© Flughafen Zürich AG| |Zurich Airport |
2013 Half Year Financial Results
Thomas E. KernChief Executive Officer
Daniel SchmuckiChief Financial Officer
26.08.2013
© Flughafen Zürich AG| |
Schedule
1. Half Year Highlights 32. Half Year Key Data 43. Aviation 84. Non-Aviation 115. OPEX & Other Key Figures 146. Key Topics 207. Outlook 25
26.08.20132 2013 Half Year Financial Results
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1. Highlights
• Restructuring of financial liabilities will lead to sustainable lower interest rates
• Swiss National Council & Council of States approve ratification of State Treaty CH/D
• Partial Implementation of Sectoral Aviation Infrastructure Plan (SAIP)
• Commercial Openings prove themselves• Opening Expansion Car Park P6• “The Circle”: Commencement of Planning Stage• Airport Charges: Negotiations failed• Solid Operating Performance adversely affected by one-
off costs for restructuring of financial liabilities
26.08.2013 2013 Half Year Financial Results3
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2. Half Year Key Data
26.08.2013 2013 Half Year Financial Results4
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Half Year Traffic Figures
26.08.2013 2013 Half Year Financial Results5
in millions Jan-Jun 2013 Jan-Jun 2012 ∆ (in %)
Local passengers 7.8 7.7 █ + 1.6%
Transfer passengers 4.0 4.1 -2.5% ██
Transfer share (in %) 33.8 34.8 -2.9% ██
Total passengers 11.8 11.8 + 0.1%
Movements (in 1'000) 128.5 133.9 -4.0% ████
whereof Line & Charter movements 111.5 114.4 -2.5% ██
Cargo (in 1'000 tons) 204.6 210.2 -2.7% ██
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Financial Key Figures
• Result excluding negative one-off effect of restructuring financial liabilities: CHF 83.4 Mio. (+4.0%)
26.08.2013 2013 Half Year Financial Results6
in million CHF Jan-Jun 2013 Jan-Jun 2012 ∆ (in %)
Aviation revenue 287.9 283.7 █ + 1.5%Non-Aviation revenue 181.5 173.3 ███ + 4.7%Revenue 469.4 457.0 ██ + 2.7%EBITDA 245.3 242.2 █ + 1.3%EBITDA margin (in %) 52.3 53.0EBIT 134.3 134.2 + 0.1%EBIT margin (in %) 28.6 29.4Finance result (net) -123.3 -34.9 n/aResult 10.1 80.2 -87.4% ████████Interest-bearing liabilities (net) 819.8 1'006.0 -18.5% ███Cash flow from operating activities 201.5 167.4 ████ + 20.4%CAPEX -100.9 -53.5 ███████ + 88.4%EpS (in CHF) 1.6 13.2 -87.6% ████████
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Financial Key Figures excluding Noise
26.08.20137 2013 Half Year Financial Results
• Result excluding negative one-off effect of restructuring financial liabilities : CHF 67.8 Mio.
in million CHF Jan-Jun 2013 Jan-Jun 2012 ∆ (in %)
Aviation revenue 262.3 258.7 + 1.4%Non-Aviation revenue 181.5 173.3 ██ + 4.7%Revenue 443.8 432.1 █ + 2.7%EBITDA 221.6 219.2 + 1.1%EBITDA margin (in %) 49.9 50.7EBIT 114.4 115.1 -0.6% EBIT margin (in %) 25.8 26.6Finance result (net) -121.8 -31.3 n/aResult -5.4 67.5 n/aInterest-bearing liabilities (net) 1'100.8 1'270.0 -13.3% █Cash flow from operating activities 188.6 149.9 ███ + 25.8%CAPEX -100.9 -53.5 ██████ + 88.4%EpS (in CHF) -0.9 11.1 n/a
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3. Aviation
26.08.20138 2013 Half Year Financial Results
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Aviation Segment Revenue Breakdown
26.08.20139 2013 Half Year Financial Results
• Passenger & Security fees saw an over-proportionate increase due to local PAX development• New noise charge framework as of May led to higher passenger-related noise charges• Parking fees: Increase as a result of higher average maximum take-off weight (MTOW) and
longer downtime of long-haul aircraft• Other revenue: Harsh winter led to higher revenues of de-icing services
in million CHF Jan-Jun 2013 Jan-Jun 2012 ∆ (in %)
Passenger & Security fees 171.7 169.3 █ + 1.4%PRM fees 5.3 5.3 + 0.1%Landing fees 41.5 42.0 -1.0% █Noise Charges 25.6 25.0 ██ + 2.6%Emission fees 1.6 1.6 -1.5% █Parking fees 3.6 3.2 █████ + 10.5%Fuel charges 3.5 3.5 -0.3% Freight revenue 3.8 3.9 -0.6% Baggage sorting and handling system 14.0 14.0 + 0.1%Aircraft energy supply system 6.2 6.3 -0.4% Other revenue 11.1 9.7 ███████ + 13.9%Total revenue aviation 287.9 283.7 █ + 1.5%Ø Landing charge per movement 646.1 626.7 ███ + 3.1%
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Global Passenger Development (June 2013)
26.08.2013 2013 Half Year Financial Results10
North America Jun 2013 YTD 2013
Global Market +1.4% +1.0%
from/to ZRH +0.9% +8.5%
Quellen: ACI & ZRH data warehouse
Latin America Jun 2013 YTD 2013
