Analysts Presentation 2012 Half Year Financial Results

Transcription

1 Analysts Presentation 2012 Half Year Financial Results Thomas E. Kern Chief Executive Officer Daniel Schmucki Chief Financial Officer Zurich Airport

2 Schedule 1. Half Year Highlights 3 2. Half Year Key Data 4 3. Aviation 8 4. Non-Aviation Financial Key Figures Other Key Topics Outlook Half Year Financial Results

3 1. Half Year Highlights Agreement with Hotel Operator Hyatt for The Circle Building Permit for The Circle Standard and Poor s revises Rating: A- to A Clarification about Economic Regulation Issuing of CHF 300 Million Bond Settlement between CH/DE regarding Aircraft Noise: Draft Treaty signed Positive Half Year Result Half Year Financial Results

4 2. Half Year Key Data Half Year Financial Results

5 Half Year Traffic Figures in millions Jan-Jun 2012 Jan-Jun 2011 Delta Local passengers % Transfer passengers % Transfer share 34.8% 34.4% Total passengers % Movements (in thousand) % whereof Line & Charter movements % Cargo (in thousand tons) % Half Year Financial Results

6 Half Year Financial Results in million CHF Jan-Jun 2012 Jan-Jun 2011 Delta Aviation revenue % Non-Aviation revenue % Revenue % EBITDA % EBITDA margin 53.0% 52.2% EBIT % EBIT margin 29.4% 29.3% Net profit % Interest-bearing liabilities % Cash flow from operating activities % CAPEX % EpS (in CHF) % Half Year Financial Results

7 Half Year Financial Results (without noise impact) in million CHF Jan-Jun 2012 w/o noise Jan-Jun 2011 w/o noise Delta Aviation revenue % Non-Aviation revenue % Revenue % EBITDA % EBITDA margin 50.7% 50.1% EBIT % EBIT margin 26.6% 26.7% Net profit % Interest-bearing liabilities 1' % Cash flow from operating activities % CAPEX % EpS (in CHF) % Half Year Financial Results

8 3. Aviation Half Year Financial Results

9 Aviation Segment Revenue Breakdown Passenger and security charges reflect growth of 3.1% in passenger volume Ø Heavier aircraft weights led to over-proportionate growth of landing charges despite declined ATMs. Over-proportionate increase of noise charges due to new noise split between Flughafen Zürich AG and Canton of Zurich Significant increase of Aircraft energy supply as a result of new infrastructure Increase of other revenue due to a greater use of de-icing services in million CHF Jan-Jun 2012 Jan-Jun 2011 Delta Passenger charges % Security charges % Landing charges % Noise charges % Baggage sorting % PRM charges % Aircraft energy supply % Freight charges % Fuel charges % Parking charges % Emission charges % Others % Total % Landing charge per landing (CHF) % Half Year Financial Results

10 Key Indicators Seat Load Factor 73% Seat Load factor Passengers per Movement Average Take-Off Weight 72% 71% 70% 69% 68% 67% 66% 65% 64% 63% 62% 61% Passengers per Movement Average Take-Off Weight % HY1/2002 HY1/2003 HY1/2004 HY1/2005 HY1/2006 HY1/2007 HY1/2008 HY1/2009 HY1/2010 HY1/2011 HY1/2012 Source: Zurich Airport, data warehouse, Half Year Financial Results

11 Economic Regulation: Next Steps Implementation of the ordinance: Flughafen Zürich AG has already started corresponding work to take on all the necessary steps as prescribed in the ordinance. Preparation As a result of the 3-step approach (negotiation, potential benchmarking and/or fall back regulation), Flughafen Zürich AG will have to start the negotiation phase in late step approach As required and prescribed in the ordinance, Flughafen Zürich AG aims to implement operational airport charges on January 1, Implementation Flughafen Zürich AG intends to implement the charges systems for centralised infrastructures and access infrastructures at the same time as the operational charges system, i.e. as of January 1, Implementation Half Year Financial Results

