Strategy

Autogrill strategy is based on 3 pillars

Testo: 

MIGLIORAMENTO DELLA REDDITIVITÀ PROFITABILITY ENHANCEMENT FOCUS COSTANTE SULLA CRESCITA DEI RICAVI CONTINUED FOCUS ON TOP LINE GROWTH CREAZIONE DI VALORE TRAMITE L’ALLOCAZIONE DI CAPITALE CREATING VALUE THROUGH CAPITAL ALLOCATION

CONTINUED FOCUS ON TOP LINE GROWTH

  • Steady growth in traffic globally
  • Favorable customer demographic with propensity to spend and natural protection from eCommerce
  • Maintaining the global market leadership through organic growth and bolt-on acquisition
  • Continued development of a strong brand portfolio to offer the best solution to each location

CREATING VALUE THROUGH CAPITAL ALLOCATION

  • Active capital allocation strategy for a continuous enhancement of the contract portfolio
  • Allocating capital to the best opportunities in terms of profitable growth
  • Keeping a solid balance sheet

PROFITABILITY ENHANCEMENT

  • Continued development of innovative commercial offer
  • Shared best-practice worldwide
  • Leveraging on scale and unique market positioning worldwide
  • Digital innovations to increase efficiency and speed of transactions

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Scenario

Source: Euromonitor, Girà, ACI, IMF, Company estimates

A sector with a significant Growth potential

 

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Strategic pillars by region

 

North America
  • Drive incremental business with existing locations
  • Retain existing profitable contracts and secure new contracts
  • Maintain profitability
International
  • Become market leader at airports in selected fast growing markets
  • Expand in new geographies only where sizeable opportunities arise
  • Focus mainly on airport channel
Europe

Italy

  • Focus on product offering
  • Focus on motorways and airports
  • Profitability enhancement

Rest of Europe

  • Increase presence at airports
  • Defend position in motorways
  • Develop railway stations further

 

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Financial target

Outlook 2019
€5.0bn€5.0bn
€450m - €470mUnderlying EBITDA
€0.90 - €0.95Reported EPS

Figures excluding the impact of IFRS16. Assuming €/$ FX of 1.15

Mid–term targets 2021

1) Free cash flow = cash flow before Dividends, Acquisitions and Disposals
2) FY2018 Free Cash Flow = €33m
Figures pre-application of IFRS16. Assuming €/$ FX of 1.15

REVENUE

REVENUE

A

Like-for-Like performance

Steady growth in traffic globally, coupled with increasing spend per passenger

L-f-L growth driven by airports

B

Airports Net openings & bolt-ons

New contract wins

Convenience Retail in North America as a new source of growth

C

Motorways Net closings

Further rationalization

D

Railways Net openings

Further expansion

E

Other channels Net closings

Progressive exit from noncore locations

Each 0.01 movement in Euros to the US Dollars exchange rate has a +/- €20-30m annualized impact on 2019–2021 revenue

Revenue growth will be mainly driven by the like-for-like performance

Assuming €/$ FX of 1.15 for 2019 onwards. 2018 revenue rebased for:

  • The disposal of Canadian motorways and Czech Republic occurred in 1H2019
  • The expiration of T&R motorway agreement occurred in 1H2019
  • €/$ FX of 1.15

PROFITABILITY ENHANCEMENT

North America: slight margin improvement

International: completion of the start-up phase of recently opened locations

Europe: strong margin expansion driven by self-help initiatives

Figures pre-application of IFRS 16. Assuming €/$ FX of 1.15 for 2019 onwards

CAPEX

CAPEX

Assuming €/$ FX of 1.15 for 2019 onwards

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Innovation

DIGITALIZATION Building a competitive model, attracting consumers and increasing efficiency DIGITALIZZAZIONE Creazione di un nuovo modello competitivo, attrazione di nuovi clienti e aumento efficienza GroupCreated with Sketch.Providing sustainablesolutions for our stakeholdersSUSTAINABILITYOfferta di soluzioni sostenibili per i nostri stakeholdersSOSTENIBILITÀ

DIGITALIZATION

Autogrill is leveraging digital to speed up the customers’ journey

 

  Digital kiosks and Tabletop

Service more customers and reduce 
operating expenses
 

  • Kiosks plan in US with roll out in about 130 QSR locations
  • Tabletop & pay at the table solutions in several table service restaurants  
  • Streamline order taking
  • Breakdown of waiting time for guests
Optimize Manpower
  • Eliminate ordering errors
  • Average ticket increase +18% - 20% 

 Mobile order and payments

Speed of transaction is essential for customers Improved customer experience, optimized operations

Allow multiple ordering and payment methods
  • Mobile order& pay through proprietary app ( Host2Coast),3rd party apps ( Grab, Flio) or sing QR and NFC technolgies
  • Pick up the order at the restaurant or have it delivered at the airport gate services
  • Mobile Payments: partnerships in North America with Alipay and Freedompay and in Europe with several providers
  • MyAutogrill app enabling mobile payments in Italy:2% penetration of mobile payments through apps
  • Streamline payment processes
  • Minimize queuing

 

Latest update: Monday, August 5, 2019 - 19:15