Flughafen Zurich Ag · SIX:FHZN
Flughafen Zurich — H1 2021 Earnings Presentation
44 slides from Flughafen Zurich's earnings presentation, Aug 24, 2021
Slide 1: Financial Half Year Results 2021
Financial Half Year Results 2021 Presentation to Investors & Analysts Stephan Widrig, Chief Executive Officer Lukas Brosi, Chief Financial Officer August 24, 2021
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 Significantly lower Traffic Figures in H1 Passengers (in million) Seat Load Factor Financial Update 76% 80% 77% 82% 2.7 2.7 2.9 69% 72% 2.4 2.1 2.0 54% 55% 0.5 0.6 46% 44% 43% 46% 0.3 0.2 0.2 0.3 Outlook Jan Feb Mar Apr May Jun Jan Feb Mar Apr May Jun 2019 202
Slide 4: Milestones
Milestones 4
Slide 5: Milestones Half Year 2021
Milestones Business Update Half Year 2021 Financial Update • Travel restrictions: Completely lifted by Swiss government (to and from Switzerland) Aviation • CO2 Act rejected: Voters rejected climate tax per passenger in June Commercial / • The Circle: Successful opening of the Hyatt Regency Hotel an
Slide 6: Financial Summary
Financial Summary Business Update Half Year 2021 Revenue (in million CHF) EBITDA (in million CHF) Financial Update 310 264 105 92 Outlook HY20 HY21 HY20 HY21 Consolidated Result (in million CHF) CAPEX Group* (in million CHF) Q&A 203 -28 -45 Circle 109 International Circle Appendix ZRH ZRH HY20 HY21
Slide 7: Aviation
Aviation 7
Slide 8: Aviation Business
Aviation Business Business Update Difficult Environment for Air Travel in H1 2021 Ongoing travel restrictions at the beginning of the year slowed down the Financial Update recovery in air travel and traffic figures remained on very low levels. The negotiated agreement for flight operations charges c
Slide 9: Commercial Business and Real Estate
Commercial Business and Real Estate 9
Slide 10: Resilient Real Estate Business
Commercial Business and Real Estate Business Update Resilient Real Estate Business COMMERCIAL BUSINESS Financial Update The commercial business is impacted by lower turnover numbers as a result of lower passenger numbers and the impact of the lockdown on commuters as well as employees at the airport
Slide 11: Ongoing depressed Commercial Turnover
Commercial Business Business Update Ongoing depressed Commercial Turnover Commercial Turnover (in million CHF) Financial Update CHF 272.7 CHF 284.9 CHF 286.2 CHF 256.6 in CHFm CHF 127.4 Outlook CHF 90.1 HY2016 HY2017 HY2018 HY2019 HY2020 HY2021 Turnover Airside (CHFm) Turnover Landside (CHFm) Q&A To
Slide 12: International
International 12
Slide 13: Latin America – Overview
International Business Update Latin America – Overview Financial Update Country / Airport Update • Passenger traffic shows steady monthly improvements since April • Government supports airport sector with partial measures Brazil • Consolidation of management functions of airports in Florianópolis an
Slide 14: Noida International Airport, India
International Business Update Noida International Airport, India Financial Update Achieved Milestones Financing secured March 2021 • Zurich Airport signed the financing agreements with Signing of State Support Agreement, India Ratings issued provisional A-/stable rating the State Bank of India (SBI)
Slide 15: Content
Content 01 Business Update 02 Financial Update 03 Outlook 04 Q&A 05 Appendix 15
Slide 16: Declining Revenue and Profit
Declining Revenue and Profit Business Update Half Year 2021 Revenue (in million CHF) Revenue Split (in million CHF) Financial Update 310 310 • Declining revenue 264 • Not all aviation revenues 264 numbers as a result of 307 correlate directly with the pandemic 259 traffic development 177 • Solid non
