Fraport AG · XETR:FRA
Fraport — Q3 2022 Earnings Presentation
107 slides from Fraport's earnings presentation, November 2022
Slide 1: 3Q22 Roadshow & Conference Presentation
Investor Relations 3Q22 Roadshow & Conference Presentation
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: Themes You Should Not Miss
Themes You Should Not Miss… IR View on Current Market Focus 58 I Current Traffic 63-64 I Inflation 71 I FRA Cost Devel. 61 I FRA Staff Restruc. 65-75 I 3Q Financials 79-82 I Outlook 25 I FRA Terminal 3 29 I Lima Expansion 3 3Q22 l Investor Relations Roadshow & Conference Presentation
Slide 4: Agenda
1 I Group Overview 5 I Outlook 2 I Airport Highlights 6 I ESG 3 I COVID-19 Pandemic 7 I Appendix 4 I Current Development 4 3Q22 l Investor Relations Roadshow & Conference Presentation
Slide 5: Group Overview: Who We Are
Group Overview Who We Are? Pure Play International Airport Operator 18+k Dedicated Emloyees Along Passenger Journey ~100 Years Experience in Airport Management Home Turf: Frankfurt Airport #1 Passenger and Cargo Hub in Germany Freehold ~50% of German Population in 200km Catchment Area
Slide 6: Portfolio At A Glance
Group Overview Portfolio At A Glance St. Petersburg Frankfurt Ljubljana Cleveland New York Varna Newark Burgas Baltimore Antalya Nashville Kavala Delhi Kerkyra Thessaloniki Skiathos Mytiline Hong Kong Aktion Kefalonia Samos Zakynthos Mykonos Kos Santorini Rhodes Chania Fortaleza Lima Porto Alegre Mi
Slide 7: Business Structure
Group Overview Business Structure Frankfurt Based International Activities 3 Segments 3 Kinds of Participation Retail & Aviation Ground Handling Asset Deals Concessions ORAT Real Estate Performance of Frankfurt Know how 7 3Q22 l Investor Relations Roadshow & Conference Presentation
Slide 8: Revenue & EBITDA Share
Group Overview Revenue & EBITDA Share Pre-COVID Frankfurt: ~60% Revenue & 60% EBITDA FY 2021 Frankfurt: ~60% Revenue & 50% EBITDA 8 3Q22 l Investor Relations Roadshow & Conference Presentation
Slide 9: Long-term Maturity Profile of Airport Holdings
Group Overview Well-balanced Long-term Maturity Profile of Airport Holdings1 Airport Operation Min. remaining term1 Frankfurt Freehold Greek regionals 2057 36 years Ljubljana 20542 33 years2 Antalya 2026/2051 30 years Fortaleza 2047 26 years Porto Alegre 2042 21 years Lima 20412 20 years2 Twin Star
Slide 10: Pre-COVID Aviation Market Characterized by Steady Growth
Group Overview Pre-COVID Aviation Market Characterized by Steady Growth 1980: 2019: 0.7 Bn 4.5 Bn. Passengers Passengers CAGR: + 5.4 % 90.000 4.600 85.000 Lehman / EU 4.400 Financial Crisis 4.200 80.000 4.000 75.000 3.800 70.000 3.600 3.400 65.000 3.200 60.000 9/11 3.000 World GDP in TRN US$ 55.000
Slide 11: Global Mega Trends Underpin Aviation Growth
Group Overview Global Mega Trends Underpin Aviation Growth Middle class Migration Globalization Tourism >50 % growth expectation within Migration will boost ethnic traffic Internationalization of work and Robust Trend towards city and next 20 years education short trips Forecast for the long-term de
Slide 12: Link Between GDP Growth & Flights per Capita
Group Overview Pre-COVID-19 Link Between GDP Growth & Flights per Capita Projections 10,0 USA Europ. Union 2030 1,0 3.2 pax / capita 2030 2018 passengers per capita China 2.1 pax / capita 2018 2030 2.7 pax / capita 0.7 pax / capita 2018 India 1.6 pax / capita 0,1 2018 2030 0.4 pax / capita 0.2 pax /
Slide 13: Pre-COVID Group Passenger Numbers
Group Overview Pre-COVID Group Passenger Numbers Passengers in mil. 200 171 165 154 144 147 150 130 125 117 119 103 97 99 100 89 86 81 80 83 71 74 70 71 65 60 58 60 61 61 56 58 53 50 16 13 15 14 0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Frankfurt Majorities (incl. FRA) Minorities (incl. AY
Slide 14: Pre-COVID Group P+L
