2013 Half Year Financial Results

Transcription

1 2013 Half Year Financial Results Thomas E. Kern Chief Executive Officer Daniel Schmucki Chief Financial Officer Zurich Airport

2 Schedule 1. Half Year Highlights 3 2. Half Year Key Data 4 3. Aviation 8 4. Non-Aviation OPEX & Other Key Figures Key Topics Outlook Half Year Financial Results

3 1. Highlights Restructuring of financial liabilities will lead to sustainable lower interest rates Swiss National Council & Council of States approve ratification of State Treaty CH/D Partial Implementation of Sectoral Aviation Infrastructure Plan (SAIP) Commercial Openings prove themselves Opening Expansion Car Park P6 The Circle : Commencement of Planning Stage Airport Charges: Negotiations failed Solid Operating Performance adversely affected by oneoff costs for restructuring of financial liabilities Half Year Financial Results

4 2. Half Year Key Data Half Year Financial Results

5 Half Year Traffic Figures in millions Jan-Jun 2013 Jan-Jun 2012 (in %) Local passengers % Transfer passengers % Transfer share (in %) % Total passengers % Movements (in 1'000) % whereof Line & Charter movements % Cargo (in 1'000 tons) % Half Year Financial Results

6 Financial Key Figures in million CHF Jan-Jun 2013 Jan-Jun 2012 (in %) Aviation revenue % Non-Aviation revenue % Revenue % EBITDA % EBITDA margin (in %) EBIT % EBIT margin (in %) Finance result (net) n/a Result % Interest-bearing liabilities (net) ' % Cash flow from operating activities % CAPEX % EpS (in CHF) % Result excluding negative one-off effect of restructuring financial liabilities: CHF 83.4 Mio. (+4.0%) Half Year Financial Results

7 Financial Key Figures excluding Noise in million CHF Jan-Jun 2013 Jan-Jun 2012 (in %) Aviation revenue % Non-Aviation revenue % Revenue % EBITDA % EBITDA margin (in %) EBIT % EBIT margin (in %) Finance result (net) n/a Result n/a Interest-bearing liabilities (net) 1' ' % Cash flow from operating activities % CAPEX % EpS (in CHF) n/a Result excluding negative one-off effect of restructuring financial liabilities : CHF 67.8 Mio Half Year Financial Results

8 3. Aviation Half Year Financial Results

9 Aviation Segment Revenue Breakdown in million CHF Jan-Jun 2013 Jan-Jun 2012 (in %) Passenger & Security fees % PRM fees % Landing fees % Noise Charges % Emission fees % Parking fees % Fuel charges % Freight revenue % Baggage sorting and handling system % Aircraft energy supply system % Other revenue % Total revenue aviation % Ø Landing charge per movement % Passenger & Security fees saw an over-proportionate increase due to local PAX development New noise charge framework as of May led to higher passenger-related noise charges Parking fees: Increase as a result of higher average maximum take-off weight (MTOW) and longer downtime of long-haul aircraft Other revenue: Harsh winter led to higher revenues of de-icing services Half Year Financial Results

10 Global Passenger Development (June 2013) North America Jun 2013 YTD 2013 Global Market +1.4% +1.0% from/to ZRH +0.9% +8.5% Europe Jun 2013 YTD 2013 Global Market +3.3% +1.7% from/to ZRH +0.6% -0.7% Middle East Jun 2013 YTD 2013 Global Market +10.6% +11.6% from/to ZRH -2.7% +3.1% Africa Jun 2013 YTD 2013 Global Market +6.3% +4.4% from/to ZRH +1.1% -6.6% Latin America Jun 2013 YTD 2013 Global Market +5.4% +4.5% from/to ZRH +0.0% +2.0% Asia-Pacific Jun 2013 YTD 2013 Global Market +6.6% +5.9% from/to ZRH +5.5% +1.3% Half Year Financial Results Worldwide Jun 2013 YTD 2013 Global Market +4.0% +3.2% from/to ZRH +0.8% +0.1% Quellen: ACI & ZRH data warehouse

