54.9) Tax (paid) / refund (23.1) (20.0) (3.1) Net interest paid (9.5) (12.3) 2.8 NET CASH FLOW FROM OPERATIONS (41.7) 13.5 (55.2) Net CAPEX outflow (18.3) (30.1) 11.8 Net investments (paid) / proceeds (13.2) (5.9) (7.3) FREE OPERATING CASH FLOW (73.2) (22.5) (50.7) Excl. Net investments (60.0) (16.6) (43.4) 30

31 Net Debt Evolution Q ,000 In million Euro (5) (72) NFP Forex effect Adjusted EBITDA Change in working capital Net tax/interest paid Net CAPEX outflow Net investments Dividends paid Other NFP movements

32 Condensed Consolidated P&L Q th Quarter Change (m ) 2014 constant % on % on exchange Revenue Revenue rates Revenue % % 15.8% 11.2% Other Operating Income % % 41.7% 37.5% TOTAL REVENUE AND OTHER OPERATING INCOME % % 16.1% 11.5% Supplies and goods (263.1) 41.5% (224.3) 41.0% 17.3% 12.8% Personnel expense (78.9) 12.5% (67.2) 12.3% 17.4% 13.1% Contractual concession fees (194.8) 30.8% (161.3) 29.5% 20.8% 16.2% Other operating expense (41.9) 6.6% (39.5) 7.2% 6.1% (0.3%) EBITDA % % 4.8% 0.6% Provisions for risk and charges (9.4) 1.5% (1.1) 0.2% 754.5% 736.4% Restructuring costs (5.5) 0.9% - 0.0% n.a. n.a. Linearization of concession fees (8.5) 1.3% - 0.0% n.a. n.a. Depreciation, amortisation and impairment losses (30.5) 4.8% (25.3) 4.6% 20.6% 16.6% EBIT % % (69.0%) (73.0%) Net financial costs (13.6) 2.1% (10.6) 1.9% 28.3% 28.3% Other financial results (0.2) 0.0% (0.1) 0.0% 100.0% 0.0% Pre tax profit (2.8) 0.4% % (111.3%) (116.5%) Income tax (28.7) 4.5% (4.9) 0.9% 485.7% 475.5% Net profit attributable to: (31.5) 5.0% % (258.3%) (262.3%) - controlling interest (34.0) 5.4% % (306.1%) (310.9%) - non-controlling interest % % (26.5%) (26.5%) Adjusted EBITDA % % 3.5% 0.6% 32

33 Condensed Consolidated P&L (Excl. US Retail) Q th Quarter Change (m ) constant % on % on exchange Revenue Revenue rates Revenue % % 16.7% 12.4% Other Operating Income % % 22.2% 19.4% TOTAL REVENUE AND OTHER OPERATING INCOME % % 16.8% 12.5% Supplies and goods (245.9) 41.9% (206.8) 41.2% 18.9% 14.7% Personnel expense (67.3) 11.5% (54.8) 10.9% 22.8% 19.2% Contractual concession fees (186.1) 31.7% (153.1) 30.5% 21.6% 17.1% Other operating expense (32.0) 5.5% (32.8) 6.5% (2.4%) (7.3%) EBITDA % % 2.9% (1.3%) Provisions for risk and charges (9.3) 1.6% (0.6) 0.1% % % Restructuring costs (5.5) 0.9% - 0.0% n.a. n.a. Linearization of concession fees (8.5) 1.5% - 0.0% n.a. n.a. Depreciation, amortisation and impairment losses (28.6) 4.9% (23.4) 4.7% 22.2% 18.4% EBIT % % (68.9%) (72.8%) Net financial costs (13.6) 2.3% (10.6) 2.1% 28.3% 28.3% Other financial results (0.2) 0.0% (0.1) 0.0% 100.0% 0.0% Pre tax profit (2.0) 0.3% % (107.4%) (112.5%) Income tax (26.8) 4.6% (4.9) 1.0% 446.9% 440.8% Net profit attributable to: (28.8) 4.9% % (229.1%) (234.1%) - controlling interest (30.6) 5.2% % (261.9%) (268.3%) - non-controlling interest % % (41.2%) (44.1%) Adjusted EBITDA % % 1.8% (1.1%) 33

