dbaccess Berlin Conference

Transcription

1 dbaccess Berlin Conference Dr. Matthias Zieschang / CFO Christoph Nanke / Head of Finance & IR June 6, 2018 / Berlin

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 Growth Year Steady operational Growth 2 Adapting FRA Infrastructure for Future Growth 3 Further Enhancement of International Portfolio 4 Financial Outlook: Operational Growth positively impacts Financials 3

4 Steady operational Growth Passenger Numbers with strong upward Trend Airport operations Fraport Share APR 2018 D previous year YTD 2018 D previous year FY 2017 D previous year Frankfurt 100% 5, % 20, % 64, % Brasil 100% 1, % 4, % 13, % Ljubljana 100% % % 1, % Greek regionals 73.4% 1, % 3, % 27, % Lima 70.01% 1, % 7, % 20, % Twin Star 60% % % 4, % Antalya 51% 1, % 4, % 26, % Hanover 30% % 1, % 5, % St. Petersburg 25% 1, % 4, % 16, % Xi an 24.5% 3, % 14, % 41, % 4

5 Steady operational Growth FRA: Strongest Momentum since Financial Crisis Passengers in mil. 64,5 Outlook: ~67 to ~ ,4 57,5 58,0 59,6 61,0 60,8 53, Estimate Frankfurt adding up to 8 Million Passengers in just 2 Years 5

6 Steady operational Growth FRA booming thanks to LCC s and Legacy Carriers Low Cost Evolution +1 route +4 routes +1 route +17 routes +3 routes +1 route +1 route +14 routes +42 routes Jun 16: WOW Air start of operation Mar 17: Ryanair start of operation, 2 a/c stationed May 17: Wizz Air start of operation Sept. 17: Ryanair route additions, 7 a/c stationed Oct. 17: Ryanair route additions, 7 a/c stationed Dec. 17: Wizz Air route addition Jan. 18: EasyJet start of operation Mar. 18: Ryanair route additions, 10 a/c stationed in last 2 Years BUT: Legacy Growth outpaced LCC s in 2017 and will keep Momentum in

7 Steady operational Growth FRA YTD Growth focusing on Short-haul North America D Western Europe Domestic D 11% +3% Latin America D 4% -1% 43% +14% D 11% +5% Frankfurt Airport Africa 5% D +11% Eastern Europe D 9% +16% Middle East D 6% +3% Far East D 11% +3% Average seat load factors 4M 76.4% 76.2% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Continental D 63% +12% Intercontinental D 37% +3% 7

8 Adapting FRA Infrastructure for Future growth FRA Growth proves Need for Expansion Passengers per year in mil. 80 To bridge temporary overload: More security lanes added in 2018 and more planned for 2019 T3 Piers H&J ~14 mil. capacity from 2023 on mil. Passengers per year (temporary overload) T3 Pier G: up to 5 mil. capacity from 2020 on ,5 ~68.5 ~ mil. Passengers per year (designed capacity) 56,4 57,5 58,0 59,6 61,0 60,8 Pier A-Plus (2012) 55 53,0 Hall C and CD-Pier (2008) 50 Capacity T1+T Year 8

9 Adapting FRA Infrastructure for Future growth Terminal 3: Piers G, H & J Planned Inauguration: 2020 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 9 Terminal 3 Pier G: 1st stage Planned inauguration: 2020 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

10 Adapting FRA Infrastructure for Future Growth New Shop 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 10

11 Further Enhancement of International Portfolio Takeover of Brazilian Airports 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 16

12 Further Enhancement of International Portfolio Greece Refurbishment started Good first operational year 2017 Passenger growth recorded among all 14 airports: combined volumes up >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 12

13 Further Enhancement of International Portfolio Antalya back on Growth Path Following 2016 crisis: Antalya fully recovered within 2 Years Passengers per year in mil ,3 26,3 2014: all time high at 28.3 mil ,2 18,7 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 expected! % values before consolidation and Group adjustments

14 Further Enhancement of International Portfolio New York JFK T5 Retail Concession New concession won by Fraport USA: NYC JFK Airport, Terminal 5 JFK T5 home of JetBlue Airways Master retail concession contains all F&B and shopping areas of existing T5 Concession started: 1 April 2018 ~15 mil. passengers in 2017 Gradual takeover of retail areas Fraport USA again active at 4 airports 14