11 4. Non-Aviation Half Year Financial Results

12 Non-Aviation Segment Revenue Breakdown in million CHF Jan-Jun 2013 Jan-Jun 2012 (in %) Retail, Tax & Duty free % Food & Beverage % Other commercial revenue % Commercial revenue % Rents & Leases % Utilities % Other real estate revenue % Real estate % Parking % Other services % Total revenue from non-aviation % Ø Revenue Retail, Tax & Duty Free, F&B per departing pax % Significantly higher average commercial revenue per passenger (+5.5%) Slight increase of rents & leases with unchanged low vacancy rate Other Services increased mainly due to first-time consolidation of A-Port Operaçiones Half Year Financial Results

13 Key Figures Commercial Business Mio CHF Development in m Commercial Turnover (in Mio.) Total PAX (in Mio.) Spend per dep. PAX Revenue per dep. PAX Landside total: ~ m 2 Airside total: ~ m HY 2012 HY 2013 HY 8.10 CHF Half Year Financial Results

14 5. OPEX & Other Key Figures Half Year Financial Results

15 Operating Expenses in million CHF Jan-Jun 2013 Jan-Jun 2012 (in %) Personnel expenses % Police and security % Energy and waste % Maintenance and material % Other operationg expenses % Sales, marketing, administration % Capitalised expenditure & other income % Total operating expenses % Excluding the first-time consolidation of A-Port Operaçiones (CHF 3.4 Mio.): Opex grew by 2.8% Higher employer restructuring contributions to the BVK Pension Fund triggered over-proportionate increase of personell expenses Increase of security costs because of higher hourly rates paid to the Airport Police as a result of their costs having increased because of their contributions to the BVK Pension Fund Harsh winter period resulted in a rise in energy and waste as well as maintenance and material costs Lower sales, marketing and administration expenses due to strict cost management Half Year Financial Results

16 Finance Result Reduction interst expense Termination costs hedging instrument Transaction costs JPP Foreign currency gain JPP Others million CHF Half Year Financial Results

17 Result Breakdown Jan-Jun 2013 Jan-Jun 2012 in million CHF (in %) EBITDA % EBITDA margin (in %) Depreciation and amortisation % EBIT % EBIT margin (in %) Finance result (net) n/a Associated companies % Income tax expense % Result % Excluding first-time consolidation of A-Port Operaçiones: EBITDA margin 52.6% Commissioning of new airport infrastructure during the last two years resulted in higher depreciation and amortisation Reduced income tax expenses as a result of tax deductible costs for restructuring JPP Result without one-off effect of restructuring financial liabilities: CHF 83.4 Mio Half Year Financial Results

18 Financial Liabilities (per ) Debt Portfolio (in 1 000) Maturity Structure Financial liabilities Nominal value Carrying amount Maturity Interest rate USPP USD CHF & % Bond CHF CHF % Bond CHF CHF % Bond CHF CHF % Bond CHF CHF % Lease liabilities CHF CHF Annuity until 2020 n/a Total CHF Half Year Financial Results

19 Other Key Figures in million CHF Net financial debt / EBITDA incl. noise Jan-Jun 2013 Jan-Jun 2012 Jan-Jun 2013 Jan-Jun x 2.01x Unchanged solid financial key figures Decrease of financial debts as a result of stable cashflows Cashflow from operating activities not adversely affected by increasing net working capital such as in prior year period Excluding one-off effects: ROIC stable with 6.7% (excluding noise, 12 months rolling) excl. noise 3.19x 2.80x Net financial debt (in %) ' ' '270.0 ROIC (in %) Return on Equity (in %) Equity Ratio (in %) Cashflow from operating activites whereof CAPEX (CF statement) Free Cashflow EpS (in CHF) Half Year Financial Results

20 6. Key Topics Half Year Financial Results

21 Investments Investments per (in million CHF) 2013 planned investment costs for largest projects 1 Upgrade Terminal Various Civil Engineering maintenance projects The Circle Expansion Parking Noise Protection Hangar General Wastewater Plan- Renewal (GEP) Renovation Runway 14/ Noise Protection Hangar ~ CHF 15 Mio. Echo Nord Aircraft Stands ~ CHF 10 Mio. 8 Construction Logistics Airside Center Retail (Chalet Suisse, BA Lounge) Stands Echo Nord Renovation Car Park Other Investments 28.4 Total Investments (Cash out) Upgrade T2 ~ CHF 40 Mio. Parking Expansion ~ CHF 26 Mio Half Year Financial Results

