analyst presentation 9m 2017 - fraport.decontent.file/analyst-presentation-9m-2017.pdf · 4 analyst...

Fraport AG

November 2, 2017 / Frankfurt Main

Analyst Presentation 9M 2017

Dr. Stefan Schulte / CEO

Dr. Matthias Zieschang / CFO

Fraport AG

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 whetherexpress or implied is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctnessof the information or opinions contained therein. Neither the company nor any of its affiliates, advisors or representatives shallhave any liability whatsoever (in negligence or otherwise) for any loss arising from any use of this document or its content orotherwise 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 norany part of it shall form the basis of, or be relied upon in connection with, any contract or commitment whatsoever.

This document contains forward-looking statements that are based on current estimates and assumptions made by themanagement of Fraport to the best of its knowledge. Such forward-looking statements are subject to risks and uncertainties,the non-occurrence or occurrence of which could cause the actual results including the financial condition and profitability ofFraport to differ materially from or be more negative than those expressed or implied by such forward-looking statements.This also applies to the forward looking estimates and forecasts derived from third-party studies. Consequently, neither thecompany nor its management can give any assurance regarding the future accuracy of the opinions set forth in this documentor the actual occurrence of the predicted developments.

By accepting this document, you agree with the foregoing.


Disclaimer

Fraport AG

- Financial Highlights

- Traffic Performances

- Business Update

- 2017 Outlook

- Detailed Financials


Agenda

Fraport AGAnalyst Presentation 9M 20174

Financial Highlights

Strong Growth driven by External Activities

Outlook fulfilled. Underlying EBITDA at ~851 mil. & Group result at ~293 mil.

mil.

1,960

2,229

9M 2016 9M 2017

Revenue

677

808

9M 2016 9M 2017

EBITDA

239

342

9M 2016 9M 2017

Group resultbefore minorities

Strong Group-wide traffic performances support earnings growth

Sharp increase in revenue also due to first-time contribution of Fraport Greece

Key driver for additional EBITDA: External Activities

Strong increase in Group result also driven by Antalya recovery

EPS at EUR 3.35 (2016: EUR 2.35)

Fraport AG



- Business Update

- 2017 Outlook



Agenda


Traffic Performances

Group-wide Passenger Figures up!

Airport operationsFraport

Share

SEP

2017

Dprevious

year

YTD

2017

Dprevious

year

FY

2016

Frankfurt 100% 6,229 +5.4% 48,866 +4.6% 60,787

Ljubljana 100% 180 +18.9% 1,298 +20.4% 1,405

Greek regionals 73.4% 4,196 +11.4% 23,903 +10.5% 25,289

Lima 70.01% 1,755 +10.9% 15,268 +9.0% 18,845

Twin Star 60% 738 +6.7% 4,680 +6.4% 4,568

Antalya 51% 3,761 +50.4% 21,731 +43.7% 19,028

Hanover 30% 659 +12.5% 4,499 +8.4% 5,409

St. Petersburg 25% 1,669 +20.5% 12,610 +23.8% 13,265

Xian 24.5% 3,634 +10.8% 31,177 +13.1% 36,997

Prelim. FRA Traffic

Oct: +6.3% I YTD: +4.8%

Fraport AG



- Business Update

- 2017 Outlook



Agenda

Fraport AG

Strong first operational season

Passenger figures up by 10.5%

to 23.9 mil.

2017 passenger outlook

lifted to ~10% growth

EUR 400 mil. capex program

approved by Greek State in

September

Initial measures and quick wins

already implemented

Main constructions about to

start


Business Update

Greece

Chania

+5.3%

Skiathos

+4.4%

Mykonos

+19.3%

Santorini

+12.0%

Rhodes

+5.9%

Kos

+18.5%

Samos

+14.7%

Mytilene

+4.9%

Corfu

+5.2%

Aktion

+18.6%

Zakynthos

+16.4%

Kefalonia

+13.7%

Thessaloniki

+13.3%

Kavala +12.2%

0

50

100

150

200

2017 2018 2019 2020

Rough capex phasing mil.


