Site visit to Euston Station 21 March 2016

Transcription

1 Site visit to Euston Station 21 March 2016

2 Introduction and Welcome Kate Swann, Chief Executive Officer foodtravelexperts.com

3 Euston Station site visit - Timetable pm Introduction and presentations SSP UK in context SSP in the UK UK strategic priorities Euston and Gino s Kate Swann, CEO, SSP Group Simon Smith, CEO, SSP UK & Ireland pm Tour of Euston Station pm Visit to SSP s Gino D Acampo Restaurant 6.30pm Depart 3

4 SSP in UK Context Kate Swann, Chief Executive Officer foodtravelexperts.com

5 Steady growth in a mature market UK, an important market for SSP Mature market Strong position, good profitability Strengthened management team Key Focus on: Strategic initiatives Like for like sales Gross margin Operating efficiency Renewing Profitable business Selective new business Brand development UK Revenue 2012: : 731m 40% 60% 62% UK EBIT 2012: 23.3m 2015: 52.9m 49% 37% 63% 38% 51% Key: Rest of SSP UK 5 Source: SSP financial statements, based on constant currency at budget rates

6 SSP in the UK Simon Smith, Chief Executive Officer, SSP UK foodtravelexperts.com

7 UK Market and Strategy UK Market SSP Strategy Large market Modest growth in rail PAX Stronger growth in air PAX SSP, market leading positions Focus on driving performance Like for like sales Gross Margin Operating efficiency Cash generation Retention, a key focus Rail and Air Selective new business development 7

8 Broad channel and geographic mix Other Channels Other Geographic mix c.9,000 1 employees and 1 SSP head office Air Rail Air Rail Sites Rail Air Other 367 Units Air Presence Rail Presence Other Presence Rail Air Other 1 Including head office employees, excluding Ireland and Rail Gourmet. Unit and site figures for UK excluding Ireland at 30 Sep

9 Wide ranging portfolio of c.45 individual brands and concepts Third Party Franchised Brands Own Brands and Bespoke Concepts International Local Heroes Proprietary Bespoke concepts 9

10 Strong financial performance Steady progress on top line driven by LFL 800 Revenue CAGR 2.4% EBIT Increasing passenger travel and retailing initiatives m Strong increase in EBIT driven by 80 Gross margin improvement Operating Efficiency Control of Overheads m CAGR 32% Note: Includes Rail Gourmet. Figures at constant currency

11 UK strategic priorities Optimise our offer to benefit from the positive trends in our markets Optimise gross margin and leverage scale benefits Run an efficient and effective business Optimise investment using best practice and shared resource Grow profitable space 11 Source: SSP financial statements, revenue based on constant currency at 2016 budget rates

12 UK management team Employment date Simon Smith Chief Executive Officer June 2014 Peter Casey Chief Operating Officer Luke Tait Chief Financial Officer Andy Webb Business Development Director April 2015 October 2001 February 2013 Rachel Howarth HR Director Ian Brown Property Director Angela Morrison UK Commercial Director Lucy Knowles Chief Marketing Officer Ciaran Foley MD Rail Gourmet Employment date November 2015 June 2015 July 2013 May 2013 April

13 Driving LFL sales growth Optimise our offer to benefit from the positive trends in our markets Areas of focus Improve ranges Optimise price and promotion Upselling Maximise use of space Focus on category as well as brand performance 13

14 Driving LFL: Case Study - Soft drink category management Bestsellers Range improvements New chillers and fewer promotions 14

15 Driving LFL: Case Study Burger range, premium bars Classic Cheese & Bacon Ultimate Good Better Best 15

16 Optimising gross margin Optimise gross margin and leverage scale benefits Areas of focus Procurement disciplines Simplify and standardise recipes Reduce waste and losses 16

17 Optimising gross margin: Case Study Premium bars Premium Bar A Premium Bar B Premium Bar C Premium Bar D Actual food GP% 83% 80% 80% 68% Breakfast sales 40% 38% 39% 18% Lunch sales 40% 41% 43% 51% Dinner sales 20% 21% 18% 31% 17

18 Optimising gross margin: Case study Tomatoes Purchasing Usage Bought diced vs. diced in house Sliced by hand vs. sliced by machine 18

19 Driving efficiency Run an efficient and effective business Areas of focus Service optimisation Improve forecasting and scheduling Employ technology to improve efficiency Improve reporting and accountability 19

20 Driving efficiency: Case Study Energy and self-service tills Self Service Energy efficiency New timers M&S, Euston Self-service tills Old meter - no data New data manager system 20

21 Driving efficiency: Case Study CYPAD s Live data Detailed recording Automatic summaries 22. Correct Hand Washing procedures in place 98% 23. No evidence of cross contamination 97% 24. No items of food or drink past their use 98% 25. No items food or drink past their best 99% 26. First in first out followed for products 89% 27. Products into lidded containers once opened 93% 29. HACCP, Cooking, hot holding, delivery 98% 30. Aprons and hats worn in the kitchen 87% 31. Sanitiser used correctly 97% 33. Food prep surfaces clean and sanitised 98% 34. Equipment is clean and in good condition 96% 35. Extraction clean, filters in place 91% 21

22 Optimise investment: Case Study Fit out costs Optimise investment using best practice and shared resource Historic cost of fit out ( Sqm) Current cost of fit out ( Sqm) Savings % International Coffee Brand 3,200 2,800 14% International Casual Dining Brand 2,700 2,300 15% International QSR Brand 3,400 2,900 15% 22

23 Growing profitable Space Grow profitable space Areas of focus High renewal rate New units within existing sites Existing markets, new sites New markets 23

24 Continued brand development core to retention and wins 24

25 Growing profitable space: Case Study Euston retention 25

26 Growing profitable space: Case Study Stansted Airport win 26

27 Euston and Gino s Simon Smith, Chief Executive Officer, SSP UK foodtravelexperts.com

28 Gino is the latest high profile chef to join us 28

29 Disclaimer Certain statements in the presentation may constitute forward-looking statements. These statements reflect the Company s beliefs and expectations and are based on numerous assumptions regarding the Company s present and future business strategies and the environment the Company will operate in and are subject to risks and uncertainties that may cause actual results, performance or achievements to differ materially. Forward-looking statements involve inherent known and unknown risks, uncertainties and contingencies because they relate to events and depend on circumstances that may or may not occur in the future and may cause the actual results, performance or achievements of the Company to be materially different from those expressed or implied by such forward looking statements. Many of these risks and uncertainties relate to factors that are beyond the Company s ability to control or estimate precisely, such as future market conditions, currency fluctuations, the behaviour of other market participants, the actions of regulators and other factors such as the Company s ability to continue to obtain financing to meet its liquidity needs, changes in the political, social and regulatory framework in which the Group operates or in economic or technological trends or conditions. As a result, you are cautioned not to place undue reliance on such forward-looking statements. Additionally, forward-looking statements regarding past trends or activities should not be taken as a representation that such trends or activities will continue in the future. Forward-looking statements speak only as of their date and the Company, any other member of the Group, its parent undertakings, the subsidiary undertakings of such parent undertakings, and any of such person s respective directors, officers, employees, agents, affiliates or advisers expressly disclaim any obligation to supplement, amend, update or revise any of the forward-looking statements made herein, except where it would be required to do so under applicable law or regulatory obligations. It is up to the recipient of this presentation to make its own assessment as to the validity of such forward-looking statements and assumptions. Nothing in this presentation shall exclude any liability under applicable laws that cannot be excluded in accordance with such laws. 30