Analyst Presentation Q1 2014 May 8, 2014 Dr Matthias Zieschang, CFO
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Slide 3 Agenda Traffic Insight Financials Q1 2014 Outlook 2014
Slide 4 Traffic Insight Frankfurt Airport Mar 2014 D % Q1 2014 D % FY 2013 Passengers* in `000 4,494 +0.9 12,174 +2.0 58,037 Movements 38,104 +2.4 107,092 +1.1 472,692 MTOW in `000 tons 2,343 +2.6 6,499 +2.1 28,416 Cargo** in `000 tons 199 +3.4 515 +4.5 2,095 90% 85% 80% Seat load factor 2014 2013 Q1 2014 Q1 2013 Passenger per movement +0.8 PP 75% 70% 65% 60% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 110 115 120 125 130 135 Passenger guidance FY2014: 23% upside * Source ACI, commercial traffic only ** Freight & Mail
Slide 5 Traffic Insight Frankfurt Airport Traffic Shares Q12014 Western Europe Domestic Eastern Europe North America 12% D +1% D 40% +6% D 12% +4% Frankfurt Airport D 8% +11% D Far East 13% 5% Middle East 6% D +3% Africa Latin America 5% D 6% D 4% 11% Traffic Share D vs. previous year D Continental 60% +6% Intercontinental 40% D 4%
Slide 6 Traffic Insight Group Traffic Figures (above 10% stake) IATA Code Airport Share Q1 2014 D previous year FY 2013 CAGR 2010 2013 FRA Frankfurt, Germany 100% 12,174 +2.0% 58,037 +3.1% LIM Lima, Peru 70.01% 3,700 +4.2% 14,913 +13.2% BOJ Burgas, Bulgaria 60% 29 16.1% 2,480 +9.4% VAR Varna, Bulgaria 60% 61 +13.4% 1,319 +2.4% AYT Antalya, Turkey 51% 2,277 +2.3% 26,716 +6.5% LED St. Petersburg, Russia 35.50% 2,472 +15.0% 12,854 +15.0% HAJ Hanover, Germany 30% 925 4.0% 5,235 +1.1% XIY Xi an, China 24.50% 6,466 9.9% 26,046 +13.1%
Slide 7 Agenda Traffic Insight Financials Q1 2014 Outlook 2014
Slide 8 Group P&L Q1 2014 Likeforlike Growth in all key Figures mil Q1 14 Q1 13 % Revenue excl. IFRIC 12 520 517 530 512 1.9 1.1 EBITDA 135 122 10.7 EBIT 61 50 21.9 EBT 8 6 33.3 Group result 6 5 33.8 EPS in 0.07 0.06 16.7 50% 25% EBITDA margin +3PP 22.9% 25.9% EBIT margin +2.3PP 9.5% 11.8% Comments Revenue increase due to +2% FRA traffic Positive effects also from increase in FRA aviation and infrastructure charges as of Jan. 1, 2014 Lima contributing 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 0% Q1 2013 Q1 2014 Q1 2013 Q1 2014 Percent change based on unrounded figures
Slide 9 Group P&L Q1 2014 Increase in Group EBITDA driven by Aviation mil. + 13 mil. 122 +5 15 +15 4 +15 2 1 135 EBITDA Q1 2013 Organic revenue IFRIC 12 revenue Other revenue Organic cost of materials IFRIC 12 cost of materials Personnel expenses Other opex EBITDA Q1 2014 Segment share in Group EBITDA Q1 2013 Segment share in Group EBITDA Q1 2014 External Activities & Services 21.4% 15.3% Aviation External Activities & Services 17.9% 22.1% Aviation 63.3% Retail & Real Estate 60.0% Retail & Real Estate
Slide 10 Group P&L Q1 2014 Despite negative Financial result, Group result up! mil. +13 + 1 mil. 2 9 + 0.01 5 1 6 0.06 0.07 Group result Q1 2013 EBITDA D&A Financial result Taxes Group result Q1 2014 EPS Q1 2013 EPS Q1 2014 mil Q1 14 Q1 13 % Interest income 9 11 18.0 Interest expenses Split of financial result 45 46 At equity result 14 14 Other result 3 5 Financial result 53 44 Comments Interest result more or less unchanged Split of at equity result: Limited Antalya dynamic due to low season Pulkovo book value is at 0, therefore no visible impact from negative Pulkovo result in Fraport P&L / financial position Xi an and Hanover unchanged to PY Other result down due to market valuation of derivatives
