Flughafen Zurich Ag · SIX:FHZN
Flughafen Zurich — FY2020 Earnings Presentation
46 slides from Flughafen Zurich's earnings presentation, March 2021
Slide 1: Financial Year Results 2020
Financial Year Results 2020 Presentation to Investors & Analysts Stephan Widrig, Chief Executive Officer Lukas Brosi, Chief Financial Officer March 2021
Slide 2: Content
Content 01 Business Update 02 Financial Update 03 Outlook 04 Q&A 05 Appendix 2
Slide 3: Traffic Development ZRH
Traffic Development ZRH Business Update Significant drop due to COVID-19 Passengers (in million) Seat Load Factor Financial Update 84% 84% 81% 79% 2.9 3.1 3.1 2.9 2.9 76% 80% 77% 82% 75% 77% 2.7 2.7 69% 72% 2.4 2.2 2.3 2.1 2.0 72% 73% 2.1 0.9 57% 57% 62% 59% 2.0 0.7 0.7 50% 46% 51% 0.5 0.5 0.4 42% 0
Slide 4: Milestones
Milestones 4
Slide 5: Milestones Full Year 2020
Milestones Business Update Full Year 2020 • Bonds: Raised a total of three bonds of CHF 900m in 2020 at very favorable conditions (Ø 0.34%) Financial Update Treasury • Credit facility: Increased to CHF 300m, which will be largely undrawn by the end of this month • Liquidity: Consolidated liquidity a
Slide 6: Financial Summary
Financial Summary Business Update Full Year 2020 Revenue (in million CHF) EBITDA (in million CHF) Financial Update 1'210 642 624 196 Outlook FY19 FY20 FY19 FY20 Consolidated Result (in million CHF) CAPEX Group* (in million CHF) Q&A 773 309 M&A 399 International -69 International Circle Appendix Circ
Slide 7: Aviation
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Slide 8: Aviation Business
Aviation Business Business Update Heavily impacted by COVID-19 The outbreak of the pandemic depicted unprecedented times in Zurich. Financial Update Traffic came almost to a standstill in spring; after a slight recovery during summer months, traffic remained muted for the rest of the year. PASSENGER
Slide 9: Commercial Business and Real Estate
Commercial Business and Real Estate 9
Slide 10: Commercial Business and Real Estate
Commercial Business and Real Estate Business Update Resilient Real Estate Business COMMERCIAL BUSINESS Financial Update The commercial business shows lower rental income as a result of lower passenger numbers and the impact of the lockdown on commuters as well as employees (remote work) at the airpo
Slide 11: Commercial Business: Significant Drop after Record Year
Commercial Business Business Update Significant Drop after Record Year Commercial Turnover (in million CHF) Financial Update CHF 575.5 CHF 593.8 CHF 601.4 CHF 534.2 CHF 544.6 in CHFm CHF 237.2 Outlook FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 Turnover Airside (CHFm) Turnover Landside (CHFm) Q&A Tota
Slide 12: Real Estate Business
Real Estate Business Business Update Solid Progress and Expected to Perform Well in the Years to Come Revenue from Facility Management (in million CHF) Financial Update CHF 140.9 CHF 122.4 CHF 123.4 CHF 119.8 CHF 121.4 CHF 125.3 In CHFm Outlook Circle? FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 Reven
Slide 13: International
International 13
Slide 14: International: Monthly Passenger Development
International Business Update Monthly Passenger Development Florianópolis (in thousands) Vitória / Macaé (in thousands) Financial Update 473 323 362 362 301 283 278 290 292 433 313 272 251 292 286 294 325 316 283 246 266 264 259 240 265 355 181 305 137 242 74 101 219 78 192 218 19 29 44 60 155 12 18
Slide 15: International: Portfolio Overview
International Business Update Portfolio Overview Florianópolis International Airport Switzerland Diego Aracena International Airport Financial Update • New terminal completed in October 2019; Curaçao • New terminal expected to be completed in no major mid-term investments expected 2021 Delhi Noida A
Slide 16: Noida International Airport: Solid Progress
Noida International Airport Solid Progress ACHIEVED MILESTONES • Signing of Concession Agreement on October 7, 2020 • Appointment of local management team • Selection of architect and finalization of Master Plan • Signing of state support agreement NEXT MILESTONES • Financial Close for project finan
Slide 17: Noida International Airport Architectural Renderings
Noida Business Update International Airport Financial Update Architectural Renderings View of the terminal and curb View of the terminal south elevation and forecourt Outlook Q&A Appendix View of the forecourt commercial areas Retail areas in the international departures lounge 17
