Fraport Ag · XETR:FRA
Fraport — Q1 2022 Earnings Presentation
36 slides from Fraport's earnings presentation, May 2022
Slide 1: Analyst Presentation May 2022 – 1Q22
Analyst Presentation I May 2022 1Q22 Prof. Dr. Matthias Zieschang, CFO
Slide 2: Disclaimer
Disclaimer This document has been prepared by Fraport solely 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 should be placed on, the fairness, ac
Slide 3: Business Update: Frankfurt Traffic Momentum Building Up
Business Update Prelim. FRA Passenger Results Frankfurt Traffic Momentum building up! APR 22: ~66% of 2019 YTD 22: ~54% of 2019 Frankfurt Daily Passengers 7-day average 2019 2021 2022 Strong Recovery of North American Traffic at c.78% of 2019 Level in April, CW 16 at 80% 200.000 71% Continental Traf
Slide 4: 1Q22 Passenger Recovery across major Airports
Business Update 1Q22 Passenger Recovery across major Airports = % of 2019 Passenger Level 49% 1Q22 14,8 1Q21 1Q20 1Q19 20% 11,1 11,3 70% 7,3 74% 7,4 94% 5,5 5,3 5,0 77% 68% 3,9 3,9 3,6 3,5 3,5 3,4 2,9 78% 37% 2,7 2,8 2,5 2,3 2,3 1,9 2,1 1,6 1,5 1,7 1,3 1,1 0,3 0,2 0,2 0,1 0,2 0,3 0,2 0,0 0,1 Frankfu
Slide 5: Medium-term Traffic Expectations on Track
Business Update Medium-term Traffic Expectations on Track! ~2023 2025/26 Leisure & VFR to exceed 2019 Leisure & VFR Traffic to be Level and Compensate for roughly fully recovered to 2019 expected Loss of Corporate Level 1 Travellers Frankfurt Airport Corporate Travel (~30% of 2019) to underperform C
Slide 6: Portfolio Optimization: Divestment of Xi'An Airport Stake
Business Update Portfolio Optimization: Divestment of Xi‘An Airport Stake Agreement to sell entire Fraport 24.5% stake to Chang'an Huitong Co. signed March 31, 2022 Agreed Purchase Price of RMB 1.11bn (EUR c.150-160mn) to be transferred upon closing (expected 2Q22), reducing Group Net Debt 1Q22 P+L:
Slide 7: Staff Development in Frankfurt / Germany
Business Update Staff Development in Frankfurt / Germany Ground Handling Other FRA Positions FraSec Like-for-Like Frankfurt Staff Reduction: 4,408 Employees on March 31, 2022 vs. YE’19 Number of Employees (as per Reporting Date) 20,468 20,792 1 - LFL Staff Number of 3,645 broadly unchanged vs. YE’21
Slide 8: Deep Dive on Inflation: Frankfurt Business Segments
Business Update Dual-Till regulated Infrastructure Deep Dive on Inflation: Frankfurt Business Segments Aviation Retail & Real Estate Ground Handling Coverage Potential of Central Full Cost (Inflation) Coverage Potential Retail & Car Park Revenues mostly Infrastructure Cost Inflation (c.35-40% of via
Slide 9: Deep Dive on Inflation: International Activities
Business Update Deep Dive on Inflation: International Activities Greece Ljubljana - Airport Charges - Airport Charges with annual RoRAB linked Greek CPI-link (CPI x 0.9) - Non-Aviation usually as - Non-Aviation usually as MAGs MAGs and percentage of and percentage of Turnover Turnover Brazil Twin St
Slide 10: 1Q22 Financial Review: Strong EBITDA Recovery
1Q22 Financial Review Strong EBITDA Recovery thanks to Traffic Improvement EUR mn Total Revenue1 EUR mn Opex1 - Frankfurt & International Activities with +30% 2 [+59%] +24% strong Traffic-related Revenue Increases - 1Q21 Total Revenues positively impacted 2 491 by EUR c.70mn One-offs 378 420 338 308
Slide 11: Operating Cash Flow & Capex in line with Guidance
1Q22 Financial Review Operating Cash Flow & Capex in line with Guidance EUR mn -94 7,094 -375 -76 -5 -11 -12 +1 -94 6,370 +3 -2 -60 0 Free Cash Flow 21FY: € -256mn €-631mn OCF Brazil Greece Lima FRA Other Fixed IAS 23 IFRS Divs from Equity Other Net debt Net debt YE 2021 capex capex capex T3 capex c
Slide 12: Available Funds & Repayment Profile
1Q22 Financial Review Available Funds & Repayment Profile 11.000 in € mil. 10.339 10.000 €8.8 bn Fraport AG debt 9.000 8.000 €1.07 bn Greece debt Average debt condition 7.000 ~ 2.3 % interest rate € 361 mn Brazil debt 6.000 5.000 € 108 mn Lima debt 4.000 1 4,158 3.245 3,564 3.000 3,245 2.000 11 12 1
