Interim / Quarterly Report • Aug 6, 2015
Interim / Quarterly Report
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January 1 to June 30, 2015
| Overview of Business Development | 1 |
|---|---|
| Situation of the Group | 2 |
| Changes during the Reporting Period | 2 |
| Economic Report | 2 |
| General Statement of the Executive Board | 2 |
| Economic and Industry-Specific Conditions | 2 |
| Significant Events | 3 |
| Business Development | 3 |
| Results of Operations | 5 |
| Asset and Financial Position | 10 |
| Value Management | 11 |
| Non-financial Performance Indicators | 12 |
| Employees | 13 |
| Research and Development | 13 |
| Share | 14 |
| Significant Events after the Balance Sheet Date | 16 |
| Outlook Report | 16 |
| General Statement of the Executive Board | 16 |
| Risk and Opportunities Report | 17 |
| Business Outlook | 17 |
| Consolidated Income Statement | 20 |
|---|---|
| Consolidated Statement of Comprehensive Income | 21 |
| Consolidated Statement of Financial Position | 22 |
| Consolidated Statement of Cash Flows | 23 |
| Consolidated Statement of Changes in Equity | 24 |
| Segment Reporting | 25 |
| Selected Notes | 26 |
| Accounting and Valuation Policies | 26 |
| Disclosures on Carrying Amounts and Fair Values | 27 |
| Companies included in Consolidation | 32 |
| Disclosures on Related Parties | 32 |
| Disclosures on the Procedure for Determining Taxes on Income |
32 |
| Disclosures on the Calculation of Earnings per Share | 33 |
| Disclosures on the Development of Shareholders' Equity |
33 |
| Disclosures on Contingent Liabilities and Other Financial Commitments |
33 |
| Responsibility Statement | 34 |
|---|---|
| Financial Calendar | 35 |
| Traffic Calendar | 35 |
| Imprint | 35 |
An overview of the calculation of financial key figures and a description of specialist terms are presented on page 206 of the 2014 Annual Report.
4.1% passenger growth at the Frankfurt site.
Mixed performance at Group airports outside of Frankfurt.
Significant rise in Group revenue by 10.6 % to €1,241.9 million due to traffic and price developments, new Group companies, and exchange rate effects.
Revenue adjusted by IFRIC 12 at €1,234.7 million (+10.5%).
Group EBITDA at €385.0 million, an increase of 8.7% against the previous year.
€11.3 million improvement in the Group result to €103.0 million.
Basic earnings per share at €1.06 (+€0.10).
€70.7 million increase in operating cash flow to €276.6 million.
Lower cash flow used in investing activities led to improvement in free cash flow from €107.6 million to €189.7 million.
| € million | 6M 2015 | 6M 2014 | Change | Change in % |
|---|---|---|---|---|
| Revenue | 1,241.9 | 1,122.4 | 119.5 | 10.6 |
| Revenue adjusted by IFRIC 12 | 1,234.7 | 1,117.4 | 117.3 | 10.5 |
| EBITDA | 385.0 | 354.2 | 30.8 | 8.7 |
| EBIT | 221.9 | 205.7 | 16.2 | 7.9 |
| EBT | 152.2 | 129.1 | 23.1 | 17.9 |
| Group result | 103.0 | 91.7 | 11.3 | 12.3 |
| Earnings per share in € (basic) | 1.06 | 0.96 | 0.10 | 10.4 |
| Operating cash flow | 276.6 | 205.9 | 70.7 | 34.3 |
| Free cash flow | 189.7 | 107.6 1) | 82.1 | 76.3 |
| Shareholders' equity | 3,300.9 | 3,286.0 2) | 14.9 | 0.5 |
| Liquidity | 1,056.6 | 1,179.6 2) | –123.0 | –10.4 |
| Net financial debt | 2,993.5 | 3,012.8 2) | –19.3 | –0.6 |
| Total assets | 8,894.3 | 9,013.2 2) | –118.9 | –1.3 |
| Average number of employees | 20,691 | 20,180 | 511 | 2.5 |
| € million | Q2 2015 | Q2 2014 | Change | Change in % |
| Revenue | 666.0 | 602.7 | 63.3 | 10.5 |
| Revenue adjusted by IFRIC 12 | 662.3 | 600.1 | 62.2 | 10.4 |
| EBITDA | 231.9 | 219.7 | 12.2 | 5.6 |
| EBIT | 149.9 | 144.5 | 5.4 | 3.7 |
| EBT | 136.6 | 120.7 | 15.9 | 13.2 |
| Group result | 92.4 | 85.7 | 6.7 | 7.8 |
| Earnings per share in € (basic) | 0.96 | 0.89 | 0.07 | 7.9 |
| Operating cash flow | 162.7 | 131.5 | 31.2 | 23.7 |
| Free cash flow | 124.5 | 73.5 1) | 51.0 | 69.4 |
| Average number of employees | 20,740 | 20,120 | 620 | 3.1 |
| 1) Value adjusted to new definition. | Table 1 |
1) Value adjusted to new definition. 2) Value as at 31 December 2014.
During the reporting period, there were no significant changes to the situation of the Fraport Group presented in the 2014 Group management report with respect to operating activities, strategy, and control (see 2014 Annual Report beginning on page 30). With regard to Group structure, a new service unit "Airport Expansion South" was set up as at June 1, 2015. The new unit is part of the External Activities & Services segment and brings together the activities related to the construction of Terminal 3. No significant changes for the Fraport Group have arisen from the adjustment to Group structure.
In the first six months of fiscal year 2015, passenger traffic increased at the Frankfurt site. Despite strike and weather-related cancellations, over 28.9 million passengers were transported, equivalent to an increase of 4.1%. The cargo tonnage was around 1.0 million metric tons and thus 2.1% lower than 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 aforementioned sites was the tense economic situation in Russia accompanied by the resulting depreciation of the Ruble and the curtailment in consumer 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 previous year, net retail revenue improved by €0.21 per passenger to €3.63. Outside Frankfurt – in addition to the increase in traffic at the Lima site – higher revenue primarily resulted from the first-time recognition 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. Adjusted for the recognition of earnings-neutral capacitive capital expenditure in the Group companies outside Frankfurt, Group revenue rose from €1,117.4 million to €1,234.7 million (+10.5%). Group EBITDA improved by 8.7% to €385.0 million and the Group result was €11.3 million above the previous year at €103.0 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.
Following moderate growth of 0.9% in the previous year the Euro zone economy cooled down slightly in the first half of 2015, but economic growth was nevertheless recorded. For example, European gross domestic product increased by 0.4% in the first quarter (compared to the previous quarter). The second quarter appears to have followed a similar trend. The demand side continued to be characterized by high consumer confidence.
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 an upturn, which, however, still remained modest. The first quarter was disappointing after optimistic forecasts by economic institutions and brought economic growth of 0.3%. Factors supporting economic recovery included among others the low oil price and the devaluation of the Euro. Finally, exports, industrial orders, and production increased and it can therefore be assumed that gross domestic product grew more strongly in the second quarter than at the start of the year
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.
| Changes compared to the previous year in % | Passengers January to May 2015 |
Air freight January to May 2015 |
|
|---|---|---|---|
| Germany | 4.6 | 0.4 | |
| Europe | 5.0 | –0.1 | |
| North America | 4.3 | 5.5 | |
| Latin America | 6.6 | 1.0 | |
| Middle East | 9.3 | 9.6 | |
| Asia/Pacific | 9.4 | 3.6 | |
| Africa | 3.7 | 8.8 | |
| World | 6.3 | 3.8 | |
Source: ACI Passenger Flash and Freight Flash (ACI, July 9, 2015), ADV for Germany, with cargo instead of air freight (June 25, 2015). Table 2
According to the preliminary figures from Airports Council International (ACI), global passenger traffic grew by 6.3% in the January to May 2015 period. In the same period, air freight volume rose by 3.8%. European airports achieved a slightly lower growth in passenger numbers of 5.0%. In air freight, the performance of the European airports at –0.1% was significantly lower than the overall performance. Passenger numbers at German airports grew by 4.6% up to and including May 2015. Cargo tonnage (air freight and air mail) saw weak development with an increase of 0.4% and, like passenger traffic, was 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 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. Fraport therefore still considers the opening of new capacities as necessary.
On April 14, 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. Fraport has issued a Europe-wide notice and invitation to tender for the first phase of the excavation work. Due to the corresponding deadlines, ground works are scheduled to start at the end of the year. Construction time for the terminal, including test phases, is scheduled to be at least seven years, meaning the new terminal is expected to be inaugurated in 2022.
Fraport AG 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, for approval. The airport charges serve to refinance the chargeable costs and are essential to the Aviation segment's revenue performance. According to Section 19b of the German Air Traffic Law (LuftVG), the Hessian Ministry of Economics, Energy, Transport and Regional Development makes the final decision on the proposed regulation of charges in its role as the regulatory authority for Frankfurt Airport.
During the reporting period, there were no further events that had a significant influence on the business development of the Fraport Group.
At over 28.9 million passengers, the highest passenger numbers to date within a first half year were achieved. The numbers for the previous year were exceeded by around 1.1 million passengers (4.1%). In the months of March to June, new peaks were achieved. Without strike and weather-related cancellations, growth would have been 4.7%.
