Florian Fuchs Maximilian Schultheis IR - Fraport · Maximilian Schultheis IR. ... Frankfurt Airport...

UBS Transport, Travel & Leisure Conference

September 2016

Florian Fuchs

IR

Maximilian Schultheis

IR

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 – 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.

UBS Transport, Travel & Leisure Conference 20162


Agenda

- Traffic Insight

- Business Update

- 6M 2016 Financials

- FY 2016 Outlook

Traffic Insight

Group Passenger Results (stakes above 10%, Figures in ‘000)


IATA

CodeAirport Share

AUG

2016

Dprevious

year

YTD

2016

Dprevious

year

FY

2015

CAGR

2010-

2015

FRA Frankfurt, Germany 100% 5,993 -5.0% 40,785 -1.7% 61,032 +2.9%

LJU Ljubljana, Slovenia 100% 165 -8.1% 927 -5.3% 1,438 +0.7%

LIM Lima, Peru 70% 1,754 +9.6% 12,415 +11.2% 17,113 +10.7%

BOJ Burgas, Bulgaria 60% 849 +17.2% 2,401 +22.3% 2,360 +4.7%

VAR Varna, Bulgaria 60% 404 +17.3% 1,306 +20.7% 1,399 +3.1%

AYT Antalya, Turkey 51% 2,753 -38.8% 12,624 -34.7% 27,523 +4.4%

LED St. Petersburg, Russia 35.5% 1,552 -8.0% 8,799 -6.9% 13,500 +9.8%

HAJ Hanover, Germany 30% 549 -6.9% 3,565 -1.3% 5,453 +1.5%

XIY Xi‘an, China 24.5% 3,468 +10.9% 24,295 +11.1% 32,970 +12.9%

Traffic Insight

Focus Frankfurt Airport


Passengers

Movements

MTOW

Cargo

AUG 2016 YTD 2016

40,785

311,476

19,967

1,372

5,993

41,803

2,674

169

-5.0

-2.3

-1.8

0.0

-1.7

-1.5

+0.5

+0.5

D %D %

in `000

in `000 tons

65%

70%

75%

80%

85%

90%

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Seat load factor

2016 2015

FY 2015

in `000 tons

Passenger per movement

134 136 138 140 142

Passenger guidance FY2016:

Slightly negative

-0.3

Pass.

YTD 2016

YTD 2015

61,032

468,153

29,543

2,077

Passenger figures according to ACI, commercial traffic only; cargo includes air freight and air mail

Traffic Insight

Frankfurt Airport Passenger Flows 8M 2016


Western Europe

42%

-2%D

D

Traffic Share YTD

vs. previous year

Domestic

11%

-1%D

Eastern Europe

9%

-3%DNorth America

13%

-1%DFar East

11%

-4%DMiddle East

6%

+3%DAfrica

4%

-8%DLatin America

4%

+3%D

Continental

62%

-2%D

Intercontinental

38%

-2%D

Frankfurt Airport

Traffic Insight

Focus Antalya Airport


0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5

January February March April May June July August September October November December

Domestic 2016 Domestic 2015 International 2016 International 2015

• Strong seasonality in passenger traffic: 6M 2015 = less than 40 % of total traffic

• High seasonality especially in international traffic, where c.50 % is carried out in

q3 more insight on next slide

• Low seasonality in domestic traffic, however, domestic only accounts for 20 to

25 % of total traffic on FY basis

• 8M positively impacted by domestic traffic: +9 % and negatively by international

traffic -47 %

Passengers in million

Traffic Insight

Focus Antalya Airport


0

500

1,000

1,500

2,000

2,500

3,000

3,500

Q1 Q2 Q3 Q4

2015 2016

c.70% of 5.6m Russians

traveled in 2nd half of 2015

-80% -98%

0

500

1,000

1,500

2,000

2,500

3,000

Q1 Q2 Q3 Q4

2015 2016

c.64% of 6.7m Germans

traveled in 2nd half of 2015

-17% -33%

Germans in ‘000

Russians in ‘000


Agenda

- Traffic Insight

- Business Update


- FY 2016 Outlook

10

Business Update

2016 so far…


• Geopolitics weighing on intercont inbound and leisure outbound

• Frankfurt summer schedule with flat seat capacity

• No adjustment of 2016 aeronautical charges as the application was retracted

• Retail spending per passenger below previous year

• Good Real Estate performance due to non-recurring income

• Extra cost items in Aviation and Retail

• Unsolved labor debates for pilots at Frankfurt main customer

• Geopolitics also with strong negative impacts on Antalya and St. Petersburg

• Lima, Varna, and Burgas with continuing growth

As a result:

