Fraport AG · XETR:FRA
Fraport — H1 2002 Earnings Presentation
36 slides from Fraport's earnings presentation, Aug 22, 2002
Slide 1: Fraport AG Frankfurt Airport Services Worldwide
Fraport AG Frankfurt Airport Services Worldwide Frankfurt, August 22, 2002 Presentation to Analysts Interim Results 1st Half 2002
Slide 2: Disclaimer
Presentation to Analysts - 1st Half 2002, 22.08.2002 Disclaimer This document has been prepared by Fraport AG Frankfurt Airport Services Worldwide. As far as this document contains forward-looking statements instead of historical statements and discussions, these forward-looking statements rely on a
Slide 3: 1st Half 2002 at a Glance
Presentation to Analysts - 1st Half 2002, 22.08.2002 1st Half 2002 at a Glance • Revenues and results up • Positive signals for Manila project • WM 2005 efficiency program • Weak economy • Traffic decrease • Expansion programme on track • High Speed Train 3
Slide 4: Manila
Core Business Consolidation Presentation to Analysts - 1st Half 2002, 22.08.2002 Manila • Total exposure of US$ 378.9m almost unchanged • Construction on schedule Key financial issues • Possible delay in operational start-up August 1, 2002 • Ongoing negotiations with Equity / US$ 105.4m Philippine g
Slide 5: WM 2005 - Creating Value for Tomorrow!
Core Business Consolidation Presentation to Analysts - 1st Half 2002, 22.08.2002 WM 2005 - Creating Value for Tomorrow! EBITDA improvement in M Euro 160 150 Facts: 140 130 • Task force of more than 100 120 employees 110 100 90 • 21 efficiency programs targeting 80 all business units 150 70 60 • Over
Slide 6: Traffic Figures at Frankfurt Airport
Core Business Consolidation Presentation to Analysts - 1st Half 2002, 22.08.2002 Traffic Figures at Frankfurt Airport 1.HY 1.HY 1. HY ∆% 1. HY 2000 2001 2002 2002/2001 PAX (m) 23.3 24.0 22.9 (4.3%) Air Freight (t 000) 748.9 744.5 723.6 (2.8%) Mail (t 000) 67.5 69.2 68.9 (0.4%) ATMs (000) 224 226 223
Slide 7: Fraport Expects slightly decreased PAX Figures for Full 2002
Core Business Consolidation Presentation to Analysts - 1st Half 2002, 22.08.2002 Fraport Expects slightly decreased PAX Figures for Full 2002 % PAX growth compared to same month of last year 10,0% 5,0% 0,0% -5,0% -10,0% Apr May Jun Jul Aug Jan Feb Mar Apr May Jun 01 01 01 01 01 02 02 02 02 02 02 -15
Slide 8: Boeing 20-Year Outlook for Traffic Growth
Core Business Consolidation Presentation to Analysts - 1st Half 2002, 22.08.2002 Boeing 20-Year Outlook for Traffic Growth Boeing estimates world traffic to grow 4.9% over the next 20 years RPKs* in billions 2002-2021 Between Europe and... 2001 2011 2021 %/year Africa 96.23 159.55 245.35 4.8 Central
Slide 9: Leading European Hub Airport
Core Business Consolidation Presentation to Analysts - 1st Half 2002, 22.08.2002 Leading European Hub Airport 2001 Transfer Passengers as a Proportion of Total % at Major European Hub Airports 60 50 40 30 20 51% 41% 10 33% 32% 0 Frankfurt Schiphol Paris - CDG Heathrow Source: Fraport AG; company inf
Slide 10: ICE Frankfurt-Cologne
Core Business Consolidation Presentation to Analysts - 1st Half 2002, 22.08.2002 ICE Frankfurt-Cologne • High-speed railway track inaugurated in August 2002 • 8 trains per day, from December 2002 on hourly • Reduces Travel Time by 1 hour between FRA and Rhine-Ruhr area • FRA-Cologne from 2:03h to 1:
Slide 11: Punctual Hub Services
Core Business Consolidation Presentation to Analysts - 1st Half 2002, 22.08.2002 Punctual Hub Services the most punctual major hub in Europe 100% 1. Quarter 2002 % of Punctual Flights 2. Quarter 2002 90% 86,6 80% 82,1 83,4 78,8 78,0 70% 74,1 74,7 75,6 76,2 71,5 60% 50% 40% 30% 20% 10% 0% Frankfurt L
Slide 12: Lufthansa's Performance Based on Fraport's Ground Handling
Core Business Consolidation Presentation to Analysts - 1st Half 2002, 22.08.2002 Lufthansa´s Performance Based on Fraport´s Ground Handling • Lufthansa is the most punctual hub carrier • Improved punctuality from 70% to over 85% since 1999 • LH ascribes punctuality to ground handling processes • 99%
