UBS Transport Conference

Transcription

1 UBS Transport Conference Christoph Nanke / Head of Finance & IR Tanja Nagel / IR September 10, 2018 / Frankfurt

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 - Business Update - Traffic Performances - H Financials - FY 2018 Outlook 3

4 Business Update Operational and Financial Highlights Frankfurt Internationals Strong Traffic Performance continues Lufthansa & LCC s key Drivers for Growth Building Permit for Pier G received Aviation & Car Parking with clear Revenue Growth Retail still impacted by F/X, Passenger Mix and Queuing Times New Hiring's & Extra Shifts burdened Ground Handling Results High Passenger Growth across Portfolio Antalya with outstanding Recovery Takeover of Brazilian Airport Concessions Good Construction Progress in Greece New Contracts awarded to Fraport US Agreement to sell Hanover Stake signed USD & BRL Depreciation adversely impacted Lima, US and Brasil EUR Performances 4

5 Business Update Terminal 3 Overview Permit to Construct Pier G received 2018 / 08 / 16 Planned Inauguration: 2021 on. I ~18 to ~19 mil. Passengers Capacity 1 I EUR c.3.2 bn. Invest 1 Rough capex phasing mil Pier G T3 Pier G 1st stage 2nd stage 5 Terminal 3 Pier G: 1st stage Planned inauguration: 2021 Passenger capacity: ~4 to 5 mil. p. a. Parking positions: 9 Flexible Schengen/Non-Schengen operations due to swing gates Capex: about 200 mil. Terminal 3: Main Hall and Piers H & J Planned inauguration: 2023 Passenger capacity: ~14 mil. p. a. Parking positions: m Pier H for Schengen operation 600m Pier J for Non-Schengen operation Capex: ~ 3 bn. 1 Piers H & J and 1st stage of Pier G

6 Business Update New Shopping Concept in Pier G Pier G 1st stage 2nd stage Target: Fitting LCC passengers needs! Focus on low to mid-range price segment Focus on Food & Beverage Flexibility of offering in marketplace and shops 6

7 Business Update F/X, Queuing and Passenger Mix impacted Retail Business FRA Retail Revenue per Passenger in % vs PY s Quarters Adjustments to FRA Retail Concepts to be presented with Q3 Results Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Q Performance of EUR vs. selected Retail Currencies Q1-1.6% Q2 vs. Q1 +6.8% Q3 vs. Q2 +2.7% Q4 vs. Q3 +1.5% Q1 vs. Q4 +0.1% Q2 vs. Q1-0.8% 7

8 Business Update Antalya on Track to reach all-time High! Following 2016 crisis: Antalya fully recovered within 2 Years Passengers per year in mil : All time high at 28.3 mil Financials in mil Revenue EBITDA Net result : sharp drop due to ban on charter traffic & geopolitics 2017: recovery from Russian travelers 2018: recovery also from Western European travelers All time high passengers and net result expected! % values before consolidation and Group adjustments

9 Business Update Brazilian Airport Concessions started Porto Alegre Terminal building Parking Cargo TAP Maintenance Base General Aviation Utilities Traffic Concession Purchase price Investment obligations PAX 2017: 8.0 million 25 years 290.5m BRL upfront (~ 85m) 91.5m BRL spread between year 6 and concession end +5% p.a. revenue-related component RWY refurbishment & extension Terminal refurbishment & extension Apron positions Retail expansion Fortaleza Terminal Parking Cargo Military General Aviation Utilities Traffic Concession Purchase price Investment obligations PAX 2017: 5.9 million 30 years 425.0m BRL upfront (~ 125m) 1,080.8m BRL spread between year 6 and concession end +5% p.a. revenue-related component RWY refurbishment & extension Terminal refurbishment & extension Apron positions Retail expansion 9

10 Business Update Greek Construction Timeline Good first operational year with ~10% passenger growth in 2017 Also 2018 with outstanding traffic result: YTD +~10% Operational quick wins implemented Main construction works started: Half of the airports to be ready in 2019: Zakynthos, Kavala and Chania (before Summer), Kefalonia, Aktio, Samos and Skiathos (post Summer) Airports to be completed in 2020: Mytilini, Kos, Rhodes and Santorini Final round of airports to be ready for summer 2021: Thessaloniki, Corfu and Mykonos New Thessaloniki Terminal New Kavala Terminal 10

11 Business Update New US Businesses JFK Jet Blue Terminal Concession to manage JFK, T5, Retail areas started April 2018 Concession contains all F&B and shopping areas of existing T5 ~15 mil. passengers handled in 2017 Gradual takeover of retail areas Contract signed August 15, 2018 Takeover of Retail area management as of February 2019 ~14 mil. Passengers handled in 2017 Fraport USA to be active at 5 US airports Nashville International Airport 11

