Analyst Presentation Q1 2016 Frankfurt May 4, 2016 Dr. Matthias Zieschang CFO
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3 Agenda Traffic Insight Business Update Q1 2016 Financials FY 2016 Outlook
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 2010 2015 FRA Frankfurt, Germany 100% 4,787 +3.9% 12,926 +3.3% 61,032 +2.9% LJU Ljubljana, Slovenia 100% 94 +3.3% 245 +3.9% 1,438 +0.7% LIM Lima, Peru 70% 1,502 +12.1% 4,482 +11.5% 17,113 +10.7% BOJ Burgas, Bulgaria 60% 12 +29.6% 35 +15.4% 2,360 +4.7% VAR Varna, Bulgaria 60% 29 +20.1% 83 +23.4% 1,399 +3.1% AYT Antalya, Turkey 51% 999 4.0% 2,352 2.8% 27,523 +4.4% LED St. Petersburg, Russia 35.5% 830 3.9% 2,316 6.2% 13,500 +9.8% HAJ Hanover, Germany 30% 406 +0.9% 1,008 +3.4% 5,453 +1.5% XIY Xi an, China 24.5% 2,911 +7.5% 8,596 +13.0% 32,970 +12.9%
5 Traffic Insight Focus Frankfurt MAR 2016 D % YTD 2016 D % FY 2015 Passengers in `000 4,787 +3.9 12,296 +3.3 61,032 Movements 37,503 +0.8 105,844 +1.0 468,153 MTOW in `000 tons 2,447 +3.2 6,861 +3.4 29,543 Cargo in `000 tons 183 1.6 497 1.2 2,077 90% 85% 80% Seat load factor 2016 2015 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 120 125 130 135 140 Passenger guidance FY2016: Growth between ~1% and ~3% Passenger figures according to ACI, commercial traffic only; cargo includes air freight and air mail
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 2015 23% 17% 21% 14% FRA Far East 3% Central America +20% Northern Africa 18% Middle East +3%
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% 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 4 International passengers in million 3 2 1 YTD April: c.30% 0 January February March April May June July August September October November December 2015 2016 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 Agenda Traffic Insight Business Update Q1 2016 Financials FY 2016 Outlook
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 q1 2016 Antitrust approval granted Good process in project financing CEO and CTO appointed
11 Agenda Traffic Insight Business Update Q1 2016 Financials FY 2016 Outlook
12 Group P&L Q1 2016 Decline in EBITDA, good Net Result P&L in mil. Q1 16 Q1 15 % Revenue 573 576 0.6 excl. IFRIC 12 568 572 0.8 EBITDA 146 153 4.9 EBIT 64 72 10.7 EBT 22 16 +39.7 Group result 15 11 +42.5 EPS in 0.16 0.11 +45.5 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 Q1 2015 ±0 Aviation 1 Retail & Real Estate 8 Ground Handling +6 573 External Activities & Services Revenue Q1 2016 153 EBITDA Q1 2015 1 Aviation 9 Retail & Real Estate +2 +1 146 Ground Handling External Activities & Services EBITDA Q1 2016 Due to commercial rounding slight discrepancies may occur when summing up, percent changes based on unrounded figures
13 Group P&L Q1 2016 Growth in External & Ground Handling EBITDA 7.5 mil. mil. 153 5 +1 1 2 1 1 +1 146 EBITDA Q1 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 Q1 2016 Segment share in Group EBITDA Q1 2015 Segment share in Group EBITDA Q1 2016 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 Group P&L Q1 2016 Group Result up due to Improvement in Financial Result + 4.5 mil. + 0.05 mil. 11 7 +13 2 15 0.11 0.16 ±0 Group result Q1 2015 EBITDA D&A Financial result Taxes Group result Q1 2016 EPS Q1 2015 EPS Q1 2016 Split of financial result Comments mil Q1 16 Q1 15 % Interest income 9 8 +10.3 Interest expenses 38 42 At equity result 12 13 Other result 1 9 Financial result 43 56 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 Group Asset & Financial Situation Q1 2016 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. 90 114 3 46 1 58 5 4 ±0 4 +19 +8 65 45 Q1 2016 Q1 2015 Q1 2016 development Lower OCF due to c. 13 mil. increase in oneoff tax payments and minor changes in working capital Spending on PPE ahead of q1 2015 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
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 Q1 2016 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% 45 65 1,070 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 Segment Aviation Q1 2016 Flat Revenue and Earnings P&L in mil. Q1 16 Q1 15 % Revenue 200 200 0.2 Airport charges 166 164 +0.9 Security Services 25 27 5.6 Other revenue 9 10 4.1 EBITDA 30 31 3.3 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 5,976 +1.9 EBITDA performance in mil. 31 ±0 +2 2 1 30 Revenue split 4.5% Other Security Services 12.5% EBITDA Q1 2016 Revenue Other income Staff cost Other EBITDA Q1 2016 83.0% Aviation charges Due to commercial rounding slight discrepancies may occur when summing up, percent changes based on unrounded figures
