Flughafen Zurich Ag · SIX:FHZN
Flughafen Zurich — FY2021 Earnings Presentation
49 slides from Flughafen Zurich's earnings presentation, Mar 8, 2022
Slide 1: Financial Year Results 2021
Financial Year Results 2021 Presentation to Investors & Analysts Stephan Widrig, Chief Executive Officer Lukas Brosi, Chief Financial Officer March 8, 2022
Slide 2: Content
Content 01 Business Update 02 Financial Update 03 Outlook 04 Q&A 05 Appendix 2
Slide 3: Traffic Development ZRH
Traffic Development ZRH Business Update Still low but improving Traffic Figures in 2021 Passengers (in million) Seat Load Factor Financial Update 1.6 1.6 46% 54% 75% 1.4 1.4 68% 67% 1.1 1.1 55% 75% 57% 0.2 0.6 46% 44% 43% 71% 0.3 0.3 0.5 0.2 Outlook Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Ja
Slide 4: Milestones
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Slide 5: Milestones Full Year 2021
Business Update Milestones Full Year 2021 Financial Update • Travel restrictions: Almost all restrictions for entering Switzerland lifted in February 2022 Aviation • CO2 Act rejected: Voters rejected climate tax per passenger in June Commercial / • Commercial business ZRH: All shops and restaurants
Slide 6: Inaugural Sustainability Report
Inaugural Sustainability Report For the first time, Zurich Airport has published a sustainability report according to GRI guidelines. • Included in the Annual Report (i.e. Integrated Report) • Includes besides Zurich Airport all majority owned subsidiaries • Based on existing mid- and long-term goal
Slide 7: Financial Summary
Financial Summary Business Update Return to profitability in H2 2021 Revenue (in million CHF) EBITDA (in million CHF) Financial Update 680 624 299 196 Outlook FY20 FY21 FY20 FY21 Consolidated Result (in million CHF) CAPEX Group* (in million CHF) Q&A -10 399 -69 International Circle 206 International
Slide 8: Aviation
Aviation 8
Slide 9: Aviation Business ZRH
Aviation Business ZRH Business Update Difficult Environment for Air Travel in 2021 In the first half of 2021, traffic was at very low levels of around 15% Financial Update compared to the pre-crisis period. In summer and during fall, the number of passengers rose to approximately 50% with peak days
Slide 10: Commercial Business and Real Estate
Commercial Business and Real Estate 10
Slide 11: Commercial Business and Car Parks ZRH
Commercial Business and Car Parks ZRH Business Update In Recovery Mode COMMERCIAL BUSINESS Financial Update Restrictions for retail and F&B in Switzerland were drastic in the first half of the year. Shops were allowed to reopen in March and indoor restaurants in June. In addition to the passengers,
Slide 12: Commercial Business ZRH
Commercial Business ZRH Business Update Commercial Turnover Recovery ongoing Commercial Turnover (in million CHF) Financial Update 576 594 601 545 in CHFm 295 237 Outlook FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 Turnover Airside (CHFm) Turnover Landside (CHFm) Q&A Total Airside Commercial Area ~14,
Slide 13: Real Estate Business
Real Estate Business Business Update Resilient during Crisis and expected to perform well in the Future Financial Update Revenue from Facility Management (in million CHF) The Circle Revenue* (in million CHF) 153 ~65-70 141 120 121 125 41 Outlook 19 FY2017 FY2018 FY2019 FY2020 FY2021 FY20 FY21 after
Slide 14: International
International 14
Slide 15: International Monthly Passenger Development
International Business Update Monthly Passenger Development Florianópolis (in thousands) Vitória / Macaé (in thousands) Financial Update 361 361 384 305 301 283 278 290 292 472 313 274 251 293 286 294 325 316 246 266 264 259 240 265 335 267 219 238 242 259 245 223 246 194 194 211 192 193 153 172 135
Slide 16: Airports in Latam
Airports in Latam Brazil and Chile Portfolio airports in Latin America are recovering faster from the crisis than Zurich Airport, mainly due to a high share of domestic travel. MILESTONES • Operational management of majority owned subsidiaries successfully merged in Brazil • Financial Re-Equilibrium
Slide 17: Noida International Airport
Noida International Airport Good Progress in 2021 ACHIEVED MILESTONES • Financial close with local bank • Ground-breaking ceremony with the Prime Minister of India and Chief Minister of Uttar Pradesh • Hand over of project land and start of earthworks NEXT MILESTONES • Major EPC* contracts expected
Slide 18: Content
Content 01 Business Update 02 Financial Update 03 Outlook 04 Q&A 05 Appendix 18
Slide 19: Declining Revenue and Profit
Declining Revenue and Profit Business Update Full Year 2021 Revenue (in million CHF) Revenue Split (in million CHF) Financial Update • Slightly higher revenue 680 • Despite ramp-up discount 680 624 624 numbers mainly as a for airlines, aviation 669 result of increased 597 revenues increased with 375
