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FLUGHAFEN WIEN AG Traffic Results for 2013 and Outlook for the Company in 2014

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Page 1: FLUGHAFEN WIEN AG

FLUGHAFEN WIEN AGTraffic Results for 2013 andOutlook for the Company in 2014

Page 2: FLUGHAFEN WIEN AG

Difficult international environment

✈Difficult operating environment for the European aviation industry – higher costs and competitive pressure on the airlines and airports

✈Challenging economic situation, high fuel costs

✈Network carriers under pressure due to strong competition from the Gulf States and steady growth by the low-cost carriers

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2013: Influenced by challenges

Page 3: FLUGHAFEN WIEN AG

2013: Influenced by challenges

Traffic development at Vienna Airport in 2013 negatively influenced by special factors

✈Numerous flight cancellations throughout Europe due to the severe winter with heavy snowfall as well as strikes in Germany

✈Capacity reduction by the airlines & cabin renovation for Austrian‘s long-haul fleet

✈Turbulence in North Africa and the Middle East

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Page 4: FLUGHAFEN WIEN AG

Traffic development at Vienna Airport in 2013

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Development of passenger traffic in investments: Malta: +10.5%, Friedrichshafen: -1.7%, Kosice: +0.6%

Ø Passenger traffic at EU airports acc. to ACI : +0.8 % (Jan.-Nov. 2013)

2013 2012 ∆ in %Passengers (in mill.) 22.00 22.17 -0.7

Local passengers (in mill.) 15.18 15.08 +0.7Transfer passengers (in mill.) 6.79 7.05 -3.7

Flight movements (in 1,000) 231.18 244.65 -5.5MTOW (in mill. tonnes) 7.91 8.13 -2.6Seat occupancy (in per cent) 74.8 73.0 +1.9%pCargo incl. trucking (in 1,000 tonnes) 256.19 252.28 +1.6

Page 5: FLUGHAFEN WIEN AG

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2012 20122013 2013

1st half-year 2nd half-year

131,061

Clear trend reversal in cargo area (in tonnes)

2013 versus 2012 +10% in 2nd half-year

122,872 121,216133,322

Page 6: FLUGHAFEN WIEN AG

-1.7% -1.8%

-0.1%

+0.5%

-2.0

-1.5

-1.0

-0.5

0.0

0.5

1.0

2013 versus 2012

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1st Quarter 2nd Quarter 3rd Quarter 4th Quarter

Positiver trend in PAX development

Page 7: FLUGHAFEN WIEN AG

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Increase in aircraft size and occupancy

2009 2010 2011 2012 2013

111

76

97

130

68.7%

74.8%

Page 8: FLUGHAFEN WIEN AG

71 airlines with 177 destinationsin 69 countries

Values 2013 / change vs. 2012

8

-0.2%

88.3%

Europe

+0.6%

68.6%

thereofWest E.

Change in passenger traffic vs. prior year

Share of passengers

South America

+36.7%

0.1%Growth to Varadero

Middle East

-3.5%

4.8%

Decline to TeheranDecline to Dubai due to Austrian fleetrefitting

Far EastDecline in movements to Chelyabinsk, MumbaiPax decline to Delhi, Mumbai, Tokyo

-5.6%

3.3%

North America

Strong growth due to Chicago connection

+10.0%

2.1%

Africa

Declines due to crisis in Egypt-17.1%

1.4%

thereof East E.

Network reductions in flights to Sofia, Bucharest, Timisoara, Belgrad Growth to Moscow and St. Petersburg19.7%

-2.7%

Page 9: FLUGHAFEN WIEN AG

1) Including Brussels Airlines, SunExpress, British Midland (up to 2012) and Air Dolomiti

Share of passengers by airline

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2013 2012 ∆ in %Share in % Share in % PAX ∆ in %

Austrian Airlines Group 49.1 49.5 -1.6

Lufthansa 5.5 5.5 -0.2

Germanwings 2.7 2.2 +19.8

Swiss Intl. 1.7 1.5 +7.6

LH Group total 1) 60.5 60.8 -1.1

NIKI 11.0 12.0 -9.5

airberlin 6.1 6.3 -2.9

HG/AB Group total 17.1 18.3 -7.2

Turkish Airlines 2.3 1.7 +35.1

British Airways 1.8 1.7 +6.9

Emirates 1.6 1.5 +5.1

KLM Royal Dutch Airlines 1.3 1.2 +10.1

Other 15.4 14.9 +2.6

Page 10: FLUGHAFEN WIEN AG

TRAFFIC FORECAST FOR 2014

Page 11: FLUGHAFEN WIEN AG

Positive outlook

✈ Austrian Airlines: Start of flights to Newark, resumption of flights to Teheran, increase in flights to Chicago, Frankfurt, London

✈ NIKI: Start of flights to Madrid, Malta, Larnaca, increase in flights to Rome and destinations in Greece

✈ Furthermore: New: Manchester (Jet2.com), Algiers (Air Algérie) Increase: Lisbon (TAP), London (British Airways), China Southern

Cargo, Korean Air nonstop to Seoul and many more

✈ Introduced in Q4/2013: New: Milan LIN (Alitalia), Bremen (Germania), Mombasa (Condor)

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Page 12: FLUGHAFEN WIEN AG

2013 Forecast 2014

Passengers 22 mill. +1% to +3%

Flight movements 231,000 -1% to + 1%

Positive traffic forecasts for 2014

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Page 13: FLUGHAFEN WIEN AG

DEVELOPMENT OF BUSINESS IN 2013 AND FINANCIAL GUIDANCE FOR 2014

Page 14: FLUGHAFEN WIEN AG

Significant progress in all areas of the company during 2013✈Despite slight decline in passenger traffic, significant improvement

in the company‘s economic position – clear increase in productivity, sustainable reduction in operating, financing and personnel costs

✈Costs for Check-in 3 approx. € 100 million lower than budgeted –instead of € 830 million, now approx. € 725 million – which allowed for a further reduction in debt

✈Another major factor for the cost reduction is the steady pursuit of claims for damages: arbitration court awards FWAG € 16.7 million; in total, over € 30 million received as compensation for damages

✈After “digesting” the costs for Check-in 3, the focus will return to growth and the improvement of earnings

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Page 15: FLUGHAFEN WIEN AG

Approx. € 110 million of investments planned for 2014 – Vienna Airport on the way to Airport City✈Increased focus on location marketing and real estate strategy

in 2014 – addition of new services

✈Expansion of hotel offering: nearly 60 firms interested in tender for new hotel – decision in next quarter

✈Expansion of conference offering planned. Next step: renovation/expansion of office portfolio to meet market needs

✈Completion of renovation on forwarding agent building and construction of new cargo positions – improvement in cargo offering

✈Construction of new maintenance hangar (>500 m²)

✈Completion of new Austrian Railways long-distance rail station

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Page 16: FLUGHAFEN WIEN AG

Share price development since 1.1.2012 –investors‘ confidence returns – VIE as best performer in peer comparison

90

100

110

120

130

140

150

160

170

180

190

200

210

220

FWAG FRAPORT AEROPORT DE PARIS FLUGHAFEN ZÜRICH

+109%

+58%+64%

+47%

Inde

xed

to10

0

Share price development from 1.1.2012 to 17.1.2014

Page 17: FLUGHAFEN WIEN AG

Outlook on 2014

Revenue > € 630 million

EBITDA > € 240 million

Net profit > € 75 million

Net debt < € 600 million

CAPEX Approx. € 110 million

Optimistic outlook on 2014

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Page 18: FLUGHAFEN WIEN AG

THANK YOU FOR YOUR ATTENTION

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