Slide 11 Group Asset & Financial Situation Q1 FCF back on the positive Track! Free Cash Flow Liquidity Gross debt Net debt Equity Gearing 1) mil. 4,239 4,198 2,871 2,857 3,117 3,123 97% 96% 1,368 1,341 19 46 Dec. 31, 2013 March 31, 2014 Substantial qoq increase in free cash flow Main driver: FRA capex ~50%, resp. 42 mil. down OCF 7 mil. up Decline in liquidity to 1.34 bn due to debt repayment Corresponding decline in gross debt Net debt at 2.86 bn. reflecting positive FCF Equity increase in line with Group result Gearing below 100% Outlook 2014: Target Capex FRA: ~ 300 mil. Subject to LH strike, solid positive FCF expected 1) Net debt divided by Equity less noncontrolling interests and profit earmarked for distribution
Slide 12 Cash Flow Q1 2014 Break down of Capex mil. Operating cash flow Intangible assets PPE Airport operating projects Investment property Free cash flow 100 50 74 67 2 2 Cash Flow Q1 2014 Cash Flow Q1 2013 0 47 3 4 19 50 89 14 10 46 100 Steady increase in OCF Capex for PPE in 2013 still included cash out for Pier APlus of ~20m and ~15m for T3 aprons Decline in capex for airport operating projects reflects lower spend for Varna & Burgas Investment property mainly refers to CASA Due to roundings differences can occur, when summing up to free cash flow
Slide 13 Segment Aviation Growing Operations mil Q1 14 Q1 13 % Revenue Airport charges Security serv. Other 189 154 25 10 185 150 24 11 2.4 3.1 6.3 14.8 EBITDA 30 19 56.2 EBIT 2 9 Employees 6,187 6,272 1.4 Comments Revenue increase due to +2% FRA traffic and increase in aviation charges as of Jan. 1, 2014 Security revenue in line with traffic Less cost from winter leads to strong increase in EBITDA EBIT positive 20% 10% 0% EBITDA margin +5.5PP 10.5% 16.0% EBIT margin +0.8PP % 0.8% Q1 2013 Q1 2014 Q1 2013 Q1 2014 Other 5.2% Security services 13.2% Security charges 4.4% Parking charges 6.0% Landing charges 7.3% Noise charges 11.2% Revenue split Q1 2014 52.5% Passenger charges Percent change based on unrounded figures
Slide 14 Segment Retail & Real Estate Flat Q1 Performance mil Q1 14 Q1 13 % Revenue Retail Real Estate Parking Other 107 42 46 18 1 108 43 47 17 1 1.1 1.2 2.8 3.5 EBITDA 82 80 2.5 EBIT 62 60 2.7 Employees 628 600 4.7 Comments Flat revenue due to weak retail performance and some higher parking revenue Real Estate down due lower need for utilities from mild winter Correlating positive effect on costs Hence, EBITDA and EBIT up 90% 60% 30% 0% EBITDA margin +2.7PP 74.7% 77.4% EBIT margin +2.1PP 56.0% 58.1% Q1 2013 Q1 2014 Q1 2013 Q1 2014 Revenue split Q1 2014 Other 0.9% Parking 16.8% Real Estate 42.8% 39.4% Retail Percent change based on unrounded figures
Slide 15 Segment Retail & Real Estate Retail per Passenger 1.3% down due to less Shopping Retail revenue per Passenger Q1 2012: 3.40 Q1 2013: 3.74 Q1 2014: 3.69 3.40 3.10 2.95 3.95 3.74 3.42 3.24 4.11 3.69 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 mil. Shopping 25 29 30 31 27 31 33 33 26 31 33 33 Services 11 12 13 13 11 13 14 13 12 13 14 13 Advertis. 6 6 6 10 6 8 9 11 7 8 9 11
Slide 16 Segment Ground Handling QoQ increase, EBITDA & EBIT seasonally negative mil Q1 14 Q1 13 % Revenue Ground Handl. Infrastructure 149 87 62 148 89 59 0.5 2.5 4.9 EBITDA 3 6 EBIT 12 15 Employees 9,250 9,236 0.2 Comments Growing revenue due to infrastructure services helped by price effects Despite wage increase EBITDA up, reason: optimized staff mix EBIT in low season + 3m, but still negative 10% EBITDA margin PP EBIT margin PP Revenue split Q1 2014 5% Central Infrastructure 41.7% Ground Handling 0% % % % % Q1 2013 Q1 2014 Q1 2013 Q1 2014 58.3% Percent change based on unrounded figures
