Flughafen Zurich Ag · SIX:FHZN
Flughafen Zurich — H1 2018 Earnings Presentation
34 slides from Flughafen Zurich's earnings presentation, Aug 28, 2018
Slide 1: Half Year Results 2018 Presentation to Investors & Analysts
HALF YEAR RESULTS 2018 PRESENTATION TO INVESTORS & ANALYSTS Stephan Widrig Chief Executive Officer Lukas Brosi Chief Financial Officer 1 | August 28, 2018 © Flughafen Zürich AG
Slide 2: Content
CONTENT Business Update Financial Update Outlook Q&A Appendix 2 | August 28, 2018 © Flughafen Zürich AG
Slide 3: Group Key Figures 1H18 (excl. one-off effects)
GROUP KEY FIGURES 1H18 (EXCL. ONE-OFF EFFECTS) 14.6 million +6.4% Total Passengers 540 m CHF +10.5% Revenue 297 m CHF* +9.4% EBITDA 130 m CHF* +16.6% Profit *Excluding one-off effects: 109 m CHF 1H17: Sale of minority shareholding in Bangalore International Airport Limited, + CHF 36.3m (pre-tax) 1H1
Slide 4: Strong Performance in Aviation Business
STRONG PERFORMANCE IN AVIATION BUSINESS 6.4% rise in passenger volumes to 14.6m Local passengers of 10.4M (+6.8%) Transfer passengers of 4.1M (+5.4%) Transfer share of 28.4% Rise in air traffic movements to 134,608 whereof line & charter movements 116,891 Cargo +5.4% to 244,330 tons 4 | Augu
Slide 5: Selective Revision of the Ordinance on Airport Charges
SELECTIVE REVISION OF THE ORDINANCE ON AIRPORT CHARGES The Federal Office of Civil Aviation (FOCA) has carried out a review of the ordinance on airport charges (OAC) and decided to make a selective revision. What may change? What are Transfer Payments? FOCA suggests to increase the transfer payments
Slide 6: Enhancement of Sound Insulation Program
ENHANCEMENT OF SOUND INSULATION PROGRAM Fully covered by the Airport of Zurich Noise Fund Sound Insulation Formal Expropriation The sound insulation program is a key element of the With the award of the operating license, Flughafen Zürich AG airportʼs efforts to minimize aircraft noise exposure. The
Slide 7: Non-Aviation Business and Strategic Projects
NON-AVIATION BUSINESS AND STRATEGIC PROJECTS Successful commercial centers and parking Commercial turnover Airside +7.9% Landside -0.2% Strategic projects THE CIRCLE on track Operational takeover in Florianópolis New regional office in Asia 7 | August 28, 2018 © Flughafen Zürich AG
Slide 8: Different Centers at the Airport
DIFFERENT CENTERS AT THE AIRPORT Airside Center Landside Center Passenger Zone Public Zone Stores include: Duty Free, Bucherer, Gucci, Stores include: H&M, Migros, Interdiscount, Lindt, IWC, Hugo Boss, Swatch etc. Läderach, Ochsner Sport etc. Only accessible to passengers; hence Publically accessibl
Slide 9: Commercial Business – Development
COMMERCIAL BUSINESS – DEVELOPMENT 300 CHF 284.8 CHF 271.7 CHF 258.6 CHF 257.4 CHF 253.4 CHF 256.6 250 21.5% 200 in m CHF 20.7% 150 20.5% 20.3% 20.3% 20.1% 100 50 0 HY 2013 HY 2014 HY 2015 HY 2016 HY 2017 HY 2018 Turnover Airside (m CHF) Turnover Landside (m CHF) Concession Rate Total Airside Commerc
Slide 10: THE CIRCLE on Track
THE CIRCLE ON TRACK THE CIRCLE is a large mixed used real estate development project (incl. offices, hotels, retail) Headquarters Brands & Education & directly linked to the terminals and landside traffic & Offices Dialogue Knowledge platforms of Zurich Airport. The striking architecture and large p
Slide 11: International Activities
