Flughafen Zurich AG · SIX:FHZN

Flughafen Zurich — H1 2007 Earnings Presentation

43 slides from Flughafen Zurich's earnings presentation, Aug 22, 2007

  1. Slide 1: Analysts' Presentation – 2007 Half Year Financial Results

    Analysts’ Presentation – 2007 Half Year Financial Results Josef Felder Beat Spalinger Chief Executive Officer Chief Financial Officer Zurich-Airport 1 l 22.8.2007 l 22.8.2007 l Analysts‘ Presentation © Unique (Flughafen Zürich AG)

  2. Slide 2: Schedule

    Schedule • 2007 Half Year Key Data • Aviation • Non Aviation • Result / Balance Sheet • Other Key Topics • Outlook 2007ff • Your Questions 2 l 22.8.2007 l Analysts‘ Presentation © Unique (Flughafen Zürich AG)

  3. Slide 3: 2007 Half Year Key Data

    2007 Half Year Key Data 3 l 22.8.2007 l Analysts‘ Presentation © Unique (Flughafen Zürich AG)

  4. Slide 4: 2007 Half Year Traffic

    2007 Half Year Traffic 2007 2006 Delta in % Jan - Jun Jan - Jun 07 vs. 06 Local passengers 6'379'476 6'107'775 4.4% Transfer passengers 3'256'610 2'774'004 17.4% Transfer share 33.7% 31.0% Total passengers 9'702'855 8'974'044 8.1% Movements 130'912 128'266 2.1% Cargo (in tons) * 183'050 183'301 -0.1

  5. Slide 5: 2007 Half Year Financial Results

    2007 Half Year Financial Results in million CHF 1-6/07 1-6/06 Δ % Revenues 372.9 355.3 5.0% Aviation revenue 225.2 210.2 7.1% Non-Aviation revenue 147.8 145.1 1.8% EBITDA 182.4 183.2 -0.4% EBITDA margin 48.9% 51.6% Net profit 46.1 37.0 24.5% Cash flow 120.3 122.1 -1.5% CAPEX (w/o AZNF) 29.4 32.6 -9.

  6. Slide 6: 2007 Half Year Financial Results (without noise impact)

    2007 Half Year Financial Results (without noise impact) 1-6/07 1-6/06 in million CHF Δ % w/o noise w/o noise Revenues 347.4 332.1 4.6% Aviation revenue 198.0 185.1 7.0% Non-Aviation revenue 149.4 147.0 1.6% EBITDA 156.9 160.0 -1.9% EBITDA margin 45.2% 48.2% Net profit 26.6 17.7 50.3% Cash flow 105.9

  7. Slide 7: Revenue Split

    Revenue Split Total revenue: 372.9 Mio CHF (PY: 355.3) EBITDA: 182.4 Mio CHF (183.2) Net profit: 46.1 Mio CHF (37.0) 40% Aviation revenue: 225.2 Mio CHF 60% Non- Non-Aviation revenue: 147.8 Mio CHF (210.2) (145.1) 1% 1% 2% 4% 11% 2% 5% 35% 1% 20% 12% 56% 16% 34% Passenger charges Landing charges Rea

  8. Slide 8: Aviation

    Aviation 8 l 22.8.2007 l Analysts‘ Presentation © Unique (Flughafen Zürich AG)

  9. Slide 9: Aviation Segment Revenue Break-down

    Aviation Segment Revenue Break-down • Over proportional growth of passenger charges due to in million CHF 1-6/07 1-6/06 Δ % increase of security fee as of Passenger charges 125.3 114.8 9.1% 1.1.07 (CHF 1.– per departing pax) Landing charges 35.8 34.4 4.0% Noise charges 27.1 25.2 7.9% Emission charge

  10. Slide 10: Operational Key Figures for ZRH

    Operational Key Figures for ZRH • Strong growth of homecarrier contributes major part of overall Pax 9.0 pax growth (in million) + 8.1% 9.7 • Growth of movements mainly 8.0 9.0 10.0 driven by low cost and business aviation segments Movements 128.3 (in thousand) + 2.1% 130.9 125 130 135 Cargo 183.3 (

