ARI VALUES

WHAT’S BEEN HAPPENING

A DAY IN THE LIFEToni McDonald

FOCUS ON CYPRUS

BUSINESS UPDATEFinancial, ARI Ireland, ARI North America & ARI Middle East

NEXT ISSUE

INTRODUCTION AND VALUES WITH ANTOINETTE QUINN HEAD OF HUMAN RESOURCES

‘Inside ARI’ is an initiative borne out of feedback we have received from you, our staff, on keeping in touch with what is happening in the company around the world. We’ve taken on board your feedback, and we aim to give you an insight into other parts of the company, an understanding of people’s roles and give you an appreciation of how all of our contributions, from front of house to back office, contribute to make ARI a success.

Our plan is to issue ‘Inside ARI’ three times a year, and while the editing and publishing will be handled by the Corporate HR Team and Internal Communications, we will be relying on you to tell us your stories, so we can share them with your colleagues around the world.

Ireland

Canada

BarbadosIndiaOman

Qatar

Bahrain

Lebanon

Cyprus

WELCOME

LEBANONBeirut

IRELANDDublin, Cork

CYPRUSLarnaca, Paphos

CANADAMontreal, Ottawa,Winnipeg and Halifax

BARBADOSBridgetown

INDIADelhi

BAHRAINManama

OMANMuscat

QATARDoha

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We work in different countries, different time zones, different jobs, and speak many languages, but we believe that by sharing our experiences, and best practice, we can help each other succeed both individually and collectively. In this issue we are launching the common set of ARI Values which we share with our parent company daa. Our values are the behaviours and actions that define how we work, in many ways they are our DNA.

Having these values as the foundation of how we work together, will help us to make ARI a great place to work, and help us to deliver our purpose which is to ‘create an outstanding shopping experience every time’.

Our vision is to ‘deliver the best shopping experience for our customers and value for our partners’. We believe with your help…. we can do just that.

I hope you enjoy this first edition, and want to thank Adrian Fennell, Linda Nurney and Niamh Hennessy for all their hard work putting it together.

If you would like to share feedback or suggest any future topics please contact Linda Nurney, HR Business Support, lnurney@ari.ie.

“WE CAN HELP EACH OTHER SUCCEED BOTH INDIVIDUALLY AND COLLECTIVELY”

Ireland

Canada

BarbadosIndiaOman

Qatar

Bahrain

Lebanon

CyprusBRILLIANT ATTHE ESSENTIALSWhatever our role, everyday we take pride in doing our job to the highest standards, creating an exceptional environment for our customers and for each other.

TOGETHER WE OVERCOMECHALLENGESWe seek solutions before presenting problems and we support each other when we stand up to take responsibility.

RESPECTING EACHOTHER’S VALUEWe work as a team. All of us have a distinct and valuable role to play; we appreciate each other’s diverse contributions and celebrate success together.

ALWAYSBETTERWe are constantly seeking ways to improve, sharing information and ideas, and always feeling that we have the freedom to ask, ‘how could this be better?’

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MUSCAT DUTY FREE

“WHAT DOES OMAN MEAN TO YOU” was the theme of the recent competition launched by Muscat Duty Free (MDF). The competition was open to schools across the Sultanate of Oman and students were invited to paint a picture based on what their home country meant to them.The competition was organized in association with the Ministry of Education and over 300 entries were received. The eventual winners will see their entries ap pearing on a range of t-shirts that will be available in the destination area of Muscat Duty Free.

DELHI DUTY FREESELLS OVER $500KIN ONE DAY

Congratulations to all the staff at Delhi Duty Free on setting a new highest single day sales total of $509,000 on October 17th, (pre- Diwali). Their previous highest was $476,000 on June 21st 2014.

What’s been

happening

MONTREAL WINS PRESTIGIOUSDESIGN AWARD

ARI’s new International store in Montreal Airport has won a prestigious award at the Grands Prix du Design, an annual contest aimed at showcasing the talent of Quebec-based designers and architects. Our Montreal Duty Free International project won in the Commercial category and great credit is due to our own designers in Ireland and Montreal who spent many long hours working on this project.

Judge’s CitationThe design concept “A souvenir from Montreal” was deemed by the jury to have an efficient strategy, clear signage and an international look complemented by identifying Canadian elements.”

