Fraport Ag · XETR:FRA
Fraport — Fraport Ag Frankfurt Akt — Q3 2023 Earnings Presentation
42 slides from Fraport's earnings presentation, Nov 7, 2023
Slide 1: 3Q23 Analyst Presentation
Januar bis September 2022 8.11.2022 Analyst Presentation I November 2023 3Q23 Fraport AG Bilanzpressekonferenz Dr.Stefan Dr. Stefan Schulte, Schulte, CEO l Vorstandsvorsitzender 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: 3Q23 Review: All-time High Revenues, EBITDA & EPS
3Q23 Review All-time High Revenues, EBITDA & EPS! 3Q23 3Q23 3QEBITDA 9M Revenues ex. IFRIC 12 EBITDA EUR mn EUR 1,083mn EUR 478mn +17% vs. 22 l +11% vs. 19 +14% vs. 22 l +9% vs. 19 3Q23 3QEPS 9M 3Q23 EBITDA EUR mn Free Cash Flow EUR 2.55 EUR 61mn >100% vs. 22 l +6% vs. 19 -51% vs. 22 l -55% vs. 19 3
Slide 4: 9M23 Review: Full Revenue & EBITDA Recovery vs. 2019
9M23 Review Full Revenue & EBITDA Recovery vs. 2019 9M23 9M23 3Q 9M Revenues ex. IFRIC 12 EBITDA EBITDA EUR mn EUR 2,632mn EUR 960mn +23% vs. 22 l +6% vs. 19 +16% vs. 22 l +1% vs. 19 9M23 3Q 9M 9M23 EPS EBITDA EUR mn Net Debt/ LTM EBITDA EUR 3.42 6.4x >100% vs. 22 l -17% vs. 19 -0.9x vs. 22 l +3.1x
Slide 5: Steady Ramp-Up in Frankfurt Passenger Numbers
3Q23 Review Steady Ramp-Up in Frankfurt Passenger Numbers Frankfurt Passenger Recovery Frankfurt Airport Passenger Recovery vs. 2019 Chinese Recovery at Frankfurt Airport Steady Increase in Passenger Momentum; despite Capacity Shortages in Ground Operations, Airlines & ATC ~90% 86% 82% ~80% 77% Cont
Slide 6: International Portfolio Fully Recovered
3Q23 Review International Portfolio Fully Recovered 3Q Passengers ex. FRA back at Fraport Greece with Best-in-Class Total Group Airports achieving ~100% of 2019 Passenger Performance: +14% vs. 3Q19 90+% of 2019 9M23 Passenger Recovery vs. 19 3Q23 Passenger Recovery vs. 19 112% 114% 99% 102% 97%100%
Slide 7: Lima Airport New Terminal Progress
Lima Airport New Terminal Progress ▪ Significant Progress on Construction Site Accelerates Commissioning Date ▪ New Terminal to be Ready in December 2024 (before: Start of 2025) 7 3Q23 Analyst Presentation I November 2023
Slide 8: Frankfurt Airport Terminal Progress
Frankfurt Airport Terminal 3 Progress ▪ Revenues excl. IFRIC12 c.7% above 2Q19 ▪ Marketing of ~5k sqm Lounge Areas & ~10k sqm Retail Areas started ▪ Images Illustrate New Lounge Areas & T3 Location ▪ Mainly thanks to International Activities EBITDA c.4% above 2Q19 ▪ Despite higher D&A, EBIT above 2Q
Slide 9: Frankfurt Airport Terminal Progress
Frankfurt Airport Terminal 1 Progress ▪ Security Relocation in Terminal 1B started ▪ Gradual Roll-out of New Security Equipment & Automated Bag Drop Facilities 9 3Q23 Analyst Presentation I November 2023
Slide 10: Further Measures to Decarbonize
Frankfurt Airport Further Measures to Decarbonize ▪ Test Run for New Solar Park Completed ▪ Following Approvals: 2.8km Solar Park to be Constructed Next to Runway West PV Area 10 3Q23 Analyst Presentation I November 2023
Slide 11: 3Q23 Review: Summing Up
3Q23 Review Summing Up ▪ Continued Traffic Recovery with International Portfolio Back at Pre-COVID Levels ▪ Significant Earnings Momentum with 3Q23 Marking All-time Highs ▪ Positive 3Q23 FCF Despite Temporary Capex Programs ▪ Clear Progress on Frankfurt & Lima Terminal Projects ▪ On Track to Deliver
Slide 12: Financials
