Fraport AG · XETR:FRA
Fraport — FY2003 Earnings Presentation
29 slides from Fraport's earnings presentation, Mar 30, 2004
Slide 1: Fraport AG Frankfurt Airport Services Worldwide
Fraport AG Frankfurt Airport Services Worldwide Conference Call, March 30, 2004 Dr. Wilhelm Bender, CEO Slide 2 Highlights Fiscal Year 2003 2002 (1) 2003 ∆ Frankfurt Passengers in mil. 48.5 48.4 (0.2 %) Group Passengers in mil. 69.2 70.6 1.9 % Revenues in € mil. 1,803.6 1,834.3 1.7 % EBITDA in € mil
Slide 2: Agenda; German Airports: Premium Traffic is concentrated in Frankfurt
Slide 3 Agenda Dr. Wilhelm Bender: – Traffic Development – Capacity Expansion – Retail Dr. Stefan Schulte: – Financials Conference Call March 30, 2004 Slide 4 Traffic Capacity Expansion Retail German Airports: Premium Traffic is concentrated in Frankfurt Intercont 1) Continental 1) 19,3% 11,4% 12,1%
Slide 3: Ground Handling is Backbone of Efficiency; Fraport operates six Airports
Slide 5 Traffic Capacity Expansion Retail Ground Handling is Backbone of Efficiency Departure Delays 2003 (AEA) ...thereof Ground Handling 30% 8% 25,7% 26,1% 6% 20% 6,1% 21,1% 18,0% 4% 4,5% 4,5% 10% 2% 2,0% 0% 0% FRA AMS LHR CDG FRA AMS LHR CDG Transfer Rate 2003 Connectivity Units 2002 (IATA) 60% 5
Slide 4: Group Traffic Figures
Slide 7 Traffic Capacity Expansion Retail Group Traffic Figures Passengers FY 2002 FY 2003 Jan 2004 Feb 2004 Frankfurt 48,450,357 48,351,664 3,609,609 3,568,396 ∆% (0.2) (0.2) 2.3 9.0 Antalya 9,790,636 9,741,763 269,769 313,311 ∆% 12.3 (0.4) 11.5 34.7 Frankfurt-Hahn 1,449,725 2,425,684 175,861 187,5
Slide 5: Passenger Development 1980-2003
Slide 9 Traffic Capacity Expansion Retail Passenger-Development 1980-2003: Long-term Trend continues in Frankfurt 5.000.000 Monthly development 4.500.000 Gliding 12-months average Linear Trend 4.000.000 CAGR 1980-2003: 4.5% Gulf war 3.500.000 3.000.000 2nd oil crisis 2.500.000 2.000.000 September-11
Slide 6: Slot Demand in Frankfurt: far above Capacity
Slide 11 Traffic Capacity Expansion Retail Slot Demand in Frankfurt: far above Capacity demand FRA S04 100 90 80 70 60 50 40 30 20 10 0 0400 - 0500 - 0600 - 0700 - 0800 - 0900 - 1000 - 1100 - 1200 - 1300 - 1400 - 1500 - 1600 - 1700 - 1800 - 1900 - 2000 - 2100 - 0459 0559 0659 0759 0859 0959 1059 115
Slide 7: Constitution of (Federal) Accident Commission
Slide 13 Traffic Capacity Expansion Retail Constitution of (Federal) Accident Commission Mandates Federal Ministry of Accident Working the Environment Consults Commission (AC) Groups The AC has 24 members: • The AC consults the Federal Ministry • 6 Environmentalists of the Environment with regard to
Slide 8: Results of Risk Assessment for NW-Runway
Slide 15 Traffic Capacity Expansion Retail Results of Risk Assessment for NW-Runway 10-5 Risk-Zone (GFL) 10-5 Risk-Zone (NATS) 10-5 Risk-Zone (NLR) Ticona Conference Call March 30, 2004 Slide 16 Traffic Capacity Expansion Retail Current Flight Paths over Ticona n go y din Lan runwa new Departures fr
Slide 9: Capacity Expansion Process on Track
Slide 17 Traffic Capacity Expansion Retail Location of Ticona / Critical Objects th Ethylene Compressor h t Pa Flig Chimney Office Building Methanol Tank Bortrifluorid Capsules Conference Call March 30, 2004 Slide 18 Traffic Capacity Expansion Retail Capacity Expansion Process on Track Planning Appr
Slide 10: Schedule for the Zoning Procedure
