Analyst Presentation Q Frankfurt May 4, Dr. Matthias Zieschang CFO

Transcription

1 Analyst Presentation Q Frankfurt May 4, 2016 Dr. Matthias Zieschang CFO

2 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 forwardlooking statements that are based on current estimates and assumptions made by the management of Fraport to the best of its knowledge. Such forwardlooking statements are subject to risks and uncertainties, the nonoccurrence 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 forwardlooking statements. This also applies to the forward looking estimates and forecasts derived from thirdparty 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.

3 3 Agenda Traffic Insight Business Update Q Financials FY 2016 Outlook

4 4 Traffic Insight Group Passenger Results (stakes above 10%) IATA Code Airport Share March 2016 D previous year YTD 2016 D previous year FY 2015 CAGR FRA Frankfurt, Germany 100% 4, % 12, % 61, % LJU Ljubljana, Slovenia 100% % % 1, % LIM Lima, Peru 70% 1, % 4, % 17, % BOJ Burgas, Bulgaria 60% % % 2, % VAR Varna, Bulgaria 60% % % 1, % AYT Antalya, Turkey 51% % 2, % 27, % LED St. Petersburg, Russia 35.5% % 2, % 13, % HAJ Hanover, Germany 30% % 1, % 5, % XIY Xi an, China 24.5% 2, % 8, % 32, %

5 5 Traffic Insight Focus Frankfurt MAR 2016 D % YTD 2016 D % FY 2015 Passengers in `000 4, , ,032 Movements 37, , ,153 MTOW in `000 tons 2, , ,543 Cargo in `000 tons ,077 90% 85% 80% Seat load factor YTD 2016 YTD 2015 Passenger per movement +2.6 Pass. 75% 70% 65% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Passenger guidance FY2016: Growth between ~1% and ~3% Passenger figures according to ACI, commercial traffic only; cargo includes air freight and air mail

6 6 Traffic Insight Focus Frankfurt Weakness on outbound routes esp. to touristic destinations of Islamic countries Strong increase on routes to the Caribbean, Thailand, and Middle East Far East among others down due to stop of Malaysian services China with growth in April Prebookings for Summer period show continuation of negative trend with regard to Northern Africa and Turkey Major declining destinations Change vs. April % 17% 21% 14% FRA Far East 3% Central America +20% Northern Africa 18% Middle East +3%

7 7 Traffic Insight Focus Antalya Strong seasonality in passenger traffic: <10% of total traffic in q1 Low seasonality in domestic traffic: each month only between 400k and 600k Domestic traffic = between 20 and 25% of total traffic on FY basis High seasonality in international traffic: 5% of total in q1, 15% in q4 and 80% in q2 and q3 Q1 figures positively impacted by domestic traffic: +13% compared to 2015 and negatively by international traffic 22% Passengers in million Domestic 2016 Domestic 2015 International 2016 International January February March April May June July August September October November December

8 8 Traffic Insight Focus Antalya 4 International passengers in million YTD April: c.30% 0 January February March April May June July August September October November December High volatility due to Russian sanctions and terrorist attacks in Ankara and Istanbul Decrease driven by Russian (85%) and German passengers (27%) Compensating effects from domestic traffic (YTD April +13%) Increased uncertainty regarding traffic development in main season Feedback from tour operators and tourism fairs: No Russian charter flights in 2016 expected, strong decrease of European passengers possible Lastminute bookings could mitigate the decrease

9 9 Agenda Traffic Insight Business Update Q Financials FY 2016 Outlook

10 10 Business Update Frankfurt & External Activities Terminal 3 Excavation work finished on time Special civil engineering to follow up from Q4/2016 Landside access also to be started in next few months Multichannel New stores included in online platform Test phase of loungedelivery and inflight shopping started Greek regional airports +21% passengers in q Antitrust approval granted Good process in project financing CEO and CTO appointed

11 11 Agenda Traffic Insight Business Update Q Financials FY 2016 Outlook

12 12 Group P&L Q Decline in EBITDA, good Net Result P&L in mil. Q1 16 Q1 15 % Revenue excl. IFRIC EBITDA EBIT EBT Group result EPS in Comments Adjusted for consolidation effects: c.15m revenue growth Headwind from Retail revenue, noncapitalizbl. capex & multi channel cost Improvement in financial result from lower interest expenses and strong negative 2015 CHF loan revaluation Bottomline results with good growth Revenue by segment in mil. EBITDA by segment in mil. 576 Revenue Q ±0 Aviation 1 Retail & Real Estate 8 Ground Handling External Activities & Services Revenue Q EBITDA Q Aviation 9 Retail & Real Estate Ground Handling External Activities & Services EBITDA Q Due to commercial rounding slight discrepancies may occur when summing up, percent changes based on unrounded figures

