Flughafen Zurich Ag · SIX:FHZN
Flughafen Zurich — FY2019 Earnings Presentation
36 slides from Flughafen Zurich's earnings presentation, Mar 10, 2020
Slide 1: Full Year Results 2019 – Presentation to Investors & Analysts
FULL YEAR RESULTS 2019 PRESENTATION TO INVESTORS & ANALYSTS Stephan Widrig Chief Executive Officer Lukas Brosi Chief Financial Officer 1 | March 10, 2020 © Flughafen Zürich AG
Slide 2: Content
CONTENT Business Update Financial Update Outlook Q&A Appendix 2 | March 10, 2020 © Flughafen Zürich AG
Slide 3: Highlights Financial Year 2019
HIGHLIGHTS FINANCIAL YEAR 2019 New passenger record with 31.5 million passengers in 2019 Traffic 70 days with more than 100,000 passengers Positive development of landside retail, high end shopping and gastronomy; Commercial turnover exceeds CHF 600m for the first time Activities Zurich Airport furt
Slide 4: Group Key Financial Figures FY19
GROUP KEY FINANCIAL FIGURES FY19 1,210 m CHF +5.0% Revenue 642 m CHF* +2.1% EBITDA 309 m CHF* +9.0% Profit 360 m CHF CAPEX ZRH *Excluding one-off effects: FY18: Extended sound insulation program CHF −57.6m (pre-tax) 4 | March 10, 2020 © Flughafen Zürich AG
Slide 5: Solid Performance in the Aviation Business
SOLID PERFORMANCE IN THE AVIATION BUSINESS 1.3% rise in passenger volumes to 31.5m − Local passengers of 22.2m (+0.1%) − Transfer passengers of 9.2m (+4.2%) − Transfer share of 29.3% Decrease in air traffic movements to 275,329 (-1.1%) − whereof line & charter movements 243,112 Top 5 Airlines in 201
Slide 6: Regulatory Update: Start of Negotiations for Upcoming Tariff Period
REGULATORY UPDATE START OF NEGOTIATIONS FOR UPCOMING TARIFF PERIOD Zurich Airport just started its negotiations with the airlines’ representatives for the upcoming regulatory period. Amongst others, the following items will be discussed: ▪ New regulated WACC ▪ Expected traffic volumes ▪ Expected CAP
Slide 7: Non-Aviation Business and Strategic Projects
NON-AVIATION BUSINESS AND STRATEGIC PROJECTS Zurich Airport is strengthening its position as the most successful commercial platform in Switzerland Commercial turnover − Airside +0.4% − Landside +2.6% Strategic projects − THE CIRCLE close to completion, pre-letting improved to ~75% − Further diversi
Slide 8: Commercial Business – Development
COMMERCIAL BUSINESS – DEVELOPMENT CHF 593.8 CHF 601.4 CHF 600 CHF 575.5 CHF 541.4 CHF 534.2 CHF 544.6 22.3% CHF 500 21.8% CHF 400 in m CHF CHF 300 20.9% 20.8% 20.8% 20.7% CHF 200 First time more than CHF 600m in turnover CHF 100 in 2019 CHF 0 2014 2015 2016 2017 2018 2019 Turnover Airside (m CHF) Tu
Slide 9: Acquisition of Real Estate Portfolio Directly at Zurich Airport
DIRECTLY AT ZURICH AIRPORT ACQUISITION OF REAL ESTATE PORTFOLIO ▪ In December 2019, Zurich Airport purchased a total of 36 properties within or directly adjacent to the airport perimeter from Priora Suisse AG ▪ Enables clear future development of the areas in the East (cargo), South (hangar building
Slide 10: THE CIRCLE – Soon Completed
THE CIRCLE – SOON COMPLETED Core and shell is completed… …while interior design is ongoing. The tenants will also be invited… …to feel well and comfortable in the Park. After a construction phase of 5 years, THE CIRCLE will be completed this year 10 | March 10, 2020 © Flughafen Zürich AG
Slide 11: Completion of a New Terminal in Brazil: Florianópolis Airport
COMPLETION OF A NEW TERMINAL IN BRAZIL FLORIANÓPOLIS AIRPORT ▪ After a construction period of less than 18 months, the new terminal, apron and taxiway of the airport of Florianópolis have been completed ▪ Already in the first month of operations, the terminal was rated 2nd best in Brazil by passenge
