DUFRY AG Listing of 4,218,750 Registered Shares

which benefit those competitors in competing for concessions. There is no guarantee that Dufry will be able to
renew its existing concessions or that, if it does renew a concession, it will be on similar payment terms. In
addition, the failure to obtain or renew a concession necessarily means for Dufry, that it will not be able to enter
or continue operating in the market represented by such concession. If it were to fail to renew major concessions
or fail to obtain further concessions, its business, financial condition and results of operations could be
materially adversely affected.
Risks related to Dufry’s business
Dufry may not be able to execute its growth strategy effectively or to integrate successfully any new
concessions or future acquisitions into its business.
Dufry’s principal strategy is to continue to grow by enhancing and expanding its existing facilities and by
seeking new concessions through tenders or private negotiations or through acquisition opportunities. In this
regard, its future growth will depend upon a number of factors, some of which may not be within its control,
such as the timing of any concession or acquisition opportunity, its ability to identify any such opportunities,
structure a competitive proposal, obtain required financing or consummate an offer. As a result, there can be no
assurance that this strategy will be successful.
In addition, Dufry may encounter difficulties integrating expanded or new concessions, or any acquisitions
into its existing operations. Such expansions, new concessions or acquisitions may not achieve anticipated
revenue and earnings growth or synergies and cost savings. A failure to grow successfully may materially
adversely affect Dufry’s business, financial condition and results of operations.
Dufry may not be able to predict accurately or fulfill customer preferences or demand.
Dufry derives an important amount of its revenue from the sale of fashion-related, cosmetic and luxury
products, which are subject to rapidly changing customer tastes. The availability of new products and changes in
customer preferences have made it more difficult to predict sales demand for these types of products accurately.
Dufry’s success depends in part on its ability to effectively predict and respond to quickly changing consumer
demands and preferences, and to translate market trends into appropriate merchandise listings. Additionally, due
to Dufry’s limited sales space relative to other retailers, the selection of salable merchandise is an important
factor in revenue generation. There can be no assurance that Dufry’s product orders will match actual demand.
If Dufry is unable to successfully predict or respond to sales demand or to changing styles or trends or
experience inventory shortfalls on popular merchandise, Dufry’s revenue will be lower, which could have a
material adverse effect on the business, financial condition and results of operations.
Dufry’s success depends on its ability to attract and retain qualified personnel.
The success of Dufry depends, to a significant extent, on the performance and expertise of top management
and other key employees. There is competition for skilled, experienced personnel in the fields in which Dufry
operates and, as a result, the retention of such personnel cannot be guaranteed. Dufry’s continuing ability to
recruit and retain skilled personnel, especially in management functions both in Switzerland and internationally,
will be an important element of the future success of Dufry. The loss of top management or any other key
employees or the failure to attract new highly qualified employees could have a material adverse effect on its
business, financial condition and results of operations.
Dufry is dependent on its local partners.
The Company’s global retail operations are carried on through approximately 115 subsidiaries or Joint
Ventures in 40 countries of operation. The Company’s local partners maintain ownership interests in
approximately one-third of these subsidiaries or Joint Ventures, some of which operate major concessions. The
Company’s participation in each of these operating companies differs from market to market. The Company’s
ability to withdraw funds, including dividends, from its participation in, and to exercise management control
over, such subsidiaries may depend upon the consent of the Company’s local partners. While the precise terms
of each relationship vary, disagreements with its local partners may affect the business, financial condition and
results of operations of Dufry.
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