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Fraport AG

Quarterly Report May 28, 2018

163_10-q_2018-05-28_f2196b1b-5004-4911-85be-5f730d7eeccc.pdf

Quarterly Report

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May 9, 2018

Overview by the Executive Board

In the first three months of 2018, the airports of the Fraport Group recorded strong passenger development. At approximately 14.4 million, passenger numbers at Frankfurt Airport reached an all-time high (+10.0%). The Group airports also posted strong – in part double-digit – growth rates.

Group revenue increased by 15.0% in the first three months of 2018 to €681.7 million (+€89.1 million). At the Frankfurt site, this increase was also due to higher airport charges based on passenger growth, increased income from security services, a rise in charges from ground services and infrastructure as well as higher parking revenue. Outside of the Frankfurt site, Fraport Greece as well as the Group companies Fortaleza and Porto Alegre contributed significantly to revenue growth, as these had not yet taken over operations in the same quarter of the previous year.

Higher operating expenses resulted primarily from increased expenses due to higher traffic volume at the Group companies FraGround and FraSec as well as Fraport Greece and the Group companies Fortaleza and Porto Alegre in the International Activities & Services segment.

Correspondingly, Group EBITDA and Group EBIT rose significantly, coming in at €174.7 million (+27.2%) and €82.3 million (+49.4%), respectively. Due to the negative impact from Fraport Greece, the financial result of –€56.1 million (Q1 2017: – €29 million) led to a Group result that was slightly above the previous year's level at €19.6 million (+4.3%).

Changes in working capital led to a decrease in operating cash flow and also impacted the free cash flow, which dropped from €54.0 million to –€66.9 million in the first three months of 2018, in part due to higher capital expenditure at the Frankfurt site and in international business. This resulted in an increase in net financial debt of €78.3 million to €3,586.2 million. The gearing ratio reached a level of 95.9%.

Following the end of the first quarter of 2018, the Executive Board maintains its forecasts for the Group's asset, financial, and earnings position as well as its forecasts for segment development for fiscal year 2018.

As previously reported in the 2017 Group Management Report (see Annual Report pages 124 and 127), the Group company Fraport USA took over operations of the food & beverage and retail spaces at Terminal 5 of John F. Kennedy International Airport in New York on April 1, 2018.

Overall, the Executive Board describes the operating and financial performance in the reporting period as positive.

Key figures

in € million Q1 2018 Q1 2017 Change in %
Revenue 681.7 592.6 +89.1 +15.0
Revenue adjusted by IFRIC 12 644.2 588.4 +55.8 +9.5
EBITDA 174.7 137.3 +37.4 +27.2
EBIT 82.3 55.1 +27.2 +49.4
EBT 26.2 25.9 +0.3 +1.2
Group result 19.6 18.8 +0.8 +4.3
Earnings per share (basic) (€) 0.25 0.20 +0.10 +25.0
Operating cash flow 80.5 125.91) – 45.4 – 36.1
Free cash flow – 66.9 54.0 – 120.9
Shareholders' equity 4,035.4 4,028.72) +6.7 +0.2
Group liquidity 1,016.4 1,018.62) – 2.2 – 0.2
Net financial debt 3,586.2 3,512.42) +73.8 +2.1
Gearing ratio (%) 95.9 94.22) +1.7 PP
Total assets 10,886.2 10,832.42) +53.8 +0.5
Average number of employees 21,225 20,214 +1,011 +5.0

1) Value changed based on adjusted definition (see section "statement of cash flows").

2) Figures as at December 31, 2017.

Note on quarterly figures

The quarterly figures concerning the asset, financial, and earnings position have been determined in accordance with the International Financial Reporting Standards (IFRS) as applicable in the EU. The interim release does not include complete interim financial statements in accordance with International Accounting Standard (IAS) 34. The interim release was not reviewed or audited by an independent auditor.

The following changes in particular occurred in the first quarter of 2018 compared to the same period in the previous year:

On April 11, 2017, Fraport took over operations of 14 Greek regional airports. Revenue generated in the first three months of 2018 was €44.3 million, which stood in contrast to operating expenses amounting to €44.8 million. Fraport Greece generated EBITDA of –€0.5 million, EBIT of –€11.5 million, and a result of –€25.1 million.