Global Market +5.4% +4.5%
from/to ZRH +0.0% +2.0%
Europe Jun 2013 YTD 2013
Global Market +3.3% +1.7%
from/to ZRH +0.6% -0.7%
Africa Jun 2013 YTD 2013
Global Market +6.3% +4.4%
from/to ZRH +1.1% -6.6%
Middle East Jun 2013 YTD 2013
Global Market +10.6% +11.6%
from/to ZRH -2.7% +3.1%
Asia-Pacific Jun 2013 YTD 2013
Global Market +6.6% +5.9%
from/to ZRH +5.5% +1.3%
Worldwide Jun 2013 YTD 2013
Global Market +4.0% +3.2%
from/to ZRH +0.8% +0.1%
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4. Non-Aviation
26.08.201311 2013 Half Year Financial Results
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Non-Aviation Segment Revenue Breakdown
26.08.201312 2013 Half Year Financial Results
• Significantly higher average commercial revenue per passenger (+5.5%) • Slight increase of rents & leases with unchanged low vacancy rate• Other Services increased mainly due to first-time consolidation of A-Port Operaçiones
in million CHF Jan-Jun 2013 Jan-Jun 2012 ∆ (in %)
Retail, Tax & Duty free 44.6 42.3 ████ + 5.4%Food & Beverage 7.3 6.8 █████ + 7.1%Other commercial revenue 14.8 14.4 ██ + 3.2%Commercial revenue 66.7 63.5 ████ + 5.1%Rents & Leases 47.7 47.2 + 1.0%Utilities 14.2 14.0 █ + 1.8%Other real estate revenue 3.0 3.2 -7.0% █████Real estate 64.9 64.4 + 0.8%Parking 32.5 32.2 + 0.9%Other services 17.4 13.3 ███████ + 31.2%Total revenue from non-aviation 181.5 173.3 ██ + 4.7%Ø Revenue Retail, Tax & Duty Free,F&B per departing pax 8.8 8.3 ████ + 5.5%
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435481
459482 479
517
231 246 259
20.7 22.1 21.9 22.9 24.3 24.8
11.5 11.8 11.8
42.0
43.5
41.8 42.1
39.4
41.7
40.3
41.7
43.7
32
34
36
38
40
42
44
46
48
50
52
0
100
200
300
400
500
600
700
2007 2008 2009 2010 2011 2012 2011 HY 2012 HY 2013 HY
Commercial Turnover (in Mio.) Total PAX (in Mio.) Spend per dep. PAX Revenue per dep. PAX
Mio CHF CHF
Development in m2
Landside total:~ 18‘000 m2
Airside total:~ 14‘200 m2
7.867.327.277.597.55
8.15 8.10
Key Figures Commercial Business
26.08.2013 2013 Half Year Financial Results13
8.018.62
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5. OPEX & Other Key Figures
26.08.2013 2013 Half Year Financial Results14
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Operating Expenses
26.08.2013 2013 Half Year Financial Results15
• Excluding the first-time consolidation of A-Port Operaçiones (CHF 3.4 Mio.): Opex grew by 2.8%• Higher employer restructuring contributions to the BVK Pension Fund triggered over-proportionate
increase of personell expenses• Increase of security costs because of higher hourly rates paid to the Airport Police as a result of their
costs having increased because of their contributions to the BVK Pension Fund• Harsh winter period resulted in a rise in energy and waste as well as maintenance and material costs• Lower sales, marketing and administration expenses due to strict cost management
in million CHF Jan-Jun 2013 Jan-Jun 2012 ∆ (in %)
Personnel expenses 88.9 83.1 ██████ + 7.0%Police and security 58.4 57.6 █ + 1.5%Energy and waste 13.8 13.1 █████ + 5.7%Maintenance and material 20.1 19.1 █████ + 5.6%Other operationg expenses 27.7 25.1 ███████ + 10.3%Sales, marketing, administration 17.3 20.4 -15.2% ██████Capitalised expenditure & other income -2.2 -3.5 -36.9% ███████Total operating expenses 224.1 214.8 ███ + 4.3%
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Finance Result
26.08.2013 2013 Half Year Financial Results16
-34.9
-123.3
7.4 -111.9
-4.8
17.4 3.5
30.06.2012Reduction
interst expense
Termination costshedging
instrumentTransaction costs
JPPForeign currency
gain JPP Others 30.06.2013
-88.4 million CHF
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Result Breakdown
26.08.201317 2013 Half Year Financial Results
in million CHF Jan-Jun 2013 Jan-Jun 2012 ∆ (in %)
EBITDA 245.3 242.2 █ + 1.3%EBITDA margin (in %) 52.3 53.0Depreciation and amortisation -111.0 -108.0 ██ + 2.8%EBIT 134.3 134.2 + 0.1%EBIT margin (in %) 28.6 29.4Finance result (net) -123.3 -34.9 n/aAssociated companies 1.4 1.2 ███ + 10.2%
Income tax expense -2.3 -20.3 -88.8% ████████Result 10.1 80.2 -87.4% ███████
• Excluding first-time consolidation of A-Port Operaçiones: EBITDA margin 52.6%• Commissioning of new airport infrastructure during the last two years resulted in higher
depreciation and amortisation• Reduced income tax expenses as a result of tax deductible costs for restructuring JPP• Result without one-off effect of restructuring financial liabilities: CHF 83.4 Mio.