Group Overview Pre-COVID Group P+L EPS EPS €1.85 €2.86€2.63 €2.44 €2.62 €2.59€1.60 €2.07 €2.40 €2.86 €2.62€2.54 €2.59 €3.00 €2.40 €2.54 €4.07 €3.00 €3.57 €3.57 €5.13 €4.07 €5.13 Proportionate JV accounting IFRS 11 IFRS 16 € mil. Group Result 3.706 Revenue EBITDA 3.478 (before minorities) 2.935 1.180
Slide 15: Agenda
1 I Group Overview 5 I Outlook 2 I Airport Highlights 6 I ESG 3 I COVID-19 Pandemic 7 I Appendix 4 I Current Development 15 3Q22 l Investor Relations Roadshow & Conference Presentation
Slide 16: Frankfurt Airport Overview
Airport Holdings Frankfurt Airport Overview: “FRA” At a Glance Gateway Gardens The Squaire CD Link Pier A+ Runway Northwest LCC neo Mönchhof Site Ticona Terminal 3 Realized Projects Projects in Development A380 Hangar CargoCity South 16 3Q22 l Investor Relations Roadshow & Conference Presentation Fe
Slide 17: FRA Key Facts
Airport Holdings For better comparison and to assess the recovery path: Pre-COVID-19 figures illustrated on chart. FRA Key Facts 70.6mn Pax c.40mn People Economic Center #1 in Germany #1 Catchment area Germany is #1 #4 in Europe in Europe (within 200km) Economy in EU 2.1mn m.t. Cargo 60% of blue chi
Slide 18: FRA 2019 Passenger Mix
Airport Holdings For better comparison and to assess the recovery path: Pre-COVID-19 figures illustrated on chart. FRA 2019 Passenger Mix / Outreach Western Europe Domestic Eastern Europe Average SLF 44 % 11 % 9% 80 % North America D +1 % D -3% D +3 % 13 % Frankfurt Airport Far East Continental D +4
Slide 19: FRA Offered Services / Segments
Airport Holdings FRA Offered Services / Segments Retail & Affiliated Services Aviation Ground Handling Real Estate Part of International Activities Segment Airside Management Retail Central Infrastructure Facility Management -Airside Infrastructure -Shopping -Baggage Conveyor Belts Information and -
Slide 20: FRA Regulatory Approach: RAB At Cost / 2
Airport Holdings FRA Regulatory Approach: RAB “At Cost / 2” Asset base Exemplary figures Residual Carrying Amount (RCA) Investment phase Investment phase More stable asset base! At cost / 2 Asset base fluctuates more! Plus: value creation when “Assets under construction” included in full as they are
Slide 21: FRA Historic Aviation Segment Figures
Airport Holdings For better comparison and to assess the recovery path: Pre-COVID-19 figures illustrated on chart. FRA Historic Aviation Segment Figures % change 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Jul 4.0 Apr 3.0 Average Prices 2.9 2.9 2.9 2.9 0 1.9 0 0 Oct 3.0 Oct 2.5 Passengers 4.1
Slide 22: FRA Historic Retail Revenues per Passenger
Airport Holdings For better comparison and to assess the recovery path: Pre-COVID-19 figures illustrated on chart. FRA Historic Retail Revenues per Passengers Retail Revenue per Passenger Retail Revenue € € mil. 3,60 3,62 +6.8% 3,43 3,49 3,32 3,37 231.7 1 3,28 3,17 3,12 3,02 217.1 1 2,84 2,86 2,69 4
Slide 23: FRA Retail Top Spenders vs. Top Volume
Airport Holdings For better comparison and to assess the recovery path: Pre-COVID-19 figures illustrated on chart. FRA Retail Top Spenders vs. Top Volume TOP 5 by Retail Value TOP 5 by Volume • Destinations with very high retail value • Destinations with very large passenger • Low passenger volumes
Slide 24: FRA Terminal Security Relocation
Airport Holdings FRA Terminal 1 Security Relocation New Link 24 Lanes (current Tech) to be New Security Concept Enables Relocation of Terminal 1 replaced by 14 Lanes (new Tech) seamless Passenger Connecting Concourse B Passenger Screening in 2 Steps, Phase 1: 2025, between Concourse A and B Lanes to
Slide 25: FRA Final Expansion Element: Terminal 3
