Duty Free v1

THE GLOBAL
TRAVEL RETAILER
2018
DUFRY GROUP – A LEADING
GLOBAL TRAVEL RETAILER
DUFRY AG (SIX: DUFN;

BM&FBOVESPA: DAGB33)
IS A LEADING GLOBAL
TRAVEL RETAILER OPERATING
OVER 2,200 DUTY-FREE
AND DUTY-PAID SHOPS
IN AIRPORTS, CRUISE
LINES, SEAPORTS, RAILWAY
STATIONS AND DOWNTOWN
TOURIST AREAS.
DUFRY EMPLOYS OVER

29,000 (FTE) PEOPLE. THE
COMPANY, HEADQUARTERED
IN BASEL, SWITZERLAND,
OPERATES IN 64 COUNTRIES
ON ALL FIVE CONTINENTS.
FOCUS
STORY
MEMORABLE CUSTOMER
SHOPPING EXPERIENCE WITH
THE NEW GENERATION STORE:
read the focus story on the digital strategy on page 20 – 55.
3
4
CONTENT
1
WELCOME
Dufry today 8 – 9
Milestones 10 – 11
2
THE GLOBAL TRAVEL RETAILER
Dufry at a glance 14 – 15
Our strategy 16 – 25
3
WHY DUFRY?
Customers 28 – 31
Retail expertise 32 – 47
Channels 48 – 49
Airport authorities & landlords 50 – 51
Suppliers 52 – 53
Our people 54 – 55
Logistics 56
IT Solutions 57
4
LOOKING FORWARD
Global presence 61 – 62
Group Executive Committee 66 – 67
Community engagement 68– 73
Awards 74
5
1
WELCOME
Welcome
DUFRY TODAY
Present in
64
countries
50,000
Operates at over
390
locations
products
Our assortment
of reference items
from vendors globally
Over Over
32,000 2,200
employees shops
Representing over Dufry opens a new

70 different nationalities shop every week
8
Welcome
2.5 billion
Over
1,000 potential customers
suppliers
Over
20 %
market
share
in airport travel retail
Over
Turnover
437,000 m 2
multiplied
of commercial space
by 12 and
EBITDA by
20
since 2003
9
Welcome
MILESTONES
Dufry has more than 60 years of travel retail experience – just one of the factors that has contributed to
the company’s successful position today as leading travel retailer worldwide.
Dufry founded in 1865 The first duty-free Listed on the Swiss Acquisition of one of
in Basel, Switzerland shop at Le Bourget, Stock Exchange the main travel retail
Paris. Dufry was (DUFN) on the 6th operators in the Carib-
the second operator of December bean, based in Puerto
to ever open a Rico, with 23 shops in
duty- free store Puerto Rico and other
Caribbean locations
1865 1952 2005 2007
1948 2004 2006 2008

Introduction of the Advent International Acquisition of major Acquisition of 100 %
duty-free wholesale becomes the majority travel retail operators of Hudson Group (USA),
business shareholder. Dufry in Brazil. Listed on the only national
decides to focus its the stock exchange in newsstand brand in
core business on Sao Paulo (Brazil) and the industry
travel retail with the Luxembourg (BOVESPA;
vision of becoming a DUFB11)
truly global company
10
Welcome
Merger of Dufry Ltd Acquisition of Regstaer Acquisition of Dufry renews an excep-

with Dufry South Group, the leading The Nuance Group tional amount of exist-
America Ltd. Acquisi- travel retail operator in Switzerland ing concession con-
tion of the Colombian in Russia, in a joint tracts and is included
Emeralds International venture in the Swiss Leader
brand, based in the Index, compiled of the
Caribbean 30 largest Swiss Cor-
porations listed on the
SIX Swiss Exchange.
2010 2012 2014 2016
2011 2013 2015

Acquisitions of retail Acquisition of 100 % Dufry acquired World
companies in Argentina, of the leading travel Duty Free. The acquisi-
Uruguay, Ecuador, retailer in Greece, Folli tion strengthens Dufry’s
Martinique and Armenia, Follie. Expansion in position in key European
including 24 duty-free Asia, with new stores markets such as Spain –
shops across 10 airports in China, South Korea,
Taiwan, Bali and
including the Mediterra-
nean region – and the UK;
2017
Sri Lanka North and Latin America Dufry introduces a new retail con-
as well as the Middle East cept the ‘New Generation Store’,
and Asia. featuring extensive and innovative
use of digital applications in order
to increase passenger communica-
tion and drive sales. New Genera-
tion Stores are already in operation
in Melbourne, Madrid, Cancun and
Zurich. Going forward, Dufry plans
to unveil several shops around the
world under this new concept.
11
2
THE
LEADING
TRAVEL
RETAILER
The Global Travel Retailer
DUFRY
AT A GLANCE
TURNOVER GROSS PROFIT

IN MILLIONS OF CHF IN MILLIONS OF CHF MARGIN
8,800 5,000
8,400 4,900 71 %
4,800 70 %
7,800
4,500 69 %
7,200
4,200 68 %
6,600 3,900 67 %
6,000 3,600 66 %
5,400 3,300 65 %
3,000 64 %
4,800
2,700 63 %
4,200
2,400 62 %
3,600 2,100 61 %
3,000 1,800 60 %
2,400 1,500 59 %
1,200 58 %
1,800
900 57 %
1,200
600 56 %
600 300 55 %
0 0 54 %
2013 2014 2015 2016 2017 2013 2014 2015 2016 2017
EBITDA¹ NET EARNINGS

IN MILLIONS OF CHF IN MILLIONS OF CHF
1,060 220
1,020
200
960
900 180
840 160
780
140
720
660 120
600
100
540
480 80
420 60
360
40
300
240 20
180 0
120
- 20
60
0 - 40
2013 2014 2015 2016 2017 2013 2014 2015 2016 2017
¹ EBITDA before other operational result
14
NET SALES BY PRODUCT CATEGORY 2017
5 % OTHER
32 % PERFUMES
2 % LITERATURE & PUBLICATIONS
& COSMETICS
3 % ELECTRONICS
11 % TOBACCO
GOODS
14 % LUXURY
GOODS
NET SALES BY DIVISION 2017
22 % SOUTHERN
21 % NORTH EUROPE AND AFRICA
AMERICA
17 % FOOD,
16 % WINE CONFECTIONERY
& SPIRITS & CATERING
21 % LATIN
AMERICA
26 % UK, CENTRAL AND
EASTERN EUROPE
10 % ASIA, MIDDLE EAST
AND AUSTRALIA
NET SALES BY CHANNEL 2017 NET SALES BY MARKET SECTOR 2017
3 % CRUISE LINERS & SEAPORTS

3 % RAILWAY STATIONS & OTHER
3 % BORDER, DOWNTOWN 38 % DUTY-PAID
& HOTEL SHOPS
91 % AIRPORTS 62 % DUTY-FREE
15
OUR
STRATEGY
CREATING VALUE
THROUGH
PROFITABLE
GROWTH
Over the last decade, Dufry emerged from a small world of travel retail, while providing them with de-
player to the leading position in travel retail, an in- tailed product information – increasingly supported
dustry with a turnover of USD 64 billion in 2016. by the latest digital technology.
Through a combination of organic growth and acqui-
sitions, we have reached a market share of 13 % in Equally important for Dufry is to provide travelers with
travel retail. When looking more specifically at air- a singular sense of place. Our shops will combine the
port retail, which makes up more than 90 % of our well-known assortment of global brands and products
business, we increased our share from 3 % in 2005 to with a special local touch which differentiate our shops
currently over 20 %. worldwide, wherever they may be – at airports, sea-
ports, railway stations or borders – and irrespective
Our leading position is the result of a remarkably rapid of whether they are duty-free or duty-paid. A selec-
expansion. In the last ten years turnover grew on av- tion of our main retail concepts can be found from
erage by 19 % in constant currencies. Our strategy is page 30 through 46 of this report.
founded in our goal to best serve our clients. By de-
veloping and improving our services at shop level and
throughout the value chain, we aim to continuously im- We offer a
prove their shopping experience. One topic, on which
we are currently working particularly hard, is the dig- memorable
italization of our shops, which aims to make shopping
at our stores an experience to be remembered. shopping
Focus on customer experience and retail excellence experience.
generates value for all stakeholders
Dufry, and travel retail in general, are at the center of Demographics play a big role in our business and
three very important and distinct industries: retail, air- changes in customer profiles and preferences can oc-
port and consumer goods industries. Addressing the cur rapidly. For this reason Dufry sets high priority on
different requirements from this position is critical to consumer intelligence, both from internal operational
generate value for all our stakeholders. Nevertheless, information and through external research. We con-
our approach is simple: we focus on best servicing our stantly track customer behavior at our shops and use
customers. our market insights to continuously fine-tune our of-
fering and not only match but exceed the expectations
This clear focus ultimately creates a winning formula of our clients.
for all stakeholders: by providing customers with an
unrivalled shopping experience; by opening the doors To suppliers we offer the biggest access to the ever
for suppliers to a fast growing group of affluent cus- more attractive travel retail, through our more than
tomers; by fully exploring the commercial potential for 2,200 shops in over 390 locations in 64 countries. In
landlords; and ultimately by creating value for Dufry addition to the business that we can generate with the
shareholders. suppliers, our shops offer them an unrivalled world-
wide window display to promote their brands and
For our customers, we aim to create a memorable products to an affluent consumer segment.
shopping experience by constantly improving our
shops and developing our best-in-class retail formats, Dufry works closely with brands to offer customers
and by creating innovative promotions and marketing the right products at the best price, giving special at-
initiatives. Our team of sales representatives will re- tention to promotional campaigns and marketing ini-
ceive travelers with a big smile introducing them to the tiatives at our shops.
16
Landlords get the highest productivity of their retail tive helps to accurately evaluate opportunities, gives
areas, maximizing their revenues when working with us a clear understanding of the local market charac-
Dufry. We offer the full range of retail concepts which teristics and allows to closely collaborate with land-
are adapted and customized to the specific location. lords and other local business partners to effectively
Moreover, Dufry provides access to the most compre- develop new businesses.
hensive portfolio of global and local brands. In a nut-
shell, landlords benefit by optimizing their overall busi-
ness and by offering attractive commercial spaces to Diversification
their passengers.
is a key aspect
Geographic diversification to maximize
opportunities and mitigate risks of our strategy.
Dufry is today not only the market leader in travel re-
tail, but by far also the most diversified industry player, Moreover, being geographically diversified consider-
with operations in 64 countries, on all five continents. ably mitigates risks generated by external impacts in
Geographic diversification is of key importance to our single markets or regions. This diversification is best
strategy for a number of reasons: first, it is the best illustrated by the share any individual concession has
way to benefit from the ever growing number of trav- in the total Group. With the largest concession ac-
elers worldwide; second, as a global organization, we counting for about 7 % of our business, and with the
can efficiently develop new business opportunities; ten biggest ones representing less than 35 % of 2017
third, major global brands can offer their products via sales, Dufry has no significant exposure to single con-
a truly global travel retailer and fourth, it is a very ef- tracts.
fective approach to mitigate risks.
Profitable growth and focus on returns
Our global presence allows us to quickly and better At Dufry, we have a disciplined financial approach in
evaluate new projects nearly everywhere, capitalizing all our new projects, be it organic or acquisitions. We
on the expertise of our local teams. This local perspec- carefully analyze every project or significant invest-
GLOBAL PRESENCE
A full list of locations is available

