Fraport AG · XETR:FRA

Fraport — Q1 2003 Earnings Presentation

33 slides from Fraport's earnings presentation, May 15, 2003

  1. Slide 1: Fraport AG Frankfurt Airport Services Worldwide

    Fraport AG Frankfurt Airport Services Worldwide Presentation of Q1 2003 Results May 15, 2003

  2. Slide 2: Agenda

    Slide 2 Agenda – Latest Developments • Key Messages 3 • Manila 4 • Traffic 5 • Impact of SARS 8 • Outlook 12 – Financials • Highlights 13 • Profit & Loss Statement 14 • Segment Results 21 • Balance Sheet 27 • Cash-flow 28 • Subsidiaries 29 Q1 2003 Presentation, May 15, 2003

  3. Slide 3: Key Messages Q1 2003

    Slide 3 Key Messages Manila Traffic Impact of SARS Outlook Financials Key Messages Q1 2003 – Iraq impact less severe than expected. – Sound increase in revenues, EBITDA and net profit. – SARS had small impact in Q1 2003, but is now the biggest threat going forward. – The risks are balanced by tight

  4. Slide 4: Manila - Supreme Court Ruling

    Slide 4 Key Messages Manila Traffic Impact of SARS Outlook Financials Manila - Supreme Court Ruling – SC believes, that the financial resources of PIATCO were insufficient from the beginning. – If contracts are declared null and void finally, the Manila project must be wound up; of course we expect

  5. Slide 5: Traffic Figures 2003 at Frankfurt Airport

    Slide 5 Key Messages Manila Traffic Impact of SARS Outlook Financials Traffic Figures 2003 at Frankfurt Airport January February March April Passengers 2003 3.527.210 3.274.976 3.765.552 3.711.023 ? % 7.0 0.8 -5.3 -5.2 Air Freight (t) 2003 110.869 122.601 143.820 121.724 ? % 5.2 7.7 7.5 1.0 ATMs (1)

  6. Slide 6: Impact of 2003 Iraqi War on PAX Development

    Slide 6 Key Messages Manila Traffic Impact of SARS Outlook Financials Impact of 2003 Iraqi War on PAX Development: Less severe than in 1991 40% FRA monthly PAX development 30% Mar 19, 2003: recovery 20% Start of war on Iraq 10% 0% -10% unc ce iden 1991/1992 erta nf k co -20% a inty we 2002/2003 2002

  7. Slide 7: Recovery of Traffic to Middle East and North America

    Slide 7 Key Messages Manila Traffic Impact of SARS Outlook Financials Recovery of Traffic to Middle East and North America Q1 2003 Presentation, May 15, 2003

  8. Slide 8: SARS is biggest Threat now

    Slide 8 Key Messages Manila Traffic Impact of SARS Outlook Financials SARS is biggest Threat now Q1 2003 Presentation, May 15, 2003

  9. Slide 9: SARS: Traffic Exposure of Frankfurt

    Slide 9 Key Messages Manila Traffic Impact of SARS Outlook Financials SARS: Traffic Exposure of Frankfurt Passengers with final destination China, Hong Kong, Vietnam, Singapore,Taiwan, Thailand, Indonesia, Philippines and Canada Point-to-Point Traffic 3.8 mil. Transfer PAX Frankfurt 2.1 mil. Total 5

  10. Slide 10: SARS: Traffic Exposure to South-East Asia, Canada

    Slide 10 Key Messages Manila Traffic Impact of SARS Outlook Financials SARS: Traffic Exposure to South-East Asia, Canada Frankfurt Exposure to SARS-Regions & April Development 4% of total PAX Canada, 8% of mainly Toronto total PAX April 03: +8.4% China/Hongkong Singapore Taiwan Thailand Indonesia Ph

  11. Slide 11: Break-down of Countries with SARS-Threat: April 2003

    Slide 11 Key Messages Manila Traffic Impact of SARS Outlook Financials Break-down of Countries with SARS-Threat: April 2003 Countries Passengers Seat Load Factor China/ Hongkong - 50.1% 52.9% Singapore - 52.5% 61.7% Taiwan - 51.8% 66.9% Thailand - 14.8% 78.2% Indonesia - 31.1% - Philippines + 26.3%

  12. Slide 12: Outlook

    Slide 12 Key Messages Manila Traffic Impact of SARS Outlook Financials Outlook – High uncertainty because of weak economy, especially SARS – Fraport is prepared with WM 2005 and contingency plan in action – Traffic: 2003 PAX might not reach 2002 level in Frankfurt – We work hard to at least reach 20