18 Segment Retail & Real Estate Q1 2016 Weak Retail & additional Cost decrease EBITDA P&L in mil. Q1 16 Q1 15 % Revenue 113 113 0.6 Retail 44 46 6.0 Real Estate 49 47 +4.1 Parking 19 19 1.1 Other revenue 2 1 +30.8 EBITDA 80 89 10.0 EBIT 59 68 13.2 Employees 645 611 +5.6 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 89 1 1 1 6 80 Parking 1.5% Other 16.7% 38.7% Retail EBITDA Q1 2015 Revenue Other income Staff cost Other EBITDA Q1 2016 Real Estate 43.1% Due to commercial rounding slight discrepancies may occur when summing up, percent changes based on unrounded figures
19 Segment Retail & Real Estate Q1 2016 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: 3.62 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 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 27 31 33 33 26 29 32 32 30 34 35 32 28 11 13 14 13 12 14 14 13 13 14 16 14 13 6 8 9 11 7 7 8 10 7 9 10 10 7
20 Segment Retail & Real Estate Q1 2016 Negative Development of Core Spending Destinations Top 5 by Retail Value Top 5 by Volume Volume Development 5 1 7 1 4 7 Change vs. q1 2015 in % 2 13 7 2 Retail Revenue per Passenger in EUR China Russia South Korea Japan Vietnam USA Turkey Germany India UAE 10 12 10 6 2 Change vs. q1 2015 in % 16 25 2 11 3 Source: sales/revenue data of Gebr. Heinemann by destinations
21 Segment Ground Handling Q1 2016 Disposal of Cargo Subsidiary grows EBITDA & margin P&L in mil. Q1 16 Q1 15 % Revenue 146 155 5.4 Ground Handling 73 88 17.0 Infrastructure 69 66 +3.8 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 9,505 5.4 EBITDA performance in mil. Revenue split 0 8 +0 +2 +8 2 Infrastructure 47.0% 2.9% Other revenues 50.1% Ground Handling EBITDA Q1 2015 Revenue Other income Staff cost Other EBITDA Q1 2016 Due to commercial rounding slight discrepancies may occur when summing up, percent changes based on unrounded figures
22 Segment External Activities & Services Q1 2016 Lima, Ljubljana and Twin Star continue to perform P&L in mil. Q1 16 Q1 15 % Revenue 113 107 +5.6 excl. IFRIC 12 109 104 +4.5 EBITDA 34 33 +1.2 EBIT 14 13 +4.6 Employees 4,516 4,550 0.7 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 33 +4 +1 +1 ±0 ±0 5 34 Ljubljana Other 6.5% 16.5% EBITDA Q1 2015 LAP LJU Twin AMU Air IT Other EBITDA Star Q1 2016 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 External Activities Q1 2016 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 12 14 13 0.7 7 7 8.8 72 67 64 60 12.6 11.2 2 2 2 2 21.1 27.8 EBITDA margin adjusted 2 17.8% 3 20.1% 11.1 2 29.7% 2 25.0% 29.4 27 37.1% 39.7% 23 36.1% 38.2% 15.7 1 2 EBIT margin adjusted 0 2.2% 1 4.5% 50.0 0 1 22 31.0% 33.3% 19 29.1% 30.8% 20.0 4 4 Result 1 1 25.0 0 1 13 10 25.5 5 6 Passengers in mil. 0.2 0.2 3.9 4.5 4.0 11.5 0.1 0.1 20.9 Figures refer to IFRS accounting, not local GAAP, percent changes based on unrounded figures
24 External Activities Q1 2016 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 12 18 21 16.2 33 33 46 44 27.9 24.5 32 31 2.6 51 44 16.6 EBITDA margin adjusted 8 46.0% 12 55.2% 30.2 12 35.9% 35.9% 19 42.1% 44.0% 38.5 5 14.8% 3 8.7% 74.1 24 46.7% 19 43.7% 24.5 EBIT margin adjusted 16 13 4 12.5% 12.5% 9 20.2% 21.1% 55.4 0 2 11 21.3% 8 18.0% 38.0 Result 33 31 9 34 1 4 7 4 86.6 Passengers in mil. 2.4 2.4 2.8 2.3 2.5 6.2 1.0 1.0 3.4 8.6 7.5 13.0 Except for Xi an all figures refer to IFRS accounting, percent changes based on unrounded figures
25 Agenda Traffic Insight Business Update Q1 2016 Financials FY 2016 Outlook
*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
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28 Appendix Subsequent financial information
29 Appendix Special Effects Q1 2016 mil. Q1 2016 Q1 2015 Group financial result Market valuation of derivatives & F/X fluctuations 1.3 9.0 Segment Ground Handling FCS disposed Nov. 2015 Revenue 14.7 EBITDA 1.5 EBIT 1.9 Segment External Activities IFRIC 12 revenue 4.9 3.6 Air Transport IT disposed April 2015 Revenue 3.4 EBITDA 0.3 EBIT 0.2
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 1,000 500 0 1,070.4 Liquidity as of Mar 31, 2016 Financial Liabilities 1,132.6 441.5 517.0 422.5 400.7 348.6 295.0 185.8 32.6 2.6 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025++
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 20172020, 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 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