EuroLatam Conference

Transcription

1 New York September 2015 Stefan J. Rüter Head of Finance & Investor Relations Marc Poeschmann Investor Relations

2 2 Disclaimer 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 forwardlooking statements that are based on current estimates and assumptions made by the management of Fraport to the best of its knowledge. Such forwardlooking statements are subject to risks and uncertainties, the nonoccurrence 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 forwardlooking statements. This also applies to the forward looking estimates and forecasts derived from thirdparty 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.

3 3 Agenda Traffic Insight Details on T3 International Business Development Appendix

4 4 Traffic Insight Frankfurt Airport Aug 2015 D % YTD 2015 D % FY 2014 Passengers in `000 6, , ,566 Movements 42, , ,026 MTOW in `000 tons 2, , ,958 Cargo in `000 tons , ,132 90% 85% 80% Seat load factor YTD 2015 YTD 2014 Passenger per movement +5.4 Pax 75% 70% 65% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Passenger guidance FY2015: 23% upside Passenger figures according to ACI, commercial traffic only; cargo includes air freight and air mail

5 5 Traffic Insight Frankfurt Airport Passenger Flows YTD 08/2015 Western Europe Domestic Eastern Europe North America D 42% +4% D 11% +6% D 9% +5% D 14% +2% Latin America D 4% +2% Frankfurt Airport Africa D 4% +4% Middle East D 5% +7% Far East D 11% +7% Continental Intercontinental D Traffic Share YTD vs. previous year D 62% +4% D 38% +4%

6 6 Traffic Insight Group Passenger Development (stakes above 10%) IATA Code Airport Share Aug 2015 D previous year YTD 2015 D previous year FY 2014 CAGR FRA Frankfurt, Germany 100% 6, % 41, % 59, % LJU Ljubljana, Slovenia 100% % % 1, % LIM Lima, Peru 70% 1, % 11, % 15, % BOJ Burgas, Bulgaria 60% % 1, % 2, % VAR Varna, Bulgaria 60% % 1, % 1, % AYT Antalya, Turkey 51% 4, % 19, % 27, % LED St. Petersburg, Russia 35.5% 1, % 9, % 14, % HAJ Hanover, Germany 30% % 3, % 5, % XIY Xi an, China 24.5% 3, % 21, % 29, %

7 7 Traffic Insight Accumulated Group Passenger Development since 2009 (stakes above 10%) in % Russia, China & Peru booming since 2009 FRA with 17% doing well LED +111% XIY +91% LIM +78% AYT +50% BUL +35% FRA +17% HAJ +6%

8 8 Agenda Traffic Insight Details on T3 International Business Development Appendix

9 9 Details on T3 Traffic Forecast of Passengers FRA until 2030 Passengers per year in mil. 90,0 Forecast Intraplan Capacity restriction 85,0 Forecast MKmetric > 80 80,0 75,0 > 70 > 75 > 75 > 80 70,0 65,0 60,0 55,0 68 mil. Passengers per year (temporary overload) 64 mil. Passengers per year (dedicated capacity) 58 > 60 > 60 > 65 > 65 > 70 Pier APlus (2012) Hall C and CDPier (2007) 50,0 Capacity T1+T2 45, Year

10 10 Details on T3 Decision to construct T3 taken by Supervisory Board Floor space ca. 90,000 sqm Equivalent to 19 Football fields Height of Terminal inside 20m, outside 33m above ground level Length Pier H: 400m, Length Pier J: 600m 14 million additional pass. capacity 24 gate positions at the building 4 CheckinAreas with 100 counters 18 Security control lanes for O&D 11 Security control lanes for transfer 10 luggage conveyor belts Capex budget bn. in total

11 11 Details on T3 Apron Infrastructure already under Construction Market Place Security CheckIn Train Parking T3 apron area: Constructed: 780,000 sqm To be built: 555,000 sqm

12 12 Details on T3 Road and Train Access

13 13 Details on T3 Main Hall Impression

14 14 Details on T3 Façade Impression

15 15 Details on T3 Schedule Excavation work Start of structural work Technical & operational tests Inauguration

16 16 Details on T3 FRA Capex peaking ~5 Years after T3 Construction Start Maintenance Capex T3 FRA 500 Capex in External Activities not included Start of T3 construction 0 Maintenance mil plus 2% p.a. T3 start Peak after 5 years End after 8 years

