Flughafen Zurich Ag · SIX:FHZN
Flughafen Zurich — H1 2019 Earnings Presentation
36 slides from Flughafen Zurich's earnings presentation, Aug 27, 2019
Slide 1: Half Year Results 2019 Presentation to Investors & Analysts
HALF YEAR RESULTS 2019 PRESENTATION TO INVESTORS & ANALYSTS Stephan Widrig Chief Executive Officer Lukas Brosi Chief Financial Officer 1 | August 27, 2019 © Flughafen Zürich AG
Slide 2: Content
CONTENT Business Update Financial Update Outlook Q&A Appendix 2 | August 27, 2019 © Flughafen Zürich AG
Slide 3: Highlights Half Year 2019
HIGHLIGHTS HALF YEAR 2019 All-time peak day with more than 115,000 passengers (July 28) Traffic Deceleration of passenger growth slightly faster than expected, yet ongoing strong demand for mobility Ordinance on No increase in transfer payments (cross-subsidization) Airport Charges No adjustments to
Slide 4: Group Key Figures HY 2019
GROUP KEY FIGURES HY 2019 14.9 million +2.4% Total Passengers 588 m CHF +8.8% Revenue 304 m CHF* +2.2% EBITDA 143 m CHF* +10.1% Profit *Excluding one-off effect: HY18: Extended sound insulation program CHF −57.6m (pre-tax) 199 m CHF1 1CAPEX consists of: Property, plant and equipment, THE CIRCLE (51%
Slide 5: Strong Performance in Aviation Business
STRONG PERFORMANCE IN AVIATION BUSINESS 2.4% rise in passenger volumes to 14.9m Local passengers of 10.5m (+1.1%) Transfer passengers of 4.4m (+5.7%) Transfer share of 29.3% Rise in air traffic movements to 135,871 (+0.9%) whereof line & charter movements 119,431 Top 5 Airlines in HY 2019 Sw
Slide 6: Decision on the Ordinance on Airport Charges
DECISION ON THE ORDINANCE ON AIRPORT CHARGES Federal Office of Civil Aviation (FOCA) proposes an increase of the Nov Transfer Payment (cross-subsidization) and no adjustment to WACC formula to a 2018 revised Ordinance on Airport Charges (OAC) Dec Stakeholder Involvement (consultation process) comple
Slide 7: Non-Aviation Business and Strategic Projects
NON-AVIATION BUSINESS AND STRATEGIC PROJECTS Commercial turnover Airside +0.2% Landside +0.8% New commercial concepts increase revenues Strategic projects Opening of THE CIRCLE mid 2020 Transition of newly acquired airports in Brazil has started 7 | August 27, 2019 © Flughafen Zürich AG
Slide 8: Examples of Recent Refurbishments Commercial Business
EXAMPLES OF RECENT REFURBISHMENTS COMMERCIAL BUSINESS Nespresso (Landside) – May 2019 Rolex (Airside) – April 2019 Globus Delicatessa (Landside) – May 2019 Hudson (Airside) – March 2019 8 | August 27, 2019 © Flughafen Zürich AG
Slide 9: Commercial Business – Development
COMMERCIAL BUSINESS – DEVELOPMENT Airside Turnover HY 2019 +0.2% Landside Turnover HY 2019 +0.8% CHF 300 CHF 284.8 CHF 286.3 CHF 271.7 CHF 250 CHF 257.4 CHF 256.6 CHF 253.4 CHF 200 22.3% in m CHF CHF 150 21.5% CHF 100 20.7% 20.5% CHF 50 20.3% 20.3% CHF 0 H1 2014 H1 2015 H1 2016 H1 2017 H1 2018 H1 20
Slide 10: THE CIRCLE and Expansion of Landside Area
THE CIRCLE AND EXPANSION OF LANDSIDE AREA THE CIRCLE Expansion Landside Area (ELP) Bus gate Food hall Curbside On budget with estimated completion of Retail core and shell at the end of 2019 Train station First tenants to move in April 2020 Official opening ceremony to be expected The project to exp
Slide 11: International: Newly Acquired Portfolio in Brazil
INTERNATIONAL: NEWLY ACQUIRED PORTFOLIO IN BRAZIL VITÓRIA AND MACAÉ IN THE SOUTHEAST Vitória & Macaé Portfolio consisting of two airports: Vitória (~3.0m PAX) and Macaé (~0.2m PAX) in a 30-year concession Expected traffic drivers from commodity industry and Brasilia increasing international traf
Slide 12: Content
CONTENT Business Update Financial Update Outlook Q&A Appendix 12 | August 27, 2019 © Flughafen Zürich AG