Slide 17: Non-Aviation Figures
Non-Aviation Figures Business Update Half Year 2021 Commercial & Parking (in million CHF) Facility Management (in million CHF) Financial Update • Commercial figures • Additional revenues from protected by MAG; 85 The Circle boost 75 however, renegotiations revenues from rental and took place 73 leas
Slide 18: Cost-Cutting Initiatives Working
Cost-Cutting Initiatives Working Business Update Half Year 2021 Personnel Expenses (in million CHF) Police & Security (in million CHF) Financial Update • Short-time work in Zurich • Reduced orders for the 94 50 to receive partial police force resulted in unemployment insurance significantly lower co
Slide 19: Financial Key Ratios
Financial Key Ratios Business Update Half Year 2021 Net Financial Debt / EBITDA ROIC (in %) Financial Update • Net Financial Debt • Lower profit numbers led increased to CHF 1,443m 7.9x to a drop in ROIC 4.0% 2.8x -1.5% Outlook HY20 HY21 HY20 HY21 Operating Cash Flow (in million CHF) Free Cash Flow
Slide 20: Group CAPEX
Group CAPEX Business Update Half Year 2021 Financial Update The Circle ~CHF 18 million New Baggage Sorting System ~CHF 31 million Outlook Q&A Total Group CAPEX* of Appendix CHF 109 million Refurbishment Runway 28/10 ~CHF 5 million Expansion of Landside Area ~CHF 4 million * Cash view 20
Slide 21: Content
Content 01 Business Update 02 Financial Update 03 Outlook 04 Q&A 05 Appendix 21
Slide 22: Outlook: Guidance 2021
Outlook Business Update Guidance 2021 2020 Actual 2021 Guidance Financial Update Passengers ZRH 8.3 million • If positive trend continues, exceeding 50% of 2019 volumes feasible towards year-end • Further set-backs cannot be ruled out Revenues CHF 624 million • Aviation: In line with traffic numbers
Slide 23: Mid-Term CAPEX Roadmap
Mid-Term CAPEX Roadmap Outlook Business Update Zurich and International Financial Update Zurich • Total CAPEX of CHF 200m to 220m p.a. expected going forward Brazil • Florianópolis: Limited CAPEX expected going forward Outlook • Vitória and Macaé: Total CAPEX of roughly CHF 80m expected from 2022 to
Slide 24: Recovery and Debt Reduction
Recovery and Debt Reduction Business Update Plan to restore previous Financial Health Object 2019 Today 2025 Comment Financial Update Total Passengers ZRH 31.5m short-term uncertainty ~pre crisis levels • Back to pre crisis levels by 2025 • Tariff agreement reached in 2020 Aviation Revenues ZRH CHF
Slide 25: Possible Debt Evolution
Possible Debt Evolution Business Update Distinction between Debt held at Parent Company and International Debt Net Debt held in Zurich vs. International Financial Update • Net debt of parent company in Zurich expected to decrease with recovery in coming years (deleveraging) Outlook • Net debt of int
Slide 26: Content
Content 01 Business Update 02 Financial Update 03 Outlook 04 Q&A 05 Appendix 26
Slide 27: Corporate Calendar and Contact Information
Corporate Calendar Business Update Contact Information • August 30 & September 8, 2021 Financial Update Stifel Roadshow (virtual) Lukas Brosi • September 3, 2021 Chief Financial Officer BofA European Infrastructure Fieldtrip (virtual) • September 6/7, 2021 UBS Transport Conference (virtual) Outlook
Slide 28: Content
Content 01 Business Update 02 Financial Update 03 Outlook 04 Q&A 05 Appendix 28
Slide 29: Liquidity and Debt Overview
Liquidity and Debt Overview Business Update As of June 30, 2021 Liquidity (in CHFm) Bond Maturity Profile (in CHFm)1 Financial Update Committed Credit Facilities CHF 300m 500 400 Total utilization (incl. guarantees) CHF 12m In CHFm 300 Available short-term credit facilities CHF 288m 200 100 Cash bal
