Flughafen Zurich AG · SIX:FHZN
Flughafen Zurich — FY2009 Earnings Presentation
45 slides from Flughafen Zurich's earnings presentation, Mar 19, 2010
Slide 1: Analysts' Presentation – 2009 Financial Results
Analysts‘ y Presentation – 2009 Financial Results Thomas E. Kern Daniel Schmucki Chief Executive Officer Chief Financial Officer Zurich | Airport | 19.03.2010 | © Flughafen Zürich AG
Slide 2: Schedule
Schedule 1. 2009 Highlights 3 2. Full Year Key Data 4 3. Aviation 8 4. Non Aviation 13 5 Result / Balance Sheet 5. 17 6. Other Key Topics 22 7. Outlook 2010 31 8. Your Questions 39 2 | 19.03.2010 | 2009 Financial Results © Flughafen Zürich AG
Slide 3: 2009 Highlights
1. 2009 Highlights • Traffic development p significantly g y better than expected p • Issuance of CHF 225m bond • Successful Schengen implementation • Construction of Pier B and Centralized Security Building started • Refusal of the “fair traffic allocation” initiative • New large scale tenants • Di
Slide 4: Full Year Key Data
2. Full Year Key Data 4 | 19.03.2010 | 2009 Financial Results © Flughafen Zürich AG
Slide 5: 2009 Traffic
2009 Traffic 2009 2008 Delta Local passengers 13'833'504 14'263'306 -3.0% Transfer passengers 8'008'278 7'759'300 3.2% Transfer share 36.6% 35.2% Total passengers 21'926'872 22'099'233 -0.8% Movements 262'121 274'991 -4.7% whereof Line & Charter movements 223'357 223 357 231'775 231 775 -3 6% -3.6%
Slide 6: 2009 Financial Results
2009 Financial Results in million CHF 2009 2008 Delta Revenues 820.2 855.1 -4.1% Aviation revenue 505 1 505.1 525 7 525.7 -3.9% 3 9% Non-Aviation revenue 315.1 329.4 -4.3% EBITDA 402.2 420.2 -4.3% EBITDA margin i 49 0% 49.0% 49 1% 49.1% EBIT 213.2 234.1 -8.9% EBIT margin 26.0% 27.4% Net profit 190.6
Slide 7: 2009 Financial Results (without noise impact)
2009 Financial Results (without noise impact) 2009 2008 in million CHF Delta w/o noise w/o noise Revenues 792.6 813.0 -2.5% Aviation revenue 472 8 472.8 479 3 479.3 -1.3% 1 3% Non-Aviation revenue 319.8 333.7 -4.2% EBITDA 374.6 378.1 -0.9% EBITDA margin i 47 3% 47.3% 46 5% 46.5% EBIT 191.2 194.8 -1.
Slide 8: Aviation
3. Aviation 8 | 19.03.2010 | 2009 Financial Results © Flughafen Zürich AG
Slide 9: Aviation Segment Revenue Breakdown
Aviation Segment Revenue Breakdown • O Over-proportional e p opo o a dec decrease ease oof in million CHF 2009 2008 Delta passenger & security charges as a result of decrease of local Passenger charges 173.0 176.8 -2.1% passengers, who pay higher Securityy charges g 140.3 142.1 -1.3% charges h PRM c
Slide 10: Traffic: European Passenger Benchmark
Traffic: European Passenger Benchmark (millions) London LHR, -1.5% Paris CDG, -4.8% Frankfurt FRA, -4.9% Madrid MAD, -5.1% Amsterdam AMS, -8.2% Munich MUC, -5.4% Zurich ZRH, -0.8% Copenhagen CPH, -8.4% Vi Vienna VIE VIE, -8.3% 8 3% Milan MXP, -8.8% Brussels BRU, -8.4% Geneva GVA, -1.3% PAX 2008 PAX
Slide 11: Passengers by Customer Segments
Passengers by Customer Segments Star Alliance (0.5% vs. 2008) 71.6% whereof 59% Swiss International Air Lines Ltd. Low Cost Carrier (-0.7% vs. 2008) 10.3% OneWorld (-3.8% vs. 2008) 4.8% Skyteam (-16.4% vs. 2008) 3.9% 2008 Charter (-27.9% vs. 2008) 2.7% 2009 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100
Slide 12: Key Indicators
Key Indicators Seat Load Factor Passengers per Movement Average Take Take-Of Of f Weight 72% 110 Seat Load f actor 71% Passengers per Movement Average Take-Of f Weight 70% 100 69% 68% 90 67% 66% 80 65% 64% 70 63% 62% 60 61% 60% 50 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 12 | 19.03.2010 | 2
Slide 13: Non Aviation
4. Non Aviation 13 | 19.03.2010 | 2009 Financial Results © Flughafen Zürich AG
Slide 14: Non Aviation Segment Revenue Breakdown
Non Aviation Segment Revenue Breakdown • Rents & Leases positively p y influenced by first full year in million CHF 2009 2008 Delta letting of surfaces in the building of the new Airport Real estate 117.4 117.0 0.4% hotel Rents and leases 85.6 82.1 4.2% • Lower spend per dep. PAX Utilities 26.1 25.5
Slide 15: Real Estate: Development of Revenue
Real Estate: Development of Revenue 15 | 19.03.2010 | 2009 Financial Results © Flughafen Zürich AG
Slide 16: Commercial: Gross Income Shop-Operators
