Flughafen Zurich AG · SIX:FHZN

Flughafen Zurich — H1 2014 Earnings Presentation

34 slides from Flughafen Zurich's earnings presentation, Aug 27, 2014

  1. Slide 1: 2014 Half year financial results

    2014 Half year financial results Thomas E. Kern Daniel Schmucki Chief Executive Officer Chief Financial Officer Zurich | Airport | 27.08.2014 | © Flughafen Zürich AG

  2. Slide 2: Schedule

    Schedule 1. Major events HY2014 3 2. Half year key data 4 3. Aviation 8 4. Non-aviation 11 5. OPEX & other key figures 14 6. Business update 19 7. Outlook 24 8. Your questions 27 2 | 27.08.2014 | 2014 Half Year Financial Results © Flughafen Zürich AG

  3. Slide 3: 1. Major events HY2014

    1. Major events HY2014 • Strong operating performance • Favorable passenger mix, strong local demand • Opening Terminal 2 (southern part) • Advisory mandate in Kazakhstan • Inauguration Noise Protection Hangar • Several (re)openings in the commercial center (i.e. H&M, Sprüngli, Fernweh Bar) • «The C

  4. Slide 4: 2. Half year key data

    2. Half year key data 4 | 27.08.2014 | 2014 Half Year Financial Results © Flughafen Zürich AG

  5. Slide 5: Half year traffic figures

    Half year traffic figures Jan-Jun 2014 Jan-Jun 2013 ∆ (in %) in million Local passengers 8.1 7.8 ████ + 4.1% Transfer passengers 3.7 4.0 -6.6% ██████ Transfer share (in %) 31.4 33.8 -7.1% ███████ Total passengers 11.9 11.8 + 0.5% Movements (in 1'000) 128.3 128.5 -0.2% whereof line & charter movement

  6. Slide 6: Financial key figures including noise

    Financial key figures including noise Adjustment 2013 Aviation -CHF 1.5 Mio. Non-aviation +CHF 1.5 Mio. Jan-Jun 2014 Jan-Jun 2013 ∆ (in %) in million CHF Aviation revenue 268.8 286.4 -6.1% ██████ Non-aviation revenue 184.8 183.0 █ + 1.0% Revenue 453.7 469.4 -3.4% ███ EBITDA 240.6 245.3 -1.9% █ EBITD

  7. Slide 7: Financial key figures excluding noise

    Financial key figures excluding noise Adjustment 2013 Aviation -CHF 1.5 Mio. Non-aviation +CHF 1.5 Mio. Jan-Jun 2014 Jan-Jun 2013 ∆ (in %) in million CHF Aviation revenue 263.2 260.8 + 0.9% Non-aviation revenue 184.8 183.0 █ + 1.0% Revenue 448.0 443.8 + 1.0% EBITDA 236.8 221.6 ██████ + 6.9% EBITDA m

  8. Slide 8: 3. Aviation

    3. Aviation 8 | 27.08.2014 | 2014 Half Year Financial Results © Flughafen Zürich AG

  9. Slide 9: Aviation segment revenue breakdown

    Aviation segment revenue breakdown Jan-Jun 2014 Jan-Jun 2013 ∆ (in %) in million CHF Passenger & security charges 176.3 171.7 ██ + 2.6% PRM charges 5.3 5.3 + 0.5% Passenger noise charges 2.0 22.6 n/a Landing charges 42.2 41.5 █ + 1.6% Aircraft noise charges 3.7 3.0 ███████ + 21.6% Emission charges 1

  10. Slide 10: Passenger development

    Passenger development Europe HY 2014 Market share ZRH 76.6% North America HY 2014 from/to ZRH +0.4% Market share ZRH 8.3% global market +5.5% from/to ZRH -2.8% global market +3.1% Middle East HY 2014 Market share ZRH 6.8% from/to ZRH +9.0% global market +9.0% Africa HY 2014 Market share ZRH 2.4% Asi

  11. Slide 11: 4. Non-aviation

    4. Non-aviation 11 | 27.08.2014 | 2014 Half Year Financial Results © Flughafen Zürich AG

  12. Slide 12: Non-aviation segment revenue breakdown

    Non-aviation segment revenue breakdown Jan-Jun 2014 Jan-Jun 2013 ∆ (in %) in million CHF Retail, tax & duty free 45.0 44.6 + 0.9% Food & beverage 7.2 7.3 -0.9% Revenue from car parks 34.9 32.5 ███████ + 7.4% Other commercial revenue 14.6 14.8 -1.7% █ Total commercial revenue 101.6 99.2 ██ + 2.5% Rev

  13. Slide 13: Key figures commercial business

    Key figures commercial business additional space by landside ~18’000m2 end of 2014: ~1’000m2 airside ~14’200m2 13 | 27.08.2014 | 2014 Half Year Financial Results © Flughafen Zürich AG

  14. Slide 14: 5. OPEX & other key figures

    5. OPEX & other key figures 14 | 27.08.2014 | 2014 Half Year Financial Results © Flughafen Zürich AG

  15. Slide 15: Operating expenses

    Operating expenses Jan-Jun 2014 Jan-Jun 2013 ∆ (in %) in million CHF Personnel expenses 88.8 88.9 -0.1% Police and security 59.4 58.4 █ + 1.6% Energy and waste 10.1 13.8 -27.2% ████████ Maintenance and material 18.6 20.1 -7.4% █████ Other operationg expenses 25.9 27.7 -6.7% █████ Sales, marketing, a

  16. Slide 16: Key figures

    Key figures Jan-Jun 2014 Jan-Jun 2013* Jan-Jun 2014 Jan-Jun 2013* in million CHF EBITDA 240.6 245.3 236.8 221.6 EBITDA margin (in %) 53.0 52.3 52.9 49.9 Depreciation and amortisation -112.9 -111.0 -109.1 -107.2 EBIT 127.7 134.3 127.7 114.4 EBIT margin (in %) 28.1 28.6 28.5 25.8 Finance result (net)