  11. Slide 11: Passenger Mix for ZRH

    Passenger Mix for ZRH • Local passengers growth approx. 2 x GDP Local 6.1 Passengers + 4.4% 6.4 • Substantial increase in transfer segment 5.0 6.0 7.0 million passengers Transfer 2.8 Passengers + 17.4% 3.3 2.5 3.0 3.5 1. H 2006 million passengers 1. H 2007 11 l 22.8.2007 l Analysts‘ Presentation © U

  12. Slide 12: Passenger Market Share & Growth (2007 Half Year)

    Passenger Market Share & Growth (2007 Half Year) Europe North America 76.5% (+8.2%) 8.1% (+10.9%) Asia 10.4% (+7.2%) Latin America 1.1% (+5.4%) Africa 3.8% (+3.6%) - market share - change to previous year (in brackets) average growth: 8.1% 12 l 22.8.2007 l Analysts‘ Presentation © Unique (Flughafen

  13. Slide 13: Key Indicators

    Key Indicators Passengers per Movement Seat Load Factor Average Take-Off Weight 70% 90 Seat Load Factor Passengers / Movement Average Mtow 66% 80 62% 70 new Swissair 58% capacity 60 (A330) SARS Iraq war 54% 50 98 99 00 01 02 03 04 05 06 07 1 19 1 19 1 20 1 20 1 20 1 20 1 20 1 20 1 20 1 20 Airline tr

  14. Slide 14: Passengers by Customer Segments

    Passengers by Customer Segments 2006 Star Alliance 69.0% 2007 Low Cost Carrier 8.2% Star Alliance passenger growth versus previous year OneWorld 6.1% Low Cost Carrier OneWorld Sky Team 5.4% Sky Team Charter Charter 4.9% -20.0% -15.0% -10.0% -5.0% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 0.0% 20

  15. Slide 15: European Passenger Benchmark

    European Passenger Benchmark (in million) LHR passenger growth versus CDG previous year FRA MAD AMS MUC MXP CPH ZRH VIE BRU GVA BSL -2.0% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% 18.0% 15 l 22.8.2007 l Analysts‘ Presentation © Unique (Flughafen Zürich AG)

  16. Slide 16: Non Aviation

    Non Aviation 16 l 22.8.2007 l Analysts‘ Presentation © Unique (Flughafen Zürich AG)

  17. Slide 17: Non Aviation Segment Revenue Break-down

    Non Aviation Segment Revenue Break-down • Expected decrease in real estate revenue led to under in million CHF 1-6/07 1-6/06 Δ % proportional growth in non- Real estate 53.0 56.9 -6.9% aviation segment Rents and leases 38.8 41.0 -5.4% Utilities 9.9 12.9 -23.4% • Very pleasing trend in Others 4.3 3.0

  18. Slide 18: Development of Real Estate Revenue

    Development of Real Estate Revenue in million CHF in % 140 8% Real Estate Revenues Ø vacancy in % 7% 120 6% 100 5.9% 5.4% 5% 80 3.0 4% others 4.2% 4.3 4.0% 60 3.8% others 106.2 110.7 3.3% 105.2 3.3% 3.3% 3% 95.8 112.1 110.6 40 12.9 2% utilities 9.9 56.9 53.0 utilities 20 41.0 1% rents & 38.8 leases

  19. Slide 19: Radisson SAS Airport Hotel

    Radisson SAS Airport Hotel • Land-lease (no Unique-investment) • 329 rooms • Conference, offices, entertainment • Operator: Radisson SAS • Implementing: 2008 19 l 22.8.2007 l Analysts‘ Presentation © Unique (Flughafen Zürich AG)

  20. Slide 20: Development of Passenger Spends

    Development of Passenger Spends CHF m CHF 450 45 Passenger spends spends per dep. pax 400 390.8 42.4 346.3 349.8 41.6 350 40.6 +1.9% 305.1 296.4 300 286.9 39.1 40 250 +10.2% 205.5 200 186.5 35.4 150 35 33.7 33.0 33.0 100 50 0 30 2001 2002 2003 2004 2005 2006 2006 HY 2007 HY 20 l 22.8.2007 l Analysts

