menzies aviation - march 2012 introduction
TRANSCRIPT
Page 1 Introduction to Menzies Aviation | March 2010
title
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Introduction to Menzies Aviation
March 2012
PEOPLE - PASSION - PERFORMANCE
Page 2 Introduction to Menzies Aviation | March 2010
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Our group
Established 1833, headquartered in Edinburgh Listed on London Stock Exchange (LSE: MNZS) Two distinct operating divisions Success depends on providing safe, efficient, high
quality services
John Menzies plc
Annual turnover £700m Operations at 131 stations across 29 countries 17,000 employees organised into 9 business segments 800,000 turns, 79m passengers & 1.7m tonnes p.a. Ground handling, cargo handling & cargo forwarding
Menzies Aviation
Annual turnover £1.3bn Operations at 16 hub & 23 spoke branches 4,000 employees throughout the UK 5.2m newspapers & 2.4m magazines per day
Menzies Distribution
Page 3 Introduction to Menzies Aviation | March 2010
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Our management team
Aviation board Operational management
Craig Smyth President & MD
Mervyn Walker EVP Operations
Kamesh Peri SVP, India
Gary Morgan SVP, UK & Ireland Cargo
Andy Boyd SVP, UK & Ireland GH
John Redmond SVP, Americas
Forsyth Black SVP, Africa
Alistair Reid SVP, Oceania
Raymond Lo MD, Macau
Kevin Brown SVP, Operations Support
Dirk Goovaerts SVP, Continental Europe
Stephen Koller EVP IT & AMI
Giles Wilson EVP Finance, HR & Legal
Page 4 Introduction to Menzies Aviation | March 2010
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Our network
131 stations
29 countries
9 regions
17,000 employees
Page 5 Introduction to Menzies Aviation | March 2010
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Our services
Check-in & boarding Baggage, ramp handling and de-icing Cleaning Lounges Other passenger services
Ground handling
Build & break Roll-through Trucking (airside & landside) Manpower provision Documentation processing
Cargo handling
World’s largest wholesale freight forwarder Air freight & express Support major passenger carriers as well as
freighters £93m spend in 2011
Cargo forwarding
60% of total revenue
24% of total revenue
16% of total revenue
Page 6 Introduction to Menzies Aviation | March 2010
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Our business profile
Building strength
Turns
People Revenue
Tonnes
UK22%
Cont. Europe
22%
Americas18%
AMI17%
Oceania12%
India,China &Africa
8%UK25%
Cont. Europe
16%
Americas33%
AMI2%
Oceania8%
India,China &Africa15%
UK9%
Cont. Europe
28%
Americas37%
Oceania13%
India,China &Africa
9%UK32%
Cont. Europe
18%
Americas35%
Oceania4%
India,China &Africa11%
Page 7 Introduction to Menzies Aviation | March 2010
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Our customers
Building strength
Our top 20 customers account for 48% of our revenue
Including Air France, KLM & Martinair Including Lufthansa, Swiss, bmi & Austrian Including Virgin Atlantic, Pacific Blue, Virgin America, Virgin Blue
Page 8 Introduction to Menzies Aviation | March 2010
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Our strategic goals
Continued safe & secure operations Competitive cost structure and offer value to customers Build consistency through “SMART” and investment in
industry leading tools to maintain competitive position
Customers getting safe, secure & great service
Promote common culture & values Attract & retain the best people Market leading management (people & processes)
From a team that wants to work for us
Annual EBIT growth 15% by targeting growth from attractive new stations and new markets
EBIT margin +5% by improving operational productivity Post tax ROCE +15% by making selective acquisitions
Delivering sustainable shareholder value growth
To be the world’s Number One aviation ground services provider 2020 vision: >£2bn revenue;
>4% global market share; >250 stations
Page 9 Introduction to Menzies Aviation | March 2010
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Our safety & security
Continual improvement in safety record…
Best in class safety record
… supported by market leading safety & security initiatives
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2004 2005 2006 2007 2008 2009 2010 2011
MA CAT 'A' Accident Rates per 1000 turns
IAHA benchmark (not avail 2010, 2011)
Turns
2011: 796kturns
160% increase in turns handled
53% decrease in aircraft incidents per 1,000 turns
Page 10 Introduction to Menzies Aviation | March 2010
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Our SMART & Eight Pillars
Safety, security & quality
Corporate governance HR Operational
training
Planning GSE & infrastructure
Procedures & service delivery Finance
1 2 3 4
5 6 7 8
Security manualEmergency responseSafety management systemRisk assessment & controlsParticipation & communicationContractors & visitorsIncident reporting & investigationAudits & monitoring
Corporate governance manualCompetition lawAd hoc work & GSE ‘lending’LicencesLease agreementsInsuranceCustomer contractsBusiness risk assessment
RecruitmentEmployment contractsPersonnel recordsInductionProbation review processAbsence managementDisciplinary processAppraisals & succession planning
PolicyTraining matrix & recordsLesson plansAccredited trainers
Validation of seasonal planningReal time planning & trackingTime & attendanceComplianceHoliday planning
GSE suppliers & specificationsAsset listEquipment managementReplacement cycleMaintenance programmeSuitable working environmentRobust communications
ManualsProceduresCommunicationService delivery
ReportingRSMSContract managementPayrollProcurementAsset managementAsset funding
Standard Menzies Audit & Reporting Tool
Page 11 Introduction to Menzies Aviation | March 2010
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Eight Pillars programme Analysis of the self assessments will allow us to target negative trends and areas of improvement across the Network.