In the first half of 2015, intercontinental traffic (+3.9%), among others, provided growth in passenger numbers. The key driver was Asian traffic, which saw gains not only in the Far Eastern markets, such as China or India, but also in Dubai in the Middle East. The temporary resurgence of North Africa as a tourist destination (which now continues to stagnate following attacks) changed traffic flows, meaning that the Canary Islands and Balearic Islands lost passengers despite the vacation starting earlier. Domestic traffic proved dynamic and grew by 6.2% compared to the first half of the previous year, but also benefited from cancellations in the previous year.
In the first half year, cargo volume fell by 2.1% to around 1.0 million metric tons. A noticeable decrease in cargo throughput with the Far East and Latin America regions had a negative effect on the cargo result.
Due to the strike-related cancellations in the reporting period and the continuing trend towards using larger aircraft, there was only a weak increase in aircraft movements of 0.2% to around 230 thousand in the first six months. Adjusted for the cancellations in the first half of 2015, growth would have been approximately 0.9%. In contrast, maximum take-off weights increased significantly (+3.3%).
Table 3
At Ljubljana Airport, passenger numbers in the first six months of 2015 were 9.7% higher than the previous year at around 627 thousand. 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 first half of 2015 increased significantly by 8.7% to nearly 8.1 million. Both domestic traffic (+11.5%) and international traffic (+5.6%) grew in the reporting period. At around 131 thousand metric tons, cargo throughput was slightly higher than the previous year (+0.3%).
The Bulgarian airports in Varna and Burgas carried some 949 thousand passengers in the reporting period and thus around 12.8% fewer than in the previous year. It is primarily passengers from Russia who were no longer using the two sites.
In the first six months of 2015, around 10.5 million passengers meant a 4.2% decrease at Antalya Airport. Whereas the number of Turkish domestic passengers again rose significantly by 12.1% to almost 3.0 million, the number of international passengers decreased by 9.3% to around 7.6 million. The cause of the decrease was primarily fewer travelers from Russia.
At just under 6.1 million travelers, passenger traffic at St. Petersburg Airport saw a decrease of 4.3% in the reporting period compared with the previous year. Whereas international traffic significantly decreased by 21.5%, national traffic increased 12.9%.
Around 2.5 million passengers meant growth of 5.3% in the first six 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 15.3% to just over 15.7 million. High-volume domestic traffic rose by 12.3% to around 14.7 million passengers. International traffic grew by 85.1% to around 1.0 million passengers.
In the reporting period, Delhi Airport achieved significant growth of 13.2% compared to the previous year with around 22.1 million travelers. Significant growth continued to be reported in domestic traffic, with a strong increase of 17.7 %. International passenger numbers increased by 4.4%. Air freight also significantly increased again (+12.1%).
| Airport 1) | Fraport share in % |
Passengers 2) Cargo (air freight and air mail in m. t.) | Movements | ||||
|---|---|---|---|---|---|---|---|
| 6M 2015 | Change in % | 6M 2015 | Change in % | 6M 2015 | Change in % | ||
| Frankfurt | 100 | 28,922,862 | 4.1 | 1,021,113 | –2.1 | 229,582 | 0.2 |
| Ljubljana | 100 | 626,525 | 9.7 | 4,790 | –1.1 | 15,511 | 0.4 |
| Lima | 70.01 | 8,058,507 | 8.7 | 130,933 | 0.3 | 78,502 | 5.3 |
| Burgas | 60.00 | 546,404 | –18.0 | 5,189 | 88.4 | 5,063 | –12.2 |
| Varna | 60.00 | 402,115 | –4.4 | 46 | >100.0 | 4,034 | –5.0 |
| Antalya | 51.00/50.00 3) | 10,543,711 | –4.2 | n.a. | n.a. | 69,104 | –4.8 |
| St. Petersburg | 35.50 | 6,093,989 | –4.3 | n.a. | n.a. | 67,094 | –2.7 |
| Hanover | 30.00 | 2,458,218 | 5.3 | 8,612 | 17.3 | 36,141 | –2.4 |
| Xi'an | 24.50 | 15,749,784 | 15.3 | 95,900 | 10.8 | 127,958 | 10.3 |
| Delhi | 10.00 | 22,143,671 | 13.2 | 372,186 | 12.1 | 164,409 | 1.7 |
| Airport 1) | Fraport share in % |
Passengers 2) Cargo (air freight and air mail in m. t.) | Movements | ||||
|---|---|---|---|---|---|---|---|
| Q2 2015 | Change in % | Q2 2015 | Change in % | Q2 2015 | Change in % | ||
| Frankfurt | 100 | 16,414,580 | 5.1 | 518,167 | –1.8 | 124,802 | 2.3 |
| Ljubljana | 100 | 390,262 | 16.7 | 2,494 | 0.8 | 8,875 | 4.9 |
| Lima | 70.01 | 4,034,976 | 8.7 | 66,223 | –5.1 | 39,671 | 4.5 |
| Burgas | 60.00 | 516,471 | –19.0 | 3,831 | >100.0 | 4,513 | –15.5 |
| Varna | 60.00 | 335,227 | –6.7 | 28 | 78.1 | 3,083 | –7.1 |
| Antalya | 51.00/50.00 3) | 8,124,278 | –6.9 | n.a. | n.a. | 50,766 | –6.8 |
| St. Petersburg | 35.50 | 3,620,035 | –7.1 | n.a. | n.a. | 36,558 | –6.4 |
| Hanover | 30.00 | 1,483,731 | 5.3 | 3,724 | 10.7 | 20,546 | 0.2 |
| Xi'an | 24.50 | 8,144,970 | 13.3 | 48,757 | 12.6 | 66,042 | 8.7 |
| Delhi | 10.00 | 11,456,855 | 13.4 | 199,055 | 18.7 | 87,611 | 6.7 |
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 six months of fiscal year 2015, the Fraport Group generated revenue of €1,241.9 million. Compared with the same period of the previous year, this was equivalent to an increase of €119.5 million, or 10.6%. 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 €1,234.7 million was €117.3 million (+10.5%) higher than the corresponding figure for the previous year.
At the Frankfurt site, the higher passenger numbers and the increase in airport and infrastructure charges in particular contributed to the rise in revenue. Compared to the previous year, net retail revenue also increased from €3.42 per passenger to €3.63. Outside Frankfurt – in addition to the increase in traffic at the Lima site – higher revenue primarily resulted in an amount of €44.7 million from the first-time recognition of the Group companies AMU Holdings Inc. and Ljubljana, which were acquired in the second half of 2014. There were further positive effects from the translation of revenue from the Group company Lima, which was recognized in US\$, into the Group currency.
Despite the gain from the disposal of the Group company Air-Transport IT Services, other operating income at €17.9 million was €5.7 million below the figure for the previous year (–24.2%). The key reason for the decrease was lower releases of provisions in the Aviation and Ground Handling segments.
At €1,274.5 million, total revenue grew by €114.6 million compared to the previous year (+9.9%). When adjusted for the application of IFRIC 12, at €1,267.3 million, this was €112.4 million above the corresponding figure for the previous year (+9.7%).
The cost of materials rose in the reporting period from €245.4 million to €289.3 million (+17.9%). At €20.8 million, this increased particularly as a result of the first-time recognition of the Group companies AMU Holdings Inc. and Ljubljana, which were acquired in the previous year, and for reasons relating to currency and traffic volumes in the Lima Group company. Adjusted for the recognition of capacitive capital expenditure in Group companies outside Frankfurt, the cost of materials was €282.1 million and was thus €41.7 million above the adjusted figure for the previous year (+17.3%).
At €521.8 million, personnel expenses were €34.0 million higher than the previous year's level of €487.8 million (+7.0%). 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 and AMU Holdings Inc.
Other operating expenses rose from €72.5 million to €78.4 million (+8.1%) primarily due to the new Group companies AMU Holdings Inc. and Ljubljana.
The increase in revenue meant that Group EBITDA rose by €30.8 million to €385.0 million (+8.7%) in the reporting period. The EBITDA margin decreased by 0.6 percentage points to 31.0%. Adjusted for the revenue and expenses from the recognition of capacitive capital expenditure in connection with the application of IFRIC 12, the EBITDA margin decreased from 31.7% to 31.2%.
A €14.6 million increase in depreciation and amortization to €163.1 million (+9.8 %), primarily resulting from the new Group companies AMU Holdings Inc. and Ljubljana, led to Group EBIT of €221.9 million. Compared with the previous year, this corresponded to an increase of €16.2 million or 7.9%.
The financial result improved from –€76.6 million to –€69.7 million (+€6.9 million). The reason for the positive performance was a better interest and other financial result. 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 capitalization of interest expenses relating to construction work amounting to €7.7 million reduced interest expenses (6M 2014: €7.5 million).
