Fraport Ag · XETR:FRA
Fraport — 9M 2021 Earnings Presentation
44 slides from Fraport's earnings presentation, November 2021
Slide 1: Analyst Presentation November 2021 3Q21
Analyst Presentation I November 2021 3Q21 Dr. Stefan Schulte, CEO I Prof. Dr. Matthias Zieschang, 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: 9M21 Financials
9M21 Financials Solid EBITDA Performance as Revenue Increases & Opex Declines EUR mn Total Revenue1 Opex1 +41% -25%3 2 [+13%] 1,700 [-7%] 1,206 2 1,434 333 3 1,076 280 1,367 1,154 9M20 9M21 9M20 9M21 EBITDA EUR mn Profit after Minorities >100% [>100%] 624 333 2 9M20 9M21 3 >100% 97 52 291 9M20 9M21
Slide 4: 3Q21 Financials
3Q21 Financials Underlying EBITDA at 59% of pre-COVID Level EUR mn Total Revenue1 Opex1 +85% -36% 3 2 [+77%] 682 [+17%] 30 2 618 280 3 394 368 652 338 3Q20 3Q21 3Q20 3Q21 EBITDA EUR mn Profit after Minorities >100% 289 [>100%] 30 2 9M20 9M21 3 >100% 77 29 259 3Q20 3Q21 3Q20 3Q21 -250 -304 - Frankfur
Slide 5: Passenger Review: Sequential 3Q21 Improvement
Passenger Review Sequential 3Q21 Improvement 9M Passenger Performances 3Q Passenger Performances Sequential 3Q Improvement -2% +30% +92% +21% +85% +2% >100 +65% +20% vs.20 >100 >100 >100 >100 >100 >100 >100 +51% -26% -71% -61% -47% -50% -63% -81% -44% -11% -27% -73% vs.19 vs.19 -55% -49% -25% -34% -
Slide 6: Passenger Review: Rapid Traffic Recovery
Passenger Review Rapid Traffic Recovery Despite prolonged lockdown periods and summer booking hesitancy: rapid recovery to 80-90% of pre-Covid levels 100% 2021 Passenger levels vs. 2019 96% 92% 77% 79% 80% 68% 65% 60% 60% 54% 53% 46% 40% 36% 36% 20% 20% 20% 15% 0% May-21 Sep-21 Oct-21 (prelim) Frank
Slide 7: Passenger Review: Imbalanced Frankfurt Slot Utilization
Passenger Review Imbalanced Frankfurt Slot Utilization: high Peaks & low off-Peaks Max. utilization: ~90% of 36 movements difference between Slots per hour pre-Covid Level busiest and lowest day 110 Pre-Covid max. 100 Intraday low: 20% of pre-Covid max / 90 c.23% of current max. 80 70 60 Monthly ave
Slide 8: Frankfurt Outlook
Frankfurt Outlook Winter Season 21/22: 70% of pre-COVID Capacities Airlines: 83 (-5 vs. 2019) Movements: 70 % of 2019 Return of many US and Countries: 92 (-7 vs. 2019) Seats: 64% of 2019 leisure destinations Destinations: 244 (-15 vs. 2019) 8 3Q21 Analyst Presentation l November 2021
Slide 9: Business Update: Winning back the Recovery
Business Update Winning back the Recovery Non-staff Cost and Staff Cost Reduction CO2 Reduction Capex Reductions • Voluntary redundancy • Non-immanent cost of • Signing of new wind park program largely completed materials and other opex PPA to further reduce CO2 • Currently, c.4.3k employees taken o
Slide 10: Business Update: Lima Airport Expansion
Business Update Lima Airport Expansion Completion of new Runway EPC contract for new Inauguration of new Terminal until end of 2022 Terminal awarded scheduled for 2025 10 3Q21 Analyst Presentation l November 2021
Slide 11: Business Update: Frankfurt Terminal
