September, 2016 Stefan J. Rüter Head of Finance & IR
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3 Agenda Traffic Insight Business Update 6M 2016 Financials FY 2016 Outlook
4 Traffic Insight Group Passenger Results (stakes above 10%, Figures in 000) IATA Code Airport Share JULY 2016 D previous year YTD 2016 D previous year FY 2015 CAGR 2010 2015 FRA Frankfurt, Germany 100% 6,122 2.0% 34,792 1.1% 61,032 +2.9% LJU Ljubljana, Slovenia 100% 163 5.0% 762 4.6% 1,438 +0.7% LIM Lima, Peru 70% 1,717 +13.8% 10,663 +11.5% 17,113 +10.7% BOJ Burgas, Bulgaria 60% 868 +25.2% 1,552 +25.2% 2,360 +4.7% VAR Varna, Bulgaria 60% 402 +19.8% 901 +22.2% 1,399 +3.1% AYT Antalya, Turkey 51% 2,540 40.7% 9,871 33.4% 27,523 +4.4% LED St. Petersburg, Russia 35.5% 1,553 7.3% 7,249 6.6% 13,500 +9.8% HAJ Hanover, Germany 30% 575 +2.1% 3,016 0.2% 5,453 +1.5% XIY Xi an, China 24.5% 3,293 +9.8% 20,827 +11.1% 32,970 +12.9%
5 Traffic Insight Focus Frankfurt Airport JULY 2016 D % YTD 2016 D % FY 2015 Passengers in `000 6,122 2.0 34,792 1.1 61,032 Movements 42,486 2.8 269,673 1.3 468,153 MTOW in `000 tons 2,720 0.9 17,293 +0.8 29,543 Cargo in `000 tons 177 +1.3 1,203 +0.6 2,077 90% 85% 80% Seat load factor 2016 2015 YTD 2016 YTD 2015 Passenger per movement +0.2 Pass. 75% 70% 65% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 134 136 138 140 142 Passenger guidance FY2016: Slightly negative Passenger figures according to ACI, commercial traffic only; cargo includes air freight and air mail
6 Traffic Insight Frankfurt Airport Passenger Flows 7M 2016 Western Europe Domestic Eastern Europe North America D 43% 3% D 10% 0% D 9% 2% D 15% 0% Latin America D 3% 2% Frankfurt Airport Africa D 3% 9% Middle East D 5% +6% Far East D 11% 4% Continental Intercontinental D Traffic Share YTD vs. previous year D 63% 2% D 37% 2%
7 Traffic Insight Focus Antalya Airport Strong seasonality in passenger traffic: 6M 2015 = less than 40 % of total traffic High seasonality especially in international traffic, where c.50 % is carried out in q3 more insight on next slide Low seasonality in domestic traffic, however, domestic only accounts for 20 to 25 % of total traffic on FY basis 7M positively impacted by domestic traffic: +10 % and negatively by international traffic 47 % 4,5 4,0 3,5 3,0 2,5 2,0 1,5 1,0 0,5 Passengers in million Domestic 2016 Domestic 2015 International 2016 International 2015 0,0 January February March April May June July August September October November December
8 Traffic Insight Focus Antalya Airport Germans in 000 2015 2016 3.000 2.500 2.000 1.500 1.000 500 0 17% 33% Q1 Q2 Q3 Q4 c.64% of 6.7m Germans traveled in 2 nd half of 2015 Russians in 000 3.500 3.000 2.500 2.000 1.500 1.000 500 0 80% 98% 2015 2016 Q1 Q2 Q3 Q4 c.70% of 5.6m Russians traveled in 2 nd half of 2015
9 Agenda Traffic Insight Business Update 6M 2016 Financials FY 2016 Outlook
10 Business Update Sale of Thalita Shares Contracts to sell shares in Thalita, the operating company of Pulkovo Airport in St. Petersburg, to QIA signed on July 31, 2016 Upon closing Fraport will decrease its share in Thalita from 35.5% to 25% QIA in total will acquire a share of 24.99% Fraport will remain lead operator Closing is subject to approval of Russian government and senior project finance lenders EBITDA/ EBIT/ EBT impact of 30 to 40 million EUR expected Substantial impact also on Group result expected Closing currently expected within remaining course of 2016
11 Agenda Traffic Insight Business Update 6M 2016 Financials FY 2016 Outlook