  13. Slide 13: Financial Highlights

    Slide 13 Financial Highlights Profit & Loss Statement Segment Results Balance Sheet Cash flow Subsidiaries Financial Highlights – Revenues up by 6.9 % to EUR 429.4 mil. – Increase of EBITDA by 10.6 % up to EUR 110.8 mil. • increase in revenues and • higher income from investments – Profit from ordin

  14. Slide 14: Profit & Loss Statement

    Slide 14 Financial Highlights Profit & Loss Statement Segment Results Balance Sheet Cash flow Subsidiaries Profit & Loss Statement EUR mil. Q1 2002 Q1 2003 Growth Revenues 401.7 429.4 6.9% Total Revenues (1) 417.4 440.4 5.5% Staff costs 202.9 227.1 11.9% Non-staff costs 112.4 111.6 (0.7%) Results at

  15. Slide 15: Profit & Loss Statement

    Slide 15 Financial Highlights Profit & Loss Statement Segment Results Balance Sheet Cash flow Subsidiaries Profit & Loss Statement EUR mil. Q1 2002 Q1 2003 Growth EBITDA (1) 100.2 110.8 10.6% Depreciation & Amortization (2) 52.1 53.1 1.9% Write-down of 0.8 0 (100.0%) financial assets EBIT 47.3 57.7

  16. Slide 16: Revenue Increase

    Slide 16 Financial Highlights Profit & Loss Statement Segment Results Balance Sheet Cash flow Subsidiaries Revenue Increase Revenues and Total Revenues Rise in revenues primarily due to: EUR mil. 500 417.4 440.4 11.0 - Tariff increase of airport fees at 15.7 Frankfurt Airport 400 429.4 - Higher reve

  17. Slide 17: Staff Costs Increased

    Slide 17 Financial Highlights Profit & Loss Statement Segment Results Balance Sheet Cash flow Subsidiaries Staff Costs Increased Staff costs Rise in staff costs by 11.9 %: EUR mil. – Increase of personnel at 300 EUR 9.9K/ EUR 10.2K/ employee (1) ICTS Europe employee (1) 250 (+ 1,403 employees) – 2.4

  18. Slide 18: Flat Development of Non-Staff Costs

    Slide 18 Financial Highlights Profit & Loss Statement Segment Results Balance Sheet Cash flow Subsidiaries Flat Development of Non-Staff Costs Non-staff costs EUR mil. 150 Cost of materials up by 18.2 %: 112.4 111.6 – Higher utility expenses 100 55.1 65.1 – First-time full consolidation of DST Other

  19. Slide 19: Increase in EBITDA and EBIT

    Slide 19 Financial Highlights Profit & Loss Statement Segment Results Balance Sheet Cash flow Subsidiaries Increase in EBITDA and EBIT EBITDA EUR mil. EBIT EUR mil. Increase in EBITDA 150 80 and EBIT: 25.8 % 13.4 % 24.9 % EBITDA- EBIT-margin - Positive EBITDA- margin 120 margin 11.8 % development of

  20. Slide 20: Net Result and Earnings per Share up

    Slide 20 Financial Highlights Profit & Loss Statement Segment Results Balance Sheet Cash flow Subsidiaries Net Result and Earnings per Share up Net result EUR mil. Increase in Net result: 40 - Higher EBITDA EPS - Improved interest result 0.29 EUR 30 EPS 0.20 EUR 20 25.8 18.1 10 0 Q1 2002 Q1 2003 Q1

  21. Slide 21: Segment Overview – Business Activities and Revenues

    Slide 21 Financial Highlights Profit & Loss Statement Segment Results Balance Sheet Cash flow Subsidiaries Segment Overview – Business Activities and Revenues Aviation Non-Aviation Airside operations Retail Air travel specific Property development security services and management Terminal management

  22. Slide 22: Financials Aviation – Revenues for Security Services increased

    Slide 22 Financial Highlights Profit & Loss Statement Segment Results Balance Sheet Cash flow Subsidiaries Financials Aviation – Revenues for Security Services increased EUR mil. Q1 2002 Q1 2003 Growth Rise in revenues due to Revenues 180.5 196.7 9.0% – Tariff increase for Segment result (21.4) (12.

