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ad-hoc disclosure transmitted by euro adhoc with the aim of a Europe-wide
distribution. The issuer is solely responsible for the content of this
announcement.
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23.03.2012
ZURICH, March 23, 2012 -- gategroup, the leading independent global provider of
onboard products and services, today announced updated growth objectives through
2015.
In a presentation to be given today in London at the Company's second Investors
Day, gategroup CEO Andrew Gibson outlined a revenue growth target through 2015
of CHF 600 million driven by existing business development and new business
development. This objective represents revenue growth of 20-25 percent over the
four-year planning period from CHF 2.7 billion in 2011 to CHF 3.3 billion in
2015.
gategroup is also targeting additional potential revenue growth of 10-20 percent
through execution of its mergers, acquisitions and alliances (MA&A) strategy,
which includes consideration of a large transaction or a series of smaller,
accretive bolt-on acquisitions that augment the Group's business strategy.
In aggregate, the combination of existing and new business development combined
with MA&A activity is targeted to deliver 30-45 percent growth over the coming
four years. While this may appear aggressive, Gibson noted that on a constant
currency basis, gategroup achieved revenue growth of 16 percent over the last
two year period.
"gategroup's focus is on balanced, sustainable and profitable growth," he said,
adding that the Company's strategy remains firmly in place to capture growth
within the existing core customers, the airline industry, while cultivating
additional business around gategroup's existing centers of activity and assets.
These efforts will be supported through divisional development initiatives,
Company-wide campaigns, and new ventures, including potential entry into
adjacent markets where gategroup's products and services can naturally be
extended.
Over the planning period, the targeted margin before interest, taxes,
depreciation and amortization (EBITDA) would be between 8.0 to 9.5 percent, with
the potential for an additional 1.5 percentage points through MA&A activity.
Overall, the return on invested capital (ROIC) is targeted to exceed 12 percent
and cash generated from operations before interest and taxes to range from 5 to
7 percent of revenue. The plan assumes: No material change in 2011 foreign
exchange rates; cost structures and contract pricing remain at current levels;
revenues for existing gategroup businesses increase in line with IATA-growth
factors; and revenues will be augmented by new business development and MA&A
actions.
Developing and managing true partnerships with airline customers is the key to
success, Gibson said, noting that gategroup recently realigned its business to
execute more effectively against these defined opportunities.
"We firmly believe that sustainable growth must be delivered through a managed
portfolio of options. We aim to achieve this by capturing organic growth,
leveraging our existing management and physical assets for new business
development, and making sensible accretive acquisitions," Gibson said.
For more details, including the Investor Day presentation, please visit the
gategroup web site at the following address:
http://www.gategroupmember.com/index.php?option=com_content&view=article&id=518&Itemid=228.
About gategroup:
gategroup is the leading independent global provider of products, services and
solutions related to a passenger's onboard experience. gategroup comprises the
following brands: deSter, eGate Solutions, Gate Aviation, Gate Gourmet, Gate
Safe, Harmony, Performa, potmstudios, Pourshins and Supplair. Shares of
Zurich-based gategroup are traded on the SIX Swiss Exchange under the symbol
GATE. Please visit http://www.gategroup.com.
IMPORTANT NOTICE
This publication contains forward-looking statements and other statements that
are not historical facts. The words "believe", "anticipate", "plan", "expect",
"project", "estimate", "predict", "intend", "target", "assume", "may", "will"
"could" and similar expression are intended to identify such forward-looking
statements. Such statements are made on the basis of assumptions and
expectations that we believe to be reasonable as of the date of this publication
but may prove to be erroneous and are subject to a variety of significant
uncertainties that could cause actual results to differ materially from those
expressed in forward-looking statements. Among these factors are changes in
overall economic conditions, changes in demand for our products, changes in the
demand for, or price of, oil, risk of terrorism, war, geopolitical or other
exogenous shocks to the airline sector, risks of increased competition,
manufacturing and product development risks, loss of key customers, changes in
government regulations, foreign and domestic political and legislative risks,
risks associated with foreign operations and foreign currency exchange rates and
controls, strikes, embargoes, weather-related risks and other risks and
uncertainties. We therefore caution investors and prospective investors against
relying on any of these forward-looking statements. We assume no obligation to
update forward-looking statements or to update the reasons for which actual
results could differ materially from those anticipated in such forward-looking
statements, except as required by law.
Further inquiry note:
CONTACT: For media: Carol Reed, creed@gategroup.com, +41-43-812-9128, or John
Bronson, jbronson@gategroup.com, +41-43-812-2048; or For investors/analysts:
Dagmara Robinson, drobinson@gategroup.com, +41-43-812-5496
end of announcement euro adhoc
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issuer: gategroup Holding AG
Balz-Zimmermannstrasse 7
CH-8302 Kloten
phone: +41 43 812 54 96
FAX: +41 43 812 91 19
mail: invest@gategroup.com
WWW: http://www.gategroupmember.com/
sector: Consumer Goods
ISIN: CH0100185955
indexes:
stockmarkets: Hauptsegment: SIX Swiss Exchange
language: English