2013 full year financial results - zurich airport/media/flughafenzh/... · •profit hy2013...

© Flughafen Zürich AG | | Zurich Airport |

2014 Half year financial results

Thomas E. Kern Chief Executive Officer

Daniel Schmucki Chief Financial Officer

27.08.2014

© Flughafen Zürich AG | |

Schedule

1. Major events HY2014 3

2. Half year key data 4

3. Aviation 8

4. Non-aviation 11

5. OPEX & other key figures 14

6. Business update 19

7. Outlook 24

8. Your questions 27

27.08.2014 2 2014 Half Year Financial Results


1. Major events HY2014

27.08.2014 2014 Half Year Financial Results 3

• Strong operating performance

• Favorable passenger mix, strong local demand

• Opening Terminal 2 (southern part)

• Advisory mandate in Kazakhstan

• Inauguration Noise Protection Hangar

• Several (re)openings in the commercial center

(i.e. H&M, Sprüngli, Fernweh Bar)

• «The Circle»: planning phase almost completed

• Further strengthening of balance sheet,

repayment of CHF 280 Mio. long-term debt


2. Half year key data



Half year traffic figures


in millionJan-Jun 2014 Jan-Jun 2013

Local passengers 8.1 7.8 ████ + 4.1%

Transfer passengers 3.7 4.0 -6.6% ██████

Transfer share (in %) 31.4 33.8 -7.1% ███████

Total passengers 11.9 11.8 + 0.5%

Movements (in 1'000) 128.3 128.5 -0.2%

whereof line & charter movements 110.5 111.5 -0.9%

Cargo (in 1'000 tons) 211.8 204.6 ███ + 3.5%

∆ (in %)


Financial key figures including noise

• Profit HY2013 excluding negative one-off effect of restructuring financial liabilities: CHF 83.4 Mio.

• Profit growth excluding one-off effect: +5.7%


in million CHF Jan-Jun 2014 Jan-Jun 2013

Aviation revenue 268.8 286.4 -6.1% ██████

Non-aviation revenue 184.8 183.0 █ + 1.0%

Revenue 453.7 469.4 -3.4% ███

EBITDA 240.6 245.3 -1.9% █

EBITDA margin (in %) 53.0 52.3

EBIT 127.7 134.3 -4.9% ████

EBIT margin (in %) 28.1 28.6

Finance result (net) -16.7 -123.3 n/a

Profit 88.1 10.1 n/a

Interest-bearing liabilities (net) 691.0 819.8 -15.7% ███████

Cash flow from operating activities 213.3 201.5 █████ + 5.8%

CAPEX 111.2 100.9 ██████ + 10.2%

EpS (in CHF) 14.3 1.6 n/a

∆ (in %)

Adjustment 2013

Aviation -CHF 1.5 Mio.

Non-aviation +CHF 1.5 Mio.


Financial key figures excluding noise



Aviation revenue 263.2 260.8 + 0.9%

Non-aviation revenue 184.8 183.0 █ + 1.0%

Revenue 448.0 443.8 + 1.0%

EBITDA 236.8 221.6 ██████ + 6.9%

EBITDA margin (in %) 52.9 49.9 █████ + 5.9%

EBIT 127.7 114.4 ███████ + 11.6%

EBIT margin (in %) 28.5 25.8 ██████████ + 10.6%

Finance result (net) -15.5 -121.8 n/a

Profit 89.6 -5.4 n/a

Interest-bearing liabilities (net) 973.4 1'100.8 -11.6% ██████

Cash flow from operating activities 210.2 188.6 ██████ + 11.4%

CAPEX 111.2 100.9 ██████ + 10.2%

EpS (in CHF) 14.5 -0.9 n/a

∆ (in %)

• Profit HY2013 excluding negative one-off effect of restructuring financial liabilities: CHF 67.8 Mio.

• Profit growth excluding one-off effect: +32.2%

Adjustment 2013

Aviation -CHF 1.5 Mio.

Non-aviation +CHF 1.5 Mio.


