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Fraport AG
November 2, 2017 / Frankfurt Main
Analyst Presentation 9M 2017
Dr. Stefan Schulte / CEO
Dr. Matthias Zieschang / CFO
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Fraport AG
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 whetherexpress or implied is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctnessof the information or opinions contained therein. Neither the company nor any of its affiliates, advisors or representatives shallhave any liability whatsoever (in negligence or otherwise) for any loss arising from any use of this document or its content orotherwise 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 norany 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 themanagement of Fraport 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 ofFraport 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 thecompany nor its management can give any assurance regarding the future accuracy of the opinions set forth in this documentor the actual occurrence of the predicted developments.
By accepting this document, you agree with the foregoing.
Analyst Presentation 9M 20172
Disclaimer
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Fraport AG
- Financial Highlights
- Traffic Performances
- Business Update
- 2017 Outlook
- Detailed Financials
Analyst Presentation 9M 20173
Agenda
-
Fraport AGAnalyst Presentation 9M 20174
Financial Highlights
Strong Growth driven by External Activities
Outlook fulfilled. Underlying EBITDA at ~851 mil. & Group result at ~293 mil.
mil.
1,960
2,229
9M 2016 9M 2017
Revenue
677
808
9M 2016 9M 2017
EBITDA
239
342
9M 2016 9M 2017
Group resultbefore minorities
Strong Group-wide traffic performances support earnings growth
Sharp increase in revenue also due to first-time contribution of Fraport Greece
Key driver for additional EBITDA: External Activities
Strong increase in Group result also driven by Antalya recovery
EPS at EUR 3.35 (2016: EUR 2.35)
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Fraport AG
- Financial Highlights
- Traffic Performances
- Business Update
- 2017 Outlook
- Detailed Financials
Analyst Presentation 9M 20175
Agenda
-
Fraport AGAnalyst Presentation 9M 20176
Traffic Performances
Group-wide Passenger Figures up!
Airport operationsFraport
Share
SEP
2017
Dprevious
year
YTD
2017
Dprevious
year
FY
2016
Frankfurt 100% 6,229 +5.4% 48,866 +4.6% 60,787
Ljubljana 100% 180 +18.9% 1,298 +20.4% 1,405
Greek regionals 73.4% 4,196 +11.4% 23,903 +10.5% 25,289
Lima 70.01% 1,755 +10.9% 15,268 +9.0% 18,845
Twin Star 60% 738 +6.7% 4,680 +6.4% 4,568
Antalya 51% 3,761 +50.4% 21,731 +43.7% 19,028
Hanover 30% 659 +12.5% 4,499 +8.4% 5,409
St. Petersburg 25% 1,669 +20.5% 12,610 +23.8% 13,265
Xian 24.5% 3,634 +10.8% 31,177 +13.1% 36,997
Prelim. FRA Traffic
Oct: +6.3% I YTD: +4.8%
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Fraport AG
- Financial Highlights
- Traffic Performances
- Business Update
- 2017 Outlook
- Detailed Financials
Analyst Presentation 9M 20177
Agenda
-
Fraport AG
Strong first operational season
Passenger figures up by 10.5%
to 23.9 mil.
2017 passenger outlook
lifted to ~10% growth
EUR 400 mil. capex program
approved by Greek State in
September
Initial measures and quick wins
already implemented
Main constructions about to
start
Analyst Presentation 9M 20178
Business Update
Greece
Chania
+5.3%
Skiathos
+4.4%
Mykonos
+19.3%
Santorini
+12.0%
Rhodes
+5.9%
Kos
+18.5%
Samos
+14.7%
Mytilene
+4.9%
Corfu
+5.2%
Aktion
+18.6%
Zakynthos
+16.4%
Kefalonia
+13.7%
Thessaloniki
+13.3%
Kavala +12.2%
0
50
100
150
200
2017 2018 2019 2020
Rough capex phasing mil.
