Analyst Presentation 6M August 7, 2014 Dr Matthias Zieschang, CFO

Transcription

1 Analyst Presentation 6M 2014 August 7, 2014 Dr Matthias Zieschang, CFO

2 Slide 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 forwardlooking 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 forwardlooking 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.

3 Slide 3 Agenda Airmall Retail Acquisition USA Traffic Insight Financials 6M 2014 Outlook 2014

4 Slide 4 Airmall Retail Acquisition USA Fraport expands USA Business Activities 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

5 Slide 5 Airmall Retail Acquisition USA Airmall at a Glance Pittsburgh Baltimore Cleveland Boston 100% Total PAX million 22.5 million 9.1 million 30.2 million Departing PAX million 11.3 million 4.5 million 6.8 million* DOM/INT Share 2013** 98% / 2% 96% / 4% 100 % / occasionally 85% / 15% TOP 3 Airlines (2013)** Southwest Airlines US Airways Delta Air Lines Southwest Airlines AirTran Delta Air Lines United Airlines ExpressJet Chautauqua Airlines Jetblue US Airways American Airlines PAX Growth Forecast CAGR ( )*** 1.84% 2.04% 1.57% 2.21% Managed retail area 7,400 m² 11,100 m² 7,100 m² 8,400 m² Contract term Concession fee Minimum fixed fee + revenue related fee * Only Terminal B and E ** Source: CAPA Centre for Aviation *** Source: FAA

6 Slide 6 Airmall Retail Acquisition USA Airmall Business Model and Financial Snapshot Business Model Airport Authorities Concession fee 2013 Actuals USD 14 million* USD 9 million* Net Revenuess less concession fee EBITDA Rent Sales by Category Subtenants Food & Beverages News & Gifts 18 % 55 % Sales Retail Services 6 % 16 % Pax Duty Free Advertising 4 % 1 % * Figures refer to US GAAP accounting

7 Slide 7 Agenda Airmall Retail Acquisition USA Traffic Insight Financials 6M 2014 Outlook 2014

8 Slide 8 Traffic Insight Frankfurt Airport June 2014 % 6M 2014 % FY 2013 Passengers* in `000 5, , ,037 Movements 41, , ,692 MTOW in `000 tons 2, , ,416 Cargo** in `000 tons , ,095 90% 85% 80% Seat load factor M M 2013 Passenger per movement +2.2 PP 75% 70% 65% 60% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Passenger guidance FY2014: 2-3% upside * Source ACI, commercial traffic only ** Freight & Mail

9 Slide 9 Traffic Insight Frankfurt Airport Traffic Shares 6M 2014 Western Europe Domestic Eastern Europe North America 13% +1% 42% +6% 11% +2% Frankfurt Airport 9% +7% Far East 11% -4% Middle East 6% +2% Africa Latin America 4% -6% 4% -9% Traffic Share vs. previous year Continental 62% +6% Intercontinental 38% -2%

10 Slide 10 Traffic Insight Group Traffic Figures (above 10% stake) IATA Code Airport Share June 2014 previous year YTD 2014 previous year FY 2013 CAGR FRA Frankfurt, Germany 100% 5, % 27, % 58, % LIM Lima, Peru 70% 1, % 7, % 14, % BOJ Burgas, Bulgaria 60% % % 2, % VAR Varna, Bulgaria 60% % % 1, % AYT Antalya, Turkey 51% 3, % 11, % 26, % LED St. Petersburg, Russia 35.5% 1, % 6, % 12, % HAJ Hanover, Germany 30% % 2, % 5, % XIY Xi an, China 24.5% 2, % 13, % 26, %

11 Slide 11 Traffic Forecast Indications Winter Schedule 2014 / 2015 Germany* Upcoming winter schedule 2014/2015 shows good basis for traffic development at FRA Current data shows seat capacity upside between 2-3%; slight movement decline Seat offering of Lufthansa still increasing In addition, current data for other airlines quite promising - seat offering and movements positive * Source: FHKD/Sabre, July 29, 2014, edited by Fraport

