Analyst Presentation FY 2018

Transcription

1 March 19, 2019 I Frankfurt Main r. Stefan Schulte I CEO r. Matthias Zieschang I CFO

2 isclaimer This document has been prepared by Fraport solely for use in this presentation. The information contained in this document has not been independently verified. No representation or warranty whether express or implied is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained therein. Neither the company nor any of its affiliates, advisors or representatives shall have any liability whatsoever (in negligence or otherwise) for any loss arising from any use of this document or its content or otherwise arising in connection with this document. This document does not constitute an offer or invitation to purchase or subscribe for any shares and neither this document nor any part of it shall form the basis of, or be relied upon in connection with, any contract or commitment whatsoever. This document contains forward-looking statements that are based on current estimates and assumptions made by the management of Fraport to the best of its knowledge. Such forward-looking statements are subject to risks and uncertainties, the non-occurrence or occurrence of which could cause the actual results including the financial condition and profitability of Fraport to differ materially from or be more negative than those expressed or implied by such forward-looking statements. This also applies to the forward looking estimates and forecasts derived from third-party studies. Consequently, neither the company nor its management can give any assurance regarding the future accuracy of the opinions set forth in this document or the actual occurrence of the predicted developments. By accepting this document, you agree with the foregoing. 2

3 Agenda 1 Financial Highlights 5 etailed Financials 2 Traffic Performances 6 3 Business Update Outlook

4 Financial Highlights Increasing Revenue and Results! mil. Revenue EBITA Group result before minorities 3,478 2,935 3, , ,003 1, FY 2017 FY 2018 FY 2017 FY 2018 FY 2017 FY 2018 Underlying Revenue EUR+226 mil. thanks to organic Traffic Growth and new Operations in Brazil Strong EBITA Improvement of EUR+101 mil. or +10% without consideration of Hanover isposal Underlying Group Result +19% to EUR 430 mil. without Hanover Reported EPS at EUR 5.13, underlying EPS at EUR 4.30 FY 2018 PS Proposal at EUR 2 = an increase of 1/3 compared to 2017 level 4 1 Revenue excluding IFRIC 12

5 Agenda 1 Financial Highlights 5 etailed Financials 2 Traffic Performances 6 3 Business Update Outlook

6 Traffic Performances Strong 2018 Traffic, 2M 19 Traffic solid in low Season Airport operations Fraport Share FEB 2019 previous year YT 2019 previous year FY 2018 previous year Frankfurt 100% 4, % 9, % 69, % Brasil 100% 1, % 2, % 14, % Slovenija 100% % % 1, % Greek regionals 73.4% % 1, % 29, % Lima 70.01% 1, % 3, % 22, % Twin Star 60% % % 5, % Antalya 51% % 1, % 32, % St. Petersburg 25% 1, % 2, % 18, % Xi an 24.5% 3, % 7, % 44, % 6

7 Agenda 1 Financial Highlights 5 etailed Financials 2 Traffic Performances 6 3 Business Update Outlook

8 Business Update Successful start of Brazilian Concessions % passenger growth across 2 airports Fortaleza benefiting from AirFrance/KLM and GOL co-operation Headquarters in Porto Alegre fully equipped Meanwhile c.350 Employees hired Project finance for capex requirements in Place 2018 financials: 1 EUR 90.9mn Revenue EUR 40.2mn EBITA EUR 12.5mn Result Mid-single digit passenger growth expected First capex requirements to be ready by September Broadly flat EBITA expected as a result of Retail areas refurbishment and traffic growth² 8 1 Figures based on IFRS Group accounting, revenue w/o IFRIC 12 ² EBITA assumption at constant currencies

9 Business Update Lima Vibrant 7.3% passenger growth in 2018 to new record high of 22.1 mil. Awarding of Runway construction expected H Awarding of Terminal construction expected end

10 Business Update First 3 Greek Airports Completed! Mandatory capex at the airports of Chania, Kavala and Zakynthos completed and certified by Greek authorities Airport charges at those 3 airports to be lifted as of April 2019 Further construction and refurbishment works progressing on time Airports will be stepwise completed until 2021 Incentive scheme to attract new traffic in Winter / off Season also with good success Chania (Crete) Kavala Zakynthos 10

