ODDO Forum Lyon January 2016

Transcription

1 ODDO Forum Lyon January 2016 Florian Fuchs Investor Relations Maximilian Schultheis 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 Financial Highlights Traffic Insight News from FRA Airport Charges at FRA T3 Ground Breaking Retail Multichannel Greek Airports Outlook 2015 Financials 9M2015 in Detail

4 4 Financial Highlights Fraport Group Figures 9M 2015 (P&L) in mil. 9M2015 9M2014 yoy Revenue 1,967 1, % EBITDA % EBIT % Group Result* % Traffic Figures up, FRA with 3.6% upside in passenger traffic Revenue increased by 9.5% (IFRIC12 adjusted +9.4%) GroupEBITDA rose to 689 million, an upside of 11% All segments contributing, mostly Retail and External performance Group Result increased by 19% mostly due to operating performance * Before minorities

5 5 Financial Highlights Fraport Group Figures 9M 2015 (Cash Flow, Debt, Capex) in mil. 9M2015 9M2014 yoy Operating Cash Flow % Capex* % Dividend from Investments % Free Cash Flow % Gearing in %** 82% 97% 15PP Net Debt** 2,762 3,013 8 % Operating Cash Flow significantly up due to good operating performance Combined with downward trend in Capex and slightly lower dividends from at equity investments, Free Cash Flow moved substantially up Gearing & Net Debt down despite dividend payment * as used in PPE, airport operating projects, investment property, and other intangible assets ** yearend figures for 2014

6 6 Agenda Financial Highlights Traffic Insight News from FRA T3 Ground Breaking Airport Charges at FRA Retail Multichannel Greek Airports Outlook 2015 Financials 9M2015 in Detail

7 7 Traffic Insight Group Passenger Development (stakes above 10%) IATA Code Airport Share Nov 2015 D previous year YTD 2015 D previous year FY 2014 CAGR FRA Frankfurt, Germany 100% 3, % 56, % 59, % LJU Ljubljana, Slovenia 100% % 1, % 1, % LIM Lima, Peru 70% 1, % 15, % 15, % BOJ Burgas, Bulgaria 60% % 2, % 2, % VAR Varna, Bulgaria 60% % 1, % 1, % AYT Antalya, Turkey 51% 1, % 26, % 27, % LED St. Petersburg, Russia 35.5% % 12, % 14, % HAJ Hanover, Germany 30% % 5, % 5, % XIY Xi an, China 24.5% 2, % 30, % 29, %

8 8 Traffic Insight Frankfurt Airport Nov 2015 D % YTD D % FY 2014 Passengers in `000 3, , ,566 Movements , ,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 +4.4 Pass. 75% 70% 65% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec New passenger guidance FY2015: Between +~3% and +~4% Passenger figures according to ACI, commercial traffic only; cargo includes air freight and air mail

9 9 Traffic Insight Frankfurt Airport Passenger Flows YTD 11/2015 Western Europe Domestic Eastern Europe North America D 43% +2% D 11% +3% D 9% +3% D 13% +1% Latin America D 4% +0% Frankfurt Airport Africa D 4% +2% Middle East D 5% +5% Far East D 11% +5% Continental Intercontinental D Traffic Share YTD vs. previous year D 63% +3% D 37% +3%

10 10 Agenda Financial Highlights Traffic Insight News from FRA Airport Charges at FRA T3 Ground Breaking Retail Multichannel Greek Airports Outlook 2015 Financials 9M2015 in Detail

11 11 News from FRA Airport Charges at FRA Application for Airport Charge increase filed in at Hesse Ministry of Economics, Energy, Transportation and State Development (HMWEVL) in July 2015 Intended increase of 1.9% on airport charges for 2016 Reflecting both: airline needs for cost control and the airport s need for adequate return on capital Fraport AG retracted its application on October 29, 2015 Currently, the HMWEVL and Fraport AG have differing views regarding the calculation of essential cost elements including capital costs Until a new airport charge schedule comes into force the current charge schedule will remain valid also beyond January 1, 2016 Fraport AG will reexamine the issue and submit a new application in 2016

12 12 News from FRA T3 Ground Breaking in October 2015 Market Place Security CheckIn Train Parking Capex budget bn. in total Additional passenger capacity 14 million Floor space ca. 90,000 sqm Large stateoftheart Retail facilities 24 gate positions at the building 4 CheckinAreas with 100 counters Opening 2022 Focus 2016 on excavation works

13 13 News from FRA T3 Road and Train Access

14 14 News from FRA T3 Main Hall Impression

15 15 News from FRA T3 Façade Impression

16 16 News from FRA T3 Schedule Excavation work Start of structural work Technical & operational tests Inauguration