13 13 Group P&L Q Growth in External & Ground Handling EBITDA 7.5 mil. mil EBITDA Q 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 Q Segment share in Group EBITDA Q Segment share in Group EBITDA Q External Activities & Services 21.8% 20.0% Aviation External Activities & Services 23.2% 20.4% Aviation Ground Handling: negative Ground Handling 1.3% 58.2% Retail & Real Estate 55.1% Retail & Real Estate Due to commercial rounding slight discrepancies may occur when summing up

14 14 Group P&L Q Group Result up due to Improvement in Financial Result mil mil ±0 Group result Q EBITDA D&A Financial result Taxes Group result Q EPS Q EPS Q Split of financial result Comments mil Q1 16 Q1 15 % Interest income Interest expenses At equity result Other result 1 9 Financial result Improved interest result from lower interest rates and lower indebtedness Antalya in offseason mildly negative on at equity result Positive results in Hanover and Xi an with 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 15 Group Asset & Financial Situation Q Lower OffSeason OCF leads to decline in Free Cash Flow Operating cash flow Intangible assets PPE Airport operating projects Investment property DVDs from investments Free cash flow mil ± Q Q Q development Lower OCF due to c. 13 mil. increase in oneoff tax payments and minor changes in working capital Spending on PPE ahead of q due to mild winter Seasonal increase in DVDs from investments leads to FCF of 45 mil. FY 2016 Outlook 2016 capex on 2015 level or slightly above Subject to dividends from Antalya, 2016 FCF expected to be on 2015 level Including DVD payout, 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

16 Due to commercial rounding slight discrepancies may occur when summing up 1) FCF predividend payout; figures correspond to Q1 figures 2) Net debt divided by equity less noncontrolling interests and profit earmarked for distribution 16 Group Asset & Financial Situation Q Slight DeLeverage to 2.75 bn FCF 1 Liquidity Gross debt Net debt Equity Gearing 2 mil. 3,819 3,817 2,749 2,774 3,520 3,512 83% 84% ,070 1,043 March 31, 2016 Dec. 31, 2015 Cash development FCF slightly takes up liquidity Net debt slightly down at 2.75 bn. Despite positive FCF: FY 2016 liquidity to go down due to debt repayments, DVD cash out + potential Greek upfront payment Balance sheet Equity unchanged at 3.5 bn. Gearing ratio at 83%, slightly down on Dec. 31, 2015 Equity ratio w/o profit earmarked for distribution and minority interests at 38% (Dec. 31, 2015: 37%)

17 17 Segment Aviation Q Flat Revenue and Earnings P&L in mil. Q1 16 Q1 15 % Revenue Airport charges Security Services Other revenue EBITDA EBIT 1 0 Comments Increase in airport charges due to +3% passengers and +1% movements Security business down due to loss of T1 concourse B contract Headwind from noncapitalizable capex and higher maintenance cost Employees 6,091 5, EBITDA performance in mil. 31 ± Revenue split 4.5% Other Security Services 12.5% EBITDA Q Revenue Other income Staff cost Other EBITDA Q % Aviation charges Due to commercial rounding slight discrepancies may occur when summing up, percent changes based on unrounded figures

18 18 Segment Retail & Real Estate Q Weak Retail & additional Cost decrease EBITDA P&L in mil. Q1 16 Q1 15 % Revenue Retail Real Estate Parking Other revenue EBITDA EBIT Employees Comments Decline in Retail revenue despite growth in passenger volume Higher cost from noncapitalizable capex, cost to start multichannel program & allocation of internal cost EBITDA and EBIT down on previous year EBITDA margin at 71% EBITDA performance in mil. Revenue split Parking 1.5% Other 16.7% 38.7% Retail EBITDA Q Revenue Other income Staff cost Other EBITDA Q Real Estate 43.1% Due to commercial rounding slight discrepancies may occur when summing up, percent changes based on unrounded figures

19 19 Segment Retail & Real Estate Q Retail per Passenger c.8% down on PY Retail revenue per Passenger Q1 13: 3.74 Q1 14: 3.69 Q1 15: 3.93 Q1 16: 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 Q

20 20 Segment Retail & Real Estate Q Negative Development of Core Spending Destinations Top 5 by Retail Value Top 5 by Volume Volume Development Change vs. q in % Retail Revenue per Passenger in EUR China Russia South Korea Japan Vietnam USA Turkey Germany India UAE Change vs. q in % Source: sales/revenue data of Gebr. Heinemann by destinations

21 21 Segment Ground Handling Q Disposal of Cargo Subsidiary grows EBITDA & margin P&L in mil. Q1 16 Q1 15 % Revenue Ground Handling Infrastructure Other revenue 4 >100 EBITDA 2 0 >100 EBIT 8 10 Comments Adjusted for consolidation effect: c.6m revenue & 0.5m EBITDA growth, EBIT: flat Traffic performance leads to underlying revenue and EBITDA growth Slightly higher D&A leads to flat underlying EBIT Employees 8,993 9, EBITDA performance in mil. Revenue split Infrastructure 47.0% 2.9% Other revenues 50.1% Ground Handling EBITDA Q Revenue Other income Staff cost Other EBITDA Q Due to commercial rounding slight discrepancies may occur when summing up, percent changes based on unrounded figures

