Quarterly Report • Nov 5, 2015
Quarterly Report
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January 1 to September 30, 2015
| Overview of Business Development | 2 |
|---|---|
| Situation of the Group | 3 |
| Changes during the Reporting Period | 3 |
| Economic Report | 3 |
| General Statement of the Executive Board | 3 |
| Economic and Industry-Specific Conditions | 3 |
| Significant Events | 4 |
| Business Development | 5 |
| Results of Operations | 7 |
| Asset and Financial Position | 12 |
| Value Management | 13 |
| Non-financial Performance Indicators | 14 |
| Employees | 15 |
| Research and Development | 15 |
| Share | 16 |
| Significant Events after the Balance Sheet Date | 18 |
| Outlook Report | 18 |
| General Statement of the Executive Board | 18 |
| Risk and Opportunities Report | 19 |
| Business Outlook | 19 |
Group Interim Financial Statements 22
| Responsibility Statement | 36 |
|---|---|
| Financial Calendar | 37 |
| Traffic Calendar | 37 |
| Imprint | 37 |
These Group interim financial statements have been prepared in accordance with IAS 34. As far as they apply to the Fraport Group, all official bulletins of the IASB as at January 1, 2015 have been taken into account. The Group Interim Report simultaneously meets the requirements of German Accounting Standard No. 16 (GAS 16) on interim financial reporting. Compared to the same period of the previous year, there were no significant changes to accounting and reporting standards for Fraport, meaning that the previous year's figures were not restated and no adjustment was made to the report structure.
The business development of the Fraport Group changed in comparison to the same period of the previous year primarily as a result of the inclusion of the Group company AMU Holdings Inc., which was acquired in August 2014, and the Group company Ljubljana, which was acquired in October 2014. The change particularly affects the development of the results of operations in the External Activities & Services segment in the reporting period. The resulting effects were already taken into account in the Outlook Report for the 2014 Group financial statements. Furthermore, Fraport sold its shares in the Group company Air-Transport IT Services, Inc., USA with effect as at April 22, 2015. The company, which was allocated to the External Activities & Services segment, generated revenue of €12.5 million and a net result of €0.6 million in the 2014 fiscal year. A gain on disposal of €8.0 million resulted from the sale.
Fraport also sold its 33.33% share in the capital of FSG Flughafen Service GmbH on September 21, 2015. The company, which was allocated to the External Activities & Services segment, generated revenue of €4.0 million and a net result of €0.1 million in the previous fiscal year. The deconsolidation of FSG has had no significant effect on the Group interim financial statements. In connection with the intention to sell shares in the Group company Fraport Cargo Services (FCS), the assets and liabilities of the company were furthermore reported as "held for sale" and measured at fair value in accordance with IFRS 5. The shares were sold on November 2, 2015. The effects of the disposal on the forecasted results of operations are presented within the section "Significant Events after the Balance Sheet Date" on page 18 of this report. There were no further significant changes in the companies included in consolidation nor any significant increases or reductions in shareholdings in the reporting period. A list of all the changes in the companies included in consolidation is set out in the notes to these interim financial statements.
An overview of the methods for calculating financial key figures and a description of specialist terms are presented in the glossary to the 2014 Annual Report.
The Executive Board published these Group interim financial statements and this Group interim management report on November 5, 2015.
3.6% passenger growth at the Frankfurt site.
Mixed performance at Group airports outside of Frankfurt.
Significant rise in Group revenue by 9.5% to €1,967.3 million due to traffic and price developments, new Group companies, and exchange rate effects.
Revenue adjusted by IFRIC 12 at €1,957.1 million (+9.4%).
Group EBITDA at €688.5 million, an increase of 10.8% against the previous year.
€41.9 million improvement in the Group result to €261.5 million.
Basic earnings per share at €2.64 (+€0.42).
€116.1 million increase in operating cash flow to €525.0 million.
Lower cash flow used in investing activities leads to improvement in free cash flow from €235.8 million to €389.4 million.
| 9M 2015 | 9M 2014 | Change | Change in % |
|---|---|---|---|
| 1,967.3 | 1,796.9 | 170.4 | 9.5 |
| 1,957.1 | 1,789.4 | 167.7 | 9.4 |
| 688.5 | 621.3 | 67.2 | 10.8 |
| 443.9 | 396.0 | 47.9 | 12.1 |
| 383.8 | 324.9 | 58.9 | 18.1 |
| 261.5 | 219.6 | 41.9 | 19.1 |
| 2.64 | 2.22 | 0.42 | 18.9 |
| 525.0 | 408.9 | 116.1 | 28.4 |
| 389.4 | 235.8 1) | 153.6 | 65.1 |
| 3,454.2 | 3,286.0 2) | 168.2 | 5.1 |
| 1,163.6 | 1,179.6 2) | –16.0 | –1.4 |
| 2,761.9 | 3,012.8 2) | –250.9 | –8.3 |
| 8,994.9 | 9,013.2 2) | –18.3 | –0.2 |
| 20,836 | 20,326 | 510 | 2.5 |
| Change in % | |||
| 725.4 | 674.5 | 50.9 | 7.5 |
| 722.4 | 672.0 | 50.4 | 7.5 |
| 303.5 | 267.1 | 36.4 | 13.6 |
| 222.0 | 190.3 | 31.7 | 16.7 |
| 231.6 | 195.8 | 35.8 | 18.3 |
| 158.5 | 127.9 | 30.6 | 23.9 |
| 1.58 | 1.26 | 0.32 | 25.4 |
| 248.4 | 203.0 | 45.4 | 22.4 |
| 199.7 | 128.2 1) | 71.5 | 55.8 |
| 21,125 | 20,617 | 508 | 2.5 |
| Q3 2015 | Q3 2014 | Change |
1) Value adjusted to new definition.
2) Value as at December 31, 2014.
Other than the adjustments to the parameters for calculating the value management set out in the Outlook Report of the 2014 Annual Report, there were no significant changes to the situation of the Fraport Group presented in the 2014 Group management report (see 2014 Annual Report: "Situation of the Group" beginning on page 30 and "Outlook Report" on page 91).
With regard to Group structure, the Executive Board set up a new service unit within Fraport AG on June 1, 2015. The "Airport Expansion South" unit is allocated to the External Activities & Services segment and brings together the activities related to the construction of Terminal 3 in Frankfurt. No significant changes for the Fraport Group have arisen from setting up this unit. In addition, the Executive Board renamed Fraport AG's "Facility Management" service unit "Integrated Facility Management" as at August 1, 2015. The unit was renamed due to a change in responsibilities.
In the first nine months of fiscal year 2015, passenger traffic developed positively at the Frankfurt site. Despite strike and weather-related cancellations, around 47.3 million passengers were transported, equivalent to an increase of 3.6%. At around 1.5 million metric tons, the cargo tonnage handled was 2.7% below the previous year's figure. Passenger development was mixed at Group airports outside of Frankfurt. Whereas the airports in Varna, Burgas, Antalya, and St. Petersburg saw decreases in traffic, passenger numbers increased at the other Group sites. The cause of the decrease in traffic at the first-mentioned sites was primarily the tense economic situation in Russia accompanied by the resulting depreciation of the Ruble and the curtailment in travel behavior.
At the Frankfurt site, the increase in airport and infrastructure charges in particular had a revenue-increasing effect in addition to higher passenger numbers. Compared to the same period of the previous year, net retail revenue improved by €0.22 per passenger to €3.49. Outside Frankfurt – in addition to the increase in traffic at the Lima site – higher revenue primarily resulted from the consolidation of the Group companies AMU Holdings Inc. and Ljubljana, which were acquired in the second half of 2014. There was also a positive effect from the translation of revenue from the Group company Lima, which was recognized in US\$, into the Group currency of the €. Adjusted for the recognition of earnings-neutral capacitive capital expenditure in the Group companies outside Frankfurt, Group revenue rose from €1,789.4 million to €1,957.1 million (+9.4%). Group EBITDA improved by 10.8% to €688.5 million and the Group result was €41.9 million above the previous year's figure at €261.5 million.
Due as well to the solid liquidity resources and the good performance of the operating and free cash flow, the Executive Board describes the Fraport Group's performance in the reporting period overall as positive.
The upturn in the global economy forecasted at the start of the fiscal year did not occur in the reporting period. The differing development of individual regions, which could already be observed in the previous year, further intensified in the past nine months. Whereas the economic development of most industrial countries was relatively robust, economic growth was weaker than expected in a number of emerging countries. In China in particular, signs of weakening development accumulated. Due to weak Chinese import demand, global trade was also below expectations in the year to date. The reasons for this included liquidity being withdrawn from countries that are particularly important sales markets for China or whose economy depends particularly heavily on commodity exports. As a result, various international currencies including the Russian Ruble and the Brazilian Real depreciated significantly against the US\$. China also significantly devalued the Renminbi against the US\$ for the first time in many years.
In the Euro zone, in contrast, the economic recovery stabilized. In an environment of decreased energy costs, low interest rates and a weak €, gross domestic product within the monetary union grew by 0.5% in the first quarter and 0.4% in the second quarter. There was no sign of a reversal of this trend for the third quarter.
The domestic economy remained the determining factor for the German economy's growth in the first half of the year. Private consumption was the cornerstone of a modest upturn. The first quarter saw economic growth of 0.3% and the second quarter of 0.4% (in each case in comparison to the previous quarter). In addition to increases in income, factors supporting economic growth included the low oil price and the devaluation of the €. In the third quarter, the expansion is likely to have continued at approximately the same pace as in the first half. Although growth in manufacturing was only modest, production in the services sectors more than compensated for this. Furthermore, retail revenue increased in the reporting period, which went hand in hand with service providers assessing the situation positively. The consensus of German economic research institutes is that gross domestic product rose 0.4% in the third quarter compared to the previous quarter.
| Changes compared to the previous year in % | Passengers January to August 2015 |
Air freight January to August 2015 |
|---|---|---|
| Germany (January to September) | 4.2 | –0.1 |
| Europe | 4.9 | 0.5 |
| North America | 5.1 | 3.5 |
| Latin America | 6.4 | 1.3 |
| Middle East | 11.4 | 6.3 |
| Asia/Pacific | 8.5 | 2.2 |
| Africa | 1.4 | 11.4 |
| World | 6.2 | 2.6 |
Source: ACI Passenger Flash and Freight Flash (ACI, October 14, 2015), ADV for Germany, with cargo instead of air freight (October 26, 2015). Table 2
During the reporting period, there were no changes to the legal environment that had a significant influence on the business development of the Fraport Group.
According to the preliminary figures from Airports Council International (ACI), global passenger traffic grew by 6.2% in the January to August 2015 period. In the same period, air freight volume rose by 2.6%. European airports achieved a slightly lower growth in passenger numbers of 4.9%. In air freight, the performance of the European airports at 0.5% was lower than the overall performance. Passenger numbers at German airports grew by 4.2% up to and including September 2015. Cargo tonnage (air freight and air mail) stagnated at –0.1% and, like passenger traffic, remained below the global level.
In early March, the Hesse state government presented the results of the quality audit of the expert reports published by Fraport on future capacity requirements at Frankfurt Airport. Essentially, the results of the review confirm the statements in the expert traffic reports presented by Fraport in September 2014. These forecast that passenger numbers at Frankfurt Airport will rise to between 68 and 73 million passengers by 2021, meaning that the airport's current terminal capacity of 64 million passengers will be significantly exceeded by 2021.
On April 14, 2015, after detailed analysis of the audit reports, the Fraport Supervisory Board confirmed its decision to implement the planned Terminal 3 in the southern part of the airport. Following the Europe-wide invitation to tender for the first phase of the excavation work, Fraport celebrated the ground-breaking ceremony for Terminal 3 on October 5, 2015. Construction time for the terminal, including test phases, is scheduled to be a good seven years, meaning the new terminal is expected to be inaugurated in 2022.
Fraport sold its shares in the Group company Air-Transport IT Services, Inc., USA for a price of US\$13.0 million with effect as at April 22, 2015. The company was allocated to the External Activities & Services segment and generated revenue of €12.5 million and a net result of €0.6 million in the previous fiscal year. A gain on disposal of €8.0 million resulted from the sale of Air-Transport IT Services.
On June 12, 2015, Fraport consulted on the intended adjustment of airport charges for the Frankfurt site in an average amount of 1.9% for 2016. On July 1, 2015, the corresponding charge proposal was submitted to the competent authority, the Hessian Ministry of Economics, Energy, Transport and Regional Development (HMWEVL), for approval. The airport charges serve to refinance the chargeable costs and to finance ongoing capital expenditure, and are essential to the Aviation segment's revenue performance.
Due to differences of opinion between Fraport and the HMWEVL with regard to the calculation of significant cost items in calculating the airport charges, on October 29, 2015, Fraport withdrew the application made for an increase in airport charges for the 2016 fiscal year. Further information regarding this topic is provided within the section "Significant Events after the Balance Sheet Date" on page 18 of this report.
On July 7, 2015, Fraport concluded a strategic partnership with Worldwide Flight Services (WFS) in the area of freight handling at the Frankfurt site. As part of this agreement, Fraport aimed to sell 51% of the capital shares in the Group company FCS. Due to the intention to sell shares, the assets and liabilities of FCS were recognized in this report as "held for sale" in accordance with IFRS 5 and were measured at fair value. FCS generated revenue of €59.6 million and a net result of –€6.3 million in the 2014 fiscal year.
On November 2, 2015, Fraport completed the sale of capital shares to WFS. Further information regarding to this topic is provided within the section "Significant Events after the Balance Sheet Date" on page 18 of this report.
During the reporting period, there were no further events that had a significant influence on the business development of the Fraport Group.
