APME FS Strategy v4.7

gatesolutions - Take-off 2027 Overview

  • Focus on value accretion for gategroup's equity story.

  • Key initiatives include executing sustainable and profitable operations, fixing existing inefficiencies, and maintaining a clear market strategy.

Focus Areas for Value Accretion

  • Sustainable & Profitable Execution: Concentrate on profitable operations aligned with sustainable principles.

  • Fix the Base: Address current portfolios for profitability, aiming for >11% EBITDA.

  • Above Average Aviation Growth Strategy: Focus on leveraging growth opportunities within the aviation sector.

  • Portfolio Clean-Up: Improve portfolio profitability and align with growth targets.

Strategic Vision for 2030

  • Target sustainable net cash generation, aiming for 20% of gategroup's revenue.

  • Relevant Size: Comply with projections of 8bn in revenue, aiming towards an engaging market reputation.

  • Focus on creating a separable and self-sustaining aviation business with a significant retail presence.

APME Food Solutions Strategy & Targets

  • Revenue Target: CHF148m by 2027 with >12% EBITDA.

  • Key Differentiators: Emphasize healthy nutrition across service sectors.

  • Target Sectors:

    • Hospitals

    • Aged Care

    • Emergency Services

    • B2B Component Supply

  • Growth Support: M&A and partnerships, particularly in Japan and Korea, will be explored to overcome local constraints.

Global Trends and Success Factors

  • Focus on Personalized Nutrition, Plant-Based Options, Sustainability, and Functional Foods as market demands.

  • Success Factors for Growth: Adequate HR resources, operational capacities, competitive pricing, quality standards, and robust credentials.

Country Review for 2024 & 2025

Oceania

  • Key Customers: NSW Trains, Police Force.

  • Opportunities: Tender submissions in defence and catering sectors.

  • Challenges: Competition and budget constraints affecting revenue streams.

Japan

  • Key Customers: Swissport and hotel partnerships (multiple lounges).

  • Opportunities & Risks: M&A targeting and challenges regarding market competition and operational capacity.

Korea

  • Key Customers: Currently Nil; targeted sectors include OEM supply and canteen services.

  • Opportunities: M&A prospects leading to growth in food solutions.

Hong Kong

  • Key Customers: Significant growth in lounge and hotel catering services.

  • Market Challenges: High competition and profitability concerns.

Macau & Cambodia

  • Targeted to grow service agreements, especially considering new hotel projects and partnerships.

Philippines

  • Revenue targets increased based on the potential expansion in catering services for military and emergency services.

  • Future Risks: Capacity issues expected with rising volumes.

Additional Opportunities

  • Partnerships: Potential engagement with TFS in lounges and military caterings in Australia.

  • Acquisition Pathways: Pursuing shares from Sodexo and Compass in the Middle East.

Strategic Key Takeaways for 2023

  • Target Revenue: CHF250m by 2027, which is based on thorough planning and analysis across sectors.

  • Focus Areas: Ensuring commitments within health-focused service improvements, enhancing partnerships, and evaluating operational models.

Appendix

  • Overview of ongoing projects and specific business partnerships critical for sustaining and growing operations in competitive markets.