Interim / Quarterly Report • Aug 7, 2014
Interim / Quarterly Report
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January 1 to June 30, 2014
| Group Interim Management Report | 1 |
|---|---|
| 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 | 2 |
| Business Development | 3 |
| Results of Operations | 4 |
| Asset and Financial Position | 7 |
| Value Management | 9 |
| Non-Financial Performance Indicators | 9 |
| Employees | 9 |
| Research and Development 10 | |
| Share and Investor Relations 10 | |
| Significant Events after the Balance Sheet Date 11 | |
| Outlook Report 11 | |
| General Statement of the Executive Board 11 | |
| Risk and Opportunities Report 11 | |
| Business Outlook 12 | |
| Consolidated Interim Financial Statements as at June 30, 2014 14 | |
| Consolidated Income Statement 14 | |
| Consolidated Statement of Comprehensive Income 15 | |
| Consolidated Statement of Financial Position 16 | |
| Consolidated Statement of Cash Flows 17 | |
| Consolidated Statement of Changes in Equity 18 | |
| Segment Reporting 19 | |
| Selected Notes 20 | |
| Accounting and Valuation Policies 20 Adjustment of the Consolidated Income Statement 21 |
|
| Adjustment of the Consolidated Statement of Comprehensive Income 21 | |
| Adjustment of the Consolidated Statement of Financial Position 22 | |
| Adjustment of the Consolidated Statement of Cash Flows 23 | |
| Adjustment of the Segment Reporting 23 | |
| Disclosures on Carrying Amounts and Fair Values 24 | |
| Disclosures on Companies Included in Consolidation 27 | |
| Disclosures on Related Parties 27 | |
| Disclosures on the Procedure for Determining Taxes on Income 27 | |
| Disclosures on the Calculation of Earnings per Share 27 | |
| Disclosures on the Development of Shareholders' Equity 27 | |
| Stock Options Plans 27 | |
| Disclosures on Contingent Liabilities and Other Financial Commitments 28 | |
| Responsibility Statement 28 | |
| Financial Calendar 29 | |
| Traffic Calendar 29 | |
| Imprint 29 | |
As of the start of 2014, Fraport has applied the new IFRS 11 accounting standard "Joint Arrangements" for the first time. IFRS 11 stipulates that joint ventures that have until now been proportionately consolidated in the consolidated financial statements must be accounted for and consolidated using the equity method from January 1, 2014 onwards. At Fraport, this has a particular impact on the Group companies of
Antalya, N*ICE Aircraft Services & Support GmbH, Medical Airport Service GmbH and AirIT Systems GmbH. The effects resulting from the first-time application of IFRS 11 on the Group interim financial statements are presented in the notes to this report.
An overview of the calculation of financial key figures and a description of specialist terms are presented on page 200 of the 2013 Annual Report.
| € million | 6M 2014 | 6M 2013 | Change | Change |
|---|---|---|---|---|
| in % | ||||
| Revenue | 1,122.4 | 1,140.7 | – 18.3 | – 1.6 |
| Revenue adjusted by IFRIC 12 | 1,117.4 | 1,106.1 | 11.3 | 1.0 |
| EBITDA | 354.2 | 322.0 | 32.2 | 10.0 |
| EBIT | 205.7 | 179.7 | 26.0 | 14.5 |
| EBT | 129.1 | 117.6 | 11.5 | 9.8 |
| Group result | 91.7 | 82.1 | 9.6 | 11.7 |
| Earnings per share in € (basic) | 0.96 | 0.86 | 0.1 | 12.0 |
| Operating cash flow | 205.9 | 205.7 | 0.2 | 0.1 |
| Free cash flow | 82.4 | – 25.2 | 107.6 | – |
| Shareholders' equity | 3,100.5 | 3,116.7 1 | – 16.2 | – 0.5 |
| Liquidity | 1,210.0 | 1,368.1 1 | – 158.1 | – 11.6 |
| Net financial debt | 2,904.4 | 2,870.6 1 | 33.8 | 1.2 |
| Total assets | 8,698.5 | 8,835.8 1 | – 137.3 | – 1.6 |
| Average number of employees | 20,180 | 20,595 | – 415 | 2.0 |
| 1 Figures as at December 31, 2013. |
| € million | Q2 2014 | Q2 2013 | Change | Change |
|---|---|---|---|---|
| in % | ||||
| Revenue | 602.7 | 610.9 | – 8.2 | – 1.3 |
| Revenue adjusted by IFRIC 12 | 600.1 | 594.2 | 5.9 | 1.0 |
| EBITDA | 219.7 | 200.5 | 19.2 | 9.6 |
| EBIT | 144.5 | 129.5 | 15.0 | 11.6 |
| EBT | 120.7 | 111.3 | 9.4 | 8.4 |
| Group result | 85.7 | 77.6 | 8.1 | 10.4 |
| Earnings per share in € (basic) | 0.89 | 0.80 | 0.09 | 11.3 |
| Operating cash flow | 131.5 | 138.4 | – 6.9 | – 5.0 |
| Free cash flow | 62.9 | 21.2 | 41.7 | – |
| Average number of employees | 20,120 | 20,663 | – 543 | – 2.6 |
During the reporting period, there have been no significant changes to the situation of the Fraport Group presented in the 2013 Group management report with respect to operating activities, structure, strategy and control (see 2013 Annual Report beginning on page 26).
Operationally, the first six months of the 2014 fiscal year at the Frankfurt site were characterized by a positive development in passenger traffic. Despite a large number of strikerelated flight cancellations, passenger numbers rose 2.4% to around 27.8 million travelers. Cargo tonnage rose by 2.5% to just over 1.0 million metric tons. Passenger numbers at the Group airports outside Germany continued to increase very positively.
In addition to the operating development, in particular the increase in airport and infrastructure charges at the Frankfurt site had a revenue-increasing effect. Adjusted for the recognition of earnings-neutral capacitive capital expenditure in the Group companies Twin Star and Lima, Group revenue grew by 1.0% to €1,117.4 million. Group EBITDA improved by 10.0% to €354.2 million and the Group result was €9.6 million above the previous year at €91.7 million.
Also due to the ongoing solid liquidity resources, the Executive Board describes the Fraport Group's performance in the first half of 2014 overall as positive.
The global economy remained on a growth path in the first half of 2014. Industrialized economies remained key drivers of the economic upturn and trade, although the US economy performed worse in the first quarter of 2014 than previously expected. The weaker momentum of the emerging markets continued to depress the global economy. The Euro zone continued to recover from the recession, even though there continued to be considerable differences between the member states. Supported by Germany's domestic economy, the upturn in the country's economy stabilized in the first half of 2014. Private consumption and capital expenditure remained on an upward trend.
During the reporting period, there were no changes to the legal environment that had a significant influence on the business development of the Fraport Group.
According to the preliminary figures from Airports Council International (ACI), global passenger traffic grew by 4.8% in the January to May 2014 period. In the same period, air freight volume rose by 3.9%. The European airports managed to achieve disproportionate growth rates both in passenger volume (+5.4%) and in air freight tonnage (+5.1%). In particular, the decreasing effects of the debt crisis and corresponding catch-up effects led to an upturn. The passenger volume of the German airports grew by 2.0% up to and including June 2014. The cargo tonnage (air freight and air mail) also developed positively with an increase of 2.2%.
| Changes compared to the | Passengers January | Air freight January |
|---|---|---|
| previous year in % | to May 2014 | to May 2014 |
| Germany (January to June 2014) | 2.0 | 2.2 |
| Europe | 5.4 | 5.1 |
| North America | 2.6 | 2.2 |
| Latin America | 8.3 | 1.1 |
| Middle East | 10.0 | 3.9 |
| Asia/Pacific | 5.4 | 5.0 |
| Africa | 1.0 | – 1.6 |
| World | 4.8 | 3.9 |
Source: ACI Passenger Flash and Freight Flash January to May 2014 (ACI, July 8, 2014), ADV for Germany – cargo in place of air freight, figures from January to June 2014 (July 28, 2014).