  23. Slide 23: Financials Non-Aviation - Contribution to Group EBITDA amounts to 87.9%

    Slide 23 Financial Highlights Profit & Loss Statement Segment Results Balance Sheet Cash flow Subsidiaries Financials Non-Aviation - Contribution to Group EBITDA amounts to 87.9% EUR mil. Q1 2002 Q1 2003 Growth Revenues 95.6 88.7 (7.2%) Segment result 76.0 64.9 (14.6%) EBITDA (1) 103.5 97.4 (5.9%) E

  24. Slide 24: New Reporting of Retail Revenues at Frankfurt Airport

    Slide 24 Financial Highlights Profit & Loss Statement Segment Results Balance Sheet Cash flow Subsidiaries New Reporting of Retail Revenues at Frankfurt Airport EUR mil. 30 25.1 EUR 2.38 18.6 per PAX 4.2 20 4.5 67.6 60.3 16.4 15.5 10 EUR 1.48 EUR 1.55 per PAX per PAX 0 Q1 2002 Q1 2003 Retail / Shopp

  25. Slide 25: Financials Ground Handling - Increase in Revenues at Frankfurt Airport

    Slide 25 Financial Highlights Profit & Loss Statement Segment Results Balance Sheet Cash flow Subsidiaries Financials Ground Handling - Increase in Revenues at Frankfurt Airport EUR mil. Q1 2002 Q1 2003 Growth Increase in revenues at Frankfurt Airport: Revenues 114.5 121.8 6.4% – Higher revenues fro

  26. Slide 26: Financials Others - Increase in Revenues mainly due to ICTS Europe

    Slide 26 Financial Highlights Profit & Loss Statement Segment Results Balance Sheet Cash flow Subsidiaries Financials Others - Increase in Revenues mainly due to ICTS Europe EUR mil. Q1 2002 Q1 2003 Growth Revenues 11.1 22.2 100.0% Segment result 1.8 4.8 166.7% EBITDA (1) 5.9 10.5 78.0% EBITDA margi

  27. Slide 27: Balance Sheet

    Slide 27 Financial Highlights Profit & Loss Statement Segment Results Balance Sheet Cash flow Subsidiaries Balance Sheet EUR mil. 31.12.02 31.3.03 Growth Fixed assets 2,698.6 2,682.3 (0.6%) Other assets 922.1 928.9 0.7% Total Assets 3,620.7 3,611.2 (0.3%) Equity 1,803.4 1,827.3 1.3% Debt (1) 909.7 1

  28. Slide 28: Net Cash Inflow up

    Slide 28 Financial Highlights Profit & Loss Statement Segment Results Balance Sheet Cash flow Subsidiaries Net Cash Inflow up Net cash inflow from operating activities EUR mil. Drawing of guarantee 80 liability to a bank consortium related to 60 68.3 the Manila project : 40 EUR 136.5 mil. 35.9 20 0

  29. Slide 29: Lima Airport

    Slide 29 Financial Highlights Profit & Loss Statement Segment Results Balance Sheet Cash flow Subsidiaries Lima Airport Q1 2002 Q1 2003 Growth PAX 1.0 mil. 1.0 mil. 1.0% – Successful operation of ATMs 16.6K 16.5K (0.7 %) the largest airport in Peru R e v e n u e s (1) 13.9 1 5 .7 1 2 .7 % in EUR mil

  30. Slide 30: Antalya Airport

    Slide 30 Financial Highlights Profit & Loss Statement Segment Results Balance Sheet Cash flow Subsidiaries Antalya Airport Q1 2002 Q1 2003 Growth – Q1 weak due PAX 0.7 mil. 0.7 mil. (1.4 %) ATMs 5.7K 5.7K 1.5 % to Iraq war Revenues 4.4 3.9 (11.1 %) in EUR mil. EBITDA 0.5 2.8 523.7 % – Traffic volume

  31. Slide 31: ICTS Europe

    Slide 31 Financial Highlights Profit & Loss Statement Segment Results Balance Sheet Cash flow Subsidiaries ICTS Europe Q1 2002 Q1 2003 Growth Revenues (1) – Significant increase in EUR mil. 36.8 46.5 26.4 % of revenues EBITDA (1) in EUR mil. 0.1 (2.4) – Decrease of EBITDA Note : (1) Figures for Q1 2

  32. Slide 32: Hahn Airport

    Slide 32 Financial Highlights Profit & Loss Statement Segment Results Balance Sheet Cash flow Subsidiaries Hahn Airport Q1 2002 Q1 2003 Growth 0.2 mil. 0.5 mil. 137.6 % Additional PAX Destinations ATMs 5.6K 6.7K 18.8 % from Hahn airport Revenues in EUR mil. 2.7 4.8 81.8 % – New Destinations EBITDA o

  33. Slide 33: Thank you for your attention!

    Thank you for your attention!

Fraport — Q1 2003 Earnings Presentation on 6ix