Slide 20: Non-Aviation Figures
Non-Aviation Figures Business Update Full Year 2021 Commercial & Parking (in million CHF) Facility Management (in million CHF) Financial Update • Commercial figures • Additional revenues from 199 protected by MAG; The Circle increased however, renegotiations 170 revenues from rental and 153 took pla
Slide 21: Cost-Cutting Initiatives Working
Cost-Cutting Initiatives Working Business Update Full Year 2021 Personnel Expenses (in million CHF) Police & Security (in million CHF) Financial Update • Short-time work in Zurich • Reduced orders for the to receive partial police force resulted in unemployment insurance 179 171 lower costs compensa
Slide 22: Financial Key Ratios
Financial Key Ratios Business Update Full Year 2021 Net Financial Debt / EBITDA ROIC (in %) Financial Update • Net Financial Debt 7.2x • Higher earnings before 0.4% decreased to CHF 1,388m interest turned ROIC positive again 4.6x -1.1% Outlook FY20 FY21 FY20 FY21 Operating Cash Flow (in million CHF)
Slide 23: Group CAPEX
Group CAPEX Business Update Full Year 2021 Financial Update The Circle ~CHF 62 million New Baggage Sorting System ~CHF 54 million Outlook Q&A Total Group CAPEX* of Appendix CHF 206 million Noida International Airport ~CHF 21 million Expansion of Landside Area ~CHF 9 million * Cash view 23
Slide 24: Content
Content 01 Business Update 02 Financial Update 03 Outlook 04 Q&A 05 Appendix 24
Slide 25: Summer Timetable ZRH
Summer Timetable ZRH Business Update Demand for Travel and Airlines are coming back Financial Update Summer Timetable 2019 Indication Summer Timetable 2022* 193 Direct connections to and from Zurich 191 Direct connections to and from Zurich Outlook 59 Scheduled and charter airlines 47 Scheduled and
Slide 26: War in Ukraine
War in Ukraine Business Update Current Assessment • Direct exposure ZRH to Ukraine and Russia of Financial Update approx. 1.5% of total passengers • Impact on aviation market in Western Europe: − Higher kerosine prices lead to higher ticket Outlook and freight prices − Closure of airspace results in
Slide 27: Outlook Guidance 2022
Outlook Business Update Guidance 2022 2021 Actual 2022 Guidance Financial Update Passengers ZRH 10.2 million • Expected to recover to approx. 2/3 of pre-crises volumes Revenues CHF 669 million • Aviation: in line with traffic (excl. IFRIC12) • Non-Aviation: approx. 10% higher than in 2021 Aviation r
Slide 28: Mid-Term CAPEX Roadmap Outlook
Mid-Term CAPEX Roadmap Outlook Business Update Zurich and International Financial Update Outlook Switzerland Brazil Chile India • Zurich: Total CAPEX • Florianópolis: Limited • Antofagasta: No notable • Delhi Noida: Total grows in line with CAPEX expected going infrastructure investments of approx.
Slide 29: Pathway to Full Recovery
Focus Financial Development in Zurich Business Update Pathway to Full Recovery Financial Update 2020 2021 2022 2023 / 2024 2025 1/4 PAX 1/3 PAX 2/3 PAX ~3/4 PAX 100% PAX Secure Liquidity Reach break-even Achieve positive Result Reduce Leverage Back to growth Outlook Maximize OPEX and CAPEX savings M
Slide 30: Company Highlights
Company Highlights Business Update A compelling Story Traffic ZRH Commercial/Real Estate International Leverage Financial Update • Traffic mix (high • Recovery and The • International business • Strong liquidity Europe / US and Circle will increase well positioned to position with relatively leisure
Slide 31: Content
Content 01 Business Update 02 Financial Update 03 Outlook 04 Q&A 05 Appendix 31
Slide 32: Corporate Calendar and Contact Information
Corporate Calendar Business Update Contact Information • March 9, 2022 Financial Update Zürcher Kantonalbank Roadshow (Zurich) Lukas Brosi • March 9 & 10, 2022 Chief Financial Officer HSBC Roadshow (virtual) • March 23/24, 2022 Redburn Roadshow (virtual) Outlook • March 30, 2022 Kepler Swiss Seminar
Slide 33: Content
Content 01 Business Update 02 Financial Update 03 Outlook 04 Q&A 05 Appendix 33
Slide 34: Liquidity and Debt Overview
Liquidity and Debt Overview Business Update As of December 31, 2021 Liquidity (in CHFm) Bond Maturity Profile (in CHFm)1 Financial Update Committed Credit Facilities CHF 300m 500 400 In CHFm Total utilization (incl. guarantees) CHF 12m 300 Available short-term credit facilities CHF 288m 200 100 Cash
Slide 35: Commercial Contracts
Commercial Contracts Business Update Implementation of IFRS16 for Commercial Contracts IFRS16 Old Terms New Terms Comments Financial Update MAG* CHF 5m p.a. CHF 3m for the current year, thereafter again One-time reduction of MAG CHF 5m p.a. Length of contract 10 years 10 years Length unchanged Conce