  21. Slide 21: Development of Commercial Revenue

    Development of Commercial Revenue CHF m CHF 80 8.0 revenue revenue per dep. pax 72.7 7.9 70 7.8 65.2 +1.8% 7.6 60 54.7 55.9 7.3 53.0 52.6 7.0 50 +10.1% 40 4.7 38.4 4.8 b&f 34.9 b&f 6.5 30 6.2 6.0 30.2 33.6 20 5.9 retail retail & df & df 10 5.2 0 5.0 2001 2002 2003 2004 2005 2006 2006 HY 2007 HY 21 l

  22. Slide 22: Development of Parking Revenue

    Development of Parking Revenue CHF m CHF 4.8 60 revenue revenue per o/d passenger 58.2 55.1 4.64 54.1 4.57 4.6 50 46.9 46.1 4.50 44.4 +1.4% 4.42 4.39 40 4.4 +6.0% 29.6 30 27.9 4.18 4.2 20 4.07 3.94 4.0 10 0 3.8 2001 2002 2003 2004 2005 2006 2006 HY 2007 HY 22 l 22.8.2007 l Analysts‘ Presentation © U

  23. Slide 23: Operating Expenses

    Operating Expenses • Increase in cost of personnel due increased security in million CHF 1-6/07 1-6/06 Δ % measures, traffic growth and, individual, performance Personnel 77.6 72.0 7.8% based wages Security costs 51.3 39.0 31.7% Energy & waste 10.0 12.3 -18.9% Maintenance & material 21.5 20.6 4.5% •

  24. Slide 24: Result / Balance Sheet

    Result / Balance Sheet 24 l 22.8.2007 l Analysts‘ Presentation © Unique (Flughafen Zürich AG)

  25. Slide 25: Net Cost of Capital

    Net Cost of Capital • EBITDA at p.y. level in million CHF 1-6/07 1-6/06 Δ % • Margin down due to time gap EBITDA 182.4 183.2 -0.4% between security cost and EBITDA margin 48.9% 51.6% increase security charges Depreciation -90.4 -93.6 -3.4% EBIT 92.0 89.6 2.7% • Decrease of cost of capital EBIT margi

  26. Slide 26: Other Key Figures

    Other Key Figures • All investments financed by operational cash flows in million CHF 1-6/07 1-6/06 Δ % Cash flow 120.3 122.1 -1.5% • Ongoing decrease of net debt CAPEX (w/o AZNF) 29.4 32.6 -9.8% Free cash flow 90.9 89.5 1.5% • Further strengthening of relevant ratios Net debt (IFRS) 1'080.2 1'315.2

  27. Slide 27: 2007 Half Year Key Result Drivers

    2007 Half Year Key Result Drivers Positive Negative • Strong traffic growth, specially in transfer • 30% higher security cost and substantial segment increase of personnel cost due to EU security requirements • Very pleasing commercial development • Refinancing of these additional costs only started

  28. Slide 28: Other Key Topics

    Other Key Topics 28 l 22.8.2007 l Analysts‘ Presentation © Unique (Flughafen Zürich AG)

  29. Slide 29: Recapitulation Schengen / Security

    Recapitulation „Schengen“/“Security“ Implementation of treaty „Schengen“ Implementation EU-measures „Security“ • CHF 157 Mio.: • CHF 106 Mio.: Planned reopening of pier B for flight Centralised security operation (5 stands with passenger • CHF 22 Mio.: bridges, 8 busgates) Further EU-security-requir

  30. Slide 30: Major Overhaul RWY 16/34

    Major Overhaul RWY 16/34 Final Conditions centerline asphalt covering existing concret 27cm (adjustement) 30 l 22.8.2007 l Analysts‘ Presentation © Unique (Flughafen Zürich AG)

  31. Slide 31: People's Initiative

    People‘s Initiative 1) Content of initiative: ATM limitation: 250‘000 movements / year Night flight ban: 9 hours (+ 2 hours) ~6 % less movements than today Impact on first „inbound wave“ future air traffic demand cannot be covered Less direct connections Demand for mobility cannot be Threat to hub s

  32. Slide 32: Current Situation of Noise Compensations

    Current Situation of Noise Compensations • Number of compensation claims: about 19‘000 • Procedures pending at the Federal Appraisals Commission: about 2‘600 • 18 compensation claims (municipality of Opfikon) have been chosen as pilot cases. The Federal Appraisals Commission has pronounced the judge