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THE JOY OF GIVINGGOES GLOBAL

Following on from last year’s successful rollout to Canada and Cyprus the promotion has now been extended to Bahrain, Delhi and Muscat. The campaign which won a prestigious Frontier Award (the Duty Free Oscars!) in 2013 for Best Marketing Campaign, highlights the value and convenience of Christmas gift shopping at our airport shops.

CORK CHARITY EVENT

Last December the retail department at Cork Airport teamed up with Swissport to raise money and awareness for a worthy cause. The chosen charity was the Simon Community, who provide aid for homeless people in Ireland.

Before Christmas we organised a spinathon, coffee morning and Christmas jumper day for staff. The day was a great success and we managed to raise a grand total of €2,500 for Simon. All the team really entered into the spirit of the various events helping to create a great atmosphere on the day for passengers and staff alike. A big well done and thank you to all who took part and raised money on the day.

BEIRUT DUTY FREE SELLS OVER $1 MILLION TWO DAYS RUNNING

Beirut Duty Free has achieved another historic sales record following on from their most recent ‘Million Dollar Day” on December 20th last with retail sales again exceeding $1 million on December 23rd and 24th.

Sales on December 23rd topped $1,063,049, which was matched by another bumper day on Christmas Eve when sales totalled $1,013,146.

ARI Beirut General Manager Ciaran O’Neill paid tribute to his team: “This achievement is a real testament to the great team work the staff has shown. They may be exhausted this week but they are still smiling and creating an outstanding shopping experience.”

This is the first time that Beirut Duty Free has ever topped the $1 million mark on two consecutive days. Not content with that, staff at BDF went on to achieve three more $1m sales days in the first couple of weeks of the New Year!

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HOLLYWOOD LEGENDS DAY

Well done to everyone who participated in the Hollywood Legends Day at the Loop, Dublin Airport. We had Charlie Chaplin, Frank Sinatra, Marilyn Monroe, Audrey Hepburn, Bonnie & Clyde and many more “stars” on the day. Everybody looked amazing and really went the extra mile in dressing up and joining in the spirit of the day. The promotion really struck a chord with passengers of all ages, with lots of selfies been taken and all in all a great atmosphere created airside.

The day brought a great sense of fun and teamwork to ARI staff across both terminals and we hope to “Play it again Sam” in the future.Crucially sales on the day far exceeded our expectations with overall transactions up 20% on the previous week, with brands such as Dior, Chanel, YSL and Clarins performing particularly well.

What’s been

happening

CHRISTMAS CHARITY EVENTS

Lynne Courtney, ARI Ireland, organised a number of charity events over the Christmas period. Lynne organised a festive breakfast in Terminal 2 and asked all staff to donate a toy to ‘The Capuchin Day Centre for Homeless People’, instead of the normal Secret Santa event. It was great way of bringing staff together, and had the added benefit of giving to a really worthy cause, with more than 80 gifts donated to children of the charity.

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Working day starts at 08.00.--I get up at 05.40 every day and meet my early morning walking partner at 06.00 for a 3.5 km fast pace walk along Larnaca sea front... exhilarating .... wonderful sunrises.....great start to the day.--Get to office at 08.00.--Check previous days sales and status Re: performance v budget.--Check through emails, answer the more urgent ones.--Check calendar for supplier visits and meetings planned for the day.--Visit CTN (our express shop in departures) check on status of refit and merchandise plan for the new queuing system. Check on this regularly throughout the day.--Walk shop floor, good morning and chat with staff in the different depts.--10.00 Merchandisers update meeting to discuss the progress of the new replenishment system and status of revised stock holding in shop stock rooms.--11.00 More focused category walk around with the Department Manager (one scheduled per day), have discussion on status of issues in their areas,

sales performance, promotions, stocks, staff etc. also discuss progress of departmental and personal objectives.--Phone call to Paphos Operations Manager for general update.--Put kettle on and set up pc for 12.30 conference call with ARI Way - “How to sell more” work shop groups.--General Manager visits the shops and we do a walk around, have a cuppa and discuss business in general.--Back to the office for a thorough check on emails.--Check in with the marketing team and discuss artwork for the new value campaign and planned content for the social media calendar.--Take some office time to look at the next couple of days “to do” list and general planning for meetings/projects (there is always something).--Mini walk around and chat with afternoon shift Supervisors and staff.--In the midst of all the above there are phone calls coming in from other depts, suppliers, Hermes, etc. all of which create more items for the ongoing to do list.--Snap some pics to put on the companyInstagram site and much more :).--Head off around 18.30.--19.30 Some evenings I may be out to dinner with General Managers and visitors from Ireland.--

