Fraport Ag · XETR:FRA
Fraport — Q2 2023 Earnings Presentation
36 slides from Fraport's earnings presentation, Aug 8, 2023
Slide 1: 2Q23 Analyst Presentation, Fraport AG
Januar Analystbis September I2022 Presentation August 20238.11.2022 2Q23 Fraport AG Bilanzpressekonferenz Prof.Stefan Dr. Dr. Matthias Zieschang Schulte, l CFO Vorstandsvorsitzender
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: 2Q23 Review: Steady Ramp-Up in Frankfurt
2Q23 Review Preliminary FRA July 2023 Passengers: Steady Ramp-Up in Frankfurt Passenger Recovery ~87% of 2019 Frankfurt Monthly Passenger Recovery Frankfurt Airport Passenger Recovery vs. 2019 Chinese Recovery at Frankfurt Airport Steady Increase in Frankfurt Passenger Numbers: 2Q back at ~82% of 20
Slide 4: 2Q23 Review: Group Airports Progressing to Full Recovery
2Q23 Review Preliminary July 2023 Passengers: Group Airports Progressing to Full Recovery Greece ~116% of 2019 Good European Summer Season 2Q Passengers ex. FRA back at Fraport Greece with Best-in-Class will bring Group Airports close to 2019 ~95% of 2019 Recovery: +10% vs. 2Q19 Level in 23FY 6M23 P
Slide 5: 2Q23 Review: Key Financial Highlights
2Q23 Review Key Financial Highlights 1 2 Aviation EBITDA reaches Retail & Real Estate EBITDA 2Q19 level at 82% PAX exceeds 2Q19 level at 82% PAX Recovery Recovery 3 Fraport Greece doubles 2Q19 EBITDA at +10% PAX 4 Group EBITDA exceeds 2Q19 level by 4% 5 2Q23 Analyst Presentation I August 2023
Slide 6: Fraport Group: 2Q23 EBITDA exceeds 2019 Level
Fraport Group 2Q23 EBITDA exceeds 2019 Level EUR mn 2Q23 2Q22 2Q19 ▪ Revenues excl. IFRIC12 c.7% above Revenue 1,039 809 979 2Q19 ex. IFRIC 12 894 737 835 ▪ Mainly thanks to International Activities Other Income 22 75 15 EBITDA c.4% above 2Q19 EBITDA 323 338 311 ▪ Despite higher D&A, EBIT above 2Q19
Slide 7: Segment Aviation
Segment Aviation 2Q23 EBITDA back on 2019 Level EUR mn 2Q231 2Q22 2Q19 ▪ Supported by price increases; Aviation Revenue 288 224 270 Charges recovered to 99% of 2Q19 Charges 212 168 215 ▪ Security Transitioning increased Security 66 47 42 Revenues and Cost by EUR c.24mn vs. Other Income 12 6 8 2Q19 (
Slide 8: Segment Retail & Real Estate
Segment Retail & Real Estate Strong Earnings Performance despite Inflationary Cost EUR mn 2Q23 2Q22 2Q19 ▪ Real Estate Revenues 20% above 2Q19 Revenue 127 106 125 ▪ Parking Revenues top 2Q19 at 82% Pax Retail 44 34 56 Recovery Real Estate 51 46 42 ▪ Spend per Pax at EUR 3.02 → see next Parking 27 20
Slide 9: Segment Retail & Real Estate: Retail Revenues per Passenger
Segment Retail & Real Estate Retail Revenues per Passenger 2Q23 Retail Revenues per Passenger 3% below 2Q19, but well above Previous Year 2019 → 2022 outperformed 2019 on FY basis 2022 5 2023 4.23 3.76 EUR 4 3.46 3.52 3.30 3.26 3.28 3.33 3.10 3.02 3.00 3.14 2.95 3.00 3 2.73 2 1 0 1Q 2Q 6M 3Q 4Q FY S
Slide 10: Segment Ground Handling