At €152.2 million, Group EBT exceeded the figure of the previous year by €23.1 million (+17.9%). At a tax rate of 32.3% (6M 2014: 29.0%), the Group result was up by €11.3 million to €103.0 million compared with the previous year (+12.3%). At €1.06, basic earnings per share were €0.10 higher than the figure for the previous year (+10.4%).
| € million | 6M 2015 | 6M 2014 | Change | Change in % |
|---|---|---|---|---|
| Revenue | 444.0 | 418.4 | 25.6 | 6.1 |
| Personnel expenses | 158.3 | 148.4 | 9.9 | 6.7 |
| EBITDA | 102.4 | 104.4 | –2.0 | –1.9 |
| EBITDA margin | 23.1% | 25.0% | –1.9 PP | – |
| EBIT | 42.9 | 46.1 | –3.2 | –6.9 |
| Average number of employees |
5,995 | 6,080 | –85 | –1.4 |
| € million | Q2 2015 | Q2 2014 | Change | Change in % |
| Revenue | 243.6 | 229.0 | 14.6 | 6.4 |
| Personnel expenses | 81.6 | 76.1 | 5.5 | 7.2 |
| EBITDA | 71.7 | 74.1 | –2.4 | –3.2 |
| EBITDA margin | 29.4% | 32.4% | –3.0 PP | – |
| EBIT | 42.7 | 44.5 | –1.8 | –4.0 |
| Average number of employees |
6,015 | 5,974 | 41 | 0.7 |
| in % | € million | 6M 2015 | 6M 2014 | Change | Change in % |
|---|---|---|---|---|---|
| Revenue | 233.1 | 218.7 | 14.4 | 6.6 | |
| Personnel expenses | 24.7 | 23.9 | 0.8 | 3.3 | |
| EBITDA | 183.9 | 172.3 | 11.6 | 6.7 | |
| EBITDA margin | 78.9% | 78.8% | 0.1 PP | – | |
| EBIT | 142.6 | 131.1 | 11.5 | 8.8 | |
| Average number of employees |
617 | 620 | –3 | –0.5 | |
| in % | € million | Q2 2015 | Q2 2014 | Change | Change in % |
| Revenue | 119.7 | 112.2 | 7.5 | 6.7 | |
| Personnel expenses | 12.6 | 12.0 | 0.6 | 5.0 | |
| EBITDA | 94.8 | 89.9 | 4.9 | 5.5 | |
| EBITDA margin | 79.2% | 80.1% | –0.9 PP | – | |
| EBIT | 74.3 | 69.2 | 5.1 | 7.4 | |
| Average number of employees |
623 | 611 | 12 | 2.0 | |
| Table 4 | Table 5 |
In the first six months of 2015, revenue in the Aviation segment increased from €418.4 million to €444.0 million (+6.1%). 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. Despite an increase in revenue of €25.6 million, segment EBITDA decreased by €2.0 million to €102.4 million (–1.9%). Key reasons for the decrease were an increase in personnel expenses, lower other operating income, and higher non-staff costs (cost of materials and other operating expenses). Personnel expenses increased by €9.9 million to €158.3 million (+6.7%) mainly due to collective wage agreements in the security business and public sector. Other operating income for the segment fell compared to the previous year from €16.7 million to €10.1 million (–€6.6 million), mainly due to lower releases of provisions. Higher non-capitalizable expenses relating to capital expenditure and the creation of provisions, among others, led to an increase in non-staff costs.
Depreciation and amortization increased slightly by €1.2 million to €59.5 million (+2.1%). Segment EBIT decreased correspondingly from €46.1 million to €42.9 million, which equates to a fall of 6.9%.
The Retail & Real Estate segment achieved revenue of €233.1 million and thus an increase of €14.4 million in the first half of 2015 compared to the previous year (+6.6%). The growth in revenue was primarily due to the higher passenger numbers in Frankfurt, and particularly 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 from €3.42 in the first half of 2014 to €3.63 in the reporting period (+6.1%).
Higher operating expenses led to segment EBITDA of €183.9 million. Compared with the same period of the previous year, this was equivalent to an increase of €11.6 million (+6.7%). Nearly flat depreciation and amortization meant that the increase in EBITDA was reflected almost entirely in EBIT. At €142.6 million, this was €11.5 million higher than the figure of the previous year (+8.8%).
| 6M 2015 | 6M 2014 | Change in % |
|
|---|---|---|---|
| 333.0 | 317.5 | 15.5 | 4.9 |
| 220.9 | 208.5 | 12.4 | 5.9 |
| 12.6 | 11.2 | 1.4 | 12.5 |
| 3.8% | 3.5% | 0.3 PP | – |
| –8.6 | –7.3 | –1.3 | – |
| 9,342 | 9,020 | 322 | 3.6 |
| Q2 2015 | Q2 2014 | Change | Change in % |
| 178.3 | 168.8 | 9.5 | 5.6 |
| 113.0 | 106.1 | 6.9 | 6.5 |
| 12.7 | 14.0 | –1.3 | –9.3 |
| 7.1% | 8.3% | –1.2 PP | – |
| 0.9 | 4.6 | –3.7 | –80.4 |
| 9,179 | 8,791 | 4.4 | |
| Change 388 |
| in % | € million | 6M 2015 | 6M 2014 | Change | Change in % |
|---|---|---|---|---|---|
| Revenue | 231.8 | 167.8 | 64.0 | 38.1 | |
| Personnel expenses | 117.9 | 107.0 | 10.9 | 10.2 | |
| EBITDA | 86.1 | 66.3 | 19.8 | 29.9 | |
| EBITDA margin | 37.1% | 39.5% | –2.4 PP | – | |
| EBIT | 45.0 | 35.8 | 9.2 | 25.7 | |
| Average number of employees |
4,737 | 4,460 | 277 | 6.2 | |
| in % | € million | Q2 2015 | Q2 2014 | Change | Change in % |
| Revenue | 124.4 | 92.7 | 31.7 | 34.2 | |
| Personnel expenses | 58.7 | 53.2 | 5.5 | 10.3 | |
| EBITDA | 52.7 | 41.7 | 11.0 | 26.4 | |
| EBITDA margin | 42.4% | 45.0% | –2.6 PP | – | |
| EBIT | 32.0 | 26.2 | 5.8 | 22.1 | |
| Average number of employees |
4,923 | 4,744 | 179 | 3.8 | |
| 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 4.9% to €333.0 million (+€15.5 million) in the Ground Handling segment in the first six months of 2015. A traffic-volumerelated increase in personnel and the collective wage agreement in the public sector noticeably increased personnel expenses in the first half year.
Despite the increase in personnel expenses and lower other operating income, which largely resulted from releases of provisions in the previous year, segment EBITDA improved from €11.2 million to €12.6 million (+12.5%) owing to the increase in revenue. Higher depreciation and amortization led to a decrease in segment EBIT to –€8.6 million. Compared with the previous year, this meant a decrease of €1.3 million.
The External Activities & Services segment reported a significant increase in revenue by €64.0 million to €231.8 million (+38.1%) in the first six months of 2015. Adjusted for the recognition of earnings-neutral capacitive capital expenditure in connection with the application of IFRIC 12, revenue in the reporting period rose from €162.8 million in the previous year to €224.6 million (+38.0%). In addition to the increase in traffic at the Lima site, higher revenue of €44.7 million resulted from the first-time recognition of the Group companies AMU Holdings Inc. and Ljubljana, which were acquired in the second half of 2014. There were further positive effects from the translation of revenue from the Group company Lima, which was recognized in US\$, into the Group currency. Operating expenses also rose in the reporting period, largely as a result of the first-time recognition of the new Group companies AMU Holdings Inc. and Ljubljana, and for reasons relating to currency and traffic volumes in the Lima Group company.
Segment EBITDA increased by €19.8 million to €86.1 million (+29.9%) due to the increase in revenue. The increase in depreciation and amortization, which primarily resulted from the new Group companies AMU Holdings Inc. and Ljubljana, led to a segment EBIT of €45.0 million (+25.7%).