12 Slide 12 Agenda Airmall Retail Acquisition USA Traffic Insight Financials 6M 2014 Outlook 2014

13 Slide 13 Group P&L 6M 2014 Underlying Growth in all key Figures mil. 6M 14 6M 13 % Revenue -excl. IFRIC 12 1,122 1,117 1,141 1, EBITDA EBIT EBT Group result EPS in % 25% 0% 31.6% EBITDA margin +3.4PP 28.2% EBIT margin +2.5PP 18.3% 15.8% 6M M M M 2013 Comments Revenue increase due to groupwide traffic development Positive effects from increase in FRA aviation and infrastructure charges as of Jan. 1, 2014 Lima and Twin Star continued to contribute well Lower opex from mild winter Sound increase in EBITDA and margin Negative financial result from market valuation of derivatives Positive Group result and EPS performance Percent change based on unrounded figures

14 Slide 14 Group P&L 6M 2014 Increase in Group EBITDA driven by Aviation + 32 mil. mil EBITDA 6M 2013 Organic revenue IFRIC 12 revenue Other revenue Organic cost of materials IFRIC 12 cost of materials Personnel expenses Other opex EBITDA 6M 2014 Segment share in Group EBITDA 6M 2013 Segment share in Group EBITDA 6M 2014 External Activities & Services 19.0% Aviation Ground 0.6% 26.9% Handling External Activities & Services Ground Handling 18.7% 3.2% 29.5% Aviation 53.5% Retail & Real Estate 48.6% Retail & Real Estate

15 Slide 15 Group P&L 6M 2014 Despite negative Financial result, Group result up! mil mil Group result 6M 2013 EBITDA D&A Financial result Taxes Group result 6M 2014 EPS 6M 2013 EPS 6M 2014 mil 6M 14 6M 13 % Interest income Interest expenses Split of financial result At equity result 4-2 >100 Other result Financial result Comments Less interest income due to lower rates Split of at equity result: Good Antalya performance Pulkovo book value is at 0, therefore no visible impact from negative Pulkovo result in Fraport P&L / financial position Xi an result almost flat Other result down due to market valuation of derivatives Due to roundings differences can occur, when summing up to the 2014 Group result.

16 Slide 16 Group Asset & Financial Situation Strong FCF Recovery vs. PY 2) Free Cash Flow Liquidity Gross debt Net debt Equity Gearing mil. 4,239 4,114 2,871 2,904 3,117 3,101 97% 95% 1,368 1, ) Dec. 31, 2013 June 30, 2014 Substantial increase in free cash flow Main driver: Less FRA capex Less inv. in airport operating projects Decline in liquidity to 1.21 bn due to debt repayment Corresponding decline in gross debt Net debt at 2.9 bn. reflecting positive FCF Equity decrease due to dividend payment Gearing further improving Outlook 2014: Target Capex FRA: ~ 300 mil. Solid positive FCF expected 1) Figure for 6M2013 2) Net debt divided by equity less non-controlling interests and profit earmarked for distribution

17 Slide 17 Cash Flow 6M 2014 Capex Split mil. Operating cash flow Intangible assets PPE Airport operating projects Investment property Free cash flow Cash Flow 6M 2014 Cash Flow 6M OCF flat due to about 30 mil. more taxes paid for completed audits Less capex despite ongoing preparation for Terminal 3 Decline in capex for airport operating projects reflected lower spend for Varna & Burgas Investment property mainly refered to CASA Due to roundings differences can occur, when summing up to free cash flow

18 Slide 18 Segment Aviation Growing Operations mil. 6M 14 6M 13 % Comments Revenue Airport charges Security serv. Other Revenue increase due to FRA traffic & increase in aviation charges as of Jan. 1, 2014 Security rev. helped by price effects EBITDA EBIT Employees 6,080 6, Less costs & energy expenses from mild winter led to strong increase in EBITDA Strong EBIT increase 30% 20% 10% 0% EBITDA margin +3.5PP 25.0% 21.5% 11.0% EBIT margin +3.6PP 7.4% 6M M M M 2013 Other 4.9% Security services 13.1% Security charges 4.5% Parking charges 5.4% Landing charges 7.2% Noise charges Revenue split 6M % 54.0% Passenger charges Percent change based on unrounded figures