Slide 13: Ground Handling Processes / Allegro
Core Business Consolidation Presentation to Analysts - 1st Half 2002, 22.08.2002 Ground Handling Processes / Allegro Disembarking* Passenger Buses = Fraport Catering = Lufthansa = Other Cleaning Refuel Crew Preparation Gate Boarding Passenger Buses Loading / Unloading Supply Acceptance* Withdrawal P
Slide 14: Retail Income Increased Despite Passenger Decrease
Core Business Growth Presentation to Analysts - 1st Half 2002, 22.08.2002 Retail Income Increased Despite Passenger Decrease • Fraports retail income per passenger increased by 17.2 % from € 1,22 to € 1,43. • 13,951 sqm of retail space (FRA) at the end of June 2002. • Online Shopping: Preorders from
Slide 15: Capacity Expansion Process on Time
Core Business Growth Presentation to Analysts - 1st Half 2002, 22.08.2002 Capacity Expansion Process on Time Planning Approval Construction Operation ü 1997: Start of üOfficial start • 2004: • 2006: New runway discussions of regional Completion of goes into ü 1998-2000: planning proce- approval proc
Slide 16: Substantial PAX Increase at Airport Frankfurt-Hahn
Business Expansion Presentation to Analysts - 1st Half 2002, 22.08.2002 Substantial PAX Increase at Airport Frankfurt-Hahn Ryanair Monthly PAX at Airport Frankfurt-Hahn since HHN – Frankfurt-Hahn Destinations HHN 2001 BGY – Milan Bergamo BGO – Bournemouth 160.000 MLP – Montpellier 140.000 PGF – Perp
Slide 17: Frankfurt-Hahn Airport expects to be among the top ten German Airports in 2003
Business Expansion Presentation to Analysts - 1st Half 2002, 22.08.2002 Frankfurt-Hahn Airport expects to be among the top ten German Airports in 2003 % 1. HY 2002/2001 -4,3 Frankfurt -7,6 Munich -9,9 Düsseldorf -9,7 Berlin* -10,7 Hamburg -11,9 Stuttgart -15,4 Köln/Bonn -12,4 Hanover -3,3 Nürnberg -
Slide 18: Ongoing Segmentation of Airline Customers
Business Expansion Presentation to Analysts - 1st Half 2002, 22.08.2002 Ongoing Segmentation of Airline Customers Price Sensitive Quality Sensitive Private Passengers Business Business Passengers Passengers Short Network Carrier: Low Cost Airlines Distance Regional Airlines Charter Network Carrier:
Slide 19: Frankfurt-Hahn: high purchase power passengers
Business Expansion Presentation to Analysts - 1st Half 2002, 22.08.2002 Frankfurt-Hahn: high purchase power passengers Nationality: 1. Germany 86.7 % Distance Frankfurt-Hahn-Home 2. U.K. 2.9 % 40% 35% 3. Luxemburg 2.9 % % of Passengers 30% 25% 20% Age: 25-44 years 58.5 % 15% 10% 5% 0% <50 km 51-100k
Slide 20: Profit & Loss Statement
Presentation to Analysts - 1st Half 2002, 22.08.2002 Profit & Loss Statement st st 1 half 1 half €m Growth 2001 2002 Revenues 756.9 855.2 13.0 % Total Revenues (1) 805.0 915.5 13.7 % Staff costs 346.7 428.6 23.6 % Cost of materials 130.0 128.4 (1.2 %) Other operating expenses 124.8 118.3 (5.2 %) EBI
Slide 21: Significant Revenue Growth
Presentation to Analysts - 1st Half 2002, 22.08.2002 Significant Revenue Growth Revenues and Total Revenues (€ m) • Rise in total revenues largely due to 1.000 + 13.7 % 915.5 60.3 • first-time full 805.0 800 consolidation of 48.1 ICTS Europe 600 • increase in military 855.2 aircraft movements 756.9
Slide 22: Increase in Staff Costs mainly due to integration of ICTS Europe
Presentation to Analysts - 1st Half 2002, 22.08.2002 Increase in Staff Costs mainly due to integration of ICTS Europe Staff Costs (€ m) • 23.6 % increase in staff costs 500 • integration of ICTS Europe + 23.6 % 428.6 • one-off items 400 (early retirement scheme, 346.7 employee incentive program) 300
Slide 23: Decrease in Non-Staff Costs
Presentation to Analysts - 1st Half 2002, 22.08.2002 Decrease in Non-Staff Costs Non-Staff Costs (€ m) 300 - 3.2 % 254.8 246.7 • Decrease in non-staff costs despite first-time full 124.8 118.3 consolidation of ICTS Europe 200 • Lower currency losses due to development of US-Dollar 100 130.0 128.4 0
