Flughafen Zurich AG · SIX:FHZN
Flughafen Zurich — FY2008 Earnings Presentation
50 slides from Flughafen Zurich's earnings presentation, Mar 19, 2009
Slide 1: Analysts' Presentation – 2008 Financial Results
Analysts’ Presentation – 2008 Financial Results Thomas E. Kern Daniel Schmucki Chief Executive Officer Chief Financial Officer Zurich 1 l 19.03.2009 Airport l 19.03.2009 l Analysts‘ Presentation © Unique (Flughafen Zürich AG)
Slide 2: Schedule
Schedule 1. 2008 Highlights 2. Full Year Key Data 3. Aviation 4. Non Aviation 5. Result / Balance Sheet 6. Other Key Topics 7. Outlook 2009 8. Your Questions 2 l 19.03.2009 l Analysts‘ Presentation © Unique (Flughafen Zürich AG)
Slide 3: 1. 2008 Highlights
1. 2008 Highlights Development Aviation Segment • Strong traffic increase in both, local and transfer passengers • Reconstruction of runway 16 / 34 successfully completed • Successful implementation of Schengen infrastructure • Several quality awards confirm the high quality standards of Zurich Airp
Slide 4: 2008 Highlights (continued)
2008 Highlights (continued) Development Non Aviation Segment • Strong increase in commercial and real estate revenue; higher spend per PAX • Expansion of Airport Shopping successfully completed in April • Opening of the new Airport Hotel • Several new lettings: • McKinsey Switzerland (2 ½ top floors
Slide 5: 2008 Highlights (continued)
2008 Highlights (continued) • Opening Bengaluru International Airport • Federal Court decision on 18 pilot cases and beginning of handling of formal expropriation payments • Economic downturn has impacted especially local traffic and commercial airside revenue, starting 4th quarter 2008 5 l 19.03.20
Slide 6: 2. Full Year Key Data
2. Full Year Key Data 6 l 19.03.2009 l Analysts‘ Presentation © Unique (Flughafen Zürich AG)
Slide 7: 2008 Traffic
2008 Traffic 2008 2007 Delta in % Local passengers 14'263'306 13'643'601 4.5% Transfer passengers 7'759'300 6'989'922 11.0% Transfer share 35.2% 33.8% Total passengers 22'099'233 20'739'113 6.6% Movements 274'991 268'476 2.4% whereof Line & Charter movements 231'775 223'745 3.6% Cargo (in tons) 387'
Slide 8: 2008 Financial Results
2008 Financial Results in million CHF 2008 2007 Delta in % Revenues 855.1 802.9 6.5% Aviation revenue 525.7 496.0 6.0% Non-Aviation revenue 329.4 306.9 7.3% EBITDA 420.2 410.1 2.5% EBITDA margin 49.1% 51.1% Net profit 121.3 130.7 -7.2% Net financial debt (IFRS) 1'019.0 918.8 10.9% Cash flow from ope
Slide 9: 2008 Financial Results (without noise impact)
2008 Financial Results (without noise impact) 2008 2007 in million CHF Delta in % w/o noise w/o noise Revenues 813.0 748.6 8.6% Aviation revenue 479.3 437.7 9.5% Non-Aviation revenue 333.7 310.9 7.4% EBITDA 378.1 355.8 6.3% EBITDA margin 46.5% 47.5% Net profit 100.6 83.5 20.5% Net financial debt (IF
Slide 10: Revenue Split
Revenue Split Total revenue: 855.1 Mio CHF (PY: 802.9) EBITDA: 420.2 Mio CHF (410.1) Net profit: 121.3 Mio CHF (130.7) 39% Aviation revenue: 525.7 Mio CHF 61% Non Aviation revenue: 329.4 Mio CHF (496.0) (306.9) 1% 1% 4% 15% 5% 10% 2% 1% 20% 35% 34% 1% 27% 35% 9% Passengers Charges Security charges N
Slide 11: 3. Aviation
3. Aviation 11 l 19.03.2009 l Analysts‘ Presentation © Unique (Flughafen Zürich AG)
Slide 12: Aviation Segment Revenue Breakdown
Aviation Segment Revenue Breakdown • Over proportional growth of transfer passengers, who pay in million CHF 2008 2007 Delta in % lower charges Passenger charges 176.8 167.9 5.3% • Increase of security charges Security charges 142.1 117.9 20.5% as per 01.07.07 (full year Landing charges 79.6 74.6 6.