The stable growth of private consumption led to a pleasing increase in passenger demand in the year to date. At almost 47.3 million passengers, the highest passenger numbers in the first nine months of a fiscal year to date were achieved. The numbers for the previous year were exceeded by around 1.7 million passengers (+3.6%). Without strike and weather-related cancellations, growth would have been 4.2%. Despite cancellations, new peaks were achieved in the months of March to August. At around 6.3 million passengers, August saw more passengers than in any previous month.
In the first nine months of 2015, intercontinental traffic (+3.5%), among others, provided growth in passenger numbers. The key driver was Asian traffic. In the Far East, the highest volume markets of China, India, Japan, and Korea saw double-digit increases in most cases. Middle Eastern traffic benefited from Dubai's growing hub function. However, African traffic saw an increasing reduction. After the attacks, the traffic with Tunisia initially fell and demand for Egyptian destinations also subsequently reduced. European traffic (without Germany) achieved growth of 3.5% in the reporting period; traffic to and from Eastern Europe increased relatively strongly by 3.8%. High-volume passenger traffic with Western Europe (42.6% of the total market) increased by 3.4% in the first nine months. Domestic traffic increased the most dynamically at +5.1%. Traffic within Germany benefited from the general market trend and a significantly lower number of cancellations in comparison to the previous year.
In the first nine months, cargo volume fell by 2.7 % to around 1.5 million metric tons. In particular, cargo throughput on routes to Far East at the Frankfurt site was significantly below the level of the previous year.
Due to the strike-related cancellations in the reporting period and the continuing trend towards using larger aircraft, there was a weak increase in aircraft movements of 0.4% to around 358 thousand in the first nine months. In contrast, the maximum take-off weights increased significantly and reached a new record of almost 22.5 million metric tons (+2.8%).
At Ljubljana Airport, passenger numbers in the first nine months of 2015 were 10.8% higher than the previous year at just over 1.1 million. While there were more passengers on routes to and from Belgrade and Zurich, passenger numbers fell on routes to and from Moscow.
At Lima Airport, the number of passengers in the reporting period increased significantly by 8.9% to around 12.6 million. Both domestic traffic (+11.2%) and international traffic (+6.1%) grew significantly. At around 213 thousand metric tons, cargo throughput was around the same as the previous year.
The Bulgarian airports in Varna and Burgas carried almost 3.6 million passengers in the first nine months and thus 4.6% fewer than in the previous year. It was primarily passengers from Russia and Belarus who were no longer using the two sites. Traffic to and from Sofia also decreased.
In the first nine months of 2015, around 23.0 million passengers meant a 1.7% decrease at Antalya Airport. Whereas the number of Turkish domestic passengers again rose significantly by 15.7% to almost 4.9 million, the number of international passengers decreased by 5.5% to around 18.1 million. The cause of the decrease was primarily fewer travelers from Russia.
At just under 10.9 million travelers, passenger traffic at St. Petersburg Airport saw a decrease of 3.8% in the reporting period compared with the previous year. Whereas international traffic significantly decreased by 19.9%, national traffic increased 12.7%.
Around 4.2 million passengers meant growth of 4.1% in the first nine months of the fiscal year for the Hanover site. There was, in particular, a positive trend in tourism traffic.
Xi'an Airport continued to show a dynamic performance as passenger numbers increased by 13.4% to almost 24.8 million. High-volume domestic traffic rose by 10.9% to around 23.1 million passengers. International traffic grew by 66.7% to just under 1.7 million passengers.
Delhi Airport, in which Fraport holds a 10 % stake and which is recognized in the asset, financial, and earnings position as an "other investment", achieved significant growth of 14.3 % in the reporting period compared to the previous year with around 33.5 million travelers. Significant growth continued to be reported in domestic traffic, with a strong increase of 19.6%. International passenger numbers increased by 3.7 %. Freight also significantly increased again (+10.7%).
| Airport 1) | Fraport share in % |
Passengers 2) Cargo (air freight and air mail in m. t.) | Movements | |||||
|---|---|---|---|---|---|---|---|---|
| 9M 2015 | Change in % | 9M 2015 | Change in % | 9M 2015 | Change in % | |||
| Frankfurt | 100 | 47,280,714 | 3.6 | 1,532,230 | –2.7 | 358,299 | 0.4 | |
| Ljubljana | 100 | 1,135,578 | 10.8 | 7,408 | 1.9 | 25,423 | 4.1 | |
| Lima | 70.01 | 12,614,729 | 8.9 | 213,054 | 0.0 | 122,502 | 6.5 | |
| Burgas | 60.00 | 2,305,592 | –6.9 | 7,811 | >100 | 17,226 | –5.5 | |
| Varna | 60.00 | 1,285,666 | –0.1 | 73 | 29.9 | 10,575 | –2.8 | |
| Antalya | 51.00/50.00 3) | 22,984,012 | –1.7 | n.a. | n.a. | 140,279 | –2.3 | |
| St. Petersburg | 35.50 | 10,851,040 | –3.8 | n.a. | n.a. | 108,257 | –4.0 | |
| Hanover | 30.00 | 4,183,558 | 4.1 | 12,637 | 18.2 | 57,851 | –1.4 | |
| Xi'an | 24.50 | 24,775,556 | 13.4 | 154,328 | 14.7 | 199,823 | 8.7 | |
| Delhi | 10.00 | 33,450,208 | 14.3 | 575,023 | 12.3 | 253,659 | 4.3 |
| Airport 1) | Fraport share in % |
Passengers 2) Cargo (air freight and air mail in m. t.) | Movements | ||||
|---|---|---|---|---|---|---|---|
| Q3 2015 | Change in % | Q3 2015 | Change in % | Q3 2015 | Change in % | ||
| Frankfurt | 100 | 18,357,852 | 2.9 | 511,117 | –3.9 | 128,717 | 0.6 |
| Ljubljana | 100 | 509,053 | 12.2 | 2,618 | 7.8 | 9,913 | 10.4 |
| Lima | 70.01 | 4,557,370 | 9.1 | 82,121 | –0.4 | 43,995 | 8.6 |
| Burgas | 60.00 | 1,759,188 | –2.8 | 2,622 | >100 | 12,163 | –2.5 |
| Varna | 60.00 | 883,551 | 2.0 | 27 | –19.4 | 6,541 | –1.3 |
| Antalya | 51.00/50.00 3) | 12,440,301 | 0.5 | n.a. | n.a. | 71,175 | 0.3 |
| St. Petersburg | 35.50 | 4,761,078 | –3.1 | n.a. | n.a. | 41,176 | –6.2 |
| Hanover | 30.00 | 1,725,340 | 2.5 | 4,025 | 20.3 | 21,710 | 0.1 |
| Xi'an | 24.50 | 9,025,772 | 10.3 | 58,428 | 21.7 | 71,865 | 6.0 |
| Delhi | 10.00 | 11,306,537 | 16.4 | 202,837 | 7.9 | 89,250 | 5.6 |
| 1) In addition, Fraport holds 100% of the shares in the operating company of the new Dakar Airport which is currently under construction. | Table 3 |
1) In addition, Fraport holds 100% of the shares in the operating company of the new Dakar Airport which is currently under construction.
2) Commercial traffic only, in + out + transit.
3) Voting rights: 51%, Dividend share: 50%.
In the first nine months of fiscal year 2015, the Fraport Group generated revenue of €1,967.3 million. Compared with the same period of the previous year, this was equivalent to an increase of €170.4 million, or 9.5%. Adjusted for the recognition of earnings-neutral capacitive capital expenditure in the Group companies outside Frankfurt in connection with the application of IFRIC 12, revenue of €1,957.1 million was €167.7 million (+9.4%) higher than the corresponding figure for the previous year.
At the Frankfurt site, higher passenger numbers and the increase in airport and infrastructure charges in particular contributed to the rise in revenue. Compared to the same period of the previous year, net retail revenue also increased from €3.27 per passenger to €3.49 (+6.7%). The reason for this was principally the increase in the number of intercontinental passengers, who exhibit above average spending behavior in retail businesses. Outside Frankfurt – in addition to the increase in traffic at the Lima site – higher revenue primarily resulted from the new Group companies AMU Holdings Inc. (consolidated for the first time in August 2014, additional revenue of €35.9 million in the reporting period) and Ljubljana (consolidated for the first time in October 2014, additional revenue of €26.7 million in the reporting period). There were further positive effects from the translation of revenue from the Group company Lima, which was recognized in US\$, into the Group currency of the €. The Group company Twin Star saw a decline in its performance, generating lower revenue due to a decrease in traffic.
Despite lower releases of provisions, other operating income was €1.6 million higher than the figure for the previous year at €30.1 million (+5.6%). The reason for the increase was primarily the €8.0 million gain on disposal from the sale of the Group company Air-Transport IT Services. Other internal work capitalized increased by €1.7 million to €21.2 million (+8.7%) in part due to growth in the Aviation segment.
At €2,019.3 million, total revenue grew by €173.9 million compared to the previous year (+9.4%). When adjusted for the application of IFRIC 12, at €2,009.1 million, this was €171.2 million above the corresponding figure for the previous year (+9.3%).
The cost of materials rose in the reporting period from €383.1 million to €442.2 million (+15.4%). This increased by €28.1 million in the Group company Lima particularly for reasons relating to currency and traffic volumes. The Group companies AMU Holdings Inc. and Ljubljana, which were acquired in the previous year, increased the cost of materials by a further €22.0 million and €4.7 million, respectively. Adjusted for the recognition of capacitive capital expenditure in Group companies outside Frankfurt, the cost of materials was €432.0 million and was thus €56.4 million above the adjusted figure for the previous year (+15.0%).
At €768.3 million, personnel expenses were €41.0 million higher than the previous year's level of €727.3 million (+5.6%). The increase in expenses was particularly due to collective wage agreements in the public sector and security business, and to the new Group companies Ljubljana (+€8.1 million) and AMU Holdings Inc. (+€1.9 million). The currency translation of the Group company Lima also led to an increase in personnel expenses.
Other operating expenses increased from €113.7 million to €120.3 million (+5.8%) primarily due to the new Group companies AMU Holdings Inc. (+€4.1 million) and Ljubljana (+€3.0 million) and due to exchange rate effects in the Group company Lima. This was countered by, among other things, the sale of the Group company Air-Transport IT Services, which had higher other operating expenses in the previous year.
The significant improvement in total revenue of €173.9 million and a €106.7 million increase in operating expenses led to a €67.2 million increase in Group EBITDA to €688.5 million (+10.8%). Based on revenue, the EBITDA margin thus improved by 0.4 percentage points to 35.0%. Adjusted for the revenue and expenses from the recognition of capacitive capital expenditure in connection with the application of IFRIC 12, the EBITDA margin rose from 34.7% to 35.2% in the reporting period (+0.5 percentage points).
Depreciation and amortization of €244.6 million (+8.6% compared to the previous year) resulted in Group EBIT of €443.9 million. Compared to the previous year, depreciation and amortization primarily increased due to the new Group companies Ljubljana (+€7.5 million) and AMU Holdings Inc. (+€5.1 million). Group EBIT grew by €47.9 million or 12.1% compared to the previous year due to the improvement in EBITDA.
The financial result improved in the reporting period from –€71.1 million in the previous year to –€60.1 million (+€11.0 million). The reasons for the positive performance were a better interest result and other financial result. While the interest result improved, mainly due to lower compounded interest expenses from provisions, the other financial result improved – despite unrealized foreign currency exchange losses from the fair value measurement of a CHF loan – mainly as a result of changes in the fair value of derivatives. The reduction in traffic at the Antalya site was reflected in the first nine months in a decrease in the result from companies accounted for using the equity method. The capitalization of interest expenses relating to construction work of €11.6 million reduced interest expenses (9M 2014: €11.3 million).
