DUFRY AG Listing of 4,218,750 Registered Shares

Newark – Penn Station – NJ Transit awarded Hudson a bus and train station location
Newark – Terminal A –Westfield recommended Hudson to the PANYNJ for operation of 5
newsstands, Papyrus and Taxco Sterling
Newark – Terminal C – Westfield awarded Hudson a bookstore and newsstand. These were existing
stores, but Hudson won a new competitive RFP process
San Jose – Package 2 – Awarded news/gift, book, and specialty retail locations
Vancouver – Domestic Terminal – Awarded a large news/gift location and 6 retail concepts
Vancouver – Domestic Terminal – Awarded 2 specialty retail concepts
Vancouver – Pier Expansion – Awarded a large Hudson News/Euro Café
Recent contract extensions include: Anchorage, Burlington, Calgary, Charleston, JFK Terminal 1,
Manchester, Norfolk, and Vancouver Transborder.
Management also expects growth opportunities to arise for Hudson:
as existing concessions operated by other travel retailers come up for renewal;
as the Hudson Group enters new markets; and
from consolidation in the global travel retail sector through, for example, bolt-on acquisitions.
Gross Margin and Advertising Income
Management views the cost of goods sold and the resulting gross margin as an important measurement of
Hudson’s performance as a retailer. The cost of goods sold at any concession is influenced by the Hudson
Group’s centralized supplier negotiation strategy, which includes the segmentation of suppliers by volume and
active central management of these relationships. Management believes that the recent implementation of new
information technology systems will assist further in gaining gross margin benefits from this strategy by
providing a higher level of centrally available information which will assist negotiation. In addition, the
reorganization of the Hudson Group’s logistics function is expected to deliver further positive gross margin
effects.
The Hudson Group’s pricing policy and product mix in any given location also affects a concession’s gross
margin and, as such, the relationship between product mix, particularly higher margin products, and gross
margin is an important one. To that end, the Hudson Group aims to allocate retail space, as much as possible, to
the more profitable product categories.
Hudson’s relationships with its suppliers also generate advertising income, positively affecting the Hudson
Group’s gross margin. Hudson’s generation of advertising revenue is dependent on its US and Canadian
presence in the major designated market areas (DMA’s) which it may offer advertising opportunities.
Operating Expense Structure
The operating expense structure is important to Hudson’s profitability. After the cost of goods sold,
concession and other periodic fees associated with its retail operations are Hudson’s principal expense.
In return for granting the retailer the right to operate its concession, the airport authority or other travel
facility landlord typically receives a fee that is either fixed or based upon the number of passengers passing
through the airport, the amount of sales at the concession, the floor area of the concession or a combination of
these factors. Certain concession agreements provide for a minimum annual guaranteed payment. Currently, the
majority of Hudson’s concessions provide for a minimum annual guaranteed amount that is either fixed, based
upon the number of passengers using an airport or other travel channel, or based upon current budgets or past
results. As a result, the Hudson Group’s profitability may be adversely affected where revenues decrease at
concessions with a fixed minimum annual guaranteed amount without a corresponding decrease in concession
fees payable.
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