12 Group P&L 6M 2016 Decline in FRA and AYT & Increase in Lima & Twin Star P&L in mil. 6M 16 6M 15 % Revenue 1,225 1,242 1.4 excl. IFRIC 12 1,216 1,235 1.5 EBITDA 378 385 1.7 EBIT 215 222 3.3 EBT 146 152 4.2 Group result 100 103 3.2 EPS in 1.00 1.06 5.7 Comments Adjusted for consolidation effects: c.19m revenue growth, due to FRA property sales and good performance in Lima and Varna/Burgas Headwind from FRA traffic, retail, noncapitalizbl. capex & multi channel cost Despite significant lower income from AYT flat financial result Revenue by segment in mil. EBITDA by segment in mil. 1,242 12 +7 24 +13 1,225 385 7 2 +5 3 378 Revenue 6M 2015 Aviation Retail & Real Estate Ground Handling External Activities & Services Revenue 6M 2016 EBITDA 6M 2015 Aviation Retail & Real Estate Ground Handling External Activities & Services EBITDA 6M 2016 Due to commercial rounding slight discrepancies may occur when summing up, percent changes based on unrounded figures
13 Group P&L 6M 2016 Growth in GH, Lack of External Activities OneOff 7 mil. mil. 385 +2 +1 +8 +7 378 19 4 2 EBITDA 6M 2015 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 6M 2016 Segment share in Group EBITDA 6M 2015 Segment share in Group EBITDA 6M 2016 External Activities & Services Ground Handling 3,3% 22,3% 26,6% Aviation External Activities & Services Ground Handling 21,8% 4,7% 25,3% Aviation 47,8% Retail & Real Estate 48,2% Retail & Real Estate Due to commercial rounding slight discrepancies may occur when summing up
14 Group P&L 6M 2016 Group Result marginally below Previous Year s Level 3 mil. 0.06 mil. 103 7 1 +1 +3 100 1.06 1.00 Group result 6M 2015 EBITDA D&A Financial result Taxes Group result 6M 2016 EPS 6M 2015 EPS 6M 2016 Split of financial result Comments mil 6M 16 6M 15 % Interest income 16 14 +14.7 Interest expenses 74 83 At equity result 11 2 Other result 0 3 Financial result 69 70 Improved interest result from lower interest rates and lower indebtedness Antalya still negative at 15m EUR, H1 2015 was break even Positive results in Hanover and Xi an with minor compensating effects Other financial result up, due to lack of strong negative CHF loan revaluation effect in previous year Due to commercial rounding slight discrepancies may occur when summing up, percent changes based on unrounded figures
15 Group Asset & Financial Situation 6M 2016 Lower OCF & higher Capex led to decline in FCF Operating cash flow Intangible assets PPE Airport operating projects Investment property DVDs from investments Free cash flow 258 277 3 3 93 8 120 9 1 6 +24 +23 190 149 6M 2016 6M 2015 6M 2016 development Lower OCF due to 42 mil. higher tax payments, a.o. for oneoff tax repayments for previous years Spending on PPE ahead of H1 2015 due to mild winter and cash out for certain finalized projects, a.o., T1 arrival lane Stable DVDs from investments FY 2016 Outlook 2016 capex on 2015 level or slightly above 2016 FCF expected to be on 2015 level or below 2016 FCF with potential to delever Group by up to c.10 % to net debt/ebitda < 3x w/o Greek deal Due to commercial rounding slight discrepancies may occur when summing up
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 16 Group Asset & Financial Situation 6M 2016 Stable Net Debt despite DVD Cash out, Gearing down FCF 1 Liquidity Gross debt Net debt Equity Gearing 2 mil. 3.821 3.817 2.779 2.774 3.494 3.512 81% 84% 149 190 1.043 1.043 June 30, 2016 Dec. 31, 2015 Cash development FCF less DVD payout led to stable Group liquidity Unchanged net debt of 2.78 bn. Despite positive FCF forecast: FY 2016 liquidity to go down due to debt repayments + expected Greek upfront payment Balance sheet Equity unchanged at 3.5 bn. After deducting DVD payout; Gearing ratio slightly down on Dec. 31, 2015 at 81% Equity ratio at 39% (Dec. 31, 2015: 37%)