The increase in Group EBIT and the improvement of the financial result led to a significant increase in Group EBT. At €383.8 million, Group EBT exceeded the figure of the previous year by €58.9 million (+18.1%). At a tax rate of 31.9% (9M 2014: 32.4%), the Group result also increased significantly by €41.9 million compared with the previous year to €261.5 million (+19.1%). Basic earnings per share reached a figure of €2.64 as at the end of the nine-months period and were thus €0.42 higher than the figure for the previous year (+18.9%).
| € million | 9M 2015 | 9M 2014 | Change | Change in % |
|---|---|---|---|---|
| Revenue | 706.9 | 673.4 | 33.5 | 5.0 |
| Personnel expenses | 234.1 | 222.9 | 11.2 | 5.0 |
| EBITDA | 201.7 | 197.7 | 4.0 | 2.0 |
| EBITDA margin | 28.5% | 29.4% | –0.9 PP | – |
| EBIT | 111.9 | 109.9 | 2.0 | 1.8 |
| Average number of employees |
6,019 | 6,070 | –51 | –0.8 |
| € million | Q3 2015 | Q3 2014 | Change | Change in % |
| Revenue | 262.9 | 255.0 | 7.9 | 3.1 |
| Personnel expenses | 75.8 | 74.5 | 1.3 | 1.7 |
| EBITDA | 99.3 | 93.3 | 6.0 | 6.4 |
| EBITDA margin | 37.8% | 36.6% | 1.2 PP | – |
| EBIT | 69.0 | 63.8 | 5.2 | 8.2 |
| Average number of employees |
6,067 | 6,048 | 19 | 0.3 |
| in % | € million | 9M 2015 | 9M 2014 | Change | Change in % |
|---|---|---|---|---|---|
| Revenue | 356.8 | 334.9 | 21.9 | 6.5 | |
| Personnel expenses | 36.3 | 35.3 | 1.0 | 2.8 | |
| EBITDA | 286.1 | 264.1 | 22.0 | 8.3 | |
| EBITDA margin | 80.2% | 78.9% | 1.3 PP | – | |
| EBIT | 223.7 | 202.0 | 21.7 | 10.7 | |
| Average number of employees |
619 | 615 | 4 | 0.7 | |
| in % | € million | Q3 2015 | Q3 2014 | Change | Change in % |
| Revenue | 123.7 | 116.2 | 7.5 | 6.5 | |
| Personnel expenses | 11.6 | 11.4 | 0.2 | 1.8 | |
| EBITDA | 102.2 | 91.8 | 10.4 | 11.3 | |
| EBITDA margin | 82.6% | 79.0% | 3.6 PP | – | |
| EBIT | 81.1 | 70.9 | 10.2 | 14.4 | |
| Average number of employees |
624 | 607 | 17 | 2.8 | |
| Table 4 | Table 5 |
In the first nine months of the 2015 fiscal year, revenue in the Aviation segment increased from €673.4 million to €706.9 million (+5.0%). The key reasons for the higher revenue were passenger growth at the Frankfurt site and the increase in airport charges by an average of 2.9% as at January 1, 2015. Security services also increased significantly in comparison to the first nine months of 2014, rising €7.5 million (+9.1%). Despite an increase in revenue of €33.5 million, segment EBITDA only improved by €4.0 million to €201.7 million (+2.0%). The cause of the disproportionately low increase was in particular lower other operating income, increased personnel expenses and higher non-staff costs (cost of materials and other operating expenses). Other operating income largely fell due to higher releases of provisions in the previous year. Personnel expenses rose primarily as a result of collective wage agreements in the security business and public sector. It was higher non-capitalizable expenses relating to capital expenditure and the creation of provisions, among others, that led to an increase in non-staff costs. Additional expenses also resulted from temporary measures to increase customer satisfaction at the Frankfurt site.
Depreciation and amortization increased slightly by €2.0 million to €89.8 million (+2.3%) in the reporting period. The segment EBIT was thus €2.0 million higher than the figure for the previous year at the end of the third quarter at €111.9 million (+1.8%).
The revenue of the Retail & Real Estate segment improved significantly in the reporting period from €334.9 million in the previous year to €356.8 million (+6.5%). The €21.9 million growth in revenue was particularly due to the higher passenger numbers in Frankfurt, and here primarily due to the increase in the number of intercontinental passengers, who show above-average spending behavior in retail businesses. The devaluation of the € against many international currencies continued to have a positive effect. "Net retail revenue per passenger" increased in the first nine months of the fiscal year from €3.27 in the previous year to €3.49 (+6.7%).
Despite a slight increase in operating expenses, segment EBITDA improved in line with revenue in the reporting period, increasing by €22.0 million to €286.1 million (+8.3%). The reason for the parallel development at increased expenses was higher other income that resulted from a release of a provision in the reporting period. Nearly flat depreciation and amortization led to a segment EBIT of €223.7 million. Compared with the previous year, this corresponded to growth of €21.7 million, or 10.7%.
| 9M 2015 | 9M 2014 | Change | Change in % |
|---|---|---|---|
| 517.8 | 496.0 | 21.8 | 4.4 |
| 325.7 | 309.1 | 16.6 | 5.4 |
| 40.5 | 35.2 | 5.3 | 15.1 |
| 7.8% | 7.1% | 0.7 PP | – |
| 9.7 | 7.2 | 2.5 | 34.7 |
| 9,297 | 8,954 | 343 | 3.8 |
| Q3 2015 | Q3 2014 | Change | Change in % |
| 184.8 | 178.5 | 6.3 | 3.5 |
| 104.8 | 100.6 | 4.2 | 4.2 |
| 27.9 | 24.0 | 3.9 | 16.2 |
| 15.1% | 13.4% | 1.7 PP | – |
| 18.3 | 14.5 | 3.8 | 26.2 |
| 385 | 4.4 | ||
| 9,206 8,821 |
| in % | € million | 9M 2015 | 9M 2014 | Change | Change in % |
|---|---|---|---|---|---|
| Revenue | 385.8 | 292.6 | 93.2 | 31.9 | |
| Personnel expenses | 172.2 | 160.0 | 12.2 | 7.6 | |
| EBITDA | 160.2 | 124.3 | 35.9 | 28.9 | |
| EBITDA margin | 41.5% | 42.5% | –0.9 PP | – | |
| EBIT | 98.6 | 76.9 | 21.7 | 28.2 | |
| Average number of employees |
4,901 | 4,687 | 214 | 4.6 | |
| in % | € million | Q3 2015 | Q3 2014 | Change | Change in % |
| Revenue | 154.0 | 124.8 | 29.2 | 23.4 | |
| Personnel expenses | 54.3 | 53.0 | 1.3 | 2.5 | |
| EBITDA | 74.1 | 58.0 | 16.1 | 27.8 | |
| EBITDA margin | 48.1% | 46.5% | 1.6 PP | – | |
| EBIT | 53.6 | 41.1 | 12.5 | 30.4 | |
| Average number of employees |
5,228 | 5,141 | 87 | 1.7 | |
| Table 6 | Table 7 |
The higher passenger numbers, the increase in maximum take-off weights, and the increase in infrastructure charges led to a growth in revenue of 4.4% to €517.8 million (+€21.8 million) in the Ground Handling segment in the first nine months of 2015. On the expense side, a traffic-volume-related increase in personnel numbers and the collective wage agreement in the public sector noticeably increased personnel expenses in the reporting period from €309.1 million to €325.7 million (+5.4%).
Despite the higher personnel expenses and lower other operating income, which largely resulted from releases of provisions in the previous year, segment EBITDA improved from €35.2 million to €40.5 million (+15.1%) owing to the increase in revenue. Higher depreciation and amortization led to a segment EBIT of €9.7 million. Compared with the previous year, this meant an improvement of €2.5 million (+34.7%).
The External Activities & Services segment reported a significant increase in revenue of €93.2 million to €385.8 million (+31.9%) in the first nine months of 2015. Adjusted for the recognition of earningsneutral capacitive capital expenditure in connection with the application of IFRIC 12, revenue in the reporting period rose from €285.1 million in the previous year to €375.6 million (+31.7 %). In addition to the increase in traffic at the Lima site, higher revenue of €62.6 million resulted from the new Group companies AMU Holdings Inc. (consolidated for the first time in August 2014, additional revenue of €35.9 million in the reporting period) and Ljubljana (consolidated for the first time in October 2014, additional revenue of €26.7 million in the reporting period). There were further positive effects from the translation of revenue from the Group company Lima, which was recognized in US\$, into the Group currency of the €. The Group company Twin Star, however, saw a decline in its performance, generating lower revenue due to a decrease in traffic.
Operating expenses rose dispoportionally less compared to revenue despite the new Group companies and currency and trafficvolume-related effects in the Group company Lima. Segment EBITDA also improved significantly from €124.3 million to €160.2 million in the reporting period due to the €8.0 million gain from the disposal of the Group company Air-Transport IT Services. The increase in depreciation and amortization, which primarily resulted from the new Group companies Ljubljana (+€7.5 million) and AMU Holdings Inc. (+€5.1 million), led to a segment EBIT of €98.6 million. Compared with the previous year, this meant an increase of €21.7 million, or 28.2%.
The business figures of the key Group companies outside of Frankfurt are shown at 100% in the following.
| Fully consolidated Group companies |
Share in % |
Revenue in € million 1) | EBITDA in € million | EBIT in € million | Result in € million | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 9M 2015 | 9M 2014 | Δ % | 9M 2015 | 9M 2014 | Δ % | 9M 2015 | 9M 2014 | Δ % | 9M 2015 | 9M 2014 | Δ % | ||
| AMU Holdings Inc. 2) | 100 | 44.3 | 8.4 | >100 | 10.0 | 1.9 | >100 | 3.8 | 0.8 | >100 | 3.5 | 0.5 | >100 |
| Ljubljana 2) | 100 | 26.7 | – | – | 10.9 | – | – | 3.4 | – | – | 2.9 | – | – |
| Lima | 70.01 | 203.6 | 155.5 | 30.9 | 74.4 | 56.8 | 31.0 | 61.2 | 45.9 | 33.3 | 32.7 | 22.3 | 46.6 |
| Twin Star | 60 | 49.5 | 55.0 | –10.0 | 32.2 | 35.2 | –8.5 | 23.8 | 26.7 | –10.9 | 17.1 | 19.2 | –10.9 |
| Group companies accounted for using the equity method |
Share in % |
Revenue in € million 1) | EBITDA in € million | EBIT in € million | Result in € million | ||||||||
| 9M 2015 | 9M 2014 | Δ % | 9M 2015 | 9M 2014 | Δ % | 9M 2015 | 9M 2014 | Δ % | 9M 2015 | 9M 2014 | Δ % | ||
| Antalya 3) | 51/50 | 250.3 | 272.2 | –8.0 | 217.1 | 240.7 | –9.8 | 143.8 | 166.7 | –13.7 | 66.9 | 85.1 | –21.4 |
| Pulkovo/Thalita | 35.5 | 180.8 | 272.3 | –33.6 | 101.1 | 87.5 | 15.5 | 72.1 | 55.8 | 29.2 | 25.1 | –79.5 | >100 |
| Hanover | 30 | 111.1 | 107.5 | 3.3 | 23.0 | 21.8 | 5.5 | 8.0 | 7.0 | 14.3 | 4.3 | 1.7 | >100 |
| Xi'an 4) | 24.5 | 143.1 | 105.8 | 35.3 | 67.8 | 46.5 | 45.8 | 32.2 | 19.8 | 62.6 | 19.3 | 13.1 | 47.3 |
| Fully consolidated Group companies |
Share in % |
Revenue in € million 1) | EBITDA in € million | EBIT in € million | Result in € million | ||||||||
| Q3 2015 | Q3 2014 | Δ % | Q3 2015 | Q3 2014 | Δ % | Q3 2015 | Q3 2014 | Δ % | Q3 2015 | Q3 2014 | Δ % | ||
| AMU Holdings Inc. 2) | 100 | 15.6 | 8.4 | 85.7 | 3.7 | 1.9 | 94.7 | 1.6 | 0.8 | 100.0 | 1.3 | 0.5 | >100 |
| Ljubljana 2) | 100 | 10.7 | – | – | 5.3 | – | – | 2.8 | – | – | 2.3 | – | – |
| Lima | 70.01 | 72.3 | 55.8 | 29.6 | 27.0 | 20.6 | 31.1 | 22.7 | 16.8 | 35.1 | 13.0 | 9.4 | 38.3 |
| Twin Star | 60 | 36.1 | 39.4 | –8.4 | 26.4 | 28.0 | –5.7 | 23.7 | 25.2 | –6.0 | 20.4 | 21.4 | –4.7 |
| Group companies accounted for using the equity method |
Share in % |
Revenue in € million 1) | EBITDA in € million | EBIT in € million | Result in € million | ||||||||
| Q3 2015 | Q3 2014 | Δ % | Q3 2015 | Q3 2014 | Δ % | Q3 2015 | Q3 2014 | Δ % | Q3 2015 | Q3 2014 | Δ % | ||
| Antalya 3) | 51/50 | 142.6 | 154.0 | –7.4 | 130.0 | 142.0 | –8.5 | 105.6 | 117.2 | –9.9 | 66.1 | 77.3 | –14.5 |
| Pulkovo/Thalita | 35.5 | 66.3 | 130.6 | –49.2 | 45.6 | 47.6 | –4.2 | 36.6 | 36.4 | 0.5 | –46.9 | –49.6 | – |
| Hanover | 30 | 41.4 | 40.7 | 1.7 | 11.0 | 11.1 | –0.9 | 6.0 | 6.3 | –4.8 | 4.8 | 4.0 | 20.0 |
| Xi'an 4) | 24.5 | 51.1 | 38.2 | 33.8 | 23.9 | 18.4 | 29.9 | 11.6 | 9.6 | 20.8 | 7.5 | 6.1 | 23.0 |
1) Revenue adjusted by IFRIC 12: Lima 9M 2015: €193.6 million (9M 2014: €149.1 million), Q3 2015: €69.4 million (Q3 2014: €54.1 million); Twin Star 9M 2015: €49.3 million (9M 2014: €53.8 million), Q3 2015: €36.0 million (Q3 2014: €38.5 million); Table 8
Pulkovo/Thalita 9M 2015: €165.6 million (9M 2014: €189.4 million), Q3 2015: €64.9 million (Q3 2014: €80.3 million).
2) AMU Holdings Inc. incorporated since August 2014 and Ljubljana incorporated since October 2014 into the Fraport Group.
3) Voting rights: 51%, dividend share: 50%.
4) Figures according to the separate financial statements.
In the first nine months of the 2015 fiscal year, AMU Holdings Inc., which has been consolidated in the Fraport Group since August 2014, generated revenue of €44.3 million, EBITDA of €10.0 million, EBIT of €3.8 million and a result of €3.5 million. Whereas the appreciation of the US\$ had a negative impact on the purchasing power of international passengers in the USA in the reporting period, this appreciation also led to an increase in the consolidated result of the company in €.
With rising passenger numbers, the Group company Ljubljana, which has been included in the consolidation of the Fraport Group since October 2014, reported revenue of €26.7 million, EBITDA of €10.9 million, EBIT of €3.4 million and a result of €2.9 million in the reporting period. Due to the late incorporation of the Group company in the previous year, no comparable figures exist.
