foodtravelexperts.com

SSP Group plc

Interim Results 201618 May 2016

Presentation structure

1. Group highlights Kate Swann

2. Financial review Jonathan Davies

3. Business review Kate Swann

4. Q & A

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Group highlights

• Good first half performance with operating profit up 22.6% at actual exchange rates, 28.0% at constant currency

• Like for Like sales up 3.3%*, strong first quarter, some moderation since then

• Net new space growth strong at +2.0%

• Strong operating margin growth of 50bps

• Strategic initiatives delivering strongly on both growth and efficiency

• Interim dividend 2.5p, up 19%

• Contract wins and medium term pipeline encouraging

• On-going investment in the business and its many growth opportunities

* Excluding impact of extra day in leap year

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foodtravelexperts.com

Financial Review

Jonathan Davies, CFO

Interim Results 2016

Group Financial Overview

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1 Same store like-for-like sales growth at constant currency. Excluding impact of extra day in leap year

2 Underlying excluding amortisation of intangible assets created at acquisition of SSP Group by EQT in 2006

£m (except where stated)Constant Currency

Reported FX Rates

Revenue 896.7 859.2 5.9% 4.4%

LFL Sales Growth 1 3.3% 3.0% n/a n/a

Operating Profit 2 30.9 25.2 28.0% 22.6%

Profit Before Tax 2 23.2 16.4 n/a 41.5%

3.0 2.1 n/a 42.9%

(374.7) (381.4) n/a 1.8%

1H 2016 1H 2015Change (%)

Earnings per share (p) 2

Net debt

LFL Sales Growth by quarter

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Note: Same store like-for-like sales growth at constant currency.

* FY16 Q2 LFL sales excluding impact of extra day in leap year

.:

Revenue growth of 5.9%

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Change at constant currency LFL Sales

Net Contract Gains/(Losses) Total Revenue

UK 2.8% (0.6%) 2.2%

Continental Europe 2.9% (0.6%) 2.3%

North America 7.6% 14.6% 22.2%

Rest of World 2.2% 10.6% 12.8%

Group (ex. Leap Year) 3.3% 2.0% 5.3%

Leap Year n/a n/a 0.6%

Reported Growth 5.9%

Operating profit growth of 22.6%

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* Operating profit is underlying, at actual currencyUK includes Republic of Ireland

£m 1H 2016 1H 2015Constant Currency

Reported FX Rates

UK 26.5 18.0 47.2% 47.2%

Continental Europe 11.9 13.9 (7.6%) (14.4%)

North America 3.7 0.9 300.0% 311.1%

Rest of World 2.4 6.3 (61.3%) (61.9%)

Non-attributable (13.6) (13.9) 2.2% 2.2%

Group 30.9 25.2 28.0% 22.6%

Operating Profit* Change (%)

Operating profit margin up by 0.5%

10 Note: Underlying excluding amortisation of intangible assets created at acquisition of SSP Group by EQT in 2006

YOY change (% Sales)

Revenue 896.7 859.2

Gross Profit 603.0 573.1% Sales 67.2% 66.7% 0.5%

Labour Costs 275.1 267.0% Sales 30.7% 31.1% 0.4%

Concession Fees 156.4 145.6% Sales 17.4% 16.9% (0.5%)

Overheads 106.0 102.0% Sales 11.8% 11.9% 0.1%

Depreciation & Amortisation 34.6 33.3% Sales 3.9% 3.9% 0.0%

Operating Profit 30.9 25.2% Sales 3.4% 2.9% 0.5%

£m 1H 2016 1H 2015

Net profit up 41.2%

11 1 Underlying excluding amortisation of intangible assets created at acquisition of SSP Group by EQT in 2006

£m 1H 2016 1H 2015 Change (%)

Operating Profit 1 30.9 25.2 22.6%

Net Financing Costs (7.5) (8.6)

Share of Associates (0.2) (0.2)

Profit Before Tax1 23.2 16.4 41.5%

Tax1 (5.2) (3.0)

Non-Controlling Interests (3.6) (3.2)

Net Profit1 14.4 10.2 41.2%

Earnings per share (p)1 3.0 2.1 42.9%

Dividend per share (p) 2.5 2.1 19.0%

Free cash flow

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£m 1H 2016 1H 2015Operating Profit* 30.9 25.2