Slide 18: Content
Content 01 Business Update 02 Financial Update 03 Outlook 04 Q&A 05 Appendix 18
Slide 19: Declining Revenue and Profit
Declining Revenue and Profit Business Update Full Year 2020 Revenue (in million CHF) Revenue Split (in million CHF) Financial Update 1'210 1'210 • Declining revenue • Not all revenues correlate numbers as a result of directly with traffic 1'127 465 COVID-19 624 development 624 • Further lowered by l
Slide 20: Lower Non-Aviation Figures
Lower Non-Aviation Figures Business Update Full Year 2020 Commercial & Parking (in million CHF) Facility Management (in million CHF) Financial Update • Mainly as a result of the • Higher fixed rental 253 141 lockdowns, all commercial income due to acquisition revenues are lower of additional real es
Slide 21: Cost-Cutting Initiatives Working
Cost-Cutting Initiatives Working Business Update Full Year 2020 Personnel Expenses (in million CHF) Police & Security (in million CHF) Financial Update • Implementation of short- 216 • Reduced orders for the 122 time working in Zurich to police force resulted in 179 receive partial lower costs 94 un
Slide 22: Financial Key Ratios
Financial Key Ratios Business Update Full Year 2020 Net Financial Debt / EBITDA (excl. noise) ROIC (incl. noise, in %) Financial Update • Net Financial Debt 7.2x • Lower profit numbers led increased to CHF 1,403m to a drop in ROIC from 8.8% 8.8% to -1.1% • Invested capital higher mainly from additio
Slide 23: Group CAPEX
Group CAPEX Business Update Full Year 2020 Financial Update The Circle ~CHF 136 million New Baggage Sorting System ~CHF 68 million Outlook Q&A Total Group CAPEX* of Appendix CHF 399 million Expansion of Landside Area ~CHF 23 million Restoration Maintenance Area ~CHF 17 million * Cash view 23
Slide 24: Content
Content 01 Business Update 02 Financial Update 03 Outlook 04 Q&A 05 Appendix 24
Slide 25: Outlook: Guidance 2021
Outlook Business Update Guidance 2021 2020 Actual 2021 Guidance Financial Update Passengers ZRH 8.3 million • Recovery dependent on vaccine rollout and lifting of travel restrictions • Well positioned for recovery (passenger mix, robust economy in CH) • Need for standardized travel regimes (at least
Slide 26: Mid-Term CAPEX Roadmap
Mid-Term CAPEX Roadmap Outlook Business Update Zurich and International • Total CAPEX of CHF 200m to 220m p.a. expected in Zurich going forward. Financial Update Zurich Most important adjustments: − The Circle: No adjustments and full completion in 2021 − Expansion of landside area: Slow down over n
Slide 27: Consolidated Balance Sheet
Consolidated Balance Sheet Business Update What will the Future bring? Liabilities: Before and After Financial Update Pre COVID-19, as of Dec 2019 Currently, as of Dec 2020 COVID-19 CHF 3'000 CHF 3'000 CHF 1'952 in CHF million in CHF million CHF 2'000 CHF 2'000 CHF 1'311 Outlook • Issuance of three
Slide 28: Content
Content 01 Business Update 02 Financial Update 03 Outlook 04 Q&A 05 Appendix 28
Slide 29: Corporate Calendar and Contact Information
Corporate Calendar Business Update Contact Information • March 15, 2021 Financial Update Zürcher Kantonalbank Roadshow (Virtual) Lukas Brosi • March 18/19, 2021 Chief Financial Officer Kempen Roadshow (Virtual) • March 22/23, 2021 Exane BNP Roadshow (Virtual) Outlook • April 22, 2021 Stefan Weber An
Slide 30: Content
Content 01 Business Update 02 Financial Update 03 Outlook 04 Q&A 05 Appendix 30
Slide 31: Liquidity and Debt Overview
Liquidity and Debt Overview Business Update As of December 31, 2020 Liquidity (in CHFm) Bond Maturity Profile (in CHFm)2 Financial Update Committed Credit Facilities1 CHF 160m 500 400 Total utilization (incl. guarantees) CHF 72m In CHFm 300 Available short-term credit facilities CHF 88m 200 100 Cash
Slide 32: Commercial Contracts: Implementation of IFRS16
Commercial Contracts Business Update Implementation of IFRS16 for Commercial Contracts IFRS16 Old Terms New Terms Comments Financial Update MAG* CHF 5m p.a. CHF 3m for the current year, thereafter again One-time reduction of MAG CHF 5m p.a. Length of contract 10 years 10 years Length unchanged Conce
Slide 33: Zurich Airport at a Glance
Zurich Airport at a Glance Business Update Diversified Airport Operator AVIATION / REGULATED NON-AVIATION / UNREGULATED Financial Update 2020 revenue of CHF 222 million Commercial, Real Estate & Services • “To satisfy the demand for direct connections to 2019 revenue of CHF 422 million the world’s m