on pages 60 and 61
17
ment with detailed projections and with a view on min- Despite the consolidation seen in travel retail over the
imum return requirements. This implies a careful as- last years, the industry remains relatively fragmented,
sessment of the original investment needed to build with the top 10 players controlling just over half of the
and set up the store as well as the cost structure and market and the remaining market being covered by
profitability of the business once it is operational. This small and medium sized operators. We expect to be able
culture of focusing on returns and cost control has al- to capitalize through M&A on such small and mid-sized
lowed us to grow our business profitably and to cap- opportunities that may arise in the future, with a focus
ture opportunities in many different markets. on Asia and the Middle East or bolt-on acquisitions that
complement our presence in existing markets.
Further to the steady increase in passenger numbers
over time and our financial discipline, we minimize Offering the best retail experience for international
business risks by implementing a highly variable cost and domestic travelers in multiple channels
structure. These defensive characteristics help to pro- Dufry currently generates about 62 % of its revenues
tect the business in case of downturns, which usually in duty-free and 38 % in duty-paid operations with both
are local, thus providing a solid and resilient profile. sectors continuing to offer substantial growth opportu-
nities. At Dufry, we traditionally have had a strong proj-
High free cash ect pipeline, which has allowed us to grow our retail
space in different channels of both sectors. On the duty-
flow generation. free side, the airport channel is expected to continue to

be the largest and fastest growing part of our business.
In addition, we do see additional potential by further de-
The combination of Dufry’s solid profitability and the veloping the cruise ship business, duty-free border shops
low capital intensity results in high levels of cash gen- and downtown duty-free in selected markets.
eration, particularly for a retailer. With the current size
of the Group and the full implementation of our
new business operating model, we expect to further Passenger growth
improve our cash flow generation capability. Going
forward we will use the cash generated to return it to is a key driver
shareholders as well as to do small or mid-sized ac-
quisitions. in travel retail.
Dufry’s growth path going forward The duty-paid sector has a considerable development
Dufry has achieved an impressive 19 % CAGR turnover potential in airports as well, since the expected growth
growth in the past ten years (on constant exchange of domestic passengers is similar to the one for inter-
rates), to which organic growth contributed 4 % and national travelers. Furthermore, this sector is even
acquisitions 15 %. more fragmented than duty-free, thus offering attrac-
tive new expansion opportunities.
While acquisitions added most to our growth in the
past, we expect organic growth to play a more impor- One of our main initiatives is the international roll-out
tant role going forward. Supported by the growth of of our successful duty-paid retail concepts, Hudson
passenger numbers – the most important driver of our and Dufry Shopping, which have been implemented in
business – we will focus on driving sales through the im- selected markets and which have the potential to be
plementation of best-in-class shop concepts and new deployed further. Hudson is a well-established conve-
digital technologies which will be complemented with nience store concept that has been very successful in
the proven marketing and promotion activities that we North America in the past 30 years and which we have
have used and fine-tuned over the years. Furthermore, deployed in 15 countries so far since 2009. Dufry
we expect to grow through additional retail space, be it Shopping is a duty-paid concept that offers a high
through expanding in existing locations or by winning quality assortment of international brands in an exclu-
new concessions in further airports or new businesses. sive setting, similar to a duty-free travel retail store,
but targeted to domestic passengers. In 2014 we ran
18
a pilot of Dufry Shopping in Brazil where we achieved To maximize the attraction to enter our stores we want
strong first results and was quickly expanded to other to create additional value by providing a superior cus-
7 locations in the country. The newest and first Dufry tomer experience and a more efficient business. Thus
Shopping store outside Brazil was opened in 2017 at the use of digital and online technology will change our
Las Vegas McCarran International Airport. Based on business in three major areas: how we communicate
the positive results achieved so far, we are convinced with our customers, how we sell products and how we
that this concept can also be successful in other mar- organize our processes and the value chain.
kets globally.
Our strategy is supported by strong and resilient Digitalization

industry fundamentals
Travel retail is a fast growing industry driven by ongoing offers us new
growth in number of passengers.
possibilities
Global passenger numbers are currently expected to
grow by at least 6 %, per annum, which translates into and opportunities.
a potential of over 500 million new customers for the
industry. This intrinsic growth perspective is a unique In detail this means that we will firstly be increasing
advantage of travel retail compared to any other lo- personalized communication with customers at home,
cation-based retail channel. Industry specialists ex- during their whole journey, and in particular when they
pect this trend to continue, thus providing a resilient are in the proximity of our shops. Secondly, we will dig-
driver for travel retail going forward. The growth po- italize the shops to increase the conversion rate and
tential is further increased by the development of in- to simplify in-store processes, such as product con-
novative commercial concepts with landlords and sulting, payments, individual promotions etc. Thirdly,
brands alike. Dufry’s ambition is to deliver excellence we will further improve customer services and individ-
in execution while driving change in the way the travel ualize product offers for specific customer profiles.
retail industry operates. We believe that being market See also the Focus Story on our digital strategy on the
leader also means to be at the forefront of this devel- following pages.
opment.
Seizing the opportunities of digitalization LONG-TERM PASSENGER FORECAST

As in many other industries, digitalization will change IN BILLIONS OF PASSENGERS
the way business is done in travel retail. At Dufry, we
are excited about the new possibilities and opportuni- 24
ties that new technologies offer. Therefore digitaliza-

tion is and will be a key element in our strategy going 20
forward.
16
For Dufry, digital technology represents a tool to sup-
port and evolve a strong business model to the next
12
level to continuously improve our offer to the captive
audience we have in travel retail. As customers come
to our stores, while they are waiting to board the plane, 8
train, ship or are enjoying their stay in a casino or ho-

tel environment, they also enjoy strolling through the 4
shops. Therefore sales are generated by impulse deci-
sions and immediate needs, which to a very high ex-
0
tent protect travel retail from direct competition by
2017 2021 2026 2031 2036 2040
online platforms.
Source: ACI 2017 / World Airport Traffic Forecast 2017 – 2040.
19
In 2017, Dufry opened

the first three New Gen-
eration stores in Madrid
(Spain), Melbourne
(Australia) and Cancun
FOCUS (Mexico), followed by

Zurich (Switzerland) in
STORY
early 2018. The new gen-
eration store interacts
with the passengers
travelling through air-
ports according to their
profiles during the day
and communicates with
them in their respective
language, while offering
them their favorite
brands and promotions.
MEMORABLE
CUSTOMER
SHOPPING
EXPERIENCE
WITH THE
NEW GENERA-
TION STORE
20
21
FOCUS
STORY
NEW
GENERATION
STORES
THE ULTIMATE
EXPERIENCE
USING DIGITAL TECHNOLOGY

TO ENGAGE WITH CUSTOMERS
The newest trends in customer be-
havior and shopping habits show
that today’s customers want to en-
joy memorable shopping experi-
ences which increasingly must pro-
vide a sense of individuality and
tailor-made offers.
Staying
connected
with
customers.
To best fulfill these dynamic and Dufry makes use of
several tools to enhance
fast-changing requirements and to the shopping experience
ultimately drive sales, Dufry is accel- inside and beyond the
erating the use of digital technolo- stores, including our
gies in three ways: by increasing the reserve and collect
service, and our loyalty
number of communication touch- program RED by Dufry.
points to stay connected with cus-
tomers during the whole span of
their trip; through the digitalization guage, offers and promotions to In this context Dufry already
of the shops to improve the flexibil- match the passenger profiles ac- opened four new generation stores
ity & targeting of communications to cording to the flight schedules and so far (Madrid, Melbourne, Cancun,
customers; and finally, by increasing the peak arrival / departure times of Zurich), all of them featuring an ex-
online services for customers such specific nationalities and airlines. By tensive use of digital technology
as Reserve & Collect and the loyalty addressing three core principles – to communicate with the changing
program RED by Dufry. communication, entertainment and nationalities and customer pro-
emotion – we can elevate the in- files traveling during the day by
New Generation Store – store experience in our new gener- engaging all five of senses – express-
featuring individualized in-store ation stores by delivering exciting, ing how the brand looks, sounds,
communication engaging and appealing communi- smells, feels and even tastes.
To communicate flexibly and to cations. At the same time, we pro-
adapt our marketing to specific na- vide brand partners with an unri-
tionality groups at airports is a key valled opportunity to feature their
success factor to attract custom- brands in a very unique immersive
ers to the stores. With the use of concept in an exclusive environ-
the digital signage technology, in- ment involving digital messaging
store communication can be varied and display, promotional activities
throughout the day to match lan- and event possibilities.
22
Dufry’s new generation

store elevates the shop-
Staff digitalization as well as travel retail exclusives and
ping experience to a
A sales tablet has been developed best sellers. Last-but-not-least cus- whole new level as the
for use by our in-store specialists tomers are even invited to decide shop dynamically adapts
to help guide customers directly to when to pick up their selection on to customers through
its digital elements. At
the products they want to buy. Pro- departure, or if available, upon re- the same time it offers
viding an enhanced customer ser- turn in the arrival shops. The Dufry more possibilities for
vice on the shop floor, the tablet corporate website www.dufry.com/ suppliers to advertise
their brands.
offers detailed information on our shopping leads the customer di-
assortment in a range of languages. rectly to the individual Reserve &
With the information at the finger- Collect shop homepages where the
tips of both sales person and cus- service is available and offers addi-
tomer, it provides a new tool to tional information. Reserve & Collect
interact with the customer and a is currently available in 47 locations.
real opportunity for up-selling and
cross-selling.
Reserve & Collect Services

around the globe
Dufry has considerably expanded
the number of shops offering Re-
serve & Collect services globally.
Customers can explore individual
store offerings and plan their pur-
chases at leisure by reserving their
favorite products while they are still
at home. Apart from saving time
when being at the airport, they can
benefit from our promotions, learn
about key store events, new launches
23
47 Reserve & Collect is currently

available in 47 locations.
RED by Dufry – unique

customer benefits
Dufry’s loyalty program is tailored
to travelers and offers our custom-
ers attractive benefits such as free
parking, lounge access and fast
track privilege just to name a few.
With the dedicated RED by Dufry
app, customers will receive individ-
ualized offers and promotions
when they are at the airport, allow-
ing them to benefit from special of-
fers and travel related services
such as flight times and allowance
updates for all countries world-
wide. RED by Dufry has its own ded-
icated website www.redbydufry.
com/benefits/ which offers de-
tailed information on our loyalty
Sales representative making use of digital tools to enhance customer service.
program and the amazing customer
benefits it includes.
Magic mirror CONTINUOUS DEVELOPMENT
Individualized Magic mirror is an interactive fit-

