Fraport Ag · XETR:FRA
Fraport — Q1 2021 Earnings Presentation
38 slides from Fraport's earnings presentation, May 2021
Slide 1: Analyst Presentation May 2021 – 1Q21
Analyst Presentation l May 2021 1Q21 CFO Dr. Matthias Zieschang
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: Last 12M Review
1Q21 Analyst Presentation Last 12M Review COVID-19 Impacts on our Business Financial Measures against COVID-19 Passengers FRA -85% mn 67 min. 4,000 Employee Reduction 10 (-20% of Staff in Germany) Group Revenue 2Q19-1Q20 -62% 2Q20-1Q21 387mn LTM Staff Cost Savings (-32%) excl. IFRIC 12 EUR mn 3,174
Slide 4: Frankfurt Restructuring Progress
1Q21 Business Update Frankfurt Restructuring Progress 96% >100% 4,000 75%~3,009 ~3,858 >4,000 Employee Employee Employee Employee Reduction Reduction Reduction Reduction Target 1 Achievement Achievement Expected Mar 31, 2021 Apr 1, 2021 Dec 31, 2021 4 1Q21 Analyst Presentation l May 2021 1 Measured
Slide 5: Frankfurt Security Restructuring – Takeover of Responsibility
1Q21 Business Update Frankfurt Security Restructuring Takeover of Responsibility Federal Ministry and Fraport agreed on future structure of security checks at Frankfurt Airport Federal Ministry and Police will continue to set framework conditions and supervise security checks Fraport will as
Slide 6: Traffic Review
1Q21 Traffic Review Impact of COVID-19 on Passenger Numbers Monthly Passenger Performances 1Q Passenger Performances % vs. 20 272% vs.20 -78% -68% -79% -51% -70% -90% -51% -18% +41% 168% vs.19 -83% -71% -83% -57% -70% -95% -58% -22% -34% -73% 150 Xi‘An 14.8 50 1Q19 1Q20 1Q21 100 St. Petersburg Feb.-
Slide 7: Financial Review
1Q21 Financial Review Positive EBITDA due to Internationals and Security Settlement Total Revenue1 -39% EUR mn 614 378 Adverse Revenue Impacts across Portfolio FRA Segments EUR 286mn / International Activities EUR 92mn1 (PY: EUR 446mn) / (PY: EUR 169mn)1 gadd 1Q20 1Q21 -30% Opex1 485 Strong Cost Con
Slide 8: Cash Management – FCF negative due to severance and capex
1Q21 Cash Management FCF negative due to Severance Payments and Capex in € mil. -2 -10 0 +3 6,026 -82 -3 -123 -9 -13 -39 -214 5,534 Free Cash Flow 1Q21: € -495mn 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 9: Cash Management – Firepower reaches almost EUR 4.4bn
1Q21 Cash Management Firepower reaches almost EUR 4.4bn1 Cash & Financial Assets (Liquidity) Committed Credit Lines & Finance in5,000 € mil. EUR +2,671mn 4,378 4,500 4,000 3,500 2,973 3,110 3,000 3,478 2,500 2,236 2,149 2,000 1,707 2,214 1,500 2,020 1,342 1,569 1,000 1,156 500 Dec. 31, 2019 Mar. 31,
Slide 10: Cash Management – Balanced Repayment Profile
1Q21 Cash Management Balanced Repayment Profile 10,000 in € mil. 9,504 9,000 €8.1 bn Fraport AG debt 8,000 7,000 €1.09 bn Greece debt Average debt condition ~ 2.0 % interest rate 6,000 € 251 mn Brazil debt 5,000 € 24 mn Lima debt 4,000 4,378 3,478 3,000 3,478 2,000 7 11 31 10 169 62 63 27 39 8 10 12
Slide 11: Segment Aviation
1Q21 Segment Aviation Cost Control and Security Settlement dampen COVID-19 Impact EUR mil. 1Q21 1Q20 % 1Q19 % Disproportionately low revenue decline Revenue 139 189 (26) 225 (38) compared to pure passenger performance, Charges 47 144 (68) 175 (73) a.o., due to landing and take-off charges Security
Slide 12: Segment Retail & Real Estate
1Q21 Segment Retail & Real Estate Resilient Real Estate Business, All time High Retail per Passenger EUR mil. 1Q21 1Q20 % 1Q19 % Segment revenues clearly outperform Revenue 63 102 (38) 116 (46) passenger development Retail 10 38 (73) 49 (79) Resilient performance of Real Estate Real Estate 41 42
