Flughafen Zurich Ag · SIX:FHZN
Flughafen Zurich — H1 2020 Earnings Presentation
38 slides from Flughafen Zurich's earnings presentation, Aug 21, 2020
Slide 1: Half Year Results 2020
Half Year Results 2020 Presentation to Investors & Analysts Stephan Widrig, Chief Executive Officer Lukas Brosi, Chief Financial Officer August 21, 2020
Slide 2: Content
Content 01 Business Update 02 Financial Update 03 Outlook 04 Q&A 05 Appendix 2
Slide 3: Traffic Development ZRH
Traffic Development ZRH Business Update Significant drop due to COVID-19 Passengers (in million) Seat Load Factor Financial Update 2.7 2.7 2.9 76% 80% 77% 82% 2.4 69% 72% 2.1 2.0 72% 73% 2.1 2.0 57% 57% 0.0 0.0 0.2 35% 0.9 20% Outlook January February March April May June January February March Apri
Slide 4: Actions Taken: Response to COVID-19
Actions Taken Business Update Response to COVID-19 Zurich • Operations: Temporarily closed parts of the airport (i.e. Dock A and E); enhanced safety and hygiene protocols to protect well-being of passengers, visitors and employees Financial Update • Operating Costs: Reduced personnel expenses throug
Slide 5: Milestones
Milestones 5
Slide 6: Milestones Half Year 2020
Milestones Business Update Half Year 2020 • Extension of charges period: Agreement with airports users reached at current levels Financial Update Airport Charges • Duration: Flexible mechanism, depending on cumulated return of regulated business • Regulated return: New regulatory WACCs of 5.0% start
Slide 7: Aviation
Aviation 7
Slide 8: Aviation Business: Heavily impacted by COVID-19
Aviation Business Business Update Heavily impacted by COVID-19 The outbreak of the pandemic depicted unprecedented times in Zurich. Financial Update Traffic came almost to a standstill; however, Zurich Airport always facilitated cargo services for continuity of supply chains, enabled repatriation fl
Slide 9: Flight Operations Charges
Flight Operations Charges Business Update Agreement reached with Airport Users Financial Update • COVID-19 • Start of hits Europe • Negotiations negotiations completed March Spring • Flexible July • Regulator • Signing of takes part as observer mechanism for tariffs agreement Key Points of Agreement
Slide 10: Commercial Business and Real Estate
Commercial Business and Real Estate 10
Slide 11: Resilient Real Estate Business
Commercial Business and Real Estate Business Update Resilient Real Estate Business Fixed contract real estate business is performing in line with expectations and Financial Update shows only minor shortfalls in rent. The commercial business, which is typically structured as a revenue share with a Mi
Slide 12: The Circle: Tenants are moving in
The Circle Business Update Tenants are moving in Pre-letting Development Financial Update >85% >80% ~75% ~66% ~60% >60% Outlook August 2018 March 2019 August 2019 March 2020 Currently Target Year End New Tenants signed this year Q&A Appendix 12
Slide 13: International
International 13
Slide 14: International: Concessions also impacted by COVID-19
International Business Update Concessions also impacted by COVID-19 Significant reduction of traffic starting in mid March due to COVID-19. All majority owned Financial Update international concessions remained open and operated on minimal capacity. BRAZIL • Florianópolis − Reduction of workforce by
Slide 15: Content
Content 01 Business Update 02 Financial Update 03 Outlook 04 Q&A 05 Appendix 15
Slide 16: Declining Revenue and Profit
Declining Revenue and Profit Business Update Half Year 2020 Revenue (in million CHF) Revenue Split (in million CHF) Financial Update 588 588 • Declining revenue • Not all revenues correlate numbers as a result of directly with traffic 543 227 COVID-19 310 development 310 • Further lowered by less •
Slide 17: Lower Non-Aviation Figures
Lower Non-Aviation Figures Business Update Half Year 2020 Commercial & Parking (in million CHF) Facility Management (in million CHF) Financial Update • As a result of the • Higher fixed rental 69 121 lockdown, all commercial income due to acquisition revenues are lower of additional real estate • Du
Slide 18: Cost-Cutting Initiatives Working
Cost-Cutting Initiatives Working Business Update Half Year 2020 Personnel Expenses (in million CHF) Police & Security (in million CHF) Financial Update • Implementation of short- • Reduced orders for the 61 time working hours in mid 106 Canton of Zurich police March to receive partial force resulted
Slide 19: Financial Key Ratios
Financial Key Ratios Business Update Half Year 2020 Net Financial Debt / EBITDA (excl. noise) Operating Cash Flow (incl. noise, in million CHF) Financial Update • Net Financial Debt 2.8x • Significantly lower net stands at CHF 1,225m profit led to a reduction in 201 operating cash flow of around 36%
Slide 20: Group CAPEX
Group CAPEX Business Update Half Year 2020 Financial Update The Circle ~CHF 72 million New Baggage Sorting System ~CHF 30 million Outlook Q&A Total Group CAPEX of Appendix CHF 211 million Restoration Maintenance Area ~CHF 14 million Expansion of Landside Area ~CHF 13 million 20
Slide 21: Content
Content 01 Business Update 02 Financial Update 03 Outlook 04 Q&A 05 Appendix 21