ting-room mirror that acts as a per-
As technology development moves
at such a fast pace, we are always
marketing sonal stylist, suggesting matching

accessories to go with the items of
looking for the next technology step
or trend that we can utilize in-store
and clothing being tried on by the shop-

per. This is used for a range of prod-
to engage and entice our customers
to actively shop. We work with mul-
promotions. ucts from shirts or ties to watches,

sunglasses and even make-up.
tiple technology agencies to ensure
we are able to take advantage of
global technology trends, thus stay-
FURTHER ENHANCING Assistant hologram ing at the forefront of innovation.
CUSTOMER EXPERIENCE The digital assistant hologram is a
Dufry has already a long track-re- “virtual assistant”, which can inter-
cord on enhancing customer expe- act with travelers in different lan-
rience with contentainment initia- guages and reinforces the stores’
tives and shop events to make marketing communications via
airport shopping a unique experi- video content that highlights spe-
ence. Among the most successful cific promotional items.
ones we would like to highlight two
examples:
24
One element of Dufry’s

digitalization strategy
is to use digital technol-
ogy in order to enhance
service levels inside
the stores. Sales repre-
sentatives equipped
with tablets are able to
provide detailed infor-
mation about our prod-
uct offering.
DUFRY’S DIGI-
TALIZATION
STRATEGY WILL
MOVE TRAVEL-
LERS SHOPPING
EXPERIENCE TO
ANOTHER LEVEL
25
3
WHY DUFRY?
Why Dufry
CUSTOMERS
BEST PRODUCTS
AND EXCLUSIVE
SERVICES
Next level shopping experience – New Generation We understand the needs of travelers and therefore
Store we make sure that our personnel is well trained and
Dufry’s goal to provide customers with a unique shop- can give our customers the best service when they are
ping experience has reached a new level with the open- at our shops.
ing of the first new generation stores in Madrid, Mel-
bourne, Cancun and Zurich. Customers can experience
a completely new shop design, which changes its ap- We understand
pearance several times during the day. The display is
done in different languages and changing brands to the needs
best fit the customer profile present at the airport at
any given time of the day. of travelers.
Much more than just retail In connection with the launch of the new generation
Our aspiration at Dufry is higher than just selling prod- stores, our employees are supported by digital tablets
ucts. Our well trained and motivated sales represen- to provide customers with extensive product informa-
tatives will help you navigate through a large variety tion in several languages and in the near future also to
of prestigious brands to find the right product for you. offer payment service without need to go to the tills.
28
Why Dufry
Pre-order at home – collect at the airport True global return guarantee

To provide convenience is a priority for Dufry: this is Dufry is the only global travel retailer in the industry
why we want to help our customers well beyond our to offer a true global return guarantee. No matter
shops. Even before they start their trip, travelers can if you purchased something in Melbourne, Bali, St.
pre-order products through the internet and collect Petersburg, Barcelona, São Paulo, Las Vegas or else-
them conveniently at the airport. Our “reserve-&-col- where in any of our shops in the world: if there is
lect” service is already available in 47 locations around a problem with any product that you purchased at a
the world. New locations are constantly added – the Dufry store, we will replace, refund or exchange your
full list is available on our website under: product within 30 days. Dufry’s customer service rep-
www.dufry.com/en/shopping/reserve-collect-service resentatives, who can be reached in several languages
by phone, email or chat, attended over 169,000 cus-
We want to help tomers from 141 countries in 2017. Dufry’s customer

services team and policies guarantee full customer
our customers satisfaction. That service is another example of living

our commitment to an outstanding customer experi-
well beyond ence day-by-day.
our shops.
29
Why Dufry
100
RED by Dufry
Dufry loyalty program RED
by Dufry is already available
in 100 locations.
suppliers when using the space we make available in

RED by Dufry goes beyond the typical loyalty program. our stores for advertising and promotions. When it
It works primarily through a mobile application and becomes to product labeling, we request our suppliers
sides the traditional earning of points the program of- to comply with the regulations of all the locations
fers exclusive advantages such as discounts at Dufry where such product is going to be sold. Given that
stores and airport benefits. Additionally, members of our stores operate in an environment where we serve
the program are identified once they are at the airport many nationalities speaking different languages ev-
through the “RED by Dufry” app and will receive noti- ery day, we are proactively engaged with our indus-
fications on promotions and offers tailored to their try trade associations in finding an off the label so-
preferences. The RED by Dufry program is already live lution.
in close to 100 locations and is continuously expanded
to further locations worldwide. A full list of the loca-
tions, where RED by Dufry is implemented can be Dufry commits to
found here: www.redbydufry.com/benefits
comply with
RED by Dufry is all regulations
already available on advertising
in close to and marketing.
100 locations. Customer Privacy
Management and protection of customers’ private
Dufry’s excellence confirmed by important awards data in those processes that involve handling of client
In 2017, Dufry’s customer focus and retail excellence information is an area of importance for Dufry. As a
has been recognized by different industry partners requirement of customs authorities and for contrac-
again. A complete list of the 2017 awards is displayed tual reasons, the customer’s boarding pass is scanned
on our website www.dufry.com/en/company/our-awards with each duty-free sale transaction to check the pas-
senger’s destination. The information is scanned on a
Customer satisfaction & safety no-name basis and limited to identify nationality and
Customer satisfaction and safety is our first priority. final destination.
As a fundamental first step we ensure that all products
strictly comply with applicable legislation and health
and safety requirements. Dufry complies with legal re- Customer data
quirements at every location we operate and takes a
proactive approach working with governments and reg- protection
ulators to clarify any concerns. In this context, Dufry,
through active membership of the industry’s trade as- is important
sociations, has helped shaping relevant and robust
Codes of Conduct for the travel retail industry (e.g. UK for Dufry.
Code of Conduct on disruptive passengers; UK Code
of Conduct on VAT; ETRC Code of Conduct on Sale of Additionally, in some countries, the company offers
Alcohol; DFWC Code of Conduct on Sale of Alcohol). Reserve & Collect and RED by Dufry services, for
which additional personal information from custom-
Customer Communications ers is requested. In order to protect and ensure that
In its advertising and marketing initiatives, Dufry any customer data is handled correctly, Dufry has a
shows the same responsible stance that it shows in number of systems and security processes in place,
all its other activities. We commit to comply with all including a robust IT security system, a data protec-
regulations and rules in all our advertisements and tion and CCTV policy, specific trainings for employees
published communications in the countries where we dealing with personal information as well as internal
operate. We also expect the same behavior from our procedures which follow relevant laws and regula-
30
Why Dufry
390 Dufry operates

390 locations
in 64 countries
worldwide.
tions. In the case of the above mentioned Reserve &

Collect and RED by Dufry services, the company ap-
plies high security standards to safeguard and protect
personal data and to ensure compliance with the dif-
ferent legal frameworks.
Moreover, the Group also undertakes internal Data

Protection Audits and intrusion tests, while quarterly
meetings are held to discuss and improve the protec-
tion of customers’ personal data. For any customer,
employee or third party who wishes to report a griev-
ance or who has questions regarding Dufry’s data pri-
vacy, there is a specific email address to contact the
company and inquiries are coordinated by the Inter-
nal Audit, Loss Prevention and ERM department.
31
Why Dufry
RETAIL EXPERTISE
CUSTOMER-FOCUSED ACROSS THE OPERATIONS Dufry’s duty-free and duty-paid operations are ex-
tremely diverse, with over 2,200 stores located across
Throughout the world, Dufry tailors its retail environ- airports, cruise lines and ferries, railway stations, city
ments and sales channels to meet customer needs, centres, airlines (in-flight) and on-line.
reflecting passenger profiles and volumes while incor-
porating a true flavour of local culture and history. Departure shops
With a base of more than 2.5 billion potential inter- Ranging from 30 m2 to 3,000 m2, our departure shops
national and domestic customers worldwide, we aim can be located in the airside or landside and offer
to capture each customer’s full potential by working duty-free and duty-paid goods targeting a passenger
with airport authorities and other partners to develop base of international and local shoppers. In each loca-
customised retail concepts and exciting commercial tion, the product assortment, shop floor plan, promo-
areas. tions, pricing policies and operations are differenti-
ated depending on the respective customer profiles
and spending patterns. In response to our customers’
Over habits in departure shops, we have implemented “walk-
2,200
through” stores – a specific design where the entire
passenger flow goes directly through the shop – in
more than thirty locations.
stores
32
Why Dufry
Arrival stores
Arrival stores offer consumers a convenient way of
shopping upon arrival at their destination without
needing to carry items throughout their whole jour-
ney. These stores are highly valued by local travellers
returning home enabling them to shop before leaving
the airport and to avoid carrying extra weight during
their flight. Located both airside and landside, the
stores offer duty paid or duty free goods and, as with
our departure stores, product assortment and layout
are determined by customer profiles and spending
habits.
33
GENERAL
TRAVEL
RETAIL
SHOPS
The general travel retail shop concept is

the most common concept at airports,
as it carries a large selection of different
items and covers the full range of product
categories, such as perfumes & cosmetics,
food & confectionery, wines & spirits,
watches & jewelry, fashion & leather,
tobacco goods, souvenirs, electronics
and other accessories.
These shops are typically located in central

areas with high passenger flow, mostly
in airports, but also in seaports and other
locations. Both departure and arrival
areas can be fitted with this shop concept.
As of December 31, 2017, Dufry operated
over 700 shops under the General Travel
Retail concept. In the duty-free segment,
these shops can be recognized by the
several retail brands in our portfolio,
including Dufry, Nuance, World Duty Free,
and Hellenic Duty Free among others.
In 2017 Dufry opened its first three New

