Flughafen Zurich Ag · SIX:FHZN
Flughafen Zurich — FY2022 Earnings Presentation
47 slides from Flughafen Zurich's earnings presentation, Mar 14, 2023
Slide 1: Full Year Results 2022
Full Year Results 2022 Presentation to Investors & Analysts Stephan Widrig, Chief Executive Officer Lukas Brosi, Chief Financial Officer March 14, 2023
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 Passengers (in million) Seat Load Factor Financial Update 3.1 3.1 2.7 2.7 2.9 2.9 2.9 80% 77% 82% 85% 84% 82% 82% 77% 2.1 2.4 2.2 2.3 69% 72% 76% 77% 2.0 81% 84% 83% 81% 79% 75% 77% 2.5 2.5 2.3 2.4 75% 74% 1.9 2.2 1.9 67% 70% 1.8 1.
Slide 4: Milestones
Milestones 4
Slide 5: Milestones Full Year 2022
Business Update Milestones Full Year 2022 Financial Update • Traffic: 22.6 million passengers in 2022 Aviation • Network: Over 90% of destinations served again; new routes to Riyadh (Saudia) and Addis Abeba (Ethiopian) established; Hong Kong (Cathay and SWISS) and Shanghai (SWISS) back • Landside: L
Slide 6: Roadmap to Net Zero 2040 at Zurich Airport
Roadmap to Net Zero 2040 (Scopes 1 and 2) at Zurich Airport Business Update Acceleration of Ambition from 2050 to 2040 Zurich Airport: CO2e Roadmap 1991-2040 (in tons) Financial Update 60,000 50,000 Goal to reduce to 20,000t CO2e in 2030 40,000 Outlook Goal to reduce to net-zero without offsetting i
Slide 7: Financial Summary
Financial Summary Business Update Strong Passenger Recovery reflected in Financial Figures Revenue (in million CHF) EBITDA (in million CHF) Financial Update 1,024 556 680 299 Outlook FY21 FY22 FY21 FY22 Consolidated Result (in million CHF) CAPEX Group** (in million CHF) Q&A 235 206 International 207
Slide 8: Aviation
Aviation 8
Slide 9: Aviation Business ZRH
Aviation Business ZRH Business Update Ongoing Air Travel Recovery Passenger numbers more than doubled in 2022, notching up to 90,000 passengers Financial Update per day at peak periods. Although still impacted by the pandemic at the beginning of the year, the number of passengers gradually rose over
Slide 10: Commercial Business and Real Estate
Commercial Business and Real Estate 10
Slide 11: Commercial Business ZRH and The Circle
Commercial Business ZRH and The Circle Business Update Key Planks of Corporate Strategy COMMERCIAL BUSINESS Financial Update The large commercial centers are benefiting from growing passenger numbers, the resurgence in commuter traffic and a steady rise in the number of workplaces and employees at t
Slide 12: Real Estate Revenue Split at Zurich Airport
Real Estate Revenue Split at Zurich Airport Business Update Opening of The Circle and Priora Acquisition changed Size and Tenant Mix Revenue from Rental Agreements* Expiry of Rental Agreements Financial Update (in % of revenue from rental agreements) in 2019 in 2022 2023 1% 19% 9% 16% 12% Revenue in
Slide 13: Commercial Business ZRH
Commercial Business ZRH Business Update Strong Commercial Turnover Recovery Commercial Turnover (in million CHF) Financial Update 576 594 601 511 295 237 Outlook FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 Turnover Airside (CHFm) Turnover Landside (CHFm) Q&A Total Airside Commercial Area ~14,200m2 Tot
Slide 14: International
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Slide 15: International: Passenger Numbers
International Business Update Passenger Numbers close to 2019 Florianópolis (in thousands) Vitória / Macaé (in thousands) Financial Update 472 305 301 283 278 290 294 384 266 361 361 313 325 316 246 266 264 259 240 274 251 293 286 294 359 361 270 268 258 263 255 272 312 243 219 221 229 217 286 255 2
Slide 16: Airports in Latin America
Florianópolis Terminal Airports in Latin America Brazil and Chile Traffic comparable to pre-pandemic level at airports in Brazil and Chile. MILESTONES • Florianópolis: More international flights than pre- pandemic and increased cargo frequencies to Miami • Vitória/Macaé: Construction of mandatory ru
Slide 17: Noida International Airport
Terminal Noida International Airport Construction started • EPC contract signed with Tata in June 2022 with mobilization of workers, setting up of site and start of construction shortly thereafter • Award of sub-concessions completed for: − Fuel facilities Runway − Airport hotel − Multi-modal cargo