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Fraport AGAnalyst Presentation 9M 20179
Porto Alegre: 7.6 mil. Passengers in 2016
Fortaleza: 5.7 mil. Passengers in 2016
Business Update
Brazil
Current status:
Management team fully staffed
Local offices established
Capex plans finalized
Next steps:
Tendering of construction works
Hiring of operational staff and
implementing IT processes
Operational transfer: Jan. 2018
Concession 25 years
Purchase price 290.5m BRL upfront
91.5m BRL as of year 6*
+5% p.a. revenue component
Investment
obligations
RWY refurbishment & extension
Terminal refurbishment & extension
Apron positions
Retail expansion
Concession 30 years
Purchase price 425.0m BRL upfront
1,080.8m BRL as of year 6*
+5% p.a. revenue component
Investment
obligations
RWY refurbishment & extension
Terminal refurbishment & extension
Apron positions
Retail expansion
*spread over concession term
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Fraport AGAnalyst Presentation 9M 201710
Business Update
2017/18 Frankfurt Winter Flight Season
New Winter Flight Schedule as of October 29, 2017
1Seat capacity growth:
~8%, of which
Europe: ~11% and
Intercont: ~2.5%2 3
Strongest growth from
Lufthansa and Ryanair
with combined 16 new
continental destinations
Movement growth:
~8%, of which
Europe: ~10% and
Intercont: ~1%
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Fraport AGAnalyst Presentation 9M 201711
Strong growth of
LCC &
market consolidation
Integration of
Point-to-Point
traffic / carriers
into hub network
Passengers:
increasingly autonomous and
price sensitive
(self-connector)
New Generation
of short and long haul
aircraft types
Business Update
Changes to Market Environment
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Fraport AGAnalyst Presentation 9M 201712
Business Update
New Infrastructure to enhance Frankfurt Airport
Special excavation works progresses as planned
Building application for Pier G filed
Tendering of people mover currently underway
Tendering of Piers H & J planned for H1 2018
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Fraport AGAnalyst Presentation 9M 201713
Business Update
Existing FRA Terminals also in Focus
2007 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17
94
44
2116 20
15 11 13 13 12 10
Frankfurt Airport Skytrax Ranking
-
Fraport AG
- Financial Highlights
- Traffic Performances
- Business Update
- 2017 Outlook
- Detailed Financials
Analyst Presentation 9M 201714
Agenda
-
Fraport AGAnalyst Presentation 9M 201715
2017 Outlook
Unchanged Outlook
2016 Results 2017 Outlook
Passengers FRA 60.8 mil. Growth of ~5%
Revenue 2.59 bn Up to ~ 2.9 bn
EBITDA 1,054 mil.Between ~980 mil.
and ~1,020 mil.
EBIT 694 mil.Between ~610 mil.
and ~650 mil.
Group result before minorities 400 mil.Between ~310 mil.
and ~350 mil.
Dividend proposal Lifted to 1.50 / share Stable
-
Fraport AG
- Financial Highlights
- Traffic Performances
- Business Update
- 2017 Outlook
- Detailed Financials
Analyst Presentation 9M 201716
Agenda
-
Fraport AGAnalyst Presentation 9M 201717
Detailed Financials
Summary of Group Results
32%
22%18%
28%35%
25%
19%
21%
25%
5%
36%
34%28%
7%42%
23%
Aviation GH Retail & RE External Act.
Aviation GH Retail & RE External Act.
