Fraport Ag · XETR:FRA
Fraport — FY2021 Earnings Presentation
41 slides from Fraport's earnings presentation, Mar 15, 2022
Slide 1: Analyst Presentation March 2022 – FY21
Analyst Presentation I March 2022 21FY 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: 21FY Review
21FY Review Strong Progress in Transitioning and Financial Recovery! 1 Significant Progress in Restructuring EBITDA reaches 60+% of pre-COVID 2 level, Profit back in Black 3 All-time high available Funds 4 Major Steps in CO2 Reduction taken 3 Analyst Presentation I March 2022
Slide 4: 21FY Financials
21FY Financials Sharp Recovery in EBITDA also Thanks to Opex Control EUR mn Total Revenue1 Opex1 +46% -16%3 2 [+25%] 2,294 [+1%] 379 2 1,823 1,572 1.537 299 3 42 1.915 1.524 1.530 20FY 21FY 20FY 21FY EBITDA EUR mn Profit before Minorities >100% [>100%] 757 2 20FY 21FY 3 379 >100% 92 48 378 20FY 21FY
Slide 5: 21FY Passenger Review
21FY Passenger Review Increasing Traffic Momentum in 2H 21 Monthly Passenger Performance vs. 2019 4Q21 Highlights: Airports with >50% share Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec in % 0 St. Petersburg Greece and Antalya back at 90% in October -20 Brasil Brasil with strongest YE Antalya Mome
Slide 6: 2M22 Passenger Review
2M22 Passenger Review Soft Start to 2022 due to Omicron Frankfurt Daily Passengers 7-day average 2019 2021 2022 2022 Projection 225.000 200.000 175.000 ~65-70% of 2019 expected for 150.000 start of Easter Season 125.000 51% of 2019 53% of 2019 100.000 40% of 2019 75.000 “Omicron Trough“ 50.000 25.00
Slide 7: Frankfurt 2022 Summer Outlook
Frankfurt 2022 Summer Outlook About 80% of pre-COVID Capacities expected Ryanair Base Closure largely Strong Schedule on Movements: ~80% of 2019 taken up by Market, a.o., Start US Routes and Seats: ~80% of 2019 of Eurowings Discover Leisure Destinations Operations 7 Analyst Presentation I March 2022
Slide 8: Business Update: Frankfurt Staff Restructuring
Business Update Frankfurt Staff Restructuring Ground Handling Number of Employees (as per Reporting Date) - 77% of 2019 record summer level working in 9.463 9.765 7.160 7.215 7.260 Ground Handling at YE 21 - Re-hirings as of Summer 21 9/30/2019 FraSec YE 2019 6/30/2021 9/30/2021 YE 2021 - 86% of 201
Slide 9: Business Update: Frankfurt Security Services
Business Update Frankfurt Security Services Partnership to strengthen Frankfurt Based Passenger Screening Performance signed on Nov 19th 2021 Step 1: Transfer of 26% Equity Stake to Sasse Group Jan. 1st 22 Step 2: Transfer of further 25% stake on Jan 1st 23 At equity Consolidation as of 2023: 1.6+k
Slide 10: Business Update: Frankfurt Terminal Security Relocation
Business Update Frankfurt Terminal 1 Security Relocation New Link 24 Lanes (current Tech) to be New Security Concept Enables Relocation of Terminal 1 replaced by 14 Lanes (new Tech) seamless Passenger Connecting Concourse B Passenger Screening in 2 Steps, Phase 1: 2025, between Concourse A and B Lan
Slide 11: Business Update: Windpark CPPA
Business Update Windpark CPPA Purchase of 85MW will reduce Commercial PPA signed with New Windpark “He Dreiht” Frankfurt CO2 Emissions by Provider EnBW on projected to be commissioned c.80k m.t. or just under Dec. 10th , 2021 by 2H26 50% of 2019 Fraport AG CO2 Emission Roadmap at Frankfurt Airport S