Depreciation & Amortisation 34.6 33.3

Working Capital (19.8) (24.5)

Capital Expenditure (49.2) (39.8)

Net Tax (9.2) (7.6)

Investment in JV (4.7) -

Other (2.9) 0.1

Operating Cash Flow* (20.3) (13.3)

Net Financing Costs (6.7) (8.4)

Free Cash Flow* (27.0) (21.7)

*Underlying

Net debt increased by £54.9m

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Opening net debt (1 October 2015) (319.8)

Free cash flow (27.0)

Dividend (10.5)

Impact of foreign exchange rates (16.8)

Other (0.6)

Closing net debt (31 March 2016) (374.7)

£m

Financial summary

• Robust LFL sales growth of 3.3%

• Net contract gains strengthening to 2.0%

• Strategic programmes delivering strong Operating Margin growth (up 50 bps)

• Operating profit up 28% YoY (at constant currency)

• EPS up 43% YoY

• Interim dividend of 2.5p, up 19% YoY

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foodtravelexperts.com

Kate Swann, CEO

Business Review Interim Results 2016

SSP business fundamentals

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• Multiple structural market growth drivers

• Market leader in attractive channels and regions

• Strong business platform combining international scale and local expertise

• 5 key levers to drive growth and efficiency

• Sales growth, margin expansion and strong cash generation

• 39% SSP revenue

• Another strong performance in H1

• 2.2%* sales growth, 47.2% operating profit growth

• Benefitting from strengthened management team

• Key focus on:

- Strategic initiatives driving growth & efficiency- High renewal rate- Selective new business- Brand development

UK - Regional update

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* Excluding impact of extra day in leap year

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Continental Europe - Regional update

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• 39% SSP revenue

• Robust performance despite external factors

• 2.3%* sales growth and small operating profit decline

• Regional differences: some countries impacted by geopolitical events, others stronger

• Key focus on:

- Efficiency & flexibility in challenging markets- High renewal rate- Selective new business- Efficient mobilisation of contract wins particularly in France

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• 9% SSP revenue

• Good sales in H1, performance well managed despite external factors

• 12.8%* sales growth, profit in line with expectations

• Regional differences:- Some countries impacted by external events- Continued strong like for like growth in others

• Substantial contract openings ahead of plan

• Key focus on:

- Profitable new business development- Infrastructure development to support growth

Rest of World – Regional update

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• 13% of SSP revenue

• Strong performance in H1

• 22.2%* sales growth and 300% operating profit growth

• Focus on air channel, opportunity to grow share

• Strengthened management team delivering growth & efficiency

• Key focus on:

- Building credentials- Profitable new business development- Mobilising new contracts quickly & efficiently- Generating efficiencies as the business grows

North America – Regional update

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Our focus remains on five key levers to deliver value

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Optimise our offer to benefit from the positive trends in our markets

Grow profitable new space

Optimise gross margin and leverage scale benefits

Run an efficient and effective business

Optimise investment using best practice and shared resource

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Area of Focus

Optimising our offer – LFL sales growth

• LFL growth of 3.3%*, Q2 impacted by geopolitical events

• Underlying positive trends in travel channels

• Geographic diversification

• Strategic initiatives delivering well

• Focus on range improvements

• Strengthening brand portfolio

* Excluding impact of extra day in leap year22

Improve ranges

Optimise price and promotion

Upselling

Maximise use of space

Focus on category as well as brand performance

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Like for like growth: Case Study – Best sellers into more units

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1 unit

2 units

3 units4 units5 units

6 units

Range fragmentation reducing, on-going opportunity

60%48%

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4%5%

5% 11%

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Apr-15 Dec - 2015

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Opportunity to increase presence of best-sellers

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Upper Crust Ritazza Retail Lavazza Freeflow Bars

Existing Missing

Grow profitable new space

• Strong performance, 2.0% net gains, ahead of expectations

• Renewal rate in line with plan:- Focus on retention of profitable

business

• Disciplined approach to new business- Selective investment- All investments reviewed at centre- Strict financial criteria- Post-opening reviews