Slide 13: Decent HY 2019 Revenue and Profit Growth
DECENT HY 2019 REVENUE AND PROFIT GROWTH Revenue EBIT (in million CHF) (in million CHF) Passenger growth, With slightly lower increasing commercial 588 amortization and revenues and higher depreciation figures, EBIT 540 188 construction activity in rose by 8.3% 173 Florianópolis led to an 543 increa
Slide 14: Aviation Revenues in Line with Volume Growth
AVIATION REVENUES IN LINE WITH VOLUME GROWTH PAX-related Flight Operations Aviation Fees and other Charges 209 Aviation Revenues (in million CHF) 206 (in million CHF) PAX-related Charges grew softer Aviation Fees and other compared to PAX growth because Aviation Revenues are up by 37 39 of increased
Slide 15: Non-Aviation Revenues on Track for Growth
NON-AVIATION REVENUES ON TRACK FOR GROWTH Commercial & Parking Revenue from Services Revenue (in million CHF) (in million CHF) 118 121 Almost unchanged Revenues On the back of a higher from Services average concession rate, Commercial Revenue grew 21 22 by 4.4% Revenue Facility Management Internatio
Slide 16: Disciplined Expense Management
DISCIPLINED EXPENSE MANAGEMENT Personnel Expenses Police & Security (in million CHF) (in million CHF) 2.8% higher personnel 2.1% increase because of expenses because of a slightly higher security costs higher number of employees 103 106 60 61 HY18* HY19 Total Operating Expenses (in million CHF) OPEX
Slide 17: Financial Key Figures
FINANCIAL KEY FIGURES Net Financial Debt / EBITDA Operating Cash Flow (excl. noise) 1.3x (incl. noise, in million CHF) Net Financial Debt stands at 1.1x Operating Cash Flow 201 CHF 796 m increased by CHF 6 m 195 ROIC Free Cash Flow (incl. noise, in %) (incl. noise, in million CHF) 9.3 Adjusted for l
Slide 18: HY 2019 Group Capex of CHF 199 Million
HY 2019 GROUP CAPEX OF CHF 199 MILLION Selected Projects THE CIRCLE CHF ~44 million Baggage Handling System CHF ~16 million Upgrade Power Supply System CHF ~15 million New Terminal Florianópolis CHF ~45 million 18 | August 27, 2019 © Flughafen Zürich AG
Slide 19: Content
CONTENT Business Update Financial Update Outlook Q&A Appendix 19 | August 27, 2019 © Flughafen Zürich AG
Slide 20: Timetable Highlights
TIMETABLE HIGHLIGHTS Current Summer Timetable 2019 The home carrier expands its route network with 4 weekly flights to Gdansk, Heringsdorf Gdansk and one flight per week to Heringsdorf. Edelweiss further expands its route network with up to 2 weekly Kalamata, Tirana, Ohrid flights to Kalamata (seaso
Slide 21: Mid-Term Capex Roadmap Outlook Zurich and International
MID-TERM CAPEX ROADMAP OUTLOOK ZURICH AND INTERNATIONAL CAPEX peak in 2020 (completion of THE CIRCLE) Zurich Total CAPEX of CHF ~300m p.a. expected in Zurich going forward Maintenance CAPEX accounts for around CHF 100m to 150m p.a. Regulated CAPEX estimated to account for roughly 60% (after THE CIRC
Slide 22: Guidance for Full Year 2019
GUIDANCE FOR FULL YEAR 2019 2018 Actual1 2019 Guidance Passengers 31.1 million Approx. 2% higher (previous ~3%) Revenues CHF 1,153 million Aviation revenues slightly higher (incl. Concession Accounting) Slightly higher commercial & real estate revenues Revenues from international business CHF ~45−50
Slide 23: Content
CONTENT Business Update Financial Update Outlook Q&A Appendix 23 | August 27, 2019 © Flughafen Zürich AG
Slide 24: Corporate Calendar & Contact Information
CORPORATE CALENDAR & CONTACT INFORMATION September 6, 2019 UBS Best of Switzerland Conference (Zurich) September 9, 2019 UBS Transport Conference (London) September 25, 2019 Santander EUROLATAM Conference (New York) November 6/7, 2019 ZKB Conference (Zurich) March 10, 2020 Publication of full year r