Airport Holdings FRA Final Expansion Element: Terminal 3 Planned Completion: 2026on. | ~21 mil. Passengers Capacity1 | EUR c.4 bn. Invest € mil. Rough capex phasing 700 500 300 100 21 22 23 24 25 26 2027 Pier G 1st stage 2nd stage Terminal 3: Main Hall and Piers H & J Terminal 3 Pier G: 1st stage •
Slide 26: Intl. Holdings Overview
Airport Holdings Intl. Holdings Overview Investment % share Consolidation Investment type Concession charge Capex obligation1 Regulation Fixed minimum5 + 5% Modernizing and expanding the Fortaleza 100 Full Concession until 2047 Dual till revenue component airport Fixed minimum5 + 5% Modernizing and
Slide 27: Greek Regional Airports
Airport Holdings For better comparison and to assess the recovery path: Pre-COVID-19 figures illustrated on chart. Greek Regional Airports Cluster Α Cluster B Fraport ownership: 73.4% Num. of Airports: 7 Num. of Airports: 7 Fraport investment since: April 2017 PAX 2019: 16.7 mil (+0.4% YoY) PAX 2019
Slide 28: Lima Airport
Airport Holdings For better comparison and to assess the recovery path: Pre-COVID-19 figures illustrated on chart. Lima Airport Fraport ownership: 80.01% Fraport investment since: February 2001 Investment type: 40 years concession + extension option Airport profile Capital city airport of Peru & reg
Slide 29: Lima Airport Expansion
Airport Holdings Lima Airport Expansion Due to strong rebound of passenger traffic and implementation of single-terminal concept Lima Airport Partners is finalizing the amendment of the EPC contract to further expand the new terminal The new terminal facilities will be sufficient to accommodate
Slide 30: Brazilian Airports
Airport Holdings For better comparison and to assess the recovery path: Pre-COVID-19 figures illustrated on chart. Brazilian Airports Fraport ownership: 100% Fraport investment since: Contracts signed in August 2017, operational Fortaleza takeover January 2018 Airport 7.2 mil. Pax Investment type: F
Slide 31: Twin Star: Varna & Burgas, Bulgaria
Airport Holdings For better comparison and to assess the recovery path: Pre-COVID-19 figures illustrated on chart. Twin Star: Varna & Burgas, Bulgaria Fraport ownership: 60% Fraport investment since: November 2006 Investment type: initial concession term of 35 years until 2041 with 5 years agreed ex
Slide 32: Antalya Airport
Airport Holdings For better comparison and to assess the recovery path: Pre-COVID-19 figures illustrated on chart. Antalya Airport Fraport ownership: Share of voting rights: 51% / dividend share: 50% Fraport investment since: 1999, concession was renewed in September 2007 and another in December 202
Slide 33: New Antalya Airport Concession
Airport Holdings New Antalya Airport Concession • 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 company: 51%
Slide 34: New Antalya Airport Concession – Continued
Airport Holdings New Antalya Airport Concession – Continued 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 Passenger vs. today:
Slide 35: Fraport USA: Airmall Retail Concessions
Airport Holdings For better comparison and to assess the recovery path: Pre-COVID-19 figures illustrated on chart. Fraport USA: Airmall Retail Concessions New York JFK Airport Fraport ownership: 100% Fraport investment since: August 2014 Investment type: Based on concession agreements, Fraport USA s
Slide 36: Fraport Slovenija: Ljubljana Airport
Airport Holdings For better comparison and to assess the recovery path: Pre-COVID-19 figures illustrated on chart. Fraport Slovenija: Ljubljana Airport Fraport ownership: 100% Fraport investment since: September 2014 Investment type: Right to operate airport derived from 40 years land use contract,
Slide 37: Agenda
1 I Group Overview 5 I Outlook 2 I Airport Highlights 6 I ESG 3 I COVID-19 Pandemic 7 I Appendix 4 I Current Development 37 3Q22 l Investor Relations Roadshow & Conference Presentation
Slide 38: Unprecedented Impact on our Business Model