Slide 13: 1Q22 Financial Review – Aviation
1Q22 Financial Review – Aviation Clear EBITDA Increase vs. 1Q21 adjusted EBITDA EUR mn 1Q22 1Q21 1Q19 Reference 4Q21 − Clear 1Q22 EBITDA improvement compared to Revenue 145 139 225 165 adjusted 1Q21 Value of EUR -59mn (excl. EUR 58mn Gain from Security Settlement) Charges 101 47 175 122 Security 37
Slide 14: 1Q22 Financial Review – Retail & Real Estate
1Q22 Financial Review – Retail & Real Estate Real Estate above 2019, EBITDA at c.60% of 2019 EUR mn 1Q22 1Q21 1Q19 Reference 4Q21 − Resilient Real Estate Business exceeds Revenue 85 63 116 87 pre-COVID Level Retail 24 10 49 20 − Parking Business continues to outperform Real Estate 43 41 41 42 Passen
Slide 15: 1Q22 Financial Review – Ground Handling
1Q22 Financial Review – Ground Handling Solid EBITDA Improvement vs. PY, on Track for Break Even 22FY EUR mn 1Q22 1Q21 1Q19 Reference 4Q21 − Revenue recovery at c.65% of 2019 due to Revenue 106 67 161 117 good Performance of MTOW and Aircraft Movement related Charges Ground Hand. 58 40 81 64 Central
Slide 16: 1Q22 Financial Review – Frankfurt Opex
1Q22 Financial Review – Frankfurt Opex Strong Performance despite Short-time Work Drop-out & Inflation EUR mn Total Opex Staff Cost Other Opex EUR -64mn EUR -43mn EUR -20mn [LFL] [LFL] [LFL] 382 344 323 1 270 220 181 1 162 143 1 318 149 183 162 121 177 142 1Q19 1Q21 4Q21 1Q22 1Q19 1Q21 4Q21 1Q22 1Q1
Slide 17: 1Q22 Financial Review – Intl. Activities & Services
1Q22 Financial Review – Intl. Activities & Services Strong EBITDA Recovery to 77% of 2019 EUR mn 1Q22 1Q21 1Q19 Reference 4Q21 − Revenue excl. IFRIC 12 back at c.78% Revenue 203 116 302 273 of 1Q19 IFRIC 12 65 40 125 97 − 1Q22 EBITDA excluding any major One-off Items with impressive Rebound to 77% e
Slide 18: 22FY Outlook
22FY Outlook Unchanged Outlook – Positive Group Results expected! 19FY Results 21FY Results 22FY Outlook 24.8 mn Passengers FRA 70.6 mn Between ~55% and ~65% of 2019 (35% of 2019) Revenue €3.71 bn €2.14 bn €~3 bn, incl. €~400mn IFRIC 12 EBITDA €1,180 mn €757 mn €~760 mn to €~880 mn EBIT €705 mn €314
Slide 19: Summing Up
Summing Up - “Traffic Momentum Building Up!” - “Portfolio Optimization Underway” - “Financial Recovery via: - Higher Frankfurt Airport Charges - Robust Retail & Real Estate Business - Good International Contribution and - Continued Opex Savings, despite high Inflationary Environment” - “22FY and Mid
Slide 20: Appendix
Analyst Presentation I May 2022 Appendix Prof. Dr. Matthias Zieschang, CFO
Slide 21: Group P+L
Appendix Group P+L in € million Q1 2022 Q1 2021 Revenue 539.6 385.0 Other internal work capitalized 9.6 9.5 Other operating income 6.8 23.5 Total revenue 556.0 418.0 Cost of materials –205.1 –137.8 Personnel expenses –247.0 –207.9 Other operating expenses –33.2 –32.1 EBITDA 70.7 40.2 Depreciation an
Slide 22: Cash Flow
Appendix Cash Flow € million Q1 2022 Q1 2021 in € million Q1 2022 Q1 2021 Cash flow from operating activities 2.7 –214.3 Result attributable to shareholders of Fraport AG –108.1 –64.9 Investments in airport operating projects –73.2 –69.3 Result attributable to non-controlling interests –10.1 –12.6 I
Slide 23: Financial Position
Appendix Financial Position Assets Liabilities and equity in € million March 31, 2022 Dec 31, 2021 in € million March 31, 2022 Dec 31, 2021 Shareholders’ equity Non-current assets Issued capital 923.9 923.9 Goodwill 19.3 19.3 Capital reserve 598.5 598.5 Investments in airport operating projects 3,56
Slide 24: 1Q22 International Holdings
Appendix 1Q22 International Holdings Fully consolidated Group companies € million Share in % Revenue1) EBITDA EBIT Result 1Q22 1Q21 Δ% 1Q22 1Q21 Δ% 1Q22 1Q21 Δ% 1Q22 1Q21 Δ% Fraport USA 100 20.5 10.4 +97.1 10.5 13.7 – 23.4 1.3 4.9 – 73.5 – 0.9 3.0 – Fraport Slovenija 100 6.0 3.2 +87.5 0.1 – 0.4 – –
Slide 25: Overview Major Special Effects 2021/2022
