Fraport AG · XETR:FRA

Fraport — Q3 2002 Earnings Presentation

33 slides from Fraport's earnings presentation, Nov 28, 2002

  1. Slide 1: Fraport AG Frankfurt Airport Services Worldwide

    Fraport AG Frankfurt Airport Services Worldwide Presentation of Q3 2002 Results November 28, 2002

  2. Slide 2: Disclaimer

    Slide 2 Fraport Q3 2002 Results Disclaimer This document has been prepared by Fraport AG Frankfurt Airport Services Worldwide. As far as this document contains forward-looking statements instead of historical statements and discussions, these forward-looking statements rely on a number of assumption

  3. Slide 3: 3rd Quarter 2002 at a Glance

    Slide 3 Fraport Q3 2002 Results 3rd Quarter 2002 at a Glance – Further recovery in traffic figures – Revenues up by 13.9 %, EBITDA up by 9.2 % – Retail revenues up by 9.9 % to € 50.0m – New runway: start of operation anticipated for 2006 – WM 2005 efficiency program: agreement with workers‘ council

  4. Slide 4: Stable EBITDA Development despite difficult Market Conditions

    Slide 4 Fraport Q3 2002 Results Stable EBITDA Development despite difficult Market Conditions 600 (€m) 500.0 + 500 533.5 507.2 400 459.9 440.3 401.8 9M 2002 300 200 100 0 1998 1999 2000 2001 2002e

  5. Slide 5: Strategy

    Slide 5 Fraport Q3 2002 Results Strategy Core Business Core Business Growth Business Expansion Consolidation – Exploit strong position – Capacity expansion to – Leverage Fraport’s in Aviation and secure medium-term expertise beyond Ground Services growth and home location competitive position – Fost

  6. Slide 6: Ongoing Recovery in Traffic Figures

    Slide 6 Fraport Q3 2002 Results Ongoing Recovery in Traffic Figures Jan-Sept PAX (m) ∆% Cargo 1 ∆% ATMs ∆% 2002 (t000) (000) Frankfurt 37.0 (3.0) 1,192.1 0.1 344.2 (0.8) Antalya 2 7.8 7.3 n.a. n.a. 48.8 11.1 Hahn 3 1.0 204.7 100.8 (2.3) 20.7 8.2 Hanover 3.7 (10.3) 9.5 (13.6) 66.4 (6.7) Lima 3.2 2.8

  7. Slide 7: Pax-Development 1980-2002: Long-term Trend is still intact

    Slide 7 Fraport Q3 2002 Results Pax-Development 1980-2002: Long-term Trend is still intact Monthly development 4.600.000 Gliding 12-months average Linear Trend 4.100.000 CAGR 1980-2001: 5.3% 3.600.000 Gulf war 3.100.000 2nd oil crisis 2.600.000 2.100.000 1.600.000 September-11 1.100.000 600.000 1980

  8. Slide 8: Cargo Business forecasts Pick-up in World Trade

    Slide 8 Fraport Q3 2002 Results Cargo Business forecasts Pick-up in World Trade (Forerun: 3-4 months) 25% 1. Oil Crisis 2. Oil Crisis Tschernobyl Gulf War Asia Crisis Sep-11 20% 15% 10% ? 5% Quelle: Fraport AG, IWF, Statistisches Bundesamt 0% -5% FRA-Cargo Noticable anticipation of economic developm

  9. Slide 9: Frankfurt – No. 7 for Global Airport Passenger and Cargo Traffic

    Slide 9 Fraport Q3 2002 Results Frankfurt – No. 7 for Global Airport Passenger and Cargo Traffic Airport 2001 Airport 2001(1) Passengers (m) Cargo (t ’000) Atlanta 75.8 Memphis 2,631 Chicago O’Hare 66.8 Los Angeles 2,123 Los Angeles 61.0 Hong Kong 2,100 London / Heathrow 60.7 Anchorage 1,691 Tokyo /

  10. Slide 10: Frankfurt - Leading European Hub Airport

    Slide 10 Fraport Q3 2002 Results Frankfurt - Leading European Hub Airport Connectivity and Punctuality attract Transfer Passengers! Frankfurt Schiphol Paris - CDG Heathrow 0 10 20 30 40 50 60 70 80 90 IATA Connectivity Index 2000 Transfer Rate 2001 Punctuality H1 2002 Source: IATA; company informati