• 8M Frankfurt traffic negative despite leap day and strikes in previous year

• Negative 6M FRA EBITDA despite cost management and non-recurring income

• International portfolio with mixed picture

11

Business Update

…and going forward


• Tensions between Turkey and Russia easing -> resumption of charter traffic

• Focus on LCC to promote growth in Frankfurt

• Decision on 2017 aeronautical charges due end of October 2016

• Q2 Retail with signs of recovery, easier comps as of Q4

• Ongoing development of Frankfurt Airport and Cargo City

• No extrapolation of extra cost items in Aviation and Retail

• Main customer shows confidence to solve labor issues

• Disposal of shares in St. Petersburg to create book gain

• Closing and takeover of Greek regional airports in sight

As a result:

• Easier comps will be positive for FRA passenger development in rest of 2016

• Despite negative FRA FY traffic, financial guidance confirmed

• 2017 guidance to include Greek regional airports

12

Business Update

Thalita Insight


• Contracts to sell shares in Thalita, the operating company of Pulkovo Airport in

St. Petersburg, to QIA signed on July 31, 2016

• Upon closing Fraport will decrease its share in Thalita from 35.5% to 25%

• QIA in total will acquire a share of 24.99%

• Fraport will remain lead operator

• Closing is subject to approval of Russian government and senior project

finance lenders

• EBITDA/ EBIT/ EBT impact of

30 to 40 million EUR expected

• Substantial impact also on Group

result expected

• Closing currently expected within

remaining course of 2016


Agenda

- Traffic Insight

- Business Update


- FY 2016 Outlook

Group P&L 6M 2016

Decline in FRA and AYT & Increase in Lima & Twin Star


P&L in € mil. 6M 16 6M 15 %

Revenue 1,225 1,242 -1.4

- excl. IFRIC 12 1,216 1,235 -1.5

EBITDA 378 385 -1.7

EBIT 215 222 -3.3

EBT 146 152 -4.2

Group result 100 103 -3.2

EPS in € 1.00 1.06 -5.7

› Adjusted for consolidation effects:

c.19m revenue growth, due to FRA

property sales and good performance

in Lima and Varna/Burgas

› Headwind from FRA traffic, retail, non-

capitalizbl. capex & multi channel cost

› Despite significant lower income from

AYT flat financial result

Comments

Revenue by segment in € mil.

Revenue

6M 2015

Aviation Retail &

Real Estate

Ground

Handling

External

Activities &

Services

Revenue

6M 2016

-12-24

+13 1,225

External

Activities

Services

EBITDA by segment in € mil.

EBITDA

6M 2015

Aviation Retail &

Real Estate

Ground

Handling

EBITDA

6M 2016

385+5

378

-2-7

External

Activities &

Services

Due to commercial rounding slight discrepancies may occur when summing up, percent changes based on unrounded figures

1,242

14

+7

-3

Group P&L 6M 2016

Growth in GH, Lack of External Activities One-Off


EBITDA

6M 2015

Other

income

Cost of

materials ex.

IFRIC 12

Staff

cost

EBITDA

6M 2016

Revenue

ex. IFRIC 12

Other

opex

385

-4

378

€ -7 mil.

-2

IFRIC 12

revenue

IFRIC 12

cost of

materials

-19

+7

26.6%

47.8%

3.3%

22.3%

Segment share in Group EBITDA 6M 2015 Segment share in Group EBITDA 6M 2016

25.3%

48.2%

4.7%

21.8%Aviation

Retail &

Real Estate

External

Activities &

Services Aviation

Retail &

Real Estate

External

Activities &

Services

Ground

HandlingGround

Handling

Due to commercial rounding slight discrepancies may occur when summing up

+2

15

+1 +8

€ mil.

Group P&L 6M 2016

Group Result marginally below Previous Year’s Level


Split of financial result Comments

Group result

6M 2015

EBITDA D&A Financial

result

Taxes Group result

6M 2016

EPS

6M 2015

EPS

6M 2016

€ mil 6M 16 6M 15 %

Interest income 16 14 +14.7

Interest

expenses-74 -83 -

At equity result -11 2 -

Other result 0 -3 -

Financial result -69 -70 -

› Improved interest result from lower interest

rates and lower indebtedness

› Antalya still negative at -15m EUR , H1 2015

was break even

› Positive results in Hanover and Xi’an with

minor compensating effects

› Other financial result up, due to lack of strong

negative CHF loan revaluation effect in

previous year

103

-7

100

-1

+3

-€3 mil.

€1.00€1.06

-€0.06

+1

Due to commercial rounding slight discrepancies may occur when summing up, percent changes based on unrounded figures

16

€ mil.

Group Asset & Financial Situation 6M 2016

Lower OCF & higher Capex led to decline in FCF


FY 2016 Outlook6M 2016 development

PPEInvestment

property

Operating

cash flow

Intangible

assets

Airport

operating

projects

258

149

277

-3

-93 -8-6

-3

-120 -9-1

+24

DVDs from

investments

Free cash

flow

+23 190

› 2016 capex on 2015 level or slightly above

› 2016 FCF expected to be on 2015 level or

below

› 2016 FCF with potential to de-lever Group by

up to c.10 % to net debt/EBITDA < 3x

w/o Greek deal

› Lower OCF due to €42 mil. higher tax

payments, a.o. for one-off tax repayments for

previous years

› Spending on PPE ahead of H1 2015 due to

mild winter and cash out for certain finalized

projects , a.o., T1 arrival lane

› Stable DVDs from investments


6M 2016 6M 2015

17

Group Asset & Financial Situation 6M 2016

Stable Net Debt despite DVD Cash out, Gearing down


Balance sheet

› Equity unchanged at €3.5 bn.