Business Update Frankfurt Terminal 3 Superstructure works almost completed Pier G interior works well advanced Terminal 3 on track to be inaugurated in 2026 c.70% of order volume contracted c.50% of order volume cashed out by yearend 2021 New contract awardings in line with budget amounts 11 3Q21 An
Slide 12: Outlook: Updated Outlook
Outlook Updated Outlook: Financial Turnaround this Year! 19FY Results 20FY Results 21FY Outlook Upper range of guidance: Passengers FRA 70.6 mn 18.8 mn Below 20 to ~25 mn New: slightly above €2bn Revenue €3.71 bn €1.68 bn Before: €~2 bn Adj. value at €+48 mn New: €~650 mn to slightly above €700mn EB
Slide 13: Medium-Term Outlook
Outlook Medium-Term Outlook Traffic Recovery to 2019 EBITDA Recovery to 2019 Frankfurt Expected ~2025/26 ~2023/24 International Airports Expected on average 2023 ~2023 Thanks to Traffic Recovery and Countermeasures, pre-COVID EBITDA expected by 2023/24 – at improved Margin! 13 3Q21 Analyst Presentat
Slide 14: Analyst Presentation November 2021 3Q21
Analyst Presentation I November 2021 3Q21 Dr. Stefan Schulte, CEO I Prof. Dr. Matthias Zieschang, CFO
Slide 15: 9M21 Cash Flow
9M21 Cash Flow OCF & FCF adversely impacted by Severance Payments EUR mn -58 6,226 -3 -29 -14 +9 -211 -437 5,534 +219 -122 -22 -24 Free Cash Flow 9M21: € -634mn 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
Slide 16: 3Q21 Cash Flow Focus
3Q21 Cash Flow Focus Positive reported FCF, Underlying FCF positive ex. Growth Capex 3Q Underlying Cash Flow EUR mn clearly positive excl. Growth Capex! EUR 414mn OCF - EUR 160mn Gov. Compensation = EUR 254mn Underlying OCF - EUR 61mn Maintenance Capex - EUR 1mn Fixed Concession Payments - EUR 10mn
Slide 17: 3Q21 Cash Management
3Q21 Cash Management EUR 500mn promissiory note Cash Reserves at EUR c.4.5bn loan placed post due date Cash & Financial Assets (Liquidity) Committed Credit Lines & Finance EUR mn +500 5,000 EUR +2,768mn 4,448 4,475 4,500 4,378 4,000 3,500 2,973 3,110 3,000 3,478 3,467 3,495 2,500 2,236 2,149 2,000 1
Slide 18: Aviation Segment
Aviation Segment Cost Control and Extras dampen COVID-19 Impact EUR mn 9M21 9M20 9M19 3Q21 3Q20 3Q19 − EBITDA positively impacted by EUR 58mn Revenue 423 354 783 169 102 288 Security Settlement and EUR 160mn State Charges 240 239 623 122 63 234 Compensation Security 159 90 122 40 32 42 − Clear EUR 1
Slide 19: Retail & Real Estate Segment
Retail & Real Estate Segment Real Estate Business on 2019 Level, Clearly Positive EBITDA EUR mn 9M21 9M20 9M19 3Q21 3Q20 3Q19 − Segment revenues continue to outperform Revenue 232 226 372 93 68 131 passenger development Retail 52 64 162 27 15 58 − Resilient Real Estate business on pre-COVID Real Est
Slide 20: Ground Handling Segment
Ground Handling Segment Clear Cost Focus, 3Q EBITDA almost Break Even EUR mn 9M21 9M20 9M19 3Q21 3Q20 3Q19 − Disproportionately low revenue decline Revenue 270 250 537 118 68 192 compared to passenger development, a.o., Ground Hand. 157 138 274 67 40 99 due to MTOW related charges and lower decline
Slide 21: Frankfurt Segments