19 Slide 19 Segment Retail & Real Estate 6M Performance dampened by adverse Effects mil. 6M 14 6M 13 % Revenue Retail Real Estate Parking Other EBITDA EBIT Employees Comments Dowturn in revenue due to weak performance in retail and other revenue Real Estate down due to lower need for utilities from mild winter Offsetting effects on cost side EBITDA and EBIT flat on % 60% 30% 0% EBITDA margin +3.5PP 78.8% 75.3% EBIT margin +2.0PP 59.9% 57.9% 6M M M M 2013 Revenue split 6M 2014 Other 0.9% Parking 17.2% Real Estate 41.1% 40.8% Retail Percent change based on unrounded figures

20 Slide 20 Segment Retail & Real Estate Spend per Pax down: less Intercont Traffic & strong EUR Retail revenue per Passenger 6M 2012: M 2013: M 2014: Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 mil. Shopping Services Advertis

21 Slide 21 Business Development Main Impacts on Retail Shopping Behaviour Intercontinental traffic down F/X with ongoing effect on shopping behavior No space upside New Chinese anticorruption law Market Overview on prime Retail Destination in first half 2014 vs Total departing and arriving passengers 6M2014 6M2013 PY Brazil 326, , % South Korea 262, , % Russia 565, , % China 664, , % Japan 427, , %

22 Slide 22 Segment Ground Handling Operational Increase, EBIT rise but still negative mil. 6M 14 6M 13 % Revenue Ground Handl. Infrastructure EBITDA 11 2 >100 EBIT Employees 9,020 9, Comments Growing revenue due to infrastructure services helped by price effects Despite wage increase EBITDA up, reasons: optimized staff mix and mild winter EBIT increase by 10 mil. but still negative 10% EBITDA margin +2.9PP EBIT margin -PP Revenue split 6M % 0% 3.5% 0.6% -% -% 6M M M M 2013 Central Infrastructure 41.8% Ground Handling 58.2% Percent change based on unrounded figures

23 Slide 23 Segment External Activities & Services Sound underlying Operations lift up EBITDA mil. 6M 14 6M 13 % Revenue -excl. IFRIC EBITDA EBIT Comments Ongoing growth in Lima Varna & Burgas with good growth at season s start Higher D&A from Terminal inaugurations in Varna & Burgas Employees 4,460 4, EBITDA margin +8.2PP EBIT margin +3.7PP Revenue split 6M % 20% 39.5% 31.3% 21.3% 17.6% Others 31.5% Lima 59.4% 0% 6M M M M 2013 Twin Star 9.1% Percent change based on unrounded figures

24 Slide 24 External Activities Antalya Airport Figures before Consolidation mil. 6M 14 6M 13 % Revenue Airport charges Retail EBITDA Margin % % EBIT Margin % % EBT 10 2 >100 Result Percent change based on unrounded figures

25 Slide 25 External Activities Lima Airport* mil. 6M 14 6M 13 % Revenue Airport charges Retail -excl. IFRIC EBITDA Margin Underlying margin % 38.1% % 36.7% EBIT Margin Underlying margin % 30.6% % 29.4% Employees * Figures refer to IFRS accounting, not local GAAP, percent changes based on unrounded figures

26 Slide 26 External Activities Twin Star Varna & Burgas Airport mil. 6M 14 6M 13 % Revenue Airport charges Retail -excl. IFRIC > EBITDA Margin Underlying margin % 47.1% % 39.2% EBIT Margin Underlying margin 2 9.6% 9.8% 2 3.5% 11.5% Employees Percent change based on unrounded figures

27 Slide 27 Agenda Airmall Retail Acquisition USA Traffic Insight Financials 6M 2014 Outlook 2014

28 Slide 28 Outlook 2014 Unchanged Outlook! FY2013 (restated) Outlook 2014 Passengers FRA 58 mil. Growth between 2% and 3% Revenue bn. Revenue growth up to ~ 2.45 bn. EBITDA mil. Between ~ 780 and ~ 800 mil. EBIT mil. Growth up to ~ 500 mil. Group Result* mil. Slightly above 2013 level Dividend proposal** 1.25 per share At least stable *Group Result before minorities ** Dividend proposal for FY 2013 subject to approval of AGM 2014