On January 2, 2018 the Group companies Fortaleza and Porto Alegre took over operations of the respective Brazilian airports. Revenue generated in the first three months of 2018 was €30.8 million, which stood in contrast to operating expenses amounting to €21.5 million. The two Group companies generated EBITDA of €9.2 million, EBIT of €5.9 million, and a result of €1.5 million.

More information can be found in the sections "the group's results of operations" and "results of operations for segments".

Operating Performance

Traffic development at the Group sites

Share in % Passengers1) Cargo (air freight + air mail in m. t.) Movements
Q1 2018 Change in % Q1 2018 Change in % Q1 2018 Change in %
Frankfurt 100 14,430,912 +10.0 527,401 – 0.1 113,213 +8.3
Ljubljana 100 329,212 +14.2 3,030 +11.3 7,311 +1.6
Fortaleza2) 100 1,561,431 +2.6 10,133 +25.0 13,133 +0.1
Porto Alegre2) 100 2,022,397 +8.4 8,958 +86.0 19,829 +2.1
Fraport Greece3) 73.4 1,786,924 – 2.1 1,696 – 25.7 18,455 – 2.5
Lima 70.01 5,337,005 +10.6 65,784 +8.1 47,295 +6.4
Twin Star 60 216,218 +71.6 2,462 – 29.7 2,319 +28.8
Burgas 60 37,610 +16.0 2,444 – 27.8 526 – 11.9
Varna 60 178,608 +90.8 19 – 84.1 1,793 +49.0
Antalya 51/504) 2,568,967 +21.4 n.a. n.a. 17,674 +12.2
Hanover 30 1,062,729 +8.5 5,214 – 2.0 15,632 – 0.1
St. Petersburg 25 3,177,334 +9.6 n.a. n.a. 33,112 +7.3
Xi'an 24.5 10,452,474 +6.3 64,525 +12.0 77,763 +3.0

1) Commercial traffic only, in + out + transit.

2) Take-over of operations on January 2, 2018.

3) Take-over of operations on April 11, 2017.

4) Share of voting rights: 51%, dividend share: 50%.

The passenger traffic in Frankfurt set a new record in the first quarter of 2018 with 14.4 million passengers. The volume of the previous year was exceeded by approximately 1.3 million passengers or 10.0%. Apart from the influence of the earlier Easter holidays compared to the previous year, this growth was driven by the extensive increases in offers from airlines. Above all, the additional offers strengthened continental traffic (+15.3%), mainly with new destinations as well as increases in traffic frequency to southern and southeastern Europe. A comparatively high growth rate was also achieved in intercontinental traffic (+4.9%). This was due to both a return of tourist traffic to North Africa as well as growth in traffic to destinations in the Far East such as China, South Korea, Thailand, and Vietnam.

The airports beyond the Frankfurt site posted strong passenger growth with, in part, double-digit growth rates. In particular, passenger numbers in Antalya continued to recover significantly compared to the previous year, with traffic to and from Russia posting the strongest growth. Only the Greek regional airports showed a slight drop in passenger numbers (–2.1%) in the reporting period. This was primarily due to the closure of the runway for renovation and expansion measures at Thessaloniki Airport, which has the strongest passenger volume.

Financial Performance

The group's results of operations

Revenue

Group revenue increased by 15.0% in the first three months of 2018 to €681.7 million (+€89.1 million). At the Frankfurt site, this increase is also due to higher airport charges based on passenger growth, increased income from security services due to new business at Berlin and Cologne/Bonn airports, a rise in charges from ground services and infrastructure as well as higher parking revenue. Lower retail revenue had a reducing effect on Group revenue. Beyond the Frankfurt site, Fraport Greece (+€44.3 million) as well as the Group companies Fortaleza and Porto Alegre (+€30.8 million) contributed significantly to revenue growth, as these had not yet taken over operations in the first quarter of the previous year. There was a negative contribution to revenue from Group company Lima due to exchange rate effects (–€3.5 million) despite a positive development in passenger volume in the reporting period. Group revenue in the reporting period included revenue of €37.5 million based on the application of IFRIC 12 in connection with capacitive capital expenditure (Q1 2017: €4.2 million), which was primarily attributed to Fraport Greece.

