Fraport Ag · XETR:FRA
Fraport — 9M 2020 Earnings Presentation
40 slides from Fraport's earnings presentation, November 2020
Slide 1: IR Presentation 9M 2020 Results and Traffic
9M 2020 Results I 9M 2020 Traffic IR Presentation Dr. Stefan Schulte Dr. Matthias Zieschang Titelmasterformat durch Klicken bearbeiten Formatvorlage durch Klicken bearbeiten
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: Financial Overview, Business Update, Outlook, Detailed Financials
1 I Financial Overview 2 I Business Update 2 3 I Outlook 3 4 I Detailed Financials 4
Slide 4: Financials impacted by lower Traffic & Restructuring Provision
Financial Overview Financials impacted by lower Traffic & Restructuring Provision € mil. Group revenue Group EBITDA Group result after minorities 2,852 2,4871 948 379 1,318 1,1471 52² -515 -228 9M 2019 9M 2020 9M 2019 9M 2020 9M 2019 9M 2020 Group revenue excl. IFRIC 12 down by 54%, due to lower t
Slide 5: Q3 Turnaround following Q2 Lockdown
Financial Overview “Q3 Turnaround” following “Q2 Lockdown” Underlying EBITDA* € mil. in € mil. Q2 20 Q3 20 100 Q2 20 Q3 20 46 29 50 200 0 0 -50 -17 -18 -200 -28 -100 -400 -189 -89 -335 -150 -107 -600 -457 FRA Segments* Int. Segment* Group* Op. CF Free CF 1 I Despite low Traffic Volumes: Positive und
Slide 6: Business Update
1 I Financial Overview 2 I Business Update 3 I Outlook 4 I Detailed Financials
Slide 7: 9M 2020 Traffic Performances
Business Update Frankfurt OCT: -83.4% 9M 2020 Traffic Performances Frankfurt YTD: -71.6% Frankfurt Lima Greece Brasil Twin Star Ljubljana Antalya St. Petersburg Xi'An 10% Group 1 0% “V-Performer” Sep: ~0 to -30% -10% Xi’An & St. Pete -20% -30% -40% Group 2 “Mid-Performer” -50% Sep: -30 to -70% -60%
Slide 8: Substantial Cost Cutting Measures initiated
Business Update Substantial Cost Cutting Measures initiated Staff Capex Cost Capex Non-Staff Cost EUR EUR c.1bn c.250mnSavings Savings spread withover full EUR c.1bn Savings spread over EUR c.100 – 150mn Savings p. a. effect next 7-8 by 2022 Yrs next 7-8 Yrs • Reduction Continuation of Frankfurt of
Slide 9: Frankfurt Staff Cost Reduction
Business Update Frankfurt Staff Cost Reduction 1 2 Reduction of ~4,000 Employees Continuation of = 30% Sustainable Reduction of Frankfurt Admin Staff and Short-time Work 20% of Frankfurt Operational Staff – in line with Traffic Forecast Flexible Instrument No extension of ~-1.3k Employees = to Adjus
Slide 10: Capex Programs
Business Update Capex Programs Frankfurt T3 & Pier G commissioning: Brazil Capex Program to be Capex: Postponed to 2025 completed end 2021 depending on demand €~150mn Capex Forecast 2021: FCF: Capex Forecast until 2024: €~50mn negative €~550-650mn p.a. Capex Forecast 2022 on. Other Capex until 2024:
Slide 11: Outlook
1 I Financial Overview 2 I Business Update 3 I Outlook 4 I Detailed Financials
Slide 12: Clearly negative Results due to Corona