COVID-19 Pandemic Unprecedented Impact on our Business Model Index 1950 = 1 Following decades of growth, 45 350 COVID-19 led to an unprecedented drop in 40 300 Frankfurt Airport air traffic 35 30 -59% Movements 250 25 200 20 150 -73% Passengers 15 100 10 50 5 0 0 1950 1952 1954 1956 1958 1960 1962 1
Slide 39: Passenger Numbers Almost Standstill for Weeks / Months
COVID-19 Pandemic Passenger Numbers Almost Standstill for Weeks / Months Passenger Numbers in Germany 20 % Weekly Comparison vs. 2019 0% New Year 2021 -20 % Change -40 % -60 % -80 % -100 % 01 03 05 07 09 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 49 51 01 03 05 07 09 11 13 15 17 19 21
Slide 40: Group Passenger Numbers vs. 2019
COVID-19 Pandemic Group Passenger Numbers vs. 2019 Monthly Passenger Performances Annual Passenger Performances 40% -73% -70% -71% -57% -79% -83% -73% -44% 70.6 20% Sept.-20 Febr.-20 Nov.-20 June-20 Aug.-20 May-20 Apr.-20 Mar-20 Dec-20 Jan.-20 July-20 Oct-20 0% 2019 2020 35.5 -20% 30.2 -40% St. Pete
Slide 41: Group Financials 2020 vs. 2019
COVID-19 Pandemic Group Financials 2020 vs. 2019 Total Revenue1 Adverse Revenue Impacts across Portfolio FRA Segments EUR 1,118mn / International Activities EUR 454mn1 EUR 1,572mn (PY: EUR 2,309mn) / (PY: EUR 1,030mn)1 gadd -1,767mn / -52.9 % Opex1,2 Strong Cost Control in Frankfurt & International1
Slide 42: FRA: Substantial Cost Cutting Measures initiated
COVID-19 Pandemic FRA: Substantial Cost Cutting Measures initiated Capex Capex Staff Cost Non-Staff Cost EUR c.1bn Savings spread over EUR c.1bn Savings Target EUR c.250mn Savings Target EUR c.100 – 150mn Savings Target next 7-8 Yrs spread over next 7-8 Yrs • Reduction Continuation of Frankfurt of S
Slide 43: FRA: Cost Saving Achievements 2020/21
COVID-19 Pandemic FRA: Cost Saving Achievements 2020/21 EUR mn Total Opex Staff Cost Other Opex EUR -406mn EUR -258mn EUR -148mn 1.578 1,4971 1.198 1.172 899 962 1 663 641 679 535 531 409 382 394 393 370 290 345 219 272 266 270 270287 220 235 225 214 155 190 146 148 149 145165182 162 159 168 156126
Slide 44: FRA: Price Upward Revisions
COVID-19 Pandemic FRA: Price Upward Revisions Aviation Staff Cost Central Infrastructure +~4.3% Tariff Adjustment Reduce 3,000-4,000 Employees +~+3% Tariff Adjustment 250mn For Savings FRA aviation charges in 22FY p.a. For FRA central infrastructure charges as of Apr 21 Gradually with full effect by
Slide 45: Comprehensive Countermeasures also in Intl. Portfolio
COVID-19 Pandemic Comprehensive Countermeasures also in Intl. Portfolio 1│ OPEX 2│ CAPEX 3│Compensation - Strict cost saving programs - Mandatory capex programs in - Pandemic defined as force launched Greece and Brazil completed majeure in concession contracts - Reduction of all non-imminent - Non-b
Slide 46: Overview Compensation Measures 2020-22
COVID-19 Pandemic Overview Compensation Measures 2020-22 Frankfurt Greece EUR~160mn Op. CF up EUR~235mn Op. CF: Compensation from State of Hesse State settlement~150mn Cape Capex: agreement to offset and Federal Government for adverse COVID-19 FCF: break even impact in 20FY & 1st Lockdown period in
Slide 47: Capex Reduction of more than EUR 400mn in 2020
COVID-19 Pandemic Capex Reduction of more than EUR 400mn in 2020 Capex Chart 19FY Analyst Presentation Total Capex incl. fixed concession payments & borrowing cost: EUR1.5-1.6bn Frankfurt T3: € c.536 mil. (€-64 mil.), Other Capex: €c.326 mil. (€-24 mil.) FY 2020 Capex Spend EUR c.1,147mn Lima: €
Slide 48: Substantial Increase in Available Funds
COVID-19 Pandemic Substantial Increase in Available Funds Cash & Financial Assets (Liquidity) Committed Credit Lines & Finance EUR mn 5.500 EUR +2,816mn 5.000 4,448 4,506 4,523 4.500 4,288 4.000 3.500 3,110 3.784 3.467 3.564 3.486 3.000 2.500 2,149 2.000 1,707 2.214 1.500 1.569 1.000 1.156 500 Dec.