Expenses

Operating expenses (cost of materials, personnel expenses, and other operating expenses) amounting to €527.4 million were €57.7 million higher than in the previous year. While personnel expenses at Fraport AG (–€9.6 million) declined in particular as a result of provisions for the restructuring of staff created in the same quarter of the previous year, personnel expenses at the Group companies FraGround and FraSec increased among other things due to traffic volumes and new business, respectively (+€7.8 million). Beyond the Frankfurt site, Fraport Greece (+€44.8 million) as well as the Group companies Fortaleza and Porto Alegre (+€21.5 million) increased operating expenses. Group expenses in the reporting period included expenses of €37.5 million based on the application of IFRIC 12 in connection with capacitive capital expenditure (Q1 2017: €4.2 million), which was primarily incurred by Fraport Greece.

EBITDA and EBIT

Group EBITDA increased by €37.4 million, coming to €174.7 million (+27.2%). An EBITDA contribution of €9.2 million was attributed to the Group companies Fortaleza and Porto Alegre. At –€0.5 million, Fraport Greece had a negative contribution to Group EBITDA. Higher depreciation and amortization, in particular in connection with Fraport Greece (+€11.0 million) and the Group companies Fortaleza and Porto Alegre (+€3.4 million) stood in contrast to lower depreciation and amortization expenses for Fraport AG (–€2.3 million). Accordingly, Group EBIT was €82.3 million (+€27.2 million or +49.4%).

Financial result

The significant deterioration in the negative financial result (from –€29.2 million to –€56.1 million) was primarily attributable to higher interest expenses in connection with Fraport Greece (+€18.2 million) as well as the Group companies Fortaleza and Porto Alegre (+€3.1 million). Moreover, the result of companies accounted for using the equity method was below the previous year's level, in part due to the Group company Antalya (–€2.3 million), which posted a result in 2017 that was positively impacted by the re-evaluation of the concession liability.

EBT, Group result, and EPS

The worsened financial result led to EBT of €26.2 million (+€0.3 million). With income tax expenses of €6.6 million (Q1 2017: €7.1 million), the Group result was €19.6 million (+€0.8 million). This resulted in basic earnings per share of €0.25 (+€0.05).

Results of operations for segments

Aviation

in € million Q1 2018 Q1 2017 Change Change in %
Revenue 219.3 206.2 +13.1 +6.4
Personnel expenses 85.1 83.6 +1.5 +1.8
Cost of materials 15.7 11.8 +3.9 +33.1
EBITDA 39.8 26.2 +13.6 +51.9
Depreciation and amortization 30.0 30.4 – 0.4 – 1.3
EBIT 9.8 – 4.2 +14.0
Average number of employees 6,075 5,854 +221 +3.8

Segment revenue increased by 6.4% in the first three months of 2018 to €219.3 million (+€13.1 million). Apart from passenger growth at the Frankfurt site, increased revenue from security services from new business at the airports in Berlin and Cologne/Bonn had a positive impact. Additional expenses resulted primarily from an increased need for manpower at the Group company FraSec GmbH (+€3.2 million) as well as in connection with capital expenditure (+€2.0 million).

EBITDA was up by €13.6 million on the previous year, at €39.8 million (+51.9%). Unchanged depreciation and amortization resulted in an improvement of the segment EBIT by €14.0 million to €9.8 million.

Retail & Real Estate

in € million Q1 2018 Q1 2017 Change Change in %
Revenue 117.4 117.1 +0.3 +0.3
Personnel expenses 13.7 13.9 – 0.2 – 1.4
Cost of materials 34.0 35.9 – 1.9 – 5.3
EBITDA 89.0 83.2 +5.8 +7.0
Depreciation and amortization 20.6 21.1 – 0.5 – 2.4
EBIT 68.4 62.1 +6.3 +10.1
Average number of employees 645 653 – 8 – 1.2

In the reporting period, revenue was above the previous year's level (+0.3%) at €117.4 million. Higher parking revenue (+€3.2 million) stood in contrast to the lower retail revenue (–€2.2 million). The net retail revenue per passenger deceased by 13.0% to €3.27 compared to the previous year (Q1 2017: €3.76). This was primarily due to the devaluations of several currencies against the euro, which resulted in a significant loss of purchasing power. Further influences on retail revenue were the aboveaverage growth in passenger numbers on European routes, where passengers tended to spend less, as well as capacity bottlenecks at the terminals, particularly at security checkpoints, which reduced the remaining time for purchases.

