The Board of Directors approves consolidated results at 30 June 2021

Autogrill: significant increase in 1H2021 underlying1 EBIT and Free

Cash Flow2, NFP of €567 million in line with its pre-pandemic level, and

2021 Free Cash Flow guidance revised upwards

  • Revenue of €938.3m in 1H2021 (€1,096.5m in 1H2020)
  • Underlying EBIT of -€88.8m in 1H2021 (-€297.0m in 1H2020)
  • Net result of -€148.3m in 1H2021 (-€271.0m in 1H2020)
  • Free Cash Flow of -€55.9m in 1H2021 (-€397.2m in 1H20203)
  • Net financial position excluding lease receivables and liabilities of €567.2m (€1,082.7m as of 31 December 2020), in line with its pre-pandemic level
  • Total liquidity of circa €1.3bn as of 30 June 2021 (€0.6bn as of 31 December 2020) as a result of the equity raising together with all the cash preservation initiatives implemented so far across the Group
  • FY2021 guidance: revenue range now estimated between €2.3bn-€2.6bn. FCF guidance increased to c.-€65m and c.-€15m, on the back of the improvement of the operating performance in 2Q2021. FY2024 targets unchanged.

**

  • Revenue of €938.3m, a decrease of 14.4% at current exchange rate (-10.6% at constant exchange rate4)
    • Like for like performance of -9.5% in 1H20215
    • Improving traffic trend at airports in the US and on motorways across all geographies on the back of the progress of the vaccination campaign
  • Underlying EBIT of -€88.8m in 1H2021 (-€297.0m in 1H2020)
    • Benefitting from the actions implemented to offset the COVID-19 impact, including better product mix, labor cost optimizations and rent renegotiations
  • Net result of -€148.3m in 1H2021 (-€271.0m in 1H2020)
  • Free Cash Flow: -€55.9m (vs. -€397.2m in 1H20203), with a progressive improvement of Free Cash Flow since April 2021
  1. Underlying: an alternative performance measure calculated by excluding certain revenue or cost items in order to improve the interpretation of the Group's normalized profitability for the period. Please refer to "Definitions" for the detailed calculation
  2. Cash generated by the company after deducting capital expenditures from its operating cash flow. Free cash flow does not include the following items: acquisitions, disposals, dividends (both dividends paid to Group shareholders and dividends paid to minority partners)
  3. To be noted that 1H2020 FCF excludes the impact of taxes paid for the Canadian motorways disposal
  4. At constant exchange rates. Average €/$ FX rates:
    • 1H2021: 1.2053
    • 1H2020: 1.1020
  6. The change in like for like revenue is calculated by excluding from revenue at constant exchange rates the impact of new openings, closings, acquisitions, disposals and calendar effect. Please refer to "Definitions" for the detailed calculation

1

  • Net financial position excluding lease receivables and liabilities: €567.2m as of 30 June 2021 (€1,082.7m as of 31 December 2020), in line with its pre-pandemic level, thanks to the equity raising together with all the cash preservation initiatives implemented so far across the Group
  • Liquidity: approximately €1.3bn in cash and available credit facilities at the end of the period
  • New wins and renewals: approximately €1.0bn6, mainly related to extension of existing contracts
  • FY2021 revised guidance:
    • Revenue range for the year narrowed between €2.3bn and €2.6bn
    • FCF for the year increased by €55m to circa -€65m and circa -€15m from previous guidance of circa -€120m and circa -€70m, on the back of the improvement of the operating performance in 2Q2021
    • The revised guidance for the year is based upon the assumption that the current level of traffic will sustain for the rest of the year
    • To be reminded that the FCF indicator is before the net proceeds from the disposal of the US motorways business and that the Underlying KPIs exclude any capital gain from disposals
  • FY2024 targets remain unchanged:
    • Revenue: €4.5bn
    • Underlying EBIT margin: around 6%, about 140bps more compared to FY2019
    • Capex as a percentage of revenue: between 4.8% and 5.4%
    • FCF: between €130m and €160m
  • Capital increase:
    • Successfully completed with a final take-up of 99.16% achieved during the option period concluded on June 29th 2021
    • Total amount of new shares subscribed: 130,633,542 for an aggregate amount of €599.6m
    • Autogrill share price up 66% from January 21st (announcement of the resolution to propose mandate for capital increase to approval of the Shareholders' Meeting) to completion date of rights offering
  • Disposal of US motorways business:
    • Successful completion of the sale of US motorways business on July 23rd to a consortium that is majority owned and led by Blackstone Infrastructure Partners, which includes Applegreen Limited and B&J Holdings, having obtained necessary governmental approvals and consent from landlords
    • Total sale price of c.$381m, after post-closing price adjustments and subject to potential increase through a earn-out mechanism on 2022 and 2023 revenues. Estimated capital gain of approximately $150m