11 Business Update Frankfurt 2019 Summer Season Movements expected to grow by +1% to +1.5% Seat capacities expected to grow by +1% to +2% Movements and seat capacity growth evenly spread between s/h and l/h 11

12 Business Update Frankfurt Security Progress New security equipment successfully passed German authorities test run New building currently being constructed next to Terminal 1 Concourse A to be equipped with 7 of the new security lanes Building to be ready for the high Summer Season Ongoing training and hiring of security staff Further re-organization of security process targeted 12

13 Business Update Frankfurt Terminal 3 Construction of Piers G, H & J now awarded Foundation ceremony taking place on April 29 th First element of T3: Pier G to be completed end nd stage of Pier G will be constructed immediately afterwards Piers H, J & full Pier G to be completed end 2023 Budget now between EUR c.3.5 to 4bn. 13

14 Agenda 1 Financial Highlights 5 etailed Financials 2 Traffic Performances 6 3 Business Update Outlook

15 2019 Outlook Operational and u/l Earnings Growth expected 2018 Results 2019 Outlook Passengers FRA 69.5 mil. Growth between ~2 and ~3% Revenue excl. IFRIC bn ~3.2 bn EBITA EBIT Group result before minorities 1,129 mil. 1,104 mil. w/o Hanover 731 mil. 706 mil. w/o Hanover 506 mil. 430 mil. w/o Hanover Between ~1,160 to ~1,195 mil. Between ~685 to ~725 mil. Between ~420 to ~460 mil. ividend proposal 2.00 / share Stable 15

16 Agenda 1 Financial Highlights 5 etailed Financials 2 Traffic Performances 6 3 Business Update Outlook

17 etailed Financials Aviation in mil EBITA +28mil. EBITA FY 2017 Aviation charges 1 Security services Other revenue Other income Staff cost Other opex EBITA FY 2018 Comments P&L in mil. FY 2018 FY 2017 % Increase in Aviation charges due to traffic growth Marginal Aviation charge contribution of ~6 per passengers due to incentive program (2018 average retained aviation charge per passenger post reimbursements at ~11.65) 1 Significant EBITA improvement in 2018 by 28mil. compared to 2017 Adjusted for security services and other revenue, EBITA margin at 34% (2017 value: 32%) 22mil. &A increase due to shorter assumed useful life time Revenue 1, Airport charges Security services Other revenue EBITA EBIT Employees 6,195 5, Aviation charges incl. reimbursements to airlines based on growth incentives. Average pax charge calculated with revenue divided by total pax ue to commercial rounding discrepancies may occur when summing up, percent changes based on unrounded figures

18 etailed Financials Retail & Real Estate in mil EBITA +12mil. EBITA FY 2017 Retail Real Estate Parking Other revenue Other income Staff cost Other opex EBITA FY 2018 Comments P&L in mil. FY 2018 FY 2017 % In Q4 Retail spend per passenger turnaround achieved! Parking revenue up due to higher passenger numbers Real Estate revenue down due to energy supply contract lost Other revenue down due to less land sales Less opex due to less land sales & lost energy supply contract Energy supply subsidiary sold in January 2019 with book gain of ~12 mil. recorded in Q Revenue Retail Real Estate Parking Other revenue EBITA EBIT Employees ue to commercial rounding discrepancies may occur when summing up, percent changes based on unrounded figures

19 etailed Financials In Q4 Frankfurt Retail per Passenger Turnaround achieved! Retail revenue per Passenger incl. TF JV 2017: : Retail revenue per Passenger w/o TF JV Q4 Top 5 Spenders (estination tracked, not nationality) China Russia S.Korea Vietnam Japan : : 3.12 Left columns = % change in volumes vs. Q4Y 2017 Right columns = % change in retail revenue per pax vs. Q Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Retail revenue streams Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Shopping Services Q4 Top 5 Volumes (estination tracked, not nationality) US Germany Turkey UAE India Advertising TF-JV Source: sales/revenue data of Gebr. Heinemann by destinations.