› After deducting DVD payout; Gearing ratio

slightly down on Dec. 31, 2015 at 81%

› Equity ratio at 39% (Dec. 31, 2015: 37%)

Cash development

› FCF less DVD payout led to stable Group

liquidity

› Unchanged net debt of €2.78 bn.

› Despite positive FCF forecast: FY 2016

liquidity to go down due to debt repayments +

expected Greek upfront payment

149190

1,043 1,043

3,821 3,817

2,779 2,774

3,494 3,512

81% 84%

June 30, 2016

Liquidity Gross debt Net debt Equity Gearing2FCF1

Dec. 31, 2015

€ mil.


1) FCF pre-dividend payout; figures correspond to 6M figures 2) Net debt divided by equity less non-controlling interests and profit earmarked for distribution

18

Segment Retail & Real Estate 6M 2016

High Level of Q2 Retail per Passenger, YTD Figure: -3%


Retail revenue per Passenger

3.743.42 3.24

4.113.69

3.22 3.04

3.95 3.93

3.41 3.26

4.053.62

3.42

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2

€ mil.

Shopping

Services

Advertis.

6M 13: €3.56 6M 14: €3.42 6M 15: €3.63 6M 16: €3.51

FY 13: €3.60 FY 14: €3.43 FY 15: €3.62

27 31 33 33

11 13 14 13

6 8 9 11

26 29 32 32

12 14 14 13

7 7 8 10

30 34 35 32

13 14 16 14

7 9 10 10

28 31

13 14

7 8

Segment Retail & Real Estate 6M 2016

Negative Development of Core Spending Destinations


Source: sales/revenue data of Gebr. Heinemann by destinations

Volume

Development

Change vs. 6M 2015

in %

Retail Revenue

per Passenger

in EUR

Change vs. 6M 2015

in %

China Russia South

Korea

Japan Vietnam USA Turkey Germany India

Top 5 by Retail Value Top 5 by Volume

UAE

-7-6

6

-13

-2

5

-2

1

-16

1

25

-4-7

-13-14

-4

3

-4

82


Agenda

- Traffic Insight

- Business Update


- FY 2016 Outlook


FY 2016 Outlook*

New FRA Traffic, Pulkovo enables to keep Guidance Ranges

*Without taking account of potential closing of Greek deal

** Group result before minorities

2015 Results 2016 Outlook

Passengers FRA 61 mil. Slightly negative

Revenue € 2.6 bn up to € 2.65 bn

EBITDA € 849 mil. between ~€ 850 and ~ 880 mil.

EBIT € 521 mil. between ~€ 520 and ~ 550 mil.

Group result** € 297 mil. on PY level or slightly above

Dividend proposal stable at € 1.35 / share at least stable

Thank you for your Attention!

www.meet-ir.com


Appendix

– Subsequent financial information –

Appendix

Special Effects 6M 2016


€ mil. 6M 2016 6M 2015

Group financial result

Market valuation of derivatives & F/X fluctuations 0.3 -3.1

Segment Ground Handling

FCS – disposed Nov. 2015

Revenue - 31.4

EBITDA - -2.0

EBIT - -2.8

Write-down of book value - -2.1

Segment External Activities

IFRIC 12 revenue 4.9 3.6

Air Transport IT – disposed April 2015

Revenue - 4.9

EBITDA - 0.3

EBIT - 0.1

Book gain on disposal - 8.0

€ mil.

Appendix

Maturity Profile & Cash Position as at June 30, 2016


1,042.6

3,821.2

229.7 295.3

517.4

1,132.9

186.1422.9 400.9

32.6 2.6

548.6

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

Liquidity asof June 30,

2016

FinancialLiabilities

2016 2017 2018 2019 2020 2021 2022 2023 2024 2025++

Fraport debt conditions on average

~ 3.2% interest rate

~ 4.7 years maturity

Appendix

IR Contact


Fraport AG

Frankfurt Airport Services Worldwide

60547 Frankfurt am Main

www.meet-ir.com

+49 69 690 – [email protected]

Stefan J. Rüter

Head of Finance

& Investor Relations

+49 69 690-74840

[email protected]

Svenja Ebeling

Investor Relations Assistant

+49 69 690-74842

[email protected]

Florian Fuchs

Investor Relations Manager

+49 69 690-74844

[email protected]

Maximilian Schultheis

Financial Reporting Manager

+49 69 690-29996

[email protected]

Tanja Nagel

Financial Reporting Manager

+49 69 690-74846

[email protected]

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