6 Overall value of the contracts calculated as the sum of expected sales of each contract for its entire duration, converted to € at 1H2021 current exchange rates

2

  • ESG:
    • ESG topics have always been a part of Autogrill's way of doing business, with a 15-year long history of commitments and initiatives
    • For this reason the Group has started a new journey launching a new ESG strategy based on three strategic pillars:
      • We nurture people
      • We offer sustainable food experiences
      • We care for the planet
    • In the coming months Autogrill will be setting clear and focused commitments to drive the Group's action in this journey, with the ambition of further enhancing its ability to impact and shaping a better future

1H2021 Results

€m

1H2021

1H2020

Change

Current FX

Constant FX

Revenue

938.3

1,096.5

-14.4%

-10.6%

Underlying EBITDA

166.3

55.5

n.s.

n.s.

Underlying EBITDA margin

17.7%

5.1%

EBITDA

164.2

52.0

n.s.

n.s.

Underlying EBIT

(88.8)

(297.0)

70.1%

68.4%

Underlying EBIT % on revenue

-9.5%

-27.1%

EBIT

(90.9)

(300.5)

69.7%

68.0%

Underlying net result

(146.3)

(268.4)

45.5%

42.8%

Net result

(148.3)

(271.0)

45.3%

42.8%

Free cash flow excluding impact of North American

(55.9)

(397.2)

acquisitions/disposals

Milan, 30 July 2021 - The Board of Directors of Autogrill S.p.A. (Milan: AGL IM), which convened today, has reviewed and approved the consolidated results at 30 June 2021

Gianmario Tondato Da Ruos, Group CEO, said: "The period just ended represents a turning point for our Group. The changes in our business model, implemented during the crisis to preserve profitability and cash, are proving their effectiveness. The positive cash generation registered in 2Q2021 is a clear demonstration of this. The success of the capital increase is an extraordinary sign of the market trust. Thanks to an outstanding management of the operations, we are able to improve our FY2021 Free Cash Flow guidance, and to confirm our 2024 targets at the same time".

3

DETAILED 1H2021 RESULTS

Consolidated revenue: performance driven by channel mix and local dynamicsRevenue growth by region

Organic growth

1H2021

1H2020

€m

FX

Like for Like

Openings

Closings

Acquisitions

Disposals

Calendar

North America (*)

479.0

529.6

(42.5)

(23.9)

-5.0%

24.3

(8.5)

-

-

-

International

55.8

170.7

(3.7)

(100.7)

-64.5%

0.4

(9.2)

-

-

(1.6)

Europe

403.4

396.2

(1.1)

29.3

8.0%

6.5

(10.6)

-

(13.5)

(3.4)

Italy

292.6

239.5

-

54.6

23.4%

4.3

(4.3)

-

-

(1.5)

Other European countries

110.7

156.7

(1.1)

(25.3)

-18.9%

2.2

(6.3)

-

(13.5)

(1.9)

Total REVENUE

938.3

1,096.5

(47.4)

(95.2)

-9.5%

31.2

(28.3)

-

(13.5)

(5.0)

(*) North America - m$

577.4

583.7

3.4

(28.8)

-5.0%

29.3

(10.3)

-

-

-

Consolidated revenue of €938.3m in 1H2021, a decrease of 14.4% at current exchange rates (-10.6% at constant exchange rates) compared to 1H2020 (€1,096.5m)