Commercial: Gross Income Shop-Operators 16 | 19.03.2010 | 2009 Financial Results © Flughafen Zürich AG
Slide 17: Result / Balance Sheet
5. Result / Balance Sheet 17 | 19.03.2010 | 2009 Financial Results © Flughafen Zürich AG
Slide 18: Operating Expenses
Operating Expenses • Increase p personnel costs due to in million CHF 2009 2008 Delta • Insourcing staff for maintenance of baggage Personnel 158.4 152.4 4.0% sorting system (May 11, 08) Security costs 113 5 113.5 113 0 113.0 0 4% 0.4% • Nominal salary increases Energy & waste 24.6 25.0 -1.8% as of
Slide 19: Net Result
Net Result • Increase in depreciation as a in million CHF 2009 2008 Delta result of first time full year effect of amortizing intangible asset for EBITDA 402.2 420.2 -4.3% „formal expropriation“ EBITDA margin 49.0% 49.1% • Lower L nett costt off capital it l due d tot Depreciation -189.1 -186.2 1.6%
Slide 20: Other Key Figures
Other Key Figures • Strong free cash flow in million CHF 2009 2008 Delta generation despite lower cash flow from operating Cash flow operating activities 350.9 415.1 -15.5% activities Cash flow investing activities -134.4 -258.8 -48.1% • Decrease of net financial whereof CAPEX 180.9 249.9 debt in ad
Slide 21: Other Key Figures (continued)
Other Key Figures (continued) • Financial KPI KPI‘ss improved incl noise incl. excl noise excl. • ROCE (excl. noise) at 2009 2008 2009 2008 5.8%, only slightly below 2008 Net Financial Debt/ EBITDA 2.08 2.42 2.73 3.12 • Return on equity positively Cash Flow from operating 41.9% 40.7% 31.7% 32.2% inf
Slide 22: Other Key Topics
6. Other Key Topics 22 | 19.03.2010 | 2009 Financial Results © Flughafen Zürich AG
Slide 23: Update Zurich 2010
Update Zurich 2010 Pier B 9 Mod. of Immigration Hall 9 Passageway to Pier B 9 Busgate B01-10 Centralized Skymetro Security 9 extension 23 | 19.03.2010 | 2009 Financial Results © Flughafen Zürich AG
Slide 24: The Circle
“The Circle“ • Architectural contest completed p in February 2010 • Japanese architect - Riken Yamamoto - chosen as winner • Preliminary study will further specify the winning concept, ensure all requirements are f lfill d among others fulfilled, th profitability, functionality • Project continues t
Slide 25: The Circle - Flexibility and possible legs
”The Circle“ - Flexibility and possible legs* • Discussion on financing g structure progresses well • Focus on establishing a separate, new company • Financing structure of this new company as well as stake held by Zurich Airport might change as the project de develops elops • Construction is possib
Slide 26: Update on Arrival Duty Free
Update on Arrival Duty Free • The process of implementing arrival duty free is in its final stage • Positive decision of Federal Government in March 2010 • Decision from Parliament expected by autumn 2010 • Implementation of shops are scheduled for spring 2011 26 | 19.03.2010 | 2009 Financial Result
Slide 27: Update on International Activities
Update on International Activities Bangalore g • High operational performance in terms of quality & punctuality • Double digit g traffic increase since July y 2009 • Way forward on 2nd expansion agreed on BIAL board level Indian Subcontinent • Strategic alliance with GVK Latin America • Traffic in C
Slide 28: Update on Noise-Related Payouts
Update on Noise-Related Payouts • Several agreements regarding compensation payments for formal expropriation reached in 2009 (compensation payments 2009 of CHF 3.8m) • Financing of these old noise-related liabilities by Canton of Z i hd Zurich due tto supplement l t tto merger agreementt • Cost for
Slide 29: Update on Political Issues
Update on Political Issues Canton of Zurich • „Fair Traffic Allocation“ initiative: • refusal at public vote in September 2009 • clear commitment to Zurich Airport • „Ban of Runway Extension“ initiative: • Parliament of Canton Zurich supports, government of Canton Zurich refuses initiative • counter
Slide 30: Update on Political Issues (continued)
Update on Political Issues (continued) Federal Government of Switzerland • Restrictions for approaches over German territory: • result of bi-national analysis of noise impact • no exceeding of the noise threshold on German territory • Switzerland will make proposal for definitive solution • SIL Proc