Slide 24: Increase in EBITDA by 14.3 %
Presentation to Analysts - 1st Half 2002, 22.08.2002 Increase in EBITDA by 14.3 % EBITDA €m in % 27.1 27.4 • Increase in EBITDA 250 + 14.3 % 234.0 • positive development 20 200 204.8 of revenues 150 • decrease in non-staff costs 100 10 • EBITDA margin slightly up 50 0 0 1st half 2001 1st half 2002 E
Slide 25: Increase in EBIT, EBIT margin and Net Income
Presentation to Analysts - 1st Half 2002, 22.08.2002 Increase in EBIT, EBIT margin and Net Income €m EBIT in % Net Income and EPS EBITDA (€ m) 15.0 EBIT (€ m) €m €0.59 13.7 € 0.58 140 EPS EPS 60 120 + 24.1 % 533.5 12 50 + 37.1 % 53.6 100 507.2 80 128.6 8 40 39.1 60 103.6 30 40 4 20 20 10 0 0 1st hal
Slide 26: Segment Overview Business Activities and Revenues
Presentation to Analysts - 1st Half 2002, 22.08.2002 Segment Overview Business Activities and Revenues Aviation Non-Aviation Airside Operations Retail Airport Security Property Air Security Car Parking Management Terminal Management 46 % 24 % 2% 28 % Ground Handling Others Ramp Services Energy Passe
Slide 27: Financials Aviation
Presentation to Analysts - 1st Half 2002, 22.08.2002 Financials Aviation 1st half 1st half €m Growth 2001 2002 External Revenues 311.2 423.2 36.0 % • Significant revenue growth influenced by Total Revenues (1) 322.9 441.4 36.7 % • first-time full consolidation of ICTS EBITDA (2) 16.2 22.5 38.9 % Eur
Slide 28: Financials Ground Handling
Presentation to Analysts - 1st Half 2002, 22.08.2002 Financials Ground Handling 1st half 1st half €m Growth 2001 2002 • Decrease in revenues External Revenues 269.9 253.7 (6.0 %) mainly due to Total Revenues (1) 292.0 277.6 (4.9 %) • lower air traffic in Frankfurt EBITDA (2) 2.2 (1.9) (186.4 %) • sl
Slide 29: Financials Non-Aviation
Presentation to Analysts - 1st Half 2002, 22.08.2002 Financials Non-Aviation 1st half 1st half €m Growth 2001 2002 External Revenues 201.0 215.6 7.3 % • Strong increase in revenues Total Revenues (1) 396.1 423.1 6.8 % • higher concessionary and rental revenues EBITDA (2) 174.9 199.0 13.8 % at Frankf
Slide 30: Financials Others
Presentation to Analysts - 1st Half 2002, 22.08.2002 Financials Others 1st half 1st half €m Growth 2001 2002 External Revenues 22.9 23.0 0.4 % • Constant development of revenues Total Revenues (1) 86.2 103.1 19.6 % EBITDA (2) 11.5 14.4 25.2 % • Increase in EBITDA EBITDA margin (3) 13.3 % 14.0 % EBIT
Slide 31: Balance Sheet
Presentation to Analysts - 1st Half 2002, 22.08.2002 Balance Sheet (€ m) At Dec 31, At June 30, Growth 2001 2002 Fixed assets 3,222.8 3,240.0 0.5 % Current assets 407.7 547.9 34.4 % Total Assets 3,672.0 3,828.8 4.3 % Equity 1,964.3 1,983.0 1.0 % Debt (1) 970.1 1,018.8 5.0% Equity & Liabilities 3,672
Slide 32: Performance of Key Subsidiaries
Presentation to Analysts - 1st Half 2002, 22.08.2002 Performance of Key Subsidiaries 32
Slide 33: WM 2005 - Creating Value for Tomorrow!
Presentation to Analysts - 1st Half 2002, 22.08.2002 WM 2005 - Creating Value for Tomorrow! EBITDA improvement in M Euro 160 150 Facts: 140 130 • Task force of more than 100 120 employees 110 100 90 • 21 efficiency programs targeting 80 all business units 150 70 60 • Over 100 individual initiatives
Slide 34: WM 2005: major topics within the segments
Presentation to Analysts - 1st Half 2002, 22.08.2002 WM 2005: major topics within the segments Aviation Non-Aviation Ground Handling Others Outsourcing of non-core Retail: Optimization of Improvement of labor Outsourcing of non-core activities shop- and retail portfolio disposition activities Differ
Slide 35: WM 2005: first success in 2002
Presentation to Analysts - 1st Half 2002, 22.08.2002 WM 2005: first success in 2002 Example EBITDA-Effects in 2002 Adjusted pricing Ground Euro 5,500,000 Handling / Optimized sales planning and controlling Budget cut-off for external Euro 2,300,000 projects New flex shifts in Ground Euro 2,000,000 H
Slide 36: Outlook
Presentation to Analysts - 1st Half 2002, 22.08.2002 Outlook 36