The Hessian Ministry of Economics, Energy, Transport and Regional Development significantly further extended the zoning decision of December 18, 2007 with the zoning supplement decision of May 26, 2014 regarding existing protection requirements in respect of wake turbulences in relation to the protected zone compared to the first zoning supplement decision concerning wake turbulences of May 10, 2013. More detailed information on the effects on the interim financial statements of the Fraport Group as at June 30, 2014 can be found in the chapter "asset and financial position" beginning on page 7 of this report.
The economic expansion also led to positive effects at the Frankfurt site. Almost 27.8 million passengers meant growth of 2.4% and a new high in the first half of 2014. However, the strikes by security staff, the public sector and Lufthansa pilots in February through April had negative effects. Around 340,000 passengers were affected by the 2,800 or so strikerelated flight cancellations. Without this effect, passenger growth would have been around 1 to 1.5 percentage points higher in the reporting period.
European traffic showed the strongest growth (+6.5%). Increases in the flight schedule in the 2013/14 winter season and in the 2014 summer season largely benefited this region. Southern European traffic additionally benefited from the weakness of North Africa. Domestic traffic grew by a slightly less than average 1.9% with a considerable increase in seat capacity. Positive effects resulted, for example, from the high number of weather-related cancellations in the previous year. However, the aforementioned strikes had negative effects. Due to the reductions in the number of services in the regions of South America, Central Africa and the Far East, intercontinental traffic fell by 2.4%. In addition to the reductions in the number of services, political unrest in North and Central Africa and in Asia led to declines in demand.
The positive trend in the cargo division continued in the first half of 2014. Around 1.0 million metric tons handled meant growth of 2.5%. Cargo traffic above all benefited from the development of the economy. Headed by the Chinese market, the Far East and Middle East regions increased disproportionately. European traffic recorded growth of 3.5% and the high-volume North American traffic saw an increase of 1.2%.
Due to the strike-related cancellations and the airlines' continuing consolidation measures, the number of aircraft movements stagnated in the first half at around 229,000 (– 0.1%). Without the flight cancellations, growth of at least 1% would have been achieved. A higher growth rate of at least one percentage point might also been expected in the maximum takeoff weights (+1.9%). The proportion of transfer passengers remained high at around 54%.
At Lima Airport, the number of passengers in the first half of 2014 increased by 4.1% to just over 7.4 million. Despite the economic slowdown in Peru and neighboring countries, both domestic traffic (+5.2%) and international traffic (+2.9%) contributed to the passenger growth. At around 131,000 metric tons, cargo throughput was slightly above the previous year's level (+2.1%).
The Bulgarian airports at Varna and Burgas carried almost 1.1 million passengers in the reporting period and thus around 68,000 more than in the previous year (+6.7%). While the Burgas site recorded a 5.7% increase to around 667,000 passengers, the airport in Varna exhibited significant growth of 8.3% to almost 421,000 passengers.
In the first half of 2014, around 11.0 million passengers carried meant growth of 6.5% compared to the previous year for Antalya Airport. While the number of international passengers increased by 5.1%, the number of passengers traveling within Turkey continued to increase by 11.1% noticeably.
With around 6.4 million travelers, passenger traffic at St. Petersburg Airport achieved a 12.8% increase in the first half of 2014 compared with the previous year. In national traffic, significant growth of 25,4% was recorded.
| Airports 1 | Fraport | Passengers 2 | Cargo (air freight and air mail in m.t.) | Movements | |||
|---|---|---|---|---|---|---|---|
| share | 6M 2014 | Change in % | 6M 2014 | Change in % | 6M 2014 | Change in % | |
| in % | over 2013 | over 2013 | over 2013 | ||||
| Frankfurt | 100.00 | 27,787,828 | 2.4 | 1,042,927 | 2.5 | 229,039 | – 0.1 |
| Lima | 70.01 | 7,410,625 | 4.1 | 130,584 | 2.1 | 74,539 | – 0.1 |
| Burgas | 60.00 | 666,533 | 5.7 | 2,754 | > 100 | 5,766 | 3.6 |
| Varna | 60.00 | 420,650 | 8.3 | 22 | 64.5 | 4,245 | 6.7 |
| Antalya | 51.00/50.00 3 | 11,003,326 | 6.5 | n. a. | n. a. | 72,555 | 5.5 |
| St. Petersburg | 35.50 | 6,367,697 | 12.8 | n. a. | n. a. | 68,936 | 10.6 |
| Hanover | 30.00 | 2,334,266 | – 2.3 | 7,344 | – 1.4 | 37,011 | 1.9 |
| Xi'an | 24.50 | 13,654,108 | 10.6 | 86,545 | 4.4 | 116,022 | 7.6 |
| Delhi | 10.00 | 19,555,780 | 4.9 | 324,207 | 17.1 | 158,817 | 4.5 |
1 In addition, Fraport holds 100% of the shares in the operating company of the new Dakar Airport, which is currently under construction. The management contracts to operate the airports in Riyadh and Jeddah ended as planned in June 2014. The management contract to operate Cairo Airport expired in January 2014. 2 Commercial traffic only; in + out + transit.
3Voting rights: 51 %, Equity share: 50 %.
With 2.3 million passengers, Hanover Airport recorded a 2.3% decline in passenger volume compared with the previous year. The main cause of this was a drop in passenger volume at Air Berlin.
Xi'an Airport continued to show a strong performance, with passenger volume increased by 10.6% to almost 13.7 million in the first six months of 2014. Both domestic traffic, which had a high volume at around 13.1 million passengers, and international traffic (around 564,000 passengers) contributed to the positive first-half result with growth rates of 10.2% and 21.2%, respectively.
In the first half of 2014, Delhi Airport – with almost 19.6 million travelers – achieved a significant increase of 4.9% compared to the previous year. While there was continued strong growth in domestic traffic of 7.2%, international passenger volume increased slightly by 0.6%.
In the first six months of the 2014 fiscal year, the Fraport Group generated revenue of €1,122.4 million. Compared with the same period of the previous year, this was equivalent to a decrease of €18.3 million or 1.6%. Adjusted for the recognition of earnings-neutral capacitive capital expenditure in the Twin Star and Lima Group companies in connection with the application of IFRIC 12, revenue of €1,117.4 million was €11.3 million (+1.0%) 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. Outside of Frankfurt, the Group company Lima reported continuing revenue growth despite negative exchange rate effects. The Twin Star Group company also achieved an increase in adjusted revenue. Primarily the decreasing revenue in the Retail & Real Estate segment at the Frankfurt site had a negative effect.
As a consequence of reduced construction activity at the Frankfurt site, internal work capitalized fell from €15.7 million to €13.5 million in the reporting period (– 14.0%).
Other operating income rose from €15.2 million to €23.6 million (+55.3%) mainly due to releases of provisions.
At €1,159.9 million, total revenue was €11.9 million lower than the figure in the first half of 2013 (– 1.0%). When adjusted for the application of IFRIC 12, at €1,154.9 million, this was €17.7 million above the corresponding value of the previous year (+1.6%).
A decrease in the cost of materials at the Frankfurt site resulted, for weather-related reasons, in particular from lower expenses for winter services and energy supply services and utilities. In external business, lower capacitive capital expenditure in the Twin Star and Lima Group companies were the primary cause of a decrease in the cost of materials. In contrast, traffic-related concession fees in Lima increased. In total, the cost of materials fell €53.3 million to €245.4 million (– 17.8%) in the reporting period. Adjusted for the recognition of capacitive capital expenditure in the Twin Star and Lima Group companies, the cost of materials was €240.4 million and was thus €23.7 million below the adjusted figure for the previous year (– 9.0%).
