Flughafen Zurich Ag · SIX:FHZN
Flughafen Zurich — FY2018 Earnings Presentation
34 slides from Flughafen Zurich's earnings presentation, Mar 12, 2019
Slide 1: Full Year Results 2018 Presentation to Investors & Analysts
FULL YEAR RESULTS 2018 PRESENTATION TO INVESTORS & ANALYSTS Stephan Widrig Chief Executive Officer Lukas Brosi Chief Financial Officer 1 | March 12, 2019 © Flughafen Zürich AG
Slide 2: Content
CONTENT Business Update Financial Update Outlook Q&A Appendix 2 | March 12, 2019 © Flughafen Zürich AG
Slide 3: Highlights Financial Year 2018
HIGHLIGHTS FINANCIAL YEAR 2018 First time more than 30 million passengers per year Traffic 63 days with more than 100,000 passengers New Airlines & Expansion of long haul network Destinations Swiss International Airlines strengthened its European network Commercial Strong year in watches, jewelry an
Slide 4: Group Key Figures FY18 (excl. one-off effects)
GROUP KEY FIGURES FY18 (EXCL. ONE-OFF EFFECTS) 31.1 million +5.8% Total Passengers 1,153 m CHF +11.2% Revenue 629 m CHF* +8.6% EBITDA 284 m CHF* +13.3% Profit *Excluding one-off effects: 290 m CHF FY17: Swissair liquidation dividend CHF +4.8m (pre-tax) and Bangalore divestment CHF +36.3m (pre-tax) F
Slide 5: Strong Performance in Aviation Business
STRONG PERFORMANCE IN AVIATION BUSINESS 5.8% rise in passenger volumes to 31.1m Local passengers of 22.2m (+5.6%) Transfer passengers of 8.8m (+6.4%) Transfer share of 28.4% Rise in air traffic movements to 278,458 (+3.0%) whereof line & charter movements 244,496 Top 5 Airlines in 2018 Swiss
Slide 6: Non-Aviation Business and Strategic Projects
NON-AVIATION BUSINESS AND STRATEGIC PROJECTS New commercial contracts increase revenues Commercial turnover Airside +5.6% Landside -0.1% Strategic projects THE CIRCLE made clearly visible progress; on time and on budget First year of operations in Florianópolis brings positive effect 6 | Mar
Slide 7: Commercial Business – Development
COMMERCIAL BUSINESS – DEVELOPMENT CHF 593.8 CHF 600 CHF 575.5 CHF 537.6 CHF 541.4 CHF 534.2 CHF 544.6 CHF 500 21.8% CHF 400 in m CHF CHF 300 20.9% 20.8% 20.8% 20.7% CHF 200 CHF 100 20.0% CHF 0 2013 2014 2015 2016 2017 2018 Turnover Airside (m CHF) Turnover Landside (m CHF) Average Concession Rate To
Slide 8: FOCA Revision of the Ordinance on Airport Charges
FOCA REVISION OF THE ORDINANCE ON AIRPORT CHARGES The Federal Office of Civil Aviation (FOCA) has completed the stakeholder involvement process for the Ordinance on Airport Charges (OAC) in December 2018. Key Changes in the Draft Key Currently Proposed by FOCA Outcome / Effect Component Transfer Max
Slide 9: THE CIRCLE – Update
THE CIRCLE – UPDATE Key Facts Total Investment CHF 1.2 billion Total Area 180,000m2 Zurich Airport Share 51% Opening 2020 Pre-letting Rate >60% 9 | March 12, 2019 © Flughafen Zürich AG
Slide 10: International Activities
INTERNATIONAL ACTIVITIES Current Portfolio Progress Update Curaçao Latin America O&M, Shareholding 6 4 Successful operational Airports Countries takeover of Florianópolis Airport in January 2018 Strong Infrastruc- Expansion works in Local ture friendly Florianópolis proceeding as Partners Jurisdicti
Slide 11: Content
CONTENT Business Update Financial Update Outlook Q&A Appendix 11 | March 12, 2019 © Flughafen Zürich AG
Slide 12: Strong FY 2018 Revenue and Profit Growth
STRONG FY 2018 REVENUE AND PROFIT GROWTH Revenue EBIT (in million CHF) (in million CHF) Strong passenger growth, 1,153 1,153 With stable amortization and increasing commercial depreciation figures, the revenues and full adjusted EBIT rose by 14.6% 384 consolidation of the 1,037 1,112 1,112 internati
Slide 13: Aviation Revenues in Line with Volume Growth
AVIATION REVENUES IN LINE WITH VOLUME GROWTH PAX-related Flight Operations Aviation Fees and other 443 Charges Aviation Revenues (in million CHF) 419 (in million CHF) PAX-related Charges Aviation Fees and other increased by 5.7%, in line Aviation Revenues are up by 73 76 with passenger growth 3.8%,
Slide 14: Non-Aviation Revenues on Track for Growth
NON-AVIATION REVENUES ON TRACK FOR GROWTH Commercial & Parking Revenue from Services Revenue (in million CHF) 248 (in million CHF) 234 Higher revenues from VIP- On the back of a higher Services led to an increase average concession rate, of 5.2% Commercial Revenue grew 42 44 disproportionately by 8.