  • Like for like revenue performance: -9.5% (69% of total stores open as of 30 June 2021)
  • New openings and closings: the footprint rationalization across all geographies was partially offset by the new openings at airports in North America (Salt Lake City and Las Vegas)
  • Acquisitions and disposals: disposal of the concession business in Spain (-€13.5m)
  • Calendar: negative impact of €5.0m due to the fact that 2020 was a leap year
  • Currency: negative impact of €47.4m, mainly due to the depreciation of the US Dollar against the Euro

Revenue by channel

Organic growth

1H2021

1H2020

€m

FX

Like for Like

Openings

Closings

Acquisitions

Disposals

Calendar

Airports

457.9

656.3

(41.8)

(155.6)

-26.2%

20.1

(16.7)

-

(2.6)

(2.0)

Motorways

429.2

354.9

(5.8)

87.0

26.2%

10.3

(9.4)

-

(5.7)

(2.2)

Others Channels

51.2

85.2

0.1

(26.7)

-34.7%

0.9

(2.2)

-

(5.2)

(0.9)

Total REVENUE

938.3

1,096.5

(47.4)

(95.2)

-9.5%

31.2

(28.3)

-

(13.5)

(5.0)

Change

€m

1H2021

1H2020

Current FX

Constant FX

Airports

457.9

656.3

-30.2%

-25.6%

Motorways

429.2

354.9

20.9%

22.9%

Other channels

51.2

85.2

-40.0%

-39.6%

Total Revenue

938.3

1,096.5

-14.4%

-10.6%

4

EBIT and Underlying EBIT

  • Underlying EBIT of -€88.8m in 1H2021, compared to -€297.0m in 1H2020. The improvement was mainly driven by:
    • Better product mix
    • Streamlined operations and improved labor productivity
    • Rightsizing of G&A costs structure to the current level of business
    • Continued work with landlords for rent reliefs
    • Depreciation, amortization and impairment losses of -€255.1m(-€352.5m in 1H2020). The reduction is due to the decrease of Right of Use depreciation related to concession contract extensions and lower write-downs compared to 1H2020
  • EBIT of -€90.9m in 1H2021 compared to -€300.5m in 1H2020
    • EBIT impacted by:
      • -€1.8mcosts related to stock option plans (+€1.5m in 1H2020)
      • -€0.3mcosts related to efficiency costs (-€5.0m in 1H2020)

EBIT and underlying EBIT

€m

1H2021

1H2020

Change

Current FX

Constant FX

Underlying EBIT

(88.8)

(297.0)

70.1%

68.4%

Underlying EBIT % on revenue

-9.5%

-27.1%

Stock option plans

(1.8)

1.5

Efficiency costs

(0.3)

(5.0)

EBIT

(90.9)

(300.5)

69.7%

68.0%

Net financial expense: 4.6% average cost of debt in the period

  • Net financial expense of €49.9m in 1H2021, decreased from €56.5m in 1H2020 due to the reduction of interest on lease liabilities, that decreased from €31.5m in 1H2020 to €22.7m in 1H2021
    • Average cost of debt: increased from 3.0% in 1H2020 to 4.6% in 1H2021 mainly due to the costs connected to the extension of the covenant holiday period

Income tax: -€4.6m in 1H2021

  • Income tax of -€4.6m in 1H2021 compared to +€71.5m in 1H2020
    • The reduction is mainly related to the fact that 1H2020 benefitted from the net US federal income tax refund of $66m resulting from the legislation that allowed HMSHost to carry back 2020 net operating loss (NOL), caused by the adverse impact of COVID-19

Net result: underlying net result of -€146.3m in 1H2021

  • Underlying net result of -€146.3m(-€268.4m in 1H2020)
  • Net result of -€148.3m(-€271.0m in 1H2020)
    • Non-controllinginterests of +€3.4m (-€14.7m in 1H2020)

5

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Autogrill S.p.A. published this content on 30 July 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 30 July 2021 11:08:05 UTC.