November Roadshow Brussles. Florian Fuchs / IR Maximilian Schultheis / IR. Fraport AG

Transcription

1 November 2017 Roadshow Brussles Florian Fuchs / IR Maximilian Schultheis / IR

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 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 - Financial Highlights - Traffic Performances - Business Update Outlook - Detailed Financials 3

4 Financial Highlights Strong Growth driven by External Activities mil. Revenue 2,229 EBITDA Group result before minorities 1, M M M M M M 2017 Strong Group-wide traffic performances support earnings growth Sharp increase in revenue also due to first-time contribution of Fraport Greece Key driver for additional EBITDA: External Activities Strong increase in Group result also driven by Antalya recovery EPS Outlook at EUR fulfilled (2016: Underlying EUR EBITDA 2.35) at ~ 851 mil. & Group result at ~ 293 mil. 4

5 Agenda - Financial Highlights - Traffic Performances - Business Update Outlook - Detailed Financials 5

6 Traffic Performances Group-wide Passenger Figures up! Airport operations Fraport Share OCT 2017 D previous year YTD 2017 D previous year FY 2016 Frankfurt 100% 6, % 54, % 60,787 Ljubljana 100% % 1, % 1,405 Greek regionals 73.4% 2, % 26, % 25,289 Lima 70.01% 1, % 17, % 18,845 Twin Star 60% % 4, % 4,568 Antalya 51% 2, % 24, % 19,028 Hanover 30% % 5, % 5,409 St. Petersburg 25% 1, % 13, % 13,265 Xi an 24.5% 3, % 34, % 36,997 6

7 Agenda - Financial Highlights - Traffic Performances - Business Update Outlook - Detailed Financials 7

8 Business Update Greece Strong first operational season Passenger figures up by 10.8% to 26.3 mil passenger outlook lifted to ~10% growth EUR 400 mil. capex program approved by Greek State in September Initial measures and quick wins already implemented Main constructions about to start mil Rough capex phasing Corfu +5.0% Aktion +18.1% Kefalonia +15.1% Zakynthos +17.1% Thessaloniki +12.9% Chania +4.7% Skiathos +4.8% Mykonos +20.7% Kavala +12.7% Santorini +13.5% Mytilene +5.4% Kos +20.3% Samos +13.9% Rhodes +6.5% 8

9 Business Update Brazil Porto Alegre: 7.6 mil. Passengers in 2016 Current status: Management team fully staffed Local offices established Capex plans finalized Next steps: Tendering of construction works Hiring of operational staff and implementing IT processes Operational transfer: Jan Concession Purchase price Investment obligations 25 years 290.5m BRL upfront 91.5m BRL as of year 6* +5% p.a. revenue component RWY refurbishment & extension Terminal refurbishment & extension Apron positions Retail expansion Fortaleza: 5.7 mil. Passengers in Concession Purchase price Investment obligations 30 years 425.0m BRL upfront 1,080.8m BRL as of year 6* +5% p.a. revenue component RWY refurbishment & extension Terminal refurbishment & extension Apron positions Retail expansion *spread over concession term

10 Business Update 2017/18 Frankfurt Winter Flight Season 1 Movement growth: ~8%, of which Europe: ~10% and Intercont: ~1% 2 Seat capacity growth: ~8%, of which Europe: ~11% and 3Strongest Intercont: ~2.5% growth from Lufthansa and Ryanair with combined 16 new continental destinations New Winter Flight Schedule as of October 29,

11 Business Update Growing Passenger Dynamic in Frankfurt : continuation of above average growth : ~5% Forecast 2018 Indication Strongest growth momentum since financial crisis - Among others, due to recovery of Far East and North African markets - Strong increase in seat load factors: +~3PP - Increasing offer of low cost carriers Minor role of low cost traffic in FRA in the past LCC share <2% - Intra-European LCC share ~50% 11

12 Business Update Need for new Infrastructure to handle Passenger Growth Pier G 1st stage 2nd stage Pier G: 1st stage Planned inauguration: 2020 Passenger capacity: ~4 to 5m p. a. Parking positions: 9 Flexible Schengen/Non-Schengen utilization due to swing gates Capex: ~ 100 to 200m 12

13 Business Update Terminal 3 progresses as planned mil Capex phasing Pier G T3 13

14 Business Update Existing FRA Terminals also in Focus Frankfurt Airport Skytrax Ranking '08 '09 '10 '11 '12 '13 '14 '15 '16 '17