Slide 15: Disciplined Expense Management
DISCIPLINED EXPENSE MANAGEMENT Personnel Expenses Police & Security (in million CHF) (in million CHF) 5.0% higher personnel Small increase due to expenses driven by the consolidation of Florianópolis consolidation of our 201 211 211 In ZRH, costs are marginally international holdings and a lower tha
Slide 16: Financial Key Figures
FINANCIAL KEY FIGURES Net Financial Debt / EBITDA Operating Cash Flow (excl. noise) (incl. noise, in million CHF) Net Financial Debt stands at 0.9x 0.9x Operating Cash Flow CHF 580 m increased by CHF 8 m 530 538 ROIC Free Cash Flow (incl. noise, in %) (incl. noise, in million CHF) Adjusted for one-o
Slide 17: FY 2018 Capex of CHF 290 Million
FY 2018 CAPEX OF CHF 290 MILLION Selected Projects THE CIRCLE CHF ~95 million Baggage Handling System CHF ~33 million Rapid Exit & Multiple Entry CHF ~18 million Additional Stands CHF ~17 million 17 | March 12, 2019 © Flughafen Zürich AG
Slide 18: Content
CONTENT Business Update Financial Update Outlook Q&A Appendix 18 | March 12, 2019 © Flughafen Zürich AG
Slide 19: Timetable Highlights
TIMETABLE HIGHLIGHTS Upcoming Summer Timetable 2019 Danzig (Poland) Now 4 flights per week Tirana (Albania) Now 2 flights per week Kalamata (Greece) Now 2 flights per week (seasonal) Hongkong New A350-1000 with increased capacity Palma de Mallorca Now 5 flights per week Tirana Now 2 flights per week
Slide 20: Guidance for Full Year 2019
GUIDANCE FOR FULL YEAR 2019 2018 Actual1 2019 Guidance Passengers 31.1 million Approx. 3% higher Revenues CHF 1,153 million Aviation revenues slightly higher (incl. Concession Accounting) Slightly higher commercial & real estate revenues Revenues from international business CHF ~45−50m Concession CH
Slide 21: Content
CONTENT Business Update Financial Update Outlook Q&A Appendix 21 | March 12, 2019 © Flughafen Zürich AG
Slide 22: Corporate Calendar & Contact Information
CORPORATE CALENDAR & CONTACT INFORMATION March 20, 2019 HSBC Roadshow (London) March 21, 2019 Kepler Swiss Seminar (Zurich) April 2, 2019 Vontobel Roadshow (Frankfurt) April 25, 2019 Annual General Meeting (Zurich) May 17, 2019 Barclays Conference (Paris) May 22, 2019 MainFirst Roadshow (Dublin) Jun
Slide 23: Content
CONTENT Business Update Financial Update Outlook Q&A Appendix 23 | March 12, 2019 © Flughafen Zürich AG
Slide 24: Zurich Airport at a Glance
ZURICH AIRPORT AT A GLANCE AVIATION / REGULATED NON-AVIATION / UNREGULATED 2018 revenue of CHF 657 million COMMERCIAL, REAL ESTATE & SERVICES “To satisfy the demand for direct 2018 revenue of CHF 413 million connections to the world’s major cities” Leading commercial center Regulated business with p
Slide 25: Group Key Figures YTD
GROUP KEY FIGURES YTD* Including noise Excluding noise In million CHF Jan – Dec 2018 Jan – Dec 2017 Jan – Dec 2018 Jan – Dec 2017 Aviation revenue 656.7 624.2 645.0 612.7 Non-aviation revenue 496.2 412.9 496.2 412.9 Revenue 1,152.9 1,037.1 1,141.2 1,025.6 EBITDA 571.0 583.6 620.3 575.6 EBITDA margin