Slide 13: Segment Ground Handling
1Q21 Segment Ground Handling Clear Cost Focus, but further Restructuring needed EUR mil. 1Q21 1Q20 % 1Q19 % Disproportionately low revenue decline Revenue 67 138 (52) 161 (58) compared to pure passenger development, Ground Hand. 40 70 (43) 81 (51) a.o., due to MTOW related charges Central Infra. 2
Slide 14: Frankfurt Segments
1Q21 Frankfurt Segments Strong Cost Savings in 1Q21 EUR mn Total Opex Staff Cost Other1 EUR -112mn EUR -71mn EUR -41mn 382 370 270 220 214 149 162 156 121 1Q19 1Q20 1Q21 1Q19 1Q20 1Q21 1Q19 1Q20 1Q21 Clear cost reduction by c.30% compared to 1Q19 Average monthly cost reduced to EUR c.90mn from E
Slide 15: Major International Holdings
1Q21 Major International Holdings Positive EUR c.13mn EBITDA thanks to Countermeasures 1Q21 Passengers 1Q21 EBITDA in € mil. and 1Q19 change Lima 9 1.6mn PAX -71% Brasil 2 1.7mn PAX -57% Greece -11 320k PAX -71% USA 14 Twin Star -1 61k PAX -70% Slovenija 0 18k PAX -95% Aggregate EBITDA of EUR 13mn 1
Slide 16: Segment International Activities & Services
1Q21 Segment International Activities & Services Cost Reduction offset Revenue Decline = Positive EBITDA EUR mil. 1Q21 1Q20 % 1Q19 % Revenue excl. IFRIC 12 down by more than Revenue 116 232 (50) 302 (62) 50% IFRIC 12 40 68 (28) 125 (68) Staff cost reduction in Frankfurt Services Rev. ex IFRIC 12
Slide 17: Unchanged Group Outlook
Unchanged Group Outlook Near-Term low Visibility / Mid-Term Confidence! 19FY Results 20FY Results 21FY Outlook Passengers FRA 70.6 mil. 18.8 mil. Below 20 to ~25 mil. Expected Return to 19FY Level by ~2026 Revenue €3.71bn €1.68 bn €~2 bn Adj. value at €+48 mil. €~300 to ~450 mil. EBITDA €1,180 mil
Slide 18: Liquidity cushion significantly strengthened despite falling interest rates
Trotz Krise: Liquiditätspolster signifikant gestärkt bei rückläufigen durchschnittlichen Zinsen Mio EUR +1,396 Mio EUR % 3500 6 2,973 3,102 3000 5 2500 2,236 2,149 4 2000 1,706 3 1500 2.4 2.3 2.1 2.1 2 Analyst Presentation l May 2021 2 1.4 1.4 Appendix 1000 1.3 1.3 1.3 500 1 0 0 CFO Dr. Matthias Zie
Slide 19: Group P+L
Appendix Group P+L € million 1Q 2021 1Q 2020 Revenue 385.0 661.1 Other internal work capitalized 9.5 9.6 Other operating income 23.5 11.3 Total revenue 418.0 682.0 Cost of materials –137.8 –222.3 Personnel expenses –207.9 –292.6 Other operating expenses –32.1 –38.0 EBITDA 40.2 129.1 Depreciation and
Slide 20: Group Cash Flow
Appendix Group Cash Flow € million 1Q 2021 1Q 2020 € million 1Q 2021 1Q 2020 Result attributable to shareholders of Fraport AG –64.9 –29.0 Investments in airport operating projects –69.3 –97.7 Investments for other intangible assets –1.0 –3.1 Result attributable to non-controlling interests –12.6 –6
Slide 21: Group Financial Position
Appendix Group Financial Position Assets Liabilities and equity March 31, December 31, March 31, December 31, in € million 2021 2020 in € million 2021 2020 Non-current assets Shareholders’ equity Issued capital 923.9 923.9 Goodwill 19.3 19.3 Capital reserve 598.5 598.5 Investments in airport operati
Slide 22: Overview of current Travel Restrictions
Appendix Overview of current Travel Restrictions1 Partly restricted Partly restricted Partly restricted Immigration from, a.o., Immigration possible for EU Immigration for foreigners Canada, Mexico, EU, Brazil, UK citizens restricted (except: visa & South Africs restricted applications for dir
Slide 23: Frankfurt 20FY Performances