34 Condensed Consolidated P&L - Net Financial Expense Q Q Q Million Eur (7.7) Interest Expense on Debt (7.7) Bank Debt 0.1 Interest Income 3.7 Other Million Eur (9.3) Interest Expense on Debt (9.3) Bank Debt 0.1 Interest Income 2.3 Other (3.9) Interest Expense, net (6.9) Interest Expense, net (9.7) Charges (9.0) Fees (0.7) Other Charges (3.7) Charges (2.6) Fees (1.1) Other Charges (13.6) Net Financial Expense (10.6) Net Financial Expense 34

35 GLOBAL RETAIL TRAVEL EXCELLENCE APPENDIX Annual Financial Information WORLD DUTY FREE GROUP AFRICA AMERICAS ASIA EUROPE

36 Regional Breakdown of Sales FY Months Million Eur Change Change at constant FX UNITED KINGDOM 1, % 2.9% Airports 1, % 2.9% Non-airports - - n.a. n.a. REST OF EUROPE % 18.8% Airports % 18.4% Non-airports % 25.5% AMERICAS % 39.7% Airports % 39.9% Non-airports (21.4%) (21.4%) ASIA & MIDDLE EAST % 7.8% Airports % 9.1% Non-airports (82.6%) (82.6%) TOTAL SALES 2, , % 13.7% Airports 2, , % 13.6% Non-airports % 18.6% Spanish airports % 14.1% 36

37 Regional Breakdown of Sales (Excl. US Retail) FY Months Million Eur Change Change at constant FX UNITED KINGDOM 1, % 2.9% Airports 1, % 2.9% Non-airports - - n.a. n.a. REST OF EUROPE % 18.8% Airports % 18.4% Non-airports % 25.5% AMERICAS % 8.5% Airports % 8.7% Non-airports (21.4%) (21.4%) ASIA & MIDDLE EAST % 7.8% Airports % 9.1% Non-airports (82.6%) (82.6%) TOTAL SALES 2, , % 8.9% Airports 2, , % 8.7% Non-airports % 18.6% Spanish airports % 14.1% 37

38 Sales Breakdown by Category & Fiscal Regime FY 2014 SALES BY CATEGORY 12 Months Months % total % total Growth YoY FOOD & CONF % 11.4% 13.1% WINE & SPIRITS % 17.9% 11.5% TOBACCO % 12.1% 15.5% BEAUTY 1, % 44.3% 11.3% SOUVENIRS % 2.6% 2.2% US RETAIL % (97.8%) 232.2% OTHERS % 9.5% 1.2% TOTAL AIRPORT SALES 2, , % 0% 15.7% SALES BY FISCAL REGIME 12 Months Months % total % total Growth YoY DUTY FREE 1, , % 59% 7.1% DUTY PAID 1, % 41% 28.0% TOTAL AIRPORT SALES 2, , % 100% 15.7% 38

39 Sales Breakdown by Category & Fiscal Regime (Excl. US Retail) FY 2014 SALES BY CATEGORY 12 Months Months % total % total Growth YoY FOOD & CONF % 11.6% 13.1% WINE & SPIRITS % 18.3% 11.5% TOBACCO % 12.3% 15.5% BEAUTY 1, % 45.3% 11.3% SOUVENIRS % 2.7% 2.2% OTHERS % 9.7% 1.2% TOTAL AIRPORT SALES 2, , % 100% 10.8% SALES BY FISCAL REGIME 12 Months Months % total % total Growth YoY DUTY FREE 1, , % 60% 7.1% DUTY PAID % 40% 16.5% TOTAL AIRPORT SALES 2, , % 100% 10.8% 39

40 Financial Highlights (Excl. US Retail) FY Months Million Eur Change Change at constant FX REVENUES 2, , % 8.9% GROSS MARGIN 1, , % 8.0% % On Sales 58.5% 58.9% ADJUSTED EBITDA % 1.3% % On Sales 12.6% 13.5% NET PROFIT (61.1%) (64.3%) % On Sales 2.0% 5.6% CAPEX % % On Sales 3.3% 3.0% FOCF (225.6) n.a. % On Sales 4.6% (11.1%) NFP as of 31st Dec ,026.7 (5.6%) 40