3. Aviation



Aviation segment revenue breakdown


• Higher passenger & security charges as a result of the favorable passenger mix

• Lower flight ops. charges due to the suspension of the pax noise charges as per 1st of Feb. 2014

• Less revenue form de-icing because of the mild winter


Passenger & security charges 176.3 171.7 ██ + 2.6%

PRM charges 5.3 5.3 + 0.5%

Passenger noise charges 2.0 22.6 n/a

Landing charges 42.2 41.5 █ + 1.6%

Aircraft noise charges 3.7 3.0 ███████ + 21.6%

Emission charges 1.6 1.6 + 0.1%

Aircraft parking charges 3.4 3.6 -5.6% █████

Freight revenue 4.0 3.8 ██ + 2.9%

Total operational charges 238.3 253.1 -5.9% █████

Baggage sorting & handling system 14.1 14.0 + 0.4%

Aircraft energy supply system 6.4 6.2 ██ + 2.5%

De-icing 0.7 3.3 n/a

Other fees 7.9 7.8 + 0.1%

Total aviation fees 29.0 31.4 -7.5% ███████

Total other aviation revenue 1.5 1.9 n/a

Total aviation revenue 268.8 286.4 -6.1% ██████

Ø Landing charge per movement (in CHF) 657.4 646.1 █ + 1.7%

∆ (in %)


Passenger development

2014 Half Year Financial Results 27.08.2014 10

North America HY 2014

Market share ZRH 8.3%

from/to ZRH -2.8%

global market +3.1%

Source: ACI & ZRH data warehouse

Latin America HY 2014


from/to ZRH -1.4%

global market +7.5%

Europe HY 2014


from/to ZRH +0.4%

global market +5.5%

Africa HY 2014


from/to ZRH -10.1%

global market 0.0%

Middle East HY 2014


from/to ZRH +9.0%

global market +9.0%

Asia-Pacific HY 2014


from/to ZRH +3.4%

global market +5.0%

Worldwide HY 2014

from/to ZRH +0.5%

global market +4.8%


4. Non-aviation



Non-aviation segment revenue breakdown

27.08.2014

• Lower commercial revenues on landside due to several construction sites

• Higher revenue from car parks because of the higher share of local passengers

• Increasing revenues from consulting activities (Brazil & Kazakhstan)

12 2014 Half Year Financial Results


Retail, tax & duty free 45.0 44.6 + 0.9%

Food & beverage 7.2 7.3 -0.9%

Revenue from car parks 34.9 32.5 ███████ + 7.4%

Other commercial revenue 14.6 14.8 -1.7% █

Total commercial revenue 101.6 99.2 ██ + 2.5%

Revenue from rental & leasing agreements 44.5 44.6 -0.3%

Energy and utility cost allocation 12.6 14.2 -11.6% ████████

Cleaning and other service revenue 2.8 3.0 -5.1% █████

Revenue from facility management 59.9 61.8 -3.2% ███

Revenue from services 23.3 22.0 ██████ + 6.0%

Total non-aviation revenue 184.8 183.0 █ + 1.0%

Ø Revenue retail, tax & duty free,

F&B per departing PAX (in CHF) 8.8 8.8 + 0.2%

∆ (in %)

© Flughafen Zürich AG | | 27.08.2014 2014 Half Year Financial Results 13

Key figures commercial business

airside ~14’200m2

landside ~18’000m2 additional space by

end of 2014: ~1’000m2


5. OPEX & other key figures



Operating expenses

27.08.2014

• Lower energy and material costs as a consequence of the mild winter

• Lower sales, marketing and administration expenses due to strict cost management



Personnel expenses 88.8 88.9 -0.1%

Police and security 59.4 58.4 █ + 1.6%

Energy and waste 10.1 13.8 -27.2% ████████

Maintenance and material 18.6 20.1 -7.4% █████

Other operationg expenses 25.9 27.7 -6.7% █████

Sales, marketing, administration 15.8 17.3 -8.9% ███████

Capitalised expenditure & other income -5.5 -2.2 █████ + 144.7%

Total operating expenses 213.1 224.1 -4.9% ███

∆ (in %)


Key figures


* excluding negative one-off effect of restructuring of the financial liabilities

in million CHF Jan-Jun 2014 Jan-Jun 2013* Jan-Jun 2014 Jan-Jun 2013*

EBITDA 240.6 245.3 236.8 221.6

EBITDA margin (in %) 53.0 52.3 52.9 49.9

Depreciation and amortisation -112.9 -111.0 -109.1 -107.2

EBIT 127.7 134.3 127.7 114.4

EBIT margin (in %) 28.1 28.6 28.5 25.8

Finance result (net) -16.7 -31.4 -15.5 -30.3

Associated companies 0.0 1.4 0.0 1.4

Income tax expense -22.8 -20.9 -22.7 -17.6

Profit 88.1 83.4 89.6 67.8

Net financial debt / EBITDA 1.32x 1.59x 1.98x 2.36x

Net financial debt 691.0 819.8 973.4 1'100.8

ROIC (in %) 7.4 7.3 7.3 6.7

Return on equity (in %) 10.8 10.4 10.5 10.3

Equity ratio (in %) 55.4 48.7 58.4 51.1

Cashflow from operating activites 213.3 201.5 210.2 188.6

CAPEX 111.2 100.9 111.2 100.9

Free cashflow 102.1 100.7 99.0 87.7

excl. n

ois

e

incl. n

ois

e


Reformed financial reporting


regulated

security

non-regulated noise

access

fee

user fee PRM aviation

aviation

security

non-aviation revenue aviation revenue

e.g. check-in, gate and transfer desk

e.g. catering, fuel charges

• Aviation revenues correspond to the regulated business according to the ordinance