Slide 17 Segment External Activities & Services Solid Operations, diluted by PY oneoff mil Q1 14 Q1 13 % Revenue excl. IFRIC 12 75 73 89 71 15.7 2.1 EBITDA 25 27 9.6 EBIT 10 14 31.9 Employees 4,176 4,418 5.5 Comments Ongoing growth in Lima Varna & Burgas with marginal growth during offseason Extra gain in PY leads to decline in Q1 EBITDA Higher D&A from Terminal inaugurations in Varna & Burgas 40% 20% 0% EBITDA margin +2.3PP 30.5% 32.8% 15.8% EBIT margin 3PP 12.8% Q1 2013 Q1 2014 Q1 2013 Q1 2014 Revenue split Q1 2014 Other 32.4% Lima 65.2% Twin Star 2.4% Percent change based on unrounded figures
Slide 18 External Activities Lima Airport 1 mil Q1 14 Q1 13 % Revenue Airport charges Retail excl. IFRIC 12 49 26 8 47 48 26 8 46 1.9 0.7 3.7 2.4 EBITDA Margin Underlying margin 18 36.5% 38.4% 16 34.1% 36.0% 9.1 EBIT Margin Underlying margin 14 29.4% 30.9% 13 27.0% 28.6% 10.8 Employees 489 591 17.3 1) Figures refer to IFRS accounting, not local GAAP, percent changes based on unrounded figures
Slide 19 External Activities Twin Star Varna & Burgas Airport mil Q1 14 Q1 13 % Revenue Airport charges Retail excl. IFRIC 12 2 1 0 2 17 1 0 2 89.3 10.8 84.1 8.1 EBITDA Margin Underlying margin 2 2 EBIT Margin Underlying margin 5 4 Employees 659 685 3.7 Percent change based on unrounded figures
Slide 20 External Activities Antalya Airport Figures before Consolidation mil Q1 14 Q1 13 % Revenue Airport charges Retail 21 11 8 21 11 8 2.4 1.3 2.9 EBITDA Margin 12 59.0% 11 51.9% 11.0 EBIT Margin 13 14 EBT 5 4 Result 33 33 Percent change based on unrounded figures
Slide 21 Agenda Traffic Insight Financials Q1 2014 Outlook 2014
Slide 22 Outlook 2014 Unchanged Outlook! FY2013 (restated) Outlook 2014 Passengers FRA 58 million Growth between 2% and 3% Revenue 2.378 bn Revenue growth up to ~ 2.45 bn. EBITDA 733.3 mil Between ~ 780 and ~ 800 mil. EBIT 439.0 mil Growth up to ~ 500 mil. Group Result* 235.7 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
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Slide 24 Group P&L Q1 2014 mil. Q1 14 Q1 13 Change % Change Revenue 519.7 529.8 10.1 1.9 Change in workinprocess 0.1 0.2 0.1 50.0 Other internal work capitalized 6.7 8.5 1.8 21.2 Other operating income 5.1 7.7 2.6 33.8 Total revenue 531.6 546.2 14.6 2.7 Cost of materials 121.8 152.2 30.4 20.0 Personnel expenses 240.4 238.3 2.1 0.9 Other operating expenses 34.9 34.2 0.7 2.0 EBITDA 134.5 121.5 13.0 10.7 D&A 73.3 71.3 2.0 2.8 EBIT 61.2 50.2 11.0 21.9 Interest income 9.1 11.1 2.0 18.0 Interest expenses 44.7 45.9 1.2 2.6 Result from at equity consol. companies 13.8 13.9 0.1 0.7 Other financial result 3.4 4.8 8.2 Financial result 52.8 43.9 8.9 20.3 EBT 8.4 6.3 2.1 33.3 Taxes on Income 2.4 1.8 0.6 32.1 Group result 6.0 4.5 1.5 33.8 Minority result 0.5 0.6 0.1 16.7 Fraport shareholders result 6.5 5.1 1.4 27.9
Slide 25 Group Cash Flow Statement Q1 2014 mil. Q1 14 Q1 13 Profit attributable to Fraport shareholders 6.5 5.1 Profit attributable to noncontrolling interests 0.5 0.6 Adjustments for Taxes on income 2.4 1.8 Depreciation and amortization 73.3 71.3 Interest result 35.6 34.8 Disposal of noncurrent assets 0.1 0.1 Others 0.5 1.5 Fair value changes in at equity comp. 13.8 13.9 Changes in inventories 0.3 0.6 Changes in receivables and financial assets 48,7 10.5 Changes in liabilities 11,1 17.8 Changes in provisions 7,7 4.7 Operating activities 101,3 92.3 Financial activities Interest paid 16.6 19.3 Interest received 5.8 7.1 Taxes on income paid 16.1 12.8 CF from operating activities 74.4 67.3 Investments in airport operating projects 2.7 13.9 Capex for other intangible assets 1.7 1.7 Capital