Slide 19 Traffic Capacity Expansion Retail Schedule for the Zoning Procedure (1) Step in Procedure Comments Submission of – 34 expert´s reports zoning application – 750 plans and maps – 10,000 text pages – In total: 50 folders Declaration of District president checks completeness of application. com
Slide 11: Procedures for Lufthansa's A380 Maintenance Hangar
Slide 21 Traffic Capacity Expansion Retail Procedures for Lufthansa’s A380 Maintenance Hangar Planning Approval Construction Operation 9 January 2003: - H2 2004: - 2007: Submission of Zoning decision Readiness for zoning application operation - Start of 9 May 2003: construction by - Lufthansa starts
Slide 12: Spending Plan of Capex-Program over Project Lifetime
Slide 23 Traffic Capacity Expansion Retail Spending Plan of Capex-Program over Project Lifetime Budget: Terminal 3 527 534 € 3.393 mil. Runway Apron / Air Base PTS 416 430 Miscelanous Airport Infrastrastructure 294 209 183 172 171 156 86 87 57 28 35 8 2000 2001 2002 2003 2004 2005 2006 2007 2008 200
Slide 13: Further Increase in Retail Space and Quality
Slide 25 Traffic Capacity Expansion Retail Further Increase in Retail Space and Quality Success Factors Retail Space (shopping) in sqm - without Terminal 3 Strategy / 20.000 Marketing 14.985 12.889 Shop quality 2000 2001 2002 2003 2004e 2005e 2006e 2007e - 2004/5: Upgrade of existing shops Shop mix
Slide 14: Fraport AG Frankfurt Airport Services Worldwide
Fraport AG Frankfurt Airport Services Worldwide Conference Call March 30, 2004 Dr. Stefan Schulte, CFO Slide 28 Agenda Profit & Loss Statement Segment Results Balance Sheet and Cash flow Statement Subsidiaries External Business Conference Call March 30, 2004 Seite 14
Slide 15: Profit & Loss Statement (1)
Slide 29 Profit & Loss Statement Segment Results Balance Sheet and Cash Flow Subsidiaries External Business Profit & Loss Statement (1) in € mil. 2002(1) 2003 D D% Revenues 1,803.6 1,834.3 30.7 1.7 % Other revenues 80.2 57.1 -23.1 -28.8 % Total revenues 1,902.2 1,909.3 7.1 0.4 % Staff costs 860.1 93
Slide 16: Management of Staff Costs
Slide 31 Profit & Loss Statement Segment Results Balance Sheet and Cash Flow Subsidiaries External Business Management of Staff Costs 860 +74 934 Staff cost ratio: +70 2002: 47.7 % +55 2003: 50.9 % – Higher staff costs mainly due to sucess of subsidiaries – ICTS dilutes group staff cost 2002 2003 St
Slide 17: Tight Cost Management in Non-Staff Costs
Slide 33 Profit & Loss Statement Segment Results Balance Sheet and Cash Flow Subsidiaries External Business Tight Cost Management in Non-Staff Costs € mil. 526.9 - 23.4 503.5 – Tight cost management, e.g. advisory fees down by € 16.0 mil. – Decrease of currency losses to 275.3 284.4 € 11.5 mil. (200
Slide 18: WM 2005 Effects secure EBITDA Objective in 2003
Slide 35 Profit & Loss Statement Segment Results Balance Sheet and Cash Flow Subsidiaries External Business WM 2005 Effects secure EBITDA Objective in 2003 Mar ks ow curity ent staff, nts ees t cos s ort rowth, in € mil. e me fic rge ry f har e n nce che ary, S ty traf est cha et s qui 5 g ura Inv 2
Slide 19: Special P&L Effects
Slide 37 Profit & Loss Statement Segment Results Balance Sheet and Cash Flow Subsidiaries External Business Special P&L Effects Depreciation & Amortization in € mil. Increase of depreciation due to: – Hahn impairment test (IFRS) 300 – Depreciation on property 200 marketing in Frankfurt 214.1 258.1 (
Slide 20: Aviation – Revenues from security services increased