17 Segment Aviation 6M 2016 Traffic Decline led to lower Earnings P&L in mil. 6M 16 6M 15 % Revenue 432 444 2.8 Airport charges 358 365 1.9 Security Services 55 59 7.0 Other revenue 19 20 6.4 EBITDA 96 102 6.5 EBIT 34 43 21.9 Employees 6,100 5,995 +1.8 Comments Decrease in airport charges due to 1% passengers and 1% movements Security business down due to decline in traffic & loss of T1 concourse B contract Headwind from noncapitalizable capex EBITDA and EBIT down EBITDA performance in mil. Revenue split 102 12 +2 +0 +4 96 4,4% Other Security Services 12,7% EBITDA 6M 2016 Revenue Other income Staff cost Other EBITDA 6M 2016 82,9% Aviation charges Due to commercial rounding slight discrepancies may occur when summing up, percent changes based on unrounded figures
18 Segment Retail & Real Estate 6M 2016 Weak Retail compensated by Property Sales & OneOff P&L in mil. 6M 16 6M 15 % Revenue 240 233 +2.9 Retail 95 100 5.0 Real Estate 96 90 +5.9 Parking 40 41 1.5 Other revenue 10 3 >100 EBITDA 182 184 0.9 EBIT 140 143 1.6 Employees 644 617 +4.4 Comments Decline in Retail revenue compensated by other revenue from property sales, and additional real estate revenue Higher cost from noncapitalizable capex, marketing cost for multichannel & allocation of internal cost Despite higher other income, EBITDA and EBIT slightly down on the previous year EBITDA performance in mil. Revenue split 184 +7 +8 1 182 Parking 4,1% Other 16 16,7% 39,4% Retail EBITDA 6M 2015 Revenue Other income Staff cost Other EBITDA 6M 2016 Real Estate 39,8% Due to commercial rounding slight discrepancies may occur when summing up, percent changes based on unrounded figures
19 Segment Retail & Real Estate 6M 2016 High Level of Q2 Retail per Passenger, YTD Figure: 3% Retail revenue per Passenger 6M 13: 3.56 6M 14: 3.42 6M 15: 3.63 6M 16: 3.51 3,74 3,42 3,24 4,11 3,95 3,93 4,05 3,69 3,22 3,41 3,26 3,04 3,62 3,42 FY 13: 3.60 FY 14: 3.43 FY 15: 3.62 mil. Shopping Services Advertis. Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 27 31 33 33 26 29 32 32 30 34 35 32 28 31 11 13 14 13 12 14 14 13 13 14 16 14 13 14 6 8 9 11 7 7 8 10 7 9 10 10 7 8
20 Segment Retail & Real Estate 6M 2016 Negative Development of Core Spending Destinations Top 5 by Retail Value Top 5 by Volume Volume Development Change vs. 6M 2015 in % 2 13 6 6 7 1 16 1 2 5 China Russia South Korea Japan Vietnam USA Turkey Germany India UAE Retail Revenue per Passenger in EUR 25 2 8 3 Change vs. 6M 2015 in % 14 13 7 4 4 4 Source: sales/revenue data of Gebr. Heinemann by destinations
21 Segment Ground Handling 6M 2016 Disposal of Cargo Subsidiary increases EBITDA & Margin P&L in mil. 6M 16 6M 15 % Revenue 309 333 7.2 Ground Handling 155 189 18.1 Infrastructure 147 144 +1.9 Other revenue 7 0 >100 EBITDA 18 13 +40.5 EBIT 2 9 Employees 8,738 9,342 6.5 Comments Adjusted for deconsolidation effect: c.7m revenue & 3m EBITDA growth Negative passenger performance but positive development of maximum takeoff weights Other revenue up, due to charging of staff to Cargo subsidiary as 3 rd party EBITDA and EBIT up EBITDA performance in mil. Revenue split 13 +10 +19 18 Infrastructure 47,5% 2,4% Other 24 +0 50,1% Ground Handling EBITDA 6M 2015 Revenue Other income Staff cost Other EBITDA 6M 2016 Due to commercial rounding slight discrepancies may occur when summing up, percent changes based on unrounded figures
