Concessions Owner’s Forum

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Concessions Owner’s Forum

01.24.2017

Welcome Owners! Zenola Campbell, Vice President Concessions

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Agenda

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Registration Check-In/Networking Welcome with Ms. Zenola Campbell DFW Goals/Strategic Plan with Mr. Sean Donohue Clean Working Friendly with Mr. Ken Buchanan Financial Review with Mr. Kevin Lemmons 2016 Highlights with Mr. Michael Baldwin Concessions in 2017 with Ms. Zenola Campbell Q&A and Closing Networking

DFW Goals and Strategic Plan Sean Donohue, CEO DFW Airport

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DFW International Airport Strategic Plan 2016-2020

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Vision Mission

Key Results

We provide an exceptional Airport experience for our customers and connect our community to the world.

Customer Experience

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MASTER THE BASICS

CONNECTING AIRPORT OF CHOICE

CREATE PERSONALIZED CUSTOMER EXPERIENCES

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Customer Experience

Community Engagement

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DRIVE ECONOMIC GROWTH

BROADEN ADVOCACY

EMPLOYEE COMMUNITY INVOLVEMENT

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Community Engagement

Clean, Working, Friendly Ken Buchanan, Executive Vice President Revenue Management

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Mastering the Basics

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Clean Working Friendly • Premises are neat, tidy and dirt-

free

• Custodial enhancements • Reallocate custodial staff

during peak hours to high traffic areas to match planned flows

• Testing 2 new custodial models for improved structure and scope

• Processes, products and facilities are all functional

• Security Checkpoint experience • Collaboration between DFW,

TSA and Airlines • “Optimization Team”

deployed

• All staff are welcoming and happy to assist

• Ensure a great customer experience and delivering Moments of wow

• ACES – Airport Customer Experience Specialists 24/7 Operation – Customer Assistance

• Daily “Playlist” execution • Total team effort with ACES,

AOC, and contractors

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Financial Review Kevin Lemmons, Assistant Vice President Concessions

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FY16 Performance Drivers

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Total gross receipts were up 3%, or $10.1M, driven by passenger growth and spend.

• Passenger growth increased gross receipts by $4.1M

• Spend has increased gross receipts by $2.2M

• With TRIP and Terminal D Master Plan phasing, new business is up $3.8M

$3.1

$4.2

$1.2

$8.5

$1.0

-$2.0

$2.6

$1.6

-$4.0

$0.0

$4.0

$8.0

$12.0

EPAX SS Spend New Business Variance YTD

F&B Retail

Concessions Performance

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DFW Concessions currently exceeds $330 million in sales annually, up 51% vs pre-TRIP levels.

25.0

27.5

30.0

32.5

35.0

$100

$150

$200

$250

$300

$350

$400

FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 Projected

Enpl

anem

ents

Sale

s

Sales Enplanements

Concessions Performance

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FY17 is projected to continue this trend, reaching $350M in total sales.

F&B $142

F&B $150

F&B $166

F&B $171

F&B $186

F&B $203

F&B $211

F&B $219

F&B $233

Retail $79

Retail $88

Retail $101

Retail $104

Retail $110

Retail $111

Retail $113

Retail $114

Retail $117

$

$50

$100

$150

$200

$250

$300

$350

$400

FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17Projected

Concessions Performance

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$308

$-

$50

$100

$150

$200

$250

$300

$350

$400

$450

$500

ATL

LAX

OR

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KS

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FW DE

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MS

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RS

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XP

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BQ YH

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NO

SD

FS

AV TPA

2016 Top 50 Performing North American Airports Total Sales (Excluding DF)

Source: ARN’s 2016 Fact Book

Concessions Performance

20 Source: ARN’s 2016 Fact Book

$324

$-

$100

$200

$300

$400

$500

$600

$700JF

K

LAX

ATL

OR

D

SFO

MIA

YYZ

DFW LA

S

DE

N

EWR

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SEA

IAH

YVR

PHX

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MSP PH

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DTW LG

A

IAD

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BWI

YUL

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TPA

SAN

SLC

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U

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T

ANC

CV

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YHZ

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Mill

ions

2016 Top 50 North American International Airports (Total Sales)

Concessions Performance

21 Source: ARN’s 2016 Fact Book

$150

$170

$190

$210

$230

$250

$270

$290

FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16

In M

illio

ns

Rental Car Gross Receipts

Total Gross Receipts

Rental Car performance continues to show growth, up 5.4% in FY16.

2016 DFW Highlights Michael Baldwin, Assistant Vice President Concessions

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56 New Locations Opened in FY16

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192 Concessionaire Awards Received

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2016 Accomplishments: Industry Recognition

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Airports Council International • Overall Richard A. Griesbach Award of Excellence – Terminal A • Best Retail Program, Large Airport Division, 1st Place – Terminal A • Best Food & Beverage Program, Large Airport Division, 2nd Place – Terminal A Airport Revenue News • Best Concessions Management Team

Coca-Cola Transition – Entertainment Zones – Concept

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Vending Transition (Enclosure Recommendations) Recessed (Alcoves) Free Standing or Niches Blade Signs

Skyline Backwall Airplane Wow - TBD Wow-Entertainment Zone

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JCDecaux Inventory Coming Soon

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Interactive Visitor Kiosks (18) May 15

Charging Stations (13) June 30

Video Walls (7) ABDE: April 30 C7 LED: May 31

Baggage Claim Ceiling Mounts (30) Terminal C: Complete ABDE: Feb 28

iVisions (70) AEDB: April 15 C: May/June

Concessions in 2017 – Focusing on the Basics Zenola Campbell, Vice President Concessions

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Key Results

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Business Performance – 30 New Locations in FY17

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Business Performance Grab

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DFW Airport passengers and employees will be able to view a menu, make purchases and obtain wayfinding through a mobile ordering app which is also integrated into the DFW Airport app.

Business Performance Request for Proposals (RFPs)

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Request for Proposals (RFPs) Time Frame Terminal C & D January 31, 2017 Service Spring 2017 Terminal C Fall 2017

Business Performance – JCDecaux Concessions Opportunities

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Business Performance – JCDecaux Sponsorship Opportunities

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Skylink

Nursing Rooms

Checkpoint Recomposure Areas

Clocks

Rental Car Center

Operational Excellence – FY17 RAC Projects

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Operational Excellence – Focus on basics DFW Customer Satisfaction

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Will be evaluating cleanliness of both food & beverage and retail

Customer Satisfaction – Realignment of Mystery Shop Scores

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Will coincide with the DFW Survey

Customer Satisfaction – Market Basket Compliance

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• Will conduct random audits in addition to requiring annual submissions

• Price value feedback

Customer Satisfaction – Customer Service Awards

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ACDBE Compliance Post-Execution of Lease

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• Documentation and/or proof of all capital contributions by the ACDBE joint venture partner(s) and non-ACDBE joint venture partner(s) including any promissory notes.

• Copies of management committee meeting minutes • Distribution statements of profits and losses

• Annual submittal of reconciliation of Administrative or Management Fees by all parties and

verification and documentation evidencing those fees represent a recovery of costs to the provider.

• Change/No Change in Ownership Affidavit • Federal Tax Return, Schedule K—1 (Form 1065), Partner’s Share of Income, Deductions,

Credits, etc. • Reports and Information are due within ten (10) business days as requested by the Board.

• Sensitive personal information must be redacted prior to submitting.

Safe and Secure

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Food Storage

Evacuation Drills

New Contact system

Food and equipment safety

Community Engagement

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Dallas and Fort Worth Outreaches will continue

Employee Engagement – Engaged Team!

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Concessions Owner’s Forum

01.24.2017