Slide 12: Award of New Greenfield Project in India
AWARD OF NEW GREENFIELD PROJECT IN INDIA INTERNATIONAL ACTIVITIES Delhi Noida International Airport ▪ Flughafen Zürich AG was awarded the concession to design, build and operate the Delhi Noida International Airport in November 2019 New Delhi ▪ Concession length of 40 years ▪ The new airport will be
Slide 13: Content
CONTENT Business Update Financial Update Outlook Q&A Appendix 13 | March 10, 2020 © Flughafen Zürich AG
Slide 14: Strong FY 2019 Revenue and Profit Growth
STRONG FY 2019 REVENUE AND PROFIT GROWTH Revenue EBIT (in million CHF) (in million CHF) Solid passenger growth, With lower amortization and increasing commercial 1,210 depreciation figures, the revenues and full 1,153 adjusted EBIT rose by 5.0% consolidation of the 403 international business led to
Slide 15: Aviation Revenues in Line with Volume Growth
AVIATION REVENUES IN LINE WITH VOLUME GROWTH PAX-related Flight Operations Aviation Fees and other Charges Aviation Revenues (in million CHF) 446 (in million CHF) 443 PAX-related Charges Aviation Fees and other increased by 0.6%, slightly Aviation Revenues are up by 76 77 lower than passenger growth
Slide 16: Non-Aviation Revenues on Track for Growth
NON-AVIATION REVENUES ON TRACK FOR GROWTH Commercial & Parking Revenue from Services Revenue (in million CHF) 253 (in million CHF) 248 Higher revenues from On the back of a higher communication services led average concession rate, to an increase of 1.0% commercial business grew 44 44 disproportiona
Slide 17: Disciplined Expense Management
DISCIPLINED EXPENSE MANAGEMENT Personnel Expenses Police & Security (in million CHF) (in million CHF) 2.3% higher personnel Small increase due to higher expenses driven by the costs for police consolidation of the 211 216 international holdings and a 121 122 small increase in Zurich FY18 FY19 Total
Slide 18: 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 1.8x Operating Cash Flow CHF 1,158m decreased by CHF 26m 538 512 0.9x ROIC Free Cash Flow (incl. noise, in %) (incl. noise, in million CHF) Adjusted for one-
Slide 19: FY 2019 Group CAPEX of CHF 467 Million
FY 2019 GROUP CAPEX OF CHF 467 MILLION Selected Projects THE CIRCLE CHF ~125 million Baggage Handling System CHF ~50 million Refurbishment Runway 28/10 CHF ~23 million Florianópolis CHF ~83 million 19 | March 10, 2020 © Flughafen Zürich AG
Slide 20: Content
CONTENT Business Update Financial Update Outlook Q&A Appendix 20 | March 10, 2020 © Flughafen Zürich AG
Slide 21: Guidance 2020: No Detailed Guidance Because of COVID-19
GUIDANCE 2020 NO DETAILED GUIDANCE BECAUSE OF COVID-19 2019 Actual 2020 Guidance Passengers ZRH 31.5 million No guidance at the moment Revenues CHF 1,210 million No charges reduction assumed in 2020 CHF ~30m additional real estate revenues (THE CIRCLE & Priora) Incremental revenues from internationa
Slide 22: Mid-Term CAPEX Roadmap Outlook
MID-TERM CAPEX ROADMAP OUTLOOK ZURICH AND INTERNATIONAL Zurich Total CAPEX of CHF ~300m p.a. expected in Zurich going forward Maintenance CAPEX accounts for around CHF 100m to 150m p.a. Regulated CAPEX estimated to account for roughly 60% (after THE CIRCLE will be completed) Mid-term CAPEX is subjec
Slide 23: Content
CONTENT Business Update Financial Update Outlook Q&A Appendix 23 | March 10, 2020 © Flughafen Zürich AG
Slide 24: Corporate Calendar & Contact Information
CORPORATE CALENDAR & CONTACT INFORMATION March 26, 2020 Barclays Roadshow (London) March 27, 2020 Kepler Swiss Seminar (Zurich) April 16, 2020 Annual General Meeting (Zurich) June 10, 2020 MainFirst Conference (Interlaken) August 21, 2020 Publication of half year results 2020 Investor Relations Team