Slide 26: Revenue Breakdown: Aviation Business
REVENUE BREAKDOWN: AVIATION BUSINESS In million CHF Jan – Dec 2018 Jan – Dec 2017 Passenger-related operations charges 443.0 419.3 Landing charges 86.8 82.6 Aircraft-related noise charges 11.6 11.6 Emission charges 4.1 3.8 Parking charges 26.3 25.1 Freight revenue 8.9 8.7 Total flight operations cha
Slide 27: Revenue Breakdown: Non-Aviation Business
REVENUE BREAKDOWN: NON-AVIATION BUSINESS In million CHF Jan – Dec 2018 Jan – Dec 2017 Retail, tax & duty-free 111.4 102.1 Food & beverage operations 18.9 17.5 Revenue from multi-story car parks 81.5 79.4 Other commercial revenue 36.6 35.2 Total commercial revenue 248.3 234.2 Revenue from rental and
Slide 28: Operating Expenses Breakdown
OPERATING EXPENSES BREAKDOWN In million CHF Jan – Dec 2018 Jan – Dec 2017 Personnel expenses 211.5 201.5 Police and security 121.2 119.6 Energy and waste 21.2 18.8 Maintenance and material 38.8 38.0 Other operating expenses 54.8 51.6 Sales, marketing, administration 45.4 38.5 Expenses from construct
Slide 29: Passenger Development
PASSENGER DEVELOPMENT Global Market Figures Jan – Dec 2018 Worldwide 2018 From/to ZRH +5.8% Global market +5.9% North America 2018 Share ZRH 8.5% Middle East 2018 From/to ZRH +10.5% Share ZRH 5.5% Global market +5.1% From/to ZRH +6.5% Global market +2.1% Far East 2018 Share ZRH 7.1% Latin America 20
Slide 30: FY 2018 Alliance Share ZRH
FY 2018 ALLIANCE SHARE ZRH 64.8% Lufthansa Group 66.9% 64.4% Star Alliance 65.3% 7.7% Oneworld YTD Passenger Growth 5.2% Lufthansa Group +9.3% 4.8% Star Alliance +7.3% Skyteam 4.8% -27.8% Oneworld Skyteam +4.1% 3.3% Middle East Carrier Middle East Carrier +9.9% 3.4% -30% -20% -10% +0% +10% +20% 0% 1
Slide 31: Lufthansa Hubs Passenger Development
LUFTHANSA HUBS PASSENGER DEVELOPMENT 30% Jan 2018 – Dec 2018 25% 20% 15% 10% 5% 0% -5% -10% -15% Jan 18 Feb 18 Mar 18 Apr 18 May 18 Jun 18 Jul 18 Aug 18 Sep 18 Oct 18 Nov 18 Dec 18 ZRH BRU FRA VIE MUC DUS Source: ACI & ZRH data warehouse, 2018 31 | March 12, 2019 © Flughafen Zürich AG
Slide 32: Traffic Ratios
TRAFFIC RATIOS 80% 150 78% 135 77% Passengers per Movement (PAX) 77% Average Take-Off Weight (tons) 76% 127 75% 76% 124 75% Seat Load Factor 74% 120 117 114 73% 73% 110 109 106 72% 105 102 70% 100 98 95 94 92 90 87 85 85 84 80 80 81 65% 75 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Seat Load
Slide 33: Passengers and Movements Development
PASSENGERS AND MOVEMENTS DEVELOPMENT STEADY TRAFFIC GROWTH 31.1 30'000'000 29.4 370'000 27.7 26.3 25.5 24.8 24.9 350'000 25'000'000 24.3 Total Air Traffic Movements (ATM) 22.7 22.9 22.1 21.9 20.6 20.7 Total Passengers 20'000'000 19.2 330'000 17.9 17.9 17.0 17.3 15'000'000 310'000 10'000'000 290'000
Slide 34: Disclaimer: Forward-Looking Statements
DISCLAIMER: FORWARD-LOOKING STATEMENTS This document has been prepared by Flughafen Zürich AG 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 shou