At €487.8 million, personnel expenses were €11.6 million higher than the previous year's level of €476.2 million (+2.4%). One of the reasons for this was increases in pay under collective agreements.
Other operating expenses fell from €74.9 million to €72.5 million (– 3.2%) due to various slightly decreased items.
The growth in organic revenue and the decrease in cost of materials meant that Group EBITDA rose noticeably by €32.2 million to €354.2 million (+10.0%) in the reporting period. The EBITDA margin accordingly improved by 3.4 percentage points to 31.6%. Adjusted for the revenue and expenses from the recognition of capacitive capital expenditure in connection with the application of IFRIC 12, the EBITDA margin rose from 29.1% to 31.7%.
Depreciation and amortization of €148.5 million (6M 2013: €142.3 million) led to Group EBIT of €205.7 million. Compared with the previous year, this corresponded to an increase of €26.0 million or 14.5%.
The financial result deteriorated from – €62.1 million to – €76.6 million (– €14.5 million). The reason for the decrease was a worse interest result (interest income and interest expenses) and a deterioration in the other financial result. Whereas the worse interest result was partly due to decreased interest income in connection with interest rate effects, the deterioration in the other financial result was largely connected to the fair value changes of derivatives. The result from companies accounted for using the equity method improved, partly due to the positive performance by the Antalya Group company. Capitalized interest expenses relating to construction work of €7.5 million in the first half of 2014 (6M 2013: €9.2 million) had the effect of reducing the reported interest expenses.
Despite the worse financial result, Group EBT was €11.5 million higher than the previous year at €129.1 million (+9.8%) due to the clear improvement in the Group EBIT. At an expected tax rate of 29.0%, (6M 2013: 30.2%) the Group result was up by €9.6 million to €91.7 million compared with the previous year (+11.7%). At €0.96, basic earnings per share were €0.10 higher than those of the first half of 2013 (+12.0%).
| € million | 6M 2014 | 6M 2013 | Change | Change |
|---|---|---|---|---|
| in % | ||||
| Revenue | 418.4 | 402.7 | 15.7 | 3.9 |
| Personnel expenses | 148.4 | 141.4 | 7.0 | 5.0 |
| EBITDA | 104.4 | 86.7 | 17.7 | 20.4 |
| EBITDA margin | 25.0% | 21.5% | 3.5 PP | – |
| EBIT | 46.1 | 30.0 | 16.1 | 53.7 |
| Average number | ||||
| of employees | 6,080 | 6,265 | – 185 | – 3.0 |
| € million | Q2 2014 | Q2 2013 | Change | Change |
| in % | ||||
| Revenue | 229.0 | 217.7 | 11.3 | 5.2 |
| Personnel expenses | 76.1 | 71.7 | 4.4 | 6.1 |
| EBITDA | 74.1 | 67.3 | 6.8 | 10.1 |
| EBITDA margin | 32.4% | 30.9% | 1.5 PP | – |
| EBIT | 44.5 | 39.4 | 5.1 | 12.9 |
| Average number | ||||
| of employees | 5,974 | 6,257 | – 283 | – 4.5 |
Retail & Real Estate
| € million | 6M 2014 | 6M 2013 | Change | Change |
|---|---|---|---|---|
| in % | ||||
| Revenue | 218.7 | 228.7 | – 10.0 | – 4.4 |
| Personnel expenses | 23.9 | 22.5 | 1.4 | 6.2 |
| EBITDA | 172.3 | 172.1 | 0.2 | 0.1 |
| EBITDA margin | 78.8% | 75.3% | 3.5 PP | – |
| EBIT | 131.1 | 132.4 | – 1.3 | – 1.0 |
| Average number | ||||
| of employees | 620 | 599 | 21 | 3.5 |
| € million | Q2 2014 | Q2 2013 | Change | Change |
| absolut | in % | |||
| Revenue | 112.2 | 121.0 | – 8.8 | – 7.3 |
| Personnel expenses | 12.0 | 11.2 | 0.8 | 7.1 |
| EBITDA | 89.9 | 91.7 | – 1.8 | – 2.0 |
| EBITDA margin | 80.1% | 75.8% | 4.3 PP | – |
| EBIT | 69.2 | 72.1 | – 2.9 | – 4.0 |
| Average number | ||||
| of employees | 611 | 599 | 12 | 2.0 |
In the first six months of 2014, revenue in the Aviation segment increased from €402.7 million to €418.4 million (+3.9%). The key reasons for the higher revenue were the increased passenger numbers at the Frankfurt site and the increase in airport charges by an average of 2.9% as of January 1, 2014. On the expense side, lower expenses for winter services due to the mild winter were the primary reason for lower costs. Personnel expenses primarily increased due to increases in pay under collective agreements despite a decreased number of employees.
Segment EBITDA increased significantly by €17.7 million to €104.4million (+20.4%) due to the increase in revenue and decrease in expenses. Slightly higher depreciation and amortization led to a segment EBIT of €46.1 million. Compared with the figure for the previous year, this was equivalent to a noticeable increase of €16.1 million.
At €218.7 million, revenue in the Retail & Real Estate segment in the first half of 2014 was €10.0 million below the figure for the previous year (– 4.4%). The decrease in revenue was attributable in particular to lower revenue in the Retail and Real Estate divisions and lower revenue from land sales. Whereas the decrease in retail revenue was primarily connected with a lower number of passengers on intercontinental routes – these passengers show above average purchasing patterns compared to passengers on continental connections – lower energy supply services and utilities due to the mild winter were largely responsible for the lower revenue in the Real Estate division. The key performance indicator "net retail revenue per passenger" fell accordingly from €3.56 to €3.42 (– 3.9%).
Despite the decrease in segment revenue, the segment EBITDA in the reporting period remained stable at €172.3 million (+0.1%). The development of the segment EBIDTA resulted, among other things, from a decrease in expenses from energy supply services and utilities, and lower expenses from land sales. Slightly higher depreciation and amortization led to a segment EBIT of €131.1 million, which was €1.3 million lower than the previous year (– 1.0%).
| € million | 6M 2014 | 6M 2013 | Change | Change |
|---|---|---|---|---|
| in % | ||||
| Revenue | 167.8 | 195.4 | – 27.6 | – 14.1 |
| Personnel expenses | 107.0 | 106.4 | 0.6 | 0.6 |
| EBITDA | 66.3 | 61.2 | 5.1 | 8.3 |
| EBITDA margin | 39.5% | 31.3% | 8.2 PP | – |
| EBIT | 35.8 | 34.4 | 1.4 | 4.1 |
| Average number | ||||
| of employees | 4,460 | 4,700 | – 240 | – 5.1 |
| € million | Q2 2014 | Q2 2013 | Change | Change |
| in % | ||||
| Revenue | 92.7 | 106.3 | – 13.6 | – 12.8 |
| Personnel expenses | 53.2 | 53.0 | 0.2 | 0.4 |
| EBITDA | 41.7 | 34.0 | 7.7 | 22.6 |
| EBITDA margin | 45.0% | 32.0% | 13.0 PP | – |
| EBIT | 26.2 | 20.3 | 5.9 | 29.1 |
| Average number | ||||
| of employees | 4,744 | 4,980 | – 236 | – 4.7 |
The higher passenger numbers and the increase in infrastructure charges led to a slight growth in revenue of €3.6 million to €317.5 million (+1.1%) in the Ground Handling segment in the first half of 2014. Whereas personnel expenses rose slightly because of increases in pay under collective agreements, material and other operating expenses fell because of one-off effects in the previous year and cost management.