12 Business Update Divestment of Hanover Stake Ad hoc Announcement dated 2018 / 08 / 06 Agreement to sell 30% Hanover stake to icon signed August 6, 2018 Purchase price fixed at mil. Book value as of June 30, 2018: 24.5 mil. Out of disposal ~ 85 mil. positive EBT impact expected, thereof: ~ 25 mil. EBITDA gain ~ 60 mil. positive impact on Result from at equity accounted companies Co-shareholders still can exercise pre-emption right Closing of transaction expected for q3/q Hanover 2017 IFRS accounts Revenue EBITDA Result Net debt 100% values in mil Transaction EBITDA multiple:

13 Agenda - Business Update - Traffic Performances - H Financials - FY 2018 Outlook 13

14 Traffic Performances Positive Passenger Momentum keeps on Airport operations Fraport Share JUL 2018 D previous year YTD 2018 D previous year FY 2017 D previous year Frankfurt 100% 6, % 39, % 64, % Brasil 100% 1, % 8, % 13, % Ljubljana 100% % 1, % 1, % Greek regionals 73.4% 5, % 15, % 27, % Lima 70.01% 2, % 12, % 20, % Twin Star 60% 1, % 3, % 4, % Antalya 51% 4, % 17, % 26, % Hanover 30% % 3, % 5, % St. Petersburg 25% 2, % 10, % 16, % Xi an 24.5% 4, % 25, % 41, % 14

15 Traffic Performances Frankfurt however will now face harder Comps 2017 Frankfurt passenger growth in % vs. PY Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec -2% Winter Capacities +2% Summer Capacities +8% Winter Capacities 2018 Frankfurt passenger growth in % vs. PY Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec +8% Winter Capacities +8% Summer Capacities 15

16 Agenda - Business Update - Traffic Performances - H Financials - FY 2018 Outlook 16

17 H Revenue Bridge Internationals drive Revenue Increase, FRA with solid Growth in mil. FRA Segments: +19mn International Act & Services: +75mn +93 1, , , H Av. Revenue charges w/o IFRIC 12 Sec. Parking Retail Real Land GH Other Greece Brasil Lima Twin Slovenija USA Other H IFRIC Estate sales Star Revenue 12 w/o IFRIC 12 H Revenue Due to commercial rounding discrepancies may occur when summing up 17

18 H EBITDA Bridge Internationals key Driver +32mn, FRA +9mn FRA: +10m Property sales FRA: m FRA subs. subsidiaries Restructuring gain: INT: -- 16m Greece m WagesAG AG Employees in Parent company - 13m Brazil Brasil m FraSec + 3m USA - -3m 3m Extra shifts + 2m Lima +14m Volume AG AG Other: + 1m Other + + 3m 3m Restructuring provision INT: - 6m Brazil INT: - -7m 7m Brazil - 2m Greece -- 3m 3m Greece Other: + 1m Other: - 2m EBITDA H Revenue w/o IFRIC 12 + Other income Cost of materials excl. IFRIC 12 Personnel cost Other opex EBITDA H Due to commercial rounding discrepancies may occur when summing up 18

19 H Group Result Bridge EBITDA Growth compensates Greece s Q1 Capital Cost FRA: - 1m INT: -12m Greece - 7m Brazil + 5m USA + 2m Lima Interest result: -24m -mainly: -22m Greece - 5m Brasil + 3m Lima At equity result: - 4m -mainly: + 6m Antalya - 2m FCS - 2m Retail JV - 7m JV tax treatment Other result: + 1m Group result H EBITDA D&A Financial result Taxes Group result H EPS H EPS H Due to commercial rounding discrepancies may occur when summing up 19

20 H Cash Flow & Net Debt Bridge Working Capital Changes and higher Capex turn FCF negative in mil ,698 3, Free Cash Flow 6M 2018: - 23m Net debt FY 2017 OCF Brasil capex Greece capex Lima capex Fixed FRA concession expansion payments & other holdings Other capex Dividends Dividends from paid at equity investments Misc. Net debt Conso. Jun 30, 18 & F/X effects Comments mil. H1 18 H1 17 % 20 OCF lower due to working capital changes, w/o changes in working capital: OCF up by 7% FCF negative due to increasing Brasil, Greece and FRA capex FCF and dividend payout led to net debt of 3.7 bn. Group equity about 4.0 bn. Gearing ratio at c. 96% OCF before WC changes OCF after WC changes Capex Free cash flow Net debt 3,698 3, Equity 4,012 4, Gearing ratio PP Capex figures including downpayments to EPC companies 1 = Operating cash flow definition adjusted to exclude fixed concession payments, PY values restated 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 = OCF Capex + Dividends from at equity investments 4 = YE 2017 values