Generation stores in Madrid (Spain),
Melbourne (Australia) and Cancun (Mexico);
followed by one in Zurich (Switzerland)
in early 2018. The new generation store
is an innovative evolution of the general
travel retail shop as it increases the level
of communication with the consumer,
by making use of cutting edge digital tech-
nology. Learn more about Dufry’s new
generation store in our Focus Story on
page 20.
34
35
DUFRY
SHOPPING
Dufry shopping was created with the inten-

tion to offer domestic passengers a
similar shopping experience in a duty-paid
environment as the one offered to inter-
national travelers in a classic duty-free
shop. Thus, this new retail concept is a
general travel retail shop for domestic
passengers, which offers a core category
assortment comparable to a duty-free shop.
At our Dufry Shopping stores, domestic

passengers are presented with the same
retail excellence they normally find in in-
ternational terminals, with a great variety
of products from the most prestigious
brands combined with the best customer
service. There are a number of countries
where domestic travelers account for
the majority of passengers, particularly in
large countries such as China, the United
States and Brazil, thus offering additional
potential to internationalize this concept.
The concept was first introduced in Brazil,

in 2014 and was quickly expanded to other
7 locations in the country. In 2017 the con-
cept debuted in the United States, with
the opening of a Dufry Shopping at Las
Vegas McCarran International Airport.
36
37
BRAND
BOUTIQUES
Brand boutiques enhance the traveler’s

retail experience and allow the creation
of an exciting shopping mall environment.
Dufry is a partner of choice for global
brands to showcase their products in
singular retail spaces and to mirror their
high street image; e.g. Burberry, Bally,
Bvlgary, Carolina Herrera, Chopard,
Coach, Desigual, Dunhill, Emporio Armani,
Ermenegildo Zegna, Etro, GAP, Hermès,
Hugo Boss, Kiehl’s, Lacoste, L’Occitane,
MAC, Marc O’Polo, MCM, Michael Kors,
Montblanc, Pandora, Paul & Shark, Pinko,
Polo Ralph Lauren, Salvatore Ferragamo,
Shang Hai Tang, Shang Xia, Superdry,
Swarovski, Thomas Pink, Tommy Hilfiger,
Tumi, Versace or Victoria’s Secret. As of
December 31, 2017, Dufry operated over
150 Brand Boutiques. Dufry represents
the world’s most prestigious luxury brands.
See the full list of brands on page 53.
To best meet each location’s traveler pro-

file, we design these shops as standalone
boutiques or integrate them as a shop-
in-shop in our general travel retail stores.
Brand boutiques exist in both duty-free
and duty-paid areas.
38
39
CONVENIENCE
STORES
Our Convenience Stores offer a wide as-

sortment of products ranging from soft
drinks, confectionery, packaged food,
travel accessories, electronics, personal
items or souvenirs, to publications such
as newspapers, magazines and books.
Within this concept, we have different

retail brands, which are used according
to the profile of the passengers in a given
location. Hudson is our most important
brand in this universe with an outstanding
recognition from passengers. As “The
Traveler’s Best Friend”, our goal at Hudson
is to provide passengers with anything
they may need during their journey.
Hudson is a very flexible concept for

Dufry, which is successfully operated
at airports in both international and
domestic areas, as well as in other chan-
nels such as railway stations and other
transit locations. Hudson shops are cap-
tive and comprehensive through whim-
sical, color-coded signage to attract
customers’ attention to our four distinct
selling areas: Media, Marketplace, Essen-
tials and Destination.
North America is home of most of our

convenience stores, with over 500 shops;
while over 150 convenience stores are
operated outside North America.
40
41
SPECIALIZED
SHOPS
Specialized stores and theme stores are

shop concepts that offer products from
a variety of different brands belonging
to one specific product category or which
convey a sense of place. We use this con-
cept often for products such as watches
& jewelry, sunglasses, spirits, food or
destination merchandise and in locations
where we see a strong potential for a shop
to carry a broad product range relating
to only one specific theme. As of Decem-
ber 31, 2017, Dufry operated over 650 shops
under the Specialized Shops / Theme
Stores concept.
Examples of the shop concepts names in-

clude “Colombian Emeralds International”,
a dedicated watches & jewelry format
used in the Caribbean market; “Dufry
Do Brasil” for local Brazilian goods; “Kids
Works” with its wide selection of toys,
dolls, games, books and apparel for chil-
dren; or “Tech on the Go” focusing on
the needs of the tech-oriented traveler
offering electronics and accessories.
Further examples are “Sun Catcher” for

sunglasses; “World of Whiskies” for a
selection of finest single malt or blend
whiskies; “Master of Time” for luxury
watches and jewelries; “Sound & Vision”
for multi-brand electronics; “Temptation
& Timebox” for fashion watches and
accessories as well as “Travel Star” for lug-
gage and travel aid products and
finally “Atelier”, a women’s leather acces-
sories store.
These shops can be located in airports,

seaports, on-board cruise liners, as well
as in hotels or downtown locations.
42
43
Why Dufry
A VARIETY OF SPECIALIZED SHOP FORMATS
In order to capture the traveler’s full attention and to

transmit an impression of competence, specialized
shops can come in many different formats and under
a variety of individual names. While in some cases they
almost reflect the category name of the products sold,
in other occasions fantasy names are used to position
the individual formats. Some of our most common for-
mats are presented on the coming pages and are typ-
ically used in several locations across the globe.
Perfume & Cosmetics

Perfume & Cosmetics is one of the largest and most
important categories in travel retail. The key empha-
sis of this category is placed on luxury, super service,
convenience and premium quality. Furthermore, value
for money remains an essential component of our of-
fer in line with customer expectations and the heritage
of duty-free retailing.
We offer a wide range of fragrances from leading

brands to meet every need. Our range includes luxury
and super premium fragrances, contemporary clas-
sics, lifestyle & sport fragrances, famous faces, funky
fragrances and a selection for children. The Perfume
& Cosmetics category is represented by the most
powerful brands, such as Chanel, Christian Dior, Estée
Lauder, Guerlain, Givenchy, Lancôme, Shiseido, SKII,
YSL and many more.
Local Fine Food

More and more consumers are looking for high qual-
ity local food products, either for gifting or personal
consumption. Our Local Fine Food concept is divided
into sweet and savory sections, offering a wide choice
of high quality products from local and regional pro-
ducers.
Whiskey Boutique
Liquor is also one of the most important categories in
travel retail, playing an important role in satisfying
consumer needs and engaging them in the retail envi-
ronment. In our Whiskey boutiques we offer custom-
ers the best selection of products and brands across
the sub-categories – Malt Whisky, Deluxe, Whisky
Blends and Irish Whiskey.
World of Wine
We apply a clear segmentation to our wine offer to
help demystify the category and make wine shopping
a pleasure for customers. Our World of Wine bou-
44
Why Dufry
tiques are easy to navigate, with wines first divided into where customers can find a unique selection of mini-
red and white, and then by respective old world and mum three or more mid to high-end fashion brands
new world countries. Each segment is presented by within the same retail area. The Boutique logo com-
different regions or grapes and includes wines at a bined with a directory showing the available brands
good range of prices. The stores offer some of the makes it an exceptional shop concept.
best-known brands from countries across the world
including France, Italy, Spain, Australia, New Zealand, Attitude
South America and South Africa. Recently, Dufry has Attitude is a multi-brand fashion shop concept adapt-
also succeeded in establishing exclusive cooperation ing the idea of an industrial environment combined
with renowned wineries, in order to offer Dufry-exclu- with urban street inspired art. The shop design is a mix
sive selections to its customers. of raw materials that are complimented with bold col-
ors which create together an exciting visual experi-
Atelier ence for the young attitude shopper.
Atelier is our multi-brand women’s leather accessories
store focused on premium brands, with a strong pres- Sun Catcher and Sunglasses Boutique
ence in international markets. The store concept is Sun Catcher and Sunglasses Boutique are our store
inspired by an artisan’s workshop, reflecting the intrin- concepts for eyewear. Whereas Sun Catcher focus is
sic, timeless value of leather accessories for travelers. on fashion, Sunglasses Boutique offers premium lux-
Atelier offers a range of upmarket brands including ury. Both store brands deliver performance in one en-
Furla, Lancel, Longchamp, Marc by Marc Jacobs, MCM, gaging and cohesive concept. They set out to elevate
Michael Kors, Roeckl, See by Chloe and many more. the entire eyewear category, and reflect our unique
philosophy of putting the consumer shopping experi-
Boutique ence at the heart of our thinking.
Boutique stands for exclusiveness, glamour and so-
phistication. It is a small to medium specialist store,
45
Why Dufry
Temptation & Timebox

Temptation & Timebox are one of the most experien-
tial retail concept stores in the fashion watch and
accessories category, offering an exciting combina-
tion of products, visual merchandising, store design
and in-store entertainment. Temptation & Timebox of-
fer a range of brands including DKNY, Fossil, Michael
Kors, Pandora, Swarovski, Thomas Sabo and many
more.
Master of Time
Master of Time is our latest and most luxurious
multi-brand concept store for watches and jewelry,
presenting the best international brands from the
luxury and premium segments. The assortment
covers timeless iconic styles, best sellers and the
latest innovations from each brand. The brands are
grouped according to product segment and brand
adjacency, from luxury to premium watches and
jewelry. Sound & Vision Enriching Life hosts a rich portfolio
of high-end international electronics brands. In addi-
Master of Time’s portfolio of luxury and premium tion to Apple, Blackberry, Braun, Canon, Casio, Disney,
brands includes Breitling, Bulgari, Carrera y Carrera, and Fujifilm, choices include Hasselblad, HTC, JVC,
Damiani, Dior, Gucci, Montblanc, Omega, Roberto Coin Lamborghini, Leica, LG, Microsoft, Monster Headphones,
and many more. Nikon, Nintendo, Olympus, Osim, Panasonic, Philips,
RIO Beauty, Samsung, Sony, Toshiba and many more.
Travel Star
Our luggage and travel aids, multi-brand concept Tech on the Go focusses on the needs of the tech-
store, Travel Star has been conceived with the traveler oriented travelers offering them electronics and
in mind. It is the number one destination for luggage accessories.
and travel goods, combining innovation, design and
performance. Travel Star goes beyond selling luggage: Providing a sense of place
it ensures reliability and efficiency for travelers for
years to come by providing high quality products from Thinking...
trusted brands that guarantee excellent after-sales An example for this shop type is ‘Thinking España’.
care. Travel Star offers a range of brands including The ‘Thinking’ logo adds the country and it is a shop
Eastpak, Longchamp, PackEasy, Rimowa, Samsonite, concept which conveys a strong sense of place and
Tumi and Victorinox. intends to let customers reviving memories through
a shopping experience with a typically local product
Sound & Vision and Tech on the Go offer at the airport by reminding that it is the last
Sound & Vision Enriching Life is our multi-brand elec- chance to get souvenirs and food from local brands
tronics store which can be found at Hong Kong Inter- and producers before leaving the country.
national Airport. The store offers shoppers the widest
possible variety of state-of-the-art technologies and The Spirit of ...
emphasizes experiential shopping across different Examples for this shop type are ‘Spirit of Kazakhstan’
zones such as cameras & camcorders, mobile phones, or ‘Spirit of Arabia’. The ‘Spirit of’ logo adds the
notebooks, games and accessories. Committed to “en- country and is a shop concept which is a native duty-
riching life”, the store also offers interactive spaces free concept store. The main idea is to offer our
including an “Apple Leisure Station” where customers customers the sense of belonging, through a simple
can experience the brand’s most popular products souvenir and food store that inherits the local
first hand. essence.
46
Why Dufry
47
Why Dufry
CHANNELS
To achieve full potential in every market, Dufry oper- Cruise liners and ferries
ates different channels and develops specialized con- In addition to 19 ferries in Greece, Dufry operates on
cepts which are tailored to engage consumers in any board seventeen cruise liners world-wide, where we
travel environment. have a ‘captive audience’ of consumers for 7 – 14 days.
Therefore, we aim for this particular channel to create
Airports shops that enhance the shopping experience and en-
The most important channel for Dufry is by far the air- courage passenger relationships that continue for the
port business, which has always been the traditional duration of the whole journey. In 2017 Dufry has
location for travel retail. Airports offer a whole array started operations on the Norwegian Joy with nine
of possible concepts and formats which Dufry covers shops covering a retail space of 1,950 m2. The Joy is
with dedicated shop designs. Be it landside or airside, the first Norwegian cruise liner which has been built
be it duty-free or duty-paid, general retail shops or specifically for the Chinese travelers. Across the
sophisticated brand boutiques, Dufry offers airport cruise liners – which cover routes from the USA to
authorities comprehensive support to successfully the Caribbean, Alaska, Europe and Asia as well as
develop retail space and on how to maximize sales and China roundtrips – Dufry operates a total commercial
revenues. space of over 9,000 m2, ranging from 140 m2 to close
to 2,000 m2 per store. These stores offer duty-free
Border shops sales on cruise ship-branded souvenirs, spirits, tobacco,
Dufry operates border shops typically targeting cus- perfumes & cosmetics, food, jewelry & watches, from
tomers, who live within a certain distance of a coun- leading brands across the world.
try border or travel across countries. The border
shops typically offer price advantages generated ei- Railway and underground stations
ther by market price, tax or currency fluctuation dif- Dufry operates convenience stores and newsstands
ferences for a variety of product categories. We cur- in several intercity railway stations in Milan as well as
rently operate a number of shops in several Greek in New York and Washington DC, offering newspapers,
cities and we see further potential for this channel in magazines, books, confectionery and a large range of
Latin American and Asian countries. tobacco products. The latest contract win relates to
the new MTR railway station in Hong Kong in early 2018,
48
Why Dufry
We see downtown, hotels and resorts as a worthwhile