Slide 12: Business Update: Lima Airport Expansion
Business Update Lima Airport Expansion Construction of new Runway and Tower to be completed this Year Negotiations with Ministry of Transportation and Communications regarding new Terminal Concept in Progress Close Coordination with all Stakeholders ongoing New Terminal will be inaugurated in 2025 1
Slide 13: Outlook
Outlook Clear Positive Group Results expected! 19FY Results 21FY Results 22FY Outlook 24.8 mn Passengers FRA 70.6 mn Between ~55% and ~65% of 2019 (35% of 2019) Revenue €3.71 bn €2.14 bn €~3 bn, incl. €~400mn IFRIC 12 EBITDA €1,180 mn €757 mn €~760 mn to €~880 mn EBIT €705 mn €314 mn €~320 mn to €~4
Slide 14: Unchanged Medium-Term Outlook
Outlook 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! 14 Analyst Pres
Slide 15: 21FY CFO
Analyst Presentation I March 2022 21FY CFO Dr. Stefan Schulte, CEO I Prof. Dr. Matthias Zieschang, CFO
Slide 16: 21FY Cash Flow
21FY Cash Flow Capex as expected, Positive FCF ex. T3 and Lima EUR mn -64 6,370 -267 -41 -23 +27 -7 -603 5,534 +393 -197 -27 -27 Free Cash Flow 21FY: € -772mn 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 YE
Slide 17: 2H21 Cash Flow
2H21 Cash Flow Very strong Cash Flow, despite low Pax Levels and Growth Projects Inflows OCF matches 2H19 level of EUR 584mn; Op. Cash Flow 428 588 ex. Govt. compensation: 73% of 2H19 Brazil Capex 5 Outflows Brazil & Greece running Greece Capex 4 on Maintenance Level Other Capex 116 Well in line wit
Slide 18: 21FY Cash Management
21FY Cash Management New EUR 200mn Loan further bolstered Liquidity this All-time high Available Funds of EUR c.4.5bn morning, March 15th Cash & Financial Assets (Liquidity) Committed Credit Lines & Finance EUR mn +200 5.000 EUR +2,799mn 4,506 4,448 4,475 4.500 4,378 4.000 3.500 2,973 3,110 3.478 3.
Slide 19: 22FY Cash Outlook
22FY Cash Outlook Capex, Cash Flow & Net Debt Frankfurt T3 Capex: €~550mn 2022 FCF & Net Debt Other Capex: Bridge: €~250mn EUR c.1.2 bn Capex FCF: + EUR c.50mn Fixed Concession Payments negative & Borrowing Cost + EUR c.200mn Interest and Tax Lima Payments Capex: + EUR min.300mn AYT Initial Equity l
Slide 20: Aviation Segment
Aviation Segment Positive EBIT thanks to Cost Control and Extras EUR mn 21FY 20FY 19FY 4Q21 4Q20 4Q19 − EBITDA positively impacted by EUR 58mn Revenue 588 441 1,027 165 87 244 security settlement and EUR 160mn state Charges 362 289 816 122 50 193 compensation Security 194 120 161 35 30 39 − EUR c.14
Slide 21: Retail & Real Estate Segment
Retail & Real Estate Segment Real Estate Business on 2019 Level, EBITDA reaches 63% of 2019 EUR mn 21FY 20FY 19FY 4Q21 4Q20 4Q19 − Resilient Real Estate business achieves Revenue 319 295 508 87 69 136 pre-COVID level Retail 72 79 221 20 15 59 − Parking revenues continue to outperform Real Estate 169
Slide 22: Ground Handling Segment
Ground Handling Segment Clear Cost Focus, 2H21 EBITDA slightly Negative EUR mn 21FY 20FY 19FY 4Q21 4Q20 4Q19 − Quicker revenue recovery compared to Revenue 386 319 707 117 69 170 passenger development, a.o., due to MTOW Ground Hand. 221 178 359 64 40 86 and aircraft movement related charges Central
Slide 23: Frankfurt Segments
3 Frankfurt Segments Cost Savings well on Track! EUR mn Total Opex Staff Cost Other Opex EUR -406mn EUR -258mn EUR -148mn 1.578 1,4971 1.198 1.172 899 962 1 663 641 679 535 531 409 382 394 393 370 290 345 219 272 266 270 270287 220 235 225 214 155 190 146 148 149 145165182 162 159 168 156126 135 121