Slide 34: Commercial Centers at Zurich Airport
Commercial Centers at Zurich Airport Business Update Three Different Commercial Centers Financial Update Airport Airside The Circle Shopping Center Outlook Q&A Appendix 34
Slide 35: Our Contribution to the Environment
Our Contribution to the Environment Business Update Long history in minimizing Emissions 0 Financial Update Net CO2-Emissions Airport Carbon Accreditation Certified environmental Certified climate protection management system by 2050 Outlook program with reduction targets (ISO 14001) since 2001 to b
Slide 36: Group Key Figures
Group Key Figures Business Update Income Statement Including noise Excluding noise in million CHF Jan – Dec 2020 Jan – Dec 2019 Jan – Dec 2020 Jan – Dec 2019 Financial Update Aviation revenue 221.7 661.5 216.2 648.6 Non-aviation revenue 402.3 548.6 402.3 548.6 Revenue 624.0 1,210.1 618.4 1,197.3 EBI
Slide 37: Revenue Breakdown: Aviation Business
Revenue Breakdown Business Update Aviation Business in million CHF Jan – Dec 2020 Jan – Dec 2019 Financial Update Passenger-related operations charges 120.0 445.7 Landing charges 32.7 86.9 Aircraft-related noise charges 5.5 12.8 Emission charges 1.6 4.1 Parking charges 24.4 26.6 Freight revenue 6.3
Slide 38: Revenue Breakdown: Non-Aviation Business
Revenue Breakdown Business Update Non-Aviation Business Jan – Dec 2020 Jan – Dec 2019 Financial Update in million CHF Retail, tax & duty-free 89.7 114.2 Food & beverage operations 14.6 20.1 Advertising media and promotion 13.1 18.2 Revenue from multi-story car parks 40.8 82.6 Other commercial revenu
Slide 39: Cost Overview
Cost Overview Business Update Operating Expenses Breakdown in million CHF Jan – Dec 2020 Jan – Dec 2019 Financial Update Personnel expenses 179.3 216.3 Police and security 94.1 122.4 Energy and waste 18.0 20.3 Maintenance and material 27.0 40.7 Other operating expenses 42.0 50.8 Sales, marketing, ad
Slide 40: International: Portfolio Overview – Majority Owned
International Business Update Portfolio Overview – Majority Owned Aport (Antogasta and Financial Update Florianópolis, Brazil Vitória/Macaé, Brazil Noida Delhi, India Iquique), Chile 2020 2019 Δ 2020 2019 Δ 2020 2019 Δ 2020 2019 Δ Passengers (in millions) 1.9 3.9 (52%) 1.5 3.3 (55%) 2.0 3.8 (47%) n/
Slide 41: Passenger Development: Global Market Figures
Passenger Development Business Update Global Market Figures (Jan – Dec 2020) Worldwide 2020 Financial Update From/to ZRH -73.5% Global market -63.7% Europe 2020 Share ZRH 78.9% From/to ZRH -71.9% Global market -69.7% Middle East 2020 Outlook Share ZRH 4.6% North America 2020 From/to ZRH -77.7% Share
Slide 42: FY2020 Alliance Share ZRH
FY2020 Alliance Share ZRH Business Update Largest Alliances in ZRH Alliance Share ZRH Financial Update 67.7% Lufthansa Group 68.2% 64.0% Star Alliance Outlook 66.0% 5.4% Passenger Growth Oneworld 5.5% -73.8% Lufthansa Group Q&A -74.4% Star Alliance 4.7% Skyteam 4.7% -74.3% Oneworld -73.4% Skyteam Mi
Slide 43: Lufthansa Hubs Passenger Development
Lufthansa Hubs Passenger Development Business Update One Year Hub Comparison (Jan 2020 – Dec 2020) Lufthansa Hubs Passengers Financial Update 20% 0% -20% Outlook -40% -60% Q&A -80% -100% Appendix -120% Jan 20 Feb 20 Mar 20 Apr 20 May 20 Jun 20 Jul 20 Aug 20 Sep 20 Oct 20 Nov 20 Dec 20 ZRH BRU FRA VI
Slide 44: Traffic Ratios
Traffic Ratios Business Update Seat Load Factor, Passengers per Movement and Take-Off Weight Traffic Ratios ZRH Financial Update 80% 135 78% 78% 77% 75% 76% 130 76% 77% 127 Passengers per Movement (PAX) Average Take-Off Weight (tons) 74% 75% 124 73% 73% 120 Outlook 70% 117 Seat Load Factor 114 110 1
Slide 45: Passengers and Movements Development
Passengers and Movements Development Business Update Since ZRH Privatization Historical Traffic Numbers Financial Update 35 31.1 31.5 450'000 29.4 30 27.7 26.3 400'000 24.9 25.5 24.3 24.8 Total Passengers (in millions) 25 Air Traffic Movements (ATM) Outlook 22.6 22.9 22.1 21.9 350'000 21.0 20.7 19.2
Slide 46: Disclaimer: Forward-Looking Statements
Disclaimer Business Update Forward-Looking Statements This document has been prepared by Flughafen Zürich AG for use in this presentation. Financial Update The information contained in this document has not been independently verified. No representation or warranty – whether express or implied – is