Swissport: Investor Presentation
Swissport: Investor Presentation
#1 GLOBAL GROUND
HANDLING AND CARGO
SERVICES PROVIDER
FEBRUARY 2018
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2010 Today 2010 Today 2010 Today 2010 Today 2010 Today
5. Platform for growth in APAC with strong and proven management team
6. Opportunity to extend the Aerocare service offering and leverage Swissport’s best practices framework
KEY CUSTOMERS
INNOVATION
LEADERSHIP
5 3 Pricing
discipline
Global reach
and risk
4 management
7
STRATEGIC PRIORITIES
1. Sustain leadership in
core markets 2. Market leadership in Middle
East and Asia Pacific
• Deliver operational excellence and implement standardised • Realise selected M&A or outsourcing opportunities in emerging
operating procedures (Swissport Formula) markets creating sustainable and profitable revenue streams
• Continue to optimise service offerings across stations • Plan to leverage on Aerocare leadership to further strengthen
• Leverage existing customer portfolio Swissport presence in APAC
• Continue to take advantage of growth opportunities in developed • Continue to take advantage of markets deregulation in MEA and
markets including M&A and outsourcing Asia
• Create shared service centres to optimise back-office activities • Use existing applications across the network such as centralised
load control, Flight Information System, WebRoster, etc
• Leverage procurement activities across regions
• Dedicated innovation team
• Optimise GSE management
8
KEY INVESTMENT HIGHLIGHTS
#1 Global ground handling and cargo services provider1 – scale results in competitive advantage
1.
Reputable and well-established global brand with long-standing and stable customer base
4.
Resilient and cash generative financial profile with potential for margin expansion
5.
Experienced management team with proven track-record and strong corporate culture of governance
7. and control
Notes: (1) As measured by revenue and airports served according to Roland Berger industry report as of 2016 data
9
1. #1 GLOBAL GROUND HANDLING
AND CARGO SERVICES PROVIDER
SCALE RESULTS IN COMPETITIVE ADVANTAGE
SWISSPORT IS THE CLEAR GLOBAL MARKET LEADER... …AND CONTINUES TO GAIN MARKET SHARE
BY REVENUES FY20161 (€BN) MARKET SHARE BY REVENUE (%)
~1.75x #1Ground handling +3x
#2 Cargo
2
+3x 12%
2.7
1.5 1.5 5%
3
1.1
2% 3
Swissport dnata Menzies WFS 2002 2010 2016
3.8
4.8% 1.8% 2.7% 5.3% 4.3% 3.0% 4.2%
Source: Roland Berger industry report; Boeing – Current Market Outlook 2017-2036
Notes: (1) Accessible market
11
2. RESILIENT MARKET WITH STRUCTURAL
UNDERLYING GROWTH DRIVERS (CONT’D)
STABLE, RESILIENT VOLUMES PROVEN AND RESILIENT PASSENGER TRAFFIC AND AIR CARGO1
2007-2008
Airlines avoid cancelling routes to Financial crisis
preserve slots
1973-1978
Oil crisis
CARGO 2003
SARS
1990-1991
Growth in global movement of goods Gulf Crisis
2016
1971
1977
1983
1989
1995
1999
2001
2003
2005
2007
2009
2011
2013
2015
CAGR 1971-2016 : 3.0% 4.4% 4.8%
Swissport Formula
The way we work !
Performance Station Management Operational Safety Management
Standard Training
Management Processes / Tools Processes
Objective • KPI-driven • Standardization of key • Binding operations • Standard training • Continuously improving
performance culture station management manuals & SOPs program & global safety performance
processes and tools oversight
KPI-driven culture with Share verified tools Consistent service Standard training Standard Safety
Swissport focus on continuous and processes quality through proven program across all Management System
= improvement + between operations + operating standards + levels and stations + at all levels
Formula
13
3. OPERATIONAL EXCELLENCE IN DELIVERING
MISSION-CRITICAL SERVICES, WITH INDUSTRY-
LEADING QUALITY AND SAFETY STANDARDS
SERVICES
98%
Airport /
Core Extended core customer driven 96%
Scheduled
Carriers
Low-cost
Carriers
Charter
Airlines
75-80%
Freight
Airlines
Integrator
Airlines
Airports
Consumers
Airlines Industry Key competitors Swissport 2017 Avg
Competitive remuneration
Standardised margin threshold and All contracts approved by both local and
3. return hurdle analysis
global group management
16
4. REPUTABLE AND WELL-ESTABLISHED
GLOBAL BRAND WITH LONG-STANDING
AND STABLE CUSTOMER BASE
Customer concentration
845 customers
Other
38% Top 10 customers
29%
3,250+ contracts
M&A (bolt-on) • Disciplined approach, with clear criteria driving which opportunities
are ultimately selected for investment
• Already-developed markets mitigate start-up risk
• Focus on bolt-on M&A
Greenfield • Global network and development expertise facilitate entry into new
markets
• Assessment of regulatory framework, contract duration/certainty
and capex requirements are key to managing inherent development SAUDI OMAN GHANA
risks ARABIA
19
6. PROVEN CAPABILITY TO DRIVE MULTIPLE
LEVERS OF GROWTH
MAPPING THE CONSOLIDATION OPPORTUNITIES KEY CRITERIA PROVEN M&A BOLT-ON AND
• Market attractiveness ACQUISITION STRATEGY
ATTRACTIVENESS OF MARKET
(BASED ON SWISSPORT ASSESSMENT) M&A OUTSOURCING • Competition
+
5.5
• Ability to gain market
leading position Structured bottom-up process to
5.0
• Labour position identify and maintain a large
• Country risk factors pipeline of opportunities
4.5
Select priority opportunities
FINANCIAL based on financial profile &
4.0
• Volume market attractiveness
• Pricing & profitability
3.5
• IRR & NPV Proven team with track-record of
executing a high volume of
-
transactions globally
3.0 ESTIMATED
(5) 0 5 10 15 20 25 30 35 40 EBITDA (€M)
X Professional experience
25 23 37 36
22 19 29 18
Chief Legal Officer &
Company Secretary EVP UK/Ireland EVP HR EVP Asia Development
Johannes C. Spindler Luzius Wirth Andreas Hugener David Liu
‒ Responsible for Company Secretary, ‒ Responsible for UK and Ireland ‒ Key reporting lines include Global ‒ Responsible for Asia Development
Legal & Compliance, Risk & Insurance Learning & Development,
Management, ASA membership Compensation & Benefit, Labour
‒ Key reporting lines include Risk & Relations, Corporate HR and HR
Insurance Management and Senior Business Partner
Legal Counsels
21
KEY INVESTMENT HIGHLIGHTS
#1 Global ground handling and cargo services provider1 – scale results in competitive advantage
1.
Reputable and well-established global brand with long-standing and stable customer base
4.
Resilient and cash generative financial profile with potential for margin expansion
5.
Experienced management team with proven track-record and strong corporate culture of governance
7. and control
Notes: (1) As measured by revenue and airports served according to Roland Berger industry report as of 2016 data
22