Fraport Ag · XETR:FRA
Fraport — Q2 2021 Earnings Presentation
36 slides from Fraport's earnings presentation, August 2021
Slide 1: Investor Presentation 2Q21
Investor Presentation 2Q21 Prof. Dr. Zieschang I CFO
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: Business Update: Latest Trends
Business Update FRA Prelim. JULY 2021 102% of 2019 Cont Destintations offered @ ~70% Seat Load Factor Latest Trends 75% of 2019 Intercont Destinations offered @ ~60% Seat Load Factor Frankfurt Passengers per day / 7-day average 2021 2020 2019 250,000 200,000 CW 30: 150,000 -59 % -54% July 2021: -73
Slide 4: Business Update: Accelerating Momentum across International Holdings
Business Update Accelerating Momentum also across International Holdings Latest Trends Lima ∆ 2019 ∆ 2020 Greece ∆ 2019 ∆ 2020 Antalya ∆ 2019 ∆ 2020 CW 27 60.8 (-69%) (n.a.2) CW 27 563.1 (-43%)(+313%) CW 27 686.6 (-34%)(>999%) Int. PAX (05.-11.) 150.8 (-41%)(>999%) Int. PAX (05.-11.) 132.1 (-28%) (+
Slide 5: Business Update: Passenger Review
Business Update Passenger Review 6M Passenger Performances 2Q Passenger Performances Sequential 2Q Improvement -47% -26% +38% -17% +15% -65% +69% +79% +61% vs.20 >100 >100 >100 >100 >100 >100 >100 >100 +78% -81% -67% -78% -58% -80% -92% -68% -15% -20% -73% vs.19 vs.19 -79% -64% -77% -60% -81% -90% -
Slide 6: Business Update: Frankfurt Restructuring Progress
Business Update Frankfurt Restructuring Progress 107% 4,000 75% 3,009 4,276 Employee Employee Employee Reduction Reduction Reduction Target 1 Achievement Achievement Mar 31, 2021 June 30, 2021 6 2Q21 Investor Presentation l August 2021 1 Measured against 20,792 Employees as per YE 2019
Slide 7: Business Update: 2Q21 COVID-19 Compensations
Business Update 2Q21 COVID-19 Compensations Greece Relief package passed by Greek parliament in total amount of up to €177.8mn Relief via no-payment of concession charges now and in the future (fixed and variable) = no cash inflow to Fraport Greece, but also no cash outflows for the concessions
Slide 8: 6M21 Financials
6M21 Financials Positive International EBITDA and Frankfurt Extras1 Total Revenue2 +22% EUR mn [-15%] Total Revenues Up due to EUR 303mn Extras 1 1,018 838 1 303 FRA Segments EUR 747mn [530mn excl. Extras] / 715 Internationals EUR 271mn2 [185mn excl. Extras²] (FRA Segments PY: EUR 629mn) / (Internat
Slide 9: 2Q21 Financials
2Q21 Financials Positive underlying International & Frankfurt EBITDA + Extras1 Total Revenue2 >100% EUR mn [+82%] 640 1 Total Revenues Up due to Traffic Increase & Extras 1 233 FRA Segments EUR 461mn [302mn excl. Extras] / 224 407 Internationals EUR 179mn2 [105mn excl. Extras²] (FRA Segments PY: EUR
Slide 10: 6M21 Cash Flow
6M21 Cash Flow FCF negative due to Severance Payments and Capex in € mil. -2 -19 +8 -37 6,326 -151 -7 -273 -23 -71 -195 -22 5,534 Free Cash Flow 6M21: € -755mn Net debt Brazil Other Fixed IAS 23 IFRS Divs from Other Net debt OCF Greece Lima FRA YE 2020 capex capex concession borrowing 16 at equity J
Slide 11: Financials: Cash and Credit Lines
Financials All-in Cash and Credit Lines cross EUR 4.4bn1 Cash & Financial Assets (Liquidity) Committed Credit Lines & Finance in5,000 € mil. EUR +2,741mn 4,448 4,500 4,378 4,000 3,500 2,973 3,110 3,000 3,478 3,467 2,500 2,236 2,149 2,000 1,707 2,214 1,500 2,020 1,342 1,569 1,000 1,156 500 Dec. 31, 2
