Q3 2018 EARNINGS CALL 6 DECEMBER 2018 swissport.com
DISCLAIMER The presentation contains forward-looking statements, including statements about the Company's intentions, beliefs and expectations. These statements are based on the Company's current plans, estimates and projections, as well as the Company's expectations of external conditions and events. Forward-looking statements involve inherent risks and uncertainties and speak only as of the date they are made. The Company undertakes no duty to and will not necessarily update any such statements in light of new information or future events, except to the extent required by any applicable law or regulation. Recipients of this presentation are therefore cautioned that a number of important factors could cause actual results or outcomes to differ materially from those expressed in any forward-looking statements.
AGENDA Overview Financial Review Summary and Outlook Q&A
Q3 2018 PERFORMANCE REVENUE EBITDA 2 Financial highlights 9M 2018: 2,228.4 MEUR 9M 2018: 214.8 MEUR +11.3% +29.7% 9M 2017: 2,001.3 MEUR 1 9M 2017: 165.6 MEUR 1 Swissport continues to deliver a strong operating performance with revenue growth and over proportional EBITDA growth. Operating highlights Successfully acquired Cargo handler Apron GmbH in September 2018 to increase our cargo network in Germany. Including Stuttgart, we operate now 10 locations in Germany Expanded the cargo warehouse in London Heathrow to meet demands Won a significant new customer, Air New Zealand, in the Pacific region Announced new organization structure for 2019, consolidating 9 into 3 regions 1 On constant currency basis. 2 Operating EBITDA, as defined on page 9 of the Financial Statements. Page 4
COMMERCIAL PERFORMANCE As of 30 September 2018, contract wins with an annualized value of 85.7MEUR. Renewed contracts with an annualized value of 138.6 MEUR. In MEUR Wins Net YTD 30 September value 85.7 45.5 2018 Impact 46.0 28.9 Page 5
AGENDA Overview Financial Review Summary and Outlook Q&A
FINANCIAL OVERVIEW MEUR 9M 2017 9M 2017 2 9M 2018 Q3 2017 2 Q3 2018 Revenue 2,096.7 2,001.3 2,228.4 715.1 799.3 Increase to prior-year period 11.3% 11.8% EBITDA 1 173.4 165.6 214.8 85.4 98.5 Increase to prior-year period 29.7% 15.3% EBITDA margin 8.3% 8.3% 9.6% 11.9% 12.3% Operating profit 71.0 67.2 99.7 43.7 74.1 Loss/profit for the period -52.3-53.2-14.3-4.5 42.6 Operating cash flow 69.0 103.7 Purchase of property, vehicles and equipment 51.6 72.1 Cash and Cash equivalents 126.8 140.4 Net debt 3 1,176.7 1,533.2 1 Operating EBITDA, as defined on page 9 of the Financial Statements. 2 Measured on a constant currency basis. 3 2017 number reflects net debt as of 31 December 2017. 2018 number reflects net debt as of 30 September 2018 Page 7
EBITDA 1 BRIDGE 9M 2018 VS 9M 2017 (In MEUR) 173.4 165.6 15.0 11.5 5.8 5.3 4.2 4.1 1.6 4.0-0.6-1.7 214.8-7.8 9M 2017 FX impact 9M 2017 Acquisition Cargo Adjacent Start ups US focus De-icing Margin Other Japan Canada 9M 2018 CC trading business stations improvement typhoon LWO 1 Operating EBITDA, as defined on page 9 of the Financial Statements. Page 8
CASH FLOW 9M 2018 VS 9M 2017 MEUR 9M 2017 9M 2018 Total Cash Flow from operating activities 69.0 103.7 Total Cash Flow from investing activities -441.9-315.8 Total Cash Flow from financing activities 371.8 250.9 Net increase (decrease) in unrestricted cash and cash equivalents Purchase of property, vehicles and equipment -1.1 38.8-51.6-72.1 Purchase of intangible assets -5.7-7.6 Proceeds from sale of property, vehicles and equipment 6.5 7.3 - Cash Flow from operations positive at 103.7 MEUR and significantly improved versus prior year period mainly driven by better business performance and working capital management. - Cash Flow from investing activities reflects the acquisition of Aerocare and a partial repayment of the affiliate loan in May; the proceeds of this repayment were applied towards the reduction of Term Loan B and Incremental Term Loan B. - Cash Flow from financing activities mainly includes acquisition financing (incremental Term Loan B and Note Purchase Agreement). - Capital Expenditure reflects ramp up for Q4 business. Page 9
NET DEBT AND LEVERAGE MEUR 30 Sep 2017 31 Dec 2017 31 Mar 2018 30 Jun 2018 30 Sep 2018 Net debt as reported 1,116.0 1.176.7 1.589.9 1,540.5 1,533.2 Note Purchase Agreement and unexchanged bonds 0.0-50.7-179.9-195.0-200.7 Accrued interest -8.9 0.0 0.0 0.0 0.0 Net debt of unrestricted entities -22.9-25.4-22.5-23.1-21.1 Others 0.0-18.1-19.4-21.6-17.8 Net debt covenant definition 1,084.2 1,082.5 1,368.1 1,300.8 1,293.7 LTM EBITDA 218.4 220.1 229.1 250.6 262.6 Adjusted for unrestricted entities 1.1 2.7-1.8-3.4 2.2 Adjusted for Aerocare (pro-forma effect) 0.0 0.0 28.2 20.4 11.7 Other -2.5-4.2-4.3-11.9-9.5 LTM EBITDA covenant definition 217.0 218.6 251.2 255.7 267.0 Leverage ratio 5.00 4.95 5.37 5.09 4.85 Maximum 7.00 7.00 6.75 6.50 6.00 Page 10
AGENDA Overview Financial Review Summary and Outlook Q&A
SUMMARY AND OUTLOOK Swissport continues to focus on profitable growth supported by a consolidated regional structure Roll out of station management blue print across the organization Implementation of IT infrastructure transformation program to be finalized in Q1 2019 Ongoing roll out of finance transformation program to further increase standardization of global business processes We expect to deliver full year 2018 well ahead of last year and to show further improvements in 2019 Page 12
AGENDA Overview Financial Review Summary and Outlook Q&A
Q&A swissport.com