Fraport AG · XETR:FRA
Fraport — Investor Presentation (January 2023)
41 slides from Fraport's investor presentation, January 2023
Slide 1: Investor Relations Jan23 Company Presentation
Investor Relations Jan23 Company Presentation
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: Co. Presentation | Appendix
1 I Co. Presentation 2 I Appendix 3 Jan 23 Company Presentation
Slide 4: Group Overview: Business Structure
Group Overview Business Structure Frankfurt Based International Activities 3 Segments 3 Kinds of Participation Retail & Aviation Ground Handling Asset Deals Concessions ORAT Real Estate Performance of Frankfurt Know how 4 Jan 23 Company Presentation
Slide 5: Group Overview: Portfolio At A Glance
Group Overview Portfolio At A Glance Minority Share 5 Jan 23 Company Presentation
Slide 6: COVID-19 Recovery: Frankfurt Airport Passengers
COVID-19 Recovery Frankfurt Airport Passengers 70 60 50 ~70% of 2019 40 30 20 10 0 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 CO
Slide 7: Quicker Traffic Recovery at major Group Airports
COVID-19 Recovery Quicker Traffic Recovery at major Group Airports Greece Antalya 34 30 104% 38 34 88% of 2019 30 26 26 of 2019 22 22 18 18 14 14 10 10 6 6 2017 2018 2019 2020 2021 2022 2017 2018 2019 2020 2021 2022 Lima Brazil 29 25 15 21 79% 80% 17 of 2019 of 2019 13 10 9 5 5 2017 2018 2019 2020 2
Slide 8: COVID-19 Recovery: Group Financials
COVID-19 Recovery Group Financials EUR mn EBITDA 1.129 1.180 1.003 962 757 829 -251 2017 2018 2019 2020 2021 9M2022 LTM LTM EBT 670 590 506 116 178 142 -933 2017 2018 2019 2020 2021 9M2022 LTM LTM 2 8 Jan 23 Company Presentation
Slide 9: Business Update: Focal Points 2023
Business Update Focal Points 2023 Aviation Retail & Real Estate Ground Handling Internationals • Continued Traffic • Spend per Pax • Recruitment and • Continued traffic Recovery improvement backed training of staff to recovery • 4.9% increase in by re-opening of cope with peak • Price adjustments ch
Slide 10: Outlook: 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!1 1 Based on like-for-like
Slide 11: Co. Presentation | Appendix
1 I Co. Presentation 2 I Appendix 11 Jan 23 Company Presentation
Slide 12: Group Traffic Figures – FY 2022
Group Traffic Figures – FY 2022
Slide 13: Group P+L
Appendix Group P+L € million 9M 2022 9M 2021 Q3 2022 Q3 2021 Revenue 2.367,8 1.501,4 1.019,3 690,5 Other internal work capitalized 29,2 28,3 9,3 9,2 Other operating income 98,8 315,1 27,3 39,1 Total revenue 2.495,8 1.844,8 1.055,9 738,8 Cost of materials –777,1 –491,0 –322,4 –193,0 Personnel expense
Slide 14: Cash Flow
Appendix Cash Flow € million 9M 2022 9M 2021 Q3 2022 Q3 2021 € million 9M 2022 9M 2021 Q3 2022 Q3 2021 Result attributable to shareholders of Fraport Cash flow from operating activities 628,4 218,9 443,1 413,5 AG 65,8 97,0 114,7 76,6 Result attributable to non-controlling interests 32,3 21,0 36,5 26
Slide 15: Financial Position
Appendix Financial Position Assets Liabilities and equity September 30, December 31, September 30, December € million 2022 2021 € million 2022 31, 2021 Non-current assets Shareholders’ equity Goodwill 19,3 19,3 Issued capital 923,9 923,9 Investments in airport operating projects 3.836,1 3.416,4 Capi
Slide 16: International Holdings
Appendix International Holdings Fully consolidated Group companies € million Share in % Revenue1) EBITDA EBIT Result 9M 2022 9M 2021 Δ% 9M 2022 9M 2021 Δ% 9M 2022 9M 2021 Δ% 9M 2022 9M 2021 Δ% Fraport USA 100 75.8 44.7 +69.6 36.8 26.6 +38.3 0.8 0.0 – –3.0 –5.6 – Fraport Slovenija 100 25.5 14.9 +71.1
Slide 17: P&L of fully consolidated airport investments