15 Business Update Changes to Market Environment Passengers: increasingly autonomous and price sensitive ( self-connector ) New Generation of short and long haul aircraft types Strong growth of LCC & market consolidation Integration of Point-to-Point traffic / carriers into hub network 15

16 Agenda - Financial Highlights - Traffic Performances - Business Update Outlook - Detailed Financials 16

17 2017 Outlook Unchanged Outlook 2016 Results 2017 Outlook Passengers FRA 60.8 mil. Growth of ~5% Revenue 2.59 bn Up to ~ 2.9 bn EBITDA EBIT Group result before minorities 1,054 mil. 694 mil. 400 mil. Between ~ 980 mil. and ~ 1,020 mil. Between ~ 610 mil. and ~ 650 mil. Between ~ 310 mil. and ~ 350 mil. Dividend proposal Lifted to 1.50 / share Stable 17

18 Agenda - Financial Highlights - Traffic Performances - Business Update Outlook - Detailed Financials 18

19 Detailed Financials Summary of Group Results P&L in mil. 9M 17 9M 16 % Revenue 2,229 1, excl. IFRIC 12 2,206 1, Total revenue 2,281 2, EBITDA D&A EBIT Interest result At equity result 36 2 >100 Other financial result 9 2 >100 Financial result EBT Taxes on income Group result before minorities Minority result Group result after minorities EPS in, basic Segment share in Group revenue 9M M % 35% 28% 32% 19% 18% 25% 22% Aviation GH Retail & RE External Act. Segment share in Group EBITDA 9M M % 28% 34% 25% 5% 42% 7% 36% Aviation GH Retail & RE External Act. 19

20 Detailed Financials Antalya Airport Recovery Strong Recovery of International / Russian Traffic I German Traffic Down # of departing international passengers 2,000,000 YTD +59% # of departing domestic passengers YTD +3% 600,000 1,500,000 1,000, , , , Jan Feb Mar Apr May Jun Jul Aug Sep Oct 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct YTD >100% YTD -12% # of departing Russian passengers # of departing German passengers 800, , , , , , , , Jan Feb Mar Apr May Jun Jul Aug Sep Oct 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct 20

21 Detailed Financials Cash Flow & Net Debt in mil. +1,234 Effects lowering net debt Effects increasing net debt ,557 2, ,113 Free Cash Flow: 388m Net debt FY 2016 OCF Capex T3 Greece Capex 1 Capex Lima Other Capex Dividends from assiciated companies Dividends paid 9M 2017 Net debt before acquisitions Greece upfront payment Brazil initial payments Misc.: F/X, consolidation, financing & other effects Net debt 9M 2017 Comments mil. 9M 17 9M 16 % 21 Strong increase in OCF mainly due to Greece Free cash flow improvement despite lack of 19m AYT DVD Greece & Brazil upfront payments reflected in higher indebtedness and Gearing ratio Group equity above 4.0 bn., +5% Equity ratio at 35%; FY 2016: 41% Operating cash flow Capex² Free cash flow³ Net debt 4 3,557 2, Equity 4 4,032 3, Gearing ratio 4 92% 65% +27PP 1 = Including 53.6 mil. prepayment to EPC company 2 = Capex in airport operating projects, other intangible assets, PPE, investment property, and at equity investments. No consideration of one-time payments for acquisitions. 3 = Operating cash flow Capex + Dividends from at equity investments 4 = 2016 values as at Dec. 31, 2016

22 Detailed Financials Aviation Segment in mil. Increasing effects Decreasing effects EBITDA 9M 2016 Aviation charges Security servcies Other revenue Other income Staff cost Other opex EBITDA 9M 2017 D&A EBIT 9M 2017 Comments P&L in mil. 9M 17 9M 16 % 1.9% higher average airport charges as of Jan. 1, 2017 Traffic growth further increased airport charges, dampened by incentive scheme Revenue from security services up due to volumes and new Berlin contract ~ 8m higher wages & ~ 3m higher cost for staff restructuring provision Revenue Airport charges Security services Other revenue EBITDA EBIT Employees 5,854 6, Due to commercial rounding slight discrepancies may occur when summing up, percent changes based on unrounded figures

23 Detailed Financials Retail & Real Estate Segment in mil. Increasing effects Decreasing effects EBITDA 9M 2016 Retail Real Estate Parking Other revenue Other income Staff cost Other opex EBITDA 9M 2017 D&A EBIT 9M Comments P&L in mil. 9M 17 9M 16 % Retail revenue up due to higher passenger volumes Average retail revenue per passenger down due to F/X and high continental passenger growth More parking revenue due to volumes & price Higher other revenue due to land sales mainly in Q2 ~3m higher opex from invest. that were not capitalized Solid EBITDA & EBIT performance Revenue Retail Real Estate Parking Other revenue EBITDA EBIT Employees Due to commercial rounding slight discrepancies may occur when summing up, percent changes based on unrounded figures