Higher other income from the sale of land as well as a slight decrease in personnel and material expenses led to an EBITDA of €89.0 million (+7.0%). With depreciation and amortization virtually unchanged, segment EBIT stood at €68.4 million (+10.1%).

Ground Handling
in € million Q1 2018 Q1 2017 Change Change in %
Revenue 151.1 143.5 +7.6 +5.3
Personnel expenses 111.3 110.1 +1.2 +1.1
Cost of materials 12.6 13.3 – 0.7 – 5.3
EBITDA 2.2 – 4.2 +6.4
Depreciation and amortization 9.9 10.3 – 0.4 – 3.9
EBIT – 7.7 – 14.5 +6.8
Average number of employees 9,009 8,714 +295 +3.4

In the first quarter of 2018, revenue increased by €7.6 million to €151.1 million (+5.3%). This was mainly due to increased revenue from charges in ground services and infrastructure in connection with the increased maximum take-off weights and passenger growth at the Frankfurt site. Personnel expenses (+€1.2 million) as well as the cost of materials (–€0.7 million) remained roughly at the previous year's level. Correspondingly, EBITDA increased by €6.4 million to €2.2 million. With depreciation and amortization virtually unchanged, segment EBIT stood at –€7.7 million, and was thus €6.8 million higher than in the previous year.

International Activities & Services

in € million Q1 2018 Q1 2017 Change Change in %
Revenue 193.9 125.8 +68.1 +54.1
Personnel expenses 74.0 69.4 +4.6 +6.6
Cost of materials 139.0 94.7 +44.3 +46.8
EBITDA 43.7 32.1 +11.6 +36.1
Depreciation and amortization 31.9 20.4 +11.5 +56.4
EBIT 11.8 11.7 +0.1 +0.9
Average number of employees 5,496 4,993 +503 +10.1

Revenue in the International Activities & Services segment increased by €68.1 million to €193.9 million (+54.1%). Fraport Greece (+€44.3 million) as well as the Group companies Fortaleza and Porto Alegre (+€30.8 million) were the primary drivers of the revenue growth, as these had not yet taken over operations in the first quarter of the previous year. The positive operating performance at the Group company Lima was depressed by currency effects (–€12.1 million), which led to a decrease in the Group company's revenue by a total of €3.5 million. Due to the termination of the concession in Boston effective October 31, 2017, revenue at the Group company Fraport USA was below the previous year's level (–€5.3 million). Segment revenue in the reporting period included revenue of €37.5 million based on the application of IFRIC 12 in connection with capacitive capital expenditure (Q1 2017: €4.2 million), which was primarily attributed to Fraport Greece.

The operating expenses (cost of materials, personnel expenses as well as other operating expenses) increased primarily due to Fraport Greece (+€44.8 million) and the Group companies Fortaleza and Porto Alegre (+€21.5 million). Segment expenses in the reporting period included expenses of €37.5 million based on the application of IFRIC 12 in connection with capacitive capital expenditure (Q1 2017: €4.2 million), which was primarily incurred by Fraport Greece.

EBITDA recorded an increase of €11.6 million to €43.7 million (+36.1%). Higher depreciation and amortization, in particular in connection with Fraport Greece (+€11.0 million) and the Group companies Fortaleza and Porto Alegre (+€3.4 million), held the EBIT at a stable level of €11.8 million (Q1 2017: €11.7 million).