Analyst expenditure Presentation for Q1 ppe 2014 47.0 88.6 mil. Q1 14 Q1 13 Investment property 3.5 9.5 Dividends from at equity companies 14.6 0.0 Proceeds from disposal of noncurrent 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 0.9 0.5 39.4 113.2 213.2 119.4 184.5 111.9 38.4 76.1 CF used in investing activities 29.7 44.6 Dividends paid to Fraport shareholders Dividends paid to noncontrolling interests 1.1 1.7 Capital increase Cash inflow from longterm financial debt 0.0 6.7 Repayment of longterm financial liabilities 64.3 55.0 Changes in shortterm financial liabilities 1.8 1.1 CF used in/from financing activities 63.6 48.9 Change in restricted cash Change in cash and cash equivalents 18.9 26.2 F/X effects on cash and cash equivalents 0.2 1.8 Cash and cash equivalents as at Mar. 31 112.1 83.5
Slide 26 Group Financial Position Q1 2014 Assets in mil. Q1E,14 YE,13 Goodwill 22.7 22.7 Investments in airport operating projects 454.6 458.1 Other intangible assets 50.3 51.1 Property, plant and equipment 5,942.0 5.962.3 Investment property 50.4 47.7 Investments in at equity companies 183.7 213.9 Other financial assets 749.7 728.6 Other receivables and financial assets 173.7 172.2 Income tax receivables 15.2 20.3 Deferred tax assets 28.1 27.9 Total non current assets 7,670.4 7,704.8 Inventories 42.6 42.3 Trade accounts receivable 185.9 174.4 Other receivables and financial assets 455.8 426.4 Income tax receivables 21.1 1.0 Cash and cash equivalents 429.4 486.9 Current assets 1,134.8 1,131.0 Total assets 8,805.2 8,835.8 Liabilities & equity in mil. Q1E,14 YE,13 Issued capital 922.1 922.1 Capital reserve 590.3 590.2 Revenue reserve 1,566.5 1,558.7 Equity attr. to Fraport shareholders 3,078.9 3,071.0 Noncontrolling interests 44.0 45.7 Shareholders equity 3,122.9 3,116.7 Financial liabilities 3,945.1 3,948.1 Trade accounts payable 48.4 50.8 Other liabilities 492.0 491.6 Deferred tax liabilities 108.6 108.3 Provisions for pensions and similar oblig. 27.1 26.7 Provisions for income taxes 55.2 54.1 Other provisions 227.8 223.9 Noncurrent liabilities 4,904.2 4,903.5 Financial liabilities 252.7 290.6 Trade accounts payable 155.8 159.6 Other liabilities 145.2 123.1 Provisions for income taxes 4.9 7.7 Other provisions 219.5 234.6 Current liabilities 778.1 815.6 Total liabilities & equity 8,805.2 8,835.8
Slide 27 Special & Extraordinary Effects Q1 2014 mil. Q1 14 Q1 13 Group level Financial result: Market valuation of derivatives & F/X fluctuations 3.1 mil. + 3.8 mil. Segment level
Slide 28 Financial Position Maturity Profile & Cash Position as of March 31, 2014 mil. 4,000 3,500 4,198 Fraport debt conditions on average ~ 3.7 % interest rate ~ 5.5 years maturity 3,000 2,500 2,000 1,500 1,000 500 0 1,341 Liquidity as of March 31, 2014 Financial Liabilities 1,130 486 462 514 375 412 324 194 235 19 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023++
Slide 29 Restated FY 2013 IFRS 11 Accounting Change as of Jan. 1, 2014 Group Figures FY 2013 Restated Figures FY 2013 2,561 2,378 880 528 341 236 733 439 332 236 Revenue EBITDA EBIT EBT Group result Revenue EBITDA EBIT EBT Group result External Activities & Services FY 2013 Restated Figures FY 2013 591 286 174 416 145 89 Revenue EBITDA EBIT Revenue EBITDA EBIT
Slide 30 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. 121 mil. Free cash flow 73 mil. 17 mil. 56 mil. Total assets 9,523 mil. 8,836 mil. 687 mil. Shareholders equity 3,099 mil. 3,117 mil. + 18 mil. Net debt 2,975 mil. 2,871 mil. 104 mil. Gearing ratio 101% 97% 4PP
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