Januar bis September 2022 8.11.2022 Analyst Presentation I November 2023 Financials Fraport AG Bilanzpressekonferenz Dr.Stefan Dr. Stefan Schulte, Schulte, CEO l Vorstandsvorsitzender Prof. Dr. Matthias Zieschang, CFO
Slide 13: Cash Flow Statement
Cash Flow Statement OCF Close to 2019, FCF reflects EUR 743mn Growth Capex EUR mn -34 +37 -42 7,417 -220 -20 -51 7,059 +732 -388 -355 -10 -7 Free Cash Flow 9M23: € -316mn Other Fixed IAS 23 IFRS Divs from Other Net debt OCF Brazil Greece Lima FRA Net debt capex concession borrowing 16 at equity YE 2
Slide 14: Cash Management: Available Funds & Repayment Profile
Cash Management Available Funds & Repayment Profile 12,000 11,503 in € mil. 11,000 10,000 €9.5 bn Fraport AG debt 9,000 8,000 €1.1 bn Greece debt Average debt condition 7,000 ~ 2.8 % interest rate € 362 mn Brazil debt 6,000 5,237 5,000 € 575 mn Lima debt 4,000 4,086 3,000 2,000 17 18 11 15 15 12 560
Slide 15: Segment Aviation
Segment Aviation 3Q23 EBITDA Significantly Above 2019 EUR mn 3Q231 3Q22 3Q19 ▪ Supported by price increases; Aviation Revenue 313 244 288 Charges crosses 3Q19 Level at 86% Passenger Recovery Charges 236 185 234 Security 65 48 42 ▪ Security Transitioning increased Other Income 7 6 10 Revenues and Cos
Slide 16: Segment Retail & Real Estate
Segment Retail & Real Estate Strong Earnings Recovery despite Inflationary Cost EUR mn 3Q23 3Q22 3Q19 ▪ Real Estate Revenues 12% above 3Q19 Revenue 130 122 131 ▪ Parking Revenues 2% above 3Q19 at Retail 49 43 58 86% Passenger Recovery Real Estate 49 49 44 ▪ Spend per Pax at EUR 2.89 → see next Parki
Slide 17: Segment Retail & Real Estate: Revenues per Passenger
Segment Retail & Real Estate Retail Revenues per Passenger 9M23 Retail Revenues per Passenger slightly above 9M22, 2019 which outperformed 2019 on a FY basis 2022 2023 5 4.23 3.76 EUR 4 3.46 3.52 3.30 3.10 3.14 3.00 3.04 3.28 3.33 3.02 2.95 3.00 2.89 3 2.73 2 1 0 1Q 2Q 3Q 9M 4Q FY Shopping & 2.76 2.
Slide 18: Segment Ground Handling
Segment Ground Handling First Positive EBITDA in 3.5 Years EUR mn 3Q23 3Q22 3Q19 ▪ Ground Handling Revenues close to Revenue 188 153 192 3Q19 with Central Infrastructure Ground Hand. 96 78 99 Charges surpassing 3Q19 Central Infra. 88 70 87 ▪ Collective Bargaining Agreement Other Income 3 2 3 and Rec
Slide 19: Segment International Activities & Services
Segment International Activities & Services Steady Outperformance vs. 2019 EUR mn 3Q23 3Q22 3Q19 ▪ Revenues ex. IFRIC12 EUR c.25% above Revenue 588 501 458 3Q19 at Full Traffic Recovery vs. 3Q19 IFRIC 12 137 94 96 ▪ Positive Effect from higher Airport ex IFRIC 12 451 407 362 Charges and Retail Reven
Slide 20: Appendices: Detailed Financials
Januar Januar JPM bis bis September September Aviation 2022 2022 & Logistics 8.11.2022 Series I April 2023 Analyst Presentation 8.11.2022 I November 2023 22FY Fraport AG Appendices Fraport AG Bilanzpressekonferenz Bilanzpressekonferenz Detailed Financials Dr. Stefan Schulte, Vorstandsvorsitzender Dr
Slide 21: Group P+L
Appendix Group P+L € million 9M 2023 9M 2022 Q3 2023 Q3 2022 Revenue 3,024.0 2,367.8 1,219.7 1,019.3 Other internal work capitalized 39.0 29.2 11.5 9.3 Other operating income 53.3 98.8 16.6 27.3 Total revenue 3,116.3 2,495.8 1,247.8 1,055.9 Cost of materials –1,217.6 –777.1 –455.8 –322.4 Personnel e
Slide 22: Cash Flow