15 Financial Outlook Operational Growth positively impacts Financials 2017 Results 2018 Outlook Passengers FRA 64.5 mil. Between ~67 mil. and ~68.5 mil. Revenue excl. IFRIC bn Up to ~ 3.1 bn EBITDA EBIT Group result before minorities 1,003 mil. 643 mil. 360 mil. Between ~ 1,080 mil. and ~ 1,110 mil. Between ~ 690 mil. and ~ 720 mil. Between ~ 400 mil. and ~ 430 mil. Dividend proposal 1.50 / share Increase 15

16 Financial Outlook Operational Growth positively impacts Financials EBITDA in mil. Up to ~40 ~ -20 Mainly contains: 2017/18 property sales, FRA 2018 traffic ranges, Brasil 2017 start up cost, FRA staff provisions ~1,110 ~45 Up to ~20 ~1,080 1, EBITDA Brasil Greece Frankfurt FRA Wages Miscellaneous 2018 EBITDA outlook 16

17 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 17

18 Appendix Group Results million Q Q Revenue Revenue w/o IFRIC Change in work-in-process Other internal work capitalized Other operating income Total revenue Total revenue w/o IFRIC 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

19 Appendix Group Cash Flow million Q Q 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 Q Q Cash flow from operating activities Investments in airport operating projects Investments for other intangible assets Capital expenditure for property, plant, and equipment Investments for "Investment property" Investments in companies accounted for using the equity method Dividends from companies accounted 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 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/from investing activities Dividends paid to non-controlling interests Capital contributions for non-controlling interests Cash inflow from long-term financial liabilities Repayment of non-current financial liabilities Changes in current financial liabilities Cash flow from financing activities Change in cash and cash equivalents Cash and cash equivalents as at January Foreign currency translation effects on cash and cash equivalents Cash and cash equivalents as at March ,061.2

20 Appendix Group Balance Sheet Assets million March 31, 2018 December 31, 2017 Liabilities and equity million March 31, 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 Total 10, ,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 10, ,

21 Appendix Operational Growth positively impacts key Financial Data Revenue Bridge in mil. FRA Segments: +21mn International Act & Services: +35mn Q Revenue w/o IFRIC 12 Av. charges Sec. Parking Retail Real GH Other Greece Brasil Lima Twin Slovenija USA Other Q IFRIC Estate Star Revenue 12 w/o IFRIC 12 Q Revenue Due to commercial rounding discrepancies may occur when summing up 21

22 Appendix Operational Growth positively impacts key Financial Data EBITDA Bridge: FRA +26mn I Internationals: +12mn FRA: + 5m Property sale + 1m Other FRA: INT: - 4m Ext. services + 3m Energy services - 10m Greece - 7m Brazil + 3m USA + 2m Lima + 1m Other FRA: INT: - 5m FraGround - 4m Wages AG - 3m FraSec + 7m Volume AG + 5m Restructuring - 4m Brazil - 2m Greece - 1m Other FRA: INT: + 0m - 3m Brazil - 2m Greece in mil EBITDA Q Revenue w/o IFRIC 12 Other income Cost of materials excl. IFRIC 12 Personnel cost Other opex EBITDA Q Due to commercial rounding discrepancies may occur when summing up, percent changes based on unrounded figures

23 Appendix Operational Growth positively impacts key Financial Data Group Result Bridge: EBITDA Growth compensates Greece s Q1 Capital Cost in mil. FRA: +2m INT: -11m Greece - 3m Brazil + 1m Lima + 1m USA Interest result: -18m -mainly: -18m Greece - 3m Brazil + 3m Lima Associates: - 6m -mainly: - 2m Antalya - 1m Retail JV Other result: - 2m Group result Q EBITDA D&A Financial result Taxes Group result Q EPS Q EPS Q Due to commercial rounding discrepancies may occur when summing up, percent changes based on unrounded figures

24 Appendix Working Capital Changes and higher Capex turn FCF negative in mil. 3, ,586 Free Cash Flow: - 67m Net debt FY 2017 OCF Brasil capex Greece capex Lima capex Fixed FRA concession expansion payments & other holdings FRA other capex Dividends from associated companies Dividends paid Misc. Net debt Conso. Q & F/X effects Comments mil. Q1 18 Q1 17 % 24 OCF lower due to working capital changes FCF negative due to increasing Brazil, Greece and FRA capex Net debt below 3.6 bn. Group equity about 4.0 bn., reflecting Gearing ratio of c. 96% Equity ratio at 34% Operating cash flow Capex Free cash flow² Net debt 3,586 3, Equity 4,035 4, Gearing ratio PP Capex figures including downpayments to EPC companies 1 = Capex in airport operating projects, other intangible assets, PPE, investment property, and at equity investments. No consideration of one-time payments for acquisitions. 2 = Operating cash flow Capex + Dividends from at equity investments