Porto Alegre: 7.6 mil. Passengers in 2016

Fortaleza: 5.7 mil. Passengers in 2016

Business Update

Brazil

Current status:

Management team fully staffed

Local offices established

Capex plans finalized

Next steps:

Tendering of construction works

Hiring of operational staff and

implementing IT processes

Operational transfer: Jan. 2018

Concession 25 years

Purchase price 290.5m BRL upfront

91.5m BRL as of year 6*

+5% p.a. revenue component

Investment

obligations

RWY refurbishment & extension

Terminal refurbishment & extension

Apron positions

Retail expansion

Concession 30 years

Purchase price 425.0m BRL upfront

1,080.8m BRL as of year 6*

+5% p.a. revenue component

Investment

obligations

RWY refurbishment & extension

Terminal refurbishment & extension

Apron positions

Retail expansion

*spread over concession term


Business Update

2017/18 Frankfurt Winter Flight Season

New Winter Flight Schedule as of October 29, 2017

1Seat capacity growth:

~8%, of which

Europe: ~11% and

Intercont: ~2.5%2 3

Strongest growth from

Lufthansa and Ryanair

with combined 16 new

continental destinations

Movement growth:

~8%, of which

Europe: ~10% and

Intercont: ~1%


Strong growth of

LCC &

market consolidation

Integration of

Point-to-Point

traffic / carriers

into hub network

Passengers:

increasingly autonomous and

price sensitive

(self-connector)

New Generation

of short and long haul

aircraft types

Business Update

Changes to Market Environment


Business Update

New Infrastructure to enhance Frankfurt Airport

Special excavation works progresses as planned

Building application for Pier G filed

Tendering of people mover currently underway

Tendering of Piers H & J planned for H1 2018


Business Update

Existing FRA Terminals also in Focus

2007 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17

94

44

2116 20

15 11 13 13 12 10

Frankfurt Airport Skytrax Ranking

Fraport AG



- Business Update

- 2017 Outlook



Agenda


2017 Outlook

Unchanged Outlook

2016 Results 2017 Outlook

Passengers FRA 60.8 mil. Growth of ~5%

Revenue 2.59 bn Up to ~ 2.9 bn

EBITDA 1,054 mil.Between ~980 mil.

and ~1,020 mil.

EBIT 694 mil.Between ~610 mil.

and ~650 mil.

Group result before minorities 400 mil.Between ~310 mil.

and ~350 mil.

Dividend proposal Lifted to 1.50 / share Stable

Fraport AG



- Business Update

- 2017 Outlook



Agenda


Detailed Financials

Summary of Group Results

32%

22%18%

28%35%

25%

19%

21%

25%

5%

36%

34%28%

7%42%

23%

Aviation GH Retail & RE External Act.

Aviation GH Retail & RE External Act.

P&L in mil. 9M 17 9M 16 %

Revenue 2,229 1,960 +13.7

-excl. IFRIC 12 2,206 1,945 +13.4

Total revenue 2,281 2,009 +13.5

EBITDA 808 677 +19.4

D&A 268 247 +8.3

EBIT 540 430 +25.7

Interest result -110 -83 -32.2

At equity result 36 2 >100

Other financial result 9 2 >100

Financial result -66 -79 +17.0

EBT 475 351 +35.3

Taxes on income -132 -112 +18.2

Group resultbefore minorities

342 239 +43.3

Minority result 33 22 +52.1

Group resultafter minorities

309 217 +42.5

EPS in , basic 3.35 2.35 +42.6

Segment share in Group revenue

9M 2016 9M 2017

Segment share in Group EBITDA

9M 2016 9M 2017


Detailed Financials

Antalya Airport Recovery

Strong Recovery of International / Russian Traffic I German Traffic Down

# of departing international passengers

# of departing Russian passengers # of departing German passengers

0

200,000

400,000

600,000

800,000

Jan Feb Mar Apr May Jun Jul Aug Sep

2015

2016

2017

0

200,000

400,000

600,000

800,000


0

200,000

400,000

600,000


2015

2016

2017

0

500,000

1,000,000

1,500,000

2,000,000


# of departing domestic passengersYTD +65% YTD +3%

YTD >100% YTD -13%


Detailed Financials

Cash Flow & Net Debt

1 = Including 53.6 mil. prepayment to EPC company

2 = Capex in airport operating projects, other intangible assets, PPE, investment property, and

at equity investments. No consideration of one-time payments for acquisitions.

3 = Operating cash flow Capex + Dividends from at equity investments

4 = 2016 values as at Dec. 31, 2016

Strong increase in OCF mainly due to Greece

Free cash flow improvement despite lack of

19m AYT DVD

Greece & Brazil upfront payments reflected in higher

indebtedness and Gearing ratio

Group equity above 4.0 bn., +5%

Equity ratio at 35%; FY 2016: 41%

Comments mil. 9M 17 9M 16 %

Operating cash flow 687 501 +37.3

Capex 303 214 +41.4

Free cash flow 388 310 +25.1

Net debt4 3,557 2,356 +51.0

Equity4 4,032 3,841 +5.0

Gearing ratio4 92% 65% +27PP

Net debt

FY 2016

OCF

2,356 -687

+66

+1,234

+42

+1632,113

+242 3,557

Capex

T3

Greece

Capex1Capex

Lima

Other

Capex

Dividends

from

assiciated

companies

9M 2017

Net debt

before

acquisitions

Greece

upfront

payment

Brazil

initial

payments

Dividends

paid

Misc.: F/X,

consolidation,

financing &

other effects

Net debt

9M 2017

+34-6

+145

-32

Free Cash Flow: 388m

in mil.