INTERNATIONAL ACTIVITIES Florianópolis Progress Update Other Progress Update Successful operational takeover in January 2018 of the Hercílio Luz Latin America International Airport (FLN) in Florianópolis in the south of Brazil Economic recovery in Brazil Increased international traffic from Argentin
Slide 12: Content
CONTENT Business Update Financial Update Outlook Q&A Appendix 12 | August 28, 2018 © Flughafen Zürich AG
Slide 13: Strong 1H18 Revenue and Profit Growth
STRONG 1H18 REVENUE AND PROFIT GROWTH Revenue EBIT (in million CHF) (in million CHF) Strong passenger growth, 540 540 With stable amortization and increasing commercial depreciation figures, the revenues and full adjusted EBIT rose by 14.6% consolidation of the 173 489 531 531 international business
Slide 14: Aviation Revenues in Line with Pax Growth
AVIATION REVENUES IN LINE WITH PAX GROWTH PAX-related Flight Operations Aviation Fees 206 (in million CHF) Charges (in million CHF) 193 Aviation Fees are up by PAX-related Charges 2.1%, due to volume effects increased by 6.5%, in line 34 35 with passenger growth Other Flight Operations Total Aviatio
Slide 15: Non-Aviation Revenues on Track for Growth
NON-AVIATION REVENUES ON TRACK FOR GROWTH Commercial Revenue Revenue From Services (in million CHF) (in million CHF) 118 On the back of a higher 111 Higher revenues from VIP- average concession rate, Services led to an increase Commercial Revenue grew of 5.7% disproportionately by 5.6% 20 21 Revenue
Slide 16: Disciplined Expense Management
DISCIPLINED EXPENSE MANAGEMENT Personnel Expenses Police & Security (in million CHF) (in million CHF) 5.5% higher personnel Increase of only 0.5%, which expenses driven by the is disproportionately lower consolidation of our 103 103 than passenger growth 98 international holdings and a small increas
Slide 17: Financial Key Figures
FINANCIAL KEY FIGURES Net Financial Debt / EBITDA Operating Cash Flow (excl. noise) (incl. noise, in million CHF) Net Financial Debt stands at 1.1x 1.1x Operating Cash Flow 194 195 CHF 670 m increased by CHF 1 m ROIC Free Cash Flow (incl. noise, in %) (incl. noise, in million CHF) Adjusted for one-o
Slide 18: 1H18 Capex of CHF 109 Million
1H18 CAPEX OF CHF 109 MILLION Selected Projects THE CIRCLE CHF ~36 million Additional Stands CHF ~10 million Baggage System CHF ~14 million Rapid Exit & Multiple Entry CHF ~7 million 18 | August 28, 2018 © Flughafen Zürich AG
Slide 19: Content
CONTENT Business Update Financial Update Outlook Q&A Appendix 19 | August 28, 2018 © Flughafen Zürich AG
Slide 20: Timetable Highlights
TIMETABLE HIGHLIGHTS Current Summer Timetable 2018 On June 23, Sichuan Airlines launched a Chengdu – Zurich Chengdu service by extending its existing Chengdu – Prague service. In August, Hainan Airlines is starting a non-stop service between Shenzhen Shenzen and Zurich with 2 flights per week. Since
Slide 21: Guidance for Full Year 2018
GUIDANCE FOR FULL YEAR 2018 2017 Actual1 2018 Guidance2 Passengers 29.4 million Approx. 6% higher Revenues CHF 1,034 million Aviation revenues in line with passenger growth Increasing commercial revenues Increasing international revenues (total CHF 40m – 45m) Concession accounting (mid double-digit
Slide 22: Content
CONTENT Business Update Financial Update Outlook Q&A Appendix 22 | August 28, 2018 © Flughafen Zürich AG
Slide 23: Corporate Calendar & Contact Information