Helped by good traffic development and a positive exchange rate effect from the translation of the US\$, the Lima Group company achieved strong growth in revenue, EBITDA, EBIT, and the result in the first nine months of 2015 with growth of €48.1 million, €17.6 million, €15.3 million, and €10.4 million respectively. The exchange rate effect increased revenue by around €36.2 million, EBITDA by around €13.2 million, EBIT by approximately €10.9 million, and the result by around €5.8 million.
Due to the decrease in passenger numbers, the Group company Twin Star reported a decrease in revenue, EBITDA, EBIT, and the result in the reporting period. With a €5.5 million decrease in revenue (decrease without IFRIC 12 effect: €4.5 million), the Group company's EBITDA decreased by €3.0 million. Lower expenses were linked, among other things, with decreases in revenue-related concession payments and a traffic-volume-related lower headcount. Almost flat depreciation and amortization and an improvement in the financial result led to a €2.1 million decrease in the result to €17.1 million.
Primarily caused by lower passenger numbers in international traffic, there was a decrease in revenue, EBITDA, and EBIT at the Group company Antalya, which is accounted for using the equity method, in the first nine months of 2015. In addition to a decrease in airport charges, the revenue from the retail business was also below the previous year. The reason for this was in particular a decrease in the number of passengers from Russia, who were previously very heavy consumers in Antalya. The Group company's result of €66.9 million was €18.2 million lower than the previous year's figure (–21.4%).
Adjusted for the recognition of earnings-neutral capacitive capital expenditure in connection with the application of IFRIC 12 on the revenue side, the Group company Pulkovo/Thalita, which is accounted for using the equity method, showed a decrease in revenue from €189.4 million to €165.6 million (–12.6%) in the reporting period due to exchange rate effects. The Group company's EBITDA of €101.1 million (+€13.6 million), EBIT of €72.1 million (+€16.3 million), and result of €25.1 million (+€104.6 million) significantly exceeded the figures for the previous year. While currency translation of financial liabilities had a significant negative impact of –€79.2 million on the previous year's financial result, currency translation had a positive effect of €30.9 million in the reporting period.
The increase in traffic at the Hanover Group company, which is accounted for using the equity method, led to an improvement in revenue, EBITDA, EBIT, and the result in the reporting period. At €4.3 million, the result of the company – in which Fraport holds a 30% stake – exceeded the figure for the same period of the previous year by €2.6 million.
The financial performance of the Group company Xi'an, which is accounted for using the equity method, reflected the positive development of traffic in the first nine months of 2015. The revenue, EBITDA, and EBIT of the company significantly improved compared to the figures for the previous year. At €19.3 million, the result grew by €6.2 million (+47.3%). In addition to the increase in traffic, the translation of the Chinese currency into the Group currency the € also had the effect of increasing the result.
In comparison to the 2014 balance sheet date, the Fraport Group's total assets declined slightly as at September 30, 2015 from €9,013.2 million to €8,994.9 million (–0.2%). The reason for the slight decrease was lower non-current assets and non-current liabilities.
Non-current assets decreased by 1.9% in comparison to December 31, 2014 from €8,081.8 million to €7,929.2 million. The reason for the decrease was largely reclassifications of non-current "other financial assets" to current "other financial assets" on the grounds of maturity. The decrease in "property, plant, and equipment" was primarily due to scheduled depreciation and amortization. Current assets rose in the reporting period from €931.9 million to €1,065.7 million (+14.4%). While cash and cash equivalents increased from €401.1 million to €478.2 million (+19.2%) mainly due to the positive development of the free cash flow in the reporting period, the "trade accounts receivable" item increased largely due to the balance sheet date. The increase in the "other receivables and financial assets" item from €297.6 million to €314.1 million (+5.5%) was, among other things, due to the aforementioned reclassifications on the grounds of maturity and the additions and disposals of current financial assets. The item "non-current assets held for sale" as at September 30, 2015 was linked to the intention to sell 51% of the capital shares in the Group company FCS (see "Significant Events" on page 5).
Despite the pay-out of the profit earmarked for distribution for the previous fiscal year, shareholders' equity in the reporting period increased from €3,286.0 million to €3,454.2 million (+5.1%). The rise was primarily due to the positive Group result. After deducting "non-controlling interests", the shareholders' equity ratio was 37.6% as at September 30, 2015 and was thus 3.2 percentage points higher than the figure as at December 31, 2014 (+34.4%).
At €4,428.2 million, non-current liabilities were €479.9 million below the figure as at the 2014 balance sheet date (–9.8%). The main reason for the lower figure was a decrease of €447.0 million in non-current financial liabilities, which were reclassified to current financial liabilities due to their remaining term. Current liabilities increased from €819.1 million to €1,112.5 million (+35.8 %). The reason for the increase was particularly a rise in current financial liabilities. While the reclassifications on grounds of maturity led to an increase in the item, repayments reduced it.
At €3,925.5 million as at September 30, 2015, gross debt was €266.9 million below its level as at December 31, 2014 (–6.4%). After deducting the Group's liquidity of €1,163.6 million (December 31, 2014: €1,179.6 million), the net financial debt of €2,761.9 million was 8.3% lower in comparison with the 2014 balance sheet date (December 31, 2014: €3,012.8 million). The gearing ratio reached a level of 81.7% (December 31, 2014: 97.3%).
In the first nine months of fiscal year 2015, additions to non-current assets of the Fraport Group amounted to €276.9 million and were thus €64.0 million lower than the comparable figure for the previous year (9M 2014 figure excluding company acquisitions: €340.9 million). Of this amount, €139.9 million was attributed to "property, plant, and equipment" (9M 2014: €209.3 million), €113.4 million to "financial assets" (9M 2014: €114.7 million), €7.9 million to "investment property" (9M 2014: €4.4 million), and €15.7 million to "other intangible assets" and "airport operating projects" (9M 2014: €12.5 million). The capitalization of interest expenses relating to construction work amounted to €11.6 million (9M 2014: €11.3 million).
At €143.5 million, the greater part of additions related to Fraport AG (9M 2014: €204.3 million). Capital expenditure on the infrastructure portfolio as well as preparations for Terminal 3 formed the focus here. Additions to the financial assets resulted primarily from securities and the positive contribution of the Antalya Group company, which is accounted for using the equity method.
In the first nine months of 2015, the Fraport Group generated cash flow from operating activities (operating cash flow) of €525.0 million, which was €116.1 million higher than the same period of the previous year (9M 2014: €408.9 million). The rise in operating activities resulted firstly from the improvement in the operating result and secondly from cash inflows from current assets. Cash outflows for interest and taxes on income totaling €143.8 million were lower than the figure for the same period of the previous year of €164.8 million.
At €123.9 million, cash flow used in investing activities without investments in cash deposits and securities was lower than the figure for previous year particularly due to lower capital expenditure in property, plant, and equipment, and due to payments for acquisitions of companies in the same period of the previous year (9M 2014: €246.3 million). The improvement in the operating cash flow and lower capital expenditure in property, plant, and equipment led to a significant rise in the free cash flow from €235.8 million to €389.4 million (+€189.7 million). The sale of consolidated subsidiaries related to the sale of shares in Air-Transport IT Services (+€10.0 million) and of FSG Flughafen-Service (–€0.4 million). Including financial investments in and proceeds from securities and promissory note loans, as well as returns from time deposits with a term of more than three months, the cash flow from investing activities was €39.4 million in the reporting period. In the same period of the previous year the cash outflow was €4.1 million.
Within financing activities, non-current financial liabilities of €275.9 million (9M 2014: €250.5 million) were repaid, meaning that the cash flow used in financing activities was €409.7 million in the reporting period (9M 2014: €369.0 million). Another cause of the higher cash outflows was the dividends paid to the shareholders of Fraport AG and non-controlling interests, which were higher than in the previous year. The acquisition of "non-controlling interests" resulted from the acquisition of the remaining shares in the Group company Ljubljana following the squeeze-out resolution by the general meeting of Aerodrom Ljubljana, d.d. of January 19, 2015.
In connection with the financing for the Antalya concession, bank deposits of €23.3 million remained subject to drawing restrictions as at September 30, 2015. Cash and cash equivalents in the statement of cash flows therefore came to €329.9 million as at September 30, 2015, €157.7 million more than in the same period of the previous year.
| € million | September 30, 2015 | September 30, 2014 | December 31, 2014 |
|---|---|---|---|
| Cash and cash equivalents as at the consolidated statement of cash flows | 329.9 | 172.2 | 167.8 |
| Time deposits with a remaining term of more than three months | 125.0 | 212.8 | 210.0 |
| Restricted cash | 23.3 | 23.3 | 23.3 |
| Cash and cash equivalents as at the consolidated statement of financial position | 478.2 | 408.3 | 401.1 |
| Table 9 |
The schedule for reporting value management is once a year at the end of the fiscal year. It is not reported quarterly.
At 80% in the first nine months of 2015, global satisfaction (general passenger satisfaction with the Frankfurt site) was slightly below the previous year's level (9M 2014: 81%). Following a satisfaction rate of 80% after the end of the first half (–1 percentage point compared to the previous year), global satisfaction in the third quarter was 82%, an increase of two percentage points compared to the same quarter of the previous year.
The punctuality rate at the Frankfurt site in the first nine months of 2015 was 79.7% (9M 2014: 82.0%). After the first half's punctuality rate of 80.2% was already significantly below the previous year's good level of 84.9% – which was brought about by favorable weather conditions – the rate improved in the third quarter from 76.7% to 78.8% (+2.1 percentage points).
At 98.7%, baggage connectivity at the Frankfurt site was slightly above the previous year's level in the first nine months of 2015 (9M 2014: 98.6%). After a slight decrease in the first half of 2015 (98.7% compared to 98.8% in the first half of 2014), connectivity improved significantly by 0.5 percentage points to 98.8% in the third quarter of the fiscal year (Q3 2014: 98.3%).
The equipment availability rate reached 98.9% in the reporting period and was thus 1.0 percentage point above the previous year's figure. In the third quarter, the availability rate improved from 97.5% to 98.8% (+1.3 percentage points). With an average availability of 98.4%, the availability of escalators in particular reached a higher level in the reporting period (9M 2014: 96.7%).
The employee satisfaction survey was started toward the end of the third quarter of 2015 in the 14 participating Group companies. The survey is being carried out online for the first time this year at Fraport AG and at the Group companies that fulfill the necessary conditions.
The total number of work accidents in the first nine months of 2015 was 1,157 compared to 1,076 work accidents in the previous year (+7.5%). The reason for the rise was, in particular, an increase in the accidents reported in the Group company FraSec Fraport Security Services.
| Indicators | 9M 2015 | 9M 2014 | Change | Change in % |
|---|---|---|---|---|
| Global satisfaction (Frankfurt) 1) | 80% | 81% | –1.0 PP | – |
| Punctuality rate (Frankfurt) | 79.7% | 82.0% | –2.3 PP | – |
| Baggage connectivity (Frankfurt) | 98.7% | 98.6% | 0.1 PP | – |
| Equipment availability rate (Frankfurt) | 98.9% | 97.9% | 1.0 PP | – |
| Employee satisfaction 2) | – | – | – | – |
| Total number of work accidents 3) | 1,157 | 1,076 | 81 | 7.5 |
| Indicators | Q3 2015 | Q3 2014 | Change | Change in % |
| Global satisfaction (Frankfurt) 1) | 82% | 80% | 2.0 PP | – |
| Punctuality rate (Frankfurt) | 78.8% | 76.7% | 2.1 PP | – |
| Baggage connectivity (Frankfurt) | 98.8% | 98.3% | 0.5 PP | – |
| Equipment availability rate (Frankfurt) | 98.8% | 97.5% | 1.3 PP | – |
| Employee satisfaction 2) | – | – | – | – |
| Total number of work accidents 3) | 460 | 414 | 46 | 11.1 |
| 1) Global satisfaction is only surveyed quarterly at the Frankfurt site. | Table 10 |
The Group airports in which Fraport holds a share of at least 50% report on this on an annual basis.
2) Employee satisfaction is only surveyed on an annual basis.
3) The work accident figures relate to the reporting date. Due to late registrations, these figures may change.
| Average number of employees | 9M 2015 | 9M 2014 | Change | Change in % |
|---|---|---|---|---|
| Fraport Group | 20,836 | 20,326 | 510 | 2.5 |
| thereof Fraport AG | 10,567 | 10,753 | –186 | –1.7 |
| thereof in Group companies | 10,269 | 9,573 | 696 | 7.3 |
| thereof in Germany | 18,875 | 18,565 | 310 | 1.7 |
| thereof abroad | 1,961 | 1,761 | 200 | 11.4 |
| Q3 2015 | Q3 2014 | Change | Change in % | |
| Fraport Group | 21,125 | 20,617 | 508 | 2.5 |
| thereof Fraport AG | 10,539 | 10,682 | –143 | –1.3 |
| thereof in Group companies | 10,586 | 9,935 | 651 | 6.6 |
| thereof in Germany | 18,831 | 18,414 | 417 | 2.3 |
| thereof abroad | 2,294 | 2,203 | 91 | 4.1 |
| Table 11 |
Compared with the same period of the previous year, the average number of employees in the Fraport Group (excluding apprentices and employees on leave) increased to 20,836 in the first nine months of 2015 (9M 2014: 20,326). In Germany, the need for staff increased particularly in the Group companies APS Airport Personal Service and FraCareServices due to the increase in passenger numbers at the Frankfurt site (+362 and +108 employees, respectively). The reduction in headcount at Fraport AG (–186 employees), which was primarily due to staff turnover, had the opposite effect on the Group-wide headcount.