Effects lowering

net debt

Effects increasing

net debt


Detailed Financials

Aviation Segment

EBITDA

9M 2016

Aviation

charges

Other

income

Staff

cost

Other

opex

EBITDA

9M 2017

192

+15

+4

201

+9-10

-11

-87

114

Security

servcies

Other

revenueD&A EBIT

9M 2017

+2

1.9% higher average airport charges as of Jan. 1,

2017

Traffic growth further increased airport charges,

dampened by incentive scheme

Revenue from security services up due to volumes

and new Berlin contract

~8m higher wages & ~3m higher cost for staff

restructuring provision

Comments P&L in mil. 9M 17 9M 16 %

Revenue 721 693 +4.0

- Airport charges 592 578 +2.6

- Security services 95 86 +10.5

- Other revenue 34 30 +12.9

EBITDA 201 192 +4.6

EBIT 114 99 +15.4

Employees 5,854 6,082 -3.7

in mil.

Due to commercial rounding slight discrepancies may occur when summing up, percent changes based on unrounded figures

Increasing

effects

Decreasing

effects


Detailed Financials

Retail & Real Estate Segment

EBITDA

9M 2016

Retail Other

income

Staff

cost

Other

opex

EBITDA

9M 2017

282+4

+4288+1

-2 -11-64

226

Real

Estate

Other

revenueD&A EBIT

9M 2017

-4

Parking

+14

in mil.

Retail revenue up due to higher passenger volumes

Average retail revenue per passenger down due to

F/X and high continental passenger growth

More parking revenue due to volumes & price

Higher other revenue due to land sales mainly in Q2

~3m higher opex from invest. that were not capitalized

Solid EBITDA & EBIT performance


Revenue 394 371 +6.3

- Retail 153 149 +2.8

- Real Estate 145 144 +0.9

- Parking 65 61 +6.7

- Other revenue 31 17 +78.7

EBITDA 288 282 +2.2

EBIT 226 219 +3.2

Employees 651 643 +1.2


Increasing

effects

Decreasing

effects


8 10 711

2

-7

0

-10

2

-10

2 3

-5

2 5

-3

-11-6 -6

13

Top 5 Volumes

Source: sales/revenue data of Gebr. Heinemann by destinations.

Left columns = % change in volumes vs. 9M 2016

Right columns = % change in spending per destination vs. 9M 2016

Top 5 Spenders

China Russia S.Korea Vietnam Japan

US Germany Turkey UAE India

Left columns = % change in volumes vs. 9M 2016

Right columns = % change in spending per destination vs. 9M 2016

Retail revenue per Passenger

Advertising

Q1 Q2 Q3 Q4

27.6 30.8 33.4 31.0

12.7 14.1 15.3 14.2

6.6 8.8 8.6 9.4

Q1 Q2 Q3

28.2 31.6 31.9

13.0 14.6 15.9

8.2 9.0 9.3

1.4 1.6 1.7

Services

Shopping

DTF-JV

3.62 3.423.17

3.87 3.76

3.283.02

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

9M 16: 3.38 9M 17: 3.31

3.86 3.38 3.11

9M 17: 3.41

Retail revenue streams

Detailed Financials

Frankfurt Retail Revenue per Passenger

Including

Heinemann JV


Detailed Financials

Ground Handling Segment


in mil.

Slight increase in revenue due to more passengers


restructuring provision & other one-off items

Slight improvement in non-staff costs

EBITDA & EBIT down


Revenue 483 478 +0.9

- Ground Handling 243 239 +1.7

- Infrastructure 230 229 +0.4

- Other revenue 10 10 -6.8

EBITDA 38 45 -15.1

EBIT 9 16 -45.2

Employees 8,536 8,654 -1.4

EBITDA

9M 2016

Infrastructure

charges

Other

income

Staff

cost

Other

opex

EBITDA

9M 2017

45+1 -1

38

+4 -13

+2 -29

9

GH

revenue

Other

revenueD&A EBIT

9M 2017

0

Increasing

effects

Decreasing

effects


Detailed Financials

External Activities & Services Segment


First-time revenue and earnings contribution from

Fraport Greece

Strong Lima performance, despite negative F/X effect

in Q3


restructuring provision & other one-off items in FRA

facility and IT management staff

EBITDA & EBIT significantly up

Comments

EBITDA in mil.

