Analysts Presentation 2007 Half Year Financial Results Josef Felder Chief Executive Officer Beat Spalinger Chief Financial Officer Zurich-Airport 1l22.8.2007l 22.8.2007 l Analysts Presentation
Schedule 2007 Half Year Key Data Aviation Non Aviation Result / Balance Sheet Other Key Topics Outlook 2007ff Your Questions 2l 22.8.2007 l Analysts Presentation
2007 Half Year Key Data 3l 22.8.2007 l Analysts Presentation
2007 Half Year Traffic 2007 Jan - Jun 2006 Jan - Jun Delta in % 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% 4l 22.8.2007 l Analysts Presentation
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 32.6-9.8% Net debt (IFRS) 1'080.1 1'315.2-17.9% EpS (in CHF) 7.5 7.1 6.2% 5l 22.8.2007 l Analysts Presentation
2007 Half Year Financial Results (without noise impact) in million CHF 1-6/07 w/o noise 1-6/06 w/o noise Δ % 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 105.9 108.0-1.9% CAPEX 29.4 32.6-9.8% EpS (in CHF) 4.3 4.3 0.7% 6l 22.8.2007 l Analysts Presentation
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) Aviation revenue: 225.2 Mio CHF (210.2) 60% 40% Non-Aviation revenue: 147.8 Mio CHF (145.1) 1% 1% 2% 2% 5% 4% 1% 20% 11% 35% 12% 56% 16% Passenger charges Noise charges Parking charges Freight charges Aircraft Energy Supply Landing charges Emission charges Fuel charges Baggage Sorting Others 34% Real Estate Concessions Parking Others 7l 22.8.2007 l Analysts Presentation
Aviation 8l 22.8.2007 l Analysts Presentation
Aviation Segment Revenue Break-down Over proportional growth of passenger charges due to increase of security fee as of 1.1.07 (CHF 1. per departing pax) Increase in maximum take off weight led to higher landing charges per landing Additional increase of passenger security fee (CHF 3. per departing pax) as of 1.7.2007 in million CHF 1-6/07 1-6/06 Δ % Passenger charges 125.3 114.8 9.1% Landing charges 35.8 34.4 4.0% Noise charges 27.1 25.2 7.9% Emission charges 1.3 1.4-4.9% Parking charges 2.3 2.4-1.9% Fuel charges 3.0 2.9 2.4% Freight charges 4.2 4.0 6.3% Baggage sorting 11.5 10.6 8.4% Aircraft energy supply 4.9 4.5 9.3% Others 9.6 10.1-4.4% Total 225.2 210.2 7.1% Landing charge per landing (CHF) 546.8 536.8 1.9% 9l 22.8.2007 l Analysts Presentation
Operational Key Figures for ZRH Strong growth of homecarrier contributes major part of overall pax growth Pax (in million) 9.0 9.7 + 8.1% Growth of movements mainly driven by low cost and business aviation segments Movements (in thousand) 8.0 9.0 10.0 128.3 + 2.1% 130.9 125 130 135 Cargo (in thousand tons) 183.3 183.1-0.1% 1. H 2006 1. H 2007 180 182 184 10 l 22.8.2007 l Analysts Presentation
Passenger Mix for ZRH Local passengers growth approx. 2 x GDP Substantial increase in transfer segment Local Passengers 6.1 6.4 5.0 6.0 7.0 million passengers + 4.4% Transfer Passengers 2.8 3.3 + 17.4% 1. H 2006 2.5 3.0 3.5 million passengers 1. H 2007 11 l 22.8.2007 l Analysts Presentation
Passenger Market Share & Growth (2007 Half Year) North America 8.1% (+10.9%) Europe 76.5% (+8.2%) Asia 10.4% (+7.2%) Latin America 1.1% (+5.4%) Africa 3.8% (+3.6%) - market share - change to previous year (in brackets) 12 l 22.8.2007 l Analysts Presentation average growth: 8.1%
Key Indicators Seat Load Factor 70% Passengers per Movement Average Take-Off Weight 90 Seat Load Factor Passengers / Movement Average Mtow 66% 80 62% 70 58% new Swissair capacity (A330) SARS Iraq war 60 54% 50 H1 1998 H1 1999 H1 2000 H1 2001 H1 2002 H1 2003 H1 2004 H1 2005 H1 2006 H1 2007 Airline traffic only 13 l 22.8.2007 l Analysts Presentation
