Flughafen Zurich Ag · SIX:FHZN
Flughafen Zurich — H1 2022 Earnings Presentation
45 slides from Flughafen Zurich's earnings presentation, Aug 23, 2022
Slide 1: Half Year Results 2022
Half Year Results 2022 Presentation to Investors & Analysts Stephan Widrig, Chief Executive Officer Lukas Brosi, Chief Financial Officer August 23, 2022
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 Recovery above Expectations in First Half Year Passengers (in million) Seat Load Factor Financial Update 76% 80% 77% 82% 2.7 2.7 2.9 69% 72% 2.4 2.1 2.0 74% 81% 54% 70% 75% 67% 0.9 1.0 1.9 2.2 1.8 1.3 Outlook Jan Feb Mar Apr May Jun Jan Feb Mar Apr May Jun 201
Slide 4: Milestones
Milestones 4
Slide 5: Milestones Half Year 2022
Business Update Milestones Half Year 2022 Financial Update • Traffic: Handled 9.1 million passengers in H1 2022; >60% compared to H1 2019 Aviation • Airlines: Served 181 destinations during first half of 2022, almost on pre-crisis level although reduced frequencies; tariffs reset to previous levels
Slide 6: Financial Summary
Financial Summary Business Update On track to deliver on Guidance Revenue (in million CHF) EBITDA (in million CHF) Financial Update 458 238 264 92 Outlook HY21 HY22 HY21 HY22 Consolidated Result (in million CHF) CAPEX Group* (in million CHF) Q&A 55 109 106 International International Circle -45 Circ
Slide 7: Aviation
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Slide 8: Aviation Business ZRH
Aviation Business ZRH Business Update Ongoing Air Travel Recovery Operations have ramped up significantly in the first half of this year with a daily Financial Update low of around 15,000 passengers in January to more than 80,000 passengers per day in June. Processes in Zurich were relatively stable
Slide 9: Passenger Segments
Passenger Segments Business Update Business Travelers – Quo vadis? Passenger Profile ZRH* (in %) Financial Update Outlook 73% 74% 80% 79% Friends & Family Leisure & Vacation n/a Q&A 27% 26% 20% 21% Appendix 2018 2019 2020 2021 HY2022 Business Leisure/Personal Business Europe Business long haul
Slide 10: Commercial Business and Real Estate
Commercial Business and Real Estate 10
Slide 11: Resilient Real Estate Business
Commercial Business and Real Estate Business Update Resilient Real Estate Business COMMERCIAL BUSINESS Financial Update The ramp-up of the commercial offering at Zurich Airport went well. In the first half of the year, several shops with attractive brands and a number of restaurants were opened and
Slide 12: Strong Commercial Turnover Recovery
Commercial Business ZRH Business Update Strong Commercial Turnover Recovery Commercial Turnover (in million CHF) Financial Update 273 285 286 218 in CHFm 127 Outlook 90 HY2017 HY2018 HY2019 HY2020 HY2021 HY2022 Turnover Airside (CHFm) Turnover Landside (CHFm) Q&A Total Airside Commercial Area ~14,20
Slide 13: International
International 13
Slide 14: International Passenger Numbers
International Business Update Passenger Numbers reaching around 90% of 2019 Level in Brazil/Chile Florianópolis (in thousands) Vitória / Macaé (in thousands) Financial Update 361 361 305 472 313 246 266 264 259 274 240 251 359 286 243 219 221 229 251 255 253 217 232 183 92% 91% Outlook Jan Feb Mar A
Slide 15: Airports in Latam
Airports in Latam Brazil and Chile Portfolio airports in Latin America are recovering faster than Zurich Airport, mainly due to a high share of domestic travel. MILESTONES • Financial Re-Equilibrium in Brazil: Completed for 2020, 2021 will be submitted in Q3 2022 • Florianópolis selected as best air
Slide 16: Noida International Airport
Noida International Airport Signing of EPC contract and start of construction • Selected Tata Projects Ltd. to undertake engineering, procurement and construction (EPC) of Noida International Airport. Tata will construct the terminal, runway and other airport infrastructure by the end of 2024 • The