Slide 13: ZRH Passenger Market Share & Growth
ZRH Passenger Market Share & Growth North America Europe 7.4% (PY:8.1%) 77.2% (PY:77.1%) Asia 10.4% (PY:9.9%) Latin America Africa 1.1% (PY:1.1%) 3.9% (PY:3.9%) - market share - previous year market share (in brackets) average growth: 6.6% 13 l 19.03.2009 l Analysts‘ Presentation © Unique (Flughafen
Slide 14: Passengers by Customer Segments
Passengers by Customer Segments Star Alliance 2007 70.2% 2008 Low Cost Carrier 10.2% Star Alliance Sky Team 5.0% Low Cost Carrier Sky Team OneWorld 4.9% OneWorld Charter Charter 3.7% -30.0% -25.0% -20.0% -15.0% -10.0% -5.0% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 0.0% 20.0% 40.0% 60.0% 80.0% 100.0%
Slide 15: Key Indicators
Key Indicators Passengers per Movement Seat Load Factor Average Take-Off Weight 72% 100 Seat Load factor 71% Passengers per Movement 95 70% Average Take-Off Weight 90 69% 85 68% 80 67% 66% 75 65% 70 64% 65 63% 60 62% 55 61% 60% 50 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 15 l 19.03.2009 l A
Slide 16: 4. Non Aviation
4. Non Aviation 16 l 19.03.2009 l Analysts‘ Presentation © Unique (Flughafen Zürich AG)
Slide 17: Non Aviation Segment Revenue Breakdown
Non Aviation Segment Revenue Breakdown • Revenue from rents & leases positively influenced by new in million CHF 2008 2007 Delta in % lettings & reduced vacancy Real estate 117.0 107.1 9.2% rate of 3.8% Rents and leases 82.1 78.1 5.2% • Weather conditions, high Utilities 25.5 20.3 25.8% commodity pr
Slide 18: Real estate: Development of Revenue
Real estate: Development of Revenue in million CHF in % 140 8% Real Estate Revenues Ø vacancy in % 9.3 8.8 others others 117.0 7% 120 112.1 110.7 110.6 105.2 106.2 107.1 6% 100 95.8 5.9% 25.5 5% 5.4% utilities 80 20.3 utilities 4.2% 4% 3.3% 60 3.8% 4.0% 3.8% 3.3% 3% 40 2% 82.1 20 rents & 78.1 leases
Slide 19: Commercial: Gross Income Shop-Operators
Commercial: Gross Income Shop-Operators in million CHF in CHF 600 45 Passenger spends spends per dep. pax 43.5 42.0 500 481.1 40.6 435.1 39.1 400 390.8 40 349.8 346.3 296.4 305.1 300 286.9 35.4 200 35 33.7 33.0 33.0 100 0 30 2001 2002 2003 2004 2005 2006 2007 2008 19 l 19.03.2009 l Analysts‘ Present
Slide 20: 5. Result / Balance Sheet
5. Result / Balance Sheet 20 l 19.03.2009 l Analysts‘ Presentation © Unique (Flughafen Zürich AG)
Slide 21: Operating Expenses
Operating Expenses • Decrease in personnel costs mainly due to outsourcing of in million CHF 2008 2007 Delta in % emergency service and fire Personnel -152.4 -160.0 -4.8% brigade; partly compensated by insourcing of staff for the Security costs -113.0 -108.5 4.1% maintenance of the baggage Energy &
Slide 22: Net Result
Net Result • Increase in depreciation as a result of the write-off of the in million CHF 2008 2007 Delta in % Event Dock EBITDA 420.2 410.1 2.5% • Higher net cost of capital EBITDA margin 49.1% 51.1% mainly due to write-off of the Depreciation -186.2 -180.9 2.9% bond of “Sigma Finance Corp”. EBIT 23
Slide 23: Other Key Figures
Other Key Figures in million CHF 2008 2007 Delta in % Cash flow operating activities 415.1 410.9 1.0% Cash flow investing activities -258.8 -147.3 75.7% whereof CAPEX -249.9 -109.1 Free cash flow 156.3 263.6 -40.7% Net financial debt (IFRS) 1'019.0 918.8 10.9% Long term financial liabilities 1'056.0
Slide 24: Other Key Figures (continued)
Other Key Figures (continued) incl. noise excl. noise 2008 2007 2008 2007 Net Financial Debt/ EBITDA 2.4 2.2 3.1 3.3 Cash Flow from operating activities / Net 41% 45% 32% 31% Financial Debt Gearing 71% 67% 91% 92% ROCE 7.1% 6.9% 6.1% 5.4% Return on equity 8.7% 10.0% 7.8% 6.9% Equity Ratio 42.5% 43.2