Appendix P&L of fully consolidated airport investments Greece € mil. 9M22 9M19 FY19 Brasil € mil. 9M22 9M19 FY19 Ljubljana € mil. 9M22 9M19 FY19 Revenue 367 383 463 Revenue 61 228 283 Revenue 26 37 45 Revenue w/o IFRIC 12 361 247 297 Revenue w/o IFRIC 12 58 67 93 Revenue w/o IFRIC 12 26 37 45 Total
Slide 18: 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 Interna
Slide 19: Appendix – Aviation
Appendix – Aviation Q3 Revenues recover to c.85% of Pre-Covid Level EUR mn 9M22 9M21 9M19 3Q22 3Q21 3Q19 9M22 Airport charges achieve c.75% of 2019 at c.66% pax level Revenue 612 423 783 244 169 288 Charges 453 240 623 185 122 234 “Recovery” Incentives to Airlines of EUR c.23mn YTD Security 132
Slide 20: Appendix – Retail & Real Estate
Appendix – Retail & Real Estate Highly-profitable Business drives Frankfurt EBITDA EUR mn 9M22 9M21 9M19 3Q22 3Q21 3Q19 Real Estate Business outperforms pre-COVID Level Revenue 314 232 372 122 93 131 Retail 101 52 162 43 27 58 Parking recovers to 85% of 3Q19 Real Estate 138 127 127 49 44 44 Af
Slide 21: Appendix – Ground Handling
Appendix – Ground Handling Cost to cope with Summer Season weigh on Financials Revenue Recovery in 3Q22 to c.80% of EUR mn 9M22 9M21 9M19 3Q22 3Q21 3Q19 2019 level, among others due to Revenue 406 270 537 153 118 192 maximum-take off weight- and G. Handling 215 157 274 78 67 99 movement-related ch
Slide 22: Appendix – Frankfurt Opex
Appendix – Frankfurt Opex Opex Reduction despite Energy Prices, Inflation and GH Ramp Up EUR mn Total Opex Total Opex reduced by EUR 157mn vs. 9M19 EUR -157mn 1 Staff Cost reduced by EUR c.129mn vs. 9M19, mainly due to [9M LFL] Restructuring Program 382 394 393 409 As of September 30, 2022 c.4
Slide 23: Sharp Rebound in International Activities
Appendix Sharp Rebound in International Activities 93% of High Share of Leisure and Short-haul Traffic 3Q19 PAX Fuels Up Traffic Recovery Fraport Greece tops 2019 Passenger Traffic with strong 3Q22 Outperformance 130% of LATAM with sound overall Recovery 3Q19 EBITDA Favorable Contractual Fra
Slide 24: Appendix – Intl. Activities & Services
Appendix – Intl. Activities & Services Full Financial Recovery thanks to Increased Profitability Excl. IFRIC 12: Revenue growth compared to EUR mn 9M22 9M21 9M19 3Q22 3Q21 3Q19 9M19, 3Q22 figure even at 112% Revenue 1,036 577 1,160 501 311 458 3Q22 Other Income reflects EUR c.24mn IFRIC 12 230 1
Slide 25: Strong 9M22 OCF Development and Capex Control
Appendix Strong 9M22 OCF Development and Capex Control EUR mn -25 -375 7,004 -14 -32 -37 +16 -178 6,370 +628 -344 -261 -7 -5 Free Cash Flow 9M22: € -609mn (excl. AYT new: € -234mn) OCF Brazil Greece Lima FRA Other Fixed IAS 23 IFRS Divs from Equity Other Net debt Net debt YE 2021 capex capex capex T
Slide 26: 3Q22 Free Cash Flow clearly positive at EUR 125mn
Appendix 3Q22 Free Cash Flow clearly positive at EUR 125mn EUR mn Op. Cash Flow 443 OCF outperforms 3Q19 by 4% Brazil Capex 3 Brazil & Greece running on Inflows Maintenance Level Greece Capex 1 Outflows Well in line with EUR c.250mn Other Capex 61 FRA & Other Guidance Fixed Conc. Payments, Positivel
Slide 27: Available Funds & Repayment Profile
Appendix Available Funds & Repayment Profile 11.000 in € mil. 10.788 10.000 €~8.9 bn Fraport AG debt 9.000 8.000 €~1.1 bn Greece debt Average debt condition 7.000 ~ 2.2 % interest rate € 367 mn Brazil debt 6.000 5.000 € 326 mn Lima debt 4,5231 4.000 3.784 3.000 3,784 2.000 10 14 16 11 13 17 9 17 34
Slide 28: Substantial Increase in Available Funds
Appendix Substantial Increase in Available Funds Cash & Financial Assets (Liquidity) Committed Credit Lines & Finance EUR mn 5.500 EUR +2,816mn 5.000 4,448 4,506 4,523 4.500 4,288 4.000 3.500 3,110 3.784 3.467 3.564 3.486 3.000 2.500 2,149 2.000 1,707 2.214 1.500 1.569 1.000 1.156 500 Dec. 31, 2019
Slide 29: Unchanged Outlook to 1H22 – Upper End Targeted!