Segment Ground Handling High one-time Wage Payment turns EBITDA negative EUR mn 2Q23 2Q22 2Q19 ▪ Ground Handling Revenues and Revenue 173 147 184 Infrastructure Charges recovered to Ground Hand. 86 79 93 92% and 96%, respectively, of 2Q19 Central Infra. 82 62 85 ▪ Collective bargaining agreement Oth
Slide 11: Segment International Activities & Services
Segment International Activities & Services Steady Outperformance vs. 2019 EUR mn 2Q23 2Q22 2Q19 ▪ Revenues ex. IFRIC12 above 2Q19, Revenue 450 332 400 despite Traffic remaining below 2Q19 IFRIC 12 144 71 144 ▪ Positive Effect from higher Airport ex IFRIC 12 306 261 256 Charges and Retail Revenues i
Slide 12: Cash Flow Statement
Cash Flow Statement Strong OCF Increase, Expansion Capex as expected EUR mn -24 +30 -44 7,481 -149 -11 -32 -248 7,059 +294 -229 -4 -5 Free Cash Flow 6M23: € -378mn Other Fixed IAS 23 IFRS Divs from Other Net debt OCF Brazil Greece Lima FRA Net debt capex concession borrowing 16 at equity YE 2022 cap
Slide 13: Cash Management: Available Funds
Cash Management Available Funds1continuously high at EUR 5+bn Cash & Financial Assets (Liquidity) Committed Credit Lines & Finance EUR mn EUR +3,313mn 5,500 5,044 5,020 4,506 4,603 4,500 1,374 1,273 736 942 3,500 3,110 3,867 3,564 3,670 3,747 2,500 896 1,707 2,214 1,500 550 1,156 500 Dec. 31, 2019 D
Slide 14: Cash Management: Available Funds & Repayment Profile
Cash Management Available Funds & Repayment Profile 12,000 in € mil. 11,228 11,000 10,000 €9.3 bn Fraport AG debt 9,000 8,000 €1.1 bn Greece debt Average debt condition 7,000 ~ 2.6 % interest rate € 368 mn Brazil debt 6,000 5,020 5,000 € 461 mn Lima debt 4,000 3,000 3,747 2,000 18 19 13 16 17 14 449
Slide 15: 23FY Outlook: Guidance Ranges Specified
23FY Outlook Guidance Ranges Specified! FRA Passengers EBITDA >80-90% of 2019 1,040-1,200mn 2019: ~70.6mn 2019: EUR ~1,180mn Net Debt/EBITDA Result before Minorities DPS ~stable 300-420mn EUR - vs. 2022 level of 6.9 2019: EUR ~454mn unchanged vs. 2022 15 2Q23 Analyst Presentation I August 2023
Slide 16: Appendix: Detailed Financials
Januar Januar JPM bis bis September September Aviation 2022 2022 & Logistics Series20238.11.2022 I April 2023 Analyst Presentation 8.11.2022 I August 22FY Appendix Fraport AG Fraport AG Bilanzpressekonferenz Bilanzpressekonferenz Detailed Financials Dr. Stefan Schulte, Vorstandsvorsitzender Dr. Stef
Slide 17: Group P+L
Appendix Group P+L € million 6M 2023 6M 2022 Q2 2023 Q2 2022 Revenue 1,804.3 1,348.5 1,038.7 808.9 Other internal work capitalized 27.5 19.9 13.3 10.3 Other operating income 36.7 71.5 8.3 64.7 Total revenue 1,868.5 1,439.9 1,060.3 883.9 Cost of materials –761.8 –454.7 –411.5 –249.6 Personnel expense
Slide 18: Cash Flow
Appendix Cash Flow € million 6M 2023 6M 2022 Q2 2023 Q2 2022 € million 6M 2023 6M 2022 Q2 2023 Q2 2022 Result attributable to shareholders of Cash flow used in/from operating activities 293.8 185.3 210.0 182.6 Fraport AG 80.7 –48.9 102.3 59.2 Result attributable to non-controlling Investments in air