Passengers by Customer Segments Star Alliance 69.0% 2006 2007 Low Cost Carrier 8.2% OneWorld 6.1% Star Alliance Low Cost Carrier passenger growth versus previous year Sky Team 5.4% OneWorld Sky Team Charter 4.9% Charter -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% 20.0% 40.0% 60.0% 80.0% 100.0% 14 l 22.8.2007 l Analysts Presentation
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
Non Aviation 16 l 22.8.2007 l Analysts Presentation
Non Aviation Segment Revenue Break-down Expected decrease in real estate revenue led to under proportional growth in nonaviation segment Very pleasing trend in concession and parking revenue in million CHF 1-6/07 1-6/06 Δ % Real estate 53.0 56.9-6.9% Rents and leases 38.8 41.0-5.4% Utilities 9.9 12.9-23.4% Others 4.3 3.0 45.1% Concessions 49.5 45.8 8.2% Retail & duty free 33.6 30.2 11.1% Food & beverage 4.8 4.7 3.1% Others 11.1 10.9 2.0% Parking 29.6 27.9 5.9% Others 15.7 14.5 8.3% Total 147.8 145.1 1.8% Concession income per departing pax (CHF) 7.9 7.8 1.8% 17 l 22.8.2007 l Analysts Presentation
Development of Real Estate Revenue in million CHF 140 in % 8% 120 Real Estate Revenues Ø vacancy in % 7% 100 80 5.4% 5.9% 6% 5% 60 40 20 0 3.0 4.0% others 3.8% 110.7 3.3% 105.2 106.2 3.3% 3.3% 95.8 112.1 110.6 18 l 22.8.2007 l Analysts Presentation 12.9 utilities 41.0 rents & leases 56.9 4.2% 2001 2002 2003 2004 2005 2006 2006 HJ 2007 HJ 53.0 4% 4.3 others 3% 2% 9.9 utilities 1% 38.8 rents & leases 0%
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
Development of Passenger Spends 450 400 CHF m Passenger spends spends per dep. pax 390.8 42.4 CHF 45 350 300 346.3 296.4 286.9 305.1 349.8 39.1 40.6 41.6 +1.9% 40 250 200 35.4 +10.2% 186.5 205.5 150 100 33.0 33.0 33.7 35 50 0 2001 2002 2003 2004 2005 2006 2006 HY 2007 HY 30 20 l 22.8.2007 l Analysts Presentation
Development of Commercial Revenue 80 70 CHF m revenue revenue per dep. pax 65.2 72.7 7.6 7.8 +1.8% 7.9 CHF 8.0 60 50 54.7 53.0 52.6 55.9 7.3 +10.1% 7.0 40 6.5 4.7 b&f 34.9 38.4 4.8 b&f 30 6.2 6.0 20 5.9 30.2 retail & df 33.6 retail & df 10 0 5.2 2001 2002 2003 2004 2005 2006 2006 HY 2007 HY 5.0 21 l 22.8.2007 l Analysts Presentation
Development of Parking Revenue CHF m CHF 4.8 60 50 40 46.9 revenue 44.4 revenue per o/d passenger 54.1 55.1 46.1 4.42 4.39 58.2 4.50 4.57 +1.4% 4.64 4.6 4.4 30 4.18 27.9 +6.0% 29.6 4.2 20 4.07 10 3.94 4.0 0 2001 2002 2003 2004 2005 2006 2006 HY 2007 HY 3.8 22 l 22.8.2007 l Analysts Presentation
Operating Expenses Increase in cost of personnel due increased security measures, traffic growth and, individual, performance based wages EU-requirements boost up security costs by almost one third Decline of costs for energy & waste due to mild weather conditions during winter period in million CHF 1-6/07 1-6/06 Δ % Personnel 77.6 72.0 7.8% Security costs 51.3 39.0 31.7% Energy & waste 10.0 12.3-18.9% Maintenance & material 21.5 20.6 4.5% Other operating costs 10.7 10.8-1.5% SG&A 17.5 16.9 4.0% Extraordinary results 1.9 0.7 - Total operating expenses 190.5 172.1 10.7% Total operating expenses w/o extraordinary items 188.6 171.5 10.0% 23 l 22.8.2007 l Analysts Presentation
Result / Balance Sheet 24 l 22.8.2007 l Analysts Presentation