3 Frankfurt Segments Cost Savings well on Track! EUR mn Total Opex Staff Cost EBITDA EUR -341mn EUR -221mn EUR -266mn [-483mn] 1,168 1,1411 908 827 741 1 679 1 499 508 578 382 394 393 459 370 381 1 272 266 270 270287 236 312 220 235 225 214 144 197 191 146 148 149 145165 76 -29 105 16 -89 -16 2 3 1
Slide 22: International Activities & Services
International Activities & Services Strong EBITDA Contribution from majority owned Investments EUR mn 9M21 EBITDA 3Q21 EBITDA 200 186 150 126 100 50 36 30 27 16 10 16 16 9 5 5 7 7 0 2 Lima Brasil Greece 1 USA Twin Star Slovenija Other 3 9M Segment EBITDA of EUR 312 mn / high Q3 share of EUR 184mn4 1
Slide 23: Intl. Activities & Services Segment
Intl. Activities & Services Segment Underlying EBITDA of EUR 196mn indicates full margin Recovery EUR mn 9M21 9M20 9M19 3Q21 3Q20 3Q19 − Revenue excl. IFRIC 12 down by c.46% Revenue 577 489 1,160 311 169 458 vs. 9M19 IFRIC 12 145 171 366 57 54 96 − Clear opex reduction in Frankfurt “Services” ex IFR
Slide 24: Appendix
Analyst Presentation I November 2021 Appendix Dr. Stefan Schulte, CEO I Prof. Dr. Matthias Zieschang, CFO
Slide 25: Group P+L
Appendix Group P+L € million 9M 2021 9M 2020 Q3 2021 Q3 2020 Revenue 1,501.4 1,317.5 690.5 406.9 Other internal work capitalized 28.3 28.1 9.2 9.6 Other operating income 315.1 31.1 39.1 5.1 Total revenue 1,844.8 1,376.7 738.8 421.6 Cost of materials –491.0 –519.9 –193.0 –153.6 Personnel expenses –63
Slide 26: Cash Flow
Appendix Cash Flow € million 9M 2021 9M 2020 Q3 2021 Q3 2020 € million 9M 2021 9M 2020 Q3 2021 Q3 2020 Cash flow from operating activities 218.9 –124.9 413.5 –28.3 Result attributable to shareholders of Fraport AG 97.0 –515.4 76.6 –304.1 Investments in airport operating projects –185.6 –209.5 –59.1
Slide 27: Financial Position
Appendix Financial Position Assets Liabilities and equity September 30, December 31, September 30, December 31, € million 2021 2020 € million 2021 2020 Non-current assets Shareholders’ equity Goodwill 19.3 19.3 Issued capital 923.9 923.9 Investments in airport operating projects 3,346.9 3,221.2 Capi
Slide 28: Repayment Profile
Appendix Repayment Profile 10,000 in € mil. 9,721 9,000 €8.3 bn Fraport AG debt 8,000 7,000 €1.08 bn Greece debt Average debt condition 6,000 ~ 2.2 % interest rate € 290 mn Brazil debt 5,000 4,475 € 24 mn Lima debt 4,000 3,495 3,000 3,495 2,000 7 11 31 10 208 7 65 65 9 13 1,000 27 39 37 14 60 75 14
Slide 29: 3Q21 Cash Flow
Appendix 3Q21 Cash Flow EUR mn 6,326 +414 -21 6,226 -60 -1 -10 -7 +1 -164 0 -1 -51 Free Cash Flow 3Q21: € +121mn Net debt Brazil Other Fixed IAS 23 IFRS Divs from Other Net debt OCF Greece Lima FRA June 30, 2021 capex capex concession borrowing 16 at equity Sept. 30, 2021 capex capex T3 mostly FRA p
Slide 30: Overview Compensation Effects and Security Settlement
Appendix Overview Compensation Effects and Security Settlement Aviation 1Q 21 EUR + 57.8mn Revenue: Settlement Security Dispute 2Q 21 EUR +159.8mn Other Income: Compensation for parts of Losses incurred in 2020 International Activities / Fraport USA 1Q 21 EUR +11.6mn Other Income: Cancellation Minim
Slide 31: Overview Compensation Measures 2020/21