20 etailed Financials Ground Handling in mil EBITA -7mil EBITA FY 2017 GH revenue Infrastructure charges Other revenue Other income Staff cost Other opex EBITA FY 2018 Comments P&L in mil. FY 2018 FY 2017 % Increase in MTOM, Movements & Passengers led to revenue growth More staff hired in Ground Handling subsidiaries to handle traffic growth + extra shifts resulted in higher staff cost of 30m and other opex of 12m Extra cost to maintain quality offset revenue growth EBITA & EBIT down Revenue Ground Handling Infrastructure Other revenue EBITA EBIT Employees 9,073 8, ue to commercial rounding discrepancies may occur when summing up, percent changes based on unrounded figures

21 etailed Financials International Activities & Services EBITA in mil EBITA +92mil. EBITA FY 2017 Comments Brasil Greece First-time contribution of Fraport Brasil: adjusted for F/X, financial performance well in line with outlook given at start of 2018 Traffic growth increased Greek revenue and EBITA contribution Positive Lima performance; +~8% local US EBITA offset by negative F/X translation Negative USA performance due to loss of Boston contract EBITA & EBIT increase include 25mil. Hanover book gain Twin Star Slovenija Lima USA Hanover EBITA FY 2018 USA P&L in mil. FY 2018 FY 2017 % Revenue 1, Revenue excl. IFRIC EBITA EBIT Employees 6,047 5, ue to commercial rounding discrepancies may occur when summing up, percent changes based on unrounded figures

22 etailed Financials Cash Flow and Financial Position in mil. in mil. 3, , Free Cash Flow 2018: + 7m Net debt YE 2017 OCF Brasil capex Greece capex Lima & TS capex Fixed concession payments FRA expansion Other capex iv s from equity investments ividends paid Hanover & Others Net debt YE Comments OCF lower due to working capital changes, OCF w/o wc changes: +19% Positive FCF despite elevated capex in Fraport Brasil, Greece and FRA Slight increase in net debt due to dividend payout Net debt / EBITA at 3.1, Gearing ratio at 89% Capex figures including down-payments to EPC companies 1 = OCF definition adjusted to exclude fixed concession payments, PY values restated 2 = Capex in airport op. projects, other intangible assets, PPE, investment property, and at equity investments. No consideration of one-time payments for acquisitions. 3 = OCF Capex + ividends from at equity investments mil. FY 2018 FY 2017 % Operating cash flow OCF before work. cap. changes Capex Free cash flow Net debt 3,545 3, Equity 4,368 4, Gearing ratio PP

23 etailed Financials Capex and Cash Flow Outlook Frankfurt Brasil Greece Lima 1 EUR c mn EUR c.200mn EUR c mn EUR c.150mn FY 2019 Capex estimate up to EUR c. 1.2bn FCF to turn clearly negative YE 2019 Net debt estimate of EUR c. 4bn² 23 1 Lima Capex will largely depend on awarding processes for Runway and Terminal projects 2 No consideration of further M&A activities or ivestments

24 Agenda 1 Financial Highlights 5 etailed Financials 2 Traffic Performances 6 3 Business Update Outlook

25 Group P+L million Revenue 3, ,934.8 Revenue w/o IFRIC 12 3, ,893.1 Change in work-in-process Other internal work capitalized Other operating income Total revenue 3, ,010.4 Total revenue w/o IFRIC 12 3, ,968.7 Cost of materials 1, Cost of materials w/o IFRIC Personnel expenses 1, ,092.9 Other operating expenses EBITA 1, ,003.2 epreciation and amortization EBIT/Operating result Interest income Interest expenses Result from companies accounted for using the equity method Other financial result Financial result EBT/Result from ordinary operations Taxes on income Group result thereof profit attributable to non-controlling interests thereof profit attributable to shareholders of Fraport AG Earnings per 10 share in Basic iluted