17 17 Agenda Traffic Insight Details on T3 International Business Development Appendix

18 18 International Business Development Challenges from Ruble Exposure at AYT, LED & BUL BUL. AYT Russians among the biggest tourism groups 1/3 Russian traffic share 40 BUL. Bulgaria Euro / Ruble Development (Jan.14 Sep.15) International traffic down Facts Expectation 2015 Large share of Russians, but not as dominant as in AYT LED Negative impact on Retail expected AYT Antalya 1/3 Russian traffic share, normally late booking behavior, high retail spenders Lower expectations than in 2014 on traffic; Earnings to be affected by lack of Russian travelers LED St. Petersburg Good operative year 2014 (new Terminal) but declining share of international passengers Operations challenging, financials also depending on Ruble development

19 19 International Business Development Antalya Performance The busiest Mediterranean Airport More than 300 destinations today Country share of traffic 2014 AYT 33% 42% Russia 25% Germany Other Only 14 destinations in 1993 AYT

20 20 International Business Development Lima Airport in mil Significant traffic growth for more than a decade with nearly 11% CAGR Dividend payments to Fraport: 5.2 million in 2014 (cumulated: 53.5 million ) Upgrade of infrastructure necessary within the next decade: 18,0 16,0 14,0 12,0 10,0 8,0 6,0 4,0 2,0 2 nd terminal, new runway, extension of taxiways, new tower, additional access ways to the airport Runway construction within 5 years after land transfer of the Peruvian state, subsequently construction of a 2 nd Terminal Traffic Development Y CAGR: 10.8% Above 15 million passengers 0,

21 21 International Business Development Ljubljana Airport Size: 1.3 mil. passengers in 2014 Upside in passenger traffic 2014: +3.1% Capital airport with high share of O&D traffic Main Traffic to: Frankfurt, London, Istanbul, Zurich, Munich plus summer destinations Signing September 5, 2014 Control 100 % Consolidated, Ownership 75.5% at first, 100% today Price mil. for 97.99% Core services Aviation NonAviation Ground Handling 30% 50% Airport Services Ground Handling Main Carrier Adria Employees ~400 20% Nonaeronautical

22 22 International Business Development Update Aerodrom Ljubljana The only airport subsidiary with 100% Fraport share in Group portfolio Stable cash flows Payback already started Very good 6M traffic and EBITDA performance Redesign of arrival F&B area and mobile units Aerodrom Ljubljana 6M Performance in % in mil % 6M M Passengers EBITDA 1 new carrier 3 new routes Percent changes based on unrounded figures, financials according to local GAAP, IFRS figures differ

23 23 International Business Development Ljubljana Roadmap Next steps: Focus on route development Further enlargement of regional hub concept Longterm expansion of air freight Strong focus on retail and F&B performance Low capex profile as infrastructure is in good shape Optimization of Terminal capacity and passenger flows Strong focus on NonAviation performance, especially retail and food & beverages New CFO/COO to be positioned North and South America Total PAX 2014 vs route map

24 24 International Business Development Airmall Retail Acquisition USA Core segment Retail is expanded to the largest aviation market in the world Visible and continuous contribution to EBITDA Stable cash flows guarantee start of payback period immediately after takeover Unlocking of further growth potential by Fraport Group network expertise Signing / Closing July 23 / August 1, 2014 Control Core services Consolidated, 100% owned Retail Property Development Leasing Operations Management Branding and Marketing Founded 1991 Employees 28

25 25 International Business Development 1 st Year of Airmall Operations New tenant contracts and optimized tenant mix improves AMU financials Full year EBITDA contribution will exceed double digit million US$ threshold (2014: US$ 9 mil.) Total departing passenger number on previous year level at 13.0 mil. Baltimore Washington International Airport Adding international brands US$ mil Airmall 6M Performance +5.9% % 7 6 6M M Concession revenue EBITDA Pittsburgh International Airport Modernization of central market place 2014 Percent changes based on unrounded figures