22 Segment External Activities & Services 6M 2016 Strong Lima & Twin Star Performance, Negative Base Effect P&L in mil. 6M 16 6M 15 % Revenue 244 232 +5.4 excl. IFRIC 12 235 225 +4.8 EBITDA 83 86 3.9 EBIT 43 45 5.6 Employees 4,841 4,737 +2.2 Comments Adjusted for deconsolidation effect: c.17m revenue & 5m EBITDA growth Good development in Lima & Twin Star Lack of 8m extra income from disposal of Air IT in previous year Additional maintenance cost in FRA Sound underlying H1 EBITDA & EBIT EBITDA performance in mil. Revenue split 86 +5 +0 +3 ±0 8 3 83 Ljubljana Other 6,8% 15,7% EBITDA 6M 2015 LAP LJU Twin AMU Air IT Other EBITDA Star 6M 2016 Airmall 12,2% Twin Star 6,8% 58,5% Lima Due to commercial rounding slight discrepancies may occur when summing up, percent changes based on unrounded figures
23 External Activities 6M 2016 Fully consolidated Investments Airmall Ljubljana Lima Twin Star mil. 6M 16 6M 15 % 6M 16 6M 15 % 6M 16 6M 15 % 6M 16 6M 15 % Revenue ex IFRIC 12 30 29 3.5 16 16 1.9 143 134 131 124 8.8 7.7 17 17 13 13 23.1 24.1 EBITDA margin adjusted 6 20.2% 6 22.0% 4.8 6 35.0% 6 35.0% 1.8 53 36.9% 39.4% 47 36.1% 38.2% 11.2 9 51.5% 51.5% 6 43.3% 43.6% 46.6 EBIT margin adjusted 2 6.7% 2 7.7% 9.1 1 3.1% 1 3.8% 16.7 44 30.9% 33.0% 39 29.3% 31.0% 14.5 3 16.4% 16.4% 0 0.7% 0.8% Result 2 2 9.1 1 1 16.7 24 20 22.3 0 3 Passengers in mil. 0.6 0.6 4.5 8.9 8.1 11.0 1.2 0.9 24.8 Figures refer to IFRS accounting, not local GAAP, percent changes based on unrounded figures
24 External Activities 6M 2016 At Equity consolidated Investments Antalya Pulkovo Hanover Xi An mil. 6M 16 6M 15 % 6M 16 6M 15 % 6M 16 6M 15 % 6M 16 6M 15 % Revenue ex IFRIC 12 64 108 40.7 81 81 115 101 29.6 20.0 70 70 0.7 101 92 10.2 EBITDA margin adjusted 45 70.0% 87 80.9% 48.7 39 48.5% 48.5% 56 48.5% 55.1% 29.5 13 18.7% 12 17.2% 9.2 49 48.0% 44 47.7% 10.9 EBIT margin adjusted 4 38 35.5% 23 29.0% 29.0% 36 31.0% 35.3% 34.1 3 4.4% 2 2.9% 55.0 23 22.8% 21 22.4% 12.1 Result 30 1 0 72 1 1 15 12 28.8 Passengers in mil. 7.3 10.5 30.5 5.7 6.1 6.5 2.4 2.5 0.7 17.5 15.7 11.3 Except for Xi an all figures refer to IFRS accounting, percent changes based on unrounded figures
25 Agenda Traffic Insight Business Update 6M 2016 Financials FY 2016 Outlook
*Without taking account of potential closing of Greek deal ** Group result before minorities 26 FY 2016 Outlook* New FRA Traffic, Pulkovo enables to keep Guidance Ranges 2015 Results 2016 Outlook Passengers FRA 61 mil. Slightly negative Revenue 2.6 bn up to 2.65 bn EBITDA 849 mil. between ~ 850 and ~ 880 mil. EBIT 521 mil. between ~ 520 and ~ 550 mil. Group result** 297 mil. on PY level or slightly above Dividend proposal stable at 1.35 / share at least stable
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28 Appendix Subsequent financial information
29 Appendix Special Effects 6M 2016 mil. 6M 2016 6M 2015 Group financial result Market valuation of derivatives & F/X fluctuations 0.3 3.1 Segment Ground Handling FCS disposed Nov. 2015 Revenue 31.4 EBITDA 2.0 EBIT 2.8 Writedown of book value 2.1 Segment External Activities IFRIC 12 revenue 4.9 3.6 Air Transport IT disposed April 2015 Revenue 4.9 EBITDA 0.3 EBIT 0.1 Book gain on disposal 8.0
30 Appendix Maturity Profile & Cash Position as at June 30, 2016 mil. 4.500 4.000 3.821,2 Fraport debt conditions on average ~ 3.2% interest rate ~ 4.7 years maturity 3.500 3.000 2.500 2.000 1.500 1.000 500 0 1.042,6 Liquidity as of June 30, 2016 Financial Liabilities 229,7 295,3 1.132,9 517,4 422,9 400,9 548,6 186,1 32,6 2,6 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025++
31 Appendix IR Contact 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 Florian Fuchs Investor Relations Manager +49 69 69074844 f.fuchs@fraport.de Tanja Nagel Financial Reporting Manager +49 69 69074846 t.nagel@fraport.de Maximilian Schultheis Financial Reporting Manager +49 69 69029996 m.schultheis@fraport.de