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Financial Liabilities (per 30.06.2013)
26.08.2013 2013 Half Year Financial Results18
Financial liabilities
Nominal value
Carrying amount30.06.2013
Maturity Interest rate
USPP USD 110’000 CHF 102’755 11.04.2014 &
13.04.2015
4.753%
Bond CHF 225’000 CHF 224’664 18.02.2014 4.500%
Bond CHF 250’000 CHF 247’862 05.05.2017 2.250%
Bond CHF 300’000 CHF 299’170 03.07.2020 1.250%
Bond CHF 400’000 CHF 399’543 17.04.2023 1.500%
Lease liabilities
CHF 49’354 CHF 49’354 Annuityuntil 2020
n/a
Total CHF 1’323’348
Debt Portfolio (in 1’000) Maturity Structure
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Other Key Figures
• Unchanged solid financial key figures• Decrease of financial debts as a result of stable cashflows• Cashflow from operating activities not adversely affected by increasing net working capital such as in
prior year period • Excluding one-off effects: ROIC stable with 6.7% (excluding noise, 12 months rolling)
26.08.2013 2013 Half Year Financial Results19
in million CHF Jan-Jun 2013 Jan-Jun 2012 Jan-Jun 2013 Jan-Jun 2012
Net financial debt / EBITDA
incl
. noi
se
2.08x 2.01x
excl
. noi
se
3.19x 2.80xNet financial debt (in %) 819.8 1'006.0 1'100.8 1'270.0 ROIC (in %) 4.3 7.3 3.5 6.7 Return on Equity (in %) 1.3 9.9 0.5 9.6 Equity Ratio (in %) 48.7 49.0 51.1 51.9 Cashflow from operating activites 201.5 167.4 188.6 149.9 whereof CAPEX (CF statement) -100.9 -53.5 -100.9 -53.5 Free Cashflow 100.7 113.9 87.7 96.4 EpS (in CHF) 1.6 13.2 -0.9 11.1
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6. Key Topics
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Investments
26.08.2013 2013 Half Year Financial Results21
Investments per 30.06.2013(in million CHF)
1 Upgrade Terminal 2 21.9
2 Various Civil Engineering maintenance projects 13.8
3 The Circle 9.2
4 Expansion Parking 6.9
5 Noise Protection Hangar 6.6
6 General Wastewater Plan-Renewal (GEP) 3.8
7 Renovation Runway 14/32 3.2
8Construction LogisticsAirside Center Retail(Chalet Suisse, BA Lounge)
3.2
9 Stands Echo Nord 2.6
10 Renovation Car Park 6 1.3
Other Investments 28.4
Total Investments(Cash out) 100.9
Upgrade T2~ CHF 40 Mio.
Parking Expansion ~ CHF 26 Mio.
Noise Protection Hangar~ CHF 15 Mio.
Echo Nord Aircraft Stands~ CHF 10 Mio.