22 Update on «The Circle» Current Developments Jun 2013: Preliminary project completed Jun 2013: First approach of equity investors and debt providers Aug 2013: Board decided to start construction planning as next project phase Next steps according to current project timeline Sep 2013: Start due diligence with potential financing partners Oct 2013: Start construction planning End of 2013: Financing contracts to be signed End of 2014: Start of construction if conditions are met Half Year Financial Results

23 Airport Charges: Negotiations failed Flughafen Zürich AG sincerely regrets that no agreement was reached The final proposal of Flughafen Zürich AG provided: Keep high quality standards for both passenger and airlines Remaining high investments into aviation infrastructure over the next 4 years in order to deal with expected growth, especially during hub peak times Temporary suspension of the passenger noise charge in accordance with a directive of the Federal Office of Civil Aviation Moderate tariff adjustments within a low single-digit percentage Half Year Financial Results

24 Airport Charges:Time schedule after negotiations failed Start of negotiations Negotiations extended with for 2 months Sep. Negotiation result: No agreement Submission of Airport Charges proposal to the Federal Office of Civil Aviation (FOCA) Oct. BAZL decision of approval: Not before October 2014 Planned implementation per (possible appeals could delay implementation) Half Year Financial Results

25 7. Outlook Half Year Financial Results

26 Outlook 2013: Traffic & Commercial Figures Traffic Figures in millions Jan-Jul 2013 Jan-Jul 2012 (in %) Local passengers % Transfer passengers % Transfer share (in %) % Total passengers % Movements (in 1'000) % whereof Line & Charter movements % Cargo (in 1'000 tons) % Commercial Figures Jan-Jul 2013 Jan-Jul 2012 (in %) Total Turnover, m CHF % Airside (Change vs. previous year period in %) Landside (Change vs. previous year period in %) Commercial Turnover/ dep. pax, CHF % Airside (Change vs. previous year period in %) Landseite (Veränderungen ggü. Vorjahr in %) Half Year Financial Results

27 Timetable 2013/2014 Service / frequency additions Singapore Kiew Reductions / cancellations Bejing Bucharest Cairo OTHERS Emirates: A380-Service Edelweiss Air Eurolot Germanwings Czech Airlines Hainan Half Year Financial Results

28 Guidance unchanged The Guidance 2013 is based on the full year results 2012 (excl. the effects from IAS 19 / finance result) vs. expected full year result 2013 (excl. the effects from finance result): Passenger moderate growth (0-1%) Revenue: + 2-3% whereof Aviation: proportionate to traffic volume whereof Non-aviation: over-proportionate growth EBITDA margin: stable Depreciation & amortisation: slightly higher Profit including noise: slightly higher Profit excluding noise: slightly higher Investments: million CHF Half Year Financial Results

29 8. Your Questions Half Year Financial Results

30 Customer Segments ZRH HY YTD Star Alliance 70.7% 2013 YTD One World 9.4% Passagierwachstum zum Vorjahr Positive Entwicklungen (u.a. LX, TK, UA, LH) kompensieren negative Entwicklungen (z.b. KF, SK, TG). Star Alliance seit Jahresanfang Sky Team 4.1% Sparprogramm der airberlin Group (AB, 4T, HG), BA im Plus Alitalia neu nach Rom, CSA wieder nach Prag, KLM mit mehr Passagieren One World Sky Team Charter 0.8% Charter Grounding von Hello -60% -50% -40% -30% -20% -10% 0% 10% 20% 30% 40% 0% 20% 40% 60% 80% 100% Half Year Financial Results

31 ZRH Traffic Efficiency Development Seat Load Factor 73% Seat Load Factor Passengers per Movement Average Take-Off Weight 72% 71% 70% 69% 68% 67% 66% 65% 64% 63% 62% 61% Passengers per Movement Average Take-Off Weight % HY1/2003 HY1/2004 HY1/2005 HY1/2006 HY1/2007 HY1/2008 HY1/2009 HY1/2010 HY1/2011 HY1/2012 HY1/2013 Source: Zurich Airport, data warehouse, Half Year Financial Results

32 Star Alliance Hubs HY % 15% 10% BR U CP H FR A MU C VIE 5% 0% CPH BRU FRA ZRH VIE MU -5% -10% Half Year Financial Results