Slide 31: Outlook
7. Outlook 31 | 19.03.2010 | 2009 Financial Results © Flughafen Zürich AG
Slide 32: Outlook 2010 – Traffic January/February
Outlook 2010 – Traffic January/February 2010 2009 Delta Jan.-Feb. Jan.-Feb. Local passengers 1'981'982 1'839'625 7.7% Transfer passengers 1'157'284 1'077'358 7.4% T Transfer f share h 36 8% 36.8% 36 9% 36.9% Total passengers 3'154'177 2'929'713 7.7% Movements 39'861 39'391 1.2% whereof Line & Charte
Slide 33: Timetable changes – Swiss International Air Lines
Timetable changes – Swiss International Air Lines Swiss additions/reductions summer timetable 2010 3 New destination: San Francisco, 6x weekly 3 Barcelona, 3x increased to 4x daily 3 Berlin, 5x increased to 6x daily 3 Chicago, Los Angeles, Miami, Sao Paulo, 6x increased to 7x weekly 3 Malaga, 9x inc
Slide 34: Timetable changes – other airlines
Timetable changes – other airlines New services / cancellations 3 Air Berlin Various destinations (e.g. Bari, Malaga, Neapel, Palermo, Rimini) 3 Delta Air Lines New York (JFK), 1x daily as of May (relaunch) 3 easyJet y Manchester,, 6x weeklyy 3 Helvetic Airways Rostock, 2x weekly 3 Robin Hood Linz,
Slide 35: Outlook 2010 – Commercial Activities January/February
Outlook 2010 – Commercial Activities January/February 2010 2009 Delta Jan.-Feb. Jan.-Feb. Total turnover, m CHF 72.6 68.7 5.6% Airside ((change g versus p prev. yyear)) 5.2% -12.5% Landside (change versus prev. year) 6.1% 14.5% Commercial turnover pax, CHF 46.0 46.9 -1.9% Airside (change versus prev
Slide 36: Casino at Zurich Airport
Casino at Zurich Airport • New allocation of casino concession by Swiss Federal Council • If Canton of Zurich obtains concession, decision by Government of the Canton regarding di llocation ti • Airport as an ideal location • Optimal infrastructure • Swiss Casinos as an experienced partner 36 | 19.0
Slide 37: Guidance 2010
Guidance 2010 • Passenger increase off 3 - 5% % • Transfer share 36 - 37% • Total p passengers g between 22.5 and 23.0 million • Non-aviation revenue growth slightly under-proportional compared to aviation-revenues • EBITDA margin to increase slightly • Depreciation at 2009 level • Net result betwee
Slide 38: Disclaimer
Disclaimer This document has been prepared by Unique (Flughafen Zürich AG) 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, th
Slide 39: Your Questions
8. Your Questions 39 | 19.03.2010 | 2009 Financial Results © Flughafen Zürich AG
Slide 40: Annex to Analyst's Presentation
Annex to Analyst‘s Presentation 40 | 19.03.2010 | 2009 Financial Results © Flughafen Zürich AG
Slide 41: Capex Plan
Capex Plan CAPEX (Mio CHF) 2009 2010 2011 2012 2013 2014 2015 2016 2017 Terminal Area Zürich 2010 62 120 120 55 20 Zone Terminal 2 20 25 50 50 40 15 Zone Terminal 1 8 10 30 40 Parking Parking (replacement / additional) 6 5 30 30 10 30 30 15 5 Parking (existing capacity) 6 5 5 5 5 5 5 5 Area East Car
Slide 42: Repayment Schedule (as per 31.12.2009)
Repayment Schedule (as per 31.12.2009) Major repayments: • Partly repayments CBL (2010-12) • Partly repayments US PP (2011-15) ( ) • Bonds 150m (2010) and 225m (2014) • Repayment p y Japanese p PP (2024) 42 | 19.03.2010 | 2009 Financial Results © Flughafen Zürich AG
Slide 43: Debt Maturity Structure (Financial Liabilities)
Debt Maturity Structure (Financial Liabilities) 2009 15.6% 44.2% 40.2% 2008 14.3% 38.1% 47.6% 2007 3.6% 48.0% 48.4% 2006 8.7% 38.8% 52.5% 2005 7.8% 23.5% 68.7% 2004 6 9% 6.9% 26 5% 26.5% 66 5% 66.5% 2003 6.5% 25.1% 68.4% 2002 17 4% 17.4% 54 4% 54.4% 28 2% 28.2% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90%
Slide 44: Hub Carrier Dominance at European Airports (seats offered)
Hub Carrier Dominance at European Airports (seats offered) hubcarrier FRA alliance members ZRH MUC CDG AMS VIE BRU CPH MAD LHR MXP 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 44 | 19.03.2010 | 2009 Financial Results © Flughafen Zürich AG
Slide 45: ZRH Passenger Market Share & Growth
ZRH Passenger Market Share & Growth North America Europe Share 77.9% (PY:77.2%) Share: 7.3% (PY:7.4%) Change in Pax: 0.1% Change in Pax: -1.9% Asia Share: 10 10.2% 2% (PY:10 (PY:10.4%) 4%) Change in Pax: -2.3% Latin America Africa Share: 0.9% (PY:1.1%) Share: 3.7% (PY:3.9%) Change in Pax: -18% Chang