S.M.A.R.T :
Continual
Improvement
Page 12 Introduction to Menzies Aviation | March 2010
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Our investment in effective systems Robust infrastructure Stable Technical Platform 250 networked sites – easy to add a location with full access to Menzies applications
2 fully active, high calibre data centres for business continuity
Core financial systems Hyperion performance management
SUN Accounts in all countries
Google based intranet supporting network standards and practices
Driving efficiency RSMSv8 GH flight management control
Airline communications
Controlled reliable billing
Rostering and T&A Labour cost control
Transparency of time management
Innovation Hermes System – Cargo Real-time, SLA aware warehouse management
WebDCS Low cost passenger departure control system
Firstbag BRS Industry leading system
Customer access
Page 13 Introduction to Menzies Aviation | March 2010
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Our examples of how we grow Existing customer at existing airport e.g. Air Canada, FLL and Orlando
1 New customer at existing airport e.g. Kingfisher Hyderabad
2 New airport with existing customers e.g. Viva in Mexico
3
New airport with New Customer e.g. Jetstar in Darwin 4 Bolt on Acquisition
e.g. THS Romania
5
1. Existing customer at existing airport
2. New customer at existing airport
3. New airport with existing customer
4. New airport with new customer
5. Bolt on acquisition
Page 14 Introduction to Menzies Aviation | March 2010
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Our contract win track record On average, net contract gains deliver £30m p.a.
(13) (9)(17)
(7)(16) (17)
(11) (12)
34
54
38 35
56
4146
27
2008 H1 2008 H2 2009 H1 2009 H2 2010 H1 2010 H2 2011 H1 2011 H2
WINS
LOSSES
Page 15 Introduction to Menzies Aviation | March 2010
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Our financial track record
Gross revenue, including JVAs
11*: Latest City forecasts
£148.0m
£260.0m£286.0m
£338.0m£425.0m
£547.0m£549.0m
£631.0m£676.8m
03A 04A 05A 06A 07A 08A 09A 10A 11A 12P 13P 14P
Revenue
£4.0m
£10.4m£13.3m
£16.6m
£20.6m
£14.1m£15.8m
£24.5m
£32.3m
03A 04A 05A 06A 07A 08A 09A 10A 11A 12P 13P 14P
EBIT
2.7%
4.0%4.7% 4.9% 4.8%
2.6%2.9%
3.9%
4.8%
03A 04A 05A 06A 07A 08A 09A 10A 11A 12P 13P 14P
EBIT margin (%)
1.7%
5.9%
9.2% 9.8% 9.3%
4.2%6.0%
10.1%
14.3%
03A 04A 05A 06A 07A 08A 09A 10A 11A 12P 13P 14P
ROCE post-tax (%)
Page 16 Introduction to Menzies Aviation | March 2010
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Our longer term ambition
Growing from strength
Getting the basics right
Growth over the next 10 years :
Global passenger market +4.8%
Cargo market +5.3%
Boeing Current Market Outlook
Shape of Menzies Aviation in 2020:
Revenue >£2bn
40 countries & >250 stations
Growing from strength
Getting the basics right
Menzies 2%
Outsourced 23%
In-house 75%
Available market
2%
2%1%
Others
Handling market 2010 estimate
£37 bn 75%
Source: ACI estimate of handling market (2010), Boeing Current market outlook
Outsourced 38%
In-house 58%
Menzies 4%
4%
Handling market (Potential 2020)
£62bn
Page 17 Introduction to Menzies Aviation | March 2010
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Menzies Aviation
4 New Square Bedfont Lakes
Middlesex United Kingdom
TW14 8HA
T: +44 (0) 208 750 6000 F: +44 (0) 208 750 6001
www.menziesaviation.com | www.johnmenziesplc.com
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