alternative channel and are looking forward to ex-
panding our presence in these areas.
In-flight services
Dufry offers its in-flight sales on board Air Arabia and
TAP Portugal. Developed in collaboration with the air-
lines and taking into account the destination, the in-
which includes arrival and departure duty-fee stores flight catalogue enables passengers to buy duty-free
offering a core category assortment to the over items during the flight, including perfumes and cos-
100,000 travelers using the station every day. metics, spirits, gifts, watches and other items from the
most renowned international brands. We offer a wide
Downtown, hotels and resorts selection of product assortments and are responsible,
Our business has expanded to retail outlets downtown in cooperation with the airline, for confirming all com-
and in hotels, casinos and resorts, allowing us to en- mercial terms as well as negotiating listing fees and
gage the traveling consumer beyond the airport envi- marketing contribution.
ronment. Our hotels include the Venetian & Palazzo
Hotel in Las Vegas, where two shops covering a total Diplomatic shops
of 2,300 m2 provide a luxury shopping environment. These shops specialize in providing embassies and dip-
We also operate retail outlets at all Center Parcs re- lomatic corporations with products at duty-free
sorts in the UK. In city centers, we currently operate prices. They are currently operated in Ghana, Switzer-
more than 92 shops, 28 of which are in hotels located land and Australia.
in popular tourist destinations.
49
Why Dufry
AIRPORT
AUTHORITIES &
LANDLORDS
BENEFITTING FROM
HOLISTIC SHOP &
DESIGN CONCEPTS
Dufry is the partner of choice for airport operators ports of Milan, Madrid, Athens, Phnom Penh, Siem
and other landlords. We strive to create most value for Reap, São Paulo, Brasília, London Heathrow or Zurich
landlords and Dufry alike, through our ability to deliver are a few examples on how Dufry and landlords can
best-in-class retail concepts and our deep under- work together on the structuring of passenger flows,
standing of our customers. The trust of our landlords improving appearance of commercial space and ex-
has allowed Dufry to become the leader in travel re- panding retail offering to considerably increase sales.
tail, currently operating over 2,200 shops in 64 coun-
tries accommodated in airports, seaports, railway sta-
tions, downtown areas, border crossings, cruise liners, First New
hotels and other locations.
Generation
Offering landlords the largest industry experience
Dufry shares a common goal with the facility owners, Stores opened.
which is to maximize returns on the available space and
to create an innovative and attractive shopping expe- Dufry’s New Generation Store – now open
rience for the traveler. Dufry’s extensive expertise in Dufry has recently outlined its new generation store
all regional aspects, its retail know-how and its world- concept, which makes extensive use of the digital
wide presence are core competitive advantages, as is technology to increase the communication with pas-
its comprehensive range of attractive retail concepts sengers at the airport. The digital route allows Dufry
and shop formats to satisfy any need of a landlord in to approach potential customers in an even more per-
both duty-free and duty-paid environments. And in or- sonalized way than ever before. The use of digital tech-
der to understand the latest trends in consumer be- nology allows in-store communication to flexibly adapt
havior, Dufry regularly does detailed consumer re- during the day to the changing nationalities and thus
search. increase the communication impact. The sense of
place of our shop designs, an important aspect for
Partnerships equally benefit travel retailers landlords, is also secured in the new concept, as the
and facility owners format provides for a high degree of customization.
The partnership between facility owners and retailers Dufry knows how to perfectly match these require-
is one of the most critical aspects in travel retail. Our ments with efficient retail concepts to best serve trav-
years of experience in the business show that the elers’ needs and to generate value for landlords and
closer both parties work together and align their com- Dufry alike. First New Generation Stores have already
mon goals, the higher is the value generated. By join- been opened in Madrid, Melbourne, Cancun and Zurich.
ing forces, we can create more attractive and inviting
commercial spaces that maximize travelers’ spend, Successful contract extensions
from the passengers’ arrival at the airport until their secure future business
boarding. In 2017, Dufry renewed a number of existing conces-
sion contracts, some of them well before the previous
Dufry has a long-lasting tradition in working together expiry date, and extending the remaining average life-
with landlords of larger and smaller airports in emerg- time of its portfolio, which is now 8 years. Approxi-
ing and developed markets. We provide landlords with mately 13 % of our sales are based on contracts with a
our expertise on how to best develop retail space and remaining life-time of one to two years; 32 % have a re-
how to maximize revenues, independently from the size maining duration of three to five years; another 29 %
of a given project. Recent examples of refurbishments have between six and nine years left to run, and the
and expansions of our shops confirm the value of co- last 26 % have e remaining duration of ten years or
ordinated strategies. Projects developed at the air- more. On average, Dufry renews every year existing
50
Why Dufry
contracts that generate between 8 % to 10 % of our portfolio of the group included retail space of over
sales, and we add new contracts every year. 437,000 m².
Dufry has a long-term Dufry’s concession portfolio is highly diversified and

well balanced across emerging and mature markets on
concession portfolio. all continents. This considerably reduces risks of be-

ing exposed to single markets and operations; the
largest concession only accounts for about 7 % of
New shops added to first-class concession portfolio turnover; while the biggest 10 concessions represent
In 2017, Dufry opened 170 new shops adding retail less than 35 %.
space of 30,000 m² with space growth across all divi-
sions. At December 31, 2017, the entire concession Disciplined approach focused on investment
returns
Dufry follows a disciplined approach on evaluating new
NET SALES BY CHANNEL 2017 projects and opportunities. They are analyzed individ-
ually on a commercial and financial basis. The many
3 % CRUISE LINERS & SEAPORTS
3 % RAILWAY STATIONS & OTHER aspects of a project are put together including devel-
opment potential and analyzing initial investment re-
3 % BORDER,
DOWNTOWN & quirements as well as the expected development of
HOTEL SHOPS passenger numbers and profile perspectives. Through
a strict evaluation of these criteria and our disciplined
approach to returns, we ensure that our concession
portfolio remains of the highest quality and that each
concession offers attractive returns for the Group.
This methodology is applied for all projects, irrespec-
tive whether we participate in a tender process, engage
in direct negotiations with airport authorities or per-
form acquisitions.
91 % AIRPORTS
51
Why Dufry
SUPPLIERS
BENEFIT FROM
DUFRY’S GLOBAL
RETAIL NETWORK
Dufry is by far the largest travel retail operator world- Centralized procurement and logistics
wide offering suppliers a network of over 390 locations With a focus on generating efficiencies, Dufry has cen-
in 64 countries on 5 continents. Dufry’s retail network tralized its key processes. Through our centralized
offers suppliers a unique opportunity to showcase procurement and logistic functions we have consider-
their brands globally in exclusive environments. We ably simplified the whole supply chain.
operate over 2,200 shops in duty-paid and duty-free
areas with access to domestic and international audi- Our Global Category Managers act as key relation-
ences respectively, and offer our customers both, ship managers for brands and coordinate activities
convenience products and luxury shopping experi- with suppliers. They define brand plans with suppli-
ences. In 2017, over one billion passengers passed ers and negotiate all contractual parameters. Dufry
through locations where Dufry operates shops mak- has also centralized and thus considerably simplified
ing us the perfect ambassador for global brands. the ordering process, by internally aggregating the
orders from the different retail operations and by
Working intensively with brand owners sending a consolidated order to suppliers.
The travel retail industry has a number of elements,
which are interesting to suppliers: travel retail is a fast We have also centralized our logistics organization.
growing industry; it has a captive and affluent audi- The three Dufry distribution centers in Uruguay, Swit-
ence; and it is an important window display. Dufry aims zerland and Hong Kong provide a timely shipping of
to be the preferred partner for global brands, as we goods to our retail operations. The process benefits
offer the largest network of retail operations in travel both Dufry and suppliers, as it allows to order and
retail and also strive for superior execution and cus- ship larger volumes to the distribution centers, thus
tomer service. increasing flexibility to allocate the optimal product
quantity to each country and shop. The concept max-
Based on our know-how we have over time intensified imizes product availability for customers and reduces
the cooperation with our suppliers. We increasingly overall inventory levels.
partner with global brands for more strategic initia-
tives to identify opportunities for marketing cam-
paigns, global promotions or product launches. In this
context, we launched a “brand plan”, which takes a
customized approach to each brand, individually cre-
ating a joint set of goals for the supplier and for Dufry
as well as agreeing on action points. Both parties es-
tablish clear targets and evaluate the effectiveness of
their initiatives together.
In the past two years a partnership with Lindt set the

benchmark on how travel retailers and global brands
can cooperate. Together, a long-term brand develop-
ment had been defined which also includes new Lindt
products to be sold exclusively at Dufry stores. The
partnership has been a tremendous success, exceed-
ing all expectations. Such initiatives, beyond creating
value for Dufry and suppliers, also offer customers
unique shopping experiences emphasizing the appeal
of the travel retail channel.
52
Why Dufry
1,000
BRAND UNIVERSE
Dufry works with over

1,000 of the most renowned
global and local brands.
53
Why Dufry
OUR PEOPLE
We encourage our employees to work together with a strong competitive advantage for Dufry and, together
focus on our customers, our partners and our compa- with our diverse customer base, creates an interest-
ny’s goals every day. We take pride in the profession- ing and truly international working environment.
alism of our teams, their outstanding commitment to
first-class service to our customers, their team spirit Talent Management
and the close collaboration with our business part- Dufry ensures that future and long-term management
ners. This builds a strong base for Dufry’s continuing needs are getting addressed by an optimal balance of
success and makes Dufry a unique place to work and promoting internal high-level personnel and hiring ex-
partner with. ternal talents (for example in new countries where we
start operations). Dufry operates a global, systematic
Dufry offers attractive working environments, inter- integration process to identify high-potential talents
esting tasks, fair and competitive wages, and a general in the organization and develop them toward the key
working atmosphere that can be characterized by mu- roles in our business model.
tual respect and appreciation for each individual. We
foster employee development by supporting a broad Training and professional development
range of in-house as well as external training and de- Dufry carries a strong Learning and Development
velopment opportunities. portfolio of programs, both at the local and global
level. As for global programs, our flagship initiatives
The broad cultural diversity of our over 32,000 are the “Dufry Sales Academy” and “Step Ahead Man-
employees is for us a major success factor. It adds a agement Development Program”, with which we strive
to consistently provide our professionals with the
tools, knowledge and capabilities they need to per-
form at their jobs and develop their full potential at
Dufry.
Dufry sales academy.