Outside of Germany, headcount increased by 200 to 1,961 despite a decrease in employment in the Group company Twin Star for reasons relating to traffic volumes (–144 employees) and despite the sale of the Group company Air-Transport IT Services (–41 employees). The increase was primarily due to the new Group companies Ljubljana (+403 employees) and AMU Holdings Inc. (+21 employees).
| Total employees as at the reporting date | September 30, 2015 | September 30, 2014 | Change | Change in % |
|---|---|---|---|---|
| Fraport Group | 23,518 | 23,176 | 342 | 1.5 |
| thereof Fraport AG | 11,539 | 11,777 | –238 | –2.0 |
| thereof in Group companies | 11,979 | 11,399 | 580 | 5.1 |
| thereof in Germany | 20,856 | 20,590 | 266 | 1.3 |
| thereof abroad | 2,662 | 2,586 | 76 | 2.9 |
Table 12
Compared with the same date in the previous year, the total number of employees in the Fraport Group (including joint ventures, apprentices, and employees on leave) increased by 342 to 23,518 as at September 30, 2015 (September 30, 2014: 23,176 employees). Despite a decrease of 238 employees at Fraport AG, as a result of higher employment in the Group companies there was an increase in the Group-wide headcount as at the balance sheet date. In Germany, the increase was primarily due to the Group company APS Airport Personal Service (+277 employees) and FraCareServices (+132 employees). Outside Germany, primarily the incorporation of the new Group company Ljubljana (+414 employees) led to a higher headcount. Due to the first-time incorporation of the Group company AMU Holdings Inc. in August 2014, this Group company's headcount was already included in the previous year's figures.
As stated in the 2014 Group management report, as a service-sector Group, Fraport does not engage in research and development in the strict sense, meaning that further disclosures in accordance with GAS 20 do not apply (see 2014 Annual Report, page 70). However, Fraport continues to utilize suggestions for improvements and innovations from employees, which play a successful role in retaining and expanding its international competitiveness (see 2014 Annual Report beginning on page 74). There were no significant changes resulting from ideas and innovations influencing the business development in the reporting period.
The German equity markets exhibited significantly volatile performance in the first nine months of 2015. While Germany's benchmark DAX ended the reporting period 1.5% down compared to the 2014 fiscal year's closing value at 10,097, the MDAX achieved an increase of 13.8%. After strong gains in the first quarter (DAX +22.0% and MDAX +22.1%), development cooled in the second quarter of 2015, primarily due to the uncertain economic development of Greece and the consequences for the European economy that may result (DAX in the second quarter: –10.4% and MDAX: –6.2%). The low interest rates and overall favorable economic conditions continued to have a positive impact. The European Central Bank's decision to purchase €60 billion in government bonds and other securities from Euro zone countries each month until the end of September 2016 also stimulated equity markets. In the third quarter, in particular the devaluation of the Chinese Renminbi at the end of August as a result of the concerns about China's economic development and it becoming known in September that Volkswagen had manipulated emissions tests led to negative market reactions (DAX in the third quarter: –13.1% and MDAX: –2.1%).
Within this market environment, the Fraport share performed well with
The shares of other stock-exchange listed European airports performed as follows in the reporting period: Aéroports de Paris +1.7%, Vienna Airport +5.1%, and Zurich Airport +1.7%. Compared with its issue price of €58 per share, the Spanish airport operator AENA gained 70.3% between its initial listing on February 11, 2015 and September 30, 2015.
| 9M 2015 | Q3 2015 | |
|---|---|---|
| Opening price in € | 48.04 | 56.34 |
| Closing price in € | 55.19 | 55.19 |
| Change 1) | 7.15 | –1.15 |
| Change in % 2) | 14.9 | –2.0 |
| Highest price in € (daily closing price) | 62.30 | 60.67 |
| Lowest price in € (daily closing price) | 48.04 | 51.63 |
| Average price in € (daily closing prices) | 55.78 | 55.87 |
| Average trading volume per day (number) | 150,985 | 176,356 |
| Market capitalization in € million (quarterly closing price) | 5,099 | 5,099 |
| 1) Change including dividends: 9M 2015: +€8.50. | Table 13 |
2) Change including dividends: 9M 2015: +17.7%.
Fraport was notified of the following changes in shareholder structure in the reporting period:
| Holders of voting rights | Date of change | Type of change | New share of voting rights |
|---|---|---|---|
| RARE Infrastructure Limited 1) | March 10, 2015 | Fell below the 5% threshold | 4.87% |
| RARE Infrastructure Limited 2) | August 25, 2015 | Fell below the 3% threshold | 2.99% |
| RARE Infrastructure Limited 3) | September 10, 2015 | Exceeded the 3% threshold | 3.002% |
| RARE Infrastructure Limited 4) | September 11, 2015 | Fell below the 3% threshold | 2.99% |
| 1) 4.87% of the voting rights were attributable to RARE Infrastructure Limited pursuant to Section 22 (1) sentence 1 no. 6 WpHG | Table 14 |
1) 4.87% of the voting rights were attributable to RARE Infrastructure Limited pursuant to Section 22 (1) sentence 1 no. 6 WpHG in conjunction withSection 22 (1) sentence 2 WpHG.
2) 2.99% of the voting rights were attributable to RARE Infrastructure Limited pursuant to Section 22 (1) sentence 1 no. 6 WpHG in conjunction with Section 22 (1) sentence 2 WpHG.
3) 3.002% of the voting rights were attributable to RARE Infrastructure Limited pursuant to Section 22 (1) sentence 1 no. 6 WpHG in conjunction with Section 22 (1) sentence 2 WpHG.
4) 2.99% of the voting rights were attributable to RARE Infrastructure Limited pursuant to Section 22 (1) sentence 1 no. 6 WpHG in conjunction with Section 22 (1) sentence 2 WpHG.
As at September 30, 2015, the shareholder structure adjusted to the current total number of voting rights was as follows:
1) The relative ownership interests were adjusted to the current total number of shares as at September 30, 2015 and therefore may differ from the figures given at the time of reporting or from the respective shareholders' own disclosure. Interests below 3% are classified under "Free Float".
Graphic 2
For the 2014 fiscal year, the 2015 Annual General Meeting passed a resolution to pay out a dividend of €1.35 per share. Compared with the previous year, this corresponded to an increase of €0.10 or 8.0%. Compared to the share closing price in 2014 of €48.04, this corresponded to a dividend yield of 2.8% (previous year: 2.3%). The profit earmarked for distribution used for this of €124.7 million (previous year: €115.4 million) therefore corresponded – in relation to Fraport AG's result for the year 2014 of €178.5 million – to a pay-out ratio of 69.9% (previous year: 66.4%) or – in relation to the Group result attributable to shareholders of Fraport AG of €234.7 million – of 53.1% (previous year: 52.2%).
Due to differences of opinion between Fraport and the HMWEVL with regard to the calculation of significant cost items in calculating the airport charges for the 2016 fiscal year, on October 29, 2015, Fraport withdrew the application made on July 1, 2015 for an increase in airport charges by an average of 1.9% for the 2016 fiscal year. Fraport will re-check the facts and make a new application in 2016. Until a new charge table comes into force, the currently valid charge table will remain in force even beyond January 1, 2016. The withdrawal of the application has no effect on the forecasted development of the asset, financial, and earnings position in full year 2015. Furthermore, it is not possible to forecast the effects of the withdrawal on the development of the asset, financial, and earnings position in the 2016 fiscal year at the time of publishing this report. This is mainly due to the fact that it is not possible to estimate when a new charge table will come into force and what the amounts of the future airport charges will be.
On November 2, 2015, Fraport completed the sale of 51% of the capital shares in the Group company FCS to WFS. Since then, the Group company has been consolidated in the Group using the equity method. The sale of the shares will result in slightly lower revenue in full year 2015. However, due to the company's low margin, the sale will not have a significant overall effect on the forecasted operating results for fiscal year 2015. In the reporting period, the company generated revenue of €48.1 million and a net result of – €3.4 million. The aforementioned revenue will fail to materialize in fiscal year 2016. From now on, the company's net result will be recognized on a pro rata basis in the result from companies accounted for using the equity method.
There were no other significant events for the Fraport Group after the balance sheet date.
The Executive Board does not expect any significant changes to the economic and industry-specific conditions that could impact the Fraport Group for the remaining months of the fiscal year. The Executive Board therefore largely expects a perpetuation of the operating developments of the past nine months. Without taking possible effects from strikes or significantly worse weather conditions into consideration, the Executive Board as a result expects slightly better passenger numbers at the Frankfurt site than forecasted at the start of the fiscal year (forecast after the end of the first nine months subject to any possible strike action: growth of around 3% to around 4%, forecast at the start of the fiscal year: growth of between 2% and 3%). In addition to traffic growth, the increase in airport and infrastructure charges at the start of the fiscal year will continue to have a revenue-increasing effect at the Frankfurt site. In external business, the Executive Board continues to expect higher contributions from the Group company Lima and from the new Group companies AMU Holdings Inc. and Ljubljana. Positive as well as negative effects may continue to arise Group-wide from exchange rate fluctuations, which may impact the purchasing power of passengers in the retail businesses and travel behavior overall. Furthermore, in particular the development of the St. Petersburg, Antalya, Varna, and Burgas sites may be influenced by the continuing tense economic and political situation in Russia. Uncertainties also result from unresolved collective wage conflicts in air traffic.
In connection with the slightly better passenger expectation in Frankfurt, the Executive Board also expects the results of operations to develop slightly better in full year 2015, subject to any potential strike action. While the revenue forecast given at the start of the fiscal year continues to apply, because of counteracting effects from the sale of shares in Group companies during the year, the Executive Board now expects Group EBITDA of between around €840 million and around €850 million, Group EBIT of between around €520 million and around €530 million, Group EBT of between around €425 million and around €435 million, and a Group result of between around €275 million and around €295 million (previous forecasts: Group EBITDA of between around €820 million and around €840 million, Group EBIT of between around €500 million and around €520 million, Group EBT at approximately a level between €405 million and €425 million, and a Group result of between around €265 million and around €285 million).
At the end of the reporting period, the Executive Board continues to assess that there are no significant risks that might jeopardize the Fraport Group as a going concern. The Executive Board continues to examine opportunities for optimizing the asset and financial position and aims to expand the external business with a focus on revenue. In connection with the planned acquisition of the concession contracts to operate 14 Greek regional airports, the Executive Board has come to an understanding with the Greek side that it will continue to maintain its offer for the operation of the airports. The forecast for the current 2015 fiscal year does not include any effects from the potential completion of this transaction. Further acquisitions or disposals of businesses are likewise not included in the forecast. The Executive Board continues to assess the financial situation in the forecasted period as stable.
The Fraport Group has implemented a comprehensive, Group-wide risk and opportunities management system, which makes it possible for Fraport to identify and analyze risks at an early stage, and to control and limit those risks using appropriate measures, as well as to take advantage of opportunities. This results in the early identification of potential material risks that could jeopardize the Fraport Group. The revised policy for the Fraport AG risk management system and the Group policy for the Group companies involved came into force as at January 1, 2015. As part of the revision/preparation, the Group-wide risk matrix, with its dimensions of the levels of financial impact, probability, and risk, was redefined and each was extended by an additional level. The extension that took place had no impact on the reporting in the Group Interim Report for the period ended September 30, 2015.
The 2014 Annual Report beginning on page 86 reported on the risk that describes the negative equity situation of Northern Capital Gateway (NCG). The shareholders of Thalita Trading Limited, Cyprus, restructured the loans granted by them to Northern Capital Gateway in the second quarter of 2015. This involved the take over of the existing liabilities of Northern Capital Gateway by Thalita Trading Limited, Cyprus, followed by their conversion into equity in Northern Capital Gateway, thus remedying its negative shareholders' equity.
On page 84 of the 2014 Annual Report, Fraport further reported on the proceedings initiated in 2004 on the expropriation of the terminal in Manila. In its decision of September 8, 2015, the Supreme Court of the Philippines ruled that the local project company Philippine International Air Terminals Co., Inc. (PIATCO), in which Fraport holds a share, is entitled to payment of a further approximately US\$510 million as of December 31, 2014, as compensation for the expropriation of the terminal. This decision is not yet final, the defendant and the other parties involved have lodged an appeal. The assessment of the risks and opportunities arising from the facts associated with the ruling remains unchanged.
There were no further material changes to the risks and opportunities presented in the Group management report as at December 31, 2014 (see 2014 Annual Report beginning on page 74). The Executive Board believes that the changes to individual risks did not have any material impact on Fraport's overall risk and opportunity profile. Furthermore, in the Executive Board's estimation, there are no discernible risks that could jeopardize the Fraport Group as a going concern.
The Executive Board continues not to expect any changes during the remainder of the year that will have a significant influence on the business development of the Group with respect to operating activities, structure, strategy, and control of the Group (see also "Outlook Report" in the 2014 Annual Report beginning on page 91).
The prospects for the growth of the global economy have worsened as a result of the significant decrease in the rate of overall economic expansion in emerging countries. Following global economic growth of approximately 3.4% in 2014, financial and economic institutes now expect a global economic expansion of 2.6% to 3.2% in the 2015 fiscal year (previously: 3.2% to 3.3%) and expect a growth rate of up to 3.2% for global trade, although the consensus of the leading German economic research institutes is significantly lower than this at 1.2%.
For some years, the growth in global trade has increasingly weakened in relation to growth in production. The structural change in China (expected growth in 2015: 6.8%) is likely to play an important role, because the momentum of foreign trade there and among China's East Asian trading partners has decreased particularly sharply. In the USA, the upturn of the summer months could already weaken again. After a weather and strike-related weak start to the year, the expansion there accelerated, but suffered from the strong US\$ in the third quarter. The Federal Reserve is now only talking about a continuing "moderate" expansion. The consensus of the leading German economic research institutes is that GDP growth for 2015 will be 2.5%. In the Euro zone, the economic recovery process is likely to continue. In particular in the former crisis countries, economic growth will probably also remain high in future. After growth of 0.9% in 2014, economic growth of approximately 1.5% is forecasted for 2015.