Table 8
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 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 6M 2015 | 6M 2014 | Δ % | 6M 2015 | 6M 2014 | Δ % | 6M 2015 | 6M 2014 | Δ % | 6M 2015 | 6M 2014 | Δ % | ||
| AMU Holdings Inc. 2) | 100 | 28.7 | – | – | 6.3 | – | 2.2 | – | – | 2.2 | – | – | |
| Ljubljana 2) | 100 | 16.0 | – | – | 5.6 | – | 0.6 | – | – | 0.6 | – | – | |
| Lima | 70.01 | 131.3 | 99.7 | 31.7 | 47.4 | 36.2 | 30.9 | 38.5 | 29.1 | 32.3 | 19.7 | 12.9 | 52.7 |
| Twin Star | 60 | 13.4 | 15.6 | –14.1 | 5.8 | 7.2 | –19.4 | 0.1 | 1.5 | –93.3 | –3.3 | –2.2 | – |
| Group companies accounted for using the equity method |
Share in % |
Revenue in € million 1) | EBITDA in € million | EBIT in € million | Result in € million | ||||||||
| 6M 2015 | 6M 2014 | Δ % | 6M 2015 | 6M 2014 | Δ % | 6M 2015 | 6M 2014 | Δ % | 6M 2015 | 6M 2014 | Δ % | ||
| Antalya 3) | 51/50 | 107.7 | 118.2 | –8.9 | 87.1 | 98.7 | –11.8 | 38.2 | 49.5 | –22.8 | 0.8 | 7.8 | –89.7 |
| Pulkovo/Thalita | 35.5 | 114.5 | 141.7 | –19.2 | 55.5 | 39.9 | 39.1 | 35.5 | 19.4 | 83.0 | 72.0 | –29.9 | >100 |
| Hanover | 30 | 69.7 | 66.8 | 4.3 | 12.0 | 10.7 | 12.1 | 2.0 | 0.7 | >100 | –0.5 | –2.3 | – |
| Xi'an 4) | 24.5 | 92.0 | 67.6 | 36.1 | 43.9 | 28.1 | 56.2 | 20.6 | 10.2 | >100 | 11.8 | 7.0 | 68.6 |
| Fully consolidated Group companies |
Share in % |
Revenue in € million 1) | EBITDA in € million | EBIT in € million | Result in € million | ||||||||
| Q2 2015 | Q2 2014 | Δ % | Q2 2015 | Q2 2014 | Δ % | Q2 2015 | Q2 2014 | Δ % | Q2 2015 | Q2 2014 | Δ % | ||
| AMU Holdings Inc. 2) | 100 | 15.3 | – | – | 3.6 | – | – | 1.6 | – | – | 1.4 | – | – |
| Ljubljana 2) | 100 | 9.2 | – | – | 3.9 | – | – | 1.4 | – | – | 1.2 | – | – |
| Lima | 70.01 | 67.8 | 50.7 | 33.7 | 24.5 | 18.3 | 33.9 | 20.0 | 14.7 | 36.1 | 9.5 | 6.2 | 53.2 |
| Twin Star | 60 | 11.5 | 13.8 | –16.7 | 7.3 | 9.0 | –18.9 | 4.5 | 6.2 | –27.4 | 2.7 | 4.3 | –37.2 |
| Group companies Share Revenue in € million 1) accounted for using the in % equity method |
EBITDA in € million | EBIT in € million | Result in € million | ||||||||||
| Q2 2015 | Q2 2014 | Δ % | Q2 2015 | Q2 2014 | Δ % | Q2 2015 | Q2 2014 | Δ % | Q2 2015 | Q2 2014 | Δ % | ||
| Antalya 3) | 51/50 | 86.7 | 97.7 | –11.3 | 75.5 | 86.6 | –12.8 | 51.1 | 62.0 | –17.6 | 31.5 | 40.9 | –23.0 |
| Pulkovo/Thalita | 35.5 | 68.9 | 87.0 | –20.8 | 36.3 | 31.8 | 14.2 | 26.3 | 22.0 | 19.5 | 38.1 | 41.1 | –7.3 |
| Hanover | 30 | 38.7 | 36.8 | 5.2 | 9.3 | 8.1 | 14.8 | 4.3 | 3.0 | 43.3 | 3.5 | 1.8 | 94.4 |
| Xi'an 4) | 24.5 | 48.1 | 34.8 | 38.2 | 24.7 | 14.4 | 71.5 | 12.7 | 5.5 | >100 | 8.0 | 3.0 | >100 |
1) Revenue adjusted by IFRIC 12: Lima 6M 2015: €124.2 million (6M 2014: €95.0 million), Q2 2015: €64.2 million (Q2 2014: €48.4 million); Twin Star 6M 2015: €13.3 million (6M 2014: €15.3 million), Q2 2015: €11.5 million (Q2 2014: €13.5 million);
Pulkovo/Thalita 6M 2015: €100.7 million (6M 2014: €109.1 million), Q2 2015: €57.1 million (Q2 2014: €66.6 million).
2) Figures since consolidation in the Fraport Group.
3) Voting rights: 51%, dividend share: 50%.
4) Figures according to the separate financial statement.
In the first half of 2015, AMU Holdings Inc., which has been consolidated in the Fraport Group since August 2014, generated revenue of €28.7 million, EBITDA of €6.3 million, EBIT of €2.2 million and a result of €2.2 million. Whereas the appreciation of the US\$ had a negative impact on the purchasing power of international passengers, this appreciation increased 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 €16.0 million, EBITDA of €5.6 million, EBIT of €0.6 million and a result of €0.6 million in the first six months of 2015.
Helped by good traffic development and a positive exchange rate effect from the translation of the US\$, the Lima Group company reported strong growth in revenue, EBITDA, EBIT, and the result in the first half of 2015 with growth of €31.6 million, €11.2 million, €9.4 million, and €6.8 million respectively. The exchange rate effect increased revenue by around €24.4 million, EBITDA by around €8.8 million, EBIT by approximately €7.1 million, and the result by around €3.6 million.
For reasons relating to traffic volumes, the Group company Twin Star recorded a decrease in revenue, EBITDA, EBIT, and the result in the low single-digit million € range in the first half of 2015.
Likewise due to a lower volume of traffic, the Antalya Group company, which is accounted for using the equity method, saw a decrease in revenue, EBITDA, and EBIT in a range of around €10 million in the first six months of 2015. The Group company's result decreased from €7.8 million to €0.8 million (–89.7%).
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 €109.1 million to €100.7 million (–7.7%) in the reporting period due to the exchange rate. The Group company's EBITDA of €55.5 million (+39.1%), EBIT of €35.5 million (+83.0%), and result of €72.0 million (>100%) significantly exceeded the figures for the previous year. While currency translation of financial liabilities had a significant negative impact of – €10.1 million on the previous year's financial result, currency translation had a positive effect of €97.2 million in the reporting period.
The increase in traffic experienced by the Hanover Group company, which is accounted for using the equity method, led to growth in revenue, EBITDA, EBIT, and the result in the low single-digit million € range.
The Xi'an Group company, which is accounted for using the equity method, saw an increase in traffic in the first six months of 2015, which was reflected in its revenue, EBITDA, EBIT, and result for the period.
In comparison to the 2014 balance sheet date, the total assets of the Fraport Group as at June 30, 2015 decreased slightly from €9,013.2 million to €8,894.3 million (–1.3%). The reasons for the decrease were lower non-current assets and non-current liabilities.
Non-current assets decreased 2.2% compared to December 31, 2014 from €8,081.8 million to €7,906.3 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 regular depreciation and amortization. Current assets increased from €931.9 million to €988.0 million (+6.0%) in the reporting period. On one hand, the item "trade accounts receivable" rose mainly due to the reporting date while the item "other receivables and financial assets" increased by €15.5 million. This reflected, among others, the aforementioned reclassifications on the grounds of maturity as well as additions and disposals of current financial assets. The item "non-current assets held for sale" as at June 30, 2015 was linked to the intention to sell 51% of the capital shares in the Group company Fraport Cargo Services GmbH (FCS) (see Significant Events after the Balance Sheet Date beginning on page 16).
Despite the pay-out of the profit earmarked for distribution for the previous fiscal year, shareholders' equity in the reporting period increased slightly from €3,286.0 million to €3,300.9 million (+0.5%). The rise was due to the positive Group result and exchange rate effects. After deducting "non-controlling interests", the shareholders' equity ratio was 36.4% as at June 30, 2015 and was thus 2.0 percentage points higher than the figure as at December 31, 2014 (+34.4%).
At €4,457.6 million, non-current liabilities were €450.5 million below the figure as at the 2014 balance sheet date (–9.2%). The main reason for the lower figure was a decrease of €420.5 million in non-current financial liabilities, which were reclassified to current financial liabilities due to their remaining term. Current liabilities recorded an increase from €819.1 million to €1,135.8 million (+38.7 %). The reason for the increase was particularly an increase in current financial liabilities. Whereas the reclassifications on grounds of maturity as well as additions of current financial liabilities led to an increase, repayments reduced the item.
As at June 30, 2015, gross debt stood at €4,050.1 million, a €142.3 million decrease from the level on December 31, 2014 (–3.4%). After deducting the Group's liquidity of €1,056.6 million (December 31, 2014: €1,179.6 million), the net financial debt of €2,993.5 million was 0.6% lower in comparison with the 2014 balance sheet date (December 31, 2014: €3,012.8 million). The gearing ratio reached a level of 92.5% (December 31, 2014: 97.3%).
In the first six months of fiscal year 2015, additions to non-current assets of the Fraport Group were €108.1 million and thus €112.0 million lower than the figure for the previous year (6M 2014: €220.1 million). Of this amount, €87.4 million related to "property, plant, and equipment" (6M 2014: €134.5 million), €4.5 million to "financial assets" (Q1 2014: €74.8 million), €5.1 million to "investment property" (6M 2014: €3.9 million) and €11.1 million to "other intangible assets" and "airport operating projects" (6M 2014: €6.9 million). Capitalization of interest expenses related to construction work amounted to €7.7 million (6M 2014: €7.5 million).
At €90.6 million, the greater part of additions related to Fraport AG (6M 2014: €132.9 million). The focus was on capital expenditure on the existing infrastructure and preparations for Terminal 3.
In the first half of 2015, the Fraport Group generated cash flow from operating activities (operating cash flow) of €276.6 million, which was €70.7 million higher compared to the previous year (6M 2014: €205.9 million). The rise in operating activities resulted firstly from the improvement in the operating result and secondly from cash inflows to current assets. Payments for interest and taxes on income totaling €73.9 million were lower than in the same period of the previous year (6M 2014: €90.2 million).
At €75.7 million, cash flow used in investing activities without investments in cash deposits and securities was lower than the previous year particularly due to lower capital expenditure in property, plant, and equipment (6M 2014: €97.7 million). Correspondingly, free cash flow improved in the first half of 2015 from €107.6 million to €189.7 million (+€82.1 million). The sale of consolidated subsidiaries related to the sale of shares in Air-Transport IT Services Inc. as at April 22, 2015. 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 €58.2 million in the first half of 2015. In the same period of the previous year it was €73.9 million.