2013 planned investment costs for largest projects
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Update on «The Circle»
26.08.2013 2013 Half Year Financial Results22
Current Developments
• Jun 2013: Preliminary project completed• Jun 2013: First approach of equity investors
and debt providers• Aug 2013: Board decided to start construction
planning as next project phase
Next steps according to current project timeline
• Sep 2013: Start due diligence with potential financing partners
• Oct 2013: Start construction planning • End of 2013: Financing contracts to be signed• End of 2014: Start of construction if conditions
are met
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Airport Charges: Negotiations failed
26.08.2013 2013 Half Year Financial Results23
• Flughafen Zürich AG sincerely regrets that no agreement was reached
• The final proposal of Flughafen Zürich AG provided:• Keep high quality standards for both passenger and airlines
• Remaining high investments into aviation infrastructure over the next 4 years in order to deal with expected growth, especially during hub peak times
• Temporary suspension of the passenger noise charge in accordance with a directive of the Federal Office of Civil Aviation
• Moderate tariff adjustments within a low single-digit percentage
© Flughafen Zürich AG| |26.08.2013 2013 Half Year Financial Results24
25.02.• Start of negotiations
24.06.• Negotiations extended with for 2 months
22.08.• Negotiation result: No agreement
Sep.• Submission of Airport Charges proposal to the Federal Office of Civil Aviation
(FOCA)
Oct.• BAZL decision of approval: Not before October
2014• Planned implementation per 1.1.2014 (possible appeals could delay implementation)
2013
Airport Charges:Time schedule after negotiations failed
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7. Outlook
26.08.201325 2013 Half Year Financial Results
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Outlook 2013: Traffic & Commercial Figures
26.08.201326
in millions Jan-Jul 2013 Jan-Jul 2012 ∆ (in %)
Local passengers 9.5 9.3 █ + 1.8%
Transfer passengers 4.7 4.9 -3.0% ███
Transfer share (in %) 33.2 34.3 -3.2% ███
Total passengers 14.3 14.3 + 0.2%
Movements (in 1'000) 153.2 158.3 -3.3% ███
whereof Line & Charter movements 132.7 135.6 -2.2% ██
Cargo (in 1'000 tons) 240.3 245.0 -1.9% █
Jan-Jul 2013 Jan-Jul 2012 ∆ (in %)
Total Turnover, m CHF 308.3 295.0 ████ + 4.5%
Airside (Change vs. previous year period in %) 7.6 13.5
Landside (Change vs. previous year period in %) 0.6 -0.7
Commercial Turnover/ dep. pax, CHF 43.1 41.3 ████ + 4.3%
Airside (Change vs. previous year period in %) 7.5 10.5
Landseite (Veränderungen ggü. Vorjahr in %) 0.4 -3.3
Traffic Figures
Commercial Figures
2013 Half Year Financial Results
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Timetable 2013/2014
27
Emirates: A380-Service Edelweiss Air Eurolot Germanwings Czech Airlines
Reductions / cancellations
Singapore Kiew
Service / frequency additions
Hainan
26.08.2013 2013 Half Year Financial Results
Bejing Bucharest Cairo
OTHERS
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Guidance 2013 - unchanged
The Guidance 2013 is based on the full year results 2012 (excl. the effects from IAS 19 / finance result) vs. expected full year result 2013 (excl. the effects from finance result):
Passenger moderate growth (0-1%) Revenue: + 2-3%
• whereof Aviation: proportionate to traffic volume• whereof Non-aviation: over-proportionate growth
EBITDA margin: stable Depreciation & amortisation: slightly higher Profit including noise: slightly higher Profit excluding noise: slightly higher Investments: 200-250 million CHF
26.08.2013 2013 Half Year Financial Results28
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8. Your Questions
26.08.201329 2013 Half Year Financial Results
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Customer Segments ZRH HY 2013
26.08.2013 2013 Half Year Financial Results30
Charter0.8%
Sky Team4.1%
One World9.4%
Star Alliance70.7%
0% 20% 40% 60% 80% 100%
2012 YTD
2013 YTD
Passagierwachstum zum Vorjahr
Charter
Sky Team
One World
Star Alliance
-60% -50% -40% -30% -20% -10% 0% 10% 20% 30% 40%
seitJahresanfang
Grounding von Hello
Positive Entwicklungen (u.a. LX, TK, UA, LH) kompensieren negative Entwicklungen (z.B.
KF, SK, TG).
Sparprogramm der airberlin Group (AB, 4T, HG), BA im Plus
Alitalia neu nach Rom, CSA wieder nach Prag, KLM mit mehr Passagieren
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ZRH Traffic Efficiency Development
2013 Half Year Financial Results31 26.08.2013
-
10
20
30
40
50
60
70
80
90
100
110
120
130
60%
61%
62%
63%
64%
65%
66%
67%
68%
69%
70%
71%
72%
73%
HY1/2003 HY1/2004 HY1/2005 HY1/2006 HY1/2007 HY1/2008 HY1/2009 HY1/2010 HY1/2011 HY1/2012 HY1/2013
Passengers per MovementAverage Take-Off Weight
Seat Load Factor
Seat Load Factor Passengers per Movement Average Take-Off Weight
Source: Zurich Airport, data warehouse, 2013
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Star Alliance Hubs HY 2013
26.08.2013 2013 Half Year Financial Results32
-10%
-5%
0%
5%
10%
15%
20%BRUCPHFRAMUCVIE
VIEZRHFRA
MU
BRUCPH
2012 2013