A DAY IN

THE LIFE

CYPRUS AIRPORT DUTYFREE RETAIL MANAGER TONI MCDONALD DESCRIBES A TYPICAL WORKING DAY

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OVERVIEW

In June 2006 Cyprus Airports Duty Free was created under a joint venture between Aer Rianta Interational, Middle East and Cyprus Trading Corporation (CTC) in a long term contract to bring the airports in Larnaca and Paphos to a new level in terms of quality, choice and customer experience.

Last year ARI purchased the remaining CTC shares in Cyprus Airports Duty Free resulting in ARI now owning 100% of the business. This is a strong vote of confidence in an operation, which has grown and developed into one of the best airport retailers in the world.

Larnaca and Paphos Airports cover a combined area of over 5,000 sqm. The retail space in both airports is subject to ongoing changes and renovations to accommodate new product ranges, promotions and events all designed to meet evolving customer demands.

Recent initiatives include Pop Up Shops and Hot Spots as well as some great promotions such as Living Cyprus, World Cup Promotion and Make Yours a Double.

CHARITY & FUNDRAISING ACTIVITIES

In addition to their hectic day jobs the team in Cyprus also manage to find time to support many local charities.

Recently appointed General Manager Garrett Coogan and members of the management team accepted a challenge to participate in the ALS Ice Bucket Challenge. They raised over €2,000 for the Cyprus Institute of Neurology & Genetics.

During October CTC ARI, Hermes Airports and Estée Lauder also joined forces for Breast Cancer Awareness month.

This was followed by a “Movember” initiative to raise awareness of men’s health and in particular prostate cancer. The majority of male staff from all departments grew moustaches from November 1st. Their donations were matched by the company and a prize giving ceremony was held for the best moustaches where all winners were given a Mo Bro certificate and bottle.

Focus on Cyprus

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ARI CEO Jack MacGowan helping out in Cyprus

Breast Cancer Awareness

ALS Iced Water Challenge

Movember

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FINANCIAL UPDATEANTHONY KENNY, FINANCE DIRECTOR

Congratulations and well done to all our staff in ARI. We had an excellent performance in 2014:

• Profits €5.4 million above budget• Strong performance across all business units International business +7% on budget• Increased shareholding in CTC-ARI Cyprus

I’m confident that by maintaining the momentum from last year’s really strong performance and working hard together, we can achieve and even exceed our 2015 budgets.

ARI IRELAND PAUL NEESON, DIRECTOR RETAIL, ARI IRELAND

We’ve had a good trading year in general helped by rising traffic numbers in Dublin, although Cork remains challenging. Christmas performance was excellent, beating both last year and budget driven in no small measure by our “Oscars” campaign to incentivize staff for excellent performance. A big thank you also to all of our non frontline staff both in Retail and the rest of daa

who helped support the retail business on the shop floor throughout December. While traffic in Cork has been poor for a number of months, our Passenger Average Spend (PAS) is growing, testament to staff’s ability to get passengers to spend more than this time last year. The long awaited arrival of MAC in Cork takes place early in 2015. In Dublin PAS has grown in Terminal 2 and while T1 has dropped back slightly, this has been driven largely by refit works. This year in T1 especially promises to be a special year if current trends continue with the introduction of many new brands and new concepts created by the ARI team, namely Candy Cloud, The Wine Geese Collection and The Design Studio in Beauty.

I am delighted to welcome all our new additions to our Talent Team and also our new Training partners. You are vital to the ongoing success of the business. May 2015 be a fantastic year for you both personally and for ARI Ireland as a team.

BUSINESS

UPDATEANTHONY KENNY PAUL NEESON GERRY CRAWFORD PHILIP ECKLES

Some of the winners at The Oscars Dublin retail enjoying the celebrations at The Oscars night

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ARI MIDDLE EASTPHILIP ECKLESCHIEF EXECUTIVE OFFICER, ARIME

The second half of 2014 in the Middle East region was thankfully very busy with sales boosted by the summer trade that saw sales records being set in

both Beirut and Cyprus in August.  The great sales in all locations have been achieved despite some of the ongoing challenges in the region such as – the Syrian conflict, ISIS and the threat of Ebola – that have limited passenger numbers. Overall though 2014 was another good year for the region with total sales of over $900m.