Within financing activities, non-current financial liabilities of €272.0 million (6M 2014: €154.3 million) were repaid, meaning that the cash flow used in financing activities was €320.8 million in the reporting period (6M 2014: €272.2 million). The acquisition of "noncontrolling interests" resulted from the takeover 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 June 30, 2015. Cash and cash equivalents in the statement of cash flows therefore came to €189.5 million as at June 30, 2015. The following table shows a reconciliation to cash and cash equivalents as shown in the statement of financial position.
| € million | June 30, 2015 | June 30, 2014 | December 31, 2014 |
|---|---|---|---|
| Cash and cash equivalents as at the consolidated statement of cash flows | 189.5 | 139.3 | 167.8 |
| Time deposits with a duration of more than three months | 185.0 | 202.8 | 210.0 |
| Restricted cash | 23.3 | 23.3 | 23.3 |
| Cash and cash equivalents as at the consolidated statement of financial position | 397.8 | 365.4 | 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.
Table 10
At 80% in the first half of 2015, global satisfaction (general passenger satisfaction with the Frankfurt site) was slightly below the previous year's level (6M 2014: 81%). Following 79% in the first quarter, global satisfaction in the second quarter was 80% (in each case –1 percentage points compared to the same quarter of the previous year).
The punctuality rate at the Frankfurt site in the first half of 2015 was 80.2% (6M 2014: 84.9%). After the first quarter, at a level of 81.5%, it was already significantly below the previous quarter's record level of 88.3%, which was brought about by favorable weather conditions. The ratio in the second quarter was 79.2%, 2.6 percentage points lower than in the second quarter of the previous year (81.8%).
At 98.7%, baggage connectivity at the Frankfurt site remained at the high level of the previous year in the first half of 2015. After a slight decrease in the first quarter of 2015 (98.7 % compared to 98.9% in the first quarter of 2014), the connectivity improved by 0.1 percentage points to 98.7% in the second quarter of the fiscal year (Q2 2014: 98.6%).
The equipment availability rate reached a value of 99.0 % in the reporting period and was thus 1.0 percentage points above the previous year's figure. The figure increased from 97.4% to 98.9% in the second quarter (+1.5 percentage points). With an average availability of 98.6%, the availability of escalators showed particular improvement compared to the previous year (6M 2014: 96.8%).
The employee satisfaction survey will be started toward the end of the third quarter of 2015 in the 14 participating Group companies. The survey will be 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 six months of 2015 was 697 compared to 662 work accidents in the previous year (+5.3%). The reason for the increase was, in particular, more accidents in the Group company FraSec Fraport Security Services.
| Indicators | 6M 2015 | 6M 2014 | Change | Change in % |
|---|---|---|---|---|
| Global satisfaction (Frankfurt) 1) | 80% | 81% | –1.0 PP | – |
| Punctuality rate (Frankfurt) | 80.2% | 84.9% | –4.7 PP | – |
| Baggage connectivity (Frankfurt) | 98.7% | 98.8% | –0.1 PP | – |
| Equipment availability rate (Frankfurt) | 99.0% | 98.0% | 1.0 PP | – |
| Employee satisfaction 2) | – | – | – | – |
| Total number of work accidents 3) | 697 | 662 | 35 | 5.3 |
| Indicators | Q2 2015 | Q2 2014 | Change | Change in % |
| Global satisfaction (Frankfurt) 1) | 80% | 81% | –1.0 PP | – |
| Punctuality rate (Frankfurt) | 79.2% | 81.8% | –2.6 PP | – |
| Baggage connectivity (Frankfurt) | 98.7% | 98.6% | 0.1 PP | – |
| Equipment availability rate (Frankfurt) | 98.9% | 97.4% | 1.5 PP | – |
| Employee satisfaction 2) | – | – | – | – |
| Total number of work accidents 3) | 383 | 343 | 40 | 11.7 |
1) Global satisfaction is only surveyed quarterly at the Frankfurt site.
The Group airports in which Fraport holds a share of at least 50% are surveyed 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 | 6M 2015 | 6M 2014 | Change | Change in % |
|---|---|---|---|---|
| Fraport Group | 20,691 | 20,180 | 511 | 2.5 |
| thereof Fraport AG | 10,581 | 10,789 | –208 | –1.9 |
| thereof Group companies | 10,110 | 9,391 | 719 | 7.7 |
| thereof in Germany | 18,897 | 18,641 | 256 | 1.4 |
| thereof abroad | 1,794 | 1,539 | 255 | 16.6 |
| Q2 2015 | Q2 2014 | Change | Change in % | |
| Fraport Group | 20,741 | 20,120 | 621 | 3.1 |
| thereof Fraport AG | 10,565 | 10,762 | –197 | –1.8 |
| thereof Group companies | 10,176 | 9,358 | 818 | 8.7 |
| thereof in Germany | 18,767 | 18,307 | 460 | 2.5 |
| thereof abroad | 1,974 | 1,813 | 161 | 8.9 |
| 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 20,691 in the first half of 2015 (6M 2014: 20,180). 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 (+378 and +95 employees, respectively). The reduction in headcount at Fraport AG (–208 employees), which was primarily due to the use of fluctuation combined with higher employment in the Group companies, had the opposite effect on the Group-wide headcount. Outside of Germany, headcount increased by 255 to 1,794 despite a decrease in employment in the Group company Twin Star for reasons relating to traffic volumes (–100 employees) and despite the sale of the Group company Air-Transport IT Services (–23 employees). The increase was primarily due to the incorporation of the new Group companies Ljubljana (+400 employees) and AMU Holdings Inc. (+27 employees).
| Total employees as at the reporting date | June 30, 2015 | June 30, 2014 | Change | Change in % |
|---|---|---|---|---|
| Fraport Group | 23,973 | 23,093 | 880 | 3.8 |
| thereof Fraport AG | 11,537 | 11,787 | –250 | –2.1 |
| thereof Group companies | 12,436 | 11,306 | 1,130 | 10.0 |
| thereof in Germany | 20,919 | 20,214 | 705 | 3.5 |
| thereof abroad | 3,054 | 2,879 | 175 | 6.1 |
Table 12
Compared with the same date in the previous year, the total number of employees in the Fraport Group (employees including joint ventures, apprentices, and employees on leave) increased by 880 to 23,973 as at June 30, 2015 (June 30, 2014: 23,093 employees). Despite a decrease of 250 employees at Fraport AG, there was an increase in the Group-wide headcount as at the balance sheet date as a result of higher employment in the Group companies. In Germany, the increase was primarily due to the Group company APS Airport Personal Service (+421 employees). Outside Germany, primarily the incorporation of the new Group companies Ljubljana (+414 employees) and AMU Holdings Inc. (+27 employees) led to a higher headcount.
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 DRS 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 performed positively in the first half of 2015. At 10,945 points, Germany's benchmark DAX closed 11.6% higher than the 2014 fiscal year's closing price. The MDAX achieved an increase of 15.9% in the same period. After significant 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. 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.
Within this favorable market environment, the Fraport share also performed well. Following share price growth of 15.9% in the first quarter of the fiscal year, the Fraport share gained again in the second quarter, increasing 1.2% to €56.34. Cumulatively, the growth in the first half was therefore 17.3% or, taking account of the dividend payment of €1.35 per share on June 1, 2015, 20.1%.
The shares of other stock-exchange listed European airports performed as follows in the reporting period: Aéroports de Paris +1.7%, Vienna Airport +1.3%, and Zurich Airport +8.6%. Compared with its issue price of €58 per share, the Spanish airport operator AENA gained 61.6% between its initial listing on February 11, 2015 and June 30, 2015.
| 6M 2015 | Q2 2015 | |
|---|---|---|
| Opening price in € | 48.04 | 55.67 |
| Closing price in € | 56.34 | 56.34 |
| Change 1) | 8.30 | 0.67 |
| Change in % 2) | 17.3% | 1.2% |
| Highest price in € (daily closing price) | 62.30 | 62.30 |
| Lowest price in € (daily closing price) | 48.04 | 55.72 |
| Average price in € (daily closing prices) | 55.74 | 58.11 |
| Average trading volume per day (number) | 137,589 | 148,938 |
| Market capitalization in € million (quarterly closing price) | 5,203 | 5,203 |
| 1) Change including dividends: 6M 2015: +€9.65, Q2 2015: +€2.02. | Table 13 |
2) Change including dividends: 6M 2015: +20.1%, Q2 2015: +3.6%
Graphic 2
Fraport was notified of the following changes in shareholder structure in the reporting period:
| Voting right holder | Date of change | Type of change | New proportion of voting rights |
|---|---|---|---|
| RARE Infrastructure Limited 1) | March 10, 2015 | Fell below the 5% threshold | 4.87% |
| 1) 4.87% of the voting rights was attributable to RARE Infrastructure Limited pursuant to Section 22 (1) sentence 1 no. 6 WpHG | Table 14 |
in conjunction with Section 22 (1) sentence 2 WpHG.
As at June 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 June 30, 2015 and therefore may differ from the figures given at the time of reporting or from the respective shareholders' own disclosures. Interests of less than 3% are classified under "free float".
Dividend for the 2014 fiscal year (resolution for the appropriation of profit)
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%).
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 will sell 51% of the Group company FCS. FCS generated revenue of €59.6 million and a net result of –€6.3 million in the previous fiscal year. Subject to the approval of the antitrust authorities, the sale of the interest is expected to close by September 2015. The remaining capital shares in the Group company FCS will subsequently be included in the Group using the equity method.