26 26 International Business Development Airmall Roadmap Next Steps: Rebranding of company Growth of existing portfolio Extend existing concession projects Boston International Airport Tender expected to start in the course of 2016 New Business Acquisition of new concession contracts Chicago O Hare International Airport Terminal 2 facility redevelopment, tender expected late 2015/early 2016 Miami International Airport Central terminal retail master concession, tender expected late 2015/early 2016 Fraport USA Growing and expanding Fraport s footprint in the US

27 27 Agenda Traffic Insight Details on T3 International Business Development Appendix

28 28 Appendix: Group P&L 6M 2015 Topline Growth translates into Bottomline P&L in mil. 6M 15 6M 14 % Revenue 1,242 1, excl. IFRIC 12 1,235 1, EBITDA EBIT EBT Group result EPS in Comments Growing revenue in all segments Good performance in EBITDA & EBIT, despite lower other income and higher opex Financial result improvement, despite negative effect from CHF loan valuation Group result and EPS with doubledigit growth Revenue by segment in mil. EBITDA by segment in mil. 1, , Revenue 6M 2014 Aviation Retail & Real Estate Ground Handling External Activities & Services Revenue 6M 2015 EBITDA 6M 2014 Aviation Retail & Real Estate Ground Handling External Activities & Services EBITDA 6M 2015 Due to commercial rounding slight discrepancies may occur when summing up, percent changes based on unrounded figures

29 29 Appendix: Group P&L 6M 2015 External Activities key Driver for lift in Group EBITDA + 31 mil. mil EBITDA 6M 2014 Revenue ex. IFRIC 12 IFRIC 12 revenue Other income Cost of materials ex. IFRIC 12 IFRIC 12 cost of materials Staff cost Other opex EBITDA 6M 2015 Segment share in Group EBITDA 6M 2014 Segment share in Group EBITDA 6M 2015 External Activities & Services Ground Handling 18,7% 3,2% 29,5% Aviation External Activities & Services Ground Handling 22,3% 3,3% 26,6% Aviation 48,6% Retail & Real Estate 47,8% Retail & Real Estate Due to commercial rounding slight discrepancies may occur when summing up

30 30 Appendix: Group P&L 6M 2015 EBITDA and Financial result led to higher Group result + 11 mil mil Group result 6M 2014 EBITDA D&A Financial result Taxes Group result 6M 2015 EPS 6M 2014 EPS 6M 2015 Split of financial result Comments mil 6M 15 6M 14 % Interest income Interest expenses At equity result Other result 3 7 Financial result Improved interest result from lower interest rates and lower debt Split of equity result: Antalya down due to less Russian travelers Xi an and Hanover up Other financial result up, despite negative impact from CHF loan market valuation Due to commercial rounding slight discrepancies may occur when summing up, percent changes based on unrounded figures

31 31 Appendix: Group Asset & Financial Situation Higher OCF and lower Capex improved FCF by 76% Operating cash flow Intangible assets PPE Airport operating projects Investment property DVDs from investments Free cash flow mil M M 2014 YTD development OCF due to improved earnings 71 mil. up Lower FRA capex supported FCF Other spending on 2014 level FCF of 190 mil. clearly exceeded DVD payout of 125 mil Outlook Capex will maximum be slightly above 2014 level FCF expected to exceed 10% of net debt Including DVD payout, FCF will lead to deleverage at high single digit percentage point level subject to Greek airport deal Due to commercial rounding slight discrepancies may occur when summing up

32 Due to commercial rounding slight discrepancies may occur when summing up 1) FCF predividend payout; figures correspond to 6M figures 2) Net debt divided by equity less noncontrolling interests and profit earmarked for distribution 32 Appendix: Group Asset & Financial Situation Deleverage despite DVD Payout FCF 1 Liquidity Gross debt Net debt Equity Gearing 2 mil % 97% June 30, 2015 Dec. 31, 2014 Cash development FCF of 190 mil. clearly above previous year FCF, repayment of gross debt, and cash out for DVD led to 123 mil. decline in liquidity As DVD was covered by FCF net debt was slightly down Slight diluting effects from accrued interest Balance sheet Despite DVD payout, Equity up due to Group result, valuation of derivatives and currency effects As equity moved up and net debt went down, Gearing was c.5 PP down on Dec. 31, 2014 Equity ratio exceeded 36% (Dec. 31,14: 34%)