Development of the key Group companies outside of Frankfurt (IFRS values before consolidation):

in € million Share in % Revenue1) EBITDA EBIT Result
Q1 2018 Q1 2017 Δ % Q1 2018 Q1 2017 Δ % Q1 2018 Q1 2017 Δ % Q1 2018 Q1 2017 Δ %
Fraport USA 100 9.3 14.6 – 36.3 0.4 2.5 – 84.0 – 0.7 0.7 – 0.7 0.8
Fraport Slovenija 100 9.8 8.0 +22.5 3.3 2.5 +32.0 0.8 0.0 0.7 0.0
Fortaleza + Porto Alegre2) 100 30.8 9.2 5.9 1.5
Fraport Greece3) 73.4 44.3 – 0.5 – 11.5 – 25.1
Lima 70.01 76.3 79.8 – 4.4 28.7 30.1 – 4.7 25.2 25.4 – 0.8 16.8 14.9 +12.8
Twin Star 60 3.5 2.7 +29.6 – 0.6 – 1.0 – 3.5 – 3.9 – 4.7 – 5.1

Fully consolidated Group companies

Group companies accounted for using the equity method

in € million Share in % Revenue1) EBITDA EBIT Result
Q1 2018 Q1 2017 Δ % Q1 2018 Q1 2017 Δ % Q1 2018 Q1 2017 Δ % Q1 2018 Q1 2017 Δ %
Antalya 51/504) 23.9 15.0 +59.3 8.5 7.6 +11.8 – 18.9 – 19.9 – 27.0 – 22.4
Hanover 30 34.6 31.8 +8.8 2.5 2.2 +13.6 – 2.6 – 2.8 – 2.4 – 4.1
Pulkovo/Thalita 25 51.3 48.2 +6.4 24.7 22.7 +8.8 16.2 12.9 +25.6 – 14.5 0.0
Xi'an 24.5 59.5 55.6 +7.0 29.1 27.2 +7.0 17.4 12.6 +38.1 14.6 8.7 +67.8

1) Revenue adjusted by IFRIC 12: Lima Q1 2018: €71.6 million (Q1 2017: €75.6 million); Fraport Greece Q1 2018: €20.1 million;

Fortaleza + Porto Alegre Q1 2018: €22.2 million, Antalya Q1 2018: €17.4 million.

2) Sum of the Group companies Fortaleza and Porto Alegre. Operations from January 2, 2018.

3) The Group companies Fraport Regional Airports of Greece A and Fraport Regional Airports of Greece B are collectively referred to as "Fraport Greece".

Operations from April 11, 2017.

4) Share of voting rights: 51%, Dividend share: 50%.

Asset and capital structure

At €10,886.2 million, total assets as at March 31, 2018 were €53.8 million above the comparable value as at December 31, 2017. Non-current assets in the amount of €9,762.4 million remained unchanged compared to the fiscal year 2017 (–0.2%). Current assets increased slightly by €70.7 million to €1,123.8 million (+6.7%). This was primarily due to higher trade accounts receivable as at the balance sheet date (+€30.4 million) as well as prepayments for construction services at the Brazilian airports in Fortaleza and Porto Alegre (+€26.4 million).

Shareholders' equity increased slightly compared to the 2017 balance sheet date to €4,035.4 million (+0.2%). The shareholders' equity ratio was at 34.4% (December 31, 2017: 34.4%). Non-current liabilities declined by €135.9 million to €5,407.7 million due to scheduled reclassifications. Correspondingly, current liabilities rose significantly in the reporting period by €183.0 million to €1,443.1 million (+14.5%). Scheduled reclassifications were primarily the reason for this.

Gross debt was €4,602.6 million as at March 31, 2018 (December 31, 2017: €4,531.0 million). Liquidity declined by €2.2 million to €1,016.4 million. Correspondingly, net financial debt increased by €78.3 million to €3,586.2 million (December 31, 2017: €3,512.4 million). The gearing ratio reached a level of 95.9% (December 31, 2017: 94.2%).

Statement of cash flows

The Cash flow from operating activities (operating cash flow) decreased significantly by €45.4 million to €80.5 million (– 36.1%) in the first three months of 2018. The decline was caused by changes to working capital as at the balance sheet date. The cash flow used in investing activities excluding investments in cash deposits and securities increased due to higher capital expenditure at the Frankfurt site and in the Group companies Fortaleza and Porto Alegre as well as Fraport Greece by €62.3 million to €133.3 million. Correspondingly, the free cash flow was –€66.9 million (Q1 2017: €54.0 million).