With a slight increase in revenue and a decrease in expenses, segment EBITDA significantly improved by €9.2 million in the reporting period to €11.2 million. Almost unchanged depreciation and amortization led to a negative segment EBIT of – €7.3 million. Compared with the previous year, this meant an improvement of €9.8 million.
The External Activities & Services segment reported a decrease in revenue of €27.6 million to €167.8 million (– 14.1%) in the first half of 2014. An amount of €29.6 million of the fall in revenue was solely due to the lower recognition of earnings-neutral capacitive capital expenditure in the Twin Star and Lima Group companies in connection with the application of IFRIC 12. Adjusted for the application of IFRIC 12, segment revenue improved from €160.8 million in the previous year to €162.8 million in the reporting period (+1.2%). The reason for the positive revenue development was largely passenger growth in Lima, compensating for the negative exchange rate effect from converting US\$ to € and the positive development in the Twin Star Group company. Segment operating expenses decreased primarily due to lower capacitive capital expenditure in the Twin Star and Lima Group companies.
Segment EBITDA increased by €5.1 million to €66.3 million (+8.3%) due to the positive organic revenue development and decrease in expenses. Increased depreciation and amortization, which arose, among other things, as a result of the terminal inaugurations in Varna and Burgas in the previous fiscal year, led to a segment EBIT of €35.8 million, an increase of €1.4 million compared to the previous year (+4.1%).
The business figures of the key Group companies outside Frankfurt at 100% are shown in the following.
| Fully consolidated | Share | Revenue 2 | EBITDA | EBIT | Result | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Group companies 1 | in % | in € million | in € million | in € million | in € million | ||||||||
| 6M | 6M | ∆% | 6M | 6M | ∆% | 6M | 6M | ∆% | 6M | 6M | ∆% | ||
| 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | ||||||
| Lima | 70.01 | 99.7 | 98.4 | 1.4 | 36.2 | 34.3 | 5.6 | 29.1 | 27.5 | 5.8 | 12.9 | 10.4 | 23.6 |
| Twin Star | 60 | 15.6 | 42.6 | – 63.4 | 7.2 | 5.1 | 40.2 | 1.5 | 1.5 | 0.0 | – 2.2 | – 1.0 | – |
| Group companies accounted | Share | Revenue 2 | EBITDA | EBIT | Result | ||||||||
| for using the equity method 1 | in % | in € million | in € million | in € million | in € million | ||||||||
| 6M | 6M | ∆% | 6M | 6M | ∆% | 6M | 6M | ∆% | 6M | 6M | ∆% | ||
| 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | ||||||
| Antalya 3 | 51/50 | 118.2 | 115.4 | 2.4 | 98.7 | 94.1 | 4.9 | 49.5 | 44.9 | 10.0 | 7.8 | – 0.5 | >100 |
| Pulkovo | 35.5 | 141.7 | 317.7 | – 55.4 | 39.9 | 25.1 | 58.7 | 19.4 | 16.3 | 19.0 | – 29.9 | – 14.5 | – |
| Hanover | 30 | 66.8 | 69.2 | – 3.5 | 10.7 | 12.4 | – 13.7 | 0.7 | 1.5 | – 46.7 | – 2.3 | – 2.6 | – |
| Xi'an 4 | 24.5 | 67.6 | 64.4 | 5.0 | 28.1 | 30.8 | – 8.7 | 10.2 | 12.0 | – 15.2 | 7.0 | 11.0 | – 36.4 |
1 Percent deviations based on unrounded figures.
2 Revenue adjusted by IFRIC 12: Lima 6M 2014: €95.0 million (6M 2013: €93.4 million); Twin Star 6M 2014: €15.3 million (6M 2013: €13.0 million), Pulkovo 6M 2014: €109.1 million (6M 2013: €97.4 million).
3 Voting rights: 51%, Equity share: 50%.
4 Figures according to the separate financial statement.
Despite the negative exchange rate effect from the conversion of the US\$, the Lima Group company reported revenue, EBITDA, EBIT, and earnings growth in the single-digit million € range in the first half. The reason for the increase in earnings was the traffic growth at the site.
The Twin Star Group company's significant fall in revenue to €15.6 million (– €27.0 million) was entirely due to lower earnings-neutral recognition of capacitive capital expenditure in connection with the application of IFRIC 12 in the first six months of the fiscal year. Adjusted for the capacitive expenditure, the Twin Star Group company achieved an increase in revenue. An EBITDA growth was recorded. The stable development of EBIT and decrease in its result were linked to the terminal inaugurations in Varna and Burgas.
The Antalya Group company, which is accounted for using the equity method, reported a clear increase in its result in the first half of 2014 that was due to the strong passenger growth at the site.
The Pulkovo Group company, which is also accounted for using the equity method, showed a noticeable growth in its operating result in the first half of 2014 that reflected the continuing good traffic growth. However, negative effects from the terminal inauguration at the site and resulting from the currency translation of financial liabilities were reflected in the Group company's financial result. Collectively, these two effects led to a decrease in the Group company's result from – €14.5 million to – €29.9 million. Due to accounting using the equity method, the proportional loss of the Pulkovo Group company not recognized in the consolidated income statement was €10.6 million in the first half.
The decrease in traffic experienced by the Hanover Group company, which is accounted for using the equity method, was also reflected in the company's operating result. At €10.7 million, EBITDA was €1.7 million lower than the figure for the previous year and EBIT was €0.8 million lower at €0.7 million.
The revenue of the Xi'an Group company, which is accounted for using the equity method, reflected the positive traffic development in the first half of 2014. However, the traffic effect was depressed by a tax that was additionally introduced in August 2013 and an increase in the cost of materials and personnel expenses. Collectively, these effects led to a decrease in the Group company's half year EBITDA and result.
The Fraport Group recorded capital expenditure of €220.1 million in the first six months of the 2014 fiscal year and thus €122.4 million less than in the same period of the previous year (6M 2013: €342.5 million). In the reporting period, €134.5 million was used for property, plant and equipment (6M 2013: €212.8 million), €74.8 million for financial assets (6M 2013: €88.0 million), €3.9 million for investment property (6M 2013: €10.9 million) and €6.9 million for intangible assets and airport operating projects (6M 2013: €30.8 million). Capitalized interest expenses relating to construction work amounted to €7.5 million in the first half of 2014 (6M 2013: €9.2 million).
At €132.9 million, the greater part of capital expenditure for property, plant and equipment related to Fraport AG (6M 2013: €180.6 million). Capital expenditure for property, plant and equipment was focused on expanding Frankfurt Airport's capacity and modernizing the existing infrastructure. The addition to the financial assets related almost solely to securities.
In the first six months of 2014, the Fraport Group realized, compared to the previous year, almost unchanged cash flow from operating activities (operating cash flow) of €205.9 million (6M 2013: €205.7 million). Despite a clear improvement in operating activities, the change to cash flow from operating activities was minimal, in particular because of higher taxes on income paid. Due to tax refunds in the previous year and the payment of tax for previous years in the reporting period as a consequence of amended tax assessments, the cash outflow for taxes on income was €30.2 million higher in the first half of 2014.
Cash flow used in investing activities without investments in cash deposits and securities at – €97.7 million was €124.9 million less than the figure for the same period of the previous year primarily due to lower capital expenditure for property, plant and equipment. Free cash flow improved accordingly in the first half of 2014 from – €25.2 million to €82.4 million (+€107.6 million). Including capital expenditure and proceeds from securities and promissory note loans as well as returns from time deposits with a term of more than three months, total cash flow used in investing activities was €73.9 million (6M 2013: cash flow used in investing activities of €21.2 million).
Cash flow used in financing activities of €272.2 million (6M 2013: €134.9 million) was mainly attributable to the repayment of non-current financial liabilities and the dividend payment.