• Non-aviation revenues correspond to the non-regulated business

P&

L

Se

gm

en

t

rep

ort

same structure for P&L and segment reporting

aviation fees aviation charges


Segment report


NOPLAT Invested Capital

CHF 73 Mio. CHF 144 Mio.

ROIC 3.8% ROIC 13.8%

CHF 1’886 Mio. CHF 1’017 Mio.


6. Business update



Investments

27.08.2014

Investments per 30.06.2014 (in million CHF)

1 Renovation Runway 14/32 18.8

2 Upgrade Terminal 2 17.7

3 «The Circle» 11.4

4 Various maintenance

projects in real estate 9.4

5 General Wastewater Plan-

Renewal (GEP) 7.1

6 Noise Protection Hangar 5.1

7 Expansion parking 3.4

8 Expansion Migros 1.8

9 Redesign curbside lanes 1.6

10 Stands Echo Nord 1.5

other investments 15.8

Total investments * 93.6

Renovation Runway 14/32 ~CHF 43 Mio.

2014 planned investment costs for largest projects


Civil engineering ~CHF 42 Mio.

Upgrade T2 ~CHF 40 Mio.

«The Circle» ~CHF 30 Mio.

* based on output, incl. capitalised expenditure


Update on charges


16.12. Appeal by some users to Federal Administrative Court

14.11. Decision of airport charges by FOCA

22.08. Failure of airport charges negotiation

Decision by Federal Administrative Court in Q4 2014 / Q1 2015

2013

2014

Final ruling by Swiss Federal Court

13.03. 1st decision by Federal Administrative Court: suspensive effect granted

Potential appeal to Swiss Federal Court

next steps


«The Circle at Zurich Airport»


Hyatt Regency Health Center

Convention Center

Hyatt Place

current pre-lettings


International business – status update


Santiago de Chile Intl. Airport, Chile Belo Horizonte Intl. Airport, Brazil

Project information

• 10.3 million PAX, 120‘000 ATM

• Concession until 2043

• 12% share

• Operations management & services agreement

(OMSA)

Kazakhstan Airports

Current status

• Zurich airport started its operations on 12th of

August 2014

• Construction works for expansion of airport to be

initiated in November 2014

Project information

• Portfolio of 11 airports

• Largest airport: Astana International Airport with

2.6 million PAX, 20’300 ATM

• No equity investment

• Operations management & services agreement

(OMSA) for 7 years

Project information

• 15 million PAX

• 20 years concession

• Up to 40% share

• Technical Service Agreement (TSA)

Current status

• Zurich airport started its operations in April 2014

• Terminal expansion Astana Airport to be ready for

Expo 2017

• Currently 6 of the 11 airports under trust

management, remaining 5 airports planned to be

added in Q4 2014

Current status

• Zurich airport has pre-qualified for the bid-stage

• Setting up consortium with A-port Chile and

potential other interested investors

• Very high competition expected in the final bidding

round


7. Outlook



Timetable 2014/2015


Swiss International Air Lines

Destination Details

Sao Paulo, Miami 11x weekly (7x); 13x weekly (10x)

Lugano ~50% higher capacity due to bigger aircraft

CDG, TXL, IST, NCE, MXP (among others) Selective reductions on several European services; all LX destinations remain in place

Other Airlines

Airline Destination Details

Etihad Regional Dresden New service, daily (per September)

Edelweiss Air Capetown 3x instead of 2x weekly

Delta New York New service in the winter timetable (so far only during summer season)

Vueling various Additional weekly services to Alicante (5x), Florenz (6x), Malaga (5x), Rom (11x), Sevilla

(3x) and Valencia (6x) (per October)

Air Canada Toronto 5x instead of 4x weekly

US Airways Philadelphia No service during winter season (back in summer timetable 2015)

Delta Atlanta No service during winter season (back in summer timetable 2015)

Germanwings Düsseldorf Takeover of Lufthansa flights to Düsseldorf

(per 04/08/2014)

http://upload.wikimedia.org/wikipedia/commons/4/45/New_Swiss_Coorporate_Logo.jpg


The guidance 2014 is based on the full year results 2013, excl. the one-off effect in the finance result

(CHF 82.9 Mio. pre-tax).