Net Cost of Capital EBITDA at p.y. level Margin down due to time gap between security cost and increase security charges Decrease of cost of capital due to lower net debt compared to p.y. (repayment of bank loans, bond, partly repayment of cross boarder lease) Increase of interest rates has positive (non cash) effect on net cost of capital in million CHF 1-6/07 1-6/06 Δ % EBITDA 182.4 183.2-0.4% EBITDA margin 48.9% 51.6% Depreciation -90.4-93.6-3.4% EBIT 92.0 89.6 2.7% EBIT margin 24.7% 25.2% Net cost of capital -33.7-42.1-20.1% Cost of capital -37.5-48.0-21.8% Change fair value interest rate SWAP 5.9 8.6-30.8% Unwinding noise deferrals -2.5-2.7-9.9% Associates companies 0.4-0.0 n/a Taxes -12.3-10.5 17.1% Net result 46.1 37.0 24.5% 25 l 22.8.2007 l Analysts Presentation
Other Key Figures All investments financed by operational cash flows Ongoing decrease of net debt Further strengthening of relevant ratios in million CHF 1-6/07 1-6/06 Δ % Cash flow 120.3 122.1-1.5% CAPEX (w/o AZNF) 29.4 32.6-9.8% Free cash flow 90.9 89.5 1.5% Net debt (IFRS) 1'080.2 1'315.2-17.9% Bonds 351.5 350.8 Loans 976.4 1'059.6 Lease 74.7 76.7 Banks - 42.0 Cash (w/o collateral) -322.4-213.9 Equity 1'289.2 1'150.4 12.1% Equity ratio 40.1% 35.8% ROCE 5.7% 5.4% Net debt IFRS/ EBITDA 3.0x 3.6x 26 l 22.8.2007 l Analysts Presentation
2007 Half Year Key Result Drivers Positive Strong traffic growth, specially in transfer segment Very pleasing commercial development On track with guidance despite higher security measures Negative 30% higher security cost and substantial increase of personnel cost due to EU security requirements Refinancing of these additional costs only started as of 1.7.2007 Decrease of real estate revenue due to expected increase of vacancies 27 l 22.8.2007 l Analysts Presentation
Other Key Topics 28 l 22.8.2007 l Analysts Presentation
Recapitulation Schengen / Security Implementation of treaty Schengen CHF 157 Mio.: Planned reopening of pier B for flight operation (5 stands with passenger bridges, 8 busgates) CHF 16 Mio.: Busgate C (10 busgates) Implementation EU-measures Security CHF 106 Mio.: Centralised security CHF 22 Mio.: Further EU-security-requirements Overall capex of approx. 300 m CHF (2007 2010) Whereby pier B depending on acclamation of Plafonierungsinitiative Adjustment of security charges by CHF 3.50 (Local Pax) respectively CHF 2.00 (Transfer Pax) as of 1.7.2007 Disclosure of security costs in an additional segment as of annual report 2007 Isolation of security charge as part of today s passenger charge 29 l 22.8.2007 l Analysts Presentation
Major Overhaul RWY 16/34 Final Conditions centerline existing concret 27cm asphalt covering (adjustement) 30 l 22.8.2007 l Analysts Presentation
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 future air traffic demand cannot be covered Demand for mobility cannot be covered Counter proposal of the Canton of Zurich: Impact on first inbound wave Less direct connections Threat to hub status and therefore homecarrier Limitation of noise affected residents 2) Timeframe: Public vote expected 25th November 2007 3) Unique s position: Initiative is: legally unbinding in contradiction to the aviation policy of Swiss Federal Government in contradiction to the airport concession of Swiss Federal Government in contradiction to the concept paper SIL of Swiss Federal Government 31 l 22.8.2007 l Analysts Presentation
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 judgements in December 2006: 15 claims rejected, compensations in 3 cases Judgement can change at the Federal Court: The parties appealed against all of the 18 judgements Judgements of the Federal Court are expected not earlier than at the end of 2007 or beginning of 2008 32 l 22.8.2007 l Analysts Presentation