22 22 Segment External Activities & Services Q Lima, Ljubljana and Twin Star continue to perform P&L in mil. Q1 16 Q1 15 % Revenue excl. IFRIC EBITDA EBIT Employees 4,516 4, Comments Adjusted for consolidation effect: c.9m revenue, 0.7m EBITDA & 0.8m EBIT growth Good growth in Lima from traffic and positive US$ effect Ljubljana, Twin Star & AMU with solid operations Additional maintenance cost in FRA EBITDA performance in mil. Revenue split ±0 ± Ljubljana Other 6.5% 16.5% EBITDA Q LAP LJU Twin AMU Air IT Other EBITDA Star Q Airmall 11.9% Twin Star 2.0% 63.1% Lima Due to commercial rounding slight discrepancies may occur when summing up, percent changes based on unrounded figures

23 23 External Activities Q Fully consolidated Investments Airmall Ljubljana Lima Twin Star mil. Q1 16 Q1 15 % Q1 16 Q1 15 % Q1 16 Q1 15 % Q1 16 Q1 15 % Revenue ex IFRIC EBITDA margin adjusted % % % % % 39.7% % 38.2% EBIT margin adjusted 0 2.2% 1 4.5% % 33.3% % 30.8% Result Passengers in mil Figures refer to IFRS accounting, not local GAAP, percent changes based on unrounded figures

24 24 External Activities Q At Equity consolidated Investments Antalya Pulkovo Hanover Xi An mil. Q1 16 Q1 15 % Q1 16 Q1 15 % Q1 16 Q1 15 % Q1 16 Q1 15 % Revenue ex IFRIC EBITDA margin adjusted % % % 35.9% % 44.0% % 3 8.7% % % 24.5 EBIT margin adjusted % 12.5% % 21.1% % % 38.0 Result Passengers in mil Except for Xi an all figures refer to IFRS accounting, percent changes based on unrounded figures

25 25 Agenda Traffic Insight Business Update Q Financials FY 2016 Outlook

26 *Without taking account of potential closing of Greek deal ** Group result before minorities 26 FY 2016 Outlook* Unchanged Outlook 2016 Outlook Passengers FRA between +~1% and +~3% Revenue up to 2.65 bn EBITDA between ~ 850 and ~ 880 mil. EBIT between ~ 520 and ~ 550 mil. Group result** on PY level or slightly above Dividend proposal at least stable

27 Thank you for your Attention!

28 28 Appendix Subsequent financial information

29 29 Appendix Special Effects Q mil. Q Q Group financial result Market valuation of derivatives & F/X fluctuations Segment Ground Handling FCS disposed Nov Revenue 14.7 EBITDA 1.5 EBIT 1.9 Segment External Activities IFRIC 12 revenue Air Transport IT disposed April 2015 Revenue 3.4 EBITDA 0.3 EBIT 0.2

30 30 Appendix Maturity Profile & Cash Position as at March 31, 2016 mil. 4,500 4,000 3,819.4 Fraport debt conditions on average ~ 3.4% interest rate ~ 4.5 years maturity 3,500 3,000 2,500 Bookvalue nominal 2,000 1,500 1, ,070.4 Liquidity as of Mar 31, 2016 Financial Liabilities 1,

31 31 Appendix Status Greece Acquisition Airports 14 Greek regional airports, 77% international share, around 23 million passengers in 2015 Fraport Share & Partner Upfront payment Fraport will hold minimum 65 percent 1.2 bn. upfront payment Concession Payment Concession Length 22.9 mil. fixed annual concession payments (indexed with Greek inflation rate) From 2020 variable payment of ~28.5% of EBITDA (before variable concession payment ) 40 years Capex Regulation ~ 330 mil. capex requirements between , afterwards maintenance capex, capex for further extension depending on traffic growth Dual Till Airport Charges Retail Development Traffic Growth Assumption Capped at 13 per departing passenger in 2017, after initial capex capped at 18.50, thereafter indexation with 90% of the Greek inflation rate annually Very small retail outlets existing; space will roughly triple after first construction phase; new operating concepts like walk through will be introduced Not disclosed in detail business case assumes conservative growth over concession period of about 2.5% p.a.

32 32 Appendix IR Contact Fraport AG Frankfurt Airport Services Worldwide Frankfurt am Main Stefan J. Rüter Head of Finance & Investor Relations Svenja Ebeling Investor Relations Assistant Florian Fuchs Investor Relations Manager Tanja Nagel Financial Reporting Manager Maximilian Schultheis Financial Reporting Manager