Slide 19: Financial Position
Appendix Financial Position Assets June 30, 2023 December 31, 2022 Liabilities and equity June 30, 2023 December 31, 2022 Non-current assets Shareholders’ equity Goodwill 19.3 19.3 Issued capital 923.9 923.9 Investments in airport operating projects 3,985.0 3,769.1 Capital reserve 598.5 598.5 Other
Slide 20: Overview of Major Special Effects 2023/2022
Appendix Overview of Major Special Effects 2023/2022 1Q 2023 1Q 2022 Aviation Financial Result EUR +22.0mn Other Income: Initial fair value recognition and gain on EUR +20.0mn Result from companies accounted for using the equity method: disposal of Security Business Xi’An Reversal of Impairment Loss
Slide 21: Breakdown of D&A & Interest Expenses
Appendix Breakdown of D&A & Interest Expenses EUR mn 22FY 21FY 20FY 19FY 2Q23 1Q23 2Q22 1Q22 Depreciation & Amortization 465 443 458 475 119 116 114 112 of which IFRS16 related 1 41 38 45 45 9 10 10 10 of which IFRIC12 related 2 116 106 94 84 33 29 29 27 of which other D&A 308 299 319 346 77 77 75 7
Slide 22: Aviation Multi-Quarter Overview
Appendix Aviation Multi-Quarter Overview 2Q23 1Q23 4Q22 3Q22 2Q22 1Q22 4Q21 3Q21 2Q21 1Q21 4Q19 3Q19 2Q19 1Q19 PAX mn 15.5 11.3 13.0 15.1 13.5 7.3 9.0 9.3 4.0 2.5 16.4 20.5 18.8 14.8 MOV 112k 89k 97k 105k 106k 74k 87k 85k 52k 38k 121k 140k 136k 117k MTOW mn 6.9 5.7 6.2 6.7 6.4 4.9 5.5 5.2 3.8 3.1 7.
Slide 23: Retail & Real Estate Multi-Quarter Overview
Appendix Retail & Real Estate Multi-Quarter Overview 2Q23 1Q23 4Q22 3Q22 2Q22 1Q22 4Q21 3Q21 2Q21 1Q21 4Q19 3Q19 2Q19 1Q19 PAX mn 15.5 11.3 13.0 15.1 13.5 7.3 9.0 9.3 4.0 2.5 16.4 20.5 18.8 14.8 MOV 112k 89k 97k 105k 106k 74k 87k 85k 52k 38k 121k 140k 136k 117k MTOW mn 6.9 5.7 6.2 6.7 6.4 4.9 5.5 5.
Slide 24: Ground Handling Multi-Quarter Overview
Appendix Ground Handling Multi-Quarter Overview 2Q23 1Q23 4Q22 3Q22 2Q22 1Q22 4Q21 3Q21 2Q21 1Q21 4Q19 3Q19 2Q19 1Q19 PAX mn 15.5 11.3 13.0 15.1 13.5 7.3 9.0 9.3 4.0 2.5 16.4 20.5 18.8 14.8 MOV 112k 89k 97k 105k 106k 74k 87k 85k 52k 38k 121k 140k 136k 117k MTOW mn 6.9 5.7 6.2 6.7 6.4 4.9 5.5 5.2 3.8
Slide 25: Major International Holdings (2Q)
Appendix Major International Holdings Fully consolidated Group companies € million Share in % Revenue1) EBITDA EBIT Result 2Q23 2Q22 Δ% 2Q23 2Q22 Δ% 2Q23 2Q22 Δ% 2Q23 2Q22 Δ% Fraport USA 100 29.5 27.2 +8.5 14.0 12.5 +12.0 6.5 3.3 +12.1 3.3 0.3 >100 Fraport Slovenija 100 11.0 8.7 +26.4 3.8 2.3 +65.2
Slide 26: Major International Holdings (6M)
Appendix Major International Holdings Fully consolidated Group companies € million Share in % Revenue1) EBITDA EBIT Result 6M23 6M22 Δ% 6M23 6M22 Δ% 6M23 6M22 Δ% 6M23 6M22 Δ% Fraport USA 100 57.5 47.7 +20.5 28.5 23.0 +23.9 12.2 4.6 >100 6.7 –0.6 – Fraport Slovenija 100 19.6 14.7 +33.3 4.9 2.4 >100 –
Slide 27: P&L of Major Airport Investments