P&L in mil. 9M 17 9M 16 %
Revenue 2,229 1,960 +13.7
-excl. IFRIC 12 2,206 1,945 +13.4
Total revenue 2,281 2,009 +13.5
EBITDA 808 677 +19.4
D&A 268 247 +8.3
EBIT 540 430 +25.7
Interest result -110 -83 -32.2
At equity result 36 2 >100
Other financial result 9 2 >100
Financial result -66 -79 +17.0
EBT 475 351 +35.3
Taxes on income -132 -112 +18.2
Group resultbefore minorities
342 239 +43.3
Minority result 33 22 +52.1
Group resultafter minorities
309 217 +42.5
EPS in , basic 3.35 2.35 +42.6
Segment share in Group revenue
9M 2016 9M 2017
Segment share in Group EBITDA
9M 2016 9M 2017
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Fraport AGAnalyst Presentation 9M 201718
Detailed Financials
Antalya Airport Recovery
Strong Recovery of International / Russian Traffic I German Traffic Down
# of departing international passengers
# of departing Russian passengers # of departing German passengers
0
200,000
400,000
600,000
800,000
Jan Feb Mar Apr May Jun Jul Aug Sep
2015
2016
2017
0
200,000
400,000
600,000
800,000
Jan Feb Mar Apr May Jun Jul Aug Sep
0
200,000
400,000
600,000
Jan Feb Mar Apr May Jun Jul Aug Sep
2015
2016
2017
0
500,000
1,000,000
1,500,000
2,000,000
Jan Feb Mar Apr May Jun Jul Aug Sep
# of departing domestic passengersYTD +65% YTD +3%
YTD >100% YTD -13%
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Fraport AGAnalyst Presentation 9M 201719
Detailed Financials
Cash Flow & Net Debt
1 = Including 53.6 mil. prepayment to EPC company
2 = Capex in airport operating projects, other intangible assets, PPE, investment property, and
at equity investments. No consideration of one-time payments for acquisitions.
3 = Operating cash flow Capex + Dividends from at equity investments
4 = 2016 values as at Dec. 31, 2016
Strong increase in OCF mainly due to Greece
Free cash flow improvement despite lack of
19m AYT DVD
Greece & Brazil upfront payments reflected in higher
indebtedness and Gearing ratio
Group equity above 4.0 bn., +5%
Equity ratio at 35%; FY 2016: 41%
Comments mil. 9M 17 9M 16 %
Operating cash flow 687 501 +37.3
Capex 303 214 +41.4
Free cash flow 388 310 +25.1
Net debt4 3,557 2,356 +51.0
Equity4 4,032 3,841 +5.0
Gearing ratio4 92% 65% +27PP
Net debt
FY 2016
OCF
2,356 -687
+66
+1,234
+42
+1632,113
+242 3,557
Capex
T3
Greece
Capex1Capex
Lima
Other
Capex
Dividends
from
assiciated
companies
9M 2017
Net debt
before
acquisitions
Greece
upfront
payment
Brazil
initial
payments
Dividends
paid
Misc.: F/X,
consolidation,
financing &
other effects
Net debt
9M 2017
+34-6
+145
-32
Free Cash Flow: 388m
in mil.
Effects lowering
net debt
Effects increasing
net debt
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Fraport AGAnalyst Presentation 9M 201720
Detailed Financials
Aviation Segment
EBITDA
9M 2016
Aviation
charges
Other
income
Staff
cost
Other
opex
EBITDA
9M 2017
192
+15
+4
201
+9-10
-11
-87
114
Security
servcies
Other
revenueD&A EBIT
9M 2017
+2
1.9% higher average airport charges as of Jan. 1,
2017
Traffic growth further increased airport charges,
dampened by incentive scheme
Revenue from security services up due to volumes
and new Berlin contract
~8m higher wages & ~3m higher cost for staff
restructuring provision
Comments P&L in mil. 9M 17 9M 16 %
Revenue 721 693 +4.0
- Airport charges 592 578 +2.6
- Security services 95 86 +10.5
- Other revenue 34 30 +12.9
EBITDA 201 192 +4.6
EBIT 114 99 +15.4
Employees 5,854 6,082 -3.7
in mil.
Due to commercial rounding slight discrepancies may occur when summing up, percent changes based on unrounded figures
Increasing
effects
Decreasing
effects
-
Fraport AGAnalyst Presentation 9M 201721
Detailed Financials
Retail & Real Estate Segment
EBITDA
9M 2016
Retail Other
income
Staff
cost
Other
opex
EBITDA
9M 2017
282+4
+4288+1
-2 -11-64
226
Real
Estate
Other
revenueD&A EBIT
9M 2017
-4
Parking
+14
in mil.