Outlook Clearly negative Results due to Corona 2019 Results 2020 Outlook Passengers FRA 70.6 mil. c.18-19 mil. Revenue excl. IFRIC 12 € 3.26 bn Up to -60% Slightly positive w/o restructuring provision EBITDA € 1,180 mil. Clearly negative incl. restructuring provision Clearly negative with or w/o EBI
Slide 13: Detailed Financials
1 I Financial Overview 2 I Business Update 3 I Outlook 4 I Detailed Financials
Slide 14: OCF broadly Break-Even – Cash Burn due to Capex
Detailed Financials OCF broadly Break-Even – Cash Burn due to Capex Cash Burn Q2 2020 Cash Burn Q3 2020 „Lockdown“ Period Summer Season Frankfurt Frankfurt Internationals Internationals EUR 100 mn EUR 110 mn EUR 40 mn EUR 10 mn 140 85 76 Jul Aug Sep Monthly Cash Burn of c. EUR 150 mn Monthly Cash Bu
Slide 15: FCF negative due to Capex and COVID-19 Impacts on OCF
Detailed Financials FCF negative due to Capex and COVID-19 Impacts on OCF in € mil. -6 -24 -19 +3 +25 5,110 -261 -79 -365 -74 -125 -38 4,147 Free Cash Flow 9M 2020: € -988 mil. Net debt Brazil Other Fixed IAS 23 IFRS Divs from Other Net debt OCF Greece Lima FRA YE 2019 capex capex concession borrowi
Slide 16: While simultaneously Financial Bolster was increased
Detailed Financials While simultaneously Financial Bolster was increased € mn 3,253* 2,973 280 Of which: Frankfurt EUR 500 mn 1.233 953 Lima EUR 384 mn Brazil EUR 68 mn Total Greece EUR 1 mn 1,706 Secured 9M Financing Activities 1.275 Credit Lines 550 Of which: - Negative 9M FCF Frankfurt EUR 1,494
Slide 17: Maturity Profile & Cash Position as of Sep 30, 2020
Detailed Financials Maturity Profile & Cash Position as of Sep 30, 2020 € mil. 7.500 7,130 € 5.81 bn Fraport AG debt 7.000 6.500 Average debt condition € 1.09 bn Greece debt ~ 2.1 % interest rate 6.000 5.500 5.000 € 226 mn Brasil debt 4.500 4.000 3.500 2,973 3.000 2.500 953 2.000 2.020 10 155 1.500
Slide 18: Airport Performances – Frankfurt Segments 9M 2020
Detailed Financials Airport Performances – Frankfurt Segments 9M 2020 Aviation 9M 20 9M 19 % Revenue 354 783 -54.8 EBITDA* -119 225 n/a EUR -862mn Revenues & Restruc. Prov. 79 - n/a EUR -5mn Other Income Savings ratio = 30% EBITDA -198 225 n/a Offset by: EUR -259mn Opex EBIT -304 106 n/a Thereof Sta
Slide 19: Retail and Real Estate Revenues
Detailed Financials Retail and Real Estate Revenues € mil. Retail Rev. % 9M 2019 9M 2020 Shopping -67.3 7,0 5,0 Other Advertising -45.6 Other Retail Real Estate Services -48.1 Real Estate 63,5 127 Retail Total -60.8 Segment 121,0 Segment 162,0 Revenue Revenue 372.0 225.5 Revenue per PAX 4,40 Car Par
Slide 20: Airport Performances – Frankfurt Segments Q3 2020
Detailed Financials Airport Performances – Frankfurt Segments Q3 2020 Aviation 3Q 20 3Q 19 % Revenue 102 354 288 783 -64.6 -54.8 EBITDA* -43 -119 103 225 n/a EUR -373mn Revenues & Restruc. Prov. 79 - n/a EUR -6mn Other Income Savings ratio = 33% EBITDA -122 103 n/a Offset by: EUR -126mn Opex EBIT EB
Slide 21: Airport Performances – Internationals 9M 2020
Detailed Financials Airport Performances – Internationals 9M 2020 IAS Segment 9M 20 9M19 % EUR -672mn Revenues EUR -477mn ex. IFRIC 12 Revenue 489 1,160 -57.9 Savings ratio = 57% +2mn Other Income Savings ratio EBITDA* 81 370 -78.1 = 39% Offset by: EUR -381mn Opex Restruc. Prov. 46 - n/a EUR -186mn