21 Agenda - Business Update - Traffic Performances - H Financials - FY 2018 Outlook 21

22 FY 2018 Outlook Updated Outlook 2017 Results 2018 Outlook Passengers FRA 64.5 mil. Slightly above 69 mil. Revenue excl. IFRIC bn Up to ~ 3.1 bn EBITDA EBIT Group result before minorities 1,003 mil. 643 mil. 360 mil. Upper level of ~ 1,080 to ~ 1,110 mil. guidance + contribution from Hanover sale Upper level of ~ 690 to ~ 720 mil. guidance + contribution from Hanover sale Upper level of ~ 400 to ~ 430 mil. guidance + contribution from Hanover sale Dividend proposal 1.50 / share Increase 22

23 Thank you for your Interest! Please consider the Environment before printing IR Contact T: F: M: Postal Frankfurt Airport Services Worldwide Frankfurt am Main Germany 23

24 Appendix Group Results million H H Revenue 1, ,355.4 Revenue w/o IFRIC 12 1, ,345.2 Change in work-in-process Other internal work capitalized Other operating income Total revenue 1, ,387.9 Total revenue w/o IFRIC 12 1, ,377.7 Cost of materials Cost of materials w/o IFRIC Personnel expenses Other operating expenses EBITDA Depreciation 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 Earnings per 10 share in basic diluted

25 Appendix Group Cash Flow million H H Profit attributable to shareholders of Profit attributable to non-controlling interests Adjustments for Taxes on income Depreciation 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 Financial activities Interest paid Interest received Paid taxes on income Cash flow from operating activities million H H Cash flow from operating activities Investments in airport operating projects ,325.2 Investments for other intangible assets Capital expenditure for property, plant, and equipment Investments for "Investment property" Investments in companies for using the equity method Dividends from companies for using the equity method Proceeds from disposal of non-current assets Cash flow used in investing activities excluding investments in cash deposits and securities ,440.7 Financial investments in securities and promissory note loans Proceeds from disposal of securities and promissory note loans Decrease in time deposits with a term of more than three months Cash flow used in investing activities ,213.5 Dividends paid to non-controlling interests Capital contributions for non-controlling interests Capital increase Capital contributions for non-controlling interests Cash inflow from long-term financial liabilities 2.0 1,065.0 Repayment of long-term financial liabilities Changes in current financial liabilities Cash flow used in/from financing activities Changes in restricted cash and cash equivalents Change in cash and cash equivalents Cash and cash equivalents as at January 1 and April Foreign currency translation effects on cash and cash equivalents Cash and cash equivalents as at June

26 Appendix Group Balance Sheet Assets million June 30, 2018 December 31, 2017 Liabilities and equity million June 30, 2018 December 31, 2017 Non-current assets Goodwill Investments in airport operating projects 2, ,621.1 Other intangible assets Property, plant and equipment 5, ,921.5 Investment property Investments in companies accounted for using the equity method Other financial assets Other receivables and financial assets Deferred 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 Total 11, ,832.4 Shareholders equity Issued capital Capital reserve Revenue reserves 2, ,345.7 Equity attributable to shareholders of 3, ,868.1 Non-controlling interests , ,028.7 Non-current liabilities Financial liabilities 3, ,955.6 Trade accounts payable Other liabilities 1, ,090.1 Deferred 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 Total 11, ,

27 Appendix 7M 2018 Frankfurt Passenger Split North America D 13% +3% Western Europe D Latin America D 3% 0% 44% +14% Domestic D Africa 11% +5% Frankfurt Airport 4% D +10% Eastern Europe D 9% +16% Middle East D 5% +3% Far East D 10% 0% Average seat load factors 7M 78.9% 78.7% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Continental D 64% +13% Intercontinental D 36% +2% 27

28 Appendix Aviation in mil. Increasing effects Decreasing effects EBITDA 6M 2017 Aviation charges 1 Security services Other revenue Other income Staff cost Other opex EBITDA 6M 2018 Comments P&L in mil. 6M 18 6M 17 % Increase in airport charges due to traffic growth Security services up due to new contracts in Berlin & Cologne and FRA volumes Increase in staff cost due to security business: ~ 10m Staff number outside security business down ~ 3m Strong growth in EBITDA & EBIT Revenue Airport charges Security services Other revenue EBITDA EBIT Employees 6,124 5, Aviation charges including reimbursements to airlines based on growth incentives Due to commercial rounding discrepancies may occur when summing up, percent changes based on unrounded figures