In connection with the financing for the Antalya concession, bank deposits of €23.3 million were subject to drawing restrictions as at June 30, 2014. Cash and cash equivalents in the statement of cash flows therefore amounted to €139.3 million as at June 30, 2014. The following table shows
| € million | June 30, 2014 | Dec. 31, 2013 June 30, 2013 | |
|---|---|---|---|
| Cash and cash equivalents | |||
| as at the consolidated statement | |||
| of cash flows | 139.3 | 131.2 | 157.8 |
| Cash and cash equivalents with a | |||
| term of more than three months | 202.8 | 332.4 | 404.2 |
| Restricted cash | 23.3 | 23.3 | 23.3 |
| Cash and cash equivalents as at | |||
| the statement of financial position | 365.4 | 486.9 | 585.3 |
a reconciliation to cash and cash equivalents as shown in the statement of financial position.
In comparison with the 2013 balance sheet date, the total assets of the Fraport Group as at June 30, 2014 decreased by €137.3 million to €8,698.5 million (– 1.6%) mainly due to the reduction in current assets and non-current liabilities.
At €7,695.9 million, non-current assets remained almost stable compared to the balance sheet date of the previous year, when these amounted to €7,704.8 million (– 0.1%). A decrease in the "investments in companies accounted for using the equity method", which resulted among other things from dividend payments by the Antalya Group company, was counterbalanced by a rise in the "other financial assets" item in connection with investments in the course of financial asset management. Non-current assets also included expenses for the extended protection requirements of €27.0 million which were capitalized as production costs in connection with the capacity expansion at the Frankfurt site. These expenses arose from the second zoning supplement decision on wake turbulences of May 26, 2014 (see page 2 of this report). Current assets decreased from €1,131.0 million to €1,002.6 million (– 11,4%). The key reasons for the decrease were the repayment of financial liabilities and the dividend payment. These had the effect of reducing cash and cash equivalents and current financial assets.
Shareholders' equity fell by €16.2 million in comparison to the 2013 balance sheet date to €3,100.5 million (– 0.5%). The decrease was particularly caused by the dividend payment for the 2013 fiscal year, which at € 115.4 million had the effect of reducing shareholders' equity. The shareholders' equity ratio increased by 1.7 percentage points to 35.1% (December 31, 2013: 33.4%).
Non-current liabilities fell by €441.4 million in comparison to the 2013 balance sheet date to €4,462.1 million (– 9.0%). The main reason for the decrease was lower financial liabilities, which was primarily due to reclassifications to current financial liabilities on the grounds of maturity. In connection with the obligations resulting from the second zoning supplement decision on wake turbulences of May 26, 2014, provisions totaling €27.0 million were formed in the reporting period. Current liabilities increased significantly from €815.6 million to €1,135.9 million due to the reclassification (+39.3%). The repayment of current financial liabilities had the opposite effect.
At €4,114.4 million as at June 30, 2014 gross debt was €124.3 million below its level at December 31, 2013 (– 2.9%). After deducting the Group's liquidity of €1,210.0 million (December 31, 2013: €1,368.1 million), the net financial debt of €2,904.4 million was 1.2% higher in comparison with the 2013 balance sheet date (December 31, 2013: €2,870.6 million). The gearing ratio reached a level of 95.1% (December 31, 2013: 97.1%).
The schedule for reporting value management is once a year at the end of the fiscal year. It is not raised quarterly.
| Indicators | 6M 2014 | 6M 2013 | Change | Change |
|---|---|---|---|---|
| in % | ||||
| Global satisfaction (Frankfurt) | 81% | 81% | 0 PP | – |
| Punctuality rate (Frankfurt) | 84.8% | 80.7% | 4.1 PP | – |
| Baggage connectivity (Frankfurt) | 98.8% | 98.3% | 0.5 PP | – |
| Equipment availability rate (Frankfurt) | 98.0% | 92.4% | 5.6 PP | – |
| Employee satisfaction | – | – | – | – |
| Total number of work accidents 1 | 662 | 688 | – 26 | – 3.8 |
1 Figures as at the reporting date June 30, 2014 and June 30, 2013 respectively. Due to late registrations there can still occur changes to the figures.
At 81% in the reporting period, global satisfaction (general passenger satisfaction at the Frankfurt site) was higher than the annual target of 80% and remained at the previous year's high level.
The punctuality rate reached 84.8% and thus a record level at the Frankfurt site in the first half of 2014. Compared with the same period of the previous year, this meant an improvement of 4.1 percentage points. The improvement was particularly due to the better weather conditions at the beginning of the year.
Baggage connectivity improved from 98.3% to 98.8% at the Frankfurt site in the first half of 2014. The months of February and March 2014 in particular recorded high connectivity of 99.0% each.
The equipment availability rate reached an average of 98.0% in the first half of 2014 and was thus 5.6 percentage points above the level of the previous year. Compared with the first half of 2013, the availability of elevators (an average of 98.2% compared to 92.6%) and escalators (an average of 96.8% compared to 88.6%) showed particular improvement. With an average availability of 99.9%, the gate bridges were available at almost all times during the reporting period (6M 2013: 99.7%).
Employee satisfaction, which has to date been measured annually or at least every other year, will in future be surveyed each year. Employee satisfaction was not measured during the reporting period. The next survey is planned for the third quarter of 2014.
The total number of work accidents fell by 26 to 662 in the first half of 2014. Fewer accidents were most notably registered at the Group companies APS Airport Personal Service and FraSec Fraport Security Services.
| Average number | 6M 2014 | 6M 2013 | Change | Change |
|---|---|---|---|---|
| of employees | in % | |||
| Fraport Group | 20,180 | 20,595 | – 415 | – 2.0 |
| thereof Fraport AG | 10,789 | 11,060 | – 271 | – 2.5 |
| thereof Group | ||||
| companies | 9,391 | 9,535 | – 144 | – 1.5 |
| thereof in Germany | 18,641 | 18,916 | – 275 | – 1.5 |
| thereof abroad | 1,539 | 1,679 | – 140 | – 8.3 |
| Average number | Q2 2014 | Q2 2013 | Change | Change |
|---|---|---|---|---|
| of employees | in % | |||
| Fraport Group | 20,120 | 20,663 | – 543 | – 2.6 |
| thereof Fraport AG | 10,762 | 11,035 | – 273 | – 2.5 |
| thereof Group | ||||
| companies | 9,358 | 9,628 | – 270 | – 2.8 |
| thereof in Germany | 18,307 | 18,691 | – 384 | – 2.1 |
| thereof abroad | 1,813 | 1,972 | – 159 | – 8.1 |
In the first six months of 2014, the average number of employees (employees excluding apprentices and employees on leave) in the Fraport Group fell by 415 to 20,180 employees (6M 2013: 20,595).
In Germany, there was a reduction in headcount at the Frankfurt site, in particular in the Group companies FraSec Fraport Security Services (– 136 employees) and GCS Gesellschaft für Cleaning Service (– 73 employees). The Group company APS Airport Personal Service reported an increase in headcount (+227 employees). The decrease in the number of employees at Fraport AG (– 271 employees) was, among other things,
due to the more optimized deployment of personnel, which was partially offset by an increase in employment by the Group companies. Outside of Germany, the headcount decreased most notably at the Lima Group company (– 99 employees).
As stated in the 2013 Group management report, as a servicesector group, Fraport does not engage in research and development in the strict sense (see 2013 Annual Report beginning on page 63). However, Fraport continues to utilize suggestions for improvements and innovations from employees as success factors in retaining and expanding its international competitiveness. In doing so, Fraport is currently focusing on research projects in baggage logistics and the offering of individualized services along the travel chain. In order to continue purposefully encouraging the creativity of employees, a Group innovation prize (last offered in 2012) will additionally be offered this year for the second time.
Significant changes from ideas and innovations influencing the business development did not take place in the reporting period.