Slide 25: Content
CONTENT Business Update Financial Update Outlook Q&A Appendix 25 | March 10, 2020 © Flughafen Zürich AG
Slide 26: Zurich Airport at a Glance
ZURICH AIRPORT AT A GLANCE AVIATION / REGULATED NON-AVIATION / UNREGULATED 2019 revenue of CHF 661 million COMMERCIAL, REAL ESTATE & SERVICES “To satisfy the demand for direct 2019 revenue of CHF 422 million connections to the world’s major cities” Leading commercial center Regulated business with p
Slide 27: Group Key Figures YTD
GROUP KEY FIGURES YTD* Including noise Excluding noise In million CHF Jan – Dec 2019 Jan – Dec 2018 Jan – Dec 2019 Jan – Dec 2018 Aviation revenue 661.5 656.7 648.6 645.0 Non-aviation revenue 548.6 496.2 548.6 496.2 Revenue 1,210.1 1,152.9 1,197.3 1,141.2 EBITDA 641.8 571.0 632.5 620.3 EBITDA margin
Slide 28: Revenue Breakdown: Aviation Business
REVENUE BREAKDOWN: AVIATION BUSINESS In million CHF Jan – Dec 2019 Jan – Dec 2018 Passenger-related operations charges 445.7 443.0 Landing charges 86.9 86.8 Aircraft-related noise charges 12.8 11.6 Emission charges 4.1 4.1 Parking charges 26.6 26.3 Freight revenue 8.4 8.9 Total flight operations cha
Slide 29: Revenue Breakdown: Non-Aviation Business
REVENUE BREAKDOWN: NON-AVIATION BUSINESS In million CHF Jan – Dec 2019 Jan – Dec 2018 Retail, tax & duty-free 114.2 111.4 Food & beverage operations 20.1 18.9 Revenue from multi-story car parks 82.6 81.5 Other commercial revenue 35.7 36.6 Total commercial revenue 252.7 248.3 Revenue from rental and
Slide 30: Operating Expenses Breakdown
OPERATING EXPENSES BREAKDOWN* In million CHF Jan – Dec 2019 Jan – Dec 2018 Personnel expenses 216.3 211.5 Police and security 122.4 121.2 Energy and waste 20.3 21.2 Maintenance and material 40.7 38.8 Other operating expenses 50.8 54.8 Sales, marketing, administration 43.8 45.4 Expenses from construc
Slide 31: Passenger Development
PASSENGER DEVELOPMENT Global Market Figures Jan – Dec 2019 Worldwide 2019 North America 2019 From/to ZRH +1.3% Share ZRH 8.5% Middle East 2019 Global market +3.4% From/to ZRH +2.2% Share ZRH 5.5% Global market +3.4% From/to ZRH +1.2% Global market +3.3% Far East 2019 Share ZRH 7.4% From/to ZRH +5.1%
Slide 32: FY 2019 Alliance Share ZRH
FY 2019 ALLIANCE SHARE ZRH 66.9% Lufthansa Group 68.2% 65.3% Star Alliance 66.0% 5.2% Oneworld Passenger Growth 2019 5.5% Lufthansa Group +3.2% 4.8% Star Alliance +2.3% Skyteam 4.7% Oneworld +6.4% Skyteam 0.0% 3.4% Middle East Carrier Middle East Carrier +1.6% 3.4% +0% +5% +10% 0% 10% 20% 30% 40% 50
Slide 33: Lufthansa Hubs Passenger Development
LUFTHANSA HUBS PASSENGER DEVELOPMENT Jan 2019 – Dec 2019 30% 25% 20% 15% 10% 5% 0% -5% -10% Jan 19 Feb 19 Mar 19 Apr 19 May 19 Jun 19 Jul 19 Aug 19 Sep 19 Oct 19 Nov 19 Dec 19 ZRH BRU FRA VIE MUC DUS Source: ACI & ZRH data warehouse, 2020 33 | March 10, 2020 © Flughafen Zürich AG
Slide 34: Traffic Ratios
TRAFFIC RATIOS 80% 150 78% 78% 135 77% Passengers per Movement (PAX) 77% Average Take-Off Weight (tons) 130 76% 127 75% 76% 124 75% Seat Load Factor 74% 120 117 114 73% 73% 110 109 106 105 102 70% 100 95 96 94 92 90 87 85 85 84 80 81 65% 75 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Seat Load
Slide 35: Passengers and Movements Development
PASSENGERS AND MOVEMENTS DEVELOPMENT STEADY TRAFFIC GROWTH 31.1 31.5 370'000 30'000'000 29.4 27.7 26.3 25.5 350'000 24.9 24.3 24.8 Total Air Traffic Movements (ATM) 25'000'000 22.7 22.9 22.1 21.9 Total Passengers 20.6 20.7 330'000 20'000'000 19.2 17.9 17.9 17.0 17.3 310'000 15'000'000 10'000'000 290
Slide 36: 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