The Dufry Sales Academy learning program includes
two sub-programs: Out in Front and Dufry +1 both na-
tional award winning programs. Out in Front was
launched in 2012 and is a dedicated program for our
sales professionals, shop managers and supervisors
in the retail operation. At the start of 2017, Out in Front
was running in 47 countries and has been expanded to
57 countries by year-end 2017.
The Awards programs – recognizing outstanding

performance
Employee recognition is an important way to value
employees’and team achievements. With this is mind,
Dufry created the Dufry One Awards, a global award
recognizinglocations globally, which have taken initia-
tives to actively improve sales, efficiency or perfor-
mance contributing to Dufry’s ambition of continuous
growth and improvement.
54
Why Dufry
Dufry One Awards Employee engagement

– The Performance Award Measuring employee engagement and satisfaction
A global award recognizing locations globally, which through regular surveys is an important tool to rec-
have taken initiatives to actively improve sales, ef- ognize potential for improvements across the Group.
ficiency or performance contributing to Dufry’s am- Our employee surveys are done systematically over
bition of continuous growth and improvement. specifically defined cycles: we ensure that the surveys
– The Customer Service Award always involve a substantial part of our more than
Open to all shops participating in the global Mystery 32,000 employees, and that they are carried out
Shopper program, recognizes individual shop per- across the world, involve all Divisions as well as the
formance across the specific customer impact seg- headquarters; and, that over a certain timespan, all
ments of the Mystery Shop. employees have been involved in a survey. Applying
– The Best Initiative Award this system results in regular surveys focusing on the
A global award to recognize individuals or teams action plans.
that have demonstrated proactivity, taking initiative
to solve a challenge, increase sales or improve cus-
tomer service.
55
Why Dufry
LOGISTICS
As a global retailer, present in over 390 locations in 64

countries, we fully recognise the vital importance of
logistics in getting close to more customers, and en-
suring our day-to-day and long-term success.
Taking logistics to the next level

Our logistics network is composed of global forward-
ers, consolidation platforms and distribution centres
and is designed to assure the highest service level to
our internal clients, the retail operations. In order to
adapt our service to the wide variety of operation sizes
and locations we supply goods through different dis-
tribution channels (direct shipments, deliveries from
our own stock in the distribution centres or via cross
dock), minimizing the ordering cycle lead time and
optimizing the logistics costs.
Our excellent relations with the different logistics

agents working in our supply chain lead to a continu-
ous search for improvements in our logistics pro-
cesses, organization and systems. As an example, we
periodically share a collaborative plan with our sup-
pliers reviewing the demand forecast for the coming
months. This allows them to align the manufacturing
lines improving not only the lead times but also their
fulfilment rates. A thorough logistics plan has been With respect to Global Purchasing, our Global Cate-
defined to ensure our logistics are “best in class” in the gory Managers coordinate the major activities cen-
travel retail environment. trally, facilitating the interactions with suppliers. The
definition of the Brand Plan as well other contractual
In order to follow up on improvements on a weekly parameters are largely coordinated centrally. This also
basis, we globally control the main key performance includes the ordering process itself, where Dufry
indicators at distribution centre and retailer level transmits one consolidated order to suppliers, after
including: current levels and quality of the inventory; having internally aggregated the orders of the individ-
out of stocks; total ordering cycle lead-time, from our ual locations. An approach that considerably simpli-
suppliers to our distribution centres and from the dis- fies the order process and reduces costs overall.
tribution centres to the retailers, as well as the costs
of the total supply chain. A similar concept, which generates additional efficien-
cies for both partners, is applied for logistics. In order
Suppliers benefit from Dufry’s centralized to support our activities in 64 countries and still ben-
purchasing & logistics efit from being a single group, Dufry has set up three
The world-wide geographic footprint and the central- distribution centers: One in Uruguay attending the
ization of global functions generating efficiencies are Americas; one in Switzerland serving Europe (exclud-
two core elements of Dufry’s business model. The cen- ing Spain and the UK), North of Africa and the Middle
tralized purchasing and the logistics functions gener- East and one in Hong Kong assisting Asia and the
ate a variety of benefits for suppliers, which include Pacific Region. Suppliers can thus efficiently ship
not only monetary efficiencies but also ensure supe- larger units to our distribution centers, while Dufry
rior service levels for the end-customer. can better manage individual shop supply, ensuring
improved product availability for customers and thus
ultimately improving sales.
56
Why Dufry
IT SOLUTIONS
Dufry has grown to become a powerful global organ- The company has developed a range of corporate
isation and thus requires a world-class IT infrastruc- applications, adapted to travel retail, which capitalise
ture to support operations in their daily business and on synergies and enhance the performance of current
secure further growth. To this end, a business-driven and new companies within the group. This includes
IT strategy has been established to support Dufry’s Product Information Management, Hyperion Financial
global processes. Management Application, Modus reporting, Global
Warehouse Replenishment Management (GPO), a global
Enhancing our expertise with innovative promotions management tool as well as a global price
IT solutions policy and price analysis application.
Given the business’ rapid growth over the last few
years, having a solid IT structure is crucial. Dufry has A standard ERP (Enterprise Resource Planning) solu-
introduced a number of IT solutions which support the tion adapted to the travel retail industry allows Dufry
business and differentiate it from the competition. to standardise reporting and track day-to-day local
business operations, sales and stock levels. Meanwhile
Our main commercial tool, DCIS (Dufry Commercial the POS project is standardising all software and
Information System), allows – among other things – hardware at the registers. This will both add flexibility
the consolidation of commercial information from all and speed, and enable the implementation of new ini-
operations, irrespective of which IT systems are oper- tiatives generating increased sales and supporting
ated at local level. organic growth, while optimising the customer expe-
rience.
A number of other applications exist to support deci-
sion-making processes in departments across the
organisation. Our commercial team, for example, ben-
efits from tools that help to select the best promotion
in a given location or identify the right pricing policy
for a certain product category.
57
4
LOOKING
FORWARD
OVER 2,200 STORES
Looking forward
GLOBAL PRESENCE
59
Looking forward
OVER
390 LOCATIONS
WORLDWIDE
SOUTHERN EUROPE Ormenio Malaga United Kingdom

AND AFRICA Patmos Murcia Aberdeen
Patras Palma de Mallorca (PMI) Belfast
Algeria Piraeus Reus Birmingham
Algiers Prevelis Santander Bournemouth
Cape Verde Promachonas Santiago de Compostela Bristol
Sal Rhodes Sevilla Cardiff
Santiago Sagiada Tenerife Norte Doncaster
Samos Tenerife Sur East Midlands
Cote d’Ivoire Santorini Valencia Edinburgh
Abidjan Skiathos Elvedon Forest Center Parks
Superfast I, II, XI, XII Turkey Exeter
Egypt Antalya
Symi Folkestone
Borg El Arab Kayseri
Thessaloniki Glasgow Airport
Cairo Kutahya
Zante Glasgow Prestwick
France Kirmington
Italy Leeds
Calais UK, CENTRAL AND
Bergamo Liverpool
Fort-de-France EASTERN EUROPE
Florence London Gatwick
Nice
Genoa Armenia London Heathrow
Pointe-à-Pitre
Milan Central Gyumri London Luton
Toulouse
Milan Linate Yerevan London Southend
Ghana Milan Malpensa Longleat Forest
Accra Naples Bulgaria
Center Parks
Piza Burgas
Manchester
Greece Verona Varna
Newcastle
Aktio
Kenya Finland Sherwood Forest
Alexandroupoli
Nairobi Helsinki Center Parks
Anchialos
Southampton
Araxos Germany
Malta Stansted
Asterion Dusseldorf
Malta Whinfell Forest
Athens Hamburg Center Parks
Blue Galaxy Morocco
Jersey Windsor
Blue Horizon Agadir
Saint Peter Woburn Forest
Blue Star I, II Casablanca
Center Parks
Blue Star Delos Dakhla
Kazakhstan
Blue Star Naxos Essaouira
Astana
Blue Star Paros Fez ASIA, MIDDLE EAST
Chania Marrakech Russia AND AUSTRALIA
Corfu Nador Moscow Domodedovo
Doirani Oujda Australia
Moscow Sheremetyevo
Elyros Rabat Canberra
St Petersburg Pulkovo
Evzonoi Tanger Melbourne
Hellenic Spirit Serbia
Nigeria Cambodia
Heraklion Belgrade
Abuja Phnom Penh
Igoumenitsa Nis
Lagos Siem Reap
Kafalonia
Sweden
Kakavia Spain China
Jönköping
Kalamata Alicante Chengdu
Kalmar
Karpathos Almeria Fuzhou
Karlstad
Kastanies Asturias Hong Kong
Landvetter
Kastelorizo Barcelona Macau
Luleå
Katakolo Bilbao Shanghai
Norrköping
Kavala Fuerteventura Östersund India
Kipoi Gerona Stockholm Arlanda Bangalore
Kos Granada Stockholm Bromma
Kriti Ship Ibiza Indonesia
Sturup
Krystallopigi Jerez Bali
Sundsvall
Limnos La Coruna Umeå
Mertziani Jordan
La Palma (SPC) Visby
Mykonos Amman
Lanzarote
Mytilini Switzerland Aqaba
Las Palmas de
Nefeli Basel-Mulhouse Marka
Gran Canaria (LPA)
Niki Madrid Geneva
Kuwait
Olympic Champion Mahon Zurich
Kuwait City
Singapore Curaçao Uruguay Little Rock
Changi Willemstad Montevideo Los Angeles
Punta del Este Lubbock
South Korea Dominican Republic Manchester Boston
Busan La Romana Cruise Ships Miami
Puerto Plata Carnival Sensation Minneapolis
Sri Lanka Samana Carnival Valor
Colombo Mobile Bates Field
Santiago NCL Dawn Myrtle Beach
United Arab Emirates Santo Domingo NCL Escape Nashville
Sharjah NCL Gem New Orleans
Ecuador NCL Jade
Santiago de Guayaquil New York Empire State
Cruise ships NCL Jewel New York Grand Central
Cruise Ships Joy GM Grenada NCL Pearl New York JFK
Grenada NCL Sky New York LaGuardia
NCL Spirit New York Penn Station
LATIN AMERICA
Honduras NCL Star New York Port Authority
Antigua Roatan NCL Sun New York UN Gift Center
Antigua Pullmantur Horizon Newark
Jamaica
Saint Philip Pullmantur Monarch Newark Liberty
Jamaica
Pullmantur Sovereign Newport News Williamsburg
Argentina Montego Bay
Pullmantur Zenith Norfolk
Buenos Aires Aeroparque
Mexico Oakland
Buenos Aires Ezeiza
Acapulco Okaloosa
Cordoba NORTH AMERICA
Cancun Omaha
Mendoza
Cozumel Canada Ontario
Aruba Guadalajara Calgary Orlando
Oranjestad Guanajuato Edmonton Orlando Sanford
Ixtapa Halifax Philadelphia
Bahamas Los Cabos Toronto Phoenix
Bahamas Mazatlan Vancouver Phoenix Sky Harbour Airport
Great Exuma Mexico City Pittsburgh
Freeport Monterrey USA
Portland
Puerto Vallarta Albuquerque
Barbados Raleigh
San José del Cabo Anchorage
Barbados Richmond
Atlanta
Christ Church Roanoke
Netherlands Atlantic City
St. Michael Santa Ana
Bonaire Baltimore-Washington
Salt Lake City
Birmingham
Bolivia Nicaragua San Antonio
Boston
La Paz Costa Esmeralda Airport San Diego
Burbank
Santa Cruz El Espino San Francisco
Burlington
Guasaule San José
Brazil Charleston
Managua Seattle
Belém Chicago
Peñas Blancas St Louis
Belo Horizonte Chicago Midway
Stewart Newburgh
Brasília Peru Chicago O’Hare
Tampa
Campinas Lima Cincinnati
Tucson International Airport
Cuiabá Cleveland
Puerto Rico Tulsa Airport
Curitiba Corpus Christi
Ponce Washington DC
Fortaleza Dallas Fort Worth
San Juan Washington Dulles
Goiânia Dallas Love Field
Natal Denver
St Kitts & Nevis
Recife Des Moines
St Kitts
Rio de Janeiro Detroit
St Kitts Bradshaw Airport
Rio de Janeiro Galeão Fort Lauderdale Hollywood
Rio de Janeiro St Lucia Fresno
Santos Dumont St Lucia Grand Rapids
Salvador Greater Rochester
São Paulo Congonhas St Maarten Greenville-Spartanburg CHANNELS
São Paulo Guarulhos St Maarten Harrisburg
Vitória Houston Airports
Trinidad & Tobago
Houston George Bush Border, Downtown &
Chile Port of Spain
Houston William P. Hobby Hotel Shops
Santiago de Chile Turks & Caicos Islands Jackson Railway Stations & Other
Grand Turk Las Vegas Hard Rock Cafe Cruise Liners & Ferries
Colombia
Turks & Caicos Islands Las Vegas Mc Carran Seaports
Bogota
Las Vegas Palazzo
62
Looking forward
GLOBAL EXECUTIVE
COMMITTEE
MEMBERS
2
5
3 6
1
1 Andreas Schneiter
2 Jordi Martin-Consuegra
3 Andrea Belardini
4 Gustavo Magalhães Fagundes
5 Pascal C. Duclos
6 Eugenio Andrades
66
Looking forward
9
7 8 10 11 12
7 José Antonio Gea