24 Detailed Financials Frankfurt Retail Revenue per Passenger Including Heinemann JV Retail revenue per Passenger Top 5 Spenders 9M 17: M 16: M 17: 3.31 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Retail revenue streams China Russia S.Korea Vietnam Japan Top 5 Volumes Left columns = % change in volumes vs. 9M 2016 Right columns = % change in spending per destination vs. 9M 2016 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Shopping US Germany Turkey UAE India Services Advertising DTF-JV Left columns = % change in volumes vs. 9M 2016 Right columns = % change in spending per destination vs. 9M Source: sales/revenue data of Gebr. Heinemann by destinations.

25 Detailed Financials Ground Handling Segment in mil. Increasing effects Decreasing effects EBITDA 9M 2016 Infrastructure charges GH revenue Other revenue Other income Staff cost Other opex EBITDA 9M 2017 D&A EBIT 9M 2017 Comments P&L in mil. 9M 17 9M 16 % Slight increase in revenue due to more passengers ~ 5m higher wages & ~ 6m higher cost for staff restructuring provision & other one-off items Slight improvement in non-staff costs EBITDA & EBIT down Revenue Ground Handling Infrastructure Other revenue EBITDA EBIT Employees 8,536 8, Due to commercial rounding slight discrepancies may occur when summing up, percent changes based on unrounded figures

26 Detailed Financials External Activities & Services Segment EBITDA in mil. Increasing effects Decreasing effects EBITDA 9M 2016 Lima Twin Star Ljubljana USA Greece Other EBITDA D&A EBIT 9M M 2017 Comments P&L in mil. 9M 17 9M 16 % First-time revenue and earnings contribution from Fraport Greece Strong Lima performance, despite negative F/X effect in Q3 ~ 4m higher wages & ~ 3m higher cost for staff restructuring provision & other one-off items in FRA facility and IT management staff Revenue excl. IFRIC EBITDA EBIT Employees 5,618 5, EBITDA & EBIT significantly up Due to commercial rounding slight discrepancies may occur when summing up, percent changes based on unrounded figures

27 Thank you for your Attention!

28 Appendix 10M 2017 Frankfurt Passenger Split North America D 13% +3% Western Europe D Latin America D 3% -1% 43% +6% Domestic D Africa 11% +3% Frankfurt Airport 4% D +17% Eastern Europe D 9% +5% Middle East D 6% +4% Far East D 11% +4% 85 Average seat load factors Jan Feb Mar Apr May Jun Jul Aug Sep Oct 80.0% 77.2% Continental D 63% +5% Intercontinental D 37% +4% 28

29 Appendix Performance of External Investments mil. Fully consolidated Group companies Share in % Revenue 1 EBITDA EBIT Result 9M M 2016 Δ % 9M M 2016 Δ % 9M M 2016 Δ % 9M M 2016 Δ % Fraport USA Fraport Slovenija Fraport Greece Lima Twin Star Group companies accounted for using the equity method Share in % Revenue 1 EBITDA EBIT Result 9M M 2016 Δ % 9M M 2016 Δ % 9M M 2016 Δ % 9M M 2016 Δ % Antalya 3 51/ > Hanover Pulkovo/Thalita Xi an Figures refer to IFRS accounting, not local GAAP, percent changes based on unrounded figures 1 Revenue adjusted by IFRIC 12: Lima 9M 2017: 230.6m (9M 2016: 209.4m), Q3 2017: 79.2m (Q3 2016: 75.6m); Fraport Greece 9M 2017: 172.0m, Q3 2017: 115.2m 2 Take-over of operations as of April 11, Share of voting rights: 51%, Dividend share: 50%. 4 Figures according to the separate financial statement. 29

30 Appendix Maturity Profile & Cash Position as at September 30, 2017 mil. 5,000 4,500 4,698 Fraport debt conditions on average ~ 3.2% interest rate 4,000 3,500 3,000 Book values 2,500 Nominal values 2,000 1,500 1, ,141 Liquidity Gross debt 1, ,

31 Appendix IR Contact T: F: M: Postal Frankfurt Airport Services Worldwide Frankfurt am Main Germany 31