Slide 49: Inventing The New Fraport
COVID-19 Pandemic Inventing “The New Fraport” The New Fraport Operational Excellence Strong Cost Control Greener 49 3Q22 l Investor Relations Roadshow & Conference Presentation
Slide 50: The New Fraport: Operational Excellence
COVID-19 Pandemic “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 agreement to
Slide 51: Operational Excellence / Security Business
COVID-19 Pandemic “The New Fraport”: Operational Excellence / Security Business Takeover of Security Responsibilities in 2023 Fraport to enhance Security Product jointly with Federal Police Fraport, a.o., to tender Frankfurt Security Lots and to procure Security Equipment Services Processes Hub
Slide 52: Operational Excellence / Ground Handling
COVID-19 Pandemic “The New Fraport”: Operational Excellence / Ground Handling Restructuring of Ground Subsidiary enables Handling to enhance Transition expected in next increased focus and competitiveness and keep few years flexibility operations inside the Group 52 3Q22 l Investor Relations Roadsho
Slide 53: The New Fraport: Strong Cost Control
COVID-19 Pandemic “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 – Target
Slide 54: The New Fraport: Greener
COVID-19 Pandemic “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 efficiency ga
Slide 55: Greener / Most Intermodal Hub
COVID-19 Pandemic “The New Fraport”: Greener / 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
Slide 56: Agenda
1 I Group Overview 5 I Outlook 2 I Airport Highlights 6 I ESG 3 I COVID-19 Pandemic 7 I Appendix 4 I Current Development 56 3Q22 l Investor Relations Roadshow & Conference Presentation
Slide 57: Key Message: Steep Traffic Ramp-Up and Financial Recovery
Current Development Key Message: “Steep Traffic Ramp-Up and Financial Recovery!” 1 Traffic 2 Financials 3 Other Frankfurt back at ~74% of 3Q 2019 EBITDA at ~96% of 3Q 2019 Level High Focus on FRA Hub Excellence, Traffic / YTD at~66% / 9M at ~87% a.o., Restoring Ground Quality & Security Transitionin
Slide 58: Sequential 3Q22 Traffic Improvement
Current Development Sequential 3Q22 Traffic Improvement 9M Passenger Performances 3Q Passenger Performances Sequential 3Q Improvement 66% 52% 79% 76% 103% 59% 85% % of 2019 74% 62% 83% 82% 109% 60% 92% 54,2 9M19 9M20 9M21 9M22 3Q19 3Q20 3Q21 3Q22 35,9 29,1 27,0 20,5 26,2 24,8 16,7 15,3 15,9 15,1 14,
Slide 59: Developments in International Portfolio
Current Development Developments in International Portfolio Fraport Greece achieved further Economic Rebalance for COVID-related Impacts in 1H21 Fraport Brasil also applied for Economic Rebalance for adverse COVID-related 22FY impacts Fraport Brasil applied for Porto Alegre fixed Concession Pr
Slide 60: Divestment of Xi'An Airport Stake
Current Development 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.155mn) transferred in 2Q22 P+L 1Q22: EUR 20mn Gain on Group Financial Result; P+L 2Q22:
Slide 61: Imbalanced FRA Slot Utilization
Current Development Imbalanced FRA Slot Utilization: High Peaks vs. Low Off-Peaks Slots 56 mvmts. difference between Max. utilization: ~91% of Intraday low: c.24% of pre-Covid max / per hour busiest and lowest day pre-Covid Level c.26% of current max. 110 100 Pre-Covid max. 90 80 70 Monthly average
Slide 62: FRA Staff Restructuring Progress
Current Development FRA Staff Restructuing Progress Ground Handling Other FRA Positions FraSec 1 Like-for-Like Staff Reduction: 4,200 as of September 30, 2022 vs. YE’19 Number of Employees (as per Reporting Date) 20,468 20,792 2 LFL: 2 - LFL Staff Number slightly down vs. YE’21 4.277 4.308 16,592 16
Slide 63: FRA Inflation Protection
Current Development Dual-Till regulated Infrastructure FRA Inflation Protection 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 Regulation, albeit wit
Slide 64: International Activities Inflation Protection
Current Development International Activities Inflation Protection 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 S
Slide 65: Strong 3Q22 Financial Recovery
Current Development Strong 3Q22 Financial Recovery EUR mn Revenue1 EBITDA -5% -4% 2 [-7%] [-9%] 2 973 926 437 420 289 682 902 396 652 259 3Q19 3Q21 3Q22 3Q19 3Q21 3Q22 EPS Free Cash Flow -70% -10% 2,40 139 121 125 0,83 1,24 -39 3Q19 3Q21 3Q22 3Q19 3Q21 3Q22 1 Adjusted for IFRIC 12 ² Taking account o