8 Julián Díaz González
9 Pedro Castro
10 René Riedi
11 Luis Marin
12 Joseph DiDomizio
67
Looking forward
COMMUNITY
ENGAGEMENTS
Dufry has been a sponsor of charitable organizations sources departments from the Divisions Latin Amer-
and partnerships across the world for many years. Our ica and North America launched an online global cam-
commitments are based on our strong belief that we paign to raise funds to help these colleagues. People
can make a difference to the lives of people con- from all our Divisions were able to donate, with Dufry
cerned. The main focus of our sponsorship programs committed to double the donations. The funds raised
is on supporting disadvantaged children, young peo- were used to send help to benefit 16 families in Grand
ple and their families – often some of the weakest Turk and around 200 employees in Puerto Rico, as well
members of our society. We further support charities as many colleagues and families in the US.
that help victims of natural disasters, as well as cul-
tural and sports events. Below are some of our major
sponsoring activities during 2017: We want to give back
Rio de Janeiro, Brazil – Helping to build the future to society – mainly
of young teenagers
Since 1995, Dufry has been sponsoring a social promo- by supporting disad-
tion program in Rio de Janeiro, offering free profes-
sional education to 30 young people every year from vantaged children
communities around Galeão Airport. Every day, these
teenagers go to the program headquarter where they and their families.
participate in various classes and education modules
such as English, computer classes, retail operations, Three different SOS Children’s Villages programs
professional orientation, teamwork, leadership, rules of in Brazil, Mexico and Russia
etiquette, ethics and citizenship. Classes can be at- Our partnership with SOS Children’s Villages also
tended by 16 to 20 year-old female or male teenagers. dates back a long time, as we started our first support
The students also receive free meals, medical and den- back in 2009. The project we sponsored at that time
tal care, life insurance, uniforms, school and educa- was a social center in Igarassu, Brazil, for which Dufry
tional material and transportation assistance. Dufry funded the construction costs and has been support-
also supports the students with their career progres- ing the running costs of the center and training classes
sion, alerting them to any opportunities within Dufry’s ever since. Our two donations in 2017 enabled on one
organization, or with external partners. Employability hand 465 infants, young children and teenagers with
rates usually reach high levels for those teenagers their mothers to benefit from family strengthening
taking part in the program. Since its beginning over programs with child-minding and day care centers, and
22 years ago, the program has benefited over 600 teen- on the other hand financed the yearly family-budgets,
agers in total. medical costs and school fees for 24 children and their
SOS-mothers.
Dufry employees are also extremely proud to be in-
volved in this initiative and regularly participate as vol- Since 2013, Dufry also supports a SOS Children’s Vil-
unteers, as well as acting as mentors to individuals tak- lages social center program in Tehuacán, Mexico. This
ing part. Every year, 60 volunteers from Dufry and other project allows mothers to leave their children in the
partners are involved in this important social action. safety of the SOS child care center during the day
so that they can go to work and earn their own in-
Devastating natural catastrophes in the come. The Dufry contribution in 2017 supported 105
Caribbean, Mexico and the US – A helping hand families and covered the running costs of the social
to our colleagues center, including food, medical assistance as well as
In September 2017, the Caribbean region as well as school and educational staff expenses. From July
some of the Southern states of the US faced a de- 2018 onwards, the children of the SOS Children’s vil-
structive hurricane season which impacted several lage in Tehuacán will be relocated in the social fam-
countries in the area, including places where Dufry op- ilies; but the engagement of the Social Center con-
erates. Despite the material damage, Dufry’s main tinues.
concern was the well-being of employees affected
by the hurricanes. With this in mind, the Human Re-
68
Looking forward
The third program, which started in 2015, supports the Take Me There” provides a necessary free transport
SOS Children’s Villages center in Lavrovo, Russia, a service and ensures that children with cancer will
city located 350 km south of Moscow. When young receive specialist medical treatment, thereby giving
people are ready to move out of the SOS families, they them an opportunity to survive.
can join the SOS Youth Program, which supports them
on their way to a higher education or gives them a start Alzheimer’s Research UK – Increasing information
into vocational training. Dufry’s funding in 2017 sup- about dementia
ported 16 teenagers during one year on their way into By participating in fundraising emails and newsletters
adulthood. of Alzheimer’s Research UK (ARUK) and various other
activities by our World Duty Free employees, we sup-
An additional financing channel in favor of the SOS port ARUK to provide more people with information
Children’s Villages organization are special coin col- about dementia. Dementia is a definition used to de-
lection boxes that Dufry has installed in many shops scribe several symptoms that occur when brain cells
across the world. This supporting channel has been stop working properly and die off. It is important to
operating since 2013 and enables our customers and provide the public with information on how people suf-
business partners to participate in the support of the fering from dementia can get help and what is being
charity’s child-care programs. done to cure it. Aside from Dufry’s general support,
employees did a sky dive event, and raised funds
Hand in Hand for Haiti through Valentines, Easter, Halloween, cake sales and
Dufry has been sponsoring the Student Sponsorship summer activities as well as at the World Alzheimer’s
Program launched by the Hand in Hand for Haiti Foun- Day and during a special Christmas Jumper Day.
dation since 2015. Our 2017 donation again supported
25 students at the school complex in Saint Marc, north “One” water project – sustainable clean water
of Port-au-Prince. The sponsored students receive service for African communities
free trilingual education in French, English and Creole. World Duty Free started to support The One Foundation
Through our donation they are also provided with as early as 2006. The foundation created the bottled wa-
meals, health services, uniforms, school supplies as ter brand “One” in 2005 to support people who do not
well as bus transportation to and from the school. have access to clean drinking water. WDF sells the “One”
brand water bottles, juiced water and jute bags in its UK
Supporting the fight against cancer in Jamaica stores and has thereby been able to raise significant
Dufry employees also helped to raise funds for an ini- funds for The One Foundation over the past years.
tiative against cancer in Jamaica. They participated at
the “Susan Komen Cancer Walk: Race for the Cure” or- The funds raised in 2017 mainly supported projects in
ganized by Susan G. Komen, a nonprofit organization Rwanda and Malawi where safe water and improved hy-
that helps to fund research, education, screening and giene and sanitation facilities for over 6,700 people
treatment of breast cancer. were installed. Whether it is the building of the infra-
structure needed to deliver clean water from pump-
Amelia Project Foundation – When transport ing stations to community tap-stands, the training of
changes everything in Myanmar community members to maintain and repair water
The “Please Take Me There” initiative of Amelia Project pumps themselves or supporting the partnership be-
Foundation offers free transport to children who suf- tween local governments, local communities and util-
fer from cancer and to their family members in Myan- ity companies – these activities are all part of The One
mar. Often located in rural areas, most families don’t Foundation’s support and are changing lives in rural
earn enough to pay for the journeys to Yangon Chil- African communities. In addition to the water projects,
dren’s Hospital, Myanmar, which is the only hospital a school feeding program for over 800 primary school
that can effectively treat a child in Myanmar. Many children in Malawi also profited from the funds raised.
times, their journeys take 12 hours each way on aver-
age, on up to four different modes of transport. How-
ever, there are children who even need to travel for up
to 3 days just to get to the hospital. Dufry is proud to
have started to support this initiative in 2017: “Please
69
Looking forward
1 IGARASSU | BRAZIL
A SOS Children’s Villages project supported
by Dufry since 2009.
2 TEHUACAN | MEXICO
70
Looking forward
Ongoing support to United Nation’s campaign ment has reached over 2,000 participants attending
#YouNeedToKnow drama workshops, theatre visits, joining intergenera-
Following the collaboration with United Nations (UN) tional projects as well as adult creative writing courses.
that started in 2016, Dufry continued to support the
UN in their goal of reaching over 2 billion people be- In 2016 and 2017, WDF has funded two initiatives; the
fore the end of 2017 with their awareness campaign Wythenshawe Community Workshop and the Wythen-
called #YouNeedToKnow. This campaign is part of a shawe School project, both providing opportunities to
UN global effort to promote the importance of the 17 young people and pupils to expand their horizons, build
Sustainable Development Goals (SDGs), and how each new skills, increase their confidence and ultimately
individual could contribute towards a more sustain- give them the tools to help maximize their potential
able and fairer world, by just making small changes in and prepare them for future training and employment.
their day to day lives.
Hudson Group supports U.S. Communities
Building on the successful campaigns carried out in the in Schools and keeps U.S. troops connected
Geneva airport in December 2016 and in London Heath- Hudson Group, Dufry’s Division 5, continued to sup-
row and Zurich airports in early 2017, Dufry supported port Communities in Schools (CIS), the largest and
the UN by activating the #YouNeedToKnow campaign leading dropout prevention group in the United States
in 31 additional airports for an average period of 1.5 in 2017, through its fund raising program. In the U.S.,
months between July and October, giving prominent approximately 1 in 5 children under the age of 18 live
space and visibility to the campaign. Either by showing in poverty, shouldering more than they should have
the campaign in the multiple video screens and tills in to. CIS and its over 160 local affiliates in the U.S. work
the stores, or through interacting with passengers and directly inside schools, building relationships that
engaging them to share the #YouNeedToKnow hashtag empower students to succeed inside and outside the
in their social media, Dufry reached over 52 million pas- classroom. The organization works with nearly 1.5 mil-
sengers during these activations, generated additional lion students and is proud on its success rate: 99 % of
media coverage and gave a push to the UN campaign in their students stayed in school and 91 % of their se-
the different social media platforms. niors graduated or received a GED (General Education
Development credential). Funds for the CIS organiza-
Moreover, the UN and Dufry, in collaboration with tion are collected in Hudson and Hudson News stores
travel retail’s most influential publication, The Moodie located in airports, bus and rail terminals with coun-
Davitt Report, took the campaign to the most relevant ter-top boxes at registers.
industry events – including the TFWA World Exhibition
and Conference in Cannes and the Trinity Forum – in- Hudson Group continues to partner with local chari-
spiring other industry members to support the cam- ties in North America to provide support and engage-
paign and resulting in other industry players inter- ment in the community, including the USO (United Ser-
ested in joining forces with the UN. vice Organizations). Through local connections with
USO chapters across the U.S., Hudson Group and its
The support to this United Nations campaign will con- customers have helped keep America’s military ser-
tinue in 2018, and we are currently working with both vice members connected to family and friends.
the UN and airport operators in joint actions in over
60 locations. In 2017, Hudson Group reached a new record milestone
in customer donations of phone cards to the military,
Manchester HOME project sold at Hudson Booksellers, Hudson News, and Hud-
HOME is Manchester’s newest cultural organization son airport store locations. The pre-activated AT&T
founded by the merger of two of the city’s long-stand- cards allow troops to access the Internet and call
ing arts venues – Cornerhouse (established in 1985) and home to their families and friends. The phone cards
the Library Theatre Company (founded 1952), which has work from landlines and payphones across the globe,
been supported by World Duty Free ever since 2003 in including war zone locations.
form of a community partnership for the Wythenshawe
area in the South of Manchester. To date the engage-
71
Looking forward
Further donations and cultural events In Australia, Dufry is a supporter of the Diamond Din-
Dufry is supporting many other social projects with ner for the Children’s Cancer Institute. This fund rais-
local activities in countries where it operates. In ing event brought together over 250 high-net worth
Greece, we continued the long-term partnership with individuals, celebrities and industry leaders who sup-
the Hellenic Red Cross, supporting their refugees pro- port the work of this institute that is wholly dedicated
gram by donating products in stock to the organiza- to childhood cancer. The company also supported the
tion. Furthermore, we continued to support the Spe- Royal Flying Doctor, which is one of the largest and
cial Olympics Hellas, the largest sports and educational most comprehensive aeromedical organizations in the
organization for people with intellectual disabilities in world. Using the latest in aviation, medical and com-
Greece, and numerous local community events orga- munications technology, they deliver extensive pri-
nized by municipalities, embassies or local authorities. mary health care and 24-hour emergency service to
those who live, work and travel throughout Australia.
In Spain, Dufry went into an agreement with Aldeas In- In Korea, we support through different donations lo-
fantiles (SOS Children’s Villages) that for every pack cal students for high school scholarship and English
of Carremi Turron cakes sold in our Spanish stores, a teaching classes for low-income children as well as
substantial portion of these sales will go to Aldeas Korean teaching to multicultural families.
Infantiles. In Turkey, the team attended a Charity Run
with 39 employees. The aim was to support disadvan- The annual sponsorship of cultural events was also
taged children with their education and the Dufry continued in 2017: Many local community events such
team managed to collect funds for one year’s educa- as the Swiss Indoors tennis tournament in Basel or the
tion of 14 children. Furthermore, Dufry supported Baloîse Session, a three week music festival in Swit-
TEMA, an organization that enables reforestation and zerland, as well as the Madrid Open tennis tournament
protection of natural habitats in Turkey. received our support.
72
Looking forward
3 IGARASSU | BRAZIL
4
UNITED NATIONS | UK, SWITZERLAND
Dufry joined forces with UNITED NATIONS in
an information campaign at Heathrow airport
in London and at the Geneva airport in 2017; among
many others.
Our broad and worldwide network of travel retail