Appendix Unchanged Outlook to 1H22 – Upper End Targeted! 19FY Results 21FY Results Previous 22FY Outlook Outlook presented with 1H22 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 Slightly above €~3
Slide 30: Updated 22FY Cash Flow, Capex & Net Debt Outlook
Appendix Updated 22FY Cash Flow, Capex & Net Debt Outlook 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 Eq
Slide 31: Excerpts of IR Milestones
Appendix Excerpts of IR Milestones 2023 2025 2027 Positive 1H Base Effect from Drop out Commissioning of new Lima Terminal Completion of new FRA Concourse B Passenger of 2022 Omicron Dip expected Screening Lines – Marking new Era of FRA T1 Retail & FRA about to reach Pre-COVID PAX Passenger Experien
Slide 32: Dual-Till regulated Infrastructure: FRA Inflation Protection
Appendix Dual-Till regulated Infrastructure FRA Inflation Protection Aviation Retail & Real Estate Ground Handling Coverage Potential of Central Full Cost (Inflation) Coverage Potential Retail & Car Park Revenues mostly Infrastructure Cost Inflation (c.35-40% of via Regulation, albeit with Time Gap
Slide 33: International Activities Inflation Protection
Appendix International Activities Inflation Protection Greece Ljubljana - Airport Charges - Airport Charges with annual RoRAB linked Greek CPI-link (CPI x 0.9) - Non-Aviation usually as - Non-Aviation usually as MAGs MAGs and percentage of and percentage of Turnover Turnover Brazil Twin Star - Airpo
Slide 34: FRA Final Expansion Element: Terminal 3
Appendix FRA Final Expansion Element: Terminal 3 Planned Completion: 2026on. | ~21 mil. Passengers Capacity1 | EUR c.4 bn. Invest € mil. Rough capex phasing 700 500 300 100 21 22 23 24 25 26 2027 Pier G 1st stage 2nd stage Terminal 3: Main Hall and Piers H & J Terminal 3 Pier G: 1st stage • Planned
Slide 35: Lima Airport Expansion
Appendix Lima Airport Expansion Due to strong rebound of passenger traffic and implementation of single-terminal concept Lima Airport Partners is finalizing the amendment of the EPC contract to further expand the new terminal The new terminal facilities will be sufficient to accommodate traffic
Slide 36: Well-balanced Long-term Maturity Profile of Airport Holdings
Appendix Well-balanced Long-term Maturity Profile of Airport Holdings1 Airport Operation Min. remaining term1 Frankfurt Freehold Greek regionals 2057 36 years Ljubljana 20542 33 years2 Antalya 2026/2051 30 years Fortaleza 2047 26 years Porto Alegre 2042 21 years Lima 20412 20 years2 Twin Star 20413
Slide 37: New Antalya Airport Concession
Appendix New Antalya Airport Concession • 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 company: 51% SPV • D
Slide 38: New Antalya Airport Concession – Continued
Appendix New Antalya Airport Concession – Continued 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 Passenger vs. today: 50% sha
Slide 39: Our contribution to a climate-neutral Europe
Appendix Our contribution to a climate-neutral Europe We want to meet people's need for mobility without placing an additional burden on the environment. We are working at full speed to achieve this. Climate protection is one of the most urgent tasks facing the entire aviation industry. That is why
Slide 40: Dates: Financial and Traffic Calendar
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 41: 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 41 Jan 23 Company Presentation