Flughafen Zurich AG · SIX:FHZN

Flughafen Zurich — H1 2012 Earnings Presentation

39 slides from Flughafen Zurich's earnings presentation, Aug 21, 2012

  1. Slide 1: Analysts' Presentation – 2012 Half Year Financial Results

    Analysts‘ Presentation – 2012 Half Year Financial Results Thomas E. Kern Daniel Schmucki Chief Executive Officer Chief Financial Officer Zurich | Airport | 21.08.2012 | © Flughafen Zürich AG

  2. Slide 2: Schedule

    Schedule 1. Half Year Highlights 3 2. Half Year Key Data 4 3. Aviation 8 4. Non-Aviation 13 5. Financial Key Figures 18 6. Other Key Topics 22 7. Outlook 28 2 | 21.08.2012 | 2012 Half Year Financial Results © Flughafen Zürich AG

  3. Slide 3: 1. Half Year Highlights

    1. Half Year Highlights • Agreement with Hotel Operator Hyatt for The Circle • Building Permit for The Circle • Standard and Poor’s revises Rating: A- to A • Clarification about Economic Regulation • Issuing of CHF 300 Million Bond • Settlement between CH/DE regarding Aircraft Noise: Draft Treaty si

  4. Slide 4: 2. Half Year Key Data

    2. Half Year Key Data 4 | 21.08.2012 | 2012 Half Year Financial Results © Flughafen Zürich AG

  5. Slide 5: Half Year Traffic Figures

    Half Year Traffic Figures Jan-Jun Jan-Jun in millions Delta 2012 2011 Local passengers 7.7 7.5 2.5% Transfer passengers 4.1 3.9 4.4% Transfer share 34.8% 34.4% Total passengers 11.8 11.5 3.1% Movements (in thousand) 133.9 138.1 -3.1% whereof Line & Charter movements 114.4 116.5 -1.8% Cargo (in thous

  6. Slide 6: Half Year Financial Results

    Half Year Financial Results Jan-Jun Jan-Jun in million CHF Delta 2012 2011 Aviation revenue 283.7 273.6 3.7% Non-Aviation revenue 173.3 158.3 9.5% Revenue 457.0 431.9 5.8% EBITDA 242.2 225.6 7.4% EBITDA margin 53.0% 52.2% EBIT 134.2 126.5 6.1% EBIT margin 29.4% 29.3% Net profit 80.2 73.5 9.1% Intere

  7. Slide 7: Half Year Financial Results (without noise impact)

    Half Year Financial Results (without noise impact) Jan-Jun 2012 Jan-Jun 2011 in million CHF Delta w/o noise w/o noise Aviation revenue 258.7 250.6 3.2% Non-Aviation revenue 173.3 158.3 9.5% Revenue 432.1 408.9 5.7% EBITDA 219.2 204.7 7.1% EBITDA margin 50.7% 50.1% EBIT 115.1 109.1 5.5% EBIT margin 2

  8. Slide 8: 3. Aviation

    3. Aviation 8 | 21.08.2012 | 2012 Half Year Financial Results © Flughafen Zürich AG

  9. Slide 9: Aviation Segment Revenue Breakdown

    Aviation Segment Revenue Breakdown • Passenger and security Jan-Jun Jan-Jun charges reflect growth of 3.1% in million CHF Delta 2012 2011 in passenger volume Passenger charges 93.6 90.8 3.1% • Ø Heavier aircraft weights led Security charges 75.8 73.7 2.9% to over-proportionate growth of landing char

  10. Slide 10: Key Indicators

    Key Indicators Seat Load Factor Passengers per Movement Average Take-Off Weight 73% 130 Seat Load factor Passengers per Movement Average Take-Off Weight 72% 120 71% 110 70% 100 69% 90 68% 80 67% 70 66% 60 65% 50 64% 40 63% 30 62% 20 61% 10 60% - HY1/2002 HY1/2003 HY1/2004 HY1/2005 HY1/2006 HY1/2007

  11. Slide 11: Economic Regulation: Next Steps

    Economic Regulation: Next Steps Implementation of the ordinance: • Flughafen Zürich AG has already started corresponding work to take on all the necessary steps as prescribed in the ordinance.  Preparation • As a result of the 3-step approach (negotiation, potential benchmarking and/or fall back re

  12. Slide 12: Update New Infrastructure Aviation

    Update New Infrastructure Aviation Dock B & Security Check Building • In operation since December 1, 2011 • Daily operations meet all expectations • First cost savings as a result of the new Security Check Building already visible in results Upgrade Terminal 2 (ongoing) • Refurbishment in its major

  13. Slide 13: 4. Non-Aviation

    4. Non-Aviation 13 | 21.08.2012 | 2012 Half Year Financial Results © Flughafen Zürich AG

  14. Slide 14: Non-Aviation Segment Revenue Breakdown

    Non-Aviation Segment Revenue Breakdown • Commercial revenues Jan-Jun Jan-Jun increased by 15.2%, primarily in million CHF Delta 2012 2011 due to the openings of the Retail and tax & duty free 42.3 35.5 19.1% Arrival- / Walkthrough duty free Food & beverage 6.8 6.4 6.8% and other new concepts Others