Slide 24: Intl. Activities & Services Segment
Intl. Activities & Services Segment Underlying EBITDA of EUR 257mn = ~57% Recovery EUR mn 21FY 20FY 19FY 4Q21 4Q20 4Q19 − Revenue excl. IFRIC 12 recovered to c.60% Revenue 850 622 1,464 273 134 304 of 19FY and c.74% in 2H21 IFRIC 12 242 225 446 97 54 81 − EBITDA positively impacted by ex IFRIC 12 60
Slide 25: Appendix
Analyst Presentation I March 2022 Appendix Dr. Stefan Schulte, CEO I Prof. Dr. Matthias Zieschang, CFO
Slide 26: Group P+L
Appendix Group P+L € million 2021 FY 2020 FY Revenue 2,143.3 1,677.0 Other internal work capitalized 38.0 37.9 Other operating income 354.6 81.8 Total revenue 2,535.9 1,796.7 Cost of materials –750.7 –688.6 Personnel expenses –884.3 –1,212.1 Depreciation and amortization –443.3 –457.5 Other operatin
Slide 27: Cash Flow
Appendix Cash Flow € million 2021 FY 2020 FY € million 2021 FY 2020 FY Cash flow from operating activities 218.9 –124.9 Investments in airport operating projects –277.1 –266.8 Result attributable to shareholders of Fraport AG 82.8 –657.6 Investments for other intangible assets –4.4 –14.1 Capital exp
Slide 28: Financial Position
Appendix Financial Position Assets Liabilities and equity December 31, 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 3,416.4 3,221.2 Capit
Slide 29: Repayment Profile
Appendix Repayment Profile 9.934 10.000 in € mil. 9.000 €8.5 bn Fraport AG debt 8.000 7.000 €1.07 bn Greece debt Average debt condition ~ 2.1 % interest rate 6.000 € 297 mn Brazil debt 5.000 € 62 mn Lima debt 4.000 4,506 3.564 3.000 3,564 2.000 10 10 12 39 31 8 66 195 46 82 13 1.000 62 37 14 0 75 17
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: State Compensation for Parts of Operating Cost during 1st Lockdown 2020 International Activities / Fraport USA 4Q 20 EUR +11.0mn Other Inco
Slide 31: 21FY International Holdings
Appendix 21FY International Holdings Fully consolidated Group companies € million Share in % Revenue1) EBITDA EBIT Result 21FY 20FY Δ% 21FY 20FY Δ% 21FY 20FY Δ% 21FY 20FY Δ% Fraport USA 100 67.9 39.1 +73.7 57.3 8.5 > 100 20.7 –35.1 – 8.5 –29.9 – Fraport Slovenija 100 21.7 16.8 +29.2 7.7 –2.1 – –3.0
Slide 32: EBITDA Break Even Level
Appendix Fully Consolidated Airport Activities EBITDA Break Even Level 2020 Passenger break even level 2020 Passenger break even level As % of 19FY per day per annum Frankfurt ~45k ~16mn ~23% Greece ~20k ~7.5mn ~25% Brazil ~15k ~5.5mn ~35% Lima ~7k ~2.5mn ~10% Twin Star ~2.8k ~1mn ~20% Ljubljana ~1.
Slide 33: On our Way to "The New Fraport"
Appendix On our Way to “The New Fraport” The New Fraport Operational Excellence Strong Cost Control Greener 33 Analyst Presentation I March 2022
Slide 34: 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 35: 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 36: 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 37: 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 38: 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 39: Financial Drivers of the new Concession
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 40: Dates: 2022 Financial 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 Analyst Presentation I March 2022