Slide 18: Content
Content 01 Business Update 02 Financial Update 03 Outlook 04 Q&A 05 Appendix 18
Slide 19: One-off Effects 2022
One-off Effects 2022 Business Update Wide Range of One-off Effects with a total net volume of CHF 24 million Adjustments to Reported Figures (in million CHF) Financial Update • Impairment Chile: Due to the bankruptcy of the EPC contractor in Iquique, Chile, an impairment of CHF4m was booked due to d
Slide 20: Rising Revenue and Profit
Rising Revenue and Profit Business Update Full Year 2022 Revenue (in million CHF) Revenue Split (in million CHF) Financial Update • Significantly higher 1,024 • Aviation revenues more 1,024 revenue numbers mainly 680 than doubled due to travel 680 1,007 515 as a result of higher recovery and charges
Slide 21: Non-Aviation Figures
Non-Aviation Figures Business Update Full Year 2022 Commercial & Parking (in million CHF) Real Estate (in million CHF) Financial Update • Better performance of • Additional revenues from commercial business in 240 The Circle and higher general 199 energy/utility cost 168 • F&B recovered well allocat
Slide 22: Operating Expenses
Operating Expenses Business Update Full 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 24% increase in an end in H1 2022 police and security costs 197 171 105 85 O
Slide 23: Financial Key Ratios
Financial Key Ratios Business Update Full Year 2022 Net Financial Debt / EBITDA ROIC (in %) Financial Update • Net Financial Debt • Higher earnings led to an 4.6x increase in ROIC decreased to CHF 1,290m 4.7% 2.3x Outlook 0.4% FY21 FY22 FY21 FY22 Operating Cash Flow (in million CHF) Free Cash Flow*
Slide 24: Group CAPEX
Group CAPEX Business Update Full Year 2022 Financial Update New Baggage Sorting System ~CHF 56 million Refurbishment Runway 10/28 ~CHF 32 million Outlook Q&A Total Group CAPEX* of Appendix CHF 235 million The Circle ~CHF 13 million Noida International Airport ~CHF 25 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 2023
Outlook Business Update Guidance 2023 2022 Actual 2023 Guidance Financial Update Passengers ZRH 22.6 million • Around 26 million passengers Revenues CHF 1,007 million • Aviation: in line with traffic (excl. IFRIC12) • Non-Aviation: ~10% higher than in 2022 Aviation revenues CHF 491 million − Commerc
Slide 27: Capital Allocation
Capital Allocation Business Update Mid-term Priorities Financial Update 1. Restart of delayed projects in Zurich. 1. CAPEX ZRH 2. Opportunistically bought back CHF 35m nominal value of bonds at ~76% and retiring Outlook of CHF 400m in April. 2. Debt Reduction / Reinstated dividend payments with expe
Slide 28: Dividend Guidance
Dividend Guidance Business Update What to expect until FY2024? Expected Dividend Policy (in CHF per share) Financial Update 6.9 6.4 6.5 For Financial Year 2018, i.e. payment in 2019 3.2 3.2 3.2 Outlook Dividend suspension 3.7 due to Covid-19 3.2 3.3 Q&A FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY20
Slide 29: Development of Financial Debt
Development of Financial Debt Business Update Parent Company vs. Subsidiaries abroad Outstanding Financial Debt* (in million CHF) Financial Update 2'000 Deleveraging in Zurich on parent company level while increasing 1'500 leverage in international holdings Outlook 1'000 500 Q&A 0 FY2017 FY2018 FY20
Slide 30: Changes at Board of Directors and Management
Changes at Business Update Board of Directors and Management Financial Update Board Succession for Chairman and CEO Andreas Schmid, Chairman until April Josef Felder, proposed Chairman by Board* Outlook Q&A Seamless transition Appendix ensured among top management Stephan Widrig, CEO until end of Ap
Slide 31: Content
Content 01 Business Update 02 Financial Update 03 Outlook 04 Q&A 05 Appendix 31
Slide 32: Corporate Calendar
Corporate Calendar Business Update Contact Information • March 16, 2023 Financial Update ZKB Roadshow (Zurich) Lukas Brosi • March 22, 2023 Chief Financial Officer Stifel Roadshow (Frankfurt) (designated CEO) • March 29, 2023 Bank of America Infrastructure Conference (London) Outlook • April 24, 202