  15. Slide 15: Commercial: Gross Income Shop-Operators

    Commercial: Gross Income Shop-Operators 15 | 21.08.2012 | 2012 Half Year Financial Results © Flughafen Zürich AG

  16. Slide 16: New Infrastructure Non-Aviation

    New Infrastructure Non-Aviation Airside • Grieder Men • La Prairie • Tommy Hilfiger 2010 2012 ~ 10‘000 m2 ~ 14‘000 m2 • IWC Schaffhausen • Caviar House • Sprüngli • Arrival Duty Free 2, opened June 1, 2011 • Arrival Duty Free 1, opened July 19, 2011 • Walkthrough Duty Free, opened December 1, 2011 L

  17. Slide 17: Commercial Openings Airside

    Commercial Openings Airside June 2012 June 2012 July 2012 August 2012 August 2012 August 2012 17 | 21.08.2012 | 2012 Half Year Financial Results © Flughafen Zürich AG

  18. Slide 18: 5. Financial Key Figures

    5. Financial Key Figures 18 | 21.08.2012 | 2012 Half Year Financial Results © Flughafen Zürich AG

  19. Slide 19: Operating Expenses

    Operating Expenses • Disproportionate increase of Jan-Jun Jan-Jun total operating expenses by in million CHF 2012 2011 Delta 4.1% in comparison to total Personnel 83.1 80.3 3.5% revenues Police and security 57.6 58.8 -2.1% • More FTEs as a result of Energy and waste 13.1 12.8 2.0% the new infrastruc

  20. Slide 20: Net Result

    Net Result • Increase of EBITDA Jan-Jun Jan-Jun in million CHF Delta 2012 2011 margin to 53.0% EBITDA 242.2 225.6 7.4% • Significant higher EBITDA margin 53.0% 52.2% depreciation due to newly Depreciation and amortisation -108.0 -99.1 9.0% capitalised infrastructure EBIT 134.2 126.5 6.1% (primarily

  21. Slide 21: Other Key Figures

    Other Key Figures • Overall solid key figures in million CHF incl. noise excl. noise HY 2012 HY 2011 HY 2012 HY 2011 • Increase of ROCE excl. Interest-bearing liabilities/EBITDA* 1.67x 1.55x 2.42x 2.20x noise by 7.3% Interest-bearing liabilities** 837.1 818.3 1'101.1 1'063.5 • Slight increase of int

  22. Slide 22: 6. Other Key Topics

    6. Other Key Topics 22 | 21.08.2012 | 2012 Half Year Financial Results © Flughafen Zürich AG

  23. Slide 23: The Circle at Zürich Airport

    The Circle at Zürich Airport Two important milestones achieved: • 03/2012: Hyatt signed agreement for two hotels with 550 rooms and conference facilities • 04/2012: building permit legally binding Current step in project development: • preliminary study until Q1 2013 Final triggers for project appro

  24. Slide 24: Settlement between DE & CH regarding Aircraft Noise

    Settlement between DE & CH regarding Aircraft Noise The draft treaty contains the following key points: • No numeric restriction for approaches. • Northern approaches over German territory • from 6h30 until 18h00 CET (before: 7h00 until 21h00 CET). • on Weekends/Holidays from 9h00 until 18h00 CET (b

  25. Slide 25: Scenarios

    Scenarios from ratification Model EDVO+1h Ratification Runway in CH & DE expansion Model JTreaty YES from 2020 Runway Settle- expansion Model JSouth ment NO todays Model EDVO DVO* Ratification failed tightened DVO* Model ? *DVO = Unilateral Ordinance issued by Germany , “Durchführungsverordnung zur

  26. Slide 26: Interpretation Flughafen Zürich AG: Air Traffic 2020 (Model J Treaty)

    Interpretation Flughafen Zürich AG: Air Traffic 2020 (Model J Treaty) today Model EDVO+1h Model JTreaty Time MO-FR SA/SO + F. MO-FR SA/SO + PH MO-FR SA/SO + Public Holidays CNA 06:00- South South 06:30 07:00 07:00 08:00 CNA South South South 08:00- 09:00 09:00 09:00 10:00 Model 1 Model 2 10:00- 12:0

  27. Slide 27: Political & Regulatory Update

    Political & Regulatory Update Employee Pension Fund of the Canton of Zurich (BVK): • Cantonal Council approved single payment of CHF 2bn & package of measures • FZAG is assessing all available options. This may lead to classifying the employee benefit plan according to IAS 19.27 Negotiations about n