Appendix Overview Major Special Effects 2021/2022 2022: 2021: Financial Result Aviation 1Q 22 EUR +20.0mn Result from companies accounted for using the 1Q 21 EUR + 57.8mn Revenue: Settlement Security Dispute equity method: Xi’An Recovery of Impairment Loss 2Q 21 EUR +159.8mn Other Income: State Comp
Slide 26: 22FY Capex, Cash Flow & Net Debt
Appendix 22FY Capex, Cash Flow & Net Debt Frankfurt T3 Capex: €~550mn 2022 FCF & Net Debt Other Capex: Bridge: €~250mn EUR c.1.2 bn Capex FCF: + EUR c.50mn Fixed Concession Payments negative & Borrowing Cost + EUR c.200mn Interest and Tax Lima Payments Capex: + EUR min.300mn AYT Initial Equity less
Slide 27: Unchanged Medium-Term Outlook
Appendix Unchanged Medium-Term Outlook Traffic Recovery to 2019 EBITDA Recovery to 2019 Frankfurt Expected ~2025/26 ~2023/24 International Airports Expected on average 2023 ~2023 Thanks to Traffic Recovery and Countermeasures, pre-COVID EBITDA expected by 2023/24 – at improved Margin! 27 1Q22 Analys
Slide 28: On our Way to "The New Fraport"
Appendix On our Way to “The New Fraport” The New Fraport Operational Excellence Strong Cost Control Greener 28 1Q22 Analyst Presentation I May 2022
Slide 29: New Fraport: Operational Excellence
Appendix – On our Way to “The New Fraport” Operational Excellence – “Benchmarking, digitization and sustainability” is our mission to improve our business offering and enhance our traveling experience in the long term – Restructuring of security business for smooth passenger processes. Basic agreeme
Slide 30: New Fraport: Strong Cost Control
Appendix – On our Way to “The New Fraport” Strong Cost Control – Cultural change accelerated due to COVID-19 – Complexity and inefficiencies taken out – Reduction of Frankfurt labor force by ~4,000 employees (achieved 21YE) – All non-essential cost items in focus – All capex projects under review –
Slide 31: New Fraport: Greener
Appendix – On our Way to “The New Fraport” Greener – Reduction of CO2 emissions is strategic priority – New photovoltaic plants commissioned and to be further rolled-out – CO2 neutrality to be achieved by wind park project – Roll out of hybrid, battery electric and hydrogen fleet – Continued efficie
Slide 32: Greener: Frankfurt Most Intermodal Hub
Appendix – Greener Frankfurt: Most Intermodal Hub – 1H 21: Lufthansa and German Rail offer 134 high-speed feeder trains from 17 cities to Frankfurt Airport, including New Jul/21 Basel in Switzerland New Dec/21 – 5 new cities to be added in 2H 21, including Munich, New Dec/21 Berlin and Hamburg, ther
Slide 33: New Antalya Concession: Concession at a Glance
Appendix – New Antalya Concession Concession at a Glance • Exclusivity to operate all terminals at Antalya Airport from January 2027 to December 2051 Operational Period • The current Antalya Airport concession will expire in December 2026 • Fraport‘s share in the company: 49%; TAV‘s share in the com
Slide 34: New Antalya Concession: Financial Drivers
Appendix – New Antalya Concession Financial Drivers of the new Concession Tailwinds • Increase in international departing Passenger Fee from currently EUR 15 to EUR 17 as of 2027 (fixed over remaining concession term) • Retaining of 100% of the EUR 1.5 Security Fee per departing international Passen
Slide 35: Dates: 2022 Financial Calendar
Appendix Dates 2022 Financial Calendar Mar 15, 2022 May 10, 2022 May 24, 2022 Aug 9, 2022 Nov 8, 2022 FY 3M AGM 6M 9M 2020 Traffic Calendar 2022 Apr12, Apr 13,2019 2022 May 12, 2022 Jun 14, 2022 Jul 13, 2022 Aug 11, 2022 3M 4M 5M 6M 7M Sep 13, 2022 Oct 14, 2022 Nov 11, 2022 Dec 13, 2022 Jan 16, 2023
Slide 36: Thank you for your Attention!
Thank you for your Attention! IR Contact Postal T: +49 69 690 - 74840 Fraport AG F: +49 69 690 - 74843 Frankfurt Airport Services Worldwide M: investor.relations@fraport.de 60547 Frankfurt am Main www.meet-ir.com Germany 36 1Q22 Analyst Presentation I May 2022