There were no other significant events for the Fraport Group after the balance sheet date.
The Executive Board continues to expect that the economic and industry-specific conditions in 2015 will have a positive impact on passenger numbers in the Fraport Group. At the Frankfurt site, this will primarily lead to higher revenue in the Aviation and Retail & Real Estate segments. In addition to traffic growth, the increase in airport and infrastructure charges will have a revenue-increasing effect at the Frankfurt site. In external business, the Executive Board expects higher contributions primarily from the Group company Lima and from the first-time full-year consolidation of the Group companies AMU Holdings Inc. and Ljubljana. Across the Group, 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. 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. Despite these uncertainties, the Executive Board continues to expect an increase in Group revenue and the Group results.
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 earnings. In connection with the planned acquisition of the concession agreements to operate 14 Greek regional airports, it is currently not certain whether or when the transaction can be completed in view of the political and macroeconomic development in Greece. The forecast for the current 2015 fiscal year does not include any effects from 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 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 June 30, 2015.
The 2014 Annual Report beginning on page 86 reported on the risk that describes the negative equity situation of Northern Capital Gateway. The shareholders of Thalita Trading Limited, Cyprus, restructured the loans granted by them to Northern Capital Gateway in the second quarter of 2015. This will involve the assumption 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.
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 forecasted situation of the Fraport Group for 2015 as presented in the 2014 Group management report remains unchanged with respect to operating activities, structure, strategy, and control of the Group (see 2014 Annual Report beginning on page 91).
Following global economic growth of around 3.4% in 2014, financial and economic institutions continue to expect the global economy to expand in the 2015 fiscal year. Generally, a growth rate of 3.2% to 3.3% is assumed and a growth rate of 4.1% is assumed for global trade. The turbulences surrounding Greece and China's stock exchanges are not expected to represent a serious risk for the global economy – despite significant effects in both countries. With regard to the € to US\$ exchange rate, it is assumed that the depreciation trend will continue in a weakened form if at all in the rest of 2015, partly because the impact of the European bond purchase program has largely been included in the current prices. Whether the currently relatively low oil price will continue is questionable. While various forecasts assume an increase in the next twelve months, the agreement on the nuclear dispute with Iran, which could now export oil again, could militate against these forecasts.
German industry's order development recently gained momentum. However, developments in Greece will have to be kept under observation. The crisis there could break through to other Euro countries and lead to less investments, which would affect the exportdependent German economy. The forecasts of German GDP growth in 2015 currently range from 1.6% to 1.9%.
The USA will continue to show positive growth in 2015 (GDP forecast of 2.3% to 2.5%), although the weather-related slump in the first quarter led to less growth. China is likely to grow by about 7% this year and therefore remain behind the performance of previous years. For most of the emerging countries, growth rates are expected that will be significantly higher than the growth of industrial countries. A slight upturn is anticipated in the Euro zone – which will continue to be burdened with uncertainty regarding financial policy. After growth of 0.8% in 2014, economic growth of approximately 1.5% is forecasted for 2015.
The following growth rates are expected for the countries with significant Fraport investments: Slovenia +2.1%, Peru +3.3%, Bulgaria +1.2%, Turkey +3.0%, Russia –3.2%, and China +7.0%. Sources: IMF (April, July 2015), Deutsche Bank Research (July 2015), DekaBank (July, August 2015).
No 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%. Cargo 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 in the first half of 2015, the Executive Board continues to expect a growth rate of between 2% and 3% for passenger traffic at the Frankfurt site for full year 2015. Although passenger traffic grew in the first half of 2015 above the aforementioned range at 4.1%, the Executive Board cannot rule out further strikes in air traffic and therefore abides by the stated outlook. Further negative effects may continue to result from the airlines' short-term yield and capacity management and from the extraordinarily favorable weather conditions in the 2014 fiscal year. With regard to cargo tonnage handled, the Executive Board expects development below that of the market of between 0% and –2% for the Frankfurt site for 2015 (forecast at the start of the fiscal year: growth of up to 3%). Due to economic and political crises, particularly in some emerging countries, the cargo outlook continues to be subject to uncertainty.
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 high 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 six months 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 at the Xi'an site at a low double-digit growth rate in the 2015 fiscal year. The growth rate of the new Ljubljana Group company is forecasted at a higher single-digit growth rate.
On the basis of business development in the first six months of 2015 and the aforementioned forecasted business development, the Executive Board maintains its earnings outlook for the fiscal year (see 2014 Annual Report beginning on page 93). Group revenue – adjusted by IFRIC 12 – of between approximately €2.55 billion and some €2.6 billion continues to be expected. Group EBITDA will lie between approximately €820 million and some €840 million, and Group EBIT between approximately €500 million and some €520 million. A level between some €405 million and some €425 million is forecasted for Group EBT and a figure of between approximately €265 million and some €285 million is forecasted for the Group result.
Compared to the forecasted segment development of the Ground Handling and External Activities & Services segments, there have been no significant improvements or deteriorations in the first six months of 2015, with the result that the forecast given by the Executive Board at the start of the fiscal year is still valid (see 2014 Annual Report beginning on page 93).
With regard to the Aviation segment, following the end of the first six months the Executive Board expects an increase in revenue that will be slightly higher than the forecast at the start of the fiscal year (forecast at the start of the fiscal year: increase of up to 5%). The segment EBITDA and EBIT will largely be within the range given at the start of the fiscal year (forecast at the start of the fiscal year: growth between around €5 million and €15 million).
With regard to the Retail & Real Estate segment, following the first six months of 2015, the Executive Board expects better revenue performance than forecasted at the start of the fiscal year (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).
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. Also the development of the Group companies Twin Star, Antalya, and St. Petersburg, which are allocated to the External Activities & Services segment, may be positively as well as negatively influenced by the further economic and political development in Russia.
Following the end of the first six months of the 2015 fiscal year, the Executive Board expects a higher increase in Group shareholders' equity and the shareholders' equity ratio than assumed at the start of the fiscal year (forecast at the start of the fiscal year: a slight increase compared to the figure as at the 2014 balance sheet date in each case). As a consequence of the higher shareholders' equity and the continuing positive development of the free cash flow, the gearing ratio will also decrease more than forecasted (forecast at the start of the fiscal year: decrease of up to approximately five percentage points). The Executive Board confirms its other forecasts for the asset and financial position (see 2014 Annual Report beginning on page 93).