Appendix Cash Flow € million 9M 2023 9M 2022 Q3 2023 Q3 2022 € million 9M 2023 9M 2022 Q3 2023 Q3 2022 Result attributable to shareholders of Cash flow from operating activities 731.9 628.4 438.1 443.1 Fraport AG 316.4 65.8 235.7 114.7 Result attributable to non-controlling Investments in airport op
Slide 23: Financial Position
Appendix Financial Position Assets Sept 30, 2023 December 31, 2022 Liabilities and equity Sept 30, 2023 December 31, 2022 Non-current assets Shareholders’ equity Goodwill 19,3 19,3 Issued capital 923,9 923,9 Investments in airport operating projects 4.114,2 3.769,1 Capital reserve 598,5 598,5 Other
Slide 24: Overview of Major Special Effects 2023/2022
Appendix Overview of Major Special Effects 2023/2022 1Q 2023 1Q 2022 Aviation Financial Result EUR +22.0mn Other Income: Initial fair value recognition and gain on EUR +20.0mn Result from companies accounted for using the equity method: disposal of Security Business Xi’An Reversal of Impairment Loss
Slide 25: Available Funds high at EUR 5.2+bn
Appendix Available Funds1high at EUR 5.2+bn Cash & Financial Assets (Liquidity) Committed Credit Lines & Finance EUR mn EUR +3,530mn 5,500 5,044 5,020 5,237 4,506 4,603 4,500 1,151 736 1,374 1,273 942 3,500 3,110 3,867 4,086 3,564 3,670 3,747 2,500 896 1,707 2,214 1,500 550 1,156 500 Dec. 31, 2019 D
Slide 26: Breakdown of D&A & Interest Expenses
Appendix Breakdown of D&A & Interest Expenses EUR mn 22FY 21FY 20FY 19FY 3Q23 2Q23 1Q23 3Q22 2Q22 1Q22 Depreciation & Amortization 465 443 458 475 123 119 116 124 114 112 of which IFRS16 related 1 41 38 45 45 9 9 10 11 10 10 of which IFRIC12 related 2 116 106 94 84 34 33 29 30 29 27 of which other D
Slide 27: Aviation Multi-Quarter Overview
Appendix Aviation Multi-Quarter Overview 3Q23 2Q23 1Q23 4Q22 3Q22 2Q22 1Q22 4Q21 3Q21 2Q21 1Q21 4Q19 3Q19 2Q19 1Q19 PAX mn 17.7 15.5 11.3 13.0 15.1 13.5 7.3 9.0 9.3 4.0 2.5 16.4 20.5 18.8 14.8 MOV 120k 112k 89k 97k 105k 106k 74k 87k 85k 52k 38k 121k 140k 136k 117k MTOW mn 7.5 6.9 5.7 6.2 6.7 6.4 4.9
Slide 28: Retail & Real Estate Multi-Quarter Overview
Appendix Retail & Real Estate Multi-Quarter Overview 3Q23 2Q23 1Q23 4Q22 3Q22 2Q22 1Q22 4Q21 3Q21 2Q21 1Q21 4Q19 3Q19 2Q19 1Q19 PAX mn 17.7 15.5 11.3 13.0 15.1 13.5 7.3 9.0 9.3 4.0 2.5 16.4 20.5 18.8 14.8 MOV 120k 112k 89k 97k 105k 106k 74k 87k 85k 52k 38k 121k 140k 136k 117k MTOW mn 7.5 6.9 5.7 6.2
Slide 29: Ground Handling Multi-Quarter Overview
Appendix Ground Handling Multi-Quarter Overview 3Q23 2Q23 1Q23 4Q22 3Q22 2Q22 1Q22 4Q21 3Q21 2Q21 1Q21 4Q19 3Q19 2Q19 1Q19 PAX mn 17.7 15.5 11.3 13.0 15.1 13.5 7.3 9.0 9.3 4.0 2.5 16.4 20.5 18.8 14.8 MOV 120k 112k 89k 97k 105k 106k 74k 87k 85k 52k 38k 121k 140k 136k 117k MTOW mn 7.5 6.9 5.7 6.2 6.7
Slide 30: Major International Holdings (3Q)
Appendix Major International Holdings Fully consolidated Group companies € million Share in % Revenue1) EBITDA EBIT Result 3Q23 3Q22 Δ% 3Q23 3Q22 Δ% 3Q23 3Q22 Δ% 3Q23 3Q22 Δ% Fraport USA 100 29.8 28.1 +6.0 22.6 13.8 +63.8 15.1 –3.8 – 9.7 –2.4 – Fraport Slovenija 100 13.2 10.8 +22.2 5.6 4.0 +40.0 3.0
Slide 31: Major International Holdings (9M)
Appendix Major International Holdings Fully consolidated Group companies € million Share in % Revenue1) EBITDA EBIT Result 9M23 9M22 Δ% 9M23 9M22 Δ% 9M23 9M22 Δ% 9M23 9M22 Δ% Fraport USA 100 87.3 75.8 +15.2 51.1 36.8 +38.9 27.3 0.8 >+100 16.4 –3.0 – Fraport Slovenija 100 32.8 25.5 +28.6 10.5 6.4 +64
Slide 32: P&L of Major Airport Investments