Slide 22: Airport Performances – Internationals 3Q 2020
Detailed Financials Airport Performances – Internationals 3Q 2020 IAS Segment 3Q 20 3Q 19 % EUR -289mn Revenues EUR -247mn ex. IFRIC 12 Revenue 169 458 -63.1 Savings ratio = 46% +/- 0mn Other Income Savings ratio EBITDA* 45 201 -77.3 = 37% Offset by: EUR -134mn Opex Restruc. Prov. 46 - n/a EUR -92mn
Slide 23: New EBITDA Break Even Levels after Cost Countermeasures
Detailed Financials New EBITDA Break Even Levels after Cost Countermeasures Max. Q4 traffic decline Site PAX per day PAX per quarter Q4 2019 for break even Frankfurt* 50,000 4,500,000 16,400,000 ~ -73 % Greece 20,000 1,800,000 4,000,000 ~ -55 % Brazil 15,000 1,400,000 4,200,000 ~ -67 % Lima 7,000 64
Slide 24: Financial Outlook FY 2020E
Detailed Financials Financial Outlook FY 2020E Frankfurt: Close to EBITDA* break-even International Assets: Clearly positive EBITDA Positive Group EBITDA* 2020 *Adjusted for provision for staff restructuring program 24 IR Presentation I 9M 2020 Results I 9M 2020 Traffic
Slide 25: 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 25 IR Presentation I 9M 2020 Results I 9M 2020 Traffic
Slide 26: Appendix
Appendix Please consider the Environment before printing 26 IR Presentation I 9M 2020 Results I 9M 2020 Traffic
Slide 27: Group P+L
Appendix Group P+L € million 9M 2020 9M 2019 Q3 2020 Q3 2019 Revenue 1.317,5 2.852,2 406,9 1.069,2 Change in work-in-process 0,8 0,2 –0,2 0,0 Other internal work capitalized 28,1 28,0 9,6 9,8 Other operating income 30,3 33,7 5,3 10,4 Total revenue 1.376,7 2.914,1 421,6 1.089,4 Cost of materials –519
Slide 28: Group Cash Flow
Appendix Group Cash Flow € million 9M 2020 9M 2019 Q3 2020 Q3 2019 € million 9M 2020 9M 2019 Q3 2020 Q3 2019 Investments in airport operating projects –209,5 –479,5 –52,6 –101,3 Result attributable to shareholders of Fraport AG –515,4 378,9 –304,1 221,7 Capital expenditure for other intangible asset
Slide 29: Group Financial Position
Appendix Group Financial Position Assets Liabilities and equity September 30, December 31, September 30, December 31, € million 2020 2019 € million 2020 2019 Shareholders’ equity Non-current assets Issued capital 923,9 923,9 Goodwill 19,3 19,3 Capital reserve 598,5 598,5 Investments in airport opera
Slide 30: Aviation before adjustments to 9M 2020 EBITDA
Appendix Aviation before adjustments to 9M 2020 EBITDA in € mil. 225 -384 -119 EBITDA € -344 mil. +39 -32 +47 -13 -1 EBITDA Aviation Security Other Staff Other EBITDA Other 9M 2019 charges1 services income cost opex 9M 2020 revenue 1Aviation charges incl. reimbursements to airlines based on 2019 gro
Slide 31: Retail & Real Estate before adjustments to 9M 2020 EBITDA
Appendix Retail & Real Estate before adjustments to 9M 2020 EBITDA in € mil. 304 -99 -5 -41 +19 179 -2 -6 +9 EBITDA € -125 mil. EBITDA Retail Real Parking Other Other Staff Other EBITDA 9M 2019 Estate revenue income cost opex 9M 2020 31 IR Presentation I 9M 2020 Results I 9M 2020 Traffic