Retail revenue up due to higher passenger volumes
Average retail revenue per passenger down due to
F/X and high continental passenger growth
More parking revenue due to volumes & price
Higher other revenue due to land sales mainly in Q2
~3m higher opex from invest. that were not capitalized
Solid EBITDA & EBIT performance
Comments P&L in mil. 9M 17 9M 16 %
Revenue 394 371 +6.3
- Retail 153 149 +2.8
- Real Estate 145 144 +0.9
- Parking 65 61 +6.7
- Other revenue 31 17 +78.7
EBITDA 288 282 +2.2
EBIT 226 219 +3.2
Employees 651 643 +1.2
Due to commercial rounding slight discrepancies may occur when summing up, percent changes based on unrounded figures
Increasing
effects
Decreasing
effects
-
Fraport AGAnalyst Presentation 9M 201722
8 10 711
2
-7
0
-10
2
-10
2 3
-5
2 5
-3
-11-6 -6
13
Top 5 Volumes
Source: sales/revenue data of Gebr. Heinemann by destinations.
Left columns = % change in volumes vs. 9M 2016
Right columns = % change in spending per destination vs. 9M 2016
Top 5 Spenders
China Russia S.Korea Vietnam Japan
US Germany Turkey UAE India
Left columns = % change in volumes vs. 9M 2016
Right columns = % change in spending per destination vs. 9M 2016
Retail revenue per Passenger
Advertising
Q1 Q2 Q3 Q4
27.6 30.8 33.4 31.0
12.7 14.1 15.3 14.2
6.6 8.8 8.6 9.4
Q1 Q2 Q3
28.2 31.6 31.9
13.0 14.6 15.9
8.2 9.0 9.3
1.4 1.6 1.7
Services
Shopping
DTF-JV
3.62 3.423.17
3.87 3.76
3.283.02
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
9M 16: 3.38 9M 17: 3.31
3.86 3.38 3.11
9M 17: 3.41
Retail revenue streams
Detailed Financials
Frankfurt Retail Revenue per Passenger
Including
Heinemann JV
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Fraport AGAnalyst Presentation 9M 201723
Detailed Financials
Ground Handling Segment
Due to commercial rounding slight discrepancies may occur when summing up, percent changes based on unrounded figures
in mil.
Slight increase in revenue due to more passengers
~5m higher wages & ~6m higher cost for staff
restructuring provision & other one-off items
Slight improvement in non-staff costs
EBITDA & EBIT down
Comments P&L in mil. 9M 17 9M 16 %
Revenue 483 478 +0.9
- Ground Handling 243 239 +1.7
- Infrastructure 230 229 +0.4
- Other revenue 10 10 -6.8
EBITDA 38 45 -15.1
EBIT 9 16 -45.2
Employees 8,536 8,654 -1.4
EBITDA
9M 2016
Infrastructure
charges
Other
income
Staff
cost
Other
opex
EBITDA
9M 2017
45+1 -1
38
+4 -13
+2 -29
9
GH
revenue
Other
revenueD&A EBIT
9M 2017
0
Increasing
effects
Decreasing
effects
-
Fraport AGAnalyst Presentation 9M 201724
Detailed Financials
External Activities & Services Segment
Due to commercial rounding slight discrepancies may occur when summing up, percent changes based on unrounded figures
First-time revenue and earnings contribution from
Fraport Greece
Strong Lima performance, despite negative F/X effect
in Q3
~4m higher wages & ~3m higher cost for staff
restructuring provision & other one-off items in FRA
facility and IT management staff
EBITDA & EBIT significantly up
Comments
EBITDA in mil.