  17. Slide 17: Reformed financial reporting

    Reformed financial reporting • Aviation revenues correspond to the regulated business according to the ordinance • Non-aviation revenues correspond to the non-regulated business e.g. catering, fuel charges e.g. check-in, gate and transfer desk P&L aviation charges aviation fees aviation revenue non-

  18. Slide 18: Segment report

    Segment report Invested Capital NOPLAT CHF 1’886 Mio. CHF 1’017 Mio. CHF 73 Mio. CHF 144 Mio. ROIC 3.8% ROIC 13.8% 18 | 27.08.2014 | 2014 Half Year Financial Results © Flughafen Zürich AG

  19. Slide 19: 6. Business update

    6. Business update 19 | 27.08.2014 | 2014 Half Year Financial Results © Flughafen Zürich AG

  20. Slide 20: Investments

    Investments Investments per 30.06.2014 2014 planned investment costs for largest projects (in million CHF) 1 Renovation Runway 14/32 18.8 2 Upgrade Terminal 2 17.7 3 «The Circle» 11.4 Various maintenance 4 9.4 projects in real estate General Wastewater Plan- 5 7.1 Renewal (GEP) Renovation Runway 14/

  21. Slide 21: Update on charges

    Update on charges 2013 22.08. Failure of airport charges negotiation 14.11. Decision of airport charges by FOCA 16.12. Appeal by some users to Federal Administrative Court 2014 13.03. 1st decision by Federal Administrative Court: suspensive effect granted next steps Decision by Federal Administrativ

  22. Slide 22: «The Circle at Zurich Airport»

    «The Circle at Zurich Airport» Health Center Hyatt Regency Convention Center Hyatt Place current pre-lettings 22 | 27.08.2014 | 2014 Half Year Financial Results © Flughafen Zürich AG

  23. Slide 23: International business – status update

    International business – status update Belo Horizonte Intl. Airport, Brazil Kazakhstan Airports Santiago de Chile Intl. Airport, Chile Project information Project information Project information • 10.3 million PAX, 120‘000 ATM • Portfolio of 11 airports • 15 million PAX • Concession until 2043 • Lar

  24. Slide 24: 7. Outlook

    7. Outlook 24 | 27.08.2014 | 2014 Half Year Financial Results © Flughafen Zürich AG

  25. Slide 25: Timetable 2014/2015

    Timetable 2014/2015 Swiss International Air Lines Destination Details Sao Paulo, Miami 11x weekly (7x); 13x weekly (10x) Lugano ~50% higher capacity due to bigger aircraft CDG, TXL, IST, NCE, MXP (among others) Selective reductions on several European services; all LX destinations remain in place Ot

  26. Slide 26: Guidance 2014 – increase of profit guidance

    Guidance 2014 – increase of profit guidance The guidance 2014 is based on the full year results 2013, excl. the one-off effect in the finance result (CHF 82.9 Mio. pre-tax). PAX moderate growth (0-1%) moderate growth (0-1%) Revenue incl. noise * lower slightly higher excl. noise Aviation lower prop.

  27. Slide 27: 8. Your questions

    8. Your questions Roadshow Zurich (Zürcher Kantonalbank) Thursday, 28th of August 2014 Roadshow Frankfurt (Kepler Cheuvreux) Monday, 1st of September 2014 Roadshow London (Royal Bank of Canada) Friday, 12th of September 2014 Publication Full Year Results 2014 Tuesday, 17th of March 2015 (tbc) Genera

  28. Slide 28: IR contacts

    IR contacts Lukas Brosi Head Financial Services +41 (0)43 816 72 91 investor.relations@zurich-airport.com Stefan Weber Investor Relations & Treasury +41 (0)43 816 27 15 investor.relations@zurich-airport.com 28 | 27.08.2014 | 2014 Half Year Financial Results © Flughafen Zürich AG

  29. Slide 29: Disclaimer

    Disclaimer 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 should be placed on, the fairnes

  30. Slide 30: YTD: traffic & commercial figures

    YTD: traffic & commercial figures Traffic figures Jan-Jul 2014 Jan-Jul 2013 ∆ (in %) in million Local passengers 9.9 9.5 ████ + 4.3% Transfer passengers 4.4 4.7 -6.4% ██████ Transfer share (in %) 30.9 33.2 -6.9% ██████ Total passengers 14.4 14.3 + 0.7% Movements (in 1'000) 152.8 153.2 -0.3% whereof

  31. Slide 31: Financial liabilities (per 30.06.2014)

    Financial liabilities (per 30.06.2014) 31 | 27.08.2014 | 2014 Half Year Financial Results © Flughafen Zürich AG

  32. Slide 32: Customer segments ZRH HY2014

    Customer segments ZRH HY2014 passenger growth vs. previous year 32 | 27.08.2014 | 2014 Half Year Financial Results © Flughafen Zürich AG

  33. Slide 33: Star Alliance hubs (Jun 2012 – Jun 2014)

    Star Alliance hubs (Jun 2012 – Jun 2014) 33 | 27.08.2014 | 2014 Half Year Financial Results © Flughafen Zürich AG

  34. Slide 34: Key indicators

    Key indicators Passengers per Movement (PAX) Seat Load Factor Average Take-Off Weight (tons) 100% 130 Seat Load Factor Passengers per Movement Average Take-Off Weight 120 110 100 75% 90 80 70 50% 60 50 40 25% 30 20 10 0% - HY/2005 HY/2006 HY/2007 HY/2008 HY/2009 HY/2010 HY/2011 HY/2012 HY/2013 HY/20

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