Slide 33: Content
Content 01 Business Update 02 Financial Update 03 Outlook 04 Q&A 05 Appendix 33
Slide 34: Liquidity and Debt Overview
Liquidity and Debt Overview Business Update As of December 31, 2022 Liquidity (in CHFm) Bond Maturity Profile (in CHFm)* Financial Update Committed Credit Facilities CHF 300m 500 400 Total utilization (incl. guarantees) CHF 11m In CHFm 300 Available short-term credit facilities CHF 289m 200 100 Cash
Slide 35: Zurich Airport at a Glance
Zurich Airport at a Glance Business Update Diversified Airport Operator AVIATION / REGULATED NON-AVIATION / UNREGULATED Financial Update 2022 revenue of CHF 491 million Commercial • “To satisfy the demand for direct connections to 2022 revenue of CHF 240 million the world’s major cities” • Leading c
Slide 36: Performance by Segment
Performance by Segment Business Update Aviation Segment recovering fast Financial Update FY 2022 Aviation Commercial Real Estate Services International** Revenue CHF 491m CHF 240m CHF 168m CHF 43m CHF 81m CHF 1,024m Outlook Q&A EBITDA* CHF 202m CHF 326m CHF 27m CHF 556m Appendix Aviation segment gen
Slide 37: Group Key Figures
Group Key Figures Business Update Income Statement* in million CHF Jan – Dec 2022 Jan – Dec 2021 Financial Update Aviation revenue 491.1 240.6 Non-aviation revenue 532.4 439.4 Revenue 1,023.5 680.0 EBITDA 555.6 299.2 EBITDA margin (in %) 54.3 44.0 Depreciation and amortization (295.3) (280.2) Outloo
Slide 38: Revenue Breakdown: Aviation Business
Revenue Breakdown Business Update Aviation Business in million CHF Jan – Dec 2022 Jan – Dec 2021 Financial Update Passenger-related operations charges 319.4 136.1 Landing charges 65.5 35.2 Aircraft-related noise charges 12.1 6.5 Emission charges 3.0 1.8 Aircraft parking charges 25.0 18.9 Freight cha
Slide 39: Revenue Breakdown: Non-Aviation Business
Revenue Breakdown Business Update Non-Aviation Business Jan – Dec 2022 Jan – Dec 2021 Financial Update in million CHF Retail, tax & duty-free 108.5 107.4 Food & beverage operations 21.6 13.3 Advertising media and promotion 17.7 16.2 Other commercial revenue 15.9 10.8 Revenue from multi-story car par
Slide 40: Cost Overview
Cost Overview Business Update Operating Expenses Breakdown in million CHF Jan – Dec 2022 Jan – Dec 2021 Financial Update Personnel expenses 196.9 171.3 Police and security 105.3 84.7 Energy and waste 34.2 22.2 Maintenance and material 38.8 27.9 Other operating expenses 50.1 45.2 Sales, marketing, ad
Slide 41: 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 42: Portfolio Overview – Majority Owned Airports
International Business Update Portfolio Overview – Majority Owned Airports Aport (Antofagasta and Financial Update Florianópolis, Brazil Vitória/Macaé, Brazil Noida Delhi, India** Iquique), Chile* FY22 FY21 Δ FY22 FY21 Δ FY22 FY21 Δ FY22 FY21 Δ Passengers (in millions) 3.4 2.4 41% 2.9 2.2 31% 3.8 2.
Slide 43: Passenger Development
Passenger Development Business Update Global Market Figures (2022 vs. 2021) Worldwide 2022 Financial Update From/to ZRH +121% Global market +148% Europe 2022 Share ZRH 76.5% From/to ZRH +77% Global market +186% Middle East 2022 Outlook Share ZRH 5.8% North America 2022 From/to ZRH +160% Share ZRH 9.
Slide 44: Alliance Share ZRH
Alliance Share ZRH Business Update Largest Alliances in ZRH (Jan – Dec 2022) Alliance Share ZRH Financial Update Lufthansa 66.6% Group 68.9% 64.9% Star Alliance Outlook 64.4% 5.5% Oneworld Passenger Growth 4.3% Lufthansa Group 114% Q&A 4.1% Star Alliance 123% Skyteam 4.0% Oneworld 181% Skyteam 122%
Slide 45: Traffic Ratios
Traffic Ratios Business Update Seat Load Factor, Passengers per Movement and Take-Off Weight Traffic Ratios ZRH Financial Update 80% 77% 77% 76% 75% 75% 74% 74% 73% 73% 130.00 126 Passengers per Movement (PAX) 125 125 Average Take-Off Weight (tons) 70% 120 67% 119 Outlook Seat Load Factor 114 115.00
Slide 46: 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 22.6 22.1 21.9 350'000 21.0 20.7
Slide 47: 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