In the first half of 2014, the development of the German equity markets presented a mixed picture. Whereas the DAX and MDAX showed an overall lateral movement in the first quarter with upward and downward tendencies, both indices closed the second quarter slightly positive. At 9,833 points, the DAX achieved growth of 2.9% in the first half of 2014. The MDAX, which closed at 16,816 points, increased 1.5%. Negative effects on price resulted primarily from the politically unstable situation in the Ukraine and the unrest in the Middle East region.
At €51.60, the Fraport share ended the first half 5.1% lower than the €54.39 closing price of the 2013 fiscal year. Following an almost unchanged share price of €54.22 at the end of the first quarter of 2014 (– 0.3% compared to the closing price of 2013), the value of the share dropped sharply by 4.8% in the second quarter primarily due to the profit warning by Deutsche Lufthansa AG on June 11, 2014. Taking into account the €1.25 per share dividend payment of June 2, 2014, the Fraport shares fell 2.8% in the first half and 2.5% in the second quarter. The share of the other stock-exchange listed European airports performed as follows in the reporting period: Aéroports de Paris +14.9%, Vienna Airport +11.5% and Zurich Airport +4.5%.
| 6M 2014 | 6M 2013 | Q2 2014 | Q2 2013 | |
|---|---|---|---|---|
| Opening price in € | 54.39 | 43.94 | 54.22 | 43.73 |
| Closing price in € | 51.60 | 46.48 | 51.60 | 46.48 |
| Change 1 | – 2.79 | 2.54 | – 2.62 | 2.75 |
| Change in % 2 | – 5.1 | 5.8 | – 4.8 | 6.3 |
| Highest price in € (daily closing price) | 57.77 | 47.53 | 56.28 | 47.53 |
| Lowest price in € (daily closing price) | 51.02 | 42.33 | 51.02 | 43.00 |
| Average price in € (daily closing prices) | 54.42 | 44.64 | 53.62 | 45.14 |
| Average trading volume per day (number) | 87,766 | 144,740 | 84,197 | 155,378 |
| Market capitalization in € million (quarterly closing price) | 4,765 | 4,289 | 4,765 | 4,289 |
1 Change incl. dividends: 6M 2014: – €1.54, Q2 2014: – €1.37, 6M 2013: +€3.79, Q2 2013: +€4.00.
2 Change incl. dividends: 6M 2014: – 2.8 %, Q2 2014: – 2.5 %, 6M 2013: +8.6 %, Q2 2013: +9.1 %.
Source: Bloomberg
The following changes to the shareholder structure were reported to Fraport in the reporting period:
| Voting right holder | Date of change | Type of change | New proportion of voting rights |
|---|---|---|---|
| RARE Infrastructure Limited 1 | January 31, 2014 | Exceeded the 5%-threshold | 5.27% |
| Lazard Asset Management 2 | May 9, 2014 | Fell below the 3%-threshold | 2.88% |
1 5.27% of the voting rights were attributable to RARE Infrastructure Limited pursuant to Section 22 (1) sentence 1 no. 6 WpHG in conjunction with Section 22 (1) sentence 2.
2 2.88% of the voting rights were attributable to Lazard Asset Management pursuant to Section 22 (1) sentence 1 no. 6 WpHG.
As at June 30, 2014, the shareholder structure adjusted to the current total number of voting rights was as follows: Outlook Report
1 The relative ownership interests were adjusted to the current total number of shares as at June 30, 2014, and therefore may differ from the figures given at the time of reporting or from the respective shareholders' own disclosure. Interests below 3% are classified under "Free Float".
As in the previous year, the 2014 Annual General Meeting passed a resolution to pay out a dividend of €1.25 per share for the 2013 fiscal year. In relation to the share closing price at year end 2013, this corresponded to a dividend yield of 2.3% (previous year: 2.8%). The pay-out ratio thus represented 66.4% of Fraport AG's result of €173.8 million for the year 2013 (previous year: 65.6%) and 52.2% of the Group result attributable to shareholders of Fraport AG of €221.0 million (previous year: 48.5%).
Fraport AG acquired 100% of the shares in AMU Holdings Inc., USA, with the purchase contract of July 23, 2014. The investments held by AMU Holdings Inc. operate commercial areas at four US airports in Pittsburgh, Boston, Baltimore and Cleveland and develop these via concession agreements. The company will be fully consolidated in Fraport's consolidated financial statements in future.
The Executive Board continues to expect that the global economic growth forecasted will have a positive impact on passenger development in the Fraport Group in 2014. At the Frankfurt site, the increase in airport and infrastructure charges will continue to have a revenue-increasing effect. Furthermore, due to higher contributions from the Lima and Twin Star Group companies, the Executive Board continues to expect a rise in Group EBITDA and EBIT. The Executive Board continues to expect slight growth for the Group result in 2014.
The Executive Board does not see any significant risks that might jeopardize the Group as a going concern. The Executive Board furthermore examines opportunities for optimizing the asset and financial position of the Group on an ongoing basis. With regard to the external business, the objective of the Executive Board resolutely remains to expand this and to continuously improve the existing portfolio with a focus on earnings. As they are difficult to predict, material acquisitions and disposals of businesses are 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 riskmanagement 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.
Compared to the assessment in the Group management report as of December 31, 2013 (see 2013 Annual Report beginning on page 67), the Group's risk and opportunity profile changed as follows in the first half of 2014:
Fraport holds 35.5% in Northern Capital Gateway, the operating company of St. Petersburg Airport. Considerable uncertainties regarding the Group's interests there have arisen due to the current political developments around the Ukraine crisis and the uncertainty about whether further sanctions will be imposed against Russia and how strongly the Russian government could react to these, or what sanctions the Russian government will actively adopt itself. In addition to direct measures that could be taken against foreign investors, the political developments mean that negative economic effects, such as a falling ruble exchange rate or negative traffic development, cannot be ruled out. Due to the good overall economic relations between the Federal Republic of Germany and Russia and current assessments by experts, Fraport currently classifies the probability of occurrence of direct sanctions being made against German investors and financial effects on Fraport's interests arising from this as "low". If direct sanctions were enforced, this could, however, potentially result in a "high" impact level for Fraport. In order to protect its interests, the investments made by Fraport are largely protected by the German government's federal guarantees for direct investments abroad. In addition, Fraport acts in partnership with a renowned Russian partner, VTB Bank, one of the largest Russian banks, keeps in close contact with local management and is a member of the German-Russian Chamber of Foreign Trade.
There were no other significant changes in the risks and opportunities presented in the Group management report as of December 31, 2013 (see 2013 Annual Report beginning on page 67). The Executive Board is convinced that the change to the individual risks specified does 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 forecast of the situation of the Fraport Group for 2014 that was made in the 2013 Group management report remains unchanged (see 2013 Annual Report beginning on page 84). The Executive Board continues not to expect any fundamental changes with respect to the operating activities, structure, strategy and control of the Group. In connection with the scheduled expiry of the contract of Peter Schmitz, Executive Director Operations, the Executive Board will reallocate his divisional responsibilities from September 1, 2014 and from then on assign the Group's operating activities to the four members Dr Stefan Schulte (Chairman), Anke Giesen (Executive Director Operations), Michael Müller (Executive Director Labor Relations) and Dr Matthias Zieschang (Executive Director Controlling and Finance).
Financial and economic institutions continue to expect the global economy to expand in the 2014 fiscal year. After achieving growth of around 3% in 2013, growth of 2.2% to 3.6% is expected for the global economy for the current year. Global trade will rise by around 4% in 2014. Overall, inflation is expected to be moderate. For 2014, relatively stable global oil prices at an average of US\$105 to US\$110 per barrel are expected, which is a forecast at the level of the last three years. The conflicts in the Ukraine and the Middle East pose certain risks.