• Encouraging pipeline in H2

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Area of Focus

New units within existing sites

High renewal rate

Existing markets, new sites

New markets

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New Openings: Luxembourg Airport

• 2.7m pax

• SSP’s debut in the Luxembourg market

• Opened in Spring 2016

• 10 year deal with airport operator Lux- Airport

• Strong brand line-up:

Starbucks Lux Brewery

Moselier Panopolis

Luxembourg: Oberweis

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New Openings: Don Mueang Airport, Thailand

• Don Mueang - 22m Pax, 70% domestic

• Rapid contract agreement & opening programme

• 17 of 20 units opened within 6 months of the contract award

• Five year deal with the Airport Operator Airports of Thailand

• Mix of international brands, local heroes and SSP propriety brands

• Thai Express, Yentafo, Caffe Ritazza , Burger King and BonChon Chicken

The Pizza Company

Bon Chon Chicken Bon Chon Chicken

Dairy Queen

Good progress on contract wins including:

21SSP presence

Vancouver5 units

Don Mueang20 units

Bergen3 units

Sydney4 units

Newark3 units

Frankfurt9 units

Dusseldorf8 units

Hangzhou2 units

San Francisco2 units

Portland1 unit

Abu Dhabi10 units

Shanghai2 units

Evenes2 units

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Costa Maan Coffee

Union Street Ritazza

• Brands drive LFL sales, new business & retention

• Developing our portfolio with international and local brands

• Further development of own brands and bespoke concepts

• Working with more chefs, local heroes and cutting edge brands

Brand Portfolio continues to develop

Further progress optimising gross margin

• Gross margin improved by 50bps

• Key initiatives making good progress

• Procurement disciplines & recipe rationalisation progressing well

• Progress on waste and loss management

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Area of Focus

Simplify and standardise recipes

Procurement disciplines

Reduce waste and losses

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Gross Margin: Case Study – Purchasing Disciplines

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• Historically compliance to approved products has been low

• Introduced iTrade to provide unit purchasing analysis

• Real time auditing of purchases to approved product lists

• Detailed records of all purchases

• Improved compliance with approved product since introduction

• Phase 2 planned for H2

Gross Margin: Case Study – Seasonal waste UK

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• Collaborative analysis with M&S

• Identification of Christmas seasonal buying patterns

• Travel locations very different to high street

• Product line adjustments to reflect demand

• Delivered planned savings in waste

• Plans to roll out across other seasonal periods

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Prior Year Current Year

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Christmas Period Christmas Period

Encouraging progress on operating efficiency

• Total labour costs 40bps improvement

• Overheads 10bps improvement

• Opportunity to improve service & efficiency

• Systems developments - forecasting & scheduling

• Technology to improve efficiency

• Multi-year programme

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Area of Focus

Employ technology to improve efficiency

Improve forecasting and scheduling

Service optimisation

Improve reporting and accountability

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Operating efficiency: Case Study – Sales forecasting

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• Start point for aligning sales & labour better

• Established current practice

• Detailed analysis of historical sales trends

• Developed new forecasting tool

• Early results suggest significantly improved sales forecasting from c.78% to >90% accuracy

c.78%

>90%

Previous weekly forecast accuracy New weekly forecast accuracyOld forecasting accuracy New forecasting accuracy

Optimising Investment to drive returns

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Historic cost of fit out (£ Sqm)

Current cost of fit out (£ Sqm) Savings %

International Coffee Brand £3,200 £2,800 12%

International Casual Dining £2,700 £2,300 15%

International QSR Brand £3,400 £2,900 15%

• Capex £49.2m

• Maintenance & expansion capex

• Capex driven by timing of renewals and new openings

• Tight central controls on investment

• Investment in resources and tools

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Summary and Outlook

• Strong first half financial performance, ahead of expectations

• LFL sales in line with plan; tougher comparatives in second half

• Net new openings ahead of expectations in H1

• On-going progress on margin and efficiency

• Net margin development strong

• Interim dividend of 2.5p

• Pipeline encouraging – timing difficult to predict

• Focus on delivering value for our shareholders

foodtravelexperts.com

SSP Group plc

Interim Results 2016 – Q&A18 May 2016

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.

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