CORPORATE CALENDAR & CONTACT INFORMATION August 30, 2018 MainFirst Transportation Conference (Frankfurt) September 7, 2018 UBS Best of Switzerland Conference (Zurich) September 10, 2018 UBS Transport Conference (London) September 25-26, 2018 Santander Infra Conference (New York) November 6, 2018 Cre
Slide 24: Content
CONTENT Business Update Financial Update Outlook Q&A Appendix 24 | August 28, 2018 © Flughafen Zürich AG
Slide 25: Zurich Airport at a Glance
ZURICH AIRPORT AT A GLANCE AVIATION / REGULATED NON-AVIATION / UNREGULATED 2017 revenue of CHF 624 million COMMERCIAL, REAL ESTATE & SERVICES “To satisfy the demand for direct 2017 revenue of CHF 396 million connections to the world’s major cities” Leading commercial center Regulated business with p
Slide 26: Group Key Figures YTD
GROUP KEY FIGURES YTD* Including noise Excluding noise In million CHF Jan – Jun 2018 Jan – Jun 2017 Jan – Jun 2018 Jan – Jun 2017 Aviation revenue 309.0 292.4 303.4 286.9 Non-aviation revenue 231.2 196.4 231.2 196.4 Revenue 540.2 488.8 534.6 483.3 EBITDA 239.6 271.6 293.1 267.7 EBITDA margin (in %)
Slide 27: Revenue Breakdown: Aviation Business
REVENUE BREAKDOWN: AVIATION BUSINESS In million CHF Jan – Jun 2018 Jan – Jun 2017 Passenger-related operations charges 206.0 193.4 Landing charges 41.5 39.7 Aircraft-related noise charges 5.6 5.5 Emission charges 1.9 1.8 Parking charges 12.7 12.5 Freight revenue 4.4 4.0 Total flight operations charg
Slide 28: Revenue Breakdown: Non-Aviation Business
REVENUE BREAKDOWN: NON-AVIATION BUSINESS In million CHF Jan – Jun 2018 Jan – Jun 2017 Retail, tax & duty-free 52.2 48.1 Food & beverage operations 8.9 8.2 Revenue from multi-story car parks 38.8 38.1 Other commercial revenue 17.5 16.9 Total commercial revenue 117.5 111.3 Revenue from rental and leas
Slide 29: Operating Expenses Breakdown
OPERATING EXPENSES BREAKDOWN In million CHF Jan – Jun 2018 Jan – Jun 2017 Personnel expenses 103.0 97.6 Police and security 60.0 59.7 Energy and waste 11.0 10.4 Maintenance and material 16.7 15.8 Other operating expenses 27.3 25.5 Sales, marketing, administration 20.5 15.3 Expenses from construction
Slide 30: Passenger Development
PASSENGER DEVELOPMENT Global Market Figures Jan – May 2018 Worldwide 2018 From/to ZRH +6.4% Global market +6.4% North America 2018 Share ZRH 7.6% Middle East 2018 From/to ZRH +7.3% Share ZRH 5.9% Global market +5.1% From/to ZRH +9.1% Global market -0.8% Far East 2018 Share ZRH 7.6% Latin America 201
Slide 31: 1H18 Alliance Share ZRH
1H18 ALLIANCE SHARE ZRH 64.8% Lufthansa Group 67.2% 65.0% Star Alliance 66.1% 8.8% YTD Passenger Growth Oneworld 5.4% Lufthansa Group +10.2% Star Alliance +8.1% 4.9% Skyteam 4.9% -34.6% Oneworld Skyteam +5.1% 3.3% Middle East Carrier +15.5% Middle East Carrier 3.6% -40% -20% +0% +20% 0% 10% 20% 30%
Slide 32: Lufthansa Hubs Passenger Development
LUFTHANSA HUBS PASSENGER DEVELOPMENT 25% 2018 Jul 2017 – Jun 2018 20% 15% 10% 5% 0% -5% -10% -15% -20% Jul 17 Aug 17 Sep 17 Oct 17 Nov 17 Dec 17 Jan 18 Feb 18 Mar 18 Apr 18 May 18 Jun 18 ZRH BRU FRA VIE MUC DUS Source: ACI & ZRH data warehouse, 2018 32 | August 28, 2018 © Flughafen Zürich AG
Slide 33: Traffic Ratios
TRAFFIC RATIOS 80% 130 125 120 77% Passengers per Movement (PAX) Average Take-Off Weight (tons) 112 75% 109 75% 110 107 75% Seat Load Factor 106 103 74% 74% 73% 98 73% 96 95 94 93 91 70% 71% 71% 90 86 86 85 69% 84 81 81 80 65% 70 HY/2009 HY/2010 HY/2011 HY/2012 HY/2013 HY/2014 HY/2015 HY/2016 HY/201
Slide 34: Disclaimer: Forward-Looking Statements
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 shou