EBITDA

9M 2016

+106

158

+9+1

280

+1

+5

192

0

Greece Other EBITDA

9M 2017

Twin Star D&A EBIT

9M 2017

Lima Ljubljana USA

-88

P&L in mil. 9M 17 9M 16 %

Revenue 631 417 +51.2

- excl. IFRIC 12 608 402 +51.2

EBITDA 280 158 +77.8

EBIT 192 97 +97.9

Employees 5,618 5,088 +10.4

Increasing

effects

Decreasing

effects

Fraport AG

Thank you for your Attention!

www.meet-ir.com


Appendix

9M 2017 Frankfurt Passenger Split

Western Europe

43%

+5%D

Domestic

11%

+1%D

Eastern Europe

8%

+5%DNorth America13%

+3%DFar East

11%

+4%DMiddle East

6%

+3%DAfrica

4%

+17%DLatin America4%

0%D

Frankfurt Airport

Continental

62%

+5%D

Intercontinental

38%

+5%D

Average seat load factors

65

70

75

80

85


2017

2016

79.9%

76.9%


Appendix

Performance of External Investments

Figures refer to IFRS accounting, not local GAAP, percent changes based on unrounded figures

Fully consolidated

Group companies Share in % Revenue1 EBITDA EBIT Result

9M 2017 9M 2016 % 9M 2017 9M 2016 % 9M 2017 9M 2016 % 9M 2017 9M 2016 %

Fraport USA 100 48.9 46.6 +4.9 10.2 9.8 +4.1 -2.0 3.7 - 3.2 3.5 -8.6

Fraport Slovenija 100 31.4 27.0 +16.3 12.6 11.2 +12.5 5.3 3.5 +51.4 4.7 3.6 +30.6

Fraport Greece2 73.4 181.4 - - 106.2 - - 84.8 - - 29.0 - -

Lima 70.01 244.2 224.5 +8.8 91.3 82.4 +10.8 78.4 69.0 +13.6 47.8 39.5 +21.0

Twin Star 60 62.5 59.9 +4.3 40.2 39.5 +1.8 31.6 30.8 +2.6 25.0 23.9 +4.6

Group companies

accounted for using

the equity method Share in % Revenue1 EBITDA EBIT Result

9M 2017 9M 2016 % 9M 2017 9M 2016 % 9M 2017 9M 2016 % 9M 2017 9M 2016 %

Antalya3 51/50 215.7 141.9 +52.0 187.8 112.4 +67.1 106.2 30.9 >100 42.4 -17.6 -

Hanover 30 118.6 111.8 +6.1 26.0 22.7 +14.5 11.0 7.7 +42.9 7.0 4.7 +48.9

Pulkovo/Thalita 25 205.7 143.8 +43.0 123.5 81.1 +52.3 95.3 56.0 +70.2 -15.0 2.9 -

Xian4 24.5 173.4 155.6 +11.4 87.4 74.3 +17.6 50.1 36.1 +38.8 41.2 25.2 +63.5

mil.

1 Revenue adjusted by IFRIC 12: Lima 9M 2017: 230.6m (9M 2016: 209.4m), Q3 2017: 79.2m (Q3 2016: 75.6m); Fraport Greece 9M 2017: 172.0m, Q3 2017: 115.2m

2 Take-over of operations as of April 11, 2017

3 Share of voting rights: 51%, Dividend share: 50%.

4 Figures according to the separate financial statement.

Fraport AG

Appendix

Maturity Profile & Cash Position as at September 30, 2017


1,141

4,698

211

517

1,146

199439 422

65 99183

1,390

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

5,000

Liquidity Grossdebt

2017 2018 2019 2020 2021 2022 2023 2024 2025 2026++

Fraport debt conditions on average

~ 3.2% interest rate

mil.

Book values

Nominal values


Appendix

IR Contact

29

T: +49 69 690 - 74844

F: +49 69 690 - 74843

M: [email protected]

www.meet-ir.com

Postal

Fraport AG

Frankfurt Airport Services Worldwide

60547 Frankfurt am Main

Germany
mailto:[email protected]://www.meet-ir.com/

analyst presentation 9m 2017 - fraport.decontent.file/analyst-presentation-9m-2017.pdf · 4 analyst...

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