Slide 25: 6. Other Key Topics
6. Other Key Topics 25 l 19.03.2009 l Analysts‘ Presentation © Unique (Flughafen Zürich AG)
Slide 26: Update on Infrastructural Facilities for Zurich 2010
Update on Infrastructural Facilities for Zurich 2010 (Schengen and Security Projects) Pier B Skymetro extension 9 Mod. of Immigration Hall Centralized 9 Passageway to Pier B Security 9 Busgate B01-10 26 l 19.03.2009 l Analysts‘ Presentation © Unique (Flughafen Zürich AG)
Slide 27: Update on Arrival Duty Free
Update on Arrival Duty Free • The Swiss Government and Parliament decided in 2007 to support Arrival Duty Free • Amendment of tax legislations currently in progress within the administration • Formal decision on amended legislations by the Parliament expected by end of 2009 or during 2010 • Concept
Slide 28: Status on noise-related payouts
Status on noise-related payouts • Split of the noise fund between Flughafen Zurich and the Canton of Zurich in the third Quarter 2008, funds of CHF 115 Mio. transferred • Split of noise charges in place since July 1, 2008 • Finance of the old noise-related liabilities by the Canton of Zurich • Curre
Slide 29: International Airport Activities
International Airport Activities Bangalore: • Smooth Airport opening May 24, 2008 • Efficient and high quality operations • Forecast FY 2008/2009 < 9 Mio. Pax • ad-hoc UDF for domestic passengers only granted as from mid January 2009 • Regulatory body will decide on definitive UDF, expected as from
Slide 30: 7. Outlook 2009
7. Outlook 2009 30 l 19.03.2009 l Analysts‘ Presentation © Unique (Flughafen Zürich AG)
Slide 31: Outlook 2009 - Traffic January/February
Outlook 2009 - Traffic January/February Jan/Feb Jan/Feb Delta in % 2009 2008 Local passengers 1'839'625 2'023'664 -9.1% Transfer passengers 1'077'358 1'044'542 3.1% Transfer share 36.9% 34.0% 1) Total passengers 2'929'713 3'082'344 -5.0% Movements 39'391 44'398 -11.3% whereof Line & Charter movement
Slide 32: Change in flight plan of Swiss
Change in flight plan of Swiss Enlargement of flight offer by Swiss New destination: 3 Lyon 4x daily 3 possibly Oslo 1x daily Reduction of flight frequencies 8 London City, 9x reduced to 7x daily 8 Munich, 28x reduced to 27x weekly 8 Further reduction in frequencies expected Withdrawal of routes 8 I
Slide 33: Enlargement of flight plan of other airlines
Enlargement of flight plan of other airlines New destinations and airlines 3 New York (JFK), 1x daily as of June (second route by Delta) 3 Philadelphia, 4x weekly (as of May 11, 2009 daily) 3 Mahe, 1x weekly (Transit by London) 3 London Gatwick, 1x daily 3 London Gatwick, 1x daily 3 Various destinat
Slide 34: Reduction of flight plan of other airlines
Reduction of flight plan of other airlines Reduction of frequencies 8 Singapore, 14x reduced to 12x weekly (seasonal) 8 London City, 5x reduced to 4x daily Dismissal of flight offer 8 London Gatwick, suspension of route (2x daily) 8 Lyon, suspension of route (3x daily) 34 l 19.03.2009 l Analysts‘ Pr
Slide 35: Outlook 2009 – Commercial Activities January/February
Outlook 2009 – Commercial Activities January/February Jan/Feb Jan/Feb Delta in % 2009* 2008 Total turnover, m CHF 68.7 69.8 -1.5% Airside (change versus prev. year) -12.5% 15.5% Landside (change versus prev. year) 14.5% 7.0% Commercial turnover pax, CHF 46.91 45.27 3.6% Airside (change versus prev.
