2013 half year financial results - zurich airport/media/flughafenzh/dokumente/das... · 7 2013 half...

© 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


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


2. Half Year Key Data



Half Year Traffic Figures


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% ██


Financial Key Figures

• Result excluding negative one-off effect of restructuring financial liabilities: CHF 83.4 Mio. (+4.0%)


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% ████████


Financial Key Figures excluding Noise


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


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


3. Aviation



Aviation Segment Revenue Breakdown


• 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


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%


Global Passenger Development (June 2013)


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


from/to ZRH +0.0% +2.0%

Europe Jun 2013 YTD 2013


from/to ZRH +0.6% -0.7%

Africa Jun 2013 YTD 2013


from/to ZRH +1.1% -6.6%

Middle East Jun 2013 YTD 2013


from/to ZRH -2.7% +3.1%

Asia-Pacific Jun 2013 YTD 2013


from/to ZRH +5.5% +1.3%

Worldwide Jun 2013 YTD 2013


from/to ZRH +0.8% +0.1%


4. Non-Aviation



Non-Aviation Segment Revenue Breakdown


• 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


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%


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


8.018.62


5. OPEX & Other Key Figures



Operating Expenses


• 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


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%


Finance Result


-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


Result Breakdown



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.


Financial Liabilities (per 30.06.2013)


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


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)


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


6. Key Topics



Investments


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


Update on «The Circle»


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


Airport Charges: Negotiations failed


• 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


7. Outlook



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


Timetable 2013/2014

27

Emirates: A380-Service Edelweiss Air Eurolot Germanwings Czech Airlines

Reductions / cancellations

Singapore Kiew

Service / frequency additions

Hainan


Bejing Bucharest Cairo

OTHERS


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



8. Your Questions



Customer Segments ZRH HY 2013


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


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


Star Alliance Hubs HY 2013


-10%

-5%

0%

5%

10%

15%

20%BRUCPHFRAMUCVIE

VIEZRHFRA

MU

BRUCPH

2012 2013

2013 half year financial results - zurich airport/media/flughafenzh/dokumente/das... · 7 2013 half...

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