Slide 66: On our Way to former Strength
Current Development On our Way to former Strength EUR mn EBITDA 1.129 1.180 1.003 757 829 -251 2017 2018 2019 2020 2021 9M2022 9M2022 EBT 670 590 506 116 178 -933 2017 2018 2019 2020 2021 9M2022 9M2022 2 66 3Q22 l Investor Relations Roadshow & Conference Presentation
Slide 67: Sharp Rebound in International Activities
Current Development Sharp Rebound in International Activities 93% of High Share of Leisure and Short-haul Traffic 3Q19 PAX Fuels Up Traffic Recovery Fraport Greece tops 2019 Passenger Traffic with strong 3Q22 Outperformance 130% of LATAM with sound overall Recovery 3Q19 EBITDA Favorable Cont
Slide 68: Aviation: Q3 Revenues recover
Current Development – Aviation Q3 Revenues recover to c.85% of Pre-Covid Level EUR mn 9M22 9M21 9M19 3Q22 3Q21 3Q19 9M22 Airport charges achieve c.75% of 2019 at c.66% pax level Revenue 612 423 783 244 169 288 Charges 453 240 623 185 122 234 “Recovery” Incentives to Airlines of EUR c.23mn YTD Se
Slide 69: Retail & Real Estate
Current Development – Retail & Real Estate Highly-profitable Business drives Frankfurt EBITDA EUR mn 9M22 9M21 9M19 3Q22 3Q21 3Q19 Real Estate Business outperforms pre-COVID Level Revenue 314 232 372 122 93 131 Retail 101 52 162 43 27 58 Parking recovers to 85% of 3Q19 Real Estate 138 127 127 49
Slide 70: Ground Handling
Current Development – Ground Handling Cost to cope with Summer Season weigh on Financials Revenue Recovery in 3Q22 to c.80% of EUR mn 9M22 9M21 9M19 3Q22 3Q21 3Q19 2019 level, among others due to Revenue 406 270 537 153 118 192 maximum-take off weight- and G. Handling 215 157 274 78 67 99 movement
Slide 71: Frankfurt Opex Reduction
Current Development – Frankfurt Opex Opex Reduction despite Energy Prices, Inflation and GH Ramp Up EUR mn Total Opex Total Opex reduced by EUR 157mn vs. 9M19 EUR -157mn 1 Staff Cost reduced by EUR c.129mn vs. 9M19, mainly due to [9M LFL] Restructuring Program 382 394 393 409 As of September 3
Slide 72: Strong EBITDA Contribution from International Portfolio
Current Development – Intl. Activities & Services Strong EBITDA Contribution from International Portfolio EUR mn 9M22 EBITDA 3Q22 EBITDA 300 253 250 200 179 150 100 74 72 50 29 31 37 13 14 21 17 6 4 5 0 Lima Brasil Greece 1 USA Twin Star Slovenija Other 2 9M Segment EBITDA of EUR 494mn = ~60% of Gro
Slide 73: Intl. Activities: Full Financial Recovery
Current Development – Intl. Activities & Services Full Financial Recovery thanks to Increased Profitability Excl. IFRIC 12: Revenue growth compared to EUR mn 9M22 9M21 9M19 3Q22 3Q21 3Q19 9M19, 3Q22 figure even at 112% Revenue 1,036 577 1,160 501 311 458 3Q22 Other Income reflects EUR c.24mn IFR
Slide 74: Strong 9M22 OCF Development and Capex Control
Current Development Strong 9M22 OCF Development and Capex Control EUR mn -25 -375 7,004 -14 -32 -37 +16 -178 6,370 +628 -344 -261 -7 -5 Free Cash Flow 9M22: € -609mn (excl. AYT new: € -234mn) OCF Brazil Greece Lima FRA Other Fixed IAS 23 IFRS Divs from Equity Other Net debt Net debt YE 2021 capex ca
Slide 75: 3Q22 Free Cash Flow clearly positive
Current Development 3Q22 Free Cash Flow clearly positive at EUR 125mn EUR mn Op. Cash Flow 443 OCF outperforms 3Q19 by 4% Brazil Capex 3 Brazil & Greece running on Inflows Maintenance Level Greece Capex 1 Outflows Well in line with EUR c.250mn Other Capex 61 FRA & Other Guidance Fixed Conc. Payments
Slide 76: Available Funds & Repayment Profile
Current Development Available Funds & Repayment Profile 11.000 in € mil. 10.788 10.000 €~8.9 bn Fraport AG debt 9.000 8.000 €~1.1 bn Greece debt Average debt condition 7.000 ~ 2.2 % interest rate € 367 mn Brazil debt 6.000 5.000 € 326 mn Lima debt 4,5231 4.000 3.784 3.000 3,784 2.000 10 14 16 11 13
Slide 77: Summing Up Current Development
Summing Up Current Development ”Traffic Momentum Building Up!” “Portfolio Optimization Underway” 1 “Financial Recovery via: - Higher Frankfurt Airport Charges 2 - Robust Retail & Real Estate Business - Good International Contribution and - Continued Opex Savings, despite highly Inflationary Environm
Slide 78: Agenda
