Analyst Presentation 2011 Half Year Results PRINT VERSION/media/flughafenzh/dokumente/das... · Half Year Financial Results in million CHF 2011 Jan - Jun 2010 Jan- Jun Delta Revenue

Analysts‘ Presentation – 2011 Half Year Financial Results

© Flughafen Zürich AG| |Zurich Airport |

Thomas E. KernChief Executive Officer

Daniel SchmuckiChief Financial Officer

23.08.2011

Schedule

1. Half Year Highlights 3

2. Half Year Key Data 4

3. Aviation 8

4. Non-Aviation 11

5. Financial Key Figures 14

© Flughafen Zürich AG| |

5. Financial Key Figures 14

6. Other Key Topics 18

7. Outlook 22

23.08.20112 2011 Half Year Financial Results

1. Half Year Highlights

• Standard and Poor’s revises rating: BBB+ to A-

• Issuing of CHF 250 million bond

• Opening of first Arrival Duty Free shops in Switzerland

• Opening Freight Dispatch Hall

• Groundbreaking for extension of Parking P6

© Flughafen Zürich AG| |

• Groundbreaking for extension of Parking P6

• Automated passenger processes: Seamless Travel

• Strong Half Year Result 2011

• Increased Outlook for Full Year 2011


2. Half Year Key Data

© Flughafen Zürich AG| |23.08.20114 2011 Half Year Financial Results

Half Year Traffic

in millions2011

Jan-Jun2010

Jan-JunDelta

Local passengers 7.5 6.8 10.1%

Transfer passengers 3.9 3.7 7.0%

Transfer share 34.4% 35.0%

Total passengers 11.5 10.5 9.0%


Movements (in thousand) 138.1 128.9 7.1%

whereof Line & Charter movements 116.5 108.9 6.9%

Cargo (in thousand tons) 210.8 200.6 5.1%

Half Year Financial Results

in million CHF2011

Jan - Jun2010

Jan- JunDelta

Revenue 438.3 408.1 7.4%

Aviation revenue 274.7 247.8 10.9%

Non-Aviation revenue 163.6 160.3 2.0%

EBITDA 225.6 195.0 15.7%

EBITDA margin 51.5% 47.8%


EBIT 126.5 100.4 25.9%

EBIT margin 28.9% 24.6%

Net profit 73.5 49.7 47.9%

Net financial debt (IFRS) 724.1 861.4 -15.9%

Cash flow from operating activities 211.5 206.9 2.2%

CAPEX 156.3 89.8 74.1%

EpS (in CHF) 12.0 8.1 47.8%

Half Year Financial Results (without noise impact)

in million CHF2011 Jan-Jun

w/o noise2010 Jan-Jun

w/o noiseDelta

Revenues 415.2 394.1 5.4%

Aviation revenue 251.7 233.8 7.7%

Non-Aviation revenue 163.6 160.3 2.0%

EBITDA 204.7 183.2 11.7%




EBIT 109.1 91.4 19.3%

EBIT margin 26.3% 23.2%

Net profit 63.3 44.9 40.9%

Net financial debt (IFRS) 948.2 1‘059.7 -10.5%

Cash flow from operating activities 191.8 190.8 0.5%

EpS (in CHF) 10.3 7.3 40.7%

3. Aviation


Aviation Segment Revenue Breakdown

in million CHF2011

Jan-Jun2010

Jan-JunDelta

Passenger charges 90.8 83.7 8.5%

Security charges 73.7 67.4 9.2%

Landing charges 40.9 37.8 8.2%

Noise charges 23.1 14.0 64.7%

Baggage sorting 13.6 12.5 9.0%

PRM charges 5.4 5.2 3.7%

• Passenger and securitycharges reflect strong growthin passenger volume

• Ø Heavier aircraft weightsled to over-proportionategrowth of landing charges

• Increase of noise chargesinter alia due to new noise


Aircraft energy supply 5.3 4.7 13.4%

Freight charges 4.1 3.8 5.2%

Fuel charges 3.4 3.1 10.4%

Parking charges 3.1 2.6 20.2%

Emission charges 1.5 1.4 9.9%

Others 9.9 11.5 -14.2%

Total 274.7 247.8 10.9%Ø Landing charge

per landing (CHF) 591.8 585.9 1.0%

inter alia due to new noisesplit between Flughafen Zürich AG and Canton ofZurich

(72 % instead of 53% toFZAG as of 1 January 2011)

