Ssp Group Plc · LSE:SSPG
Ssp — Investor Day (June 2023)
19 slides from Ssp's investor day presentation, Jun 21, 2023
Slide 1: Delivering long term sustainable growth for shareholders
Delivering long term sustainable growth for shareholders Patrick Coveney, Group CEO 21 June 2023 www.foodtravelexperts.com
Slide 2: Welcome
WELCOME
Slide 3: Today's agenda
Today’s agenda 8:00 Welcome and trading update P. Coveney 8:05 Delivering long term sustainable growth P. Coveney 8:30 SSP America M. Svagdis/P. Murray 9:35 Showcase session #1 N.A leadership team 10:00 Break 10:15 Showcase session #2 N.A leadership team 10:45 Showcase session #3 N.A leadership team
Slide 4: Revenue now at 110% of 2019 levels
Revenue now at 110% of 2019 levels 2023 H2 2022 H1 2022 H2 2023 H1 To date* Continental Europe 70% 95% 109% 114% North America 74% 94% 127% 123% UK & ROI 60% 84% 85% 94% Rest of World 43% 85% 104% 115% Group 64% 90% 104% 110% * 2023 H2 to date represents period from 1 April to 11 June 2023
Slide 5: Purpose, Vision & Values
Purpose, Vision & Values Our Purpose To be the best part of the journey To be the World’s best travel food and Our Vision beverage company Our Values
Slide 6: Moving from recovery to sustainable growth
Moving from recovery to sustainable growth Covid travel environment Post-Covid environment Early 2020 Spring 2022 Summer 2023 2024 onwards Business protection Hibernation Recovery and rebuild Sustainable growth 6
Slide 7: Delivering long term sustainable growth
Delivering long term sustainable growth 1 2 3 4 Accelerated growth Profit performance Cash generation Capital allocation • Pivot the business to Air • Enhance the capabilities • Maintain disciplined • Drive organic growth, and to regions with that will allow us to grow organic investment complemente
Slide 8: 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 100 33 104 ~120 c.2% 200 North Am
Slide 9: Strong demand for food & beverage experiences
Strong demand for food & beverage experiences 1 2 3 Consumers wanting to travel; Consumers spending more Behaviours evolving post-Covid food integral to experience for quality Travel #1 40% 83% way to spend discretionary income willing to pay for "premium" as or more likely to purchase food food or
Slide 10: Strategic priorities
Strategic priorities Increase geographic focus • Accelerate growth in North America and targeted 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 11: Regional priorities
Regional priorities North America Rest of the World Continental Europe UK & Ireland • Grow share of existing airports • Grow share in Asia Pac • Drive LFL performance • Drive LFL performance • Further penetrate top 80 airports particularly India & Middle-East • Focus on retention • Strengthen own br
Slide 12: Our economic model is designed to generate high growth and returns
Our economic model is designed to generate high growth and returns • 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 • Gro
Slide 13: Driving like-for-like sales
1. Like-for-like revenue growth Driving like-for-like sales Structural growth • Pivoting to higher growth markets Like-for-like Capture rates • Leveraging customer insights to develop sales strong customer propositions • Loyalty, marketing Spend per head • Compelling propositions and promotions (e.g
Slide 14: Driving new business development
2. New business development Driving new business development New contracts: existing sites • Brand portfolio, relationship, performance • Builds local scale New business development New contracts: new sites • Leverage client insights and local expertise • New platform for growth New markets • Select
Slide 15: Accelerating pace of new business wins – H1 secured pipeline at c.£625m
2. New business development Accelerating pace of new business wins – H1 secured pipeline at c.£625m1 Estimated net gains contribution c.£625m pipeline by geography Revenue mix by geography2 from secured business wins3 UK RoW c.2% 7% 14% Est. yoy net N.America 9% c. 40% NA gains incl. 8-9% & ROW Midf
Slide 16: Targeted M&A: accelerated growth, high ROI
2. New business development Targeted M&A: accelerated growth, high ROI Driving growth and returns through targeted M&A Case Study: Midfield Building share in high growth US Access to airports where organic entry can be market with 40 new units in 7 airports more challenging Four new locations; now i
Slide 17: JV partnerships strengthen capability and enable faster growth
2. New business development JV partnerships strengthen capability and enable faster growth Successful JV partnerships in N.A. and RoW • Distinct models - NA: Multiple JV partners; stipulated in contracts - RoW: Typically, one market partner; key to successful entry into new markets • Leverage their
Slide 18: Managing cash profit and margin
3. Profit conversion Managing cash profit and margin Enhanced efficiency programme Operating profit growth Digital and automation Sustainable growth and cost efficiency Operating leverage
Slide 19: Key messages
Key messages 1 2 3 4 Accelerated growth Profit performance Cash generation Capital allocation North America: a significant opportunity for growth and returns Michael Svagdis & Pat Murray