  28. Slide 28: 7. Outlook

    7. Outlook 28 | 21.08.2012 | 2012 Half Year Financial Results © Flughafen Zürich AG

  29. Slide 29: Outlook 2012: Traffic

    Outlook 2012: Traffic Jan-Jul Jan-Jul in millions Delta 2012 2011 Local passengers 9.3 9.1 2.1% Transfer passengers 4.9 4.7 3.9% Transfer share 34.3% 33.9% Total passengers 14.3 13.9 2.7% Movements (in thousand) 158.3 163.0 -2.9% whereof Line & Charter movements 135.6 138.1 -1.7% Cargo (in thousand

  30. Slide 30: Outlook Traffic: Changes Winter Timetable 2012

    Outlook Traffic: Changes Winter Timetable 2012 SWISS: Additions/reductions:  Miami, daily increased to 11x weekly  Athens, 21x decreased to 16x weekly  Montreal, 6x decreased to 5x weekly  Thessaloniki, ceased service from daily Other airlines: New services/frequency additions:  Alitalia Rome,

  31. Slide 31: Outlook 2012: Commercial Activities

    Outlook 2012: Commercial Activities Jan-Jul Jan-Jul Delta 2012 2011 Total turnover, m CHF 295.0 276.6 6.7% Airside (change versus prev. year) 13.5% -1.2% Landside (change versus prev. year) -0.7% 2.0% Commercial turnover/dep. pax, CHF 41.3 39.8 3.9% Airside (change versus prev. year) 10.5% -9.3% Lan

  32. Slide 32: Guidance Full Year 2012 confirmed with slight adjustments

    Guidance Full Year 2012 confirmed with slight adjustments • Passenger volume increase by approx. 2.5% • Total revenues to increase by 4 to 5% • Aviation revenue to grow slightly above passenger volume as a result of revised noise split between FZAG and Canton ZH • Non-Aviation revenue to grow over-p

  33. Slide 33: 8. Your Questions

    8. Your Questions 33 | 21.08.2012 | 2012 Half Year Financial Results © Flughafen Zürich AG

  34. Slide 34: Guidance on mid term Capex Plan

    Guidance on mid term Capex Plan CAPEX (Mio CHF) 2010 2011 2012 2013 2014 2015 2016 2017 2018 Terminal Area Zürich 2010 105 170 5 Zone Terminal 2 15 30 45 50 40 25 15 Zone Terminal 1 and Baggage Sorting 5 18 20 10 System Parking Parking (replacement and additional 5 11 25 35 40 25 10 20 10 capacity)

  35. Slide 35: Repayment Schedule (as per 30.06.2012)

    Repayment Schedule (as per 30.06.2012) Major repayments: 2024 421.2 • Last repayment ~ CBL in Dec. 2012 2017 250.0 • Partly repayments US PP (2011-15) 2016 0.0 • Maturities Bonds CHF 225m (2014) 2015 73.2 CHF 250m (2017) 2014 298.2 • Repayment Japanese PP (2024) 2013 73.2 2012 repaid in April 2012 1

  36. Slide 36: Debt Maturity Structure (Financial Liabilities)

    Debt Maturity Structure (Financial Liabilities) 30.06.2012 8.7% 53.1% 38.1% 2011 8.1% 34.4% 57.4% 2010 9.0% 47.2% 43.8% 2009 15.6% 44.2% 40.2% 2008 14.3% 38.1% 47.6% 2007 3.6% 48.0% 48.4% 2006 8.7% 38.8% 52.5% 2005 7.8% 23.5% 68.7% 2004 6.9% 26.5% 66.5% 2003 6.5% 25.1% 68.4% 2002 17.4% 54.4% 28.2% 0

  37. Slide 37: Customer Segments ZRH Jan-Jun 2012

    Customer Segments ZRH Jan-Jun 2012 2011 YTD Star Alliance 2012 YTD 69.9% Low Cost Carrier 10.6% Passenger development vs. previous year One World YTD 10.2% Star Alliance recent month Low Cost Carrier Sky Team 3.7% One World Sky Team Charter 1.4% Charter -20% -10% 0% 10% 20% 0% 20% 40% 60% 80% 100% 3

  38. Slide 38: Star Alliance Hubs

    Star Alliance Hubs 20% BRU 2011 2012 CPH Impact of volcanic erruption in Island in April 2010 FRA 15% MUC VIE ZRH 10% VIE FRA 5% CPH BRU ZRH MUC 0% -5% 38 | 21.08.2012 | 2012 Half Year Financial Results © Flughafen Zürich AG

  39. Slide 39: ZRH Passenger Market Share & Growth (HY 2012)

    ZRH Passenger Market Share & Growth (HY 2012) Europe June 2012 YTD 2012 North America June 2012 YTD 2012 Market share +3.0% +2.6% Market share +1.3% +2.4% from/to ZRH +0.8% +1.8% from/to ZRH +10.0% +4.7% Middle East June 2012 YTD 2012 Market share +13.1% +13.2% from/to ZRH +16.4% +8.1% Africa June 2

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