• Decrease of other revenuedue to a mild winter

Key Indicators

90

100

110

67%

68%

69%

70%

71%

72%

Passengers per MovementAverage Take-Off Weight

Seat Load Factor

Seat Load factor

Passengers per Movement

Average Take-Off Weight


50

60

70

80

60%

61%

62%

63%

64%

65%

66%

67%

HY1/2001 HY1/2002 HY1/2003 HY1/2004 HY1/2005 HY1/2006 HY1/2007 HY1/2008 HY1/2009 HY1/2010 HY1/2011Source: Zurich Airport, data warehouse, 2011

4. Non-Aviation


Non-Aviation Segment Revenue Breakdown

in million CHF2011

Jan-Jun2010

Jan-JunDelta

Real estate 60.1 59.2 1.4%Rents and leases 44.0 42.3 4.0%Utilities 12.9 14.3 -9.8%Others 3.2 2.7 18.6%Commercial 55.1 54.6 0.9%Retail & tax/duty free 35.5 36.5 -2.6%

• Stable figures despite market environment

• Significant increase of income from fixed rent tenants

• Retail / DF affected by construction works and currency strength


Retail & tax/duty free 35.5 36.5 -2.6%Food & beverage 6.4 5.7 11.0%Others 13.2 12.4 6.3%Parking 31.7 30.7 3.3%Others 16.7 15.8 6.0%

Total 163.6 160.3 2.0%Ø Commercial income* per

departing pax (CHF) 7.3 8.0 -8.9%

currency strength

• New F&B-concepts show positive effects on result

* Commercial income includes retail & tax/duty free and food & beverages

Commercial: Gross Income Shop-Operators

© Flughafen Zürich AG| |13 23.08.2011 2011 Half Year Financial Results

5. Financial Key Figures


Operating Expenses

• Costs remained stable despite strong traffic development

• Gains in efficiency have positive impact on security costs

• Significant decrease of maintenance & material

in million CHF2011

Jan-Jun2010

Jan-JunDelta

Personnel 80.3 79.1 1.4%

Security costs 58.8 56.9 3.3%

Energy & waste 12.8 13.4 -4.3%

Maintenance & material 18.0 21.3 -15.6%

Other operating costs 25.2 24.6 2.5%

© Flughafen Zürich AG| |23.08.201115

maintenance & material costs, mainly due to a mild winter

2011 Half Year Financial Results

SG&A 17.2 17.4 -0.8%

Extraordinary results 0.3 0.4 -11.6%

Total operating expenses 212.7 213.1 -0.2%

Net Result

• Strong increase of both EBITDA and EBITDA margin

• Higher depreciation due to newly capitalised infrastructure and slightly changed depreciation rates of some assets

in million CHF2011

Jan-Jun2010

Jan-JunDelta

EBITDA 225.6 195.0 15.7%EBITDA margin 51.5% 47.8%Depreciation -99.1 -94.5 4.8%EBIT 126.5 100.4 25.9%EBIT margin 28.9% 24.6%

Net cost of capital -35.2 -38.3 -8.2%


rates of some assets

• Lower net cost of capital mainly due to lower debt levels


Net cost of capital -35.2 -38.3 -8.2%Associated companies 1.1 0.0 n.a.Taxes -18.9 -12.5 51.6%