17 17 News from FRA FRA Capex Peak ~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

18 18 News from FRA Retail Multichannel starts Q2/2016 ff. 12/2015 Q1/2016 Online Payment & Home Delivery Q2/2016 Rollout Interactive Airport Desk I AID Additional delivery options Online Platform 09/2015 Test phase Interactive Airport Desk I AID Loyalty programm Relaunch Travel Homepage & App

19 19 Agenda Financial Highlights Traffic Insight News from FRA Airport Charges at FRA T3 Ground Breaking Retail Multichannel Greek Airports Outlook 2015 Financials 9M2015 in Detail

20 20 Greek Airports Status Quo FraportCopelouzos Consortium Signed Contract with HRADF in December 2015 Transfer of the airports (Closing) is expected to take place in autumn 2016 Fraport will have a clear majority share in the concession companies, while Copelouzos will hold the remaining stake Full payment of the billion upfront concession fee will be made by the Fraport consortium in tandem with the takeover of operations at the 14 airports Target of Fraport Consortium remains to finance the project partly via debt on the level of the concession companies Growth rates in Greece: 11M2015 yoy traffic growth of 6.4%

21 21 Greek Airports Concession Details Airports 14 Greek regional airports, 77% international share, around 23 million passengers in 2015 Fraport Share & Partner Upfront payment Fraport will hold a substantial majority in the project companies depending on the final debt/equity ratio 1.2 bn. upfront payment Concession Payment Concession Length 22.9 mil. fixed annual concession payments (indexed with Greek inflation rate) From 2020 variable payment of ~28.5% of EBITDA (before variable concession payment ) 40 years Capex Regulation 330 in , afterwards maintenance capex Capex for extension depending on traffic growth Dual Till Airport Charges Retail Developement Traffic Growth assumption 13 per departing passenger in 2017, after initial Capex 18.50, thereafter indexation with 90% of the Greek inflation rate annually 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 conservative growth over concession period of about 2% p.a.

22 22 Agenda Financial Highlights Traffic Insight News from FRA Airport Charges at FRA T3 Ground Breaking Retail Multichannel Greek Airports Outlook 2015 Financials 9M2015 in Detail

23 23 Outlook 2015 Guidance slightly lifted driven by FRA Traffic New Outlook 2015 Passengers FRA Between +~3% and +~4% Revenue (IFRIC 12 adjusted) revenue between ~ 2.55 and ~ 2.6 bn. EBITDA between ~ 840 and ~ 850 mil. EBIT between ~ 520 and ~ 530 mil. Group result* between ~ 275 and ~ 295 mil. Dividend proposal stable *Group result before minorities

24 24 Agenda Financial Highlights Traffic Insight News from FRA Airport Charges at FRA T3 Ground Breaking Retail Multichannel Greek Airports Outlook 2015 Financials 9M2015 in Detail

25 25 Group P&L 9M 2015 Group Financials reflect growing Operations P&L in mil. 9M 15 9M 14 % Revenue 1,967 1, excl. IFRIC 12 1,957 1, EBITDA EBIT EBT Group result EPS in Comments All segments with growing earnings Tailwind from Retail, FRA pricing, US$ conversion, and new investments Improvement in financial result despite negative CHF loan valuation Group result and EPS with doubledigit increase 1,797 Revenue by segment in mil , EBITDA by segment in mil Revenue 9M 2014 Aviation Retail & Real Estate Ground Handling External Activities & Services Revenue 9M 2015 EBITDA 9M 2014 Aviation Retail & Real Estate Ground Handling External Activities & Services EBITDA 9M 2015 Due to commercial rounding slight discrepancies may occur when summing up, percent changes based on unrounded figures

26 26 Group P&L 9M 2015 External Activities increase its Share in Group EBITDA mil mil EBITDA 9M 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 9M 2015 Segment share in Group EBITDA 9M 2014 Segment share in Group EBITDA 9M 2015 External Activities & Services Ground Handling 20,0% 5,7% 31,8% Aviation External Activities & Services Ground Handling 23,2% 5,9% 29,3% Aviation 42,5% Retail & Real Estate 41,6% Retail & Real Estate Due to commercial rounding slight discrepancies may occur when summing up

27 27 Group P&L 9M 2015 Group Result up due to higher EBITDA & Financial Result + 42 mil mil Group result 9M 2014 EBITDA D&A Financial result Taxes Group result 9M 2015 EPS 9M 2014 EPS 9M 2015 Split of financial result Comments mil 9M 15 9M 14 % Interest income Interest expenses At equity result Other result 1 8 >100 Financial result Improved interest result from lower interest rates, lower debt, and lower interest cost added back on provisions 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