Beginning in fiscal year 2018, fixed concession payments will be allocated to cash flow used in investing activities in the consolidated statement of cash flows (previously this was allocated to cash flow from operating activities). The previous year's figures have been adjusted accordingly (Q1 2018: €5.9 million, Q1 2017: €6.3 million). Taking into account investments in and revenue from securities and promissory note loans as well as repayments of time deposits, the overall cash flow used in investing activities was €116.1 million (Q1 2018: cash inflow of 93.3 million).

The lower year-on-year inclusion of non-current financial liabilities led to a cash flow from financing activities in the amount of €55.5 million (Q1 2017: cash inflow of €395.0 million). Taking into account exchange rate fluctuations and other changes, Fraport reported cash and cash equivalents based on the statement of cash flows of €476.8 million as at March 31, 2018 (Q1 2017: €1,061.2 million).

Events after the Balance Sheet Date

There were no significant events for the Fraport Group after the balance sheet date.

Risk and Opportunities Report

In the first quarter of 2018, there were no substantial changes to the risks and opportunities as presented in the risk and opportunities report in the 2017 Annual Report starting on page 105.

Report on Forecast Changes

Business outlook

Following the end of the first quarter of 2018, the Executive Board maintains its forecasts for the Group's asset, financial, and earnings position as well as its forecasts for segment development for the fiscal year 2018 (see 2017 Group management report starting on page 125).

Consolidated Income Statement (IFRS)

Q1 2018 Q1 2017
681.7 592.6
0.1 0.3
8.4 8.0
11.9 6.1
702.1 607.0
–201.3 –155.7
–284.1 –277.0
–42.0 –37.0
174.7 137.3
–92.4 –82.2
82.3 55.1
6.4 8.4
–50.5 –34.1
–13.0 –6.6
1.0 3.1
–56.1 –29.2
26.2 25.9
–6.6 –7.1
19.6 18.8
–3.5 0.7
23.1 18.1
0.25 0.20
0.25 0.20

Consolidated Statement of Comprehensive Income (IFRS)

in € million Q1 2018 Q1 2017
Group result 19.6 18.8
Other comprehensive income of companies accounted for using the equity method 0.1 0.0
(Deferred taxes related to those items 0.0 0.0)
Items that will not be reclassified subsequently to profit or loss 0.1 0.0
Fair value changes of derivatives
Changes recognized directly in equity –0.8 0.0
Realized gains (+)/losses (–) –5.6 –7.0
4.8 7.0
(Deferred taxes related to those items –1.4 –2.2)
Fair value changes of financial assets available for sale
Changes recognized directly in equity –3.9 4.2
Realized gains (+)/losses (–) 0.0 0.0
–3.9 4.2
(Deferred taxes related to those items 0.2 0.3)
Currency translation of foreign subsidiaries
Changes recognized directly in equity –13.9 –3.3
Realized gains (+)/losses (–) 0.0 0.0
–13.9 –3.3
Income and expenses from companies accounted for using the equity method directly recognized in equity
Changes recognized directly in equity 1.2 2.0
Realized gains (+)/losses (–) 0.0 0.0
1.2 2.0
(Deferred taxes related to those items 0.0 –0.4)
Items that will be reclassified subsequently to profit or loss –13.0 7.6
Other result after deferred taxes –12.9 7.6
Comprehensive income 6.7 26.4
thereof attributable to non-controlling interests –5.0 0.1
thereof attributable to shareholders of Fraport AG 11.7 26.3

Consolidated Statement of Financial Position (IFRS)

Assets
--------
in € million March 31, 2018 December 31, 2017
Non-current assets
Goodwill 19.3 19.3
Investments in airport operating projects 2,619.8 2,621.1
Other intangible assets 132.1 132.4
Property, plant, and equipment 5,926.8 5,921.5
Investment property 88.1 96.4
Investments in companies accounted for using the equity method 259.3 268.1
Other financial assets 496.6 488.6
Other receivables and financial assets 180.5 190.9
Deferred tax assets 39.9 41.0
9,762.4 9,779.3
Current assets
Inventories 27.6 29.3
Trade accounts receivable 173.9 143.5
Other receivables and financial assets 280.0 245.5
Income tax receivables 6.7 5.4
Cash and cash equivalents 635.6 629.4
1,123.8 1,053.1
Total 10,886.2 10,832.4