Slide 39 Profit & Loss Statement Segment Results Balance Sheet and Cash Flow Subsidiaries External Business Aviation – Revenues from security services increased € mil. 2002 2003 D% Slight rise in revenues: Revenues 832.7 869.7 4.4 % – Mainly due to security Segment result 6.9 -19.3 services EBITDA(1
Slide 21: Split of Non-Aviation / Retail Concession Revenues
Slide 41 Profit & Loss Statement Segment Results Balance Sheet and Cash Flow Subsidiaries External Business Split of Non-Aviation / Retail Concession Revenues 2003: 369 mil. Euro 2003: 107.5 mil. Euro 28.3 24.1 (51.7) (22.4) 20.5 (22.8) 69.9 107.5 (70.5) 160.4 (109.9) (158.6) 17.1 (16.6) 48.7 (48.0)
Slide 22: Ground Handling – Stable development of revenues
Slide 43 Profit & Loss Statement Segment Results Balance Sheet and Cash Flow Subsidiaries External Business Ground Handling – Stable development of revenues € mil. 2002 2003 ∆ % Flat development of revenues: Revenues 506.4 503.6 -0.6 % – Increased revenues in Segment result -1.2 -25.5 Vienna, Brusse
Slide 23: Balance Sheet
Slide 45 Agenda Profit & Loss Statement Segment Results Balance Sheet and Cash flow Statement Subsidiaries External Business Conference Call March 30, 2004 Slide 46 Profit & Loss Statement Segment Results Balance Sheet and Cash Flow Subsidiaries External Business Balance Sheet in € mil. 31.12.02 31.
Slide 24: Cash flow from operating activities and free cash flow improved
Slide 47 Profit & Loss Statement Segment Results Balance Sheet and Cash Flow Subsidiaries External Business Cash flow from operating activities and free cash flow improved + 447.2 - 220,8 in € mil. (+395.6) (- 207.6) , - 139.9 (+397.9) - 60.8 585.1 610.8 (-68.1) (585.1) (67.3) 226.4 (188.0) Free cas
Slide 25: ICTS Europe; Frankfurt-Hahn Airport
Slide 49 Profit & Loss Statement Segment Results Balance Sheet and Cash Flow Subsidiaries External Business ICTS Europe in € mil. 2002 2003 D % – Significant increase of Revenues(1) 192.8 251.3 30.3 % revenues and EBITDA over the past years EBITDA(1) 13.7 19.4 41.6 % – New contracts in France, Spain
Slide 26: Lima Airport; Antalya Airport
Slide 51 Profit & Loss Statement Segment Results Balance Sheet and Cash Flow Subsidiaries External Business Lima Airport in € mil. 2002 2003 D% – Increase of passengers Passengers in mil. 4.3 4.5 5.1 % – On US-$-basis: Growth in Movements in ‘000 70.3 70.2 -0.1 % revenues (+9 % to US-$ 69.7 mil.) an
Slide 27: Strategic Fit; Portfolio Analysis in External Business
Slide 53 Agenda Profit & Loss Statement Segment Results Balance Sheet and Cash flow Statement Subsidiaries External Business Conference Call March 30, 2004 Slide 54 Profit & Loss Statement Segment Results Balance Sheet and Cash Flow Subsidiaries External Business Portfolio Analysis in External Busin
Slide 28: Value Enhancement in External Business
Slide 55 Profit & Loss Statement Segment Results Balance Sheet and Cash Flow Subsidiaries External Business Value Enhancement in External Business Book Value: € 296 mil. EBITDA in 2003: € 73 mil. 4% 50% 51% 22% 4% 42% 1% 26% Airports Ground Handling Airports Ground Handling Security others Security
Slide 29: EBITDA-Multiple; Airport Transaction Pipeline
Slide 57 Profit & Loss Statement Segment Results Balance Sheet and Cash Flow Subsidiaries External Business Airport Management – Transaction Multiples EV/EBITDA-Multiples in the Airport Sektor 30 Luton (65%) EBITDA-Multiple 25 Bristol ADR (100%) (51%) Belfast City 20 (100%) New- East Luton castle Mi