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 | 6M 2015 | 6M 2014 | Q2 2015 | Q2 2014 |
|---|---|---|---|---|
| Revenue | 1,241.9 | 1,122.4 | 666.0 | 602.7 |
| Change in work-in-process | 0.5 | 0.4 | 0.3 | 0.3 |
| Other internal work capitalized | 14.2 | 13.5 | 7.1 | 6.8 |
| Other operating income | 17.9 | 23.6 | 13.3 | 18.5 |
| Total revenue | 1,274.5 | 1,159.9 | 686.7 | 628.3 |
| Cost of materials | –289.3 | –245.4 | –146.0 | –123.6 |
| Personnel expenses | –521.8 | –487.8 | –265.9 | –247.4 |
| Other operating expenses | –78.4 | –72.5 | –42.9 | –37.6 |
| EBITDA | 385.0 | 354.2 | 231.9 | 219.7 |
| Depreciation and amortization | –163.1 | –148.5 | –82.0 | –75.2 |
| EBIT/Operating result | 221.9 | 205.7 | 149.9 | 144.5 |
| Interest income | 14.3 | 18.6 | 6.5 | 9.5 |
| Interest expenses | –82.8 | –91.7 | –40.7 | –47.0 |
| Result from companies accounted for using the equity method | 1.9 | 3.6 | 15.0 | 17.4 |
| Other financial result | –3.1 | –7.1 | 5.9 | –3.7 |
| Financial result | –69.7 | –76.6 | –13.3 | –23.8 |
| EBT/Result from ordinary operations | 152.2 | 129.1 | 136.6 | 120.7 |
| Taxes on income | –49.2 | –37.4 | –44.2 | –35.0 |
| Group result | 103.0 | 91.7 | 92.4 | 85.7 |
| thereof profit attributable to non-controlling interests | 5.0 | 3.4 | 4.3 | 3.9 |
| thereof profit attributable to shareholders of Fraport AG | 98.0 | 88.3 | 88.1 | 81.8 |
| Earnings per €10 share in € | ||||
| basic | 1.06 | 0.96 | 0.96 | 0.89 |
| diluted | 1.06 | 0.95 | 0.95 | 0.88 |
| € million | 6M 2015 | 6M 2014 | Q2 2015 | Q2 2014 |
|---|---|---|---|---|
| Group result | 103.0 | 91.7 | 92.4 | 85.7 |
| Remeasurements of defined benefit plans | –0.5 | 0.0 | –0.5 | 0.0 |
| (Deferred taxes related to those items | 0.2 | 0.0 | 0.2 | 0.0) |
| Items that will not be reclassified subsequently to profit or loss | –0.3 | 0.0 | –0.3 | 0.0 |
| Fair value changes of derivatives | ||||
| Changes directly recognized in equity | 20.4 | 19.8 | 23.7 | 31.1 |
| thereof realized gains (+)/losses (–) | 0.4 | 22.7 | 10.7 | 32.6 |
| 20.0 | –2.9 | 13.0 | –1.5 | |
| (Deferred taxes related to those items | –6.2 | 0.9 | –4.0 | 0.5) |
| Fair value changes of financial instruments held for sale | ||||
| Changes directly recognized in equity | 11.2 | 12.0 | –3.1 | 6.0 |
| thereof realized gains (+)/losses (–) | 4.6 | 0.0 | 4.6 | 0.0 |
| 6.6 | 12.0 | –7.7 | 6.0 | |
| (Deferred taxes related to those items | 1.5 | –1.9 | 1.8 | –1.1) |
| Currency translation of foreign Group companies | 13.1 | 0.4 | –5.5 | 0.7 |
| Income and expenses from companies accounted for using the equity method directly recognized in equity |
7.3 | –1.4 | –6.1 | 1.3 |
| (Deferred taxes related to those items | 0.5 | 0.1 | 0.1 | 0.0) |
| Items that will be reclassified subsequently to profit or loss | 42.8 | 7.2 | –8.4 | 5.9 |
| Other result after deferred taxes | 42.5 | 7.2 | –8.7 | 5.9 |
| Comprehensive income | 145.5 | 98.9 | 83.7 | 91.6 |
| thereof attributable to non-controlling interests | 7.3 | 3.5 | 3.1 | 4.1 |
| thereof attributable to shareholders of Fraport AG | 138.2 | 95.4 | 80.6 | 87.5 |
Table 16
| € million | June 30, 2015 | December 31, 2014 |
|---|---|---|
| Non-current assets | ||
| Goodwill | 41.7 | 41.7 |
| Investments in airport operating projects | 497.6 | 479.2 |
| Other intangible assets | 154.3 | 157.1 |
| Property, plant, and equipment | 6,055.6 | 6,127.7 |
| Investment property | 67.4 | 63.0 |
| Investments in companies accounted for using the equity method | 203.1 | 216.9 |
| Other financial assets | 656.8 | 773.3 |
| Other receivables and financial assets | 187.1 | 181.1 |
| Income tax receivables | 10.7 | 10.2 |
| Deferred tax assets | 32.0 | 31.1 |
| 7,906.3 | 8,081.3 | |
| Current assets | ||
| Inventories | 44.9 | 43.7 |
| Trade accounts receivable | 198.7 | 174.7 |
| Other receivables and financial assets | 313.1 | 297.6 |
| Income tax receivables | 7.4 | 7.7 |
| Cash and cash equivalents | 397.8 | 401.1 |
| 961.9 | 924.8 | |
| Non-current assets held for sale | 26.1 | 7.1 |
| 988.0 | 931.9 | |
| Total | 8,894.3 | 9,013.2 |
| € million | June 30, 2015 | December 31, 2014 |
|---|---|---|
| Shareholders' equity | ||
| Issued capital | 923.1 | 922.7 |
| Capital reserve | 594.3 | 592.3 |
| Revenue reserves | 1,719.6 | 1,706.1 |
| Equity attributable to shareholders of Fraport AG | 3,237.0 | 3,221.1 |
| Non-controlling interests | 63.9 | 64.9 |
| 3,300.9 | 3,286.0 | |
| Non-current liabilities | ||
| Financial liabilities | 3,453.8 | 3,874.3 |
| Trade accounts payable | 43.6 | 47.1 |
| Other liabilities | 466.1 | 497.5 |
| Deferred tax liabilities | 159.6 | 158.7 |
| Provisions for pensions and similar obligations | 33.9 | 33.7 |
| Provisions for income taxes | 70.9 | 68.8 |
| Other provisions | 229.7 | 228.0 |
| 4,457.6 | 4,908.1 | |
| Current liabilities | ||
| Financial liabilities | 596.3 | 318.1 |
| Trade accounts payable | 136.7 | 134.5 |
| Other liabilities | 154.7 | 123.7 |
| Provisions for income taxes | 21.1 | 14.7 |
| Other provisions | 212.7 | 223.8 |
| 1,121.5 | 814.8 | |
| Liabilities in the context of non-current assets held for sale | 14.3 | 4.3 |
| 1,135.8 | 819.1 | |
| Total | 8,894.3 | 9,013.2 |
| € million | 6M 2015 | 6M 2014 | Q2 2015 | Q2 2014 |
|---|---|---|---|---|
| Profit attributable to shareholders of Fraport AG | 98.0 | 88.3 | 88.1 | 81.8 |
| Profit attributable to non-controlling interests | 5.0 | 3.4 | 4.3 | 3.9 |
| Adjustments for | ||||
| Taxes on income | 49.2 | 37.4 | 44.2 | 35.0 |
| Depreciation and amortization | 163.1 | 148.5 | 82.0 | 75.2 |
| Interest result | 68.5 | 73.1 | 34.2 | 37.5 |
| Gains/losses from disposal of non-current assets | 3.0 | –0.1 | 2.9 | 0.0 |
| Others | 1.3 | 1.0 | –6.5 | 0.5 |
| Fair value changes of companies accounted for using the equity method | –1.9 | –3.6 | –15.0 | –17.4 |
| Changes in inventories | –1.2 | –1.0 | –0.4 | –0.7 |
| Changes in receivables and financial assets | –23.6 | –41.9 | –3.9 | 6.8 |
| Changes in liabilities | –7.1 | 13.6 | –25.6 | 2.5 |
| Changes in provisions | –3.8 | –22.6 | 5.5 | –30.3 |
| Operating activities | 350.5 | 296.1 | 209.8 | 194.8 |
| Financial activities | ||||
| Interest paid | –46.5 | –55.2 | –32.1 | –38.6 |
| Interest received | 10.6 | 14.3 | 6.3 | 8.5 |
| Taxes on income paid | –38.0 | –49.3 | –21.3 | –33.2 |
| Cash flow from operating activities | 276.6 | 205.9 | 162.7 | 131.5 |
| Investments in airport operating projects | –7.7 | –6.0 | –3.7 | –3.3 |
| Capital expenditure for other intangible assets | –3.4 | –0.9 | –0.7 | 0.8 |
| Capital expenditure for property, plant, and equipment | –92.5 | –110.7 | –46.2 | –63.7 |
| Investment property | –6.1 | –5.9 | –2.4 | –2.4 |
| Sale of fully consolidated subsidiaries | 10.0 | 0.0 | 10.0 | 0.0 |
| Dividends from companies accounted for using the equity method | 22.8 | 25.2 | 14.8 | 10.6 |
| Proceeds from disposal of non-current assets | 1.2 | 0.6 | –0.9 | –0.3 |
| Cash flow used in investing activities without investments in cash deposits and securities |
–75.7 | –97.7 | –29.1 | –58.3 |
| Financial investments in securities and promissory note loans | –125.9 | –375.3 | –50.0 | –162.1 |
| Proceeds from disposal of securities and promissory note loans | 234.8 | 417.3 | 128.9 | 232.8 |
| Decrease of time deposits with a duration of more than three months | 25.0 | 129.6 | –30.0 | 91.2 |
| Cash flow from investing activities | 58.2 | 73.9 | 19.8 | 103.6 |
| Dividends paid to shareholders of Fraport AG | –124.6 | –115.3 | –124.6 | –115.3 |
| Dividends paid to non-controlling interests | –3.6 | –2.4 | –1.0 | –1.3 |
| Capital increase | 2.4 | 2.5 | –0.7 | 2.5 |
| Acquisition of non-controlling interests | –4.1 | 0.0 | 2.4 | 0.0 |
| Repayment of long-term financial liabilities | –272.0 | –154.3 | –266.7 | –90.0 |
| Changes in short-term financial liabilities | 81.1 | –2.7 | 76.1 | –4.5 |
| Cash flow used in financing activities | –320.8 | –272.2 | –314.5 | –208.6 |
| Change in cash and cash equivalents | 14.0 | 7.6 | –132.0 | 26.5 |
| Cash and cash equivalents as at January 1 and April 1 | 167.8 | 131.2 | 325.5 | 112.1 |
| Foreign currency translation effects on cash and cash equivalents | 7.7 | 0.5 | –4.0 | 0.7 |
| Cash and cash equivalents as at June 30 | 189.5 | 139.3 | 189.5 | 139.3 |
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 | – | – | – | 10.8 | – | 10.8 | 10.8 | 2.3 | 13.1 |
| Income and expenses from companies accounted for using the equity method directly recognized in equity |