29 Appendix Retail & Real Estate Increasing effects in mil. Decreasing effects EBITDA 6M 2017 Retail Real Estate Parking Other revenue Other income Staff cost Other opex EBITDA 6M Comments P&L in mil. 6M 18 6M 17 % Parking revenue up due to passenger increase Real Estate down due to energy contract awarded to competitor Retail revenue per Passenger down due to: Disproportionate high growth of cont. passengers Queuing: i.a., 9% more passengers; -3% shoppers F/X: those who shopped DTF spend c.4% less Less advertising revenue due to 2017 fairs Other revenue down due to less land sales Less opex due to less property sales & energy supply Revenue Retail Real Estate Parking Other revenue EBITDA EBIT Employees Due to commercial rounding discrepancies may occur when summing up, percent changes based on unrounded figures

30 Appendix Frankfurt Retail Revenue per Passenger Including Heinemann JV Retail revenue per Passenger FY 17: 3.47 YTD 18: FY 17: M 18: 3.06 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Retail revenue streams Top 5 Spenders China Russia S.Korea Vietnam Brazil Left columns = % change in volumes vs. 6M 2017 Right columns = % change in spending vs. 6M 2017 Top 5 Volumes Q1 Q2 Q3 Q4 Q1 Q2 Shopping US Germany Turkey UAE India Services Advertising DTF-JV Destination tracked not nationality Left columns = % change in volumes vs. 6M 2017 Right columns = % change in spending vs. 6M 2017 Source: sales/revenue data of Gebr. Heinemann by destinations. -6

31 Appendix Ground Handling in mil. Increasing effects Decreasing effects EBITDA 6M 2017 GH revenue Infrastructure charges Other revenue Other income Staff cost Other opex EBITDA 6M 2018 Comments P&L in mil. 6M 18 6M 17 % MTOW, Movements & Passengers drove revenue increase More staff hired in FraGround & FraCareS subsidiaries to handle traffic increase resulted in more staff cost (~16mn), less cost in despite higher wages Higher staff cost almost offset revenue growth, EBITDA & EBIT slightly up Revenue Ground Handling Infrastructure Other revenue EBITDA EBIT Employees 8,966 8, Due to commercial rounding discrepancies may occur when summing up, percent changes based on unrounded figures

32 Appendix International Activities & Services EBITDA in mil. Increasing effects Decreasing effects EBITDA 6M 2017 Brasil Greece Twin Star Ljubljana USA Lima USA Others EBITDA 6M 2018 Comments P&L in mil. 6M 18 6M 17 % First-time Fortaleza + Porto Alegre contribution Traffic growth improved Greek revenue and EBITDA contribution Positive Lima performance; +11% local USD EBITDA offset by negative F/X translation Negative US performance due to loss of Boston contract compensated by Ljubljana and Twin Star Revenue excl. IFRIC EBITDA EBIT Employees 5,877 5, Solid EBITDA & EBIT increase Due to commercial rounding discrepancies may occur when summing up, percent changes based on unrounded figures

33 Appendix Performance of Major Airport Investments Fully consolidated Group companies Share in % Revenue in mil. 1 EBITDA in mil. EBIT in mil. Result in mil. 6M M 2017 Δ % 6M M 2017 Δ % 6M M 2017 Δ % 6M M 2017 Δ % Fraport USA Fraport Slovenija > >100 Fortaleza + Porto Alegre Fraport Greece > Lima Twin Star >100 Group companies accounted for using the equity method Share in % Revenue in mil. 1 EBITDA in mil. EBIT in mil. Result in mil. 6M M 2017 Δ % 6M M 2017 Δ % 6M M 2017 Δ % 6M M 2017 Δ % Antalya 2 51/ > Hannover >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 6M 2018: 148.9m (6M 2017: 151.4m); Fraport Greece 6M 2018: 92.3m (6M 2017: 56.8m); Fortaleza + Porto Alegre 6M 2018: 43.8m; Antalya 6M 2018: 109.8m 2 Share of voting rights: 51%, Dividend share: 50%. 33

34 Appendix Maturity Profile & Cash Position as at June 30, 2018 mil. 5,000 4,500 4,694 Fraport debt conditions on average ~ 3.1% interest rate 4,000 3,500 3,000 2,500 2,000 Book values Nominal values of debt repayment 1,500 1, Liquidity as of Jun 30, 2018 Financial Liabilities 1,128 1,