With regard to the € to US\$ exchange rate, it is assumed that the depreciation trend will only continue in weakened form, if at all, in the remainder of 2015. The failure of the key interest rate rise to materialize in the USA negatively impacts the US\$. The weak inflation trend in the Euro zone and the associated increased probability of an expansion of the European Central Bank's bond purchase program counteract the appreciation of the €. Whether the currently relatively low oil price will continue is questionable. Market participants are increasingly focusing on the supply side, where there is a shortage as a result of a decrease in capital expenditure, as a result of which the crude oil price could rise.
The moderate development of the global economy, which is mainly sustained by the industrial countries, allows German exports to increase modestly in the medium term. Due to high domestic demand, imports are rising. The forecasts of German GDP growth in 2015 currently range from 1.5% to 1.8% (previously: 1.6% to 1.9%). In addition, high immigration is expected to increase consumption and thus GDP.
The following growth rates are expected for the countries with significant Fraport investments: Slovenia +2.3%, Peru +2.4%, Bulgaria +1.7%, Turkey +3.0%, Russia –3.8%, and China +6.8%.
Sources: IMF (October 2015), Deutsche Bank Research (October 2015),
DekaBank (October/November 2015), consensus of the leading German economic research institutes (fall 2015).
No further changes to the legal environment that would have a significant influence on the business development of Fraport can currently be discerned.
According to the latest forecast, IATA expects growth of 6.7 % for global air traffic in the 2015 fiscal year based on revenue passenger kilometers (RPK). Regionally IATA anticipates the following growth rates (also based on RPK): Europe: 6.8%, North America: 3.0%, Asia-Pacific: 8.1%, Latin America: 5.1%, Middle East: 12.9%, and Africa: 3.2%. Freight is expected to grow by 5.3%. Positive stimulus is expected from the low price for crude oil, which will allow ticket prices to fall and make new routes economic.
Source: IATA "Economic Performance of the Airline Industry" (June 2015).
Taking the economic and industry-specific conditions into account and the business development to date, the Executive Board expects slightly better passenger numbers at the Frankfurt site for full year 2015 than forecasted at the start of the fiscal year. At the end of the third quarter, as a result the Executive Board expects a growth of between around 3% and around 4% at the Frankfurt site (forecast at the start of the fiscal year: growth of between 2% and 3%). The Executive Board did not take any negative effects from possible strikes or significantly worse weather conditions in the remainder of the year into account here. With regard to cargo tonnage handled, the Executive Board expects development below that of the market growth of up to around –2% for the Frankfurt site for 2015 (forecast at the start of the fiscal year: growth of up to 3%). In addition to the unresolved collective wage conflicts in air traffic and unpredictable weather conditions, the aforementioned forecast figures may continue to be influenced by airlines' short-term yield and capacity management. Economic and political crises may particularly change the cargo outlook.
Due to the fact that predicting Russia's economic and political development remains difficult, the traffic outlook for the St. Petersburg, Antalya, Varna, and Burgas sites is still subject to increased uncertainty. Whereas growth rates of approximately 4% were still anticipated for the Antalya, Varna, and Burgas airports at the start of the fiscal year, these will be lower and will probably be negative due to the continuing tense situation in Russia – as already happened in the first nine months of 2015. As a result of the positive economic assumptions and tourism forecasts, the Executive Board expects further significant growth at the Lima site at a high single-digit growth rate and continuing growth at the Xi'an site at a low double-digit growth rate in the 2015 fiscal year (forecast at the start of the fiscal year for Lima and Xi'an: growth of 5% or more). The growth rate of the new Group company Ljubljana is forecasted to be at the upper end of the single-digit range (forecast at the start of the fiscal year: up to approximately 5%).
In connection with the slightly better passenger expectation in Frankfurt (see the chapter entitled "Forecasted business development for 2015" on the same page of this report), the Executive Board also expects the results of operations to develop slightly better in full year 2015, subject to any possible strike action. While the revenue forecast given at the start of the fiscal year continues to apply due to counteracting effects from the sale of shares in Group companies during the year, the Executive Board now expects Group EBITDA of between around €840 million and around €850 million, Group EBIT of between around €520 million and around €530 million, Group EBT of between around €425 million and around €435 million, and a Group result of between around €275 million and around €295 million (previous forecasts: Group EBITDA of between around €820 million and around €840 million, Group EBIT of between around €500 million and around €520 million, Group EBT at approximately a level between €405 million and €425 million, and a Group result of between around €265 million and around €285 million).
Following the end of the first nine months of the 2015 fiscal year and taking account of the passenger forecast for the full year, the Executive Board expects an increase in revenue that is slightly above the forecast at the start of the fiscal year for the Aviation segment (forecast at the start of the fiscal year: increase of up to 5%). Primarily due to counteracting items in the expenses, the Executive Board expects a slightly worse development of segment EBITDA and EBIT than forecasted at the start of the fiscal year (forecast at the start of the fiscal year: growth between around €5 million and €15 million).
For the Retail & Real Estate segment, the Executive Board expects better revenue performance than forecasted at the start of the fiscal year in full year 2015 (forecast at the start of the fiscal year: increase of up to approximately 5%). The Executive Board also expects development of segment EBITDA and EBIT to be above the values forecasted in the 2014 Annual Report (forecast at the start of the fiscal year: values at approximately the previous year's level).
Due to the sale of shares in the Group company FCS, the Executive Board expects slightly lower revenue growth in the Ground Handling segment than forecasted at the start of the fiscal year (forecast at the start of the fiscal year: revenue increase of up to €30 million). The low impact of the Group company on segment EBITDA and segment EBIT in the fourth quarter means that the forecast given by the Executive Board at the start of the fiscal year is largely still valid (forecast: values that are at approximately the previous year's level).
For the External Activities & Services segment forecast, there have been no significant improvements or deteriorations in the reporting period, with the result that the segment outlook provided by the Executive Board at the start of the fiscal year is still valid (see 2014 Annual Report starting on page 93).
In the further course of the fiscal year, positive as well as negative effects may continue to arise from exchange rate fluctuations, which may impact the purchasing power of passengers in the retail businesses and travel behavior overall. Furthermore, in particular the development of the St. Petersburg, Antalya, Varna, and Burgas sites may be influenced by the continuing tense economic and political situation in Russia. Uncertainties also result from unresolved collective wage conflicts in air traffic, particularly at the Frankfurt site.
Following the end of the first nine months of 2015, the Executive Board expects the capital expenditure volume in property, plant, and equipment to be lower than forecasted at the start of the fiscal year (forecast at the start of the fiscal year: capital expenditure volume slightly above 2014's level). As a result, the free cash flow will develop more positively than previously assumed and net financial debt in the full year will decrease more sharply (forecast at the start of the fiscal year: continuing significantly positive free cash flow, net financial debt slightly below the figure as at the 2014 balance sheet date). As already updated in the Group Interim Report for the period ended June 30, 2015, the Executive Board expects a higher increase in Group shareholders' equity and shareholders' equity ratio for full year 2015 than assumed at the start of the fiscal year (forecast at the start of the fiscal year: slight increase in each compared to the figures as at the 2014 balance sheet date). As a consequence, the gearing ratio will also decrease more sharply than forecasted (forecast at the start of the fiscal year: decrease of up to approximately five percentage points). Total assets are expected to remain unchanged compared to the 2014 Annual Report (forecast at the start of the fiscal year: slight increase compared to 2014).
The Executive Board also confirms its forecast for the development of the non-financial performance indicators in the 2015 fiscal year (see 2014 Annual Report beginning on page 93).
Where the statements made in this document relate to the future rather than the past, these statements 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 basic 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.
| € million | 9M 2015 | 9M 2014 | Q3 2015 | Q3 2014 |
|---|---|---|---|---|
| Revenue | 1,967.3 | 1,796.9 | 725.4 | 674.5 |
| Change in work-in-process | 0.7 | 0.5 | 0.2 | 0.1 |
| Other internal work capitalized | 21.2 | 19.5 | 7.0 | 6.0 |
| Other operating income | 30.1 | 28.5 | 12.2 | 4.9 |
| Total revenue | 2,019.3 | 1,845.4 | 744.8 | 685.5 |
| Cost of materials | –442.2 | –383.1 | –152.9 | –137.7 |
| Personnel expenses | –768.3 | –727.3 | –246.5 | –239.5 |
| Other operating expenses | –120.3 | –113.7 | –41.9 | –41.2 |
| EBITDA | 688.5 | 621.3 | 303.5 | 267.1 |
| Depreciation and amortization | –244.6 | –225.3 | –81.5 | –76.8 |
| EBIT/Operating result | 443.9 | 396.0 | 222.0 | 190.3 |
| Interest income | 21.6 | 27.1 | 7.3 | 8.5 |
| Interest expenses | –120.2 | –134.8 | –37.4 | –43.1 |
| Result from companies accounted for using the equity method | 37.7 | 44.9 | 35.8 | 41.3 |
| Other financial result | 0.8 | –8.3 | 3.9 | –1.2 |
| Financial result | –60.1 | –71.1 | 9.6 | 5.5 |
| EBT/Result from ordinary operations | 383.8 | 324.9 | 231.6 | 195.8 |
| Taxes on income | –122.3 | –105.3 | –73.1 | –67.9 |
| Group result | 261.5 | 219.6 | 158.5 | 127.9 |
| thereof profit attributable to non-controlling interests | 17.5 | 15.2 | 12.5 | 11.8 |
| thereof profit attributable to shareholders of Fraport AG | 244.0 | 204.4 | 146.0 | 116.1 |
| Earnings per €10 share in € | ||||
| basic | 2.64 | 2.22 | 1.58 | 1.26 |
| diluted | 2.64 | 2.20 | 1.58 | 1.25 |
| € million | 9M 2015 | 9M 2014 | Q3 2015 | Q3 2014 |
|---|---|---|---|---|
| Group result | 261.5 | 219.6 | 158.5 | 127.9 |
| Remeasurements of defined benefit pension plans | –0.5 | 0.0 | 0.0 | 0.0 |
| (Deferred taxes related to those items | 0.2 | 0.0 | 0.0 | 0.0) |
| Items that will not be reclassified subsequently to profit or loss | –0.3 | 0.0 | 0.0 | 0.0 |