33 33 Appendix: Segment Aviation Incremental Revenue offset by Opex and Oneoffs P&L in mil. 6M 15 6M 14 % Revenue Airport charges Security Services Other EBITDA EBIT Employees 5,995 6, Comments Revenue growth in line with traffic and price development Negative impact from high wage increases: + 10 mil. Other income 7 mil. down due to releases of provisions in 2014 Additional opex burden from creation of provisions and noncapitalizable capex EBITDA performance in mil. Revenue split +26 Security Services 13,3% 4,5% Other Aviation charges EBITDA 6M 2014 Revenue Other income Staff cost Other EBITDA 6M ,2% Due to commercial rounding slight discrepancies may occur when summing up, percent changes based on unrounded figures

34 34 Appendix: Segment Retail & Real Estate Growing Operations and Earnings P&L in mil. 6M 15 6M 14 % Revenue Retail Real Estate Parking EBITDA EBIT Comments Strong revenue increase from retail and parking businesses Cost level flat on previous year EBITDA and EBIT reflect revenue increase EBITDA margin at 78.9% Employees EBITDA performance in mil. Revenue split Parking 1,1% Other 17,5% 42,7% Retail EBITDA 6M 2014 Revenue Other income Staff cost Other EBITDA 6M 2015 Real Estate 38,7% Due to commercial rounding slight discrepancies may occur when summing up, percent changes based on unrounded figures

35 35 Appendix: Segment Retail & Real Estate Spend per Pax 6% above Previous Year All Time High Retail revenue per Passenger 6M 12: M 13: M 14: M 15: ,40 3,10 2,95 3,95 3,74 3,42 3,24 4,11 3,95 3,93 3,69 3,22 3,41 3,04 FY 12: 3.32 FY 13: 3.60 FY 14: 3.43 mil. Shopping Services Advertis. Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q

36 36 Appendix: Segment Retail & Real Estate Development of Core Spending Destinations Volume Development % Change in % 2 China Japan Russia Korea Brazil vs. 6M 14 USA Germany Turkey Canada India 14 Retail Revenue per Passenger % Change in % 9 China Japan Russia Korea Brazil vs. 6M 14 USA Germany Turkey Canada India 8 20

37 37 Appendix: Segment Ground Handling Slight Improvement in EBITDA, EBIT still negative P&L in mil. 6M 15 6M 14 % Revenue Ground Handling Infrastructure EBITDA EBIT 9 7 Employees 9,342 9, Comments Revenue increase from higher volumes and prices in infrastructure Staff cost up volume and pricewise Slight increase in EBITDA Higher D&A led to further decline in EBIT EBITDA performance in mil. Revenue split Infrastructure 43,2% 56,8% Ground Handling EBITDA 6M 2014 Revenue Other income Staff cost Other EBITDA 6M 2015 Due to commercial rounding slight discrepancies may occur when summing up, percent changes based on unrounded figures

38 38 Appendix: Segment External Activities & Services Growth from Lima and new Investments P&L in mil. 6M 15 6M 14 % Revenue excl. IFRIC AMU & Ljubljana 45 EBITDA EBIT Employees 4,737 4, Comments Strong increase from Lima operations and positive US$ effect Firsttime 6M AMU & LJU contribution Lower earnings from Varna/Burgas and termination of mgmt. contracts in Saudi Arabia Solid increase in EBITDA and EBIT EBITDA performance in mil. Revenue split Twin Star Other 5,8% 17,9% EBITDA 6M 2014 AMU LJU LAP Twin Star Saudi Arabia Air IT Other EBITDA 6M 2015 Ljubljana 6,9% 12,8% Airmall 56,6% Lima Due to commercial rounding slight discrepancies may occur when summing up, percent changes based on unrounded figures

39 39 Appendix: Segment External Activities & Services Fully consolidated Investments 1 Airmall 2 Ljubljana 2 Lima Twin Star mil. 6M 15 6M 14 % 6M 15 6M 14 % 6M 15 6M 14 % 6M 15 6M 14 % Revenue ex IFRIC EBITDA margin adjusted % % % 38.2% % 38.1% % 43.6% % 47.1% 19.4 EBIT margin adjusted 2 7.7% 1 3.8% % 31.0% % 30.6% % 0.8% 2 9.6% 9.8% 93.3 Result Passengers in mil ) Figures refer to IFRS accounting, not local GAAP, percent changes based on unrounded figures 2) Airmall and Ljubljana since inclusion in Fraport Group