Guidance 2014 – increase of profit guidance


* The full year impact in the year 2014 of the suspension of the passenger noise charge as per 1st of February 2014 amounts to

approx. CHF 45 mio. (pre-tax).

PAX moderate growth (0-1%) moderate growth (0-1%)

Revenue lower slightly higher

Aviation lower prop. to traffic growth

Non-aviation overprop. to PAX growth overprop. to PAX growth

EBITDA margin lower higher (ex slightly higher)

Depreciation & amortisation slightly higher slightly higher

Profit 2-5% lower (ex 5-10% lower) 20-25% higher (ex 15-20% higher)

Investments approx. CHF 250 mio. approx. CHF 250 mio.

incl. n

ois

e *

excl. n

ois

e

© Flughafen Zürich AG | | 27.08.2014

8. Your questions

2014 Half Year Financial Results 27

Roadshow Zurich (Zürcher Kantonalbank) Thursday, 28th of August 2014

Roadshow Frankfurt (Kepler Cheuvreux) Monday, 1st of September 2014

Roadshow London (Royal Bank of Canada) Friday, 12th of September 2014

Publication Full Year Results 2014 Tuesday, 17th of March 2015 (tbc)

General Shareholder Assembly 2015 Tuesday, 28th of April 2015


IR contacts

Stefan Weber

Investor Relations & Treasury

+41 (0)43 816 27 15

[email protected]


Lukas Brosi

Head Financial Services

+41 (0)43 816 72 91

[email protected]

mailto:[email protected]







Disclaimer

This document has been prepared by 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, the fairness, accuracy, completeness or correctness of the information or opinions contained therein. Neither the company nor any of its affiliates, advisors or representatives shall have any liability whatsoever (in negligence or otherwise) for any loss arising from any use of this document or its content or otherwise arising in connection with this document.

This document does not constitute an offer or invitation to purchase or subscribe for any shares and neither this document nor any part of it shall form the basis of, or be relied upon in connection with, any contract or commitment whatsoever.

This document contains forward-looking statements that are based on current estimates and assumptions made by the management of Flughafen Zürich AG to the best of its knowledge. Such forward-looking statements are subject to risks and uncertainties, the non-occurrence or occurrence of which could cause the actual results – including the financial condition and profitability of Flughafen Zürich AG – to differ materially from or be more negative than those expressed or implied by such forward-looking statements. This also applies to the forward-looking estimates and forecasts derived from third-party studies. Consequently, neither the Company nor its management can give any assurance regarding the future accuracy of the opinions set forth in this document or the actual occurrence of the predicted developments.

By accepting this document, you agree with foregoing.


© Flughafen Zürich AG | | 27.08.2014 30 2014 Half Year Financial Results

YTD: traffic & commercial figures

Traffic figures

Commercial figures

in millionJan-Jul 2014 Jan-Jul 2013

Local passengers 9.9 9.5 ████ + 4.3%

Transfer passengers 4.4 4.7 -6.4% ██████

Transfer share (in %) 30.9 33.2 -6.9% ██████

Total passengers 14.4 14.3 + 0.7%

Movements (in 1'000) 152.8 153.2 -0.3%

whereof line & charter movements 131.9 132.5 -0.4%

Cargo (in 1'000 tons) 248.7 240.3 ███ + 3.5%

∆ (in %)

Jan-Jul 2014 Jan-Jul 2013

Total turnover in mio. CHF 307.5 308.3 -0.3%

Airside (Change vs. previous year period in %) 0.9 7.6 -88.2%

Landside (Change vs. previous year period in %) -1.8 0.6 -400.0%

Commercial turnover / dep. PAX in CHF 42.7 43.1 -1.0% █

Airside (Change vs. previous year period in %) 0.2 7.5 -97.3%

Landside (Change vs. previous year period in %) -2.5 0.4 -725.0%

∆ (in %)


Financial liabilities (per 30.06.2014)



Customer segments ZRH HY2014


passenger growth vs.

previous year


Star Alliance hubs (Jun 2012 – Jun 2014)



Key indicators


-

10

20

30

40

50

60

70

80

90

100

110

120

130

0%

25%

50%

75%

100%

HY/2005 HY/2006 HY/2007 HY/2008 HY/2009 HY/2010 HY/2011 HY/2012 HY/2013 HY/2014

Seat Load Factor

Seat Load Factor Passengers per Movement Average Take-Off Weight

Source: Zurich Airport, data warehouse, 2014

Passengers per Movement (PAX)Average Take-Off Weight (tons)

2013 full year financial results - zurich airport/media/flughafenzh/... · •profit hy2013...

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