| Fair value changes of derivatives | ||||
| Changes directly recognized in equity | –3.8 | –29.7 | –24.2 | –49.5 |
| thereof realized gains (+)/losses (–) | –29.0 | –29.9 | –29.4 | –52.6 |
| 25.2 | 0.2 | 5.2 | 3.1 | |
| (Deferred taxes related to those items | –7.8 | –0.1 | –1.6 | –1.0) |
| Fair value changes of financial instruments held for sale | ||||
| Changes directly recognized in equity | 3.8 | 19.9 | –7.4 | 7.9 |
| thereof realized gains (+)/losses (–) | 0.0 | 0.0 | –4.6 | 0.0 |
| 3.8 | 19.9 | –2.8 | 7.9 | |
| (Deferred taxes related to those items | 2.2 | –2.8 | 0.7 | –0.9) |
| Foreign currency translation of subsidiaries | 12.3 | 8.4 | –0.8 | 8.0 |
| Income and expenses from companies accounted for using the equity method directly recognized in equity |
3.1 | 9.5 | –4.2 | 10.9 |
| (Deferred taxes related to those items | 0.7 | 0.0 | 0.2 | –0.1) |
| Items that will be reclassified subsequently to profit or loss | 39.5 | 35.1 | –3.3 | 27.9 |
| Other result after deferred taxes | 39.2 | 35.1 | –3.3 | 27.9 |
| Comprehensive income | 300.7 | 254.7 | 155.2 | 155.8 |
| thereof attributable to non-controlling interests | 19.5 | 17.6 | 12.2 | 14.1 |
| thereof attributable to shareholders of Fraport AG | 281.2 | 237.1 | 143.0 | 141.7 |
| € million | September 30, 2015 | December 31, 2014 |
|---|---|---|
| Non-current assets | ||
| Goodwill | 41.7 | 41.7 |
| Investments in airport operating projects | 492.8 | 479.2 |
| Other intangible assets | 152.4 | 157.1 |
| Property, plant, and equipment | 6,035.3 | 6,127.7 |
| Investment property | 69.9 | 63.0 |
| Investments in companies accounted for using the equity method | 228.5 | 216.9 |
| Other financial assets | 675.1 | 773.3 |
| Other receivables and financial assets | 190.5 | 181.1 |
| Income tax receivables | 11.0 | 10.2 |
| Deferred tax assets | 32.0 | 31.1 |
| 7,929.2 | 8,081.3 | |
| Current assets | ||
| Inventories | 45.6 | 43.7 |
| Trade accounts receivable | 195.1 | 174.7 |
| Other receivables and financial assets | 314.1 | 297.6 |
| Income tax receivables | 7.5 | 7.7 |
| Cash and cash equivalents | 478.2 | 401.1 |
| 1,040.5 | 924.8 | |
| Non-current assets held for sale | 25.2 | 7.1 |
| 1,065.7 | 931.9 | |
| Total | 8,994.9 | 9,013.2 |
| € million | September 30, 2015 | December 31, 2014 |
|---|---|---|
| Shareholders' equity | ||
| Issued capital | 923.1 | 922.7 |
| Capital reserve | 594.3 | 592.3 |
| Revenue reserves | 1,863.3 | 1,706.1 |
| Equity attributable to shareholders of Fraport AG | 3,380.7 | 3,221.1 |
| Non-controlling interests | 73.5 | 64.9 |
| 3,454.2 | 3,286.0 | |
| Non-current liabilities | ||
| Financial liabilities | 3,427.3 | 3,874.3 |
| Trade accounts payable | 43.7 | 47.1 |
| Other liabilities | 455.4 | 497.5 |
| Deferred tax liabilities | 159.0 | 158.7 |
| Provisions for pensions and similar obligations | 34.3 | 33.7 |
| Provisions for taxes on income | 78.7 | 68.8 |
| Other provisions | 229.8 | 228.0 |
| 4,428.2 | 4,908.1 | |
| Current liabilities | ||
| Financial liabilities | 498.2 | 318.1 |
| Trade accounts payable | 149.2 | 134.5 |
| Other liabilities | 179.5 | 123.7 |
| Provisions for taxes on income | 64.5 | 14.7 |
| Other provisions | 207.8 | 223.8 |
| 1,099.2 | 814.8 | |
| Liabilities in the context of non-current assets held for sale | 13.3 | 4.3 |
| 1,112.5 | 819.1 | |
| Total | 8,994.9 | 9,013.2 |
| € million | 9M 2015 | 9M 2014 | Q3 2015 | Q3 2014 |
|---|---|---|---|---|
| Profit attributable to shareholders of Fraport AG | 244.0 | 204.4 | 146.0 | 116.1 |
| Profit attributable to non-controlling interests | 17.5 | 15.2 | 12.5 | 11.8 |
| Adjustments for | ||||
| Taxes on income | 122.3 | 105.3 | 73.1 | 67.9 |
| Depreciation and amortization | 244.6 | 225.3 | 81.5 | 76.8 |
| Interest result | 98.6 | 107.7 | 30.1 | 34.6 |
| Gains/losses from disposal of non-current assets | –4.3 | 0.2 | –7.3 | 0.3 |
| Other | 4.7 | 0.7 | 3.4 | –0.3 |
| Fair value changes of companies accounted for using the equity method | –37.7 | –44.9 | –35.8 | –41.3 |
| Changes in inventories | –1.9 | –1.1 | –0.7 | –0.1 |
| Changes in receivables and financial assets | –16.6 | –37.9 | 7.0 | 4.0 |
| Changes in liabilities | 29.6 | 20.1 | 36.7 | 6.5 |
| Changes in provisions | –32.0 | –21.3 | –28.2 | 1.3 |
| Operating activities | 668.8 | 573.7 | 318.3 | 277.6 |
| Financial activities | ||||
| Interest paid | –103.0 | –120.9 | –56.8 | –65.7 |
| Interest received | 10.3 | 16.2 | 0.0 | 1.9 |
| Taxes on income paid | –51.1 | –60.1 | –13.1 | –10.8 |
| Cash flow from operating activities | 525.0 | 408.9 | 248.4 | 203.0 |
| Investments in airport operating projects | –10.1 | –8.0 | –2.4 | –2.0 |
| Capital expenditure for other intangible assets | –5.6 | –4.4 | –2.2 | –3.5 |
| Capital expenditure for property, plant, and equipment | –139.9 | –185.5 | –47.4 | –74.8 |
| Investment property | –8.9 | –6.6 | –2.8 | –0.7 |
| Advance payments and payments for company acquisitions | 0.0 | –77.1 | 0.0 | –77.1 |
| Sale of consolidated subsidiaries | 9.6 | 0.0 | –0.4 | 0.0 |
| Dividends from companies accounted for using the equity method | 28.9 | 31.4 | 6.1 | 6.2 |
| Proceeds from disposal of non-current assets | 2.1 | 3.9 | 0.9 | 3.3 |
| Cash flow used in investing activities without investments in cash deposits and securities |
–123.9 | –246.3 | –48.2 | –148.6 |
| Financial investments in securities and promissory note loans | –201.6 | –439.5 | –75.7 | –64.2 |
| Proceeds from disposal of securities and promissory note loans | 279.9 | 562.1 | 45.1 | 144.8 |
| Decrease of time deposits with the remaining term of more than three months |
85.0 | 119.6 | 60.0 | –10.0 |
| Cash flow from/ used in investing activities | 39.4 | –4.1 | –18.8 | –78.0 |
| Dividends paid to shareholders of Fraport AG | –124.6 | –115.3 | 0.0 | 0.0 |
| Dividends paid to non-controlling interests | –6.3 | –3.4 | –2.7 | –1.0 |
| Capital increase | –4.1 | 2.5 | 0.0 | 0.0 |
| Acquisition of non-controlling interests | 2.4 | 0.0 | 0.0 | 0.0 |
| Repayment of long-term financial liabilities | –275.9 | –250.5 | –3.9 | –96.2 |
| Changes in short-term financial liabilities | –1.2 | –2.3 | –82.3 | 0.4 |
| Cash flow used in financing activities | –409.7 | –369.0 | –88.9 | –96.8 |
| Change in cash and cash equivalents | 154.7 | 35.8 | 140.7 | 28.2 |
| Cash and cash equivalents as at January 1 and July 1 | 167.8 | 131.2 | 189.5 | 139.3 |
| Foreign currency translation effects on cash and cash equivalents | 7.4 | 5.2 | –0.3 | 4.7 |
| Cash and cash equivalents as at September 30 | 329.9 | 172.2 | 329.9 | 172.2 |
| Table 19 |
| € million | Issued capital |
Capital reserve |
Revenue reserves |
Foreign currency reserve |
Financial instruments |
Revenue reserves (total) |
Equity attribut able to sharehol ders of Fraport AG |
Non controlling interests |
Equity (total) |
|---|---|---|---|---|---|---|---|---|---|
| Balance as at January 1, 2015 | 922.7 | 592.3 | 1,731.8 | 26.6 | –52.3 | 1,706.1 | 3,221.1 | 64.9 | 3,286.0 |
| Foreign currency translation effects | – | – | – | 10.3 | – | 10.3 | 10.3 | 2.0 | 12.3 |
| Income and expenses from companies accounted for using the equity method directly recognized in equity |
– | – | – | 6.8 | –3.0 | 3.8 | 3.8 | – | 3.8 |
| Remeasurements of defined benefit pension plans | – | – | –0.3 | – | – | –0.3 | –0.3 | – | –0.3 |
| Fair value changes of financial instruments held for sale | – | – | – | – | 6.0 | 6.0 | 6.0 | – | 6.0 |
| Fair value changes of derivatives | – | – | – | – | 17.4 | 17.4 | 17.4 | – | 17.4 |
| Other result | 0.0 | 0.0 | –0.3 | 17.1 | 20.4 | 37.2 | 37.2 | 2.0 | 39.2 |
| Issue of shares for employee investment plan | 0.4 | 2.0 | – | – | – | – | 2.4 | – | 2.4 |
| Distributions | – | – | –124.6 | – | – | –124.6 | –124.6 | –6.3 | –130.9 |
| Group result | – | – | 244.0 | – | – | 244.0 | 244.0 | 17.5 | 261.5 |
| Transactions with non-controlling interests | – | – | – | – | – | – | 0,0 | –4.7 | –4.7 |
| Consolidation activities/other changes | – | – | 0.6 | – | – | 0.6 | 0.6 | 0.1 | 0.7 |
| Balance as at September 30, 2015 | 923.1 | 594.3 | 1,851.5 | 43.7 | –31.9 | 1,863.3 | 3,380.7 | 73.5 | 3,454.2 |
| Balance as at January 1, 2014 | 922.1 | 590.2 | 1,618.4 | 3.7 | –81.3 | 1,540.8 | 3,053.1 | 45.7 | 3,098.8 |
| Foreign currency translation effects | – | – | – | 6.0 | – | 6.0 | 6.0 | 2.4 | 8.4 |
| Income and expenses from companies accounted for using the equity method directly recognized in equity |
– | – | – | 9.1 | 0.4 | 9.5 | 9.5 | – | 9.5 |
| Fair value changes of financial instruments held for sale | – | – | – | – | 17.1 | 17.1 | 17.1 | – | 17.1 |
| Fair value changes of derivatives | – | – | – | – | 0.1 | 0.1 | 0.1 | – | 0.1 |
| Other result | 0.0 | 0.0 | 0.0 | 15.1 | 17.6 | 32.7 | 32.7 | 2.4 | 35.1 |
| Issue of shares for employee investment plan | 0.5 | 2.0 | – | – | – | – | 2.5 | – | 2.5 |
| Management stock options plan | |||||||||
| Capital increase for exercise of subscription rights | 0.1 | 0.1 | – | – | – | – | 0.2 | – | 0.2 |
| Distributions | – | – | –115.3 | – | – | –115.3 | –115.3 | –3.5 | –118.8 |
| Group result | – | – | 204.4 | – | – | 204.4 | 204.4 | 15.2 | 219.6 |
| Consolidation activities/other changes | – | – | 0.2 | – | – | 0.2 | 0.2 | –0.3 | –0.1 |
| Balance as at September 30, 2014 | 922.7 | 592.3 | 1,707.7 | 18.8 | –63.7 | 1,662.8 | 3,177.8 | 59.5 | 3,237.3 |
| € million | Aviation | Retail & Real Estate |
Ground Handling |
External Activities & Services |
Reconciliation | Group | |
|---|---|---|---|---|---|---|---|
| 9M 2015 | 706.9 | 356.8 | 517.8 | 385.8 | 1,967.3 | ||
| Revenue | 9M 2014 | 673.4 | 334.9 | 496.0 | 292.6 | 1,796.9 | |
| 9M 2015 | 16.4 | 11.1 | 9.0 | 15.5 | 52.0 | ||
| Other income | 9M 2014 | 20.7 | 8.3 | 10.8 | 8.7 | 48.5 | |
| 9M 2015 | 723.3 | 367.9 | 526.8 | 401.3 | 2,019.3 | ||
| Third-party revenue | 9M 2014 | 694.1 | 343.2 | 506.8 | 301.3 | 1,845.4 | |
| 9M 2015 | 60.6 | 178.4 | 30.2 | 272.4 | –541.6 | ||
| Intersegment revenue | 9M 2014 | 57.6 | 173.7 | 23.3 | 261.8 | –516.4 | |
| 9M 2015 | 783.9 | 546.3 | 557.0 | 673.7 | –541.6 | 2,019.3 | |
| Total revenue | 9M 2014 | 751.7 | 516.9 | 530.1 | 563.1 | –516.4 | 1,845.4 |
| 9M 2015 | 201.7 | 286.1 | 40.5 | 160.2 | 688.5 | ||
| EBITDA | 9M 2014 | 197.7 | 264.1 | 35.2 | 124.3 | 621.3 | |
| 9M 2015 | 89.8 | 62.4 | 30.8 | 61.6 | 244.6 | ||
| Depreciation and amortization of segment assets | 9M 2014 | 87.8 | 62.1 | 28.0 | 47.4 | 225.3 | |
| 9M 2015 | 111.9 | 223.7 | 9.7 | 98.6 | 443.9 | ||
| Segment result (EBIT) | 9M 2014 | 109.9 | 202.0 | 7.2 | 76.9 | 396.0 | |
| September 30, 2015 | 4,001.7 | 2,491.5 | 656.4 | 1,794.8 | 50.5 | 8,994.9 | |
| Carrying amount of segment assets | December 31, 2014 | 4,049.8 | 2,538.0 | 668.4 | 1,708.0 | 49.0 | 9,013.2 |
The 2014 consolidated financial statements were prepared in compliance with the International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB) and the interpretations thereof by the International Financial Reporting Interpretations Committee (IFRIC) as applicable in the European Union. These abbreviated interim financial statements of the Fraport Group for the period ending September 30, 2015 have been prepared in accordance with IAS 34. As far as they apply to the Fraport Group, all official bulletins of the IASB as at January 1, 2015 have been taken into account. The interim report also meets the requirements of German Accounting Standard No. 16 (GAS 16) on interim financial reporting.
With respect to the accounting and valuation policies applied in Group accounting, please see the 2014 Annual Report (see 2014 Annual Report beginning on page 111).
The interim financial statements were not reviewed or audited by an independent auditor.