Slide 36: The Circle at Zurich Airport
“The Circle at Zurich Airport“ … a new combination of fast growing premium services at the best accessible spot in Switzerland for international guests and local visitors… 36 l 19.03.2009 l Analysts‘ Presentation © Unique (Flughafen Zürich AG)
Slide 37: Facts and Figures
Facts and Figures • Crescent-shaped area of 37‘000 m² close to airport • Owned by Unique (Flughafen Zürich AG) • Utilizable area of around 200‘000 m² 50% Offices & Headquarters 25% Hotels & Long stay Health & Beauty Education & Knowledge 25% Culture & Events Brands & Dialogue Special Services • Deve
Slide 38: Financial Information
Financial Information • Investment of approximately 1 billion Swiss Francs in the next 8 - 10 years. • The project will materialise value from today undeveloped land reserves at a premium spot of Switzerland. • No cash out for this land is needed as the land is owned by Unique (Flughafen Zürich AG)
Slide 39: Measures to manage economic downturn
Measures to manage economic downturn • Capex-Reduction from CHF 320 million to CHF 250 million in 2009 • Operating costs 2009 were significantly reduced: • FTE-vacancies basically freezed (or only where indispensable) • Reduced working hours by significant reduction of overtime and holiday • Postpon
Slide 40: Guidance 2009 Key Figures
Guidance 2009 Key Figures • Passenger decrease of 3 - 5% (over proportional decrease of local passengers, transfer passengers flat or slightly positive) • Transfer share 36-37% • Total passengers between 21 and 21.5 million • Lower commercial revenue, mainly as a result of lower airside revenue • Re
Slide 41: Disclaimer
Disclaimer This document has been prepared by Unique (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, th
Slide 42: 8. Your Questions
8. Your Questions 42 l 19.03.2009 l Analysts‘ Presentation © Unique (Flughafen Zürich AG)
Slide 43: Annex to Analysts' Presentation
Annex to Analysts‘ Presentation 43 l 19.03.2009 l Analysts‘ Presentation © Unique (Flughafen Zürich AG)
Slide 44: Profit & Loss 2008 – Event Driven
Profit & Loss 2008 – Event Driven (in Mio. CHF – change compared to 2007) Revenues 2007 2008 802.9m 855.1m Costs 2007 2008 392.8m 434.9m *Outsourcing fire brigade and emergency services since January 1, 2008 44 l 19.03.2009 l Analysts‘ Presentation © Unique (Flughafen Zürich AG)
Slide 45: Profit & Loss 2008 – Event Driven
Profit & Loss 2008 – Event Driven (in Mio. CHF – change compared to 2007) Change net profit 2007 2008 130.7m 121.3m *Outsourcing fire brigade and emergency services since January 1, 2008 45 l 19.03.2009 l Analysts‘ Presentation © Unique (Flughafen Zürich AG)
Slide 46: Capex-Plan
Capex-Plan Capex (in mio. CHF) 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Specific projects: 165 135 203 214 140 72 7 55 41 25 - - Increased maintenance / renovation RWY 16/34 54 5 - - - - - - - - - - Increased maintenance / renovation RWY 14/32 3 4 1 20 50 - - - - - - Increased mai
Slide 47: Repayment Schedule (as per 31.12.2008)
Repayment Schedule (as per 31.12.2008)** Major repayments: 2024 421.17 • Partly repayments CBL ~ - (2009-12) 73.15 2015 • Bonds 128m (2009) 2014 73.15 298.15 and 150m (2010) • Partly repayments 2013 73.15 US PP (2011-15) 129.18 2012 • Repayment Japa-nese 2011 127.35 PP (2024) • ** and additionally 2
Slide 48: Debt Maturity Structure (Financial Liabilities)
Debt Maturity Structure (Financial Liabilities) 2008 14.3% 38.1% 47.6% Maturity at the end of (half) year 3.6% 2007 48.0% 48.4% 2006 8.7% 38.8% 52.5% 2005 7.8% 23.5% 68.7% 2004 6.9% 26.5% 66.5% 2003 6.5% 25.1% 68.4% 2002 17.4% 54.4% 28.2% 0% 20% 40% 60% 80% 100% within 1 year between 1 and 5 years l
Slide 49: Traffic: European Passenger Benchmark (millions)
Traffic: European Passenger Benchmark (millions) London LHR Paris CDG Frankfurt FRA Madrid MAD Amsterdam AMS Munich MUC Pax VJ 2007 2008 Pax IST Zurich ZRH LHR Copenhagen CPH CDG passenger growth (YTD) FRA Vienna VIE M AD AM S M UC Milan MXP ZRH C PH Brussels BRU M XP V IE BRU Geneva GVA GV A B SL B
Slide 50: Hub Carrier Dominance at European Airports (seats offered)
Hub Carrier Dominance at European Airports (seats offered) FRA Hub-Carrier ZRH Alliance members MUC AMS CDG CPH VIE MAD LHR BRU MXP 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Market share Source: Sabre, Nov. 2008 50 l 19.03.2009 l Analysts‘ Presentation © Unique (Flughafen Zürich AG)