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 will start in December 07 Pax development: Terminal capacity after re-design at 11 million pax (initial scope 4.5 million pax) Continuous passenger growth in Bangalore of more than 40% require further expansions soon after AOD Airport opening date: AOD will be 30 March 2008 (unchanged with re-design) 33 l 22.8.2007 l Analysts Presentation
Outlook 2007ff 34 l 22.8.2007 l Analysts Presentation
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 for current month 35 l 22.8.2007 l Analysts Presentation
Retail, Duty Free and F&B January to July 2007 1-7/07 * 1-7/06 Δ % Commercial turnover (net sales to consumers) in milion CHF Commercial turnover per departing pax in CHF Commercial turnover airside per departing pax in CHF Commercial turnover landside per departing pax in CHF 244.3 221.4 10.4% 41.7 40.7 2.4% 24.4 22.9 6.5% 17.3 17.8-2.9% * provisional figures for current month 36 l 22.8.2007 l Analysts Presentation
Extension landside Shopping Center OCHSNER Sport Shop 10 800 m2 OCHSNER My Shoes Shop 10 500 m2 REISEMARKT Shop 1 355 m2 UNDER NEGOTIATION Shop 8 150 m2 STARBUCKS Shop 319 m2 INTERDISCOUNT Shop 2 326 m2 MANGO Shop 7 124 m2 ESPRIT Shop 4 655 m2 NEW YORKER Shop 3 1036 m2 SMOKING L. Shop 6 20 m2 BIG Shop 5 49 m2 37 l 22.8.2007 l Analysts Presentation
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: improvement by about 20% Net debt: reduction according to maturity schedule 38 l 22.8.2007 l Analysts Presentation
Your Questions 39 l 22.8.2007 l Analysts Presentation
Appendix 40 l 22.8.2007 l Analysts Presentation
Debt Maturity Structure (Financial Liabilities) Maturity at the end of (half) year 30.6.07 2006 2005 2004 2003 2002 9.0% 45.6% 45.4% 8.7% 38.8% 52.5% 7.8% 23.5% 68.7% 6.9% 26.5% 66.5% 6.5% 25.1% 68.4% 17.4% 54.4% 28.2% 0% 20% 40% 60% 80% 100% within 1 year between 1 and 5 years longer than 5 years 41 l 22.8.2007 l Analysts Presentation
Repayment Schedule Major repayments: 2023 421.17 2007: bond (75m), CBL (47.4m) 2009: bond (128m) 2010: bond (150m) 2023: Japanese PP (421m) ~ 2015 2014 2013 2012 2011 2010 2009 2008-73.15 73.15 73.15 49.01 129.18 127.35 178.70 202.42 2007 122.42 0 50 100 150 200 250 300 350 400 450 500 42 l 22.8.2007 l Analysts Presentation
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 maintenance / renovation RWY 10/28 2 3 3 3 3 3 2 1 50 10 - Apron renewal 4th phase 4 6 - - - - - - - - - Apron renewal 5th phase - - 5 6 5 6 - - - - - Apron renewal 6th phase - - - - - - 5 6 5 6 - Apron hangar area (next aircraft engine test silencer) - - - 4 - - - - - - - Apron South adjustments - 8 6 6 - - - - - - - Renovation taxiway - - - - - 6 - - - - - Cargo Infrastructure - - - 25 25 - - - - 25 25 Hangar - - - - 25 25 Other aviation infrastructure 0 13 14 15 12 12 13 - - - - Schengen gate investment 3 70 77 23 - - - - - - - Centralised security area (as of 1.1.2010) - 20 75 11 - - - - - - - Liquid requirements, EU-inspection, staff screening 8 23 - - - - - - - - - Junction Operations Center (Glatttalbahn) 8 5 0 - - - - - - - - Overhauling Ops-Center (ex Skyguide surface) - - 8 - - - - - - - - Refurbishment cargo-office-buildings 1 5 10 - - - - - - - - Shopping infrastructure air-/landside 7 13 6 - - - - - - - - Investments in parking capacity - - 10 50 - - 10 - - - 15 General airport drainage systems project 2 3 5 8 10 10 10 6 3 - - Energy saving investments beside ord. maintenance 4 2 5 4 4 4 4 4 3 - - Environmental "Air-Program" 2 2 2 2 1 1 1 1 1 - - Aircraft engine test silencer 2 8 - - - - - - - - - Other investments (maintenance / innovation) 53 37 50 50 60 70 95 105 102 115 115 Total Capex (approximately) 121 270 281 207 205 146 139 123 164 156 155 43 l 22.8.2007 l Analysts Presentation