Fraport Ag · XETR:FRA
Fraport — 9M 2022 Earnings Presentation
37 slides from Fraport's earnings presentation, Nov 8, 2022
Slide 1: 3Q22 Analyst Presentation
Januar Analystbis September I2022 Presentation 8.11.2022 November 2022 3Q22 Fraport AG Bilanzpressekonferenz Dr. StefanSchulte, Dr. Stefan Schulte, CEO Vorstandsvorsitzender I Prof. Dr. Matthias Zieschang, CFO
Slide 2: Disclaimer
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, ac
Slide 3: 3Q22 At A Glance
3Q22 At A Glance Steep Traffic Ramp-Up and Financial Recovery! 1 Traffic 2 Financials 3 Other Frankfurt back at ~74% of 3Q 2019 EBITDA at ~96% of 3Q 2019 Level High Focus on FRA Hub Excellence, Traffic / YTD at~66% / 9M at ~87% a.o., Restoring Ground Quality & Security Transitioning Intl. with even
Slide 4: 3Q22 Financial Highlights
3Q22 Financial Highlights Significant Recovery Continues EUR mn Total Revenue1 EBITDA -5% -4% 2 [-7%] [-9%] 2 973 926 437 420 289 682 902 396 652 259 3Q19 3Q21 3Q22 3Q19 3Q21 3Q22 EPS Free Cash Flow -70% -10% 2,40 139 121 125 0,83 1,24 -39 3Q19 3Q21 3Q22 3Q19 3Q21 3Q22 1 Adjusted for IFRIC 12 4 Anal
Slide 5: Sharp Rebound in International Activities
3Q22 Financial Highlights Sharp Rebound in International Activities 93% of ▪ High Share of Leisure and Short-haul Traffic 3Q19 PAX Fuels Up Traffic Recovery ▪ Fraport Greece tops 2019 Passenger Traffic with strong 3Q22 Outperformance 130% of ▪ LATAM with sound overall Recovery 3Q19 EBITDA ▪ Favorabl
Slide 6: Business Update: International Portfolio
Business Update Developments in International Portfolio ▪ Fraport Greece achieved further Economic Rebalance for COVID-related Impacts in 1H21 ▪ Fraport Brasil also applied for Economic Rebalance for adverse COVID-related 22FY impacts ▪ Fraport Brasil applied for Porto Alegre fixed Concession Prepay
Slide 7: Lima Airport Terminal EPC Extended
Business Update Lima Airport Terminal EPC Extended ▪ Due to strong rebound of passenger traffic and implementation of single-terminal concept Lima Airport Partners is finalizing the amendment of the EPC contract to further expand the new terminal ▪ The new terminal facilities will be sufficient to a
Slide 8: Business Update: Passenger Performance
Business Update Preliminary OCT Traffic FRA OCT: 76.6% of 2019 Sequential 3Q22 Improvement FRA YTD: 67.4% 9M Passenger Performances 3Q Passenger Performances Sequential 3Q Improvement 66% 52% 79% 76% 103% 59% 85% % of 2019 74% 62% 83% 82% 109% 60% 92% 54,2 9M19 9M20 9M21 9M22 3Q19 3Q20 3Q21 3Q22 35,
Slide 9: Frankfurt Staff Development
Business Update Frankfurt Staff Development Like-for-Like Staff Reduction: 1 Ground Handling Other FRA Positions FraSec 4,200 as of September 30, 2022 vs. YE’19 Number of Employees (as per Reporting Date) 20,468 20,792 2 LFL: 2 - LFL Staff Number slightly down vs. YE’21 4.277 4.308 16,592 16,444 - N
Slide 10: Frankfurt Hub Excellence & Security Transitioning
Business Update Frankfurt Hub Excellence & Security Transitioning Takeover of Security Responsibilities in 2023 ▪ Fraport to enhance Security Product jointly with Federal Police ▪ Fraport, a.o., to tender Frankfurt Security Lots and to procure Security Equipment Services Processes Hub Gradual roll-o
Slide 11: Frankfurt Winter Flight Schedule 22/23
Business Update Frankfurt Winter Flight Schedule 22/23 ▪ Planned Seat Capacities at c.90% of 2019 ▪ Planned Seat Capacities to North America be on 2019 Level ▪ EU ex. Germany at c.90% of 2019 ▪ Far East Recovering but lacking broader Market at c.75% of 2019 ▪ Total Movements at c.95% of 2019 Winter
Slide 12: New Frankfurt PV Plant Decided
Business Update New Frankfurt PV Plant Decided ▪ New PV Plant to be constructed next to Take-off RWY West ▪ Test run currently underway ▪ Final Stage planned at approx. 2,600m of length and c.100m of width for 1H24 ▪ Max. Electricity Production of 13 MW Frankfurt on Track to Reduce its CO2 Emissions