Slide 36: Zurich Airport at a Glance
Zurich Airport at a Glance Business Update Diversified Airport Operator AVIATION / REGULATED NON-AVIATION / UNREGULATED Financial Update 2021 revenue of CHF 241 million Commercial • “To satisfy the demand for direct connections to 2021 revenue of CHF 199 million the world’s major cities” • Leading c
Slide 37: Performance by Segment
Performance by Segment Business Update Non-Aviation outperforming Aviation Segment Facility Financial Update FY 2021 Aviation Commercial Management Services International** 23% Revenue 153 CHF 241m CHF 199m .11 CHF 153m CHF 32m CHF 55m CHF 680m Outlook 29% Q&A EBITDA* CHF 3m CHF 282m CHF 18m CHF 299
Slide 38: Commercial Centers at Zurich Airport
Commercial Centers at Zurich Airport Business Update Three Different Commercial Centers Financial Update Airport Airside The Circle Shopping Center Outlook Q&A Appendix 38
Slide 39: Group Key Figures
Group Key Figures Business Update Income Statement in million CHF Jan – Dec 2021 Jan – Dec 2020 Financial Update Aviation revenue 240.6 221.7 Non-aviation revenue 439.4 402.3 Revenue 680.0 624.0 EBITDA 299.2 196.0 EBITDA margin (in %) 44.0 31.4 Depreciation and amortization (280.2) (252.6) Outlook E
Slide 40: Revenue Breakdown: Aviation Business
Revenue Breakdown Business Update Aviation Business in million CHF Jan – Dec 2021 Jan – Dec 2020 Financial Update Passenger-related operations charges 136.1 120.0 Landing charges 35.2 32.7 Aircraft-related noise charges 6.5 5.5 Emission charges 1.8 1.6 Parking charges 18.9 24.4 Freight revenue 6.8 6
Slide 41: Revenue Breakdown: Non-Aviation Business
Revenue Breakdown Business Update Non-Aviation Business Jan – Dec 2021 Jan – Dec 2020 Financial Update in million CHF Retail, tax & duty-free 107.4 89.7 Food & beverage operations 13.3 14.6 Advertising media and promotion 16.2 13.1 Revenue from multi-story car parks 51.4 40.8 Other commercial revenu
Slide 42: Cost Overview
Cost Overview Business Update Operating Expenses Breakdown in million CHF Jan – Dec 2021 Jan – Dec 2020 Financial Update Personnel expenses 171.3 179.3 Police and security 84.7 94.1 Energy and waste 22.2 18.0 Maintenance and material 27.9 27.0 Other operating expenses 45.2 42.0 Sales, marketing, adm
Slide 43: International: Active in Emerging Markets
International Business Update Active in Emerging Markets Florianópolis International Airport Switzerland Diego Aracena International Airport Financial Update • New terminal completed in October 2019; Curaçao • New terminal close to completion no major mid-term investments expected • Thereafter, no m
Slide 44: Portfolio Overview – Majority Owned Airports
International Business Update Portfolio Overview – Majority Owned Airports Aport (Antogasta and Financial Update Florianópolis, Brazil Vitória/Macaé, Brazil Noida Delhi, India** Iquique), Chile* FY21 FY20 Δ FY21 FY20 Δ FY21 FY20 Δ FY21 FY20 Δ Passengers (in millions) 2.4 1.9 26% 2.2 1.7 30% 2.9 2.0
Slide 45: Passenger Development: Global Market Figures
Passenger Development Business Update Global Market Figures (Jan – Dec 2021) Worldwide 2021 Financial Update From/to ZRH +22.7% Global market +33.0% Europe 2021 Share ZRH 82.2% From/to ZRH +27.8% Global market +38.6% Middle East 2021 Outlook Share ZRH 4.9% North America 2021 From/to ZRH +31.2% Share
Slide 46: Alliance Share ZRH
Alliance Share ZRH Business Update Largest Alliances in ZRH (Jan – Dec 2021) Alliance Share ZRH Financial Update Lufthansa 68.9% Group 67.7% 64.4% Star Alliance Outlook 64.0% 4.3% Oneworld Passenger Growth 5.4% Lufthansa Group 24.8% Q&A 4.0% Star Alliance 23.4% Skyteam 4.7% Oneworld -0.5% Skyteam 3.
Slide 47: Traffic Ratios
Traffic Ratios Business Update Seat Load Factor, Passengers per Movement and Take-Off Weight Traffic Ratios ZRH Financial Update 80% 78% 78% 77% 77% 76% 76% 74% 75% 73% 130 130 127 Passengers per Movement (PAX) 124 Average Take-Off Weight (tons) 70% Outlook 117 Seat Load Factor 64% 115 114 110 61% 1
Slide 48: Passengers and Movements Development
Passengers and Movements Development Business Update Since ZRH Privatization Historical Traffic Numbers Financial Update 35 31.1 31.5 450'000 29.4 30 27.7 26.3 400'000 24.9 25.5 24.3 24.8 Total Passengers (in millions) 25 Air Traffic Movements (ATM) Outlook 22.6 22.9 22.1 21.9 350'000 21.0 20.7 19.2
Slide 49: Disclaimer
Disclaimer Business Update Forward-Looking Statements This document has been prepared by Flughafen Zürich AG for use in this presentation. Financial Update The information contained in this document has not been independently verified. No representation or warranty – whether express or implied – is