Liabilities and equity

in € million March 31, 2018 December 31, 2017
Shareholders' equity
Issued capital 923.9 923.9
Capital reserve 598.5 598.5
Revenue reserves 2,357.4 2,345.7
Equity attributable to shareholders of Fraport AG 3,879.8 3,868.1
Non-controlling interests 155.6 160.6
4,035.4 4,028.7
Non-current liabilities
Financial liabilities 3,841.2 3,955.6
Trade accounts payable 40.7 42.4
Other liabilities 1,075.6 1,090.1
Deferred tax liabilities 204.4 203.8
Provisions for pensions and similar obligations 34.2 34.2
Provisions for income taxes 72.8 70.3
Other provisions 138.8 147.2
5,407.7 5,543.6
Current liabilities
Financial liabilities 761.4 575.4
Trade accounts payable 163.5 185.9
Other liabilities 281.4 249.7
Provisions for income taxes 24.0 33.1
Other provisions 212.8 216.0
1,443.1 1,260.1
Total 10,886.2 10,832.4

Consolidated Statement of Cash Flows (IFRS)

in € million Q1 2018 Q1 2017
Profit attributable to shareholders of Fraport AG 23.1 18.1
Profit attributable to non-controlling interests –3.5 0.7
Adjustments for
Taxes on income 6.6 7.1
Depreciation and amortization 92.4 82.2
Interest result 44.1 25.7
Gains/losses from disposal of non-current assets –4.8 0.4
Others –4.6 –0.7
Changes in the measurement of companies accounted for using the equity method 13.0 6.6
Changes in inventories 1.7 –0.3
Changes in receivables and financial assets –46.7 –32.5
Changes in liabilities –8.0 26.9
Changes in provisions –4.6 16.5
Operating activities 108.7 150.7
Financial activities
Interest paid –9.9 –9.9
Interest received 2.7 3.9
Paid taxes on income –21.0 –18.8
Cash flow from operating activities 80.5 125.9
Investments in airport operating projects –71.7 –14.1
Investments for other intangible assets –2.0 –2.5
Capital expenditure for property, plant, and equipment –73.8 –52.9
Investments for "Investment property" –0.5 –0.2
Investments in companies accounted for using the equity method 0.0 –2.2
Dividends from companies accounted for using the equity method 0.6 0.0
Proceeds from disposal of non-current assets 14.1 0.9
Cash flow used in investing activities excluding investments in cash deposits and securities –133.3 –71.0
Financial investments in securities and promissory note loans –43.0 –55.7
Proceeds from disposal of securities and promissory note loans 50.6 35.5
Decrease in time deposits with a term of more than three months 9.6 184.5
Cash flow used in/from investing activities –116.1 93.3
Dividends paid to non-controlling interests 0.0 –1.2
Capital contributions for non-controlling interests 0.0 46.9
Cash inflow from long-term financial liabilities 2.0 200.1
Repayment of non-current financial liabilities –31.3 –26.4
Changes in current financial liabilities 84.8 175.6
Cash flow from financing activities 55.5 395.0
Change in cash and cash equivalents 19.9 614.2
Cash and cash equivalents as at January 1 461.0 448.8
Foreign currency translation effects on cash and cash equivalents –4.1 –1.8
Cash and cash equivalents as at March 31 476.8 1,061.2

Consolidated Statement of Changes in Equity (IFRS)