12 Update New Infrastructure Aviation Dock B & Security Check Building In operation since December 1, 2011 Daily operations meet all expectations First cost savings as a result of the new Security Check Building already visible in results Upgrade Terminal 2 (ongoing) Refurbishment in its major phase Renovation work during ongoing operations Check in 2 temporarily on mezzanine level Half Year Financial Results

13 4. Non-Aviation Half Year Financial Results

14 Non-Aviation Segment Revenue Breakdown Commercial revenues increased by 15.2%, primarily due to the openings of the Arrival- / Walkthrough duty free and other new concepts Significant increase of real estate income by 7.3% due to re-lettings & new tenants (Freight dispatch hall, Dock B, SCB, etc.) Increased parking by 1.6% arised from price adjustments for mainly staff parking in million CHF Jan-Jun Jan-Jun Delta Retail and tax & duty free % Food & beverage % Others % Commercial % Rents and leases % Utilities % Others % Real estate % Parking % Others % Total % Ø Commercial income* per departing pax (CHF) % * Commercial income includes retail & tax/duty free and food & beverages Half Year Financial Results

15 Commercial: Gross Income Shop-Operators Half Year Financial Results

16 New Infrastructure Non-Aviation Airside Grieder Men La Prairie Tommy Hilfiger IWC Schaffhausen Caviar House Sprüngli Arrival Duty Free 2, opened June 1, 2011 Arrival Duty Free 1, opened July 19, 2011 Walkthrough Duty Free, opened December 1, ~ m 2 ~ m 2 Landside Restaurant uppderdeck 2010 ~ m ~ 18`000 m Half Year Financial Results

17 Commercial Openings Airside June 2012 June 2012 July 2012 August 2012 August 2012 August Half Year Financial Results

18 5. Financial Key Figures Half Year Financial Results

19 Operating Expenses Disproportionate increase of total operating expenses by 4.1% in comparison to total revenues More FTEs as a result of the new infrastructure & nominal salary increase Cost reduction of police and security as a result of the optimisation of centralised security checks in million CHF Higher costs for external support and marketing expenditures lead to an increase of SG&A by 18.6%. Extraordinary results include the net of capitalised and one off costs Jan-Jun 2012 Jan-Jun 2011 Delta Personnel % Police and security % Energy and waste % Maintenance and material % Other operating costs % SG&A % Extraordinary results % Total operating expenses % Half Year Financial Results

20 Net Result Increase of EBITDA margin to 53.0% Significant higher depreciation due to newly capitalised infrastructure (primarily Dock B & SCB) Net profit incl. noise increased by 9.1% (excl. noise by 6.7%) in million CHF Jan-Jun 2012 Jan-Jun 2011 Delta EBITDA % EBITDA margin 53.0% 52.2% Depreciation and amortisation % EBIT % EBIT margin 29.4% 29.3% Finance result (net) % Associated companies % Taxes % Net profit % Half Year Financial Results

21 Other Key Figures Overall solid key figures in million CHF Increase of ROCE excl. noise by 7.3% Slight increase of interestbearing liabilities (net) primarily due to foreign currency movements Substantial Free Cash Flow incl. noise excl. noise HY 2012 HY 2011 HY 2012 HY 2011 Interest-bearing liabilities/ebitda* 1.67x 1.55x 2.42x 2.20x Interest-bearing liabilities** ' '063.5 ROCE* 7.9% 7.7% 7.3% 7.2% Return on Equity* 10.0% 9.7% 9.7% 9.5% Equity Ratio 49.0% 46.7% 51.9% 49.0% Cash flow operating activities whereof CAPEX Free cash flow * 12 months rolling ** Interest-bearing liabilities are disclosed HY12 vs. FY Half Year Financial Results

22 6. Other Key Topics Half Year Financial Results

23 The Circle at Zürich Airport Two important milestones achieved: 03/2012: Hyatt signed agreement for two hotels with 550 rooms and conference facilities 04/2012: building permit legally binding Current step in project development: preliminary study until Q Final triggers for project approval: investment cost risks to be mitigated achievement of expected hurdle rate pre-letting quote funding in place Half Year Financial Results