The following tables present the carrying amounts and fair values of the financial instruments as at September 30, 2015 and December 31, 2014, respectively:
| € million | Measured at acquisition costs | Measured at fair value September 30, | 2015 | ||||
|---|---|---|---|---|---|---|---|
| Recognized in profit or loss |
|||||||
| Measurement category according to IAS 39 | Loans and receivables | Held for trading |
Available for sale |
Hedging derivative |
Total fair value |
||
| Liquid funds |
Carrying amount |
Fair value | Carrying amount 1) |
Carrying amount 1) |
Carrying amount 1) |
||
| Assets | |||||||
| Cash and cash equivalents | 478.2 | 478.2 | |||||
| Trade accounts receivable | 195.1 | 195.1 | 195.1 | ||||
| Other financial receivables and assets | 121.5 | 121.4 | 226.7 | 348.1 | |||
| Other financial assets | |||||||
| Securities | 430.6 | 430.6 | |||||
| Other investments | 87.1 | 87.1 | |||||
| Loans to investments | 124.6 | 124.2 | 124.2 | ||||
| Other loans | 32.8 | 32.8 | 32.8 | ||||
| Derivative financial assets | |||||||
| Hedging derivative | 0.0 | ||||||
| Other derivatives | 0.0 | ||||||
| Total assets | 478.2 | 474.0 | 473.5 | 0.0 | 744.4 | 0.0 | 1,696.1 |
| Other financial liabilities | Held for trading |
IAS 17 liability | Hedging derivative |
Total fair value |
|||
|---|---|---|---|---|---|---|---|
| Carrying amount |
Fair value | Carrying amount 1) |
Carrying amount |
Fair value | Carrying amount 1) |
||
| Liabilities and equity | |||||||
| Trade accounts payable | 193.0 | 193.3 | 193.3 | ||||
| Other financial liabilities | 323.5 | 405.1 | 405.1 | ||||
| Financial liabilities | 3,925.5 | 4,099.3 | 4,099.3 | ||||
| Liabilities from finance leases | 42.6 | 47.5 | 47.5 | ||||
| Derivative financial liabilities | |||||||
| Hedging derivative | 86.4 | 86.4 | |||||
| Other derivatives | 35.8 | 35.8 | |||||
| Total liabilities and equity | 4,442.0 | 4,697.7 | 35.8 | 42.6 | 47.5 | 86.4 | 4,867.4 |
1) The carrying amount equals the fair value of the financial instruments.
| € million | Measured at acquisition costs | Measured at fair value December 31, | 2014 | ||||
|---|---|---|---|---|---|---|---|
| Recognized in profit or loss |
Hedging derivative |
||||||
| Measurement category according to IAS 39 | Loans and receivables | Held for trading |
Available for sale |
Total fair value |
|||
| Liquid funds |
Carrying amount |
Fair value | Carrying amount 1) |
Carrying amount 1) |
Carrying amount 1) |
||
| Assets | |||||||
| Cash and cash equivalents | 401.1 | 401.1 | |||||
| Trade accounts receivable | 174.7 | 174.7 | 174.7 | ||||
| Other financial receivables and assets | 109.8 | 109.3 | 199.3 | 308.6 | |||
| Other financial assets | |||||||
| Securities | 539.5 | 539.5 | |||||
| Other investments | 76.0 | 76.0 | |||||
| Loans to investments | 126.3 | 124.6 | 124.6 | ||||
| Other loans | 31.5 | 31.5 | 31.5 | ||||
| Derivative financial assets | |||||||
| Hedging derivative | 0.0 | ||||||
| Other derivatives | 0.0 | ||||||
| Total assets | 401.1 | 442.3 | 440.1 | 0.0 | 814.8 | 0.0 | 1,656.0 |
| Other financial liabilities | Held for trading |
IAS 17 liability | Hedging derivative |
Total fair value |
|||
| Liabilities and equity | Carrying amount |
Fair value | Carrying amount 1) |
Carrying amount |
Fair value | Carrying amount 1) |
|
| Trade accounts payable | 181.6 | 187.2 | 187.2 | ||||
| Other financial liabilities | 315.8 | 438.5 | 438.5 | ||||
| Financial liabilities | 4,192.4 | 4,429.1 | 4,429.1 | ||||
| Liabilities from finance leases | 49.4 | 54.9 | 54.9 | ||||
| Derivative financial liabilities | |||||||
| Hedging derivative | 111.7 | 111.7 | |||||
| Other derivatives | 41.7 | 41.7 | |||||
| Total liabilities and equity | 4,689.8 | 5,054.8 | 41.7 | 49.4 | 54.9 | 111.7 | 5,263.1 |
1) The carrying amount equals the fair value of the financial instruments.
Given the short maturities, the carrying amounts of cash and cash equivalents, trade accounts receivable, and current other financial receivables and assets as at the reporting date correspond to the fair value.
The fair values of listed securities are identical to the stock market prices on the reporting date. The valuation of unlisted securities was based on market data applicable on the valuation date using reliable and specialized sources and data providers. The values are determined using established valuation models.
The derivative financial instruments relate to interest rate hedging transactions. The fair values of these financial instruments are determined on the basis of discounted future expected cash flows, using market interest rates corresponding to the terms to maturity.
In order to determine the fair value of financial liabilities, the future expected cash flows are determined and discounted based on the yield curve on the reporting date. The market-driven and maturity-linked risk premium of the respective borrower on the reporting date is added to the cash flows.
There is no price quotation or market price for shares in partnerships as there is no active market for them. Shares in partnerships are recognized at acquisition costs since the fair value cannot be determined reliably. These assets are not intended for sale as at the balance sheet date.
Other investments mainly concern shares in Delhi International Airport Private Ltd. The fair value was determined based on a current bid and taking current foreign currency rates into account.
The fair values of loans to investments and other non-current financial assets are determined as the present value of future cash flows. Discounting was applied using the current maturity-linked interest rate as at the balance sheet date. The fair value of the loan including interest receivables to NCG is mainly affected by cash flow forecasts and interest rate developments.
The carrying amounts of other loans correspond to the respective fair values. Some of the other loans are subject to a market interest rate, and their carrying amounts therefore represent a reliable valuation for their fair values. Another part of the other loans is reported at present value as at the balance sheet date. Here, it is also assumed that the present value equals the fair value. The remaining other loans are promissory note loans with a remaining term of less than three years. Due to the lack of an active market, no information is available on the risk premiums of their respective issuers. As a result, their carrying amounts were used as the most reliable value for their fair values. There is no intention to sell as at the balance sheet date.
Non-current liabilities are recognized at their present value. Interest rates with similar terms on the date of addition are used as a basis for discounting future cash outflows. To determine fair value, the respective cash outflows are discounted at interest rates with similar terms and with the Fraport credit risk as at the reporting date. The carrying amounts of current liabilities are equal to the fair value.
The fair values of financial instruments belong to the following measurement categories of the hierarchy within the meaning of IFRS 13:
| Level 2 Derived prices |
Level 1 Quoted prices |
September 30, 2015 | € million |
|---|---|---|---|
| Assets | |||
| Other financial receivables and financial assets | |||
| 0.0 | 226.7 | 226.7 | Available for sale |
| 68.9 | 0.0 | 121.4 | Loans and receivables |
| Other financial assets | |||
| 81.0 | 349.6 | 430.6 | Securities available for sale |
| 87.1 | 0.0 | 87.1 | Other investments |
| 4.2 | 0.0 | 124.2 | Loans to investments |
| 32.8 | 0.0 | 32.8 | Other loans |
| 274.0 | 576.3 | 1,022.8 | Total assets |
| Liabilities and equity | |||
| 193.3 | 0.0 | 193.3 | Trade accounts payable |
| 405.1 | 0.0 | 405.1 | Other financial liabilities |
| 4,099.3 | 0.0 | 4,099.3 | Financial liabilities |
| 47.5 | 0.0 | 47.5 | Liabilities from finance leases |
| Derivative financial liabilities | |||
| 35.8 | 0.0 | 35.8 | Derivatives without hedging relationships |
| 86.4 | 0.0 | 86.4 | Derivatives with hedging relationships |
| 4,867.4 | 0.0 | 4,867.4 | Total liabilities and equity |
As at December 31, 2014, the financial instruments recognized at fair value in the statement of financial position belonged to the following measurement categories of the hierarchy within the meaning of IFRS 13:
| € million | December 31, 2014 | Level 1 Quoted prices |
Level 2 Derived prices |
Level 3 Prices that cannot be derived |
|---|---|---|---|---|
| Assets | ||||
| Other financial receivables and financial assets | ||||
| Available for sale | 199.3 | 199.3 | 0.0 | 0.0 |
| Loans and receivables | 109.3 | 0.0 | 68.0 | 41.3 |
| Other financial assets | ||||
| Securities available for sale | 539.5 | 469.6 | 69.9 | 0.0 |
| Other investments | 76.0 | 0.0 | 76.0 | 0.0 |
| Loans to investments | 124.6 | 0.0 | 5.8 | 118.8 |
| Other loans | 31.5 | 0.0 | 31.5 | 0.0 |
| Total assets | 1,080.2 | 668.9 | 251.2 | 160.1 |
| Liabilities and equity | ||||
| Trade accounts payable | 187.2 | 0.0 | 187.2 | 0.0 |
| Other financial liabilities | 438.5 | 0.0 | 438.5 | 0.0 |
| Financial liabilities | 4,429.1 | 0.0 | 4,429.1 | 0.0 |
| Liabilities from finance leases | 54.9 | 0.0 | 54.9 | 0.0 |
| Derivative financial liabilities | ||||
| Derivatives without hedging relationships | 41.7 | 0.0 | 41.7 | 0.0 |
| Derivatives with hedging relationships | 111.7 | 0.0 | 111.7 | 0.0 |
| Total liabilities and equity | 5,263.1 | 0.0 | 5,263.1 | 0.0 |
Fraport sold its shares in Air-Transport IT Services, Inc., USA with effect as at April 22, 2015. A profit of €8.0 million resulted from the sale. On September 21, 2015, Fraport also sold its 33.33% share in the capital of FSG Flughafen Service GmbH. The deconsolidation of the company has had no material effect on the Group interim financial statements.
In addition, the scope of consolidation changed as a result of the establishment of two subsidiaries that are fully consolidated in the Fraport Group and not operationally active at this time. Within the scope of consolidation, due to the intention to sell shares in FCS, assets and liabilities of the company are reported as "held for sale" and measured at fair value in accordance with IFRS 5. Furthermore, the remaining shares in the already fully consolidated GCS Gesellschaft für Cleaning Services mbH Co. Airport Frankfurt/Main KG, Frankfurt am Main, were acquired in the reporting period.
As at September 30, 2015, a total of 67 companies including associates were consolidated in the Fraport Group.
There were no material changes arising regarding type and scope as at September 30, 2015. As disclosed in note 50 of the Group notes to the 2014 Annual Report (see 2014 Annual Report beginning on page 185), there continue to be numerous business relationships with related parties, which continue to be concluded under conditions customary in the market.
In the interim reporting period, taxes on income are recognized on the basis of the best estimates made for the weighted average annual income tax rate expected for the full year.
The calculation of earnings per share was based on the following parameters:
| 9M 2015 basic |
9M 2015 diluted |
9M 2014 basic |
9M 2014 diluted |
|
|---|---|---|---|---|
| Group result attributable to shareholders of Fraport AG in € million |
244.0 | 244.0 | 204.4 | 204.4 |
| Weighted average number of shares | 92,283,882 | 92,542,210 | 92,232,239 | 92,882,895 |
| Earnings per €10 share in € | 2.64 | 2.64 | 2.22 | 2.20 |
| Q3 2015 basic |
Q3 2015 diluted |
Q3 2014 basic |
Q3 2014 diluted |
|
| Group result attributable to shareholders of Fraport AG in € million |
146.0 | 146.0 | 116.1 | 116.1 |
| Weighted average number of shares | 92,307,711 | 92,566,039 | 92,265,383 | 92,916,039 |
| Earnings per €10 share in € | 1.58 | 1.58 | 1.26 | 1.25 |
| Table 26 |
The breakdown and development of shareholders' equity from January 1 to September 30, 2015 is presented in the statement of changes in equity in the Group interim financial statements as at September 30, 2015. The statement of changes in equity also shows the development for the previous year.
Compared to December 31, 2014, order commitments related to capital expenditure on non-current assets increased by €29.2 million from €175.0 million to €204.2 million as at September 30, 2015.
Contingent liabilities and other financial commitments decreased by €7.9 million in the period ending September 30, 2015 due to the sale of the shares in Air-Transport IT Services, Inc., USA. There were no further material changes in comparison to December 31, 2014.
To the best of our knowledge, in accordance with the applicable accounting principles for interim financial reporting and taking the generally accepted German accounting principles into account, the Group interim financial statements give a true and fair view of the asset, financial, and earnings position of the Group. Furthermore, the Group interim management report presents the development and performance of the business and situation of the Group in such as way as to give a true and fair view and describes the material opportunities and risks associated with the expected development of the Group for the remaining fiscal year.
Frankfurt am Main, November 5, 2015 Fraport AG Frankfurt Airport Services Worldwide The Executive Board
Dr Schulte Giesen Müller Dr Zieschang
Annual Report 2015 Online publication, press conference, and conference with analysts and investors
Group Interim Report January 1 to March 31, 2016 Online publication, conference call with analysts and investors
Friday, May 20, 2016
Annual General Meeting 2016 Frankfurt am Main, Jahrhunderthalle
Monday, May 23, 2016 Dividend payment
Group Interim Report January 1 to September 30, 2016 Online publication, press conference, and conference call with analysts and investors
(Online publication)
Wednesday, November 11, 2015 October 2015
Thursday, December 10, 2015 November 2015
Friday, January 15, 2016 December 2015/FY 2015
Wednesday, February 10, 2016 January 2016
Thursday, March 10, 2016 February 2016
Tuesday, April 12, 2016 March 2016/Q1 2016
Thursday, May 12, 2016 April 2016
Friday, June 10, 2016 May 2016
Tuesday, July 12, 2016 June 2016/6M 2016
Wednesday, August 10, 2016 July 2016
Monday, September 12, 2016 August 2016
Thursday, October 13, 2016 September 2016/9M 2016
Thursday, November 10, 2016 October 2016
Monday, December 12, 2016 November 2016
Fraport AG Frankfurt Airport Services Worldwide 60547 Frankfurt am Main Germany Phone: +49 (0)1806 3724636 1) Website: www.fraport.com
1) 20 cents (€) per call from a German landline; maximum of 60 cents (€) per call from a German cell phone.
Stefan J. Rüter Head of Finance and Investor Relations Phone: +49 (0)69 690-74840 Fax: +49 (0)69 690-74843 Website: www.meet-ir.com E-mail: [email protected]
Concept and Design heureka GmbH, Essen
Photography Michael Gernhuber, Essen
November 5, 2015
In case of any uncertainties which arise due to errors in translation, the German version of the Group interim report is the binding one.
The use of rounded amounts and percentages means slight discrepancies may occur due to commercial rounding.
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