Analyst Presentation Q1 2015 May 7, 2015 Dr Matthias Zieschang, CFO
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Slide 3 Agenda News on T3 Traffic Insight Q1 Financials Outlook 2015
Slide 4 News on T3 Decision to construct taken by Supervisory Board Floor space ca. 90,000 sqm Equivalent to 19 Football fields Height of Terminal inside 20m, outside 33m above ground level Length Pier H: 400m Length Pier J: 600m 24 gate positions at the building 4 CheckinAreas with 100 counters 18 Security control lanes for O&D 11 Security control lanes for transfer 10 luggage conveyor belts
Slide 5 News on T3 Apron Infrastructure already under Construction Market Place Security CheckIn Train Parking T3 apron area: Constructed: 780,000 sqm To be built: 555,000 sqm
Slide 6 News on T3 Road and Train Access
Slide 7 News on T3 Main Hall
Slide 8 News on T3 Timeframe 2015 2016 2017 2018 2019 2020 2021 2022 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 Excavation work Start of structural work Technical & operational tests Inauguration 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4
Slide 9 Agenda News on T3 Traffic Insight Q1 Financials Outlook 2015
Slide 10 Traffic Insight Frankfurt Airport March 2015 % Q1 2015 % FY 2014 Passengers* in `000 4,607 +2.5 12,508 +2.7 59,566 Movements 37,218 2.3 104,780 2.2 469,026 MTOW in `000 tons 2,371 +1.2 6,633 +2.1 28,958 Cargo** in `000 tons 186 6.4 503 2.4 2,132 90% 85% 80% Seat load factor 2015 2014 Q1 2015 Q1 2014 Passenger per movement +6.6 Pax 75% 70% 65% 60% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 115 120 125 130 135 140 Passenger guidance FY2015: 23% upside * Source ACI, commercial traffic only ** Freight & Mail
Slide 11 Traffic Insight Traffic Shares at FRA March 2015 Western Europe Domestic Eastern Europe 40% 12% 8% +2% +2% +1% North America 12% Frankfurt Airport Far East 13% +1% +5% Middle East 6% +7% Latin America 5% +3% Africa 4% +4% Traffic Share Delta absolute vs. previous year in % Continental 60% +2% Intercontinental 40% +4%
Slide 12 Traffic Insight Group Traffic Figures (above 10% stake) IATA Code Airport Share March 2015 previous year YTD 2015 previous year FY 2014 CAGR 2010 2014 FRA Frankfurt, Germany 100% 4,607 +2.5% 12,508 +2.7% 59,566 +3.0% LJU Ljubljana, Slovenia 100% 91 +5.3% 236 0.2% 1,307 1.4% LIM Lima, Peru 70% 1,342 +7.5% 4,024 +8.6% 15,659 +11.1% BOJ Burgas, Bulgaria 60% 9 13.2% 30 +3.7% 2,530 +7.5% VAR Varna, Bulgaria 60% 24 0.7% 67 +9.1% 1,387 +3.1% AYT Antalya, Turkey 51% 1,040 +2.4% 2,419 +6.3% 27,979 +6.0% LED St. Petersburg, Russia 35.5% 868 3.4% 2,474 0.6% 14,265 +14.0% HAJ Hanover, Germany 30% 402 +8.4% 974 +5.3% 5,292 +1.1% XIY Xi an, China 24.5% 2,707 +27.0% 7,605 +17.6% 29,177 +12.8%
Slide 13 Agenda News on T3 Traffic Insight Q1 Financials Outlook 2015
Slide 14 Group P&L Q1 2015 Topline Growth translates into Bottomline mil. Q1 15 Q1 14 % Revenue excl. IFRIC 12 576 572 520 517 10.8 10.6 EBITDA 153 135 13.8 EBIT 72 61 17.6 EBT 16 8 85.7 Group result 11 6 76.7 EPS in 0.11 0.07 57.1 50% 25% EBITDA margin +0.7PP 26.6% 25.9% EBIT margin +0.7PP 12.5% 11.8% Comments Traffic, prices, and retail drove revenue in Frankfurt Positive effects from new Group companies Airmall and Ljubljana Lima with positive US$ effect EBITDA and EBIT sharply up, despite additional opex Negative financial result impact from market valuation of CHF loan Good performance of Group result EPS at 0.11 0% Q1 2015 Q1 2014 Q1 2015 Q1 2014 Percent change based on unrounded figures
Slide 15 Group P&L Q1 2015 External Activities key Driver for lift in Group EBITDA + 19 mil. mil. 135 +25 +20 +1 0 20 1 16 1 153 EBITDA Q1 2014 Likeforlike revenue ex. IFRIC 12 Revenue Airmall & Ljubljana IFRIC 12 revenue Other revenue Cost of materials ex. IFRIC 12 IFRIC 12 cost of materials Staff cost Other opex EBITDA Q1 2015 Segment share in Group EBITDA Q1 2014 Segment share in Group EBITDA Q1 2015 Ground Handling: negative External Activities & Services 17.9% Aviation 22.1% 60.0% Retail & Real Estate External Activities & Services 21.8% Ground Handling: negative 20.0% 58.2% Aviation Retail & Real Estate Due to commercial rounding slight discrepancies may occur when summing up.