Appendix Frankfurt 20FY Performances Aviation 20FY 19FY % Retail / RE 20FY 19FY % GH 20FY 19FY % Revenue 441 1,027 -57.1 Revenue 295 508 -42.0 Revenue 319 707 -54.9 Adj. EBITDA1 -184 273 n/a Adj. EBITDA1 231 398 -42.0 Adj. EBITDA1 -126 60 n/a Staff Prov. 96 - n/a Staff Prov. 16 - n/a Staff Prov. 140
Slide 24: International Segment
Appendix International Segment IAS Segment 20FY 19FY % IAS Segment 2Q-4Q20 2Q-4Q19 % Revenue 622 1,464 -57.5 Revenue 390 1,162 -66.4 Rev ex. IFRIC12 398 1,018 -60.9 Rev ex. IFRIC12 234 841 -72.2 Other Income 56 12 >100 Other Income 52 10 >100 Staff Cost1 251 324 -22.5 Staff Cost1 173 244 -29.1 Other
Slide 25: International Activities
Appendix International Activities Except for Ljubljana and Xi’An all International Holdings with positive 20FY EBITDA Fully consolidated Group companies € million Share in % Revenue1) EBITDA EBIT Result 2020 2019 Δ% 2020 2019 Δ% 2020 2019 Δ% 2020 2019 Δ% Fraport USA 100 39.1 85.1 –54.1 8.5 50.2 –83.
Slide 26: 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 27: Frankfurt Operations – 2020 Passenger and Adjusted EBITDA
Appendix – Frankfurt Operations1 Review of 2020 Passenger and adjusted EBITDA Development2 Adjusted EBITDA FRA Pax in EUR mil. per month 2020 adjusted EBITDABreak Even level per day 40 at c.50k Pax per day 160,000 = 18mn Pax on FY Basis 20 34 36 120,000 11 0 -4 1 80,000 -8 -12 -9 -19 -27 Pax / day -
Slide 28: Comprehensive Countermeasures at International Activities
Appendix – Segment International Activities Comprehensive Countermeasures at International Activities 1│ OPEX 2│ CAPEX 3│Compensation - Strict cost saving programs - Mandatory capex programs in - Pandemic defined as force launched Greece and Brazil completed majeure in concession contracts - Reducti
Slide 29: EBITDA Break Even Levels and 21FY Outlook
Appendix – Segment International Activities NEW EBITDA Break Even Levels and 21FY Outlook 2020 Passenger break 2020 Passenger As % of 19FY 21FY Passenger Expectation1 even level per day break even level Greece ~20k ~7.5mn ~25% Slightly above 50% of 19FY Brazil ~15k ~5.5mn ~35% More than 50% of 19FY
Slide 30: On our Way to 'The New Fraport'
Appendix On our Way to “The New Fraport” The New Fraport Operational Excellence Strong Cost Control Greener 30 1Q21 Analyst Presentation l May 2021
Slide 31: 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 32: Restructuring of Ground Handling
Appendix – On our Way to “The New Fraport” Operational Excellence Restructuring of Ground Subsidiary enables Handling to enhance Transition expected for increased focus and competitiveness and keep January 1, 2022 flexibility operations inside the Group 32 1Q21 Analyst Presentation l May 2021
Slide 33: 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), thereof more than 3,000 sustainable even with strong traffic growth – All non-
Slide 34: 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 35: Focus on Long Term CO2 Reduction
Appendix – Greener Focus on Long Term CO2 Reduction Metric tons CO2 Traffic units in mil. 2 FY 2020 CO2 Emissions for Fraport AG at Frankfurt Airport dropped largely due to reduced operations by 23.7% to 129,980mt All measures to achieve 2030 and 2050 reduction targets conceptually initiated Frankfu
Slide 36: New Direct Intercity-Links
Appendix – Greener New Direct Intercity-Links – Today, 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, therefor
Slide 37: Dates – 2021 Financial Calendar
Appendix Dates 2021 Financial Calendar Mar 16, 2021 May 11, 2021 Jun 1, 2020 Aug 3, 2020 Nov 9, 2020 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 38: 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 38 1Q21 Analyst Presentation l May 2021