25 Appendix Aviation in mil. Increasing effects Decreasing effects EBITDA Q Aviation charges* Security services Other revenue Other income Staff cost Other opex EBITDA Q Comments P&L in mil. Q1 18 Q1 17 % Increase in airport charges due to traffic growth Security services up due to FRA volumes and new contracts in Berlin & Cologne Increase in staff cost due to security business (~ 3m), staff number outside security business down (~ 2m) Revenue growth fully translated in EBITDA & EBIT growth Revenue Airport charges* Security services Other revenue EBITDA EBIT Employees 6,075 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

26 Appendix Frankfurt Retail Revenue per Passenger Retail revenue per Passenger Including Heinemann JV Top 5 Spenders FY 17: 3.47 YTD 18: ,76 3,57 3,28 3,02 3,27 China Russia S.Korea Vietnam Brazil FY 17: 3.37 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Retail revenue streams Left columns = % change in volumes vs. Q Right columns = % change in spending vs. Q Top 5 Volumes -18 Q1 Q2 Q3 Q4 Q1 Shopping US Germany Turkey UAE India Services Advertising DTF-JV Destination tracked not nationality Left columns = % change in volumes vs. Q Right columns = % change in spending vs. Q Source: sales/revenue data of Gebr. Heinemann by destinations. -2

27 Appendix Retail & Real Estate Increasing effects in mil. Decreasing effects EBITDA Q Retail Real Estate Parking Other revenue Other income Staff cost Other opex EBITDA Q Comments P&L in mil. Q1 18 Q1 17 % Commercial revenue: Parking and Retail combined, up due to passenger increase Real Estate down due to energy contract tendered to competitor: FY 18 Revenue impact: c.-10mn, EBITDA impact: 0 = margin improvement Retail revenue down due to: Long queuing: 10% more passengers; -3% shoppers F/X: those who shopped DTF spend c.4% less Less advertising revenue due to 2017 fairs Other income reflects 5m Property Sale 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

28 Appendix Ground Handling in mil. Increasing effects Decreasing effects EBITDA Q GH revenue Infrastructure charges Other revenue Other income Staff cost Other opex EBITDA Q Comments P&L in mil. Q1 18 Q1 17 % MTOW, Passengers & Movements drive revenue increase Absence of 2017 extra staff cost compensate Q wage increases, Easter payments and staff increase Remaining opex stable as well Revenue growth translated in EBITDA & EBIT growth Revenue Ground Handling Infrastructure Other revenue EBITDA EBIT Employees 9,009 8, Due to commercial rounding discrepancies may occur when summing up, percent changes based on unrounded figures

29 Appendix International Activities & Services in mil. Increasing effects Decreasing effects EBITDA Q Brasil Twin Star Ljubljana Lima USA Greece Others EBITDA Q Comments P&L in mil. Q1 18 Q1 17 % First-time Fortaleza + Porto Alegre contribution Greece with no EBITDA contribution in off season q1, 2017 start up cost to be seen in Others +6mn Positive Lima performance; +10.6% local USD EBITDA offset by negative F/X translation USA down due to loss of Boston concession Revenue excl. IFRIC EBITDA EBIT Employees 5,496 4, Solid EBITDA increase, stable EBIT due to Q1 D&A of Greece & Brazil Due to commercial rounding discrepancies may occur when summing up, percent changes based on unrounded figures 29

30 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. Q Q Δ % Q Q Δ % Q Q Δ % Q Q Δ % Fraport USA Fraport Slovenija Fortaleza + Porto Alegre Fraport Greece Lima Twin Star Group companies accounted for using the equity method Share in % Revenue in mil. 1 EBITDA in mil. EBIT in mil. Result in mil. Q Q Δ % Q Q Δ % Q Q Δ % Q Q Δ % Antalya 2 51/ Hannover 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 Q1 2018: 71.6m (Q1 2017: 75.6m), Fraport Greece Q1 2018: 20.1m; Fortaleza + Porto Alegre Q1 2018: 22.2m; Antalya Q1 2018: 17.4m 2 Share of voting rights: 51%, Dividend share: 50%. 30

31 Appendix Maturity Profile & Cash Position as at March 31, 2018 mil Fraport debt conditions on average ~ 3.2% interest rate Book values Nominal values of debt repayment Liquidity as of Mar 31, 2018 Financial Liabilities