29 Thank you for your Attention!

30 Slide 30 Group P&L 6M 2014 mil. 6M 14 6M 13 Change % Change Revenue 1, , Change in work-in-process Other internal work capitalized Other operating income Total revenue 1, , Cost of materials Personnel expenses Other operating expenses EBITDA D&A EBIT Interest income Interest expenses Result from at equity consol. companies Other financial result Financial result EBT Taxes on Income Group result Minority result Fraport shareholders result

31 Slide 31 Group Cash Flow Statement 6M 2014 mil. 6M 14 6M 13 Profit attributable to Fraport shareholders Profit attributable to non-controlling interests Adjustments for Taxes on income Depreciation and amortization Interest result Disposal of non-current assets Others Fair value changes in at equity comp Changes in inventories Changes in receivables and financial assets Changes in liabilities Changes in provisions Operating activities Financial activities Interest paid Interest received Taxes on income paid CF from operating activities Investments in airport operating projects Capex for other intangible assets Capital expenditure for ppe mil. 6M 14 6M 13 Investment property Dividends from at equity companies Proceeds from disposal of non-current assets CF used in investing activities w/o investments in cash deposits and sec. Financial investments in securities and promissory note loans Proceeds from disposal of securities and promissory note loans Decrease of time deposits with a duration of more than 3 months CF from/used in investing activities Dividends paid to Fraport shareholders Dividends paid to non-controlling interests Capital increase Cash inflow from long-term financial debt Repayment of long-term financial liabilities Changes in short-term financial liabilities CF used in financing activities Change in restricted cash - - Change in cash and cash equivalents F/X effects on cash and cash equivalents Cash and cash equivalents as at June,

32 Slide 32 Group Financial Position 6M 2014 Assets in mil. 6M 14 YE 13 Goodwill Investments in airport operating projects Other intangible assets Property, plant and equipment 5, ,962.3 Investment property Investments in at equity companies Other financial assets Other receivables and financial assets Income tax receivables Deferred tax assets Total non current assets 7, ,704.8 Inventories Trade accounts receivable Other receivables and financial assets Income tax receivables Cash and cash equivalents Current assets 1, ,131.0 Total assets 8, ,835.8 Liabilities & equity in mil. 6M 14 YE 13 Issued capital Capital reserve Revenue reserve 1, ,558.7 Equity attr. to Fraport shareholders 3, ,071.0 Non-controlling interests Shareholders equity 3, ,116.7 Financial liabilities 3, ,948.1 Trade accounts payable Other liabilities Deferred tax liabilities Provisions for pensions and similar oblig Provisions for income taxes Other provisions Non-current liabilities 4, ,903.5 Financial liabilities Trade accounts payable Other liabilities Provisions for income taxes Other provisions Current liabilities 1, Total liabilities & equity 8, ,835.8

33 Slide 33 Special & Extraordinary Effects 6M 2014 mil. 6M 14 6M 13 Group level Financial result: Market valuation of derivatives & F/X fluctuations mil mil. Segment level Retail & Real Estate Revenue: Property sales Mönchhof area 4.0 mil mil.

34 Slide 34 Financial Position Maturity Profile & Cash Position as of June 30, 2014 mil. 4,000 3,500 4,114 Fraport debt conditions on average ~ 3.8 % interest rate ~ 5.3 years maturity 3,000 2,500 2,000 1,500 1, ,210 Liquidity Financial as of June Liabilities 30, ,

35 Slide 35 Restated FY 2013 IFRS 11 Accounting Change as of Jan. 1, 2014 Group Figures FY 2013 Restated Figures FY ,561 2, Revenue EBITDA EBIT EBT Group result Revenue EBITDA EBIT EBT Group result External Activities & Services FY 2013 Restated Figures FY Revenue EBITDA EBIT Revenue EBITDA EBIT

36 Slide 36 Restated FY 2013 IFRS 11 Accounting Change as of Jan. 1, 2014 Figure FY 2013 Restated FY 2013 Change Operating cash flow 575 mil. 454 mil mil. Free cash flow 73 mil. 17 mil mil. Total assets 9,523 mil. 8,836 mil mil. Shareholders equity 3,099 mil. 3,117 mil mil. Net debt 2,975 mil. 2,871 mil mil. Gearing ratio 101% 97% -4PP

37 Investor Relations Team Contact Details 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 Tanja Nagel Manager Investor Relations & Financial Reporting