The International Monetary Fund has significantly lowered its growth forecast for the US economy in the current year from 2.8% to 1.7%. Economic development in the first quarter of 2014 was considerably worse than initially expected due to the hard winter. A Euro zone recovery continues to be expected. Following – 0.4% in the 2013 fiscal year, growth of at least 1% in 2014 is forecasted. Germany should continue to develop more positively in this period. After achieving growth of 0.4% in the 2013 fiscal year, it is expected to achieve growth of between 1.7% and 2.2% in 2014. The forecasts have recently been raised again slightly.
Sources: Consensus of the leading German economic research institutions (April 2014), OECD (May 2014), IMF (July 2014).
No changes to the legal environment that would have a significant influence on the business development of Fraport can currently be discerned.
On the basis of the expected development of economic conditions, by now the ACI anticipates passenger growth of 3.5% for European airports and 3.0% in freight tonnage for the 2014 fiscal year. Conversely, based on passenger kilometers, the International Air Transport Association (IATA) forecasts a global increase of 5.8% and a figure of 4.7% for Europe for 2014. In its forecast, IATA assumes a slightly reduced crude oil price, down 0.7% compared to the previous year. Sources: ACI Press Release (June 17, 2014), IATA Industry Financial Forecast (March 2014).
Taking the economic and industry-specific conditions into account, the Executive Board continues to expect better development at the Frankfurt site than in the previous year for the 2014 fiscal year (see 2013 Annual Report beginning on page 84). It forecasts a growth rate in passenger traffic of between 2% and 3%. There will continue to be uncertainties from the airlines' short-term yield and capacity management. The strike activities of Deutsche Lufthansa AG pilots, for which no foreseeable solution was yet in existence by the
editorial deadline and which had a clear negative impact on passenger development in April, also lead to additional uncertainties. Depending on the intensity of future strike measures, passenger growth could also be lower than before mentioned. With regard to cargo tonnage handled, the Executive Board continues to expect a growth rate in line with market growth for the Frankfurt site for 2014, which may even be higher than the moderate growth rate forecasted in the 2013 Group management report. Due to the volatile economic prospects of some emerging markets and the conflicts in the Ukraine and the Middle East, the cargo outlook remains subject to increased uncertainties.
On the basis of positive economic assumptions and a continuing good outlook for tourism, the Executive Board continues to expect an increase in passenger numbers for foreign Group airports in 2014. As at the Frankfurt site, negative developments as a result of the Ukraine crisis may also arise for the Varna, Burgas, Antalya and St. Petersburg sites due to the prevailing passenger structures.
On the basis of business development in the first six months of 2014 and the aforementioned forecasted business development, the Executive Board maintains its earnings outlook for the 2014 fiscal year (see 2013 Annual Report beginning on page 84), according to which the Executive Board expects revenue to increase up to a level of approximately €2.45 billion. Group EBITDA will lie between approximately €780 million and some €800 million. The Group result is forecasted to be slightly above the value of the previous year.
The Executive Board's expectations for segment development for the 2014 fiscal year have changed slightly compared to the forecast at the start of the fiscal year (see 2013 Annual Report beginning on page 84). Whereas slightly better performance than in the 2013 management report is expected for the Aviation segment because of the first half of 2014 (2013 management report forecast: increase in revenue of up to 5%, EBITDA and EBIT growth of up to around €20 million), the Executive Board conversely expects slightly worse performance in the Retail & Real Estate segment than previously forecasted (2013 management report forecast: slight rise in revenue, EBITDA and EBIT). The Executive Board maintains its forecasts for the other segments. For the Ground Handling segment, a slight increase in revenue, and EBITDA and EBIT close to the previous year's level are expected. In the External Activities & Services segment, organic revenue will grow and the increase in EBITDA and EBIT will be in the single-digit million € range.
The Executive Board's forecast for the asset and financial position for the 2014 fiscal year remains unchanged (see 2013 Annual Report beginning on page 84). Lower capital expenditure and the positive expected business development will lead to an improvement in the free cash flow. Due to the dividend payment for the 2013 fiscal year, the Group's liquidity is likely to be slightly lower than the level as of December 31, 2013, while net financial debt will be slightly higher. In connection with the forecasted increase in shareholders' equity, the Executive Board continues to expect that the gearing ratio at the end of the 2014 fiscal year will be slightly lower than the level of the previous year.
The Executive Board also confirms its 2014 forecast of nonfinancial performance indicators (see 2013 Annual Report beginning on page 84). The Executive Board continues to aim for global passenger satisfaction of at least 80% for the 2014 fiscal year. The punctuality rate is forecasted at an approximately unchanged high level. While baggage connectivity of above 98.5% is aimed for, a level significantly above 90% is expected for equipment availability.
The target for employee satisfaction is still an average grade of better than 3.0 (where 1 = very good and 5 = inadequate). A further reduction of work accidents is targeted.
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 2014 | 6M 2013 | Q2 2014 | Q2 2013 |
|---|---|---|---|---|
| adjusted | adjusted | |||
| Revenue | 1,122.4 | 1,140.7 | 602.7 | 610.9 |
| Change in work-in-process | 0.4 | 0.2 | 0.3 | 0.0 |
| Other internal work capitalized | 13.5 | 15.7 | 6.8 | 7.2 |
| Other operating income | 23.6 | 15.2 | 18.5 | 7.5 |
| Total revenue | 1,159.9 | 1,171.8 | 628.3 | 625.6 |
| Cost of materials | – 245.4 | – 298.7 | – 123.6 | – 146.5 |
| Personnel expenses | – 487.8 | – 476.2 | – 247.4 | – 237.9 |
| Other operating expenses | – 72.5 | – 74.9 | – 37.6 | – 40.7 |
| EBITDA | 354.2 | 322.0 | 219.7 | 200.5 |
| Depreciation and amortization | – 148.5 | – 142.3 | – 75.2 | – 71.0 |
| EBIT/Operating result | 205.7 | 179.7 | 144.5 | 129.5 |
| Interest income | 18.6 | 22.7 | 9.5 | 11.6 |
| Interest expenses | – 91.7 | – 90.6 | – 47.0 | – 44.7 |
| Result from companies accounted for using the equity method | 3.6 | – 2.2 | 17.4 | 11.7 |
| Other financial result | – 7.1 | 8.0 | – 3.7 | 3.2 |
| Financial result | – 76.6 | – 62.1 | – 23.8 | – 18.2 |