Appendix P&L of Major Airport Investments Greece €mn 3Q23 3Q22 3Q19 2Q23 2Q22 2Q19 1Q23 1Q22 1Q19 Twin Star €mn 3Q23 3Q22 3Q19 2Q23 2Q22 2Q19 1Q23 1Q22 1Q19 Revenue 255 228 177 159 117 128 32 22 78 Revenue 29 26 41 11 9 15 5 3 3 Revenue Revenue w/o IFRIC 12 252 226 144 138 113 81 30 22 23 w/o IFRIC
Slide 33: P&L of Major Airport Investments
Appendix P&L of Major Airport Investments Lima €mn 3Q23 3Q22 3Q19 2Q23 2Q22 2Q19 1Q23 1Q22 1Q19 Lima USDmn 3Q23 3Q22 3Q19 2Q23 2Q22 2Q19 1Q23 1Q22 1Q19 Revenue 217 169 108 198 132 127 182 119 89 Revenue 236 172 120 216 140 143 195 133 101 Revenue Revenue w/o IFRIC 12 86 78 86 76 65 87 74 55 82 w/o I
Slide 34: 23FY Guidance Ranges Specified with 1H Results
Appendix 23FY Guidance Ranges Specified with 1H Results FRA Passengers EBITDA >80-90% of 2019 1,040-1,200mn 2019: ~70.6mn 2019: EUR ~1,180mn Net Debt/EBITDA Result before Minorities DPS ~stable 300-420mn EUR - vs. 2022 level of 6.9 2019: EUR ~454mn unchanged vs. 2022 34 3Q23 Analyst Presentation I N
Slide 35: 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! 35 3Q23 Analyst Presentation I Nove
Slide 36: Capex, Cash Flow & Net Debt 23FY Outlook
Appendix Capex, Cash Flow & Net Debt 23FY Outlook Frankfurt FCF & Net Debt Bridge FY 2023 T3 Capex: €~550mn 1,500 1.040 -1.250 Other Capex: to to €~250mn 1,200 1.200 -1.350 FCF: negative 900 Lima 600 Capex as per 3Q22 guidance: 300 -400 €~350-450mn to -660 FCF: 0 -100 -200 Before: negative -100 -300
Slide 37: Frankfurt Regulatory Progress
Appendix Frankfurt Regulatory Progress 1 2 3 4 5 Review Board Consultation Application Review Decision Meetings − Meetings with major − Consultation held Jun 23 − Application forwarded − Hessian Ministry of − Decision expected in customers held prior to − Charge increase of in July 23 Economics, Ene
Slide 38: Fraport Greece Financial Overview
Appendix Fraport Greece Financial Overview Revenue EBITDA Greece Cash Return Structure EUR mn EUR mn 463 444 10 166 272 434 206 255 77 Repayment of 297 29 195 Shareholder Loans 226 170 124 82 35 19FY 21FY 22FY 19FY 21FY 22FY 23FY Underlying EBITDA ex. State Compensation Effects IFRIC 12 State Compen
Slide 39: FRA Staff Number Development
Appendix FRA Staff Number Development Frankfurt Consolidated Staff Number Ground Handling Other FRA Positions FraSec as of Sept. 30, 2023: 15,814 Number of Employees (as per Reporting Date) down by c.5k vs. YE’19 20,468 20,792 LFL: 4,277 4,308 16,831 16,444 669 - Reduction in Shareholding led to c.2
Slide 40: New German Public Sector Bargaining Agreement
Appendix New German Public Sector Bargaining Agreement EUR c.30mn impact on Cost increase per employee ∑ 3 Frankfurt Segments ∑EUR c.5mn impact EUR c.70mn impact on 3 Frankfurt Segments in EUR 1,240 1,200 1,000 Non-permanent payments Permanent wage adjustments 800 EUR 200 step-up 600 + 5.5% 400 220
Slide 41: Dates: 2023 Financial and Traffic Calendar
Appendix Dates 2023 Financial Calendar Mar 14, 2023 May 4, 2023 May 23, 2023 Aug 8, 2023 Nov 7, 2023 FY 3M AGM 6M 9M 2020 Traffic Calendar 2023 Apr12, Apr 17,2019 2023 May 12, 2023 Jun 14, 2023 Jul 13, 2023 Aug 11, 2023 3M 4M 5M 6M 7M Sep 13, 2023 Oct 13, 2023 Nov 13, 2023 Dec 13, 2023 Jan 16, 2024
Slide 42: 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 42 3Q23 Analyst Presentation I November 2023
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