Slide 16 Group P&L Q1 2015 Positive EBITDA led to increase in Group result mil. + 5 mil. +19 + 0.04 6 8 3 3 11 0.07 0.11 Group result Q1 2014 EBITDA D&A Financial result Taxes Group result Q1 2015 EPS Q1 2014 EPS Q1 2015 mil Q1 15 Q1 14 % Interest income 8 9 14.3 Interest expenses Split of financial result 42 45 At equity result 13 14 Other result 9 3 Financial result 56 53 Comments Lower interest rate led to lower income and expenses Split of at equity result: Antalya due to seasonal business at 13m No Pulkovo effect despite positive interim result due to cumulated losses Xi an result flat Negative other financial result due to market valuation of CHF loan Due to commercial rounding slight discrepancies may occur when summing up.
Slide 17 Group Asset & Financial Situation Q1 FCF improves Asset & Financial Situation FCF 1 2 Liquidity Gross debt Net debt Equity Gearing mil. 4,238 4,192 2,987 3,013 3,341 3,286 95% 97% 65 34 1,251 1,180 March 31, 2015 Dec. 31, 2014 Increase in FCF from operating cash flow Capex at previous year level Q1 DVD inflow as planned below 2014 level Liquidity in line with FCF up Growing gross debt also due to accrued interest expenses FCF led to decline in net debt Net debt below 3 bn. Equity exceeded 3.3 bn. Gearing ratio at ~95% Outlook 2015: FRA capex: slightly above 2014 level Ongoing strong positive FCF 1) FCF predividend payout; figures correspond to Q1 figures 2) Net debt divided by equity less noncontrolling interests and profit earmarked for distribution
Slide 18 Group Cash Flow Statement Capex Split & DVD inflows mil. Operating cash flow Intangible assets PPE Airport operating projects Investment property DVDs from investments Free cash flow 120 100 114 3 Cash Flow Q1 2015 Cash Flow Q1 2014 80 60 40 74 2 46 4 4 8 15 65 34 20 0 47 3 4 Sound OCF improvement from operational performance and change in working capital Stable q1 capex despite T3 preparations Less DVDs from AYT received Strong FCF improvement driven by OCF Due to commercial rounding slight discrepancies may occur when summing up.
