DUFRY AG Listing of 4,218,750 Registered Shares

The following diagrams show the percentage of sales by product categories of global airport sales in 1995
and 2007.
1997 2007
Source: Generation AB.
Increasing spend per head: Over the past years, spend per head increased steadily according to industry
analyst Verdict. Spend per head in Europe rose from US$ 7.00 in 2005 to US$ 7.80 in 2008 (estimated). In the
Americas, spend per head rose in the same period from US$ 3.90 to US$ 4.80. Asia-Pacific spend per head was
US$ 5.80 in 2005 and after a dip in 2006 and 2007 it recovered to US$ 5.00 in 2008 (estimated). The relative
dip in Asia-Pacific spending, relative to passenger numbers is partly due to the relatively lower spend per head
found in the emerging markets of India and China. The Middle East & Africa spend per head has typically been
more than double the global average between 2005 and 2008 and is expected to continue rising, being
US$ 13.30 in 2008 (estimated), relative to a global spend per head of US$ 6.40 (estimated).
The Role of Airport Authorities
The terms of an airport retailer’s operations, or ‘concessions’, are generally determined by agreement with
the owner of the airport facility, typically the local airport authority. Concessions are generally awarded in a
public tender process or pursuant to private negotiation. The airport authority generally determines the number
and type of concessions to be granted and the terms of the concessions. The terms of individual concessions,
however, may vary considerably from facility to facility.
Concessions may be broken down by type of shop (for example, general duty-free shops selling wines and
spirits, tobacco, perfumes and cosmetics or specialty shops selling specific types of goods) or by physical
location (for example, a specific allocation of space within a terminal or rights to operate an entire terminal
facility). The airport retailer may also obtain the right to allocate the retail space within the facility, or part
thereof, at its discretion. The duration of a concession agreement may vary considerably depending on the
location and type of facility with the industry average being, in Management’s experience, approximately five
years.
An airport authority’s requirements will differ depending upon a number of factors. On the one hand,
airport authorities in less developed markets often need to develop a retail operation from inception, and may
wish to partner with an experienced travel retailer to develop its airport retail operations. Factors such as a
retailer’s knowledge of designing all or a major part of the airport’s retail space and the retailer’s experience
with suppliers are important in selecting a partner for the long-term development of the airport’s retail
operations. On the other hand, in more mature, sophisticated markets, the airport authority may be more focused
on pricing terms awarding concessions based largely on fees.
In return for granting the retailer the right to operate its concession, the airport authority typically receives a
fee 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. Fees may also include a minimum annual
guaranteed amount (MAG), requiring the retailer to make a payment to the airport authority irrespective of
passenger numbers or the revenues generated.
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