  11. Slide 11: Intermodality – Leveraging the Infrastructure

    Slide 11 Fraport Q3 2002 Results Intermodality – Leveraging the Infrastructure – AIRail Terminal • in the center of European high-speed train network • upgrade to “Frankfurt Main Station” in December • ICE 3 cuts down travel time to Rhine/Ruhr by one hour – Cargo Train Depot – Underground Train Stat

  12. Slide 12: Enhanced Catchment Area

    Slide 12 Fraport Q3 2002 Results Enhanced Catchment Area • High speed train link enhances catchment area of FRA to 35m people • Travel time from key cities From To Frankfurt To Amsterdam Düsseldorf 1:08 1:40 Cologne 0:58 2:01 Source: Deutsche Bahn 40 35 30 25 20 15 10 5 0 Frankfurt Heathrow Paris -

  13. Slide 13: Capacity Expansion Process on Track

    Slide 13 Fraport Q3 2002 Results Capacity Expansion Process on Track Planning Approval Construction Operation ü 1997: Start of üOctober 2001: • 2004: • 2006: New runway discussions Official start Completion of goes into ü 1998-2000: of regional planning proce- approval procedure operation Mediation

  14. Slide 14: FRA - Capacity Expansion Plan

    Slide 14 Fraport Q3 2002 Results FRA - Capacity Expansion Plan NW-Runway Terminal 3 A380 Maintenance

  15. Slide 15: Retail: FRA outperforms German Retail Market

    Slide 15 Fraport Q3 2002 Results Retail: FRA outperforms German Retail Market Development of Retail Business (1998=100) Introduction of 140 Travel Value Sep-11 Concept 130 EU Duty Free 120 Abolished 110 100 90 1998 H1 99 H2 99 H1 00 H2 00 H1 01 H2 01 H1 02 Frankfurt Airport Germany Retail income / P

  16. Slide 16: AIRail center frankfurt - officially started!

    Slide 16 Fraport Q3 2002 Results AIRail center frankfurt - officially started!

  17. Slide 17: Manila

    Slide 17 Fraport Q3 2002 Results Manila Summary of Financial Exposure – Total exposure of US$ 383.2m September 30, 2002 slightly increased Equity / US$ 105.4m – Ongoing discussions with Shareholders’ advances Philippine government Shareholder loan US$ 120.5m – Potential retransfer of the Bank guaran

  18. Slide 18: WM 2005 – Groundbreaking Agreement reached with Workers’ Council

    Slide 18 Fraport Q3 2002 Results WM 2005 – Groundbreaking Agreement reached with Workers’ Council Key elements of the implementation framework: – Capacity adjustment through retirement schemes and new shift models – Regulation for intra-group transfer into low-cost subsidiaries – No layoffs – Cooper

  19. Slide 19: Fraport takes leading Role in assuring new Corporate Governance Rules

    Slide 19 Fraport Q3 2002 Results Fraport takes leading Role in assuring new Corporate Governance Rules – Government Commission (“Cromme-Commission”) proposed new rules for Corporate Governance in Germany – “Corporate Germany” should meet Anglo-Saxon CG-standards – Fraport is one of the first compani

  20. Slide 20: Profit & Loss Statement

    Slide 20 Fraport Q3 2002 Results Profit & Loss Statement Notes: €m 9M / 2001 9M / 2002 Growth (1) including other Revenues 1,179.7 1,344.2 13.9 % revenues Total Revenues (1) 1,239.8 1,418.3 14.4 % (2) including result from Staff costs 519.6 633.9 22.0 % associated companies and income from Cost of m

  21. Slide 21: Significant Revenue Growth

    Slide 21 Fraport Q3 2002 Results Significant Revenue Growth – Rise in total revenues Total Revenues (€ m) • first-time full conso- 1600 lidation of ICTS Europe + 14.4 % 1,418.3 1400 115.8 • increase in 1,239.8 74.1 military traffic 1200 60.1 + 5.1 % 1,228.4 1,179.7 • increase in 1000 retail revenues

  22. Slide 22: Increase in Staff Costs below Growth Rate of Revenues

    Slide 22 Fraport Q3 2002 Results Increase in Staff Costs below Growth Rate of Revenues Staff costs (€ m) – Increase in staff costs 700 • first-time full consolidation 633.9 of ICTS Europe + 22.0 % 97.0 600 • tariff increase (collective 519.6 536.9 bargaining agreement) 500 + 3.3 % • early retirement

  23. Slide 23: Slight Increase of Non-Staff Costs due to successful Cost Management

    Slide 23 Fraport Q3 2002 Results Slight Increase of Non-Staff Costs due to successful Cost Management – Slight increase in Non-Staff Costs Non-Staff costs (€ m) • first-time full consolidation 400 353.1 + 1.8 % 359.3 of ICTS Europe 11.2 148.7 300 156.1 • increase of unrealized currency losses 200 20