24 Settlement between DE & CH regarding Aircraft Noise The draft treaty contains the following key points: No numeric restriction for approaches. Northern approaches over German territory from 6h30 until 18h00 CET (before: 7h00 until 21h00 CET). on Weekends/Holidays from 9h00 until 18h00 CET (before: 9h00 until 20h00 CET). This form of operations requires the extension of runway 28 and 32. The curved northern approach (CNA) on Swiss territory remains a possible option. Operational implementation of Treaty in year Flughafen Zürich AG welcomes that a consensus has been reached Half Year Financial Results

25 Scenarios from ratification Model E DVO+1h Settlement Ratification in CH & DE from 2020 Runway expansion YES Runway expansion NO Model J Treaty Model J South Ratification failed todays DVO* Model E DVO tightened DVO* Model? *DVO = Unilateral Ordinance issued by Germany, Durchführungsverordnung zur Luftverkehrsordnung Half Year Financial Results

26 Interpretation Flughafen Zürich AG: Air Traffic 2020 (Model J Treaty ) Time 06:00-08:00 08:00-10:00 10:00-12:00 12:00-14:00 14:00-16:00 16:00-18:00 18:00-20:00 20:00-22:00 22:00-23:30 today Model E DVO+1h Model J Treaty MO-FR SA/SO + F. MO-FR SA/SO + PH MO-FR SA/SO + Public Holidays CNA South South 06:30 07:00 07:00 CNA South South South North East* 09:00 20:00 21:00 North North 09:00 North East* East* East* * South: Exepctions under certain weather conditions and some intercontinental-landings 18:00 North 09:00 Model 1 Model 2 North North East** East** East** ** South: Exepctions under certain weather conditions Half Year Financial Results

27 Political & Regulatory Update Employee Pension Fund of the Canton of Zurich (BVK): Cantonal Council approved single payment of CHF 2bn & package of measures FZAG is assessing all available options. This may lead to classifying the employee benefit plan according to IAS Negotiations about noise charges: Initial meetings with the negotiating parties have been taking place Negotiations are on track To be implemented as per Swiss Federal Court on April 1, 2013 Noise compensation Federal Appraisal Commission confirmed 1961 as the year for predictable aircraft noise in the South. Building Permit for parking first tranche of applied parking spaces has been approved Half Year Financial Results

28 7. Outlook Half Year Financial Results

29 Outlook 2012: Traffic in millions Jan-Jul 2012 Jan-Jul 2011 Delta Local passengers % Transfer passengers % Transfer share 34.3% 33.9% Total passengers % Movements (in thousand) % whereof Line & Charter movements % Cargo (in thousand tons) % Half Year Financial Results

30 Outlook Traffic: Changes Winter Timetable 2012 SWISS: Additions/reductions: Miami, daily increased to 11x weekly Athens, 21x decreased to 16x weekly Montreal, 6x decreased to 5x weekly Thessaloniki, ceased service from daily Other airlines: New services/frequency additions: Alitalia Rome, 12x weekly (new airline) British Airways London (LHR), 39x weekly increased to 42x weekly (6 flights per day) Niki Vienna, 20x weekly increased to 23x weekly (4 flights per day) Other airlines: Cancellations/reductions: Air Baltic Riga, from 5x weekly to 4x weekly airberlin Hamburg, 3x daily (ceased service) Darwin Genoa, 11x weekly (ceased service) easyjet London (LTN), from daily to 5-6x weekly Helvetic Airways Bari, from daily to 5x weekly Helvetic Airways Cardiff, 3x weekly (ceased service) SriLankan Airlines Colombo, 3x weekly (combined service with Male) Vueling Paris (Orly), 9x weekly (ceased service) Half Year Financial Results (All information as of August 15, 2012)