Slide 13: 22FY Outlook
22FY Outlook Unchanged Outlook to 1H22 – Upper End Targeted! 19FY Results 21FY Results Previous 22FY Outlook Outlook presented with 1H22 Passengers 24.8 mn Between ~55% and Between ~45 and 50mn Pax 70.6 mn FRA (35% of 2019) ~65% of 2019 = ~63% to ~71% Revenue €3.71 bn €2.14 bn €~3 bn Slightly above
Slide 14: 3Q22
Analyst Presentation I November 2022 3Q22 Dr. Stefan Schulte, CEO I Prof. Dr. Matthias Zieschang, CFO
Slide 15: Group Financial Performance
Group Financial Performance On our way to former strength EUR mn EBITDA 1.129 1.180 1.003 757 829 -251 2017 2018 2019 2020 2021 9M2022 9M2022 EBT 670 590 506 116 178 -933 2017 2018 2019 2020 2021 9M2022 9M2022 2 15 Analyst Presentation I November 2022
Slide 16: Aviation
Aviation Q3 Revenues recover to c.85% of Pre-Covid Level EUR mn 9M22 9M21 9M19 3Q22 3Q21 3Q19 ▪ 9M22 Airport charges achieve c.75% of 2019 at c.66% pax level Revenue 612 423 783 244 169 288 Charges 453 240 623 185 122 234 ▪ “Recovery” Incentives to Airlines of EUR c.23mn YTD Security 132 159 122 48
Slide 17: Retail & Real Estate
Retail & Real Estate Highly-profitable business drives Frankfurt EBITDA EUR mn 9M22 9M21 9M19 3Q22 3Q21 3Q19 ▪ Real Estate Business outperforms pre-COVID Level Revenue 314 232 372 122 93 131 Retail 101 52 162 43 27 58 ▪ Parking recovers to 85% of 3Q19 Real Estate 138 127 127 49 44 44 ▪ After negativ
Slide 18: Ground Handling
Ground Handling Cost to cope with Summer Season weigh on Financials ▪ Revenue Recovery in 3Q22 to c.80% of EUR mn 9M22 9M21 9M19 3Q22 3Q21 3Q19 2019 level, among others due to Revenue 406 270 537 153 118 192 maximum-take off weight- and G. Handling 215 157 274 78 67 99 movement-related charges Centr
Slide 19: Frankfurt Opex
Frankfurt Opex Opex Reduction despite Energy Prices, Inflation and GH Ramp Up EUR mn Total Opex ▪ Total Opex reduced by EUR 157mn vs. 9M19 EUR -157mn 1 ▪ Staff Cost reduced by EUR c.129mn vs. 9M19, mainly due to [9M LFL] Restructuring Program 382 394 393 409 ▪ As of September 30, 2022 c.4,200 Employ
Slide 20: International Activities & Services
International Activities & Services Strong EBITDA Contribution from International Portfolio EUR mn 9M22 EBITDA 3Q22 EBITDA 300 253 250 200 179 150 100 74 72 50 29 31 37 13 14 21 17 6 4 5 0 Lima Brasil Greece 1 USA Twin Star Slovenija Other 2 9M Segment EBITDA of EUR 494mn = ~60% of Group3 1 Fraport
Slide 21: International Activities & Services
International Activities & Services Full Financial Recovery thanks to Increased Profitability ▪ Excl. IFRIC 12: Revenue growth compared to EUR mn 9M22 9M21 9M19 3Q22 3Q21 3Q19 9M19, 3Q22 figure even at 112% Revenue 1,036 577 1,160 501 311 458 ▪ 3Q22 Other Income reflects EUR c.24mn IFRIC 12 230 145
Slide 22: 9M22 Cash Flow
9M22 Cash Flow Strong OCF Development and Capex Control EUR mn -25 -375 7,004 -14 -32 -37 +16 -178 6,370 +628 -344 -261 -7 -5 Free Cash Flow 9M22: € -609mn (excl. AYT new: € -234mn) OCF Brazil Greece Lima FRA Other Fixed IAS 23 IFRS Divs from Equity Other Net debt Net debt YE 2021 capex capex capex
Slide 23: 3Q22 Cash Flow
3Q22 Cash Flow Free Cash Flow clearly positive at EUR 125mn EUR mn Op. Cash Flow 443 OCF outperforms 3Q19 by 4% Brazil Capex 3 Brazil & Greece running on Inflows Maintenance Level Greece Capex 1 Outflows Well in line with EUR c.250mn Other Capex 61 FRA & Other Guidance Fixed Conc. Payments, Positive
Slide 24: Cash Management
Cash Management Comfortable EUR 4.5bn Bolster Cash & Financial Assets (Liquidity) Committed Credit Lines & Finance EUR mn 5.500 EUR +2,816mn 5.000 4,448 4,506 4,523 4.500 4,288 4.000 3.500 3,110 3.784 3.467 3.564 3.486 3.000 2.500 2,149 2.000 1,707 2.214 1.500 1.569 1.000 1.156 500 Dec. 31, 2019 Com
Slide 25: Available Funds & Repayment Profile
Cash Management Available Funds & Repayment Profile 11.000 in € mil. 10.788 10.000 €~8.9 bn Fraport AG debt 9.000 8.000 €~1.1 bn Greece debt Average debt condition 7.000 ~ 2.2 % interest rate € 367 mn Brazil debt 6.000 5.000 € 326 mn Lima debt 4,5231 4.000 3.784 3.000 3,784 2.000 10 14 16 11 13 17 9
