Fraport Ag · XETR:FRA
Fraport — Q2 2022 Earnings Presentation
35 slides from Fraport's earnings presentation, August 2022
Slide 1: Analyst Presentation August 2022 2Q22
Analyst Presentation I August 2022 2Q22 Prof. Dr. Matthias Zieschang, CFO
Slide 2: At A Glance
At A Glance Key Message: “Strong Traffic Recovery in Frankfurt and Abroad” ▪ Frankfurt Passengers recover up to 80% of 2019 ▪ International Activities with even stronger Traffic Performance on average 1 ▪ 2Q22 EBITDA recovers to 91% of 2019 ▪ International Activities 2Q EBITDA above 1 2019 Level Flä
Slide 3: Business Update: Frankfurt
Business Update Preliminary Figures for July ‘22: Frankfurt at ~72.5% of 2019 Quick Recovery in Frankfurt Passenger Numbers YTD at ~63.7% of 2019 ▪ Distinct Acceleration in Passenger Frankfurt Passenger Numbers p. Day Recovery 7-Days Average Strongest Momentum so far ▪ April, May, June ‘22 with grow
Slide 4: Business Update: Fraport Greece and international airports
Business Update Preliminary Figures for July ‘22: Fraport Greece at ~111% of 2019 Key Short-Haul Leisure Markets Almost Fully Recovered! Antalya at ~93% of 2019 June 22 Passenger Numbers Adjusted for Russian Traffic: % of 2019 ! Comparable Development to Fraport Greece! 103% 81% 82% 77% 54% 49% Lima
Slide 5: 6M22 Group Financials
6M22 Group Financials Strong EBITDA Recovery Thanks to Traffic Improvement Key Financials Comments EUR mn Total Revenues1 Opex1 ▪ All major Airports and Revenue Streams with underlying Growth over Previous Year +28%2 +31% [+75%] 1,303 1,018 ▪ Despite high number of one-off Items in 6M21, Total Reven
Slide 6: 2Q22 Group Financials
2Q22 Group Financials Keeping with 2Q19 Record Level Key Financials Comments EUR mn Total Revenues1 Opex1 ▪ Despite 30% lower Passenger Level in Frankfurt and International Airports remaining below 2019; Total Revenues just c.10% -4% 2 -12% [-11%] below 2019 Level 851 813 ▪ 2Q22 EUR 65mn Opex Reduct
Slide 7: Aviation
Aviation Strong 2Q Earnings Recovery Despite 30% Less Passengers ▪ Charges still c.30% below 2019; EUR mn 6M22 6M21 6M19 2Q22 2Q21 2Q19 2Q22 figure: 22% below Revenue 369 254 495 224 115 270 ▪ Upper End of new Pax Guidance will lead Charges 269 118 389 168 72 215 to EUR c.30mn “Recovery” Incentives
Slide 8: Retail & Real Estate
Retail & Real Estate Real Estate Above 2019, 2Q EBITDA at c.82% of 2019 ▪ Resilient Real Estate Business exceeds EUR mn 6M22 6M21 6M19 2Q22 2Q21 2Q19 pre-COVID Level, also due to Inflation Revenue 192 139 241 106 76 125 pass-through Retail 58 25 104 34 14 56 ▪ Parking recovers to 81% of 2Q19 Real Es
Slide 9: Ground Handling
Ground Handling 2Q EBITDA Turnaround, Extra Cost Will Prevent FY Break Even ▪ Revenue Recovery to c.73% of 2019, EUR mn 6M22 6M21 6M19 2Q22 2Q21 2Q19 2Q22 Recovery at c.80% Revenue 253 152 345 147 85 184 ▪ Revenue Development supported by G. Handling 137 90 174 79 50 93 MTOW and Aircraft Movement re
Slide 10: Frankfurt Opex
Frankfurt Opex Opex Reduction Despite Operational Ramp-Up in Ground Handling EUR mn Total Opex Staff Cost Other Opex EUR -125mn1 EUR -97mn 1 EUR -28mn 1 [6M LFL] [6M LFL] [6M LFL] 382 394 1 323 341 1 345 270 270 220 235 1 182 181 1 188 162 159 162 143 1 152 1 149 145 121 125 318 333 177 181 142 151
Slide 11: International Activities & Services
International Activities & Services 2Q22 Underlying EBITDA +19% vs. 2Q19 ▪ Revenue excl. IFRIC 12 back at c.92% EUR mn 6M22 6M21 6M19 2Q22 2Q21 2Q19 of 6M19, 2Q22 figure at 102% Revenue 535 266 702 332 150 400 ▪ 2Q22 Other Income reflects EUR c.54mn IFRIC 12 137 88 269 71 48 144 positive Effect from