Appendix P&L of Major Airport Investments Greece €mn 2Q23 2Q22 2Q19 1Q23 1Q22 1Q19 Twin Star €mn 2Q23 2Q22 2Q19 1Q23 1Q22 1Q19 Revenue 159 117 128 32 22 78 Revenue 11 9 15 5 3 3 Revenue w/o IFRIC 12 138 113 81 30 22 23 Revenue w/o IFRIC 12 11 9 15 5 3 3 - Airport Charges 112 94 69 21 16 15 - Airport
Slide 28: P&L of Major Airport Investments
Appendix P&L of Major Airport Investments Local Currency Local Currency Lima €mn 2Q23 2Q22 2Q19 1Q23 1Q22 1Q19 2Q23 2Q22 2Q19 1Q23 1Q22 1Q19 Revenue 198 132 127 182 119 89 216 140 143 195 133 101 Revenue w/o IFRIC 12 76 65 87 74 55 82 83 70 98 80 62 93 - Airport Charges 44 38 49 43 31 46 48 40 55 46
Slide 29: 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! 29 2Q23 Analyst Presentation I Augu
Slide 30: Capex, Cash Flow & Net Debt 23FY Outlook
Appendix Capex, Cash Flow & Net Debt 23FY Outlook Frankfurt FCF & Net Debt Bridge FY 2023 T3 Capex: €~550mn 1,500 1.040 -1.250 Other Capex: to to €~250mn 1,200 1.200 -1.350 FCF: negative 900 Lima 600 Capex as per 3Q22 guidance: 300 -400 €~350-450mn to -660 FCF: 0 -100 -200 Before: negative -100 -300
Slide 31: Frankfurt Regulatory Progress
Appendix Frankfurt Regulatory Progress 1 2 3 4 5 Review Board Consultation Application Review Decision Meetings − Meetings with major − Consultation held Jun 23 − Application forwarded − Hessian Ministry of − Decision expected in customers held prior to − Charge increase of in July 23 Economics, Ene
Slide 32: Fraport Greece Financial Overview
Appendix Fraport Greece Financial Overview Revenue EBITDA Greece Cash Return Structure EUR mn EUR mn 463 444 10 166 272 434 206 255 77 Repayment of 297 29 195 Shareholder Loans 226 170 124 82 35 19FY 21FY 22FY 19FY 21FY 22FY 23FY Underlying EBITDA ex. State Compensation Effects IFRIC 12 State Compen
Slide 33: FRA Staff Number Development
Appendix FRA Staff Number Development Frankfurt Consolidated Staff Number Ground Handling Other FRA Positions FraSec as of June 30, 2023: 15,456 Number of Employees (as per Reporting Date) down by c.5,300 vs. YE’19 20,468 20,792 LFL: 4,277 4,308 16,831 16,444 669 - Reduction in Shareholding led to c
Slide 34: New German Public Sector Bargaining Agreement
Appendix New German Public Sector Bargaining Agreement EUR c.30mn impact on Cost increase per employee ∑ 3 Frankfurt Segments ∑EUR c.5mn impact EUR c.70mn impact on 3 Frankfurt Segments in EUR 1,240 1,200 1,000 Non-permanent payments Permanent wage adjustments 800 EUR 200 step-up 600 + 5.5% 400 220
Slide 35: Dates: 2023 Financial Calendar
Appendix Dates 2023 Financial Calendar Mar 14, 2023 May 4, 2023 May 23, 2023 Aug 8, 2023 Nov 7, 2023 FY 3M AGM 6M 9M 2020 Traffic Calendar 2023 Apr12, Apr 17,2019 2023 May 12, 2023 Jun 14, 2023 Jul 13, 2023 Aug 11, 2023 3M 4M 5M 6M 7M Sep 13, 2023 Oct 13, 2023 Nov 13, 2023 Dec 13, 2023 Jan 16, 2024
Slide 36: 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 36 2Q23 Analyst Presentation I August 2023