28 28 Group Asset & Financial Situation 9M FCF per Share at 4.2 Operating cash flow Intangible assets PPE Airport operating projects Investment property DVDs from investments Free cash flow mil M M 2014 YTD development Sharp increase in OCF due to good earnings and lower cash outs for interests and taxes FRA capex 25% on previous year Stable remaining cash in and outflows Incl. DVD pay out FCF provided c. 260 mil. retained cash 2015 Outlook Capex won t exceed 2014 level FCF expected to remain above 10% of net debt Including DVD payout, FCF will lead to deleverage at high single digit percentage point level Due to commercial rounding slight discrepancies may occur when summing up

29 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 29 Group Asset & Financial Situation Strong FCF eases Balance Sheet Dynamics FCF 1 Liquidity Gross debt Net debt Equity Gearing 2 mil % 97% Sept. 30, 2015 Dec. 31, 2014 Cash development FCF of 389 mil. clearly above previous year Repayment of gross debt and cash out for DVD led to slight decline in liquidity Net debt clearly below 3bn, 2015 net debt/ebitda therefore c. at 3.2x Balance sheet Group result, valuation of derivatives, and currency effects lead to increase in equity to more than 3.4 bn Gearing c.15 PP down on Dec. 31, 2014 Equity ratio at 37.6% (Dec. 31, 2014: 34.4%) Slightly diluting effects from accrued interest

30 30 Segment Aviation Incremental Revenue almost completely offset P&L in mil. 9M 15 9M 14 % Revenue Airport charges Security Services Other EBITDA EBIT Employees 6,019 6, Comments FRA traffic drives revenue growth Headwind from: Revenue increase slowed down by flat movement development and FraConnect 13 mil. impact from wage increases Other income 4 mil. down due to release of provisions in 2014 Additional opex from creation of provisions, noncapitalizable capex, and quality measures EBITDA performance in mil. Revenue split Security Services 12,8% 4,2% Other EBITDA 9M 2014 Revenue Other income Staff cost Other EBITDA 9M ,0% Aviation charges Due to commercial rounding slight discrepancies may occur when summing up, percent changes based on unrounded figures

31 31 Segment Retail & Real Estate More Traffic & higher spend per Passenger strong Result P&L in mil. 9M 15 9M 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 increase in same magnitude as revenue EBITDA margin >80% Employees EBITDA performance in mil. Revenue split Parking 1,1% Other 17,4% 43,9% Retail EBITDA 9M 2014 Revenue Other income Staff cost Other EBITDA 9M 2015 Real Estate 37,6% Due to commercial rounding slight discrepancies may occur when summing up, percent changes based on unrounded figures

32 32 Segment Retail & Real Estate Retail per Passenger 6.7% up on Previous Year Retail revenue per Passenger 9M 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 3,26 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 Q2 Q

33 33 Segment Retail & Real Estate Development of Core Spending Destinations Volume Development % Change in % 2 China Japan Russia Korea Brazil vs. 9M 14 USA Germany Turkey Canada India 13 Retail Revenue per Passenger % Change in % China Japan Russia Korea Brazil vs. 9M 14 USA Germany Turkey Canada India 11 21

34 34 Segment Ground Handling Positive Earnings Momentum due Tight Cost Management P&L in mil. 9M 15 9M 14 % Revenue Ground Handling Infrastructure EBITDA EBIT Employees 9,297 8, Comments Revenue increase from higher volumes and prices in infrastructure Staff cost up due to volume and price EBITDA with good growth supported by lower other opex Despite higher D&A, EBIT up EBITDA performance in mil. Revenue split Infrastructure 43,5% 56,5% Ground Handling EBITDA 9M 2014 Revenue Other income Staff cost Other EBITDA 9M 2015 Due to commercial rounding slight discrepancies may occur when summing up, percent changes based on unrounded figures

35 35 Segment External Activities & Services Growth from Lima and new Investments P&L in mil. 9M 15 9M 14 % Revenue excl. IFRIC AMU 44 8 >100 Ljubljana 27 EBITDA EBIT Employees 4,901 4, Comments Strong increase from Lima traffic and positive US$ effect Full YTD contribution of AMU & LJU Lower earnings from Varna/Burgas and termination of Saudi mgmt. contracts Other income up from Air IT book gain Strong increase in EBITDA and EBIT EBITDA performance in mil. Revenue split Ljubljana Other 6,9% 16,0% EBITDA 9M 2014 AMU LJU LAP Twin Star Saudi Arabia Air IT Other EBITDA 9M 2015 Airmall 11,5% 12,8% Twin Star 52,8% Lima Due to commercial rounding slight discrepancies may occur when summing up, percent changes based on unrounded figures