Slide 12: International Activities & Services
International Activities & Services Strong 2Q EBITDA Performance vs. 2Q19 ▪ Fraport Greece with EUR 33mn underlying Revenue and EUR 28mn EBITDA Increase vs. 2Q19, at Pax Numbers close to 2Q19, . Increase driven by higher Charges post Completion of mandatory Capex (EUR +25mn) and 2Q Retail Revenues a
Slide 13: 6M22 Cash Flow
6M22 Cash Flow Solid Development of Operating Cash Flow & Capex +36 7,068 EUR mn -375 -117 -5 -22 -22 +9 -215 6,370 +185 -163 -4 -4 Free Cash Flow 6M22: € -358mn €-734mn OCF Brazil Greece Lima FRA Other Fixed IAS 23 IFRS Divs from Equity Other Net debt Net debt YE 2021 capex capex capex T3 capex con
Slide 14: 2Q22 Cash Flow
2Q22 Cash Flow Substantial FCF Potential excl. Growth Projects EUR mn Inflows OCF recovers to 77% of 2Q19; Xi’An Divestment Op. Cash Flow 183 not included Brazil Capex 2 Outflows Brazil & Greece running on Maintenance Level Greece Capex 4 Other Capex 41 Well in line with EUR c.250mn FRA & Other Guid
Slide 15: Cash Management
Cash Management Further EUR 400mn Finance EUR 4.2+bn Available Funds + Further Finance! Closed Post June 30th Cash & Financial Assets (Liquidity) Committed Credit Lines & Finance EUR mn 5,500 EUR +2,571mn +400 5,000 4,448 4,506 4,500 4,288 4,000 3,500 3,110 3,467 3,564 3,486 3,000 2,500 2,149 2,000
Slide 16: Cash Management: Available Funds & Repayment Profile
Cash Management Available Funds & Repayment Profile in € mil. 11,000 10,554 10,000 €~8.9 bn Fraport AG debt 9,000 €~1.1 bn Greece debt 8,000 Average debt condition ~ 2.2 % interest rate 7,000 € 358 mn Brazil debt 6,000 € 212 mn Lima debt 5,000 1 4,000 4,288 3,564 3,486 3,000 3,486 2,000 8 12 13 9 11
Slide 17: 22FY Updated Outlook
22FY Updated Outlook Changes in EBITDA & Group Result include One-off Items 19FY Results 21FY Results Previous 22FY Outlook Updated 22FY Outlook Passengers 24.8 mn Between ~55% and Between ~45 and 50mn Pax 70.6 mn FRA (35% of 2019) ~65% of 2019 = ~63% to ~71% Revenue €3.71 bn €2.14 bn €~3 bn Slightl
Slide 18: Appendix
Analyst Presentation I August 2022 Appendix Prof. Dr. Matthias Zieschang, CFO
Slide 19: Group P+L
Appendix Group P+L € million 6M 2022 6M 2021 Q2 2022 Q2 2021 Revenue 1.348.5 810.9 808.9 425.9 Other internal work capitalized 19.9 19.1 10.3 9.6 Other operating income 71.5 276.0 64.7 252.5 Total revenue 1.439.9 1.106.0 883.9 688.0 Cost of materials –454.7 –298.0 –249.6 –160.2 Personnel expenses –5
Slide 20: Cash Flow
Appendix Cash Flow € million 6M 2022 6M 2021 in € million 6M 2022 6M 2021 Cash flow from operating activities 185.3 –194.6 Result attributable to shareholders of Fraport AG –48.9 20.4 Investments in airport operating projects –188.3 –126.5 Result attributable to non-controlling interests –4.2 –5.0 I
Slide 21: Financial Position
Appendix Financial Position Assets Liabilities and equity in € million June 30, 2022 Dec 31, 2021 in € million June 30, 2022 Dec 31, 2021 Non-current assets Shareholders’ equity Goodwill 19.3 19.3 Issued capital 923.9 923.9 Investments in airport operating projects 3.692.2 3.416.4 Capital reserve 59
Slide 22: International Holdings
Appendix International Holdings Fully consolidated Group companies € million Share in % Revenue1) EBITDA EBIT Result 1H22 1H21 Δ% 1H22 1H21 Δ% 1H22 1H21 Δ% 1H22 1Q21 Δ% Fraport USA 100 47.7 24.9 +91.6 23.0 22.0 +4.5 4.6 4.6 – –0.6 0.9 – Fraport Slovenija 100 14.7 7.4 +98.6 2.4 –0.3 – –2.9 –5.6 – –2.