Slide 17: New Dock A incl. Tower at Zurich Airport
New Dock A incl. Business Update Tower at Zurich Airport Financial Update Competition for winning Project completed Pier with the gates View from control tower to end of Dock A Outlook • Provides passengers an enhanced experience and high-quality environment • Will be built entirely in line with Q&A
Slide 18: Content
Content 01 Business Update 02 Financial Update 03 Outlook 04 Q&A 05 Appendix 18
Slide 19: Rising Revenue and Profit
Rising Revenue and Profit Business Update Half Year 2022 Revenue (in million CHF) Revenue Split (in million CHF) Financial Update 458 458 • Significantly higher • Aviation revenues more revenue numbers as a 451 than tripled due to travel result of higher traffic 264 recovery and charges reset 264 24
Slide 20: Non-Aviation Figures
Non-Aviation Figures Business Update Half Year 2022 Commercial & Parking (in million CHF) Real Estate (in million CHF) Financial Update • Overall better performance • Additional revenues from of commercial business 112 The Circle and higher • F&B, impacted by lockdown 85 energy/utility cost 83 in pr
Slide 21: Operating Expenses
Operating Expenses Business Update Half Year 2022 Personnel Expenses (in million CHF) Police & Security (in million CHF) Financial Update • Salary costs rose since • Higher passenger figures short-time work came to led to a 41% increase in an end in H1 2022 police and security costs 94 80 51 Outlook
Slide 22: Costs for Energy and Electricity
Costs for Energy and Electricity Business Update Mainly higher Heating Costs which can partially be passed through to Tenants Energy and waste (in million CHF) • Costs for energy and waste have been rising; Financial Update however, still on low levels relative to total costs 22 20 (7% of total OPEX
Slide 23: Financial Key Ratios
Financial Key Ratios Business Update Half Year 2022 Net Financial Debt / EBITDA ROIC (in %) Financial Update • Net Financial Debt • Higher earnings before increased slightly to interest turned ROIC 2.9% 7.9x CHF 1,414m positive again 3.2x -1.5% Outlook HY21 HY22 HY21 HY22 Operating Cash Flow (in mil
Slide 24: Group CAPEX
Group CAPEX Business Update Half Year 2022 Financial Update New Baggage Sorting System ~CHF 36 million Refurbishment Runway 10/28 ~CHF 17 million Outlook Q&A Total Group CAPEX* of Appendix CHF 106 million The Circle ~CHF 11 million Noida International Airport ~CHF 11 million * Cash view 24
Slide 25: Content
Content 01 Business Update 02 Financial Update 03 Outlook 04 Q&A 05 Appendix 25
Slide 26: Outlook: Guidance 2022
Outlook Business Update Guidance 2022 2021 Actual 2022 Guidance Financial Update Passengers ZRH 10.2 million • Expected to recover to slightly more than 20m, approx. 2/3 of pre-crises volumes Revenues CHF 669 million • Aviation: in line with traffic (excl. IFRIC12) • Non-Aviation: 10%-20% higher tha
Slide 27: Situation after Recovery: 2019 vs. 2025
Situation after Recovery Business Update 2019 vs. 2025 EBITDA comparison 2019 vs. 2025 Financial Update plus approx. CHF 100m Outlook Additional Cost savings, contribution depending on International inflation impact Priora real estate Q&A CHF 642m The Circle Appendix With traffic at pre-crisis level
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 • August 24, 2022 Financial Update Stifel Roadshow (Frankfurt, virtual) Lukas Brosi • September 6, 2022 Chief Financial Officer UBS BLT Conference (London) • September 28/29, 2022 Santander Euro-Latam Conference (New York) Outlook • November 4,
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 June 30, 2022 Liquidity (in CHFm) Bond Maturity Profile (in CHFm)1 Financial Update Committed Credit Facilities CHF 300m 500 400 Total utilization (incl. guarantees) CHF 12m In CHFm 300 Available short-term credit facilities CHF 288m 200 100 Cash bal