Slide 30: 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 31: Zurich Airport at a Glance
Zurich Airport at a Glance Business Update Diversified Airport Operator AVIATION / REGULATED NON-AVIATION / UNREGULATED Financial Update 2020 revenue of CHF 222 million Commercial, Real Estate & Services • “To satisfy the demand for direct connections to 2020 revenue of CHF 339 million the world’s m
Slide 32: 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 32
Slide 33: Our Contribution to the Environment
Our Contribution to the Environment Business Update Long history in minimizing Emissions 0 Financial Update Net CO2-Emissions Airport Carbon Accreditation Certified environmental Certified climate protection management system by 2050 Outlook program with reduction targets (ISO 14001) since 2001 to b
Slide 34: Group Key Figures
Group Key Figures Business Update Income Statement in million CHF Jan – Jun 2021 Jan – Jun 2020 Financial Update Aviation revenue 65.5 130.4 Non-aviation revenue 198.1 180.0 Revenue 263.6 310.4 EBITDA 92.2 104.9 EBITDA margin (in %) 35.0 33.8 Depreciation and amortization (134.8) (123.3) Outlook EBI
Slide 35: Revenue Breakdown: Aviation Business
Revenue Breakdown Business Update Aviation Business in million CHF Jan – Jun 2021 Jan – Jun 2020 Financial Update Passenger-related operations charges 29.2 73.5 Landing charges 10.6 18.8 Aircraft-related noise charges 2.0 3.5 Emission charges 0.6 0.9 Parking charges 8.7 12.3 Freight revenue 3.3 3.3
Slide 36: Revenue Breakdown: Non-Aviation Business
Revenue Breakdown Business Update Non-Aviation Business Jan – Jun 2021 Jan – Jun 2020 Financial Update in million CHF Retail, tax & duty-free 52.4 33.9 Food & beverage operations 5.3 5.5 Advertising media and promotion 6.1 6.1 Revenue from multi-story car parks 17.2 21.4 Other commercial revenue 4.3
Slide 37: Cost Overview
Cost Overview Business Update Operating Expenses Breakdown in million CHF Jan – Jun 2021 Jan – Jun 2020 Financial Update Personnel expenses 80.1 94.0 Police and security 35.8 50.4 Energy and waste 9.5 9.5 Maintenance and material 11.5 12.7 Other operating expenses 22.2 22.1 Sales, marketing, adminis
Slide 38: 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 expected to be completed in no major mid-term investments expected 2021 Delhi
Slide 39: 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 HY21 HY20 Δ HY21 HY20 Δ HY21 HY20 Δ HY21 HY20 Δ Passengers (in millions) 0.9 1.1 (18%) 0.8 0.8 (3%) 1.1 1.0
Slide 40: Passenger Development
Passenger Development Business Update Global Market Figures (Jan – Jun 2021) Worldwide 2021 Financial Update From/to ZRH -60.5% Global market -% Europe 2021 Share ZRH 80.4% From/to ZRH -56.1% Global market -% Middle East 2021 Outlook Share ZRH 5.9% North America 2021 From/to ZRH -62.2% Share ZRH 4.0
Slide 41: Alliance Share ZRH
Alliance Share ZRH Business Update Largest Alliances in ZRH (Jan – Jun 2021) Alliance Share ZRH Financial Update Lufthansa 65.6% Group 67.1% 60.4% Star Alliance Outlook 65.8% 4.5% Passenger Growth Oneworld 6.7% -61.6% Lufthansa Group Q&A -63.9% Star Alliance 5.1% Skyteam 5.1% -73.8% Oneworld -60.9%
Slide 42: Traffic Ratios
Traffic Ratios Business Update Seat Load Factor, Passengers per Movement and Take-Off Weight Traffic Ratios ZRH Financial Update 80% 77% 76% 145 75% 75% 74% 74% 73% 73% 71% Passengers per Movement (PAX) Average Take-Off Weight (tons) 70% 130 67% 125 125 Outlook Seat Load Factor 120 119 114 115 112 6
Slide 43: 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 44: 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