1 I Group Overview 5 I Outlook 2 I Airport Highlights 6 I ESG 3 I COVID-19 Pandemic 7 I Appendix 4 I Current Development 78 3Q22 l Investor Relations Roadshow & Conference Presentation
Slide 79: Unchanged Outlook to 1H22 – Upper End Targeted
Outlook Unchanged Outlook to 1H22 – Upper End Targeted! 19FY Results 21FY Results Previous 22FY Outlook Outlook presented with 1H22 Passengers 24.8 mn Between ~55% and Between ~45 and 50mn Pax 70.6 mn FRA (35% of 2019) ~65% of 2019 = ~63% to ~71% Revenue €3.71 bn €2.14 bn €~3 bn Slightly above €~3 b
Slide 80: Updated 22FY Cash Flow, Capex & Net Debt Outlook
Outlook Updated 22FY Cash Flow, Capex & Net Debt Outlook Frankfurt T3 Capex: €~550mn 2022 FCF & Net Debt Bridge: Other Capex: EUR c.1.2 bn Capex €~250mn + EUR c.50mn Fixed Concession Payments & FCF: Borrowing Cost negative + EUR c.200mn Interest and Tax Payments Lima + EUR min. 300mn AYT Initial Equ
Slide 81: Medium-Term Outlook
Outlook 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!1 1 Based on like-for-like
Slide 82: Excerpts of IR Milestones
Outlook Excerpts of IR Milestones 2023 2025 2027 Positive 1H Base Effect from Drop out Commissioning of new Lima Terminal Completion of new FRA Concourse B Passenger of 2022 Omicron Dip expected Screening Lines – Marking new Era of FRA T1 Retail & FRA about to reach Pre-COVID PAX Passenger Experienc
Slide 83: Agenda
1 I Group Overview 5 I Outlook 2 I Airport Highlights 6 I ESG 3 I COVID-19 Pandemic 7 I Appendix 4 I Current Development 83 3Q22 l Investor Relations Roadshow & Conference Presentation
Slide 84: ESG Action Fields
ESG Action Fields We understand sustainability as the interplay of ecological, economic and social aspects. We have defined concrete targets for the five dimensions derived from this and report annually on their measures and target achievement. 84 3Q22 l Investor Relations Roadshow & Conference Pres
Slide 85: Materiality Matrix
ESG Materiality Matrix The materiality matrix shows the impact of direct and indirect business activities on the corresponding key topics, their relevance for stakeholders, as well as the relevance for Fraport‘s business activities. Our most important stakeholders Analysts, shareholders, employee re
Slide 86: Environmental Goals
ESG Environmental Goals Protection of Climate protection Air quality environment and nature “We provide our services with “We record the air pollutant emissions of environmental considerations in mind “We are reducing our CO₂ emissions.” all relevant emitters of airport and continuously improve our
Slide 87: Our contribution to a climate-neutral Europe
ESG Our contribution to a climate-neutral Europe We want to meet people's need for mobility without placing an additional burden on the environment. We are working at full speed to achieve this. Climate protection is one of the most urgent tasks facing the entire aviation industry. That is why we ha
Slide 88: Major Windpark CPPA Signed
ESG Major Windpark CPPA Signed Purchase of 85MW will reduce Commercial PPA signed with New Windpark “He Dreiht” Frankfurt CO2 Emissions by Provider EnBW on projected to be commissioned c.80k m.t. or just under Dec. 10th , 2021 by 2H26 50% of 2019 Fraport AG CO2 Emission Roadmap at Frankfurt Airport
Slide 89: New Frankfurt PV Plant
ESG New Frankfurt PV Plant New PV Plant to be constructed next to Take-off RWY West Test run currently underway Final Stage planned at approx. 2,600m of length and c.100m of width for 1H24 Max. Electricity Production of 13 MW Frankfurt on Track to Reduce its CO2 Emissions w/o any Compensatio
Slide 90: Employees
ESG Employees Attractive and responsible employer Occupational health and safety “We create good working conditions and increase employee satisfaction.” “We are continuously reducing occupational accidents.” “We increase the proportion of women in management positions.” “We stabilize the sickness ra
Slide 91: 2021 Diversity Data
ESG 2021 Diversity Data Share of women Women in Disabled management employees 26.3 % positions In Germany (level 1 and 2) 5.9 % +/- 0 PP 27.1 % -0.7 PP +1.2 PP Average age Foreign Apprentices employees 45.5 years In Germany 317 +0.2 years 24,1 % -9.2 % +0.4 PP 91 3Q22 l Investor Relations Roadshow &