Slide 19 Segment Aviation Revenue Increase offset by Cost Inflation mil. Q1 15 Q1 14 % Revenue Airport charges Security serv. Other 200 164 27 10 189 154 25 10 5.8 6.4 5.1 1.0 EBITDA 31 30 1.3 EBIT 0 2 87.5 Employees 5,976 6,187 3.4 Comments Revenue increase due to FRA traffic & price increase as of Jan. 1, 2015 Slight increase in security revenue from price & volume More staff costs and cost of materials led to flat Q1 result 20% EBITDA margin 0.7PP 15.3% 16.0% EBIT margin 0.7PP Revenue split Q1 2015 Other 4.9% Security services 13.3% 10% 0% 0.1% 0.8% Q1 2015 Q1 2014 Q1 2015 Q1 2014 Security charges 4.4% Parking charges 5.9% Landing charges 7.3% Noise charges 11.0% 53.2% Passenger charges Percent change based on unrounded figures
Slide 20 Segment Retail & Real Estate Strong Increase from Retail Business mil. Q1 15 Q1 14 % Revenue Retail Real Estate Parking Other 113 46 47 19 1 107 42 46 18 1 6.5 10.5 2.4 6.1 30.0 EBITDA 89 82 8.1 EBIT 68 62 10.3 Employees 611 628 2.7 Comments All revenue streams with positive Q1 performance Key driver for Q1 result: Retail Revenue growth directly transferred into EBITDA and EBIT, which showed a sharp increase 90% 60% 30% 0% EBITDA margin +1.2PP 78.6% 77.4% EBIT margin +2.1PP 60.2% 58.1% Q1 2015 Q1 2014 Q1 2015 Q1 2014 Revenue split Q1 2015 Other 1.1% Parking 16.8% Real Estate 41.2% 40.9% Retail Percent change based on unrounded figures
Slide 21 Segment Retail & Real Estate Spend per Pax at Alltime Q1 High Retail revenue per Passenger Q1 12: 3.40 Q1 13: 3.74 Q1 14: 3.69 Q1 15: 3.93 3.40 3.10 2.95 3.95 3.74 3.42 3.24 4.11 3.95 3.93 3.69 3.22 3.04 mil. Shopping Services Advertis. Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 25 29 30 31 27 31 33 33 26 29 32 32 30 33 33 11 12 13 13 11 13 14 13 12 14 14 13 13 14 13 6 6 6 10 6 8 9 11 7 7 8 10 7 9 11
Slide 22 % 20 15 10 5 0 5 10 15 20 Segment Retail & Real Estate Strong Rebounce in Retail 10 18 Destination Development Passengers in Q12015 15 11 2 Volume 2 1 2 change in % China Japan Russia Korea Brazil vs. Q1 14 USA Germany Turkey Canada India 12 13 Destination Development Retail Revenue/Passenger in Q12015 % 30 20 10 0 10 20 30 25 16 9 Revenue/ passenger 3 2 6 change in % China Japan Russia Korea Brazil vs. Q1 14 USA Germany Turkey Canada India 9 7 3 25
Slide 23 Segment Ground Handling Slight improved Financials, Bottomline still in the Red mil. Q1 15 Q1 14 % Revenue Ground Handl. Infrastructure 155 88 66 149 87 62 4.0 2.0 6.9 EBITDA 0 3 EBIT 10 12 Employees 9,505 9,250 2.8 Comments Price & volume led to growth in infrastructure revenue Ground Handling revenue showed slight increase from MTOW Despite higher staff cost EBITDA with slight gain over PY EBIT still negative 10% EBITDA margin PP EBIT margin PP Revenue split Q1 2015 5% 0% % % % % Q1 2015 Q1 2014 Q1 2015 Q1 2014 Central Infrastructure 42.9% Ground Handling 57.1% Percent change based on unrounded figures
Slide 24 Segment External Activities & Services Growth from Lima and new Operations mil. Q1 15 Q1 14 % Revenue excl. IFRIC 12 107 104 75 73 43.0 42.8 EBITDA 33 25 35.8 EBIT 13 10 35.4 Employees 4,550 4,176 9.0 Comments Ongoing growth in Lima supported by US$ effect Firsttime Q1 consolidation of Airmall and Ljubljana (figures displayed on next slide) Off season in Varna & Burgas Solid increase in EBITDA and EBIT EBITDA margin 1.7PP EBIT margin 0.7PP Revenue split Q1 2015 40% 20% 31.1% 32.8% 12.1% 12.8% Others Twin Star 1.8% 20.3% Ljubljana 6.3% 59.1% Lima 0% Q1 2015 Q1 2014 Q1 2015 Q1 2014 Airmall 12.5% Percent change based on unrounded figures
Slide 25 External Activities Fully consolidated Investments 1 Airmall 2 Ljubljana 2 Lima Twin Star mil. Q1 15 Q1 14 % Q1 15 Q1 14 % Q1 15 Q1 14 % Q1 15 Q1 14 % Revenue ex IFRIC 12 13 7 64 60 49 47 29.6 28.8 2 2 2 2 5.6 0 EBITDA margin adjusted 3 20.1% 2 25.0% 23 36.1% 38.2% 18 36.5% 38.4% 27.9 2 2 EBIT margin adjusted 1 4.5% 1 19 29.1% 30.8% 14 29.4% 30.9% 28.5 4 5 Result 1 1 10 7 52.2 6 7 Passengers in mil. 0.2 0.2 0.2 4.0 3.7 8.6 0.1 0.1 7.4 1) Figures refer to IFRS accounting, not local GAAP, percent changes based on unrounded figures. 2) Airmall and Ljubljana since inclusion in Fraport Group.