Slide 25: Content
CONTENT Business Update Financial Update Outlook Q&A Appendix 25 | August 27, 2019 © Flughafen Zürich AG
Slide 26: Zurich Airport at a Glance
ZURICH AIRPORT AT A GLANCE AVIATION / REGULATED NON-AVIATION / UNREGULATED 2018 revenue of CHF 657 million COMMERCIAL, REAL ESTATE & SERVICES “To satisfy the demand for direct 2018 revenue of CHF 413 million connections to the world’s major cities” Leading commercial center Regulated business with p
Slide 27: Group Key Figures YTD
GROUP KEY FIGURES YTD* Including noise Excluding noise In million CHF Jan – Jun 2019 Jan – Jun 2018 Jan – Jun 2019 Jan – Jun 2018 Aviation revenue 315.4 309.0 309.9 303.4 Non-aviation revenue 272.6 231.2 272.6 231.2 Revenue 588.0 540.2 582.5 534.6 EBITDA 303.7 239.6 299.8 293.1 EBITDA margin (in %)
Slide 28: Revenue Breakdown: Aviation Business
REVENUE BREAKDOWN: AVIATION BUSINESS In million CHF Jan – Jun 2019 Jan – Jun 2018 Passenger-related operations charges 209.1 206.0 Landing charges 42.4 41.5 Aircraft-related noise charges 5.5 5.6 Emission charges 2.0 1.9 Parking charges 13.2 12.7 Freight revenue 4.2 4.4 Total flight operations charg
Slide 29: Revenue Breakdown: Non-Aviation Business
REVENUE BREAKDOWN: NON-AVIATION BUSINESS In million CHF Jan – Jun 2019 Jan – Jun 2018 Retail, tax & duty-free 54.7 52.2 Food & beverage operations 9.1 8.9 Revenue from multi-story car parks 39.2 38.8 Other commercial revenue 17.5 17.5 Total commercial revenue 120.5 117.5 Revenue from rental and leas
Slide 30: Operating Expenses Breakdown
OPERATING EXPENSES BREAKDOWN In million CHF Jan – Jun 2019 Jan – Jun 2018 Personnel expenses 105.8 103.0 Police and security 61.2 60.0 Energy and waste 10.3 11.0 Maintenance and material 18.8 16.7 Other operating expenses 27.7 27.3 Sales, marketing, administration 20.9 20.5 Expenses from constructio
Slide 31: Passenger Development
PASSENGER DEVELOPMENT Global Market Figures Jan – June 2019 Worldwide 2019 From/to ZRH +2.4% Global market +3.6% North America 2019 Share ZRH 8.2% Middle East 2019 From/to ZRH +5.4% Share ZRH 5.6% Global market +3.9% From/to ZRH +1.8% Global market +2.5% Far East 2019 Share ZRH 7.8% Latin America 20
Slide 32: HY 2019 Alliance Share ZRH
HY 2019 ALLIANCE SHARE ZRH 67.2% Lufthansa Group 68.3% 66.1% Star Alliance 65.8% 5.4% Oneworld YTD Passenger Growth 5.7% Lufthansa Group +4.1% 4.9% Star Alliance +2.0% Skyteam 4.8% Oneworld +7.5% Skyteam +2.2% 3.6% Middle East Carrier Middle East Carrier +0.8% 3.5% +0% +5% +10% 0% 10% 20% 30% 40% 50
Slide 33: Lufthansa Hubs Passenger Development
LUFTHANSA HUBS PASSENGER DEVELOPMENT 30% Jul 2018 – Jun 2019 25% 20% 15% 10% 5% 0% -5% -10% Jul 18 Aug 18 Sep 18 Oct 18 Nov 18 Dec 18 Jan 19 Feb 19 Mar 19 Apr 19 May 19 Jun 19 ZRH BRU FRA VIE MUC DUS Source: ACI & ZRH data warehouse, 2019 33 | August 27, 2019 © Flughafen Zürich AG
Slide 34: Traffic Ratios
TRAFFIC RATIOS 80% 165 150 Passengers per Movement (PAX) 77% Average Take-Off Weight (tons) 76% 75% 75% 135 Seat Load Factor 75% 74% 125 125 74% 73% 120 120 73% 112 109 108 70% 106 105 70% 71% 103 98 96 95 95 93 91 90 86 86 84 85 80 81 65% 75 HY 2010 HY 2011 HY 2012 HY 2013 HY 2014 HY 2015 HY 2016 H
Slide 35: Passengers and Movements Development
PASSENGERS AND MOVEMENTS DEVELOPMENT STEADY TRAFFIC GROWTH 31.1 30'000'000 29.4 370'000 27.7 26.3 25.5 24.8 24.9 350'000 25'000'000 24.3 Total Air Traffic Movements (ATM) 22.7 22.9 22.1 21.9 20.6 20.7 Total Passengers 20'000'000 19.2 330'000 17.9 17.9 17.0 17.3 15'000'000 310'000 10'000'000 290'000
Slide 36: 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