BEIRUTIn Beirut Duty Free the refurbished Perfumery store that was completed earlier in the year was complemented by the redeveloped food area which looks fantastic and is achieving growth of 20% over last year.

More changes are planned soon with the Electronics area due to be refurbished in early 2015.

CYPRUSIn Cyprus pop up stores by Lacoste and RayBan added to space occupied by CTC-ARI and helped grow sales.

The opening of a new warehouse facility has created a much more efficient warehousing and logistics operation to support the business and saw the closure of three old warehouse locations.

MUSCATThroughout the year Muscat Duty Free faced restrictions on some product categories in the Arrivals store but negotiations with Customs has removed all blockages and sales of all categories are back on track in both shops.

Muscat Duty Free is also working with the Airport Authority to identify additional space that will allow expansion of key product categories and will help boost sales in 2015.

BAHRAINBahrain Duty Free has undergone many changes over the past few months with the relocation of the News store, the Electronics shop and Toy shop to free up space for a new fashion store that opened in November.

Sales so far have been great with very positive passenger feedback and new brands from Fendi, Lanvin, Longchamp, Lacoste, Ralph Lauren, Hackett, St Dupont, and Vilebrequin all making an appearance. Further store developments are now planned for early 2015.

DELHIDelhi Duty Free continues its growth campaign having introduced initiatives as part of the ARI Way. It recently launched its own version of the Middle East’s car draw program that has seen it give away a new BMW car every month for the past 6 months.

DDFS also activated the highly successful scratch card promotion that was developed at Muscat Duty Free.

New retail space is also being developed in Delhi that will come on stream during 2015.

QATARQatar Distribution continued to grow and set new sales records. Plans are underway to identify a new location for the store elsewhere in Qatar, to allow the development of a completely new store and warehouse facility to replace the existing which has limited space for development or expansion.

WHISKEY SALES!Other recent sales achievement, again from Beirut Duty Free saw the sale of two ultra-premium whiskies.  One was a Balvenie 50 year old that sold for $42,000 and the other a Glenfiddich 50 year old that sold for $35,000.  Not to be out done our colleagues at Qatar Distribution sold a Remy Martin Louis XIII for $52,000!

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STAR AWARDSPhotos and interviews from the winners’ trip to Dublin and the awards ceremony.

T1 LAUNCHReport on the refurbished shops and exciting new retail concepts in T1, Dublin Airport

Candy Cloud, Terminal 1 Dublin

ARI NORTH AMERICA GERRY CRAWFORDDIRECTOR RETAIL OPERATIONS

CANADA • Our new International shop in Montreal opened in

March 2013 as part of the overall development of the International Terminal.

• It has allowed us to increase our range with an expanded portfolio of Fragrance and Cosmetics, a new World of Whisky concept and to revamp our fashion and accessories offering.

• Overall trading results for 2014 were +7.5% over the previous year, with significant improvement in Q3 and Q4 following the completion of building works earlier in the year.

• ARI also extended the rollout of The Loop brand in 2014 to the transborder store in Montreal and our stores in Ottawa.

CANADA’S PRIDE • In August and September, we ran a promotion

to showcase Canadian products such as maple syrups, local confectionery and food as well as some Canadian liquors and ice wines.

• Performances of traditional music and dance all contributed to a great atmosphere airside, which was very well received by our airport partners and travelling passengers alike.

BARBADOS• Passenger numbers in 2014 were down -0.5% and

our sales were marginally down -0.6% on budget, due to a reduction in the number and spend from North American holidaymakers.

• The continuing economic uncertainty affects the entire island but we continue to drive our business with new and innovative approaches to categories and customer promotions.

BARBADOS RUM COLLECTION• Rum accounts for 50% of Liquor sales in Barbados

and based on the success of “Uisge Beatha” in Cyprus and “The Irish Whiskey Collection” in Dublin we have developed “The Caribbean Rum Collection.”

• This new concept will feature many new aged West Indian Rums and help us become the destination of choice for visitors wishing to purchase Rum in Barbados.

• We expect to have the renovated shop open for business in late March 2015.

Next issue

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