Slide 12: Aviation Segment
Aviation Segment Cost Control and Extras dampen COVID-19 Impact EUR mil. 6M21 6M20 6M19 2Q21 2Q20 2Q19 EBITDA positively impacted by EUR 58mn Revenue 254 252 495 115 63 270 Security Settlement and EUR 160mn State Charges 118 176 389 72 33 215 Compensation Security 120 59 81 34 23 42 Clear EUR 96
Slide 13: Retail & Real Estate Segment
Retail & Real Estate Segment Resilient Real Estate Business, All time High Retail per Passenger EUR mil. 6M21 6M20 6M19 2Q21 2Q20 2Q19 Segment revenues clearly outperform Revenue 139 158 241 76 56 125 passenger development Retail 25 48 104 14 10 56 Resilient Real Estate business on Pre-Corona Re
Slide 14: Ground Handling Segment
Ground Handling Segment Clear Cost Focus, 2Q Cost Savings reach Low EUR mil. 6M21 6M20 6M19 2Q21 2Q20 2Q19 Disproportionately low revenue decline Revenue 152 182 345 85 44 184 compared to pure passenger development, Ground Hand. 90 98 174 50 28 93 a.o., due to MTOW related charges and lower declin
Slide 15: Frankfurt Segments
3 Frankfurt Segments Cost Savings led to flat EBITDA despite low Passenger Volumes EUR mn Total Opex Staff Cost EBITDA EUR -236mn EUR -160mn EUR -134mn [-352mn] 776 642 454 540 360 342 382 394 370 294 235 208 272 270 270 220 214 197 191 146 149 145 144 76 -13 17 -89 2 3 1 1Q 2Q 6M 1Q 2Q 6M 1Q 2Q 6M
Slide 16: Majority International Holdings
Majority International Holdings Positive EUR c.107mn EBITDA thanks to Countermeasures 1Q21 EBITDA 2Q21 EBITDA 71 16 14 12 12 9 8 8 4 2 2 1 0 0 -1 0 Lima Brasil Greece 1 USA2 Twin Star Slovenija 3 -4 -8 -12 -11 Aggregate EBITDA of EUR 107mn3 1 Fraport Greece 2Q EBITDA ex. Extras: EUR +2mn 2 Fraport U
Slide 17: International Activities & Services Segment
International Activities & Services Segment Cost Reduction offset Revenue Decline = Positive EBITDA EUR mil. 6M21 6M20 6M19 2Q21 2Q20 2Q19 Revenue excl. IFRIC 12 down by more than Revenue 266 319 702 150 87 400 50% vs. 6M19 IFRIC 12 88 117 269 48 49 144 Clear opex reduction in Frankfurt “Service
Slide 18: Updated Group Outlook
Updated Group Outlook Despite low near-term Visibility positive Group Result possible 19FY Results 20FY Results 21FY Outlook Passengers FRA 70.6 mil. 18.8 mil. Below 20 to ~25 mil. Revenue €3.71bn €1.68 bn €~2 bn Adj. value at €+48 mil. €~300 to ~450 mil. + €160 mil. EBITDA €1,180 mil. reported at €
Slide 19: Liquidity Cushion Strengthened despite Declining Interest Rates
Trotz Krise: Liquiditätspolster signifikant gestärkt bei rückläufigen durchschnittlichen Zinsen Mio EUR +1,396 Mio EUR % 3500 6 2,973 3,102 3000 5 2500 2,236 2,149 4 2000 1,706 3 1500 2.4 2.3 2.1 2.1 2 Investor Presentation l August 2021 2 1.4 1.4 Appendix 1000 1.3 1.3 1.3 500 1 0 0 Prof. Dr. Matthi
Slide 20: Group P+L
Appendix Group P+L € million 6M 2021 6M 2020 Q2 2021 Q2 2020 Revenue 810.9 910.6 425.9 249.5 Other internal work capitalized 19.1 18.5 9.6 8.9 Other operating income 276.0 26.0 252.5 14.7 Total revenue 1,106.0 955.1 688.0 273.1 Cost of materials –298.0 –366.3 –160.2 –144.0 Personnel expenses –411.8
Slide 21: Cash Flow
Appendix Cash Flow € million 6M 2021 6M 2020 Q2 2021 Q2 2020 € million 6M 2021 6M 2020 Q2 2021 Q2 2020 Cash flow used in/from operating activities Result attributable to shareholders of –194.6 –96.6 19.7 –188.7 Fraport AG 20.4 –211.3 85.3 –182.3 Investments in airport operating projects –126.5 –156.