Slide 26: Appendix
Analyst Presentation I November 2022 Appendix Prof. Dr. Matthias Zieschang, CFO
Slide 27: Group P+L
Appendix Group P+L € million 9M 2022 9M 2021 Q3 2022 Q3 2021 Revenue 2.367,8 1.501,4 1.019,3 690,5 Other internal work capitalized 29,2 28,3 9,3 9,2 Other operating income 98,8 315,1 27,3 39,1 Total revenue 2.495,8 1.844,8 1.055,9 738,8 Cost of materials –777,1 –491,0 –322,4 –193,0 Personnel expense
Slide 28: Cash Flow
Appendix Cash Flow € million 9M 2022 9M 2021 Q3 2022 Q3 2021 € million 9M 2022 9M 2021 Q3 2022 Q3 2021 Result attributable to shareholders of Fraport Cash flow from operating activities 628,4 218,9 443,1 413,5 AG 65,8 97,0 114,7 76,6 Result attributable to non-controlling interests 32,3 21,0 36,5 26
Slide 29: Financial Position
Appendix Financial Position Assets Liabilities and equity September 30, December 31, September 30, December € million 2022 2021 € million 2022 31, 2021 Non-current assets Shareholders’ equity Goodwill 19,3 19,3 Issued capital 923,9 923,9 Investments in airport operating projects 3.836,1 3.416,4 Capi
Slide 30: International Holdings
Appendix International Holdings Fully consolidated Group companies € million Share in % Revenue1) EBITDA EBIT Result 9M 2022 9M 2021 Δ% 9M 2022 9M 2021 Δ% 9M 2022 9M 2021 Δ% 9M 2022 9M 2021 Δ% Fraport USA 100 75.8 44.7 +69.6 36.8 26.6 +38.3 0.8 0.0 – –3.0 –5.6 – Fraport Slovenija 100 25.5 14.9 +71.1
Slide 31: P&L of fully consolidated Airport Investments
Appendix P&L of fully consolidated Airport Investments Greece € mil. 9M22 9M19 FY19 Brasil € mil. 9M22 9M19 FY19 Ljubljana € mil. 9M22 9M19 FY19 Revenue 367 383 463 Revenue 61 228 283 Revenue 26 37 45 Revenue w/o IFRIC 12 361 247 297 Revenue w/o IFRIC 12 58 67 93 Revenue w/o IFRIC 12 26 37 45 Total
Slide 32: Overview of Major Special Effects 2021/2022
Appendix Overview of Major Special Effects 2021/2022 2022: 2021: International Activities / Xi‘An Aviation 2Q 22 EUR +53.7mn Other Income: Gain on Asset Disposal 1Q 21 EUR + 57.8mn Revenue: Settlement Security Dispute 2Q 21 EUR +159.8mn Other Income: State Compensation for Parts of Operating Interna
Slide 33: 22FY Capex, Cash Flow & Net Debt
Appendix 22FY Capex, Cash Flow & Net Debt Frankfurt T3 Capex: €~550mn 2022 FCF & Net Debt Bridge: Other Capex: EUR c.1.2 bn Capex €~250mn + EUR c.50mn Fixed Concession Payments & FCF: Borrowing Cost negative + EUR c.200mn Interest and Tax Payments Lima + EUR min. 300mn AYT Initial Equity less Divs C
Slide 34: Review Frankfurt Summer Operations
Appendix Review Frankfurt Summer Operations Pax Number Tripled Strike related High Peak Load between Jan – Jun Cancellations ATC Shortages, as well as, Rapid Ramp-Up Traffic Rebound and post Omicron-related other In- & Outbound Rising Cost of Living Traffic Cuts Delays Increased Peak Increased Strik
Slide 35: Unchanged Medium-Term Outlook
Appendix Unchanged Medium-Term Outlook Traffic Recovery to 2019 EBITDA Recovery to 2019 Frankfurt Expected ~2025/26 ~2023/24 International Airports Expected on average 2023 ~2023 Thanks to Traffic Recovery and Countermeasures, pre-COVID EBITDA expected by 2023/24 – at improved Margin!1 1 Based on li
Slide 36: Dates
Appendix Dates 2022 Financial Calendar Mar 15, 2022 May 10, 2022 May 24, 2022 Aug 9, 2022 Nov 8, 2022 FY 3M AGM 6M 9M 2020 Traffic Calendar 2022 Apr12, Apr 13,2019 2022 May 12, 2022 Jun 14, 2022 Jul 13, 2022 Aug 11, 2022 3M 4M 5M 6M 7M Sep 13, 2022 Oct 14, 2022 Nov 11, 2022 Dec 13, 2022 Jan 16, 2023
Slide 37: Thank you for your Attention!
Thank you for your Attention! IR Contact Postal T: +49 69 690 - 74840 Fraport AG F: +49 69 690 - 74843 Frankfurt Airport Services Worldwide M: investor.relations@fraport.de 60547 Frankfurt am Main www.meet-ir.com Germany 37 Analyst Presentation I November 2022