Slide 26 External Activities At Equity consolidated Investments Antalya Pulkovo Hanover Xi An mil. Q1 15 Q1 14 % Q1 15 Q1 14 % Q1 15 Q1 14 % Q1 15 Q1 14 % Revenue ex IFRIC 12 21 21 2.4 46 44 55 43 16.6 2.6 31 30 3.3 44 33 33.8 EBITDA margin adjusted 12 55.2% 12 59.0% 4.1 19 42.1% 44.0% 8 14.8% 19.1% >100 3 8.7% 3 8.7% 3.8 19 43.7% 14 41.8% 40.1 EBIT margin adjusted 13 13 9 20.2% 21.1% 3 2 2 8 18.0% 5 14.3% 68.1 Result 31 33 34 71 4 4 4 4 5.0 Passengers in mil. 2.4 2.3 6.3 2.5 2.5 0.6 1.0 0.9 5.3 7.6 6.5 17.6 Except for Xi an all figures refer to IFRS accounting, percent changes based on unrounded figures.
Slide 27 Agenda News on T3 Traffic Insight Q1 Financials Outlook 2015
Slide 28 Outlook 2015 Unchanged Outlook! Strike risk could impact traffic and financial outlook Outlook 2014 Result Outlook 2015 Passengers FRA growth between 2% and 3% +2.6% growth between 2% and 3% Revenue revenue growth up to ~ 2.45 bn. 2.4 bn. revenue between ~ 2.55 and ~ 2.6 bn. EBITDA between ~ 780 and ~ 800 mil. 790 mil. between ~ 820 and ~ 840 mil. EBIT growth up to ~ 500 mil. 483 mil. between ~ 500 and ~ 520 mil. Group Result* slightly above 2013 252 mil. between ~ 265 and ~ 285 mil. Dividend proposal at least stable 1.35 stable *Group Result before minorities
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Slide 30 Group P&L Q1 2015
Slide 31 Group Cash Flow Statement Q1 2015
Slide 32 Group Financial Position as at March 31, 2015
Slide 33 Special & Extraordinary Effects Q1 2015 mil. Q1 15 Q1 14 Group financial result Market valuation of derivatives & F/X fluctuations 9.0 3.1 Segment External Activities IFRIC 12 revenue 3.6 2.4 Airmall revenue 13.4 Airmall EBITDA 2.7 Airmall EBIT 0.6 Ljubljana revenue 6.8 Ljubljana EBITDA 1.7 Ljubljana EBIT 0.8
Slide 34 Financial Position Maturity Profile & Cash Position as of March 31, 2015 mil. Fraport debt conditions on average ~ 3.6 % interest rate ~ 5.0 years maturity
Investor Relations Team Contact Details Fraport AG Frankfurt Airport Services Worldwide 60547 Frankfurt am Main www.meetir.com +49 69 690 74842 investor.relations@fraport.de Stefan J. Rüter Head of Finance & Investor Relations +49 69 69074840 s.rueter@fraport.de Svenja Ebeling Investor Relations Assistant +49 69 69074842 s.ebeling@fraport.de Marc Poeschmann Manager Investor Relations +49 69 69074845 m.poeschmann@fraport.de Florian Fuchs Manager Investor Relations & Financial Reporting +49 69 69074844 f.fuchs@fraport.de Tanja Nagel Manager Investor Relations & Financial Reporting +49 69 69074846 t.nagel@fraport.de