Slide 32: Ground Handling before adjustments to 9M 2020 EBITDA
Appendix Ground Handling before adjustments to 9M 2020 EBITDA in € mil. 50 EBITDA €-139 mil. -136 -89 -148 +31 +115 +2 -3 EBITDA GH Infrastructure Other Other Staff Other EBITDA 9M 2019 revenue charges revenue income cost opex 9M 2020 32 IR Presentation I 9M 2020 Results I 9M 2020 Traffic
Slide 33: International Activities & Services before adjustments to 9M 2020 EBITDA
Appendix International Activities & Services before adjustments to 9M 2020 EBITDA in € mil. 370 -25 -132 -1 -32 -15 -70 USA -33 +18 81 EBITDA € -289 mil. EBITDA Brasil Greece Twin Star Slovenija Lima USA Other EBITDA 9M 2019 9M 2020 33 IR Presentation I 9M 2020 Results I 9M 2020 Traffic
Slide 34: Airport Performances – International Majorities
Appendix Airport Performances – International Majorities Ljubljana 9M 20 9M 19 % Ljubljana 3Q 20 3Q 19 % Revenue 13 37 -63.4 Revenue 4 14 -71.4 Traffic Q3 2020 –88% EBITDA -1 14 n/a EBITDA -1 6 n/a EBITDA break even EBIT -10 6 n/a EBIT -4 3 n/a Twin Star 9M 20 9M 19 % Twin Star 3Q 20 3Q 19 % Revenue
Slide 35: Airport Performances – International Minorities
Appendix Airport Performances – International Minorities Antalya 9M 20 9M 19 % Antalya 3Q 20 3Q 19 % Revenue 78 321 -75.8 Revenue 52 183 -71.4 Traffic Q3 2020 –71% EBITDA 52 275 -81.0 EBITDA 43 163 -73.7 Positive EBITDA EBIT -32 193 n/a EBIT 16 135 -88.5 Xi‘An 9M 20 9M 19 % Xi‘An 3Q 20 3Q 19 % Reven
Slide 36: 9M 20 Frankfurt Passenger Split
Appendix 9M 20 Frankfurt Passenger Split Western Europe Domestic Eastern Europe 47% 10% 9% North America D -69% D -70% D -71% 11% Frankfurt Airport Far East D -75% Middle East 9% 5% D -74% Africa 5% D -69% Latin America D -69% 4% Continental Intercontinental 66% 34% D -60% D -69% D -72% 36 IR Presen
Slide 37: FY 2019 Frankfurt Passenger Split
Appendix FY 2019 Frankfurt Passenger Split Western Europe Domestic Eastern Europe 44% 11% 9% North America D +1% D -3% D +3% 13% Frankfurt Airport Far East D +4% Middle East 10% 5% D +1% Africa 5% D +2% Latin America D +9% 3% Continental Intercontinental 64% 36% D +4% D +0.4% D +3.4% 37 IR Presentat
Slide 38: COVID-19 Infection Rates
Appendix COVID-19 Infection Rates Slovenia New infections per 100,000 inhabitants (rolling 14-days average) USA Brazil Peru Russia Bulgaria Germany India Greece Turkey China Source: ECDC – European Centre for Disease Prevention and Control 38 IR Presentation I 9M 2020 Results I 9M 2020 Traffic
Slide 39: Dates
Appendix Dates 2020 Financial Calendar Mar 13, 2020 May 6, 2020 May 26, 2020 Aug 4, 2020 Nov 4, 2020 FY 3M AGM 6M 9M 2020 Traffic Calendar Apr12, Apr 15,2019 2020 May 14, 2020 Jun 15, 2020 Jul 13, 2020 Aug 13, 2020 3M 4M 5M 6M 7M Sep 11, 2020 Oct 13, 2020 Nov 12, 2020 Dec 11, 2020 Jan 18, 2021 8M 9M
Slide 40: 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 40 IR Presentation I 9M 2020 Results I 9M 2020 Traffic