EBITDA
9M 2016
+106
158
+9+1
280
+1
+5
192
0
Greece Other EBITDA
9M 2017
Twin Star D&A EBIT
9M 2017
Lima Ljubljana USA
-88
P&L in mil. 9M 17 9M 16 %
Revenue 631 417 +51.2
- excl. IFRIC 12 608 402 +51.2
EBITDA 280 158 +77.8
EBIT 192 97 +97.9
Employees 5,618 5,088 +10.4
Increasing
effects
Decreasing
effects
-
Fraport AG
Thank you for your Attention!
www.meet-ir.com
-
Fraport AGAnalyst Presentation 9M 201726
Appendix
9M 2017 Frankfurt Passenger Split
Western Europe
43%
+5%D
Domestic
11%
+1%D
Eastern Europe
8%
+5%DNorth America13%
+3%DFar East
11%
+4%DMiddle East
6%
+3%DAfrica
4%
+17%DLatin America4%
0%D
Frankfurt Airport
Continental
62%
+5%D
Intercontinental
38%
+5%D
Average seat load factors
65
70
75
80
85
Jan Feb Mar Apr May Jun Jul Aug Sep
2017
2016
79.9%
76.9%
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Fraport AGAnalyst Presentation 9M 201727
Appendix
Performance of External Investments
Figures refer to IFRS accounting, not local GAAP, percent changes based on unrounded figures
Fully consolidated
Group companies Share in % Revenue1 EBITDA EBIT Result
9M 2017 9M 2016 % 9M 2017 9M 2016 % 9M 2017 9M 2016 % 9M 2017 9M 2016 %
Fraport USA 100 48.9 46.6 +4.9 10.2 9.8 +4.1 -2.0 3.7 - 3.2 3.5 -8.6
Fraport Slovenija 100 31.4 27.0 +16.3 12.6 11.2 +12.5 5.3 3.5 +51.4 4.7 3.6 +30.6
Fraport Greece2 73.4 181.4 - - 106.2 - - 84.8 - - 29.0 - -
Lima 70.01 244.2 224.5 +8.8 91.3 82.4 +10.8 78.4 69.0 +13.6 47.8 39.5 +21.0
Twin Star 60 62.5 59.9 +4.3 40.2 39.5 +1.8 31.6 30.8 +2.6 25.0 23.9 +4.6
Group companies
accounted for using
the equity method Share in % Revenue1 EBITDA EBIT Result
9M 2017 9M 2016 % 9M 2017 9M 2016 % 9M 2017 9M 2016 % 9M 2017 9M 2016 %
Antalya3 51/50 215.7 141.9 +52.0 187.8 112.4 +67.1 106.2 30.9 >100 42.4 -17.6 -
Hanover 30 118.6 111.8 +6.1 26.0 22.7 +14.5 11.0 7.7 +42.9 7.0 4.7 +48.9
Pulkovo/Thalita 25 205.7 143.8 +43.0 123.5 81.1 +52.3 95.3 56.0 +70.2 -15.0 2.9 -
Xian4 24.5 173.4 155.6 +11.4 87.4 74.3 +17.6 50.1 36.1 +38.8 41.2 25.2 +63.5
mil.
1 Revenue adjusted by IFRIC 12: Lima 9M 2017: 230.6m (9M 2016: 209.4m), Q3 2017: 79.2m (Q3 2016: 75.6m); Fraport Greece 9M 2017: 172.0m, Q3 2017: 115.2m
2 Take-over of operations as of April 11, 2017
3 Share of voting rights: 51%, Dividend share: 50%.
4 Figures according to the separate financial statement.
-
Fraport AG
Appendix
Maturity Profile & Cash Position as at September 30, 2017
Analyst Presentation 9M 201728
1,141
4,698
211
517
1,146
199439 422
65 99183
1,390
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
5,000
Liquidity Grossdebt
2017 2018 2019 2020 2021 2022 2023 2024 2025 2026++
Fraport debt conditions on average
~ 3.2% interest rate
mil.
Book values
Nominal values
-
Fraport AGAnalyst Presentation 9M 2017
Appendix
IR Contact
29
T: +49 69 690 - 74844
F: +49 69 690 - 74843
M: investor.relations@fraport.de
www.meet-ir.com
Postal
Fraport AG
Frankfurt Airport Services Worldwide
60547 Frankfurt am Main
Germany
mailto:investor.relations@fraport.dehttp://www.meet-ir.com/
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