Net profit 73.5 49.7 47.9%

Other Key Figures

• Financial KPI‘s significantly improved

• Return on capital increased as a result of strong operating leverage

• Free Cash Flow generation despite

in million CHFincl. noise excl. noise

2011 2010 2011 2010

Net Financial Debt/EBITDA2) 1.55x 2.11x 2.20x 2.77x

Cash Flow from operating activities/Net Financial Debt2) 29.2% 24.0% 20.2% 18.0%

Gearing 41.5% 54.3% 60.0% 73.6%

ROCE 7.7% 6.3% 7.2% 6.0%


1) Cash Flow from operating activities./.CAPEX2) 12 months rolling

generation despite significant Capex Return on equity2) 9.7% 12.7% 9.5% 13.1%

Equity Ratio 46.7% 46.3% 49.0% 48.2%

Cash Flow operating activities

211.5 206.9 191.8 190.8

whereof CAPEX -156.3 -89.8 -156.3 -89.8

Free Cash Flow1) 55.2 117.1 35.5 101.0

6. Other Key Topics


“Zürich 2010” and Other Projects


“The Circle“

Marketing

Financing

Submission for building permit

Building permit

12.8.2011

© Flughafen Zürich AG| |23.08.2011 2011 Half Year Financial Results20

2010 2011 2012 2013 2014 2015 2016 2017 2018

Planning phase

Regulatory ApprovalsFie

lds

Implementation

Political and Regulatory related Update

• „Ban of Runway Extension“ initiative:

• Date of public vote on 27 November 2011

• No impact on today’s capacity

• Sectoral Aviation Infrastructure Plan (SAIP):

• Federal government shall take a decision in 2012


• Implementation of rules for the Economic Regulation

• Federal government expected to vote on new regulation end of 2011/early 2012

• Recapitalisation of BVK (Employee Pension Fund of the Canton of Zurich) still under discussion

• Capital contribution reserves in the amount of CHF 510 Mio. confirmed by Swiss Tax Authorities


7. Outlook


Outlook 2011: Traffic January to July

in millions2011

Jan-Jul2010

Jan-JulDelta

Local passengers 9.1 8.3 10.0%

Transfer passengers 4.7 4.4 6.9%

Transfer share 33.9% 34.6%


Total passengers 13.9 12.8 8.9%

Movements (in thousand) 163.0 153.8 6.0%

whereof Line & Charter movements 138.1 129.8 6.4%

Cargo (in thousand tons) 246.5 236.1 4.4%

Outlook Traffic: Changes Winter Timetable 2011

� Aer Lingus Dublin, 5x weekly increased to 6x weekly

� Aeroflot Moscow, 1x daily increased to 2x daily

� Air Canada Toronto, 5x weekly increased to 6x weekly

� Edelweiss Phuket, 1x weekly increased to 2x weekly

� Malev Budapest, 7x weekly increased to 11x weekly

Additions/reductions winter timetable 2011

Beijing , new daily service as of 11 February 2012Newark , 6x weekly increased to daily and more capacity: all flights with A340-300 as of 31 March 2012(instead of PrivatAir operated B737-800 service)

Frequency additions:

© Flughafen Zürich AG| |24

� Malev Budapest, 7x weekly increased to 11x weekly

� Pegasus Antalya, 1x weekly increased to 4x weekly

� Czech Airlines Prag, 6x weekly increased to 11x weekly

� Tunis Air Tunis, 2x weekly increased to 3x weekly

� US Airways Philadelphia, 5x weekly increased to 6x weekly

New services:� Edelweiss Capetown, 2x weekly

� Edelweiss Colombo, 1x weekly (combined service with Male)

� Oman Air Muscat, 4x weekly

� Sri Lankan Colombo, 2x weekly

� Transavia Eindhoven, 3x weekly

� Vueling Paris (Orly), 2x daily


Outlook 2011: Commercial Activities January to July

2011Jan-Jul

2010Jan-Jul

Delta

Total turnover, m CHF 276.6 276.1 0.3%

Airside (change versus prev. year) -1.2% 4.4%

Landside (change versus prev. year) 2.0% 7.0%


Commercial turnover/dep. pax, CHF 39.8 43.2 -7.9%

Airside (change versus prev. year) -9.3% 0.9%

Landside (change versus prev. year) -6.4% 3.4%

Outlook Full Year 2011 increased

Solid year of change to prepare for new infrastruct ure and basis for future growth

• Passenger volume increase by 5 to 6%

• Transfer share 34 to 35%

• Total passengers between 24.0 and 24.3 million

• Total revenues to increase by 6.0 to 6.5%

• Aviation revenue continues to grow over-proportionally compared to Non-aviation revenues, due to passenger growth and adjusted split of noise revenues between


revenues, due to passenger growth and adjusted split of noise revenues between Flughafen Zürich AG and the Canton of Zurich

• Non-aviation revenue continues to grow under-proportionally, mainly due to construction measures and the strong Swiss Franc; commissioning of Arrival Duty Free Shops expected to impact positive in the second half year.