  24. Slide 24: Increase in EBITDA by 9.2 %

    Slide 24 Fraport Q3 2002 Results Increase in EBITDA by 9.2 % EBITDA (€ m) – Increase in EBITDA 500 • positive development of revenues + 9.2 % 400 401.8 • Cost increase below 367.8 growth rate of revenues 300 200 – EBITDA ICTS Europe: € 7.6m 100 0 9M / 2001 9M / 2002

  25. Slide 25: Increase in EBIT, Decrease in Net Income

    Slide 25 Fraport Q3 2002 Results Increase in EBIT, Decrease in Net Income Net income (€m) and EPS (€) EBIT (€m) 150 300 250 120 1.28 0.92 223.9 EPS EPS 200 213.7 90 95.7 83.3 150 60 100 30 50 0 0 9M / 2001 9M / 2002 9M / 2001 9M / 2002

  26. Slide 26: Segment Overview Business Activities and Revenues

    Slide 26 Fraport Q3 2002 Results Segment Overview Business Activities and Revenues Aviation Non-Aviation Airside Operations Retail Airport Security Property Air Security Car Parking Terminal Management 48% Management ICTS 8% 22% Ground Handling Others 3% 27% Ramp Services Energy Passenger Services I

  27. Slide 27: Financials Aviation

    Slide 27 Fraport Q3 2002 Results Financials Aviation 9M /2002 Growth €m 9M / 2001 9M / 2002 Growth (w/o ICTS) External Revenues 492.4 682.0 38.5 % 566.2 15.0 % Total Revenues (1) 515.3 718.4 39.4 % 602.6 16.9 % EBITDA (2) 56.2 88.6 57.7 % 81.0 44.1 % EBITDA margin (3) 10.9 % 12.3 % 13.4 % EBIT 21.5

  28. Slide 28: Financials Ground Handling

    Slide 28 Fraport Q3 2002 Results Financials Ground Handling €m 9M / 2001 9M / 2002 Growth – Decrease in revenues • decrease in External Revenues 410.7 389.1 (5.3 %) MTOW (- 4.3 %) and ATM (- 0.8 %) Total Revenues (1) 443.0 426.1 (3.8 %) in Frankfurt EBITDA (2) 21.8 12.8 (41.3 %) • decline in market

  29. Slide 29: Financials Non-Aviation

    Slide 29 Fraport Q3 2002 Results Financials Non-Aviation €m 9M / 2001 9M / 2002 Growth – Slight increase in revenues External Revenues 304.9 308.0 1.0 % • higher retail and Total Revenues (1) 608.5 623.4 2.4 % rental revenues at Frankfurt Airport EBITDA (2) 275.5 282.7 2.6 % – Increase in EBITDA (3)

  30. Slide 30: Financials Others

    Slide 30 Fraport Q3 2002 Results Financials Others €m 9M / 2001 9M / 2002 Growth – Increase of revenues External Revenues 31.8 39.2 23.3 % • 3 new entities included in Total Revenues (1) 125.4 158.9 26.7 % consolidation EBITDA (2) 14.3 17.7 23.8 % – Increase in EBITDA (3) EBITDA margin 11.4 % 11.1 %

  31. Slide 31: Balance Sheet

    Slide 31 Fraport Q3 2002 Results Balance Sheet At Dec. 31, At Sep. 30, €m Growth 2001 2002 Fixed assets 3,222.8 3,164.1 (1.8 %) Current assets 407.7 576.1 41.3 % Total Assets 3,672.0 3,778.0 2.9 % Equity 1,964.3 2,008.5 2.3 % Debt (1) 970.1 973.0 0.3 % Equity & Liabilities 3,672.0 3,778.0 2.9 % Note

  32. Slide 32: Net Investment covered by Cash Flow from Operations

    Slide 32 Fraport Q3 2002 Results Net Investment covered by Cash Flow from Operations Cash inflow from Cash outflow from operations (€ m) investments (€ m) 300 -11.4 % 800 722.3 255.7 525.0 200 226.6 600 - 77.0 % 400 100 200 197.3 166.0 0 0 9M / 2001 9M / 2002 9M / 2001 9M / 2002 Specialized Securiti

  33. Slide 33: Thank you for your attention!

    Thank you for your attention!

Fraport — Q3 2002 Earnings Presentation on 6ix