Appendix Overview Compensation Measures 2020/21 Frankfurt Greece EUR~160mn Op. CF up EUR~178mn Op. CF: Compensation from State of Hesse State settlement~150mn Cape Capex: agreement to offset and Federal Government for adverse COVID-19 FCF: break impacteven in FY2020. 1st Lockdown period in 2020. Com
Slide 32: Frankfurt Restructuring Progress
Appendix Frankfurt Restructuring Progress 107% 4,000 75% 3,009 4,293 Employee Employee Employee Reduction Reduction Reduction Target 1 Achievement Achievement Mar 31, 2021 Sep 30, 2021 32 3Q21 Analyst Presentation l November 2021 1 Measured against 20,792 Employees as per YE 2019
Slide 33: 9M21 International Holdings
Appendix 9M21 International Holdings All International Holdings with positive 9M21 EBITDA Fully consolidated Group companies € million Share in % Revenue1) EBITDA EBIT Result 9M21 9M20 Δ% 9M21 9M20 Δ% 9M21 9M20 Δ% 9M21 9M20 Δ% Fraport USA 100 44.7 29.8 +50.0 26.6 4.9 >100 – –28.4 – –5.6 –30.3 – Frap
Slide 34: 3Q21 International Holdings
Appendix 3Q21 International Holdings Fully consolidated Group companies € million Share in % Revenue1) EBITDA EBIT Result 3Q21 3Q20 Δ% 3Q21 3Q20 Δ% 3Q21 3Q20 Δ% 3Q21 3Q20 Δ% Fraport USA 100 19.8 8.0 >100 4.6 –3.9 – –4.6 –14.6 – –6.5 –13.2 – Fraport Slovenija 100 7.5 4.0 +87.5 7.0 –1.4 – 4.8 –4.2 – 3
Slide 35: International Activities EBITDA Break Even Level
Appendix International Activities EBITDA Break Even Level 2020 Passenger break even level 2020 Passenger break even level As % of 19FY per day per annum Greece ~20k ~7.5mn ~25% Brazil ~15k ~5.5mn ~35% Lima ~7k ~2.5mn ~10% Twin Star ~2.8k ~1mn ~20% Ljubljana ~1.5k ~0.5mn ~30% 35 3Q21 Analyst Presenta
Slide 36: 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 37: On our Way to The New Fraport
Appendix On our Way to “The New Fraport” The New Fraport Operational Excellence Strong Cost Control Greener 37 3Q21 Analyst Presentation l November 2021
Slide 38: 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 39: 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 40: 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 41: Greener: Frankfurt Most Intermodal Hub
Appendix – Greener Frankfurt: Most Intermodal Hub – 1H 21: Lufthansa and German Rail offer 134 high-speed feeder trains from 17 cities to Frankfurt Airport, including New Jul/21 Basel in Switzerland New Dec/21 – 5 new cities to be added in 2H 21, including Munich, New Dec/21 Berlin and Hamburg, ther
Slide 42: Greener: Frankfurt CO2 Reduction Targets
Appendix – Greener Frankfurt: CO2 Reduction Targets Metric tons CO2 Traffic units in mil. 2 FY 2020 CO2 Emissions for 400,000 120 Fraport AG at Frankfurt Airport dropped largely due 350,000 to reduced operations by 23.7% to 129,980mt 300,000 90 250,000 All measures to achieve 2030 and 2050 reduction
Slide 43: Dates: 2021 Financial Calendar
Appendix Dates 2021 Financial Calendar Mar 16, 2021 May 11, 2021 Jun 1, 2021 Aug 3, 2021 Nov 9, 2021 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 44: 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 44 3Q21 Analyst Presentation l November 2021