31 Outlook 2012: Commercial Activities Jan-Jul 2012 Jan-Jul 2011 Delta Total turnover, m CHF % Airside (change versus prev. year) 13.5% -1.2% Landside (change versus prev. year) -0.7% 2.0% Commercial turnover/dep. pax, CHF % Airside (change versus prev. year) 10.5% -9.3% Landside (change versus prev. year) -3.3% -6.4% Half Year Financial Results

32 Guidance Full Year 2012 confirmed with slight adjustments Passenger volume increase by approx. 2.5% Total revenues to increase by 4 to 5% Aviation revenue to grow slightly above passenger volume as a result of revised noise split between FZAG and Canton ZH Non-Aviation revenue to grow over-proportionately, mainly attributable to commercial income but also fixed rent income Opex to increase disproportionately by 3 to 4% Increase of depreciation to approx. CHF 215 million Net result incl. noise up by 5 to 10% Net result excl. noise up by approx. 5% Capex CHF million Half Year Financial Results

33 8. Your Questions Half Year Financial Results

34 Guidance on mid term Capex Plan CAPEX (Mio CHF) Terminal Area Zürich Zone Terminal Zone Terminal 1 and Baggage Sorting System Parking Parking (replacement and additional capacity) Parking refurbishments/ Access roads to Parking and Airport Cargo infrastructure Freight infrastructure Runways, Stands & Apron Additional Stands Maintenance & Renovation RWY 10/ Maintenance & Renovation RWY 14/ Other Investments Constructional facility maintenance Airfield maintenance Surface/Water treatment facilities Other investments Total CAPEX excluding The Circle Half Year Financial Results

35 Repayment Schedule (as per ) Major repayments: Last repayment CBL in Dec Partly repayments US PP ( ) Maturities Bonds CHF 225m (2014) CHF 250m (2017) Repayment Japanese PP (2024) ~ Settlement of new Bond CHF 300m (2020) was on July 3, repaid in April USPP CBL Bonds JPP Half Year Financial Results

36 Debt Maturity Structure (Financial Liabilities) % 53.1% 38.1% % 34.4% 57.4% % 47.2% 43.8% % 44.2% 40.2% % 38.1% 47.6% % 48.0% 48.4% % 38.8% 52.5% % 23.5% 68.7% % 26.5% 66.5% % 25.1% 68.4% % 54.4% 28.2% 0% 20% 40% 60% 80% 100% within 1 year between 1 and 5 years longer than 5 years Half Year Financial Results

37 Customer Segments ZRH Jan-Jun 2012 Star Alliance 69.9% 2011 YTD 2012 YTD Low Cost Carrier 10.6% One World 10.2% Passenger development vs. previous year Star Alliance YTD recent month Low Cost Carrier Sky Team 3.7% One World Sky Team Charter 1.4% Charter -20% -10% 0% 10% 20% 0% 20% 40% 60% 80% 100% Half Year Financial Results

38 Star Alliance Hubs 20% Impact of volcanic erruption in Island in April 2010 BRU CPH FRA 15% MUC VIE ZRH 10% VIE 5% FRA CPH BRU ZRH MUC 0% -5% Half Year Financial Results

39 ZRH Passenger Market Share & Growth (HY 2012) North America June 2012 YTD 2012 Market share +1.3% +2.4% from/to ZRH +10.0% +4.7% Europe June 2012 YTD 2012 Market share +3.0% +2.6% from/to ZRH +0.8% +1.8% Middle East June 2012 YTD 2012 Market share +13.1% +13.2% from/to ZRH +16.4% +8.1% Africa June 2012 YTD 2012 Global market +11.6% +9.5% from/to ZRH -8.2% +4.6% Latin America June 2012 YTD 2012 Market share +11.8% +6.7% from/to ZRH -1.9% -4.2% Asia Pacific June 2012 YTD 2012 Market share +7.7% +8.5% from/to ZRH +20.9% +15.2% Half Year Financial Results Global market June 2012 YTD 2012 Market share +4.7% +4.9% from/to ZRH +2.9% +3.1% Source: ACI & ZRH data warehouse