26 26 Group Cash Flow million Profit attributable to shareholders of Fraport AG Profit attributable to non-controlling interests Adjustments for Taxes on income epreciation and amortization Interest result Gains/losses from disposal of non-current assets Others Changes in the measurement of companies accounted for using the equity method Changes in inventories Changes in receivables and financial assets Changes in liabilities Changes in provisions Operating activities 1, ,084.0 Financial activities Interest paid Interest received Paid taxes on income Cash flow from operating activities million Cash flow from operating activities Investments in airport operating projects ,607.0 Capital expenditure for other intangible assets Capital expenditure for property, plant, and equipment Capital expenditure for "Investment property" Investments in companies accounted for using the equity method Sale of shares in companies accounted for using the equity method ividends from companies accounted for using the equity method ividends from other investments Proceeds from disposal of non-current assets Cash flow used in investing activities excluding investments in cash deposits and securities ,897.2 Financial investments in securities and promissory note loans Proceeds from disposal of securities and promissory note loans Increase/decrease of time deposits with a term of more than three months Cash flow used in investing activities ,632.5 ividends paid to shareholders of Fraport AG ividends paid to non-controlling interests Capital increase Capital contributions for non-controlling interests Cash inflow from long-term financial liabilities ,304.9 Repayment of long-term financial liabilities Other financing activities Changes in current financial liabilities Cash flow from financing activities Changes in restricted cash and cash equivalents Change in cash and cash equivalents Cash and cash equivalents as at January Foreign currency translation effects on cash and cash equivalents Cash and cash equivalents as at ecember

27 27 Group Financial Position Assets million ecember 31, 2018 ecember 31, 2017 Non-current assets Goodwill Investments in airport operating projects 2, ,621.1 Other intangible assets Property, plant and equipment 6, ,921.5 Investment property Investments in companies accounted for using the equity method Other financial assets Other receivables and financial assets eferred tax assets , ,779.3 Current assets Inventories Trade accounts receivable Other receivables and financial assets Income tax receivables Cash and cash equivalents , ,053.1 Assets held for sale 17.2 Total 11, ,832.4 Liabilities and equity million ecember 31, 2018 ecember 31, 2017 Shareholders equity Issued capital Capital reserve Revenue reserves 2, ,345.7 Equity attributable to shareholders of Fraport AG 4, ,868.1 Non-controlling interests , ,028.7 Non-current liabilities Financial liabilities 4, ,955.6 Trade accounts payable Other liabilities 1, ,090.1 eferred tax liabilities Provisions for pensions and similar obligations Provisions for income taxes Other provisions , ,543.6 Current liabilities Financial liabilities Trade accounts payable Other liabilities Provisions for income taxes Other provisions , ,260.1 Liabilities related to assets held for sale 8.8 Total 11, ,832.4

28 Revenue Bridge in mil. FRA Segments: +65mn International Act & Services: +161mn , , , FY 2017 Av. Revenue charges w/o IFRIC 12 Sec. Parking Retail Real Land GH Other Greece Brasil Lima Twin Slovenija USA Other FY 2018 IFRIC Estate sales Star Revenue 12 w/o IFRIC 12 FY 2018 Revenue 28 ue to commercial rounding discrepancies may occur when summing up, percent changes based on unrounded figures

29 EBITA Bridge FRA: INT: + 9m mainly in Real Estate - 25m Brasil - 21m Greece - 6m USA - 5m Lima - 2m Bulgaria - 1m Slovenija FRA: INT: Restructuring effect: -16m 27m FRA subs. Ground + other subs Employees in Parent - 23m 12m Wages AG company - 10m 8m Extra FraSecshifts +24m - 3m Volume Extra shifts AG -+14m 22m FRA Volume Security AG -+ 6m 3m Partial Restructuring retirement - 6m Provisions & others - 11m 7m Brazil Brasil -- 3m 4m Greece FRA: + 1m Other - 2m Bulgaria INT: - 9m Brasil - 2m Slovenija - 4m Lima - 1m USA - 1m Greece - 1m Lima + 3m USA + 2m Slovenija in mil ,129 1,003 EBITA FY 2017 Revenue w/o IFRIC 12 + Other income Cost of materials excl. IFRIC 12 Personnel cost Other opex EBITA FY ue to commercial rounding discrepancies may occur when summing up, percent changes based on unrounded figures

30 Group Result Bridge in mil. FRA: -25m- INT: - 13m Greece -- 12m Brasil + +10m USA + 2m Lima Interest result: --11m -mainly: --23m Greece - 4m Brasil + 8m Lima + 4m 3m Revaluation FRA + 3m 2m FRA Borrowing cost At equity result: + +68m -mainly: + +60m Hanover sale + +23m Antalya - 11m FCS FRA Cargo result & writedown - 3m Retail JV Other result: +20m + 23m -mainly: +10m + 13m Lima Fair value bond measurements buyback m Lima b Group result FY 2017 EBITA &A Financial result Taxes Group result FY 2018 EPS FY 2017 EPS FY ue to commercial rounding discrepancies may occur when summing up, percent changes based on unrounded figures