Issued capital Capital reserve
in € million
As at January 1, 2018 923.9 598.5
Foreign currency translation effects - -
Income and expenses from companies accounted for using the equity method directly recognized in equity - -
Fair value changes of financial assets available for sale - -
Fair value changes of derivatives - -
Other result - -
Group result - -
As at March 31, 2018 923.9 598.5
As at January 1, 2017 923.6 596.3
Foreign currency translation effects - -
Income and expenses from companies accounted for using the equity method directly recognized in equity - -
Fair value changes of financial assets available for sale - -
Fair value changes of derivatives - -
Other result - -
Distributions - -
Group result - -
Capital contributions Fraport Greece - -
Consolidation activities/other changes - -
As at March 31, 2017 923.6 596.3
Revenue reserves Foreign currency
reserve
Financial instruments Revenue reserves
(total)
Equity attributable to
shareholders of
Fraport AG
Non-controlling
interests
Shareholders'
equity (total)
2,285.6 11.4 48.7 2,345.7 3,868.1 160.6 4,028.7
- –12.3 - –12.3 –12.3 –1.6 –13.9
0.1 1.1 0.1 1.3 1.3 - 1.3
- - –3.7 –3.7 –3.7 - –3.7
- - 3.3 3.3 3.3 0.1 3.4
0.1 –11.2 –0.3 –11.4 –11.4 –1.5 –12.9
23.1 - - 23.1 23.1 –3.5 19.6
2,308.8 0.2 48.4 2,357.4 3,879.8 155.6 4,035.4
2,136.2 58.9 25.3 2,220.4 3,740.3 101.1 3,841.4
- –2.7 - –2.7 –2.7 –0.6 –3.3
- 0.1 1.5 1.6 1.6 - 1.6
- - 4.5 4.5 4.5 - 4.5
- - 4.8 4.8 4.8 - 4.8
- –2.6 10.8 8.2 8.2 –0.6 7.6
- - - - - –1.2 –1.2
18.1 - - 18.1 18.1 0.7 18.8
- - - - - 46.9 46.9
–1.0 - - –1.0 –1.0 –0.6 –1.6
2,153.3 56.3 36.1 2,245.7 3,765.6 146.3 3,911.9

Further information on the accounting and valuation methods used can be found in the most recent annual report at http://www.fraport.com/en/investor-relations/events-und-publications/publications.html.

Financial Calendar 2018

Traffic Calendar 2018 (Online publication)

May 2018 October 2018

June 2018/6M 2018 November 2018

Monday, August 13, 2018 Tuesday, January 15, 2019

Thursday, September 13, 2018 August 2018

Tuesday, May 29, 2018 Wednesday, August 8, 2018

Annual General Meeting 2018, Interim Report Q2/6M 2018, online publication, Frankfurt am Main, Jahrhunderthalle conference call with analysts and investors

Friday, June 1, 2018 Wednesday, November 7, 2018

Dividend payment Interim Release Q3/9M 2018, online publication, conference call with analysts and investors

Tuesday, May 15, 2018 Friday, October 12, 2018 April 2018 September 2018/9M 2018

Wednesday, June 13, 2018 Tuesday, November 13, 2018

Thursday, July 12, 2018 Thursday, December 13, 2018

July 2018 December 2018/FY 2018

Imprint

Publisher Design

60547 Frankfurt am Main Germany Editorial Deadline Telephone: +49 (0)1806 37246361) May 8, 2018 Website: www.fraport.com

1) 20 cents (€) per call from a German landline; Disclaimer

Contact Investor Relations the binding one.

Fraport AG Christoph Nanke Rounding Fax: + 49 69 690-74843 commercial rounding. Website: www.meet-ir.com E-Mail: [email protected]

Fraport AG Frankfurt Airport Services Worldwide The report was compiled with the system SmartNotes.

maximum 60 cents (€) per call from a German cell phone. In case of any uncertainties which arise due to errors in translation, the German version of the Interim Release is

Finance and Investor Relations The use of rounded amounts and percentages means Telephone: + 49 69 690-74840 slight discrepancies may occur due to commercial

Where the statements made in this document relate to the future rather than the past, they are based on a number of assumptions about future events and are subject to a number of uncertainties and other factors, many of which are beyond the control of Fraport AG Frankfurt Airport Services Worldwide and which could have the effect that the actual results will differ materially from these statements. These factors include, but are not limited to, the competitive environment in deregulated markets, regulatory changes, the success of business operations, and a substantial deterioration in the underlying economic conditions in the markets in which Fraport AG Frankfurt Airport Services Worldwide and its Group companies operate. Readers are cautioned not to rely to an inappropriately large extent on statements made about the future.

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