40 40 Appendix: Segment External Activities & Services At Equity consolidated Investments Antalya Pulkovo Hanover Xi An mil. 6M 15 6M 14 % 6M 15 6M 14 % 6M 15 6M 14 % 6M 15 6M 14 % Revenue ex IFRIC EBITDA margin adjusted % % % 55.1% % 36.6% % % % % 56.2 EBIT margin adjusted % % % 35.3% % 17.8% % 1 1.0% > % % >100 Result > Passengers in mil Except for Xi an all figures refer to IFRS accounting, percent changes based on unrounded figures

41 41 Appendix Special Effects 6M 2015 mil. 6M 15 6M 14 Group financial result Market valuation of derivatives & F/X fluctuations Segment External Activities IFRIC 12 revenue AMU Holdings acquired August 2014 Revenue 28.7 EBITDA 6.3 EBIT 2.2 Aerodrom Ljubljana acquired Oct Revenue 16.0 EBITDA 5.6 EBIT 0.6 Air Transport IT disposed April 2015 Revenue EBITDA EBIT Fraport Saudi Arabia ended June 2014 Revenue 9.6 EBITDA 4.3 EBIT 4.3

42 42 Appendix Aviation H1 Effects on EBITDA in mil. Other income 7m down on previous year in mil. EBITDA effective revenue increase at 22m M M M M 2015 Aviation charges Security revenue Other in mil. Ex. increase in security revenue: 6m underlying staff cost up in mil. Among others: +4m additions to provisions in other cost items M M M M EBITDA 6M Adjustment other income 97 EBITDA adjusted +22 Charge upside Staff cost 11 Other 102 EBITDA 6M Adjustment provision 106 EBITDA adjusted

43 43 Appendix Maturity Profile & Cash Position as at June 30, 2015 mil Fraport debt conditions on average ~ 3.4 % interest rate ~ 5.0 years maturity Bookvalue nominal Liquidity as of June 30, 2015 Financial Liabilities 1.132,9 475,3 377,2 517,3 422,8 413,9 321,2 93,1 238,1 2,

44 44 Appendix Unchanged 2015 Outlook Strike risk could impact traffic and financial outlook Outlook 2014 Result Outlook 2015 Passengers FRA growth between 2% and 3% +2.6% growth between 2% and 3% Revenue revenue growth up to ~ 2.45 bn. 2.4 bn. revenue between ~ 2.55 and ~ 2.6 bn. EBITDA between ~ 780 and ~ 800 mil. 790 mil. between ~ 820 and ~ 840 mil. EBIT growth up to ~ 500 mil. 483 mil. Group result slightly above mil. between ~ 500 and ~ 520 mil. between ~ 265 and ~ 285 mil. Dividend proposal at least stable 1.35 stable Group result before minorities

45 45 Appendix Potential Greek Airport Deal: Concession Details Airports 14 Greek regional airports, 80% international share, more than 22 million passengers Fraport Share & Partner Upfront payment Fraport will hold at least 2/3 rd of the concession depending on the final debt/equity ratio 1.2 bn. upfront payment Concession Payment Concession Length 22.9 mil. fixed annual concession payments (inflationed with Greek inflation rate) From 2019 variable payment of ~28.5% of EBITDA (before variable concession payment ) 40 years Capex Regulation 330 million compulsory in , afterwards maintenance capex Capex for extension depending on traffic growth Dual Till Airport Charges Retail Developement Growth assumption 13 per departing passenger in 2016, from inflationed with 90% of the Greek inflation (depending on capex) Very small retail outlets existing; Space will roughly triple after the first construction phase; new operating concepts like walk through will be introduced Not disclosed in detail business case assumes moderate growth over concession period of about 2% p.a.

46 46 Appendix IR Contact Fraport AG Frankfurt Airport Services Worldwide Frankfurt am Main Stefan J. Rüter Head of Finance & Investor Relations Svenja Ebeling Investor Relations Assistant Marc Poeschmann Manager Investor Relations Florian Fuchs Manager Investor Relations & Financial Reporting

47 47 Thank you for your Attention!