31 International Activities biggest single Segment EBITA share in Group 24% 1 27% 25% 32% 36% % 5% 25% 4% 45% 38% 35% Aviation Retail & Real Estate Ground Handling International Activities & Services Long term Increase of International Activities Share in EBITA and Group Result irection 50% expected 31 1 Adjusted for proceeds from Manila project and stake disposal in Thalita Trading Ltd., the St. Petersburg concession operator ²Adjusted for proceeds from disposal of Hanover Airport stakes

32 Performance of Major Airport Investments Fully consolidated Group companies million Share in % Revenue 1) EBITA EBIT Result Δ % Δ % Δ % Δ % Fraport USA Fraport Slovenija Fortaleza + Porto Alegre 2) Fraport Greece 3) Lima Twin Star Group companies accounted for using the equity method million Share in % Revenue 1) EBITA EBIT Result Δ % Δ % Δ % Δ % Antalya 51/50 4) > 100 Pulkovo/Thalita Xi an Figures refer to IFRS accounting before consolidation, not local GAAP, percent changes based on unrounded figures 1 Revenue adjusted by IFRIC 12: Lima 2018: million (2017: million); Fraport Greece 2018: million (2017: million); Fortaleza + Porto Alegre: 2018: 90.9 million; Antalya 2018: million; Pulkovo/Thalita 2018: million. 2 Sum of the Group companies Fortaleza and Porto Alegre. Operations from January 2, The Group companies Fraport Regional Airports of Greece A and Fraport Regional Airports of Greece B are collectively referred to as Fraport Greece. Operations from April 11, Share of voting rights: 51%, dividend share: 50 %.

33 FY 2018 Frankfurt Passenger Split 33 North America Western Europe omestic Eastern Europe 13% +3% Latin America 3% +2% 44% +12% 11% +5% Frankfurt Airport Africa 4% +12% 9% +15% Middle East 5% +1% Continental 64% +11% Far East 10% 0% Intercontinental 36% +3%

34 2M 2019 Frankfurt Passenger Split 34 North America Western Europe omestic Eastern Europe 11% +3% Latin America 5% +7% 41% +3% Africa 11% +2% Frankfurt Airport 5% +8% 9% +8% Middle East 6% -3% Continental 61% +3% Far East 12% +4% Intercontinental 39% +3%

35 IFRS 16 Accounting Impact on Lease Obligations IFRS 16 accounting for lessees in a nutshell: Transition from off-balance to on-balance, i.e., leasing contracts (mainly building / land rental contracts and retail concession agreements) must in future be accounted for in the same way as IFRIC 12. Recognition of a right to use and a liability in the amount of the present value of the future lease payments (previously only the future nominal payments were disclosed in the notes) = EBITA relief and increase in &A and interest expenses. For Fraport: approx. 40mn increase in EBITA, mildly positive on EBIT and mildly negative on EBT. Additional assets and liabilities of up to 340mn will now be recorded 35

36 Maturity Profile & Cash Position as at ecember 31, 2018 mil. 5,000 4,500 4,000 4, bn Fraport AG debt 686 mn Greece debt Average debt condition ~ 3.2% interest rate 3, mn Brasil debt 3,000 2,500 2,000 1,500 1, ,163 Liquidity as at ec 31, 2018 Financial Liabilities ,

37 Next ates 2019 Financial Calendar May 8, 2019 May 28, 2019 May 31, 2019 Aug 7, 2019 Nov 7, M AGM IV 6M 9M 2019 Traffic Calendar Apr 12, 2019 May 14, 2019 Jul 12, 2019 Jun 14, 2019 Aug 13, M 4M 5M 6M 7M Sep 13, 2019 Oct 14, 2019 Nov 13, 2019 ec 13, 2019 Jan 15, M 9M 10M 11M 12M 37

38 Contacts Thank you for your Attention! Please consider the Environment before printing IR Contact T: F: M: Postal Fraport AG Frankfurt Airport Services Worldwide Frankfurt am Main Germany 38