41 Condensed Consolidated P&L FY 2014 (m ) Months Change % on Revenue 2013 % on Revenue 2014 constant exchange rates Revenue 2, % 2, % 15.8% 13.7% Other Operating Income % % 21.3% 21.7% TOTAL REVENUE AND OTHER OPERATING INCOME 2, % 2, % 15.9% 13.8% Supplies and goods (993.0) 41.3% (853.3) 41.1% 16.4% 14.5% Personnel expense (279.0) 11.6% (220.7) 10.6% 26.4% 24.4% Contractual concession fees (750.0) 31.2% (639.7) 30.8% 17.2% 15.1% Other operating expense (157.1) 6.5% (136.2) 6.6% 15.3% 14.1% EBITDA % % 1.8% (0.6%) Provisions for risk and charges (9.3) 0.4% (1.0) 0.0% 830.0% 840.0% Restructuring costs (9.5) 0.4% - 0.0% n.a. n.a. Linearization of concession fees (8.5) 0.4% - 0.0% n.a. n.a. Depreciation, amortisation and impairment losses (103.3) 4.3% (91.2) 4.4% 13.3% 11.4% EBIT % % (20.6%) (23.5%) Net financial costs (43.6) 1.8% (34.3) 1.7% 27.1% 25.7% Other financial results % % 435.0% 430.0% Pre tax profit % % (26.1%) (29.4%) Income tax (55.5) 2.3% (20.5) 1.0% 170.7% 166.3% Net profit attributable to: % % (62.5%) (65.6%) - controlling interest % % (67.0%) (53.2%) - non-controlling interest % % 32.0% 32.0% Adjusted EBITDA % % 5.2% 2.9% 41

42 Condensed Consolidated P&L (Excl. US Retail) FY 2014 (m ) Months Change % on Revenue 2013 % on Revenue 2014 constant exchange rates Revenue 2, % 2, % 11.0% 8.9% Other Operating Income % % 16.2% 16.2% TOTAL REVENUE AND OTHER OPERATING INCOME 2, % 2, % 11.1% 9.0% Supplies and goods (937.2) 41.5% (835.7) 41.1% 12.1% 10.2% Personnel expense (239.8) 10.6% (208.4) 10.2% 15.1% 13.0% Contractual concession fees (722.9) 32.0% (631.4) 31.0% 14.5% 12.3% Other operating expense (133.1) 5.9% (129.6) 6.4% 2.7% 1.4% EBITDA % % 0.2% (2.3%) Provisions for risk and charges (9.0) 0.4% (0.5) 0.0% % % Restructuring costs (9.5) 0.4% - 0.0% n.a. n.a. Linearization of concession fees (8.5) 0.4% - 0.0% n.a. n.a. Depreciation, amortisation and impairment losses (97.5) 4.3% (89.2) 4.4% 9.3% 7.5% EBIT % % (20.7%) (23.7%) Net financial costs (43.6) 1.9% (34.3) 1.7% 27.1% 25.7% Other financial results % % 435.0% 430.0% Pre tax profit % % (26.1%) (29.5%) Income tax (54.8) 2.4% (20.5) 1.0% 167.3% 162.4% Net profit attributable to: % % (61.1%) (64.3%) - controlling interest % % (63.7%) (50.4%) - non-controlling interest % % (4.0%) (4.0%) Adjusted EBITDA % % 3.7% 1.3% 42

43 Condensed Consolidated P&L - Net Financial Expense FY Months Months 2013 Million Eur Million Eur (39.4) Interest Expense on Debt (30.3) Interest Expense on Debt (39.4) Bank Debt 0.3 Interest Income 11.2 Other (30.3) Bank Debt 0.2 Interest Income 9.6 Other (27.9) Interest Expense, net (20.5) Interest Expense, net (15.7) Charges (12.8) Fees (2.9) Other Charges (13.8) Charges (8.9) Fees (4.9) Other Charges (43.6) Net Financial Expense (34.3) Net Financial Expense 43

44 Net Invested Capital As of and (m ) 31/12/ /12/2013 Change Goodwill Other intangible assets (22.8) Property, plants and equipment Financial assets (5.6) Non-current assets 1, , Working capital (99.9) (106.5) 6.6 Other non-current non-financial assets and liabilities (52.7) Net invested capital 1, , Net Financial Position ,026.7 (57.2) 44

45 WORLD DUTY FREE GROUP AFRICA AMERICAS ASIA EUROPE