Slide 23: Overview of Major Special Effects 2021/2022
Appendix Overview of Major Special Effects 2021/2022 2022: 2021: International Activities / Xi‘An Aviation 2Q 22 EUR +53.7mn Other Income: Gain on Asset Disposal 1Q 21 EUR + 57.8mn Revenue: Settlement Security Dispute 2Q 21 EUR +159.8mn Other Income: State Compensation for Parts of Operating Financi
Slide 24: 22FY Capex, Cash Flow & Net Debt
Appendix 22FY Capex, Cash Flow & Net Debt Frankfurt T3 Capex: €~550mn 2022 FCF & Net Debt Bridge: Other Capex: EUR c.1.2 bn Capex €~250mn + EUR c.50mn Fixed Concession Payments & FCF: Borrowing Cost negative + EUR c.200mn Interest and Tax Payments Lima + EUR min. 300mn AYT Initial Equity less Divs C
Slide 25: Staff Development Frankfurt / Germany
Appendix Staff Development Frankfurt / Germany Ground Handling Other FRA Positions FraSec Like-for-Like Staff Reduction: 4,512 Employees as at June 30, 2022 vs. YE’19 Number of Employees (as per Reporting Date) 20,468 20,792 1 LFL: 1 LFL: 1 - LFL Staff Number slightly down vs. YE’21 4,277 4,308 16,3
Slide 26: Unchanged Medium-Term Outlook
Appendix Unchanged 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! 26 2Q22 Analys
Slide 27: On our Way to "The New Fraport"
Appendix On our Way to “The New Fraport” The New Fraport Operational Excellence Strong Cost Control Greener 27 2Q22 Analyst Presentation l August 2022
Slide 28: 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 agree
Slide 29: 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 (achieved 21YE) – All non-essential cost items in focus – All capex projects under review –
Slide 30: 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 31: 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 32: New Antalya Concession: Concession at a Glance
Appendix – New Antalya Concession Concession at a Glance • Exclusivity to operate all terminals at Antalya Airport from January 2027 to December 2051 Operational Period • The current Antalya Airport concession will expire in December 2026 • Fraport‘s share in the company: 49%; TAV‘s share in the com
Slide 33: New Antalya Concession: Financial Drivers
Appendix – New Antalya Concession Financial Drivers of the new Concession Tailwinds • Increase in international departing Passenger Fee from currently EUR 15 to EUR 17 as of 2027 (fixed over remaining concession term) • Retaining of 100% of the EUR 1.5 Security Fee per departing international Passen
Slide 34: Dates
Appendix Dates 2022 Financial Calendar Mar 15, 2022 May 10, 2022 May 24, 2022 Aug 9, 2022 Nov 8, 2022 FY 3M AGM 6M 9M 2020 Traffic Calendar 2022 Apr12, Apr 13,2019 2022 May 12, 2022 Jun 14, 2022 Jul 13, 2022 Aug 11, 2022 3M 4M 5M 6M 7M Sep 13, 2022 Oct 14, 2022 Nov 11, 2022 Dec 13, 2022 Jan 16, 2023
Slide 35: 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 35 2Q22 Analyst Presentation l August 2022