• Operating costs increasing by 3 to 4%

• EBITDA margin between 51 and 52 percent

• Net result between 15 and 20% higher than in 2010

• Net result excluding noise between 10 and 15% higher than in 2010


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.


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.


8. Your Questions


Capex Plan

CAPEX (Mio CHF) 2010 2011 2012 2013 2014 2015 2016 2017 2018

Terminal AreaZürich 2010 105 120 70Zone Terminal 2 15 20 50 60 40 15 5Zone Terminal 1 5 0 10 30 40ParkingParking (replacement / additional) 5 5 25 35 30 30 20 20Parking (existing capacity) 9 5 5 5 5 5 5Area East


Area EastCargo infrastructure 15Area WestApron Area West 20 30 40 25 0

Runways & ApronStands 20 20 10Apron south adjustments 7 5Maintenance & Renovation RWY 10/28 5 10Maintenance & Renovation RWY 14/32 1 10 20 40 10Other InvestmentsConstructional facility maintenance 20 30 35 35 35 35 35 35 35Airfield maintenance 30 40 35 35 35 35 35 35 35Other investments 36 29 15 15 15 15 15 15 40Total CAPEX excluding The Circle 242 260 235 215 220 215 1 75 165 160


Repayment Schedule (as per 30.06.2011)

Major repayments:

• Partly repayments CBL (2011 & 2012)

• Partly repayments US PP (2011-15)

• 2015

2016

2017

~

2024

73.2

421.2

250.0

0.0


• Bond

CHF 225m (2014)

• new Bond CHF 250m (2017)

• RepaymentJapanese PP (2024)


0 50 100 150 200 250 300 350 400 450

2011

2012

2013

2014

2015

USPP CBL Bonds JPP

already repaid

73.2

298.2

73.2

129.2

127.3

Debt Maturity Structure (Financial Liabilities)

3.6%

14.3%

15.6%

9.0%

7.5%

48.0%

38.1%

44.2%

47.2%

37.6%

48.4%

47.6%

40.2%

43.8%

54.8%

2007

2008

2009

2010

2011


17.4%

6.5%

6.9%

7.8%

8.7%

54.4%

25.1%

26.5%

23.5%

38.8%

28.2%

68.4%

66.5%

68.7%

52.5%

0% 20% 40% 60% 80% 100%

2002

2003

2004

2005

2006

within 1 year between 1 and 5 years longer than 5 years

Passengers by Customer Segments

Low Cost Carrier11.0%

Star Alliance70.4%

2010 YTD

2011 YTD

(0.0 % vs. 2010)

(0.05 % vs. 2010)


Charter1.2%

Sky Team3.9%

One World4.1%

0% 20% 40% 60% 80% 100%

(-0.3 % vs. 2010)

(-0.2% vs. 2010)

(0.1% vs. 2010)

Hub Carrier Dominance at European Airports (seats offered)

AMS

VIE

MUC

ZRH

FRA hubcarrier

other alliance members


MXP

CPH

LHR

MAD

BRU

CDG

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Source: MIDT data ADI, 2011ADI, January 2010 – December 2010


Star Alliance Hub vs. 2010

10%

15%

20%

25%

30%

35%

40%

MUBRUCPH


-25%

-20%

-15%

-10%

-5%

0%

5%

10%

BRU

CPH

FRA

MUCVIE

VIEZRHFRA

ZRH Passenger Market Share & Growth (YTD 2010)

EuropeShare 78.3% (PY: 77.1%)Change in Pax: +10.7%

AsiaShare: 10.2% (PY: 10.7%)

North AmericaShare: 7.8% (PY: 7.5%)Change in Pax: +12.9%


AfricaShare: 2.8% (PY: 3.7%)Change in Pax: -15.2%

Share: 10.2% (PY: 10.7%)Change in Pax: +3.4%

Latin AmericaShare: 0.9% (PY: 1.0%)Change in Pax: -2.2%


Documents

Analyst Presentation 2011 Half Year Results PRINT VERSION/media/flughafenzh/dokumente/das... · Half Year Financial Results in million CHF 2011 Jan - Jun 2010 Jan- Jun Delta Revenue