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 CHF 3m for the current year, thereafter again MAG* CHF 5m p.a. One-time reduction of MAG CHF 5m p.a. Length of contract 10 years 10 years Length unchanged This
Slide 33: Zurich Airport at a Glance
Zurich Airport at a Glance Business Update Diversified Airport Operator AVIATION / REGULATED NON-AVIATION / UNREGULATED Financial Update 2021 revenue of CHF 241 million Commercial • “To satisfy the demand for direct connections to 2021 revenue of CHF 199 million the world’s major cities” • Leading c
Slide 34: Performance by Segment
Performance by Segment Business Update Aviation Segment recovering fast Financial Update HY 2022 Aviation Commercial Real Estate Services International** Revenue CHF 206m CHF 112m CHF 83m CHF 20m CHF 39m CHF 458m Outlook Q&A EBITDA* CHF 69m CHF 154m CHF 15m CHF 238m Appendix The non-aviation segment
Slide 35: 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 35
Slide 36: Group Key Figures
Group Key Figures Business Update Income Statement in million CHF Jan – Jun 2022 Jan – Jun 2021 Financial Update Aviation revenue 205.9 65.5 Non-aviation revenue 252.4 198.1 Revenue 458.3 263.6 EBITDA 238.3 92.2 EBITDA margin (in %) 52.0 35.0 Depreciation and amortization (142.0) (134.8) Outlook EBI
Slide 37: Revenue Breakdown: Aviation Business
Revenue Breakdown Business Update Aviation Business in million CHF Jan – Jun 2022 Jan – Jun 2021 Financial Update Passenger-related operations charges 129.6 29.2 Landing charges 28.8 10.6 Aircraft-related noise charges 4.9 2.0 Emission charges 1.3 0.6 Aircraft parking charges 11.5 8.7 Freight charge
Slide 38: Revenue Breakdown: Non-Aviation Business
Revenue Breakdown Business Update Non-Aviation Business Jan – Jun 2022 Jan – Jun 2021 Financial Update in million CHF Retail, tax & duty-free 51.3 52.4 Food & beverage operations 11.4 5.3 Advertising media and promotion 8.6 6.1 Other commercial revenue 6.8 4.3 Revenue from multi-story car parks 33.5
Slide 39: Cost Overview
Cost Overview Business Update Operating Expenses Breakdown in million CHF Jan – Jun 2022 Jan – Jun 2021 Financial Update Personnel expenses 94.4 80.1 Police and security 50.5 35.8 Energy and waste 17.2 9.5 Maintenance and material 15.1 11.5 Other operating expenses 22.9 22.2 Sales, marketing, admini
Slide 40: International: Active in Emerging Markets
International Business Update Active in Emerging Markets Florianópolis International Airport Switzerland Diego Aracena International Airport Financial Update • New terminal completed in October 2019; Curaçao • New terminal close to completion no major mid-term investments expected • Thereafter, no m
Slide 41: Portfolio Overview – Majority Owned Airports
International Business Update Portfolio Overview – Majority Owned Airports Aport (Antogasta and Financial Update Florianópolis, Brazil Vitória/Macaé, Brazil Noida Delhi, India** Iquique), Chile* HY22 HY21 Δ HY22 HY21 Δ HY22 HY21 Δ HY22 HY21 Δ Passengers (in millions) 1.6 0.9 78% 1.3 0.8 63% 1.9 1.1
Slide 42: Alliance Share ZRH
Alliance Share ZRH Business Update Largest Alliances in ZRH (Jan – Jun 2022) Alliance Share ZRH Financial Update Lufthansa 67.2% Group 65.6% 65.9% Star Alliance Outlook 60.4% 6.2% Oneworld Passenger Growth 4.5% Lufthansa Group 347.3% Q&A 4.2% Star Alliance 376.0% Skyteam 5.1% Oneworld 505.7% Skyteam
Slide 43: Traffic Ratios
Traffic Ratios Business Update Seat Load Factor, Passengers per Movement and Take-Off Weight Traffic Ratios ZRH Financial Update 80% 77% 76% 75% 75% 74% 74% 73% 73% 130.00 72% Passengers per Movement (PAX) 125 125 Average Take-Off Weight (tons) 70% 120 67% 119 Outlook 118 Seat Load Factor 114 115.00
Slide 44: 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 45: Disclaimer
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