Slide 92: Corporate Governance: Tier-Board Structure
ESG Corporate Governance: 2 Tier-Board Structure Duty to report Executive Board Appointment & dismissal, Supervisory Board control & advice Annual approval Annual approval Election of s/h representatives Duty to report Duty to report Right to convene Right to convene General Meeting 1 Share = 1 Vote
Slide 93: Executive Board
ESG Executive Board CEO CCO COO CHRO CFO Dr. Pierre Dominique Prof. Dr. Matthias Dr. Stefan Schulte Anke Giesen Julia Kranenberg Prümm Zieschang International Activities I Airport FRA: Retail & Real Estate I FRA: Aviation I Corporate FRA: Ground Handling I FRA: Facility Management I Expansion SouthI
Slide 94: New Executive Board Remuneration System
ESG New Executive Board Remuneration System as of 20FY Total remuneration capped for all Board members CEO salary cap: €3.0mil. o/w fixed annual is €715k Other board members cap: €2.2mil. each o/w fixed annual is €500-520k 94 3Q22 l Investor Relations Roadshow & Conference Presentation
Slide 95: Split of Executive Board Remuneration
ESG Split of Executive Board Remuneration 95 3Q22 l Investor Relations Roadshow & Conference Presentation
Slide 96: Supervisory Board Remuneration
ESG Supervisory Board Remuneration Annual fixed component Range Chairman receives 3x, Chairman of Finance & Audit Comittee receives 2x Vice Chairman and Chairmen of other Comittees receive 1.5x between €35-105k related components Non-performance Comittee fixed Membership Component Range Membership i
Slide 97: Our Commitments
ESG Our Commitments Commitments 97 3Q22 l Investor Relations Roadshow & Conference Presentation
Slide 98: Indices & Ratings
ESG Indices & Ratings MSCI Rating March 2022: AA Indices & Ratings 98 3Q22 l Investor Relations Roadshow & Conference Presentation
Slide 99: Agenda
1 I Group Overview 5 I Outlook 2 I Airport Highlights 6 I ESG 3 I COVID-19 Pandemic 7 I Appendix 4 I Current Development 99 3Q22 l Investor Relations Roadshow & Conference Presentation
Slide 100: Group P+L
Appendix Group P+L € million 9M 2022 9M 2021 Q3 2022 Q3 2021 Revenue 2.367,8 1.501,4 1.019,3 690,5 Other internal work capitalized 29,2 28,3 9,3 9,2 Other operating income 98,8 315,1 27,3 39,1 Total revenue 2.495,8 1.844,8 1.055,9 738,8 Cost of materials –777,1 –491,0 –322,4 –193,0 Personnel expense
Slide 101: Cash Flow
Appendix Cash Flow € million 9M 2022 9M 2021 Q3 2022 Q3 2021 € million 9M 2022 9M 2021 Q3 2022 Q3 2021 Result attributable to shareholders of Fraport Cash flow from operating activities 628,4 218,9 443,1 413,5 AG 65,8 97,0 114,7 76,6 Result attributable to non-controlling interests 32,3 21,0 36,5 26
Slide 102: Financial Position
Appendix Financial Position Assets Liabilities and equity September 30, December 31, September 30, December € million 2022 2021 € million 2022 31, 2021 Non-current assets Shareholders’ equity Goodwill 19,3 19,3 Issued capital 923,9 923,9 Investments in airport operating projects 3.836,1 3.416,4 Capi
Slide 103: International Holdings
Appendix International Holdings Fully consolidated Group companies € million Share in % Revenue1) EBITDA EBIT Result 9M 2022 9M 2021 Δ% 9M 2022 9M 2021 Δ% 9M 2022 9M 2021 Δ% 9M 2022 9M 2021 Δ% Fraport USA 100 75.8 44.7 +69.6 36.8 26.6 +38.3 0.8 0.0 – –3.0 –5.6 – Fraport Slovenija 100 25.5 14.9 +71.1
Slide 104: P&L of fully consolidated airport investments
Appendix P&L of fully consolidated airport investments Greece € mil. 9M22 9M19 FY19 Brasil € mil. 9M22 9M19 FY19 Ljubljana € mil. 9M22 9M19 FY19 Revenue 367 383 463 Revenue 61 228 283 Revenue 26 37 45 Revenue w/o IFRIC 12 361 247 297 Revenue w/o IFRIC 12 58 67 93 Revenue w/o IFRIC 12 26 37 45 Total
Slide 105: Overview of Major Special Effects 2021/2022
Appendix Overview of Major Special Effects 2021/2022 2022: 2021: International Activities / Xi‘An Aviation 2Q 22 EUR +53.7mn Other Income: Gain on Asset Disposal 1Q 21 EUR + 57.8mn Revenue: Settlement Security Dispute 2Q 21 EUR +159.8mn Other Income: State Compensation for Parts of Operating Interna
Slide 106: Dates: 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 107: 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 107 3Q22 l Investor Relations Roadshow & Conference Presentation