Slide 22: Outlook: Guidance 2020
Outlook Business Update Guidance 2020 2019 Actual 2020 Guidance Financial Update Passengers ZRH 31.5 million • Approximately 10 million passengers assuming a recovery mainly in Q4 2020 Revenues CHF 1,210 million • Flat tariffs in 2020 • Commercial revenue based on Minimum Annual Guarantee (MAG), no
Slide 23: Mid-Term CAPEX Roadmap Outlook
Mid-Term CAPEX Roadmap Outlook Business Update Zurich and International Zurich • Total CAPEX of CHF 250m to 300m p.a. expected in Zurich going forward Financial Update • Maintenance CAPEX accounts for around CHF 100m to 150m p.a. • Regulated CAPEX estimated to account for roughly 60% • Mid-term CAPE
Slide 24: Content
Content 01 Business Update 02 Financial Update 03 Outlook 04 Q&A 05 Appendix 24
Slide 25: Corporate Calendar and Contact Information
Corporate Calendar Business Update Contact Information • August 25, 2020 Lukas Brosi Financial Update MainFirst Transportation Conference (Virtual) Chief Financial Officer • September 29/30, 2020 Santander Infra Conference (Virtual) • November 24, 2020 Outlook Deutsche Bank BLT Conference (Virtual)
Slide 26: Content
Content 01 Business Update 02 Financial Update 03 Outlook 04 Q&A 05 Appendix 26
Slide 27: Liquidity and Debt Overview
Liquidity and Debt Overview Business Update As of June 30, 2020 Liquidity (in CHFm) Bond Maturity Profile (in CHFm)* Financial Update Committed Credit Facilities CHF 160m 500 400 Total utilization (incl. guarantees) CHF 75m In CHFm 300 Available short-term credit facilities CHF 85m 200 100 Cash bala
Slide 28: Zurich Airport at a Glance
Zurich Airport at a Glance Business Update Diversified Airport Operator AVIATION / REGULATED NON-AVIATION / UNREGULATED Financial Update 2019 revenue of CHF 661 million Commercial, Real Estate & Services • “To satisfy the demand for direct connections to 2019 revenue of CHF 422 million the world’s m
Slide 29: Group Key Figures YTD
Group Key Figures YTD Business Update Income Statement Including noise Excluding noise in million CHF Jan – Jun 2020 Jan – Jun 2019 Jan – Jun 2020 Jan – Jun 2019 Financial Update Aviation revenue 130.4 315.4 126.9 309.9 Non-aviation revenue 180.0 272.6 180.0 272.6 Revenue 310.4 588.0 306.9 582.5 EBI
Slide 30: Revenue Breakdown: Aviation Business
Revenue Breakdown Business Update Aviation Business in million CHF Jan – Jun 2020 Jan – Jun 2019 Financial Update Passenger-related operations charges 73.5 209.1 Landing charges 18.8 42.4 Aircraft-related noise charges 3.5 5.5 Emission charges 0.9 2.0 Parking charges 12.3 13.2 Freight revenue 3.3 4.
Slide 31: Revenue Breakdown: Non-Aviation Business
Revenue Breakdown Business Update Non-Aviation Business Jan – Jun 2020 Jan – Jun 2019 Financial Update in million CHF Retail, tax & duty-free 33.9 54.7 Food & beverage operations 5.5 9.1 Revenue from multi-story car parks 21.4 39.2 Other commercial revenue 11.7 17.5 Total commercial revenue 72.5 120
Slide 32: Cost Overview
Cost Overview Business Update Operating Expenses Breakdown in million CHF Jan – Jun 2020 Jan – Jun 2019 Financial Update Personnel expenses 94.0 105.8 Police and security 50.4 61.2 Energy and waste 9.5 10.3 Maintenance and material 12.7 18.8 Other operating expenses 22.1 27.7 Sales, marketing, admin
Slide 33: Passenger Development: Global Market Figures
Passenger Development Business Update Global Market Figures (Jan – Jun 2020) Worldwide 2020 Financial Update From/to ZRH -64.3% Global market -58.5% Europe 2020 Share ZRH 72.0% From/to ZRH -65.2% Global market -64.0% Middle East 2020 Outlook Share ZRH 6.1% North America 2020 From/to ZRH -61.0% Share
Slide 34: HY2020 Alliance Share ZRH
HY2020 Alliance Share ZRH Business Update Largest Alliances in ZRH Alliance Share ZRH Financial Update 67.1% Lufthansa Group 68.3% 65.8% Star Alliance Outlook 65.8% 6.7% YTD Passenger Growth Oneworld 5.7% -65.0% Lufthansa Group Q&A -64.4% Star Alliance 5.1% Skyteam 4.8% -57.9% Oneworld -62.7% Skytea
Slide 35: Lufthansa Hubs Passenger Development
Lufthansa Hubs Passenger Development Business Update One Year Hub Comparison (Jul 2019 – Jun 2020) Lufthansa Hubs Passengers Financial Update 20% 0% -20% Outlook -40% -60% Q&A -80% -100% Appendix -120% Jul 19 Aug 19 Sep 19 Oct 19 Nov 19 Dec 19 Jan 20 Feb 20 Mar 20 Apr 20 May 20 Jun 20 ZRH BRU FRA VI
Slide 36: Traffic Ratios
Traffic Ratios Business Update Seat Load Factor, Passengers per Movement and Take-Off Weight Traffic Ratios ZRH Financial Update 80% 135 75% 77% 75% 76% Passengers per Movement (PAX) Average Take-Off Weight (tons) 125 125 74% 75% 73% 74% 73% 120 120 Outlook 70% 71% Seat Load Factor 71% 114 112 109 6
Slide 37: Passengers and Movements Development
Passengers and Movements Development Business Update Since ZRH Privatization Historical Traffic Numbers Financial Update 35 370'000 31.1 31.5 29.4 30 27.7 350'000 26.3 24.9 25.5 24.3 24.8 Total Passengers (in millions) 25 Air Traffic Movements (ATM) Outlook 22.6 22.9 22.1 21.9 330'000 21.0 20.7 19.2
Slide 38: Disclaimer
Disclaimer Forward-Looking Statements This document has been prepared by Flughafen Zürich AG 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 shoul