  33. Slide 33: International Airport Activities - Bangalore / India

    International Airport Activities - Bangalore / India Status of project: • Month 26 in the project – 8 month until AOD • EPC contractors degree of fulfillment by end of June 07: 77% • All critical areas of the project are on track • Take over of first sections will start in August 07; trial phase wil

  34. Slide 34: Outlook 2007ff

    Outlook 2007ff 34 l 22.8.2007 l Analysts‘ Presentation © Unique (Flughafen Zürich AG)

  35. Slide 35: Traffic January to July 2007

    Traffic January to July 2007 1-7/07 1-7/06 Δ % Local passengers 7'747'596 7'418'233 4.4% Transfer passengers 3'896'724 3'348'154 16.4% Transfer share 33.4% 30.9% Total passengers 11'718'242 10'872'818 7.8% Movements 154'958 152'243 1.8% Cargo (in tons) * 213'595 213'315 0.1% * provisional figures fo

  36. Slide 36: Retail, Duty Free and F&B January to July 2007

    Retail, Duty Free and F&B January to July 2007 1-7/07 * 1-7/06 Δ % Commercial turnover (net sales 244.3 221.4 10.4% to consumers) in milion CHF Commercial turnover per 41.7 40.7 2.4% departing pax in CHF Commercial turnover airside 24.4 22.9 6.5% per departing pax in CHF Commercial turnover landside

  37. Slide 37: Extension landside Shopping Center

    Extension landside Shopping Center SMOKING L. Shop 6 UNDER 20 m2 NEGOTIATION Shop 8 150 m2 MANGO Shop 7 BIG 124 m2 Shop 5 49 m2 STARBUCKS OCHSNER Shop Sport 319 m2 Shop 10 800 m2 ESPRIT Shop 4 655 m2 OCHSNER My Shoes Shop 10 500 m2 REISEMARKT Shop 1 INTERDISCOUNT NEW YORKER 355 m2 Shop 2 Shop 3 326

  38. Slide 38: Key Figures

    Key Figures • Traffic (≈ 20.4 million pax; transfer-rate ≈ 33 %) • Revenue: 8 – 9 % over proportional increase in aviation revenue (adjustment security charge) 3 – 4% under proportional increase in non-aviation revenue • EBITDA margin: decline due to EU-security-requirements • Net result: improvemen

  39. Slide 39: Your Questions

    Your Questions 39 l 22.8.2007 l Analysts‘ Presentation © Unique (Flughafen Zürich AG)

  40. Slide 40: Appendix

    Appendix 40 l 22.8.2007 l Analysts‘ Presentation © Unique (Flughafen Zürich AG)

  41. Slide 41: Debt Maturity Structure (Financial Liabilities)

    Debt Maturity Structure (Financial Liabilities) 30.6.07 9.0% 45.6% 45.4% Maturity at the end of (half) year 2006 8.7% 38.8% 52.5% 2005 7.8% 23.5% 68.7% 2004 6.9% 26.5% 66.5% 2003 6.5% 25.1% 68.4% 2002 17.4% 54.4% 28.2% 0% 20% 40% 60% 80% 100% within 1 year between 1 and 5 years longer than 5 years 4

  42. Slide 42: Repayment Schedule

    Repayment Schedule Major repayments: 2023 421.17 ~ - • 2007: 2015 73.15 bond (75m), CBL (47.4m) 73.15 2014 • 2009: 2013 73.15 bond (128m) 129.18 2012 • 2010: 2011 127.35 bond (150m) 202.42 2010 • 2023: 178.70 2009 Japanese PP (421m) 49.01 2008 122.42 2007 0 50 100 150 200 250 300 350 400 450 500 42

  43. Slide 43: 10-Year Capex-Plan

    10-Year Capex-Plan Capex (in mio. CHF) 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Top-Projects: 68 233 231 157 145 76 44 18 62 41 40 Increased maintenance / renovation RWY 16/34 23 50 3 - - - - - - - - Increased maintenance / renovation RWY 14/32 3 3 2 1 60 10 - - - - - Increased mainten

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