36 36 External Activities Fully consolidated Investments 1 Airmall 2 Ljubljana 2 Lima Twin Star mil. 9M 15 9M 14 % 9M 15 9M 14 % 9M 15 9M 14 % 9M 15 9M 14 % Revenue ex IFRIC > EBITDA margin adjusted % % > % % 38.4% % 38.1% % 65.3% % 65.4% 8.5 EBIT margin adjusted 4 8.6% 1 9.5% > % % 31.6% % 30.8% % 48.3% % 49.6% 10.9 Result 4 1 > Passengers in mil ) Figures refer to IFRS accounting, not local GAAP, percent changes based on unrounded figures 2) Airmall acquired August 2014 and Ljubljana October 2014

37 37 External Activities At Equity consolidated Investments Antalya Pulkovo Hanover Xi An mil. 9M 15 9M 14 % 9M 15 9M 14 % 9M 15 9M 14 % 9M 15 9M 14 % Revenue ex IFRIC EBITDA margin adjusted % % % 61.1% % 46.2% % % % % 45.8 EBIT margin adjusted % % % 43.5% % 29.5% % 7 6.5% % % 62.6 Result > > Passengers in mil Except for Xi an all figures refer to IFRS accounting, percent changes based on unrounded figures

38 38 Thank you for your Attention!

39 39 Appendix Special Effects 9M 2015 mil. 9M 15 9M 14 Group financial result Market valuation of derivatives & F/X fluctuations Segment External Activities IFRIC 12 revenue AMU Holdings acquired August 2014 Revenue EBITDA EBIT Aerodrom Ljubljana acquired Oct Revenue 26.7 EBITDA 10.9 EBIT 3.4 Air Transport IT disposed April 2015 Revenue EBITDA EBIT Fraport Saudi Arabia ended June 2014 Revenue 9.5 EBITDA 3.1 EBIT 3.0

40 40 Appendix 9M Effects on Aviation EBITDA Balanced with staff cost Mainly FraConnect kickback More provisions released in 2014 Mainly wage increases, thereof: 8 mil. balanced in rev. Mainly: noncapitalizable capex, provisions created & quality measres mil EBITDA 9M 2014 Aviation charges Security revenue Other revenue Other income Staff cost Other EBITDA 9M 2015 Split of aviation charges 9M 2015 % share in aviation charges mil 9M 15 9M 14 % Passenger Security 5,6% Parking 6,1% Takeoff & emission Parking Security Takeoff & emission 20,9% 67,4% Passenger Total Due to commercial rounding slight discrepancies may occur when summing up, percent changes based on unrounded figures

41 41 Appendix Maturity Profile & Cash Position as at September 30, 2015 mil ,5 Fraport debt conditions on average ~ 3.3 % interest rate ~ 4.9 years maturity Bookvalue nominal ,6 Liquidity as of Sep 30, 2015 Financial Liabilities 1132,8 471,9 377,2 517,3 422,8 413,9 238,0 321,2 5,1 2,

42 42 Appendix Insights on Retail Customers 1 TOP 5 BY RETAIL VALUE 2 TOP 5 BY VOLUME 3 ALL OTHER DESTINATIONS Destinations with very high retail value, average passenger volumes, highly defined consumption patterns easy reachability and addressability Destinations with very large passenger volumes, moderate retail value, and moderate reachability and addressability China Russia Japan Brazil South Korea USA Germany Turkey Canada India Large number of destinations (104) with a highly heterogeneous passenger mix, greatly varying retail value and difficult addressability because of the wide range of languages, consumption patterns, gates etc. 8% pax* 31% revenue* 30% pax 17% 62% 52% revenue pax revenue Sales promotions very cost and workintensive Highly targetgroupspecific, individualized communication Cooperation with airlines; shopping assistants; events targeting nationalities; crossselling campaigns; activities in home countries Targetgroupspecific measures (Americans: Valentine s Day, Berlin Wall, October Fest, Christian, Best of Europe; Germans: start of summer holidays, gold coins, dutyfree price information, dutyfree sweepstakes with a car as the main prize) Cooperation with airlines Generic sales promotion approaches with successful campaigns * Source: sales/revenue data of Gebr. Heinemann by destinations 2014

43 43 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 Florian Fuchs Manager Investor Relations & Financial Reporting Maximilian Schultheis Manager Financial & Sustainability Reporting