Slide 22: Financial Position
Appendix Financial Position Assets Liabilities and equity in € million June 30, 2021 Dec 31, 2020 in € million June 30, 2021 Dec 31, 2020 Non-current assets Shareholders’ equity Goodwill 19.3 19.3 Issued capital 923.9 923.9 Investments in airport operating projects 3,332.9 3,221.2 Capital reserve 59
Slide 23: Overview Compensation Effects and Security Settlement
Appendix Overview Compensation Effects and Security Settlement Segments / P+L lines Aviation 1Q 21 EUR +57.8mn Revenue: Settlement Security Dispute 2Q 21 EUR +159.8mn Other Income: Compensation for Operational Losses during 1st lockdown period 2020 International Activities / Fraport USA 1Q 21 EUR +1
Slide 24: Repayment Profile
Appendix Repayment Profile 10,000 in € mil. 9,793 9,000 8,000 €8.4 bn Fraport AG debt 7,000 €1.08 bn Greece debt Average debt condition 6,000 ~ 2.1 % interest rate € 298 mn Brazil debt 5,000 4,448 € 24 mn Lima debt 4,000 3,467 3,000 3,467 2,000 8 12 31 11 208 8 64 65 27 39 10 14 15 1,000 37 75 14 58
Slide 25: International Holdings 6M21
Appendix International Holdings Except for Ljubljana all International Holdings with positive 6M21 EBITDA Fully consolidated Group companies € million Share in % Revenue1) EBITDA EBIT Result 6M21 6M20 Δ% 6M21 6M20 Δ% 6M21 6M20 Δ% 6M21 6M20 Δ% Fraport USA 100 24.9 21.8 +14.2 22.0 8.8 >100 4.6 –13.8 –
Slide 26: International Holdings 2Q21
Appendix International Holdings All International Holdings with positive 2Q21 EBITDA Fully consolidated Group companies € million Share in % Revenue1) EBITDA EBIT Result 2Q21 2Q20 Δ% 2Q21 2Q20 Δ% 2Q21 2Q20 Δ% 2Q21 2Q20 Δ% Fraport USA 100 14.5 2.7 >100 8.3 –2.6 – –0.3 –13.9 – –2.1 –15.5 – Fraport Slo
Slide 27: Segment International Activities: EBITDA Break Even Levels and 21FY Outlook
Appendix – Segment International Activities NEW EBITDA Break Even Levels and 21FY Outlook 2020 Passenger break 2020 Passenger As % of 19FY 21FY Passenger Expectation1 even level per day break even level Greece ~20k ~7.5mn ~25% About 50% of 19FY Brazil ~15k ~5.5mn ~35% More than 50% of 19FY Lima ~7k
Slide 28: Capex & Cash Flow Outlook 21FY
Appendix Capex & Cash Flow Outlook 21FY Frankfurt T3 Capex: Greece Capex: €~550mn Other Capex: €~50mn €~250mn FCF: FCF: positive negative Lima Brazil Capex: Capex: €200-300mn €~50mn FCF: FCF: negative negative Total Capex: EUR c.1.1-1.2bn + Fixed Concession Payments & Borrowing Cost: EUR c.50mn Addi
Slide 29: On our Way to The New Fraport
Appendix On our Way to “The New Fraport” The New Fraport Operational Excellence Strong Cost Control Greener 29 2Q21 Investor Presentation l August 2021
Slide 30: The New Fraport: Operational Excellence
Appendix – On our Way to “The New Fraport” Operational Excellence – “Benchmarking, digitization and sustainability” is our mission to improve our business offering and enhance our traveling experience in the long term – Restructuring of security business for smooth passenger processes. Basic agreeme
Slide 31: The New Fraport: Strong Cost Control
Appendix – On our Way to “The New Fraport” Strong Cost Control – Cultural change accelerated due to COVID-19 – Complexity and inefficiencies taken out – Reduction of Frankfurt labor force by ~4,000 employees (as of 22FY) – All non-essential cost items in focus – All capex projects under review – Tar
Slide 32: The New Fraport: Greener
Appendix – On our Way to “The New Fraport” Greener – Reduction of CO2 emissions is strategic priority – New photovoltaic plants commissioned and to be further rolled-out – CO2 neutrality to be achieved by wind park project – Roll out of hybrid, battery electric and hydrogen fleet – Continued efficie
Slide 33: Overview of current Travel Restrictions
Appendix Overview of current Travel Restrictions1 Partly restricted Partly restricted Partly restricted Immigration from, a.o., EU, Immigration possible for EU Immigration for foreigners Brazil, China, India, UK & citizens restricted (except: visa South Africs restricted applications for direc
Slide 34: 2Q21 Investor Presentation l August 2021
34 2Q21 Investor Presentation l August 2021
Slide 35: Dates: Financial and Traffic Calendar
Appendix Dates 2021 Financial Calendar Mar 16, 2021 May 11, 2021 Jun 1, 2020 Aug 3, 2020 Nov 9, 2020 FY 3M AGM 6M 9M 2020 Traffic Calendar 2021 Apr12, Apr 15,2019 2021 May 14, 2021 Jun 14, 2021 Jul 13, 2021 Aug 12, 2021 3M 4M 5M 6M 7M Sep 13, 2021 Oct 13, 2021 Nov 11, 2021 Dec 13, 2021 Jan 17, 2022
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 2Q21 Investor Presentation l August 2021