shops offers another unique opportunity to support
social programs: In many shops we maintain donation
boxes and encourage our customers to participate in
supporting specific local programs or victims of nat-
ural disasters. The amounts collected every year are
always surprising and we thank all participants for
their generous donations. The charities receiving them
have been welcoming them greatly.
73
Looking forward
AWARDS
RECOGNIZING
EXCELLENCE IN
TRAVEL RETAIL
2017 AWARDS Travel Retailer of the Year
Dufry constantly strives for operational and business The Edinburgh and Glasgow World of Whiskies stores
excellence at internal and external level. As in previ- have won the Icons of Whisky ‘Travel Retailer of the
ous years this has been recognized by the outside Year’ Awards for the second year running, in the
world and Dufry is delighted and proud to have re- Scotland category, as well as the Rest of the World
ceived a variety of awards, which reflect its compe- ‘Travel Retailer of the Year’ for its store with the
tence as the leader in travel retail worldwide. same name at London Heathrow airport.
DFNI Products Awards Top Workplaces

The Bulgari stores on the Norwegian Joy and at Hel- Dufry America has been named one of South Florida’s
sinki Airport won respectively ‘Best Jewelry Store’ Top Workplaces for 2017 – the third year in succession
and ‘Best Jewelry & Watches Marketing Campaign’ it has been included in the employee-influenced rank-
categories at DFNI Products Awards 2017. Dufry’s ings.
stores were highly recommended in three other cate-
gories. The pre-launch of Lindt’s Bijoux Collection, in The full list of awards won is available at:
partnership with Zurich Airport, was one of the final- www.dufry.com/en/company/our-awards
ists in the ‘Best Confectionary Campaign’ category.
The new store at Poles Caraibe Airport in Guadeloupe
was recommended in the ‘Best Liquor New Store cat-
egory’ for its rum offer at the location, with more than
250 different types of local rums. The Dior pop up
store at Guarulhos International Airport in São Paulo,
Brazil, was one of the favorites in the ‘Best Beauty
New Promotion’ category.
Frontier Awards
The award was achieved for the campaign “Rogue
One: A Star Wars Story”, which took place at London
Gatwick’s North and South terminals. The campaign
aimed to drive high levels of customer engagement
with innovative and imaginative activations on airport
and across social media. Characters from the film in-
cluding storm troopers and Death Troopers appeared
in store and interacted with customers. This presti-
gious award reflects the extent to which World Duty
Free succeeded in creating a world class experiential
marketing campaign.
Sunglasses Awards
The award achieved in the category “Best Marketing
Activity” in the annual Sunglasses Awards recognizes
the contentainment activity at three London airports.
In London Stansted and London Heathrow the first
cross category promotion supporting Calvin Klein
sunglasses. Another activity was carried out in Lon-
don Gatwick South and once again, in London Heath-
row Terminal 5,
74
Publisher Dufry AG, Basel
Concept Dufry AG, Basel
Design + Production NeidhartSchön AG, Zürich
Print Neidhart + Schön Print AG, Zürich
© Dufry AG 2018
Going
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THE GLOBAL

DUFRY AG (SIX: DUFN;

DUFRY EMPLOYS OVER

Representing over Dufry opens a new

1,000 potential customers

1865 1952 2005 2007

1948 2004 2006 2008

Merger of Dufry Ltd Acquisition of Regstaer Acquisition of Dufry renews an excep-

2010 2012 2014 2016

2011 2013 2015

TURNOVER GROSS PROFIT

EBITDA¹ NET EARNINGS

NET SALES BY PRODUCT CATEGORY 2017

NET SALES BY DIVISION 2017

NET SALES BY CHANNEL 2017 NET SALES BY MARKET SECTOR 2017

3 % CRUISE LINERS & SEAPORTS

A full list of locations is available

flow generation. free side, the airport channel is expected to continue to

Our strategy is supported by strong and resilient Digitalization

Seizing the opportunities of digitalization LONG-TERM PASSENGER FORECAST

ties that new technologies offer. Therefore digitaliza-

train, ship or are enjoying their stay in a casino or ho-

In 2017, Dufry opened

FOCUS (Mexico), followed by

USING DIGITAL TECHNOLOGY

Dufry’s new generation

Reserve & Collect Services

47 Reserve & Collect is currently

RED by Dufry – unique

Individualized Magic mirror is an interactive fit-

marketing sonal stylist, suggesting matching

and clothing being tried on by the shop-

promotions. ucts from shirts or ties to watches,

One element of Dufry’s

Pre-order at home – collect at the airport True global return guarantee

We want to help tomers from 141 countries in 2017. Dufry’s customer

our customers satisfaction. That service is another example of living

well beyond ence day-by-day.

suppliers when using the space we make available in

390 Dufry operates

tions. In the case of the above mentioned Reserve &

Moreover, the Group also undertakes internal Data

The general travel retail shop concept is

These shops are typically located in central

In 2017 Dufry opened its first three New

Dufry shopping was created with the inten-

At our Dufry Shopping stores, domestic

The concept was first introduced in Brazil,

Brand boutiques enhance the traveler’s

To best meet each location’s traveler pro-

Our Convenience Stores offer a wide as-

Within this concept, we have different

Hudson is a very flexible concept for

North America is home of most of our

Specialized stores and theme stores are

Examples of the shop concepts names in-

Further examples are “Sun Catcher” for

These shops can be located in airports,

A VARIETY OF SPECIALIZED SHOP FORMATS

In order to capture the traveler’s full attention and to