– | – | – | 9.9 | –2.1 | 7.8 | 7.8 | – | 7.8 |
| Remeasurements of defined benefit plans | –0.3 | –0.3 | –0.3 | –0.3 | |||||
| Fair value changes of financial instruments held for sale | – | – | – | – | 8.1 | 8.1 | 8.1 | – | 8.1 |
| Fair value changes of derivatives | – | – | – | 13.8 | 13.8 | 13.8 | – | 13.8 | |
| Other result | 0.0 | 0.0 | –0.3 | 20.7 | 19.8 | 40.2 | 40.2 | 2.3 | 42.5 |
| Issue of shares for employee investment plan | 0.4 | 2.0 | – | – | – | – | 2.4 | – | 2.4 |
| Distributions | – | – | –124.6 | – | – | –124.6 | –124.6 | –3.6 | –128.2 |
| Group result | – | – | 98.0 | – | – | 98.0 | 98.0 | 5.0 | 103.0 |
| Transactions with non-controlling interests | – | – | – | – | – | – | –4.7 | –4.7 | |
| Consolidation activities/other changes | – | – | –0.1 | – | – | –0.1 | –0.1 | 0.0 | –0.1 |
| Balance as at June 30, 2015 | 923.1 | 594.3 | 1,704.8 | 47.3 | –32.5 | 1,719.6 | 3,237.0 | 63.9 | 3,300.9 |
| 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 | – | – | – | 0.3 | – | 0.3 | 0.3 | 0.1 | 0.4 |
| Income and expenses from companies accounted for using the equity method directly recognized in equity |
– | – | – | –1.0 | –0.3 | –1.3 | –1.3 | – | –1.3 |
| Fair value changes of financial instruments held for sale | – | – | – | – | 10.1 | 10.1 | 10.1 | – | 10.1 |
| Fair value changes of derivatives | – | – | – | – | –2.0 | –2.0 | –2.0 | – | –2.0 |
| Other result | 0.0 | 0.0 | 0.0 | –0.7 | 7.8 | 7.1 | 7.1 | 0.1 | 7.2 |
| 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 |
| Value of performed services (fair value) | – | – | – | – | – | – | 0.0 | – | 0.0 |
| Distributions | – | – | –115.3 | – | – | –115.3 | –115.3 | –2.4 | –117.7 |
| Group result | – | – | 88.3 | – | – | 88.3 | 88.3 | 3.4 | 91.7 |
| Consolidation activities/other changes | – | – | 0.2 | – | – | 0.2 | 0.2 | –0.3 | –0.1 |
| Balance as at June 30, 2014 | 922.7 | 592.3 | 1,591.6 | 3.0 | –73.5 | 1,521.1 | 3,036.1 | 46.5 | 3,082.6 |
Table 20
| € million | Aviation | Retail & Real Estate |
Ground Handling |
External Activities & Services |
Adjustment | Group | |
|---|---|---|---|---|---|---|---|
| 6M 2015 | 444.0 | 233.1 | 333.0 | 231.8 | 1,241.9 | ||
| Revenue | 6M 2014 | 418.4 | 218.7 | 317.5 | 167.8 | 1,122.4 | |
| 6M 2015 | 10.1 | 5.3 | 5.2 | 12.0 | 32.6 | ||
| Other income | 6M 2014 | 16.7 | 5.8 | 8.5 | 6.5 | 37.5 | |
| 6M 2015 | 454.1 | 238.4 | 338.2 | 243.8 | 1,274.5 | ||
| Third-party revenue | 6M 2014 | 435.1 | 224.5 | 326.0 | 174.3 | 1,159.9 | |
| 6M 2015 | 40.3 | 118.9 | 21.8 | 180.1 | –361.1 | ||
| Inter-segment revenue | 6M 2014 | 38.4 | 115.2 | 16.5 | 174.2 | –344.3 | |
| 6M 2015 | 494.4 | 357.3 | 360.0 | 423.9 | –361.1 | 1,274.5 | |
| Total revenue | 6M 2014 | 473.5 | 339.7 | 342.5 | 348.5 | –344.3 | 1,159.9 |
| 6M 2015 | 102.4 | 183.9 | 12.6 | 86.1 | 385.0 | ||
| EBITDA | 6M 2014 | 104.4 | 172.3 | 11.2 | 66.3 | 354.2 | |
| 6M 2015 | 59.5 | 41.3 | 21.2 | 41.1 | 163.1 | ||
| Depreciation and amortization of segment assets | 6M 2014 | 58.3 | 41.2 | 18.5 | 30.5 | 148.5 | |
| 6M 2015 | 42.9 | 142.6 | –8.6 | 45.0 | 221.9 | ||
| Segment result (EBIT) | 6M 2014 | 46.1 | 131.1 | –7.3 | 35.8 | 205.7 | |
| June 30, 2015 | 3,983.2 | 2,466.5 | 653.3 | 1,741.2 | 50.1 | 8,894.3 | |
| 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 June 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 (DRS 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 June 30, 2015 and December 31, 2014, respectively:
| € million | Measured at amortized cost |
Measured at fair value | June 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 | 397.8 | 397.8 | |||||
| Trade accounts receivable | 198.7 | 198.7 | 198.7 | ||||
| Other financial receivables and assets | 119.4 | 118.9 | 216.3 | 335.2 | |||
| Other financial assets | |||||||
| Securities | 412.1 | 412.1 | |||||
| Other investments | 87.2 | 87.2 | |||||
| Loans to affiliated companies | 124.6 | 123.3 | 123.3 | ||||
| Other loans | 32.9 | 32.9 | 32.9 | ||||
| Derivative financial assets | |||||||
| Hedging derivative | 0.0 | ||||||
| Other derivatives | 0.0 | ||||||
| Total assets | 397.8 | 475.6 | 473.8 | 0.0 | 715.6 | 0.0 | 1,587.2 |
| Held for trading |
IAS 17 liability | Hedging derivative Carrying amount 1) |
Total fair value |
|||
|---|---|---|---|---|---|---|
| Carrying amount |
Fair value | Carrying amount 1) |
Carrying amount |
Fair value | ||
| 180.3 | 185.0 | 185.0 | ||||
| 311.2 | 429.2 | 429.2 | ||||
| 4,050.1 | 4,229.5 | 4,229.5 | ||||
| 36.0 | 39.3 | 39.3 | ||||
| 91.6 | 91.6 | |||||
| 35.6 | 35.6 | |||||
| 4,541.6 | 4,843.7 | 35.6 | 36.0 | 39.3 | 91.6 | 5,010.2 |
| Other financial liabilities |
1) The carrying amount equals the fair value of the financial instruments.
Table 22
Table 23
| € million | Measured at amortized cost Loans and receivables |
Measured at fair value December 31, 2014 |
|||||
|---|---|---|---|---|---|---|---|
| Recognized in profit or loss |
Available for sale |
Hedging derivative |
Total fair value |
||||
| Measurement category according to IAS 39 | Held for trading |
||||||
| 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 affiliated companies | 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 affiliated companies and other financial non-current 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 four 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:
| June 30, 2015 | Level 1 Quoted prices |
Level 2 Derived prices |
Level 3 Prices that cannot be derived |
|---|---|---|---|
| 216.3 | 216.3 | 0.0 | 0.0 |
| 118.9 | 0.0 | 71.2 | 47.7 |
| 412.1 | 311.2 | 100.9 | 0.0 |
| 87.2 | 0.0 | 87.2 | 0.0 |
| 123.3 | 0.0 | 4.2 | 119.1 |
| 32.9 | 0.0 | 32.9 | 0.0 |
| 990.7 | 527.5 | 296.4 | 166.8 |
| 185.0 | 0.0 | 185.0 | 0.0 |
| 429.2 | 0.0 | 429.2 | 0.0 |
| 4,229.5 | 0.0 | 4,229.5 | 0.0 |
| 39.3 | 0.0 | 39.3 | 0.0 |
| 35.6 | 0.0 | 35.6 | 0.0 |
| 91.6 | 0.0 | 91.6 | 0.0 |
| 5,010.2 | 0.0 | 5,010.2 | 0.0 |
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 affiliated companies | 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 |
Table 25
Fraport AG 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. 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 June 30, 2015, a total of 68 companies including associates were consolidated in the Fraport Group.
There were no material changes arising regarding type and scope as at June 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:
| 6M 2015 basic |
6M 2015 diluted |
6M 2014 basic |
6M 2014 diluted |
|---|---|---|---|
| 98.0 | 98.0 | 88.3 | 88.3 |
| 92,271,967 | 92,530,295 | 92,215,667 | 92,866,323 |
| 1.06 | 1.06 | 0.96 | 0.95 |
| Q2 2015 basic |
Q2 2015 diluted |
Q2 2014 basic |
Q2 2014 diluted |
| 88.1 | 88.1 | 81.8 | 81.8 |
| 92,278,552 | 92,536,880 | 92,217,684 | 92,868,343 |
The breakdown and development of shareholders' equity from January 1 to June 30, 2015 is presented in the statement of changes in equity in the Group interim financial statements as at June 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 €18.0 million from €175.0 million to €193.0 million.
Contingent liabilities and other financial commitments decreased by €7.9 million in the period ending June 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 a 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, August 6, 2015 Fraport AG Frankfurt Airport Services Worldwide The Executive Board
Dr Schulte Giesen Müller Dr Zieschang
Group Interim Report January 1 to September 30, 2015 Online publication, press conference, and conference call with analysts and investors
Annual Report 2015 Online publication, press conference, and conference call with analysts and investors
Group Interim Report January 1 to March 31, 2016 Online publication, conference call with analysts and investors
Annual General Meeting 2016 Frankfurt am Main, Jahrhunderthalle
Monday, May 23, 2016 Dividend payment
Group Interim Report January 1 to June 30, 2016 Online publication, conference call with analysts and investors
Group Interim Report January 1 to September 30, 2016 Online publication, press conference, and conference call with analysts and investors
(Online publication)
Wednesday, August 12, 2015 July 2015
Thursday, September 10, 2015 August 2015
Monday, October 12, 2015 September 2015/9M 2015
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) Internet: 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 Internet: www.meet-ir.com E-mail: [email protected]
Layout and Design heureka GmbH, Essen
Photography Michael Gernhuber, Essen
August 6, 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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