| EBT/Result from ordinary operations | 129.1 | 117.6 | 120.7 | 111.3 |
| Taxes on income | – 37.4 | – 35.5 | – 35.0 | – 33.7 |
| Group result | 91.7 | 82.1 | 85.7 | 77.6 |
| thereof profit attributable to non-controlling interests | 3.4 | 3.1 | 3.9 | 3.7 |
| thereof profit attributable to shareholders of Fraport AG | 88.3 | 79.0 | 81.8 | 73.9 |
| Earnings per € 10 share in € | ||||
| basic | 0.96 | 0.86 | 0.89 | 0.80 |
| diluted | 0.95 | 0.85 | 0.88 | 0.80 |
| € million | 6M 2014 | 6M 2013 | Q2 2014 | Q2 2013 |
|---|---|---|---|---|
| adjusted | adjusted | |||
| Group result | 91.7 | 82.1 | 85.7 | 77.6 |
| Items that will not be reclassified subsequently to profit or loss | 0.0 | 0.0 | 0.0 | 0.0 |
| Items that will be reclassified subsequently to profit or loss | ||||
| Fair value changes of derivatives | ||||
| Changes directly recognized in equity | 19.8 | 20.8 | 31.1 | 18.3 |
| thereof realized gains (+)/losses (–) | 22.7 | – 11.2 | 32.6 | – 0.5 |
| – 2.9 | 32.0 | – 1.5 | 18.8 | |
| (Deferred taxes related to those items | 0.9 | – 9.9 | 0.5 | – 5.8) |
| Fair value changes of financial instruments held for sale | ||||
| Changes directly recognized in equity | 12.0 | – 3.8 | 6.0 | – 8.7 |
| thereof realized gains (+)/losses (–) | 0.0 | – 0.4 | 0.0 | 0.0 |
| 12.0 | – 3.4 | 6.0 | – 8.7 | |
| (Deferred taxes related to those items | – 1.9 | 0.8 | – 1.1 | 1.1) |
| Currency translation of foreign Group companies | 0.4 | 1.0 | 0.7 | – 1.9 |
| Income and expenses from companies accounted for | ||||
| using the equity method directly recognized in equity | – 1.4 | 10.3 | 1.3 | 4.4 |
| (Deferred taxes related to those items | 0.1 | – 1.9 | 0.0 | – 1.7) |
| Other result after deferred taxes | 7.2 | 28.9 | 5.9 | 6.2 |
| Comprehensive income | 98.9 | 111.0 | 91.6 | 83.8 |
| thereof attributable to non-controlling interests | 3.5 | 3.0 | 4.1 | 3.3 |
| thereof attributable to shareholders of Fraport AG | 95.4 | 108.0 | 87.5 | 80.5 |
| Assets | |
|---|---|
| adjusted Non-current assets Goodwill 22.7 22.7 Investments in airport operating projects 455.0 458.1 Other intangible assets 48.7 51.1 Property, plant and equipment 5,961.4 5,962.3 Investment property 51.4 47.7 Investments in companies accounted for using the equity method 191.9 213.9 Other financial assets 749.0 728.6 Other receivables and financial assets 171.6 172.2 Income tax receivables 15.6 20.3 Deferred tax assets 28.6 27.9 7,695.9 7,704.8 Current assets Inventories 43.3 42.3 Trade accounts receivable 203.5 174.4 Other receivables and financial assets 379.4 426.4 Income tax receivables 11.0 1.0 Cash and cash equivalents 365.4 486.9 1,002.6 1,131.0 8,698.5 8,835.8 Liabilities and Equity € million June 30, 2014 December 31, 2013 adjusted Shareholders' equity Issued capital 922.7 922.1 Capital reserve 592.3 590.2 Revenue reserves 1,539.0 1,558.7 Equity attributable to shareholders of Fraport AG 3,054.0 3,071.0 Non-controlling interests 46.5 45.7 3,100.5 3,116.7 Non-current liabilities Financial liabilities 3,478.8 3,948.1 Trade accounts payable 47.6 50.8 Other liabilities 490.6 491.6 Deferred tax liabilities 109.8 108.3 Provisions for pensions and similar obligations 27.4 26.7 Provisions for income taxes 49.9 54.1 Other provisions 258.0 223.9 4,462.1 4,903.5 Current liabilities Financial liabilities 635.6 290.6 Trade accounts payable 153.4 159.6 Other liabilities 158.2 123.1 Provisions for income taxes 3.5 7.7 Other provisions 185.2 234.6 1,135.9 815.6 8,698.5 8,835.8 |
€ million | June 30, 2014 | December 31, 2013 |
|---|---|---|---|
| € million | 6M 2014 | 6M 2013 | Q2 2014 | Q2 2013 |
|---|---|---|---|---|
| adjusted | adjusted | |||
| Profit attributable to shareholders of Fraport AG | 88.3 | 79.0 | 81.8 | 73.9 |
| Profit attributable to non-controlling interests | 3.4 | 3.1 | 3.9 | 3.7 |
| Adjustments for Taxes on income |
37.4 | 35.5 | 35.0 | 33.7 |
| Depreciation and amortization | 148.5 | 142.3 | 75.2 | 71.0 |
| Interest result | 73.1 | 67.9 | 37.5 | 33.1 |
| Gains/losses from disposal of non-current assets | – 0.1 | – 0.1 | 0.0 | 0.0 |
| Others | 1.0 | – 0.7 | 0.5 | 0.8 |
| Fair value changes of companies accounted for using the equity method | – 3.6 | 2.2 | – 17.4 | – 11.7 |
| Changes in inventories | – 1.0 | 3.8 | – 0.7 | 3.2 |
| Changes in receivables and financial assets | – 41.9 | – 22.8 | 6.8 | – 12.3 |
| Changes in liabilities | 13.6 | – 24.3 | 2.5 | – 6.5 |
| Changes in provisions | – 22.6 | – 22.4 | – 30.3 | – 17.7 |
| Operating activities | 296.1 | 263.5 | 194.8 | 171.2 |
| Financial activities | ||||
| Interest paid | – 55.2 | – 55.6 | – 38.6 | – 36.3 |
| Interest received | 14.3 | 16.9 | 8.5 | 9.8 |
| Taxes on income paid | – 49.3 | – 19.1 | – 33.2 | – 6.3 |
| Cash flow from operating activities | 205.9 | 205.7 | 131.5 | 138.4 |
| Investments in airport operating projects | – 6.0 | – 28.1 | – 3.3 | – 14.2 |
| Capital expenditure for other intangible assets | – 0.9 | – 2.8 | 0.8 | – 1.1 |
| Capital expenditure for property, plant and equipment | – 110.7 | – 182.4 | – 63.7 | – 93.8 |
| Investment property | – 5.9 | – 17.6 | – 2.4 | – 8.1 |
| Dividends from companies accounted for using the equity method | 25.2 | 4.0 | 10.6 | 4.0 |
| Proceeds from disposal of non-current assets | 0.6 | 4.3 | – 0.3 | 3.8 |
| Cash flow used in investing activities without investments | ||||
| in cash deposits and securities | – 97.7 | – 222.6 | – 58.3 | – 109.4 |
| Financial investments in securities and promissory note loans | – 375.3 | – 178.9 | – 162.1 | – 59.5 |
| Proceeds from disposal of securities and promissory note loans | 417.3 | 200.5 | 232.8 | 88.6 |
| Decrease of time deposits with a term of more than three months | 129.6 | 179.8 | 91.2 | 103.7 |
| Cash flow from/used in investing activities | 73.9 | – 21.2 | 103.6 | 23.4 |
| Dividends paid to shareholders of Fraport AG | – 115.3 | – 115.2 | – 115.3 | – 115.2 |
| Dividends paid to non-controlling interests | – 2.4 | – 4.0 | – 1.3 | – 2.3 |
| Capital increase | 2.5 | 2.5 | 2.5 | 2.5 |
| Cash inflow from long-term financial liabilities | 0.0 | 58.5 | 0.0 | 51.8 |
| Repayment of long-term financial liabilities | – 154.3 | – 146.8 | – 90.0 | – 91.8 |
| Changes in short-term financial liabilities | – 2.7 | 70.1 | – 4.5 | 69.0 |
| Cash flow used in financing activities | – 272.2 | – 134.9 | – 208.6 | – 86.0 |
| Change in cash and cash equivalents | 7.6 | 49.6 | 26.5 | 75.8 |
| Cash and cash equivalents as at January 1 respectively April 1 | 131.2 | 107.9 | 112.1 | 83.5 |
| Exchange rate effects on cash and cash equivalents | 0.5 | 0.3 | 0.7 | – 1.5 |
| Cash and cash equivalents as at June 30 | 139.3 | 157.8 | 139.3 | 157.8 |
| € million | Issued | Capital | Revenue | Foreign | Financial | Revenue | Equity | Non- | Equity |
|---|---|---|---|---|---|---|---|---|---|
| capital | reserve | reserves | currency | instruments | reserves | attributable to | controlling | (total) | |
| reserve | (total) | shareholders | interests | ||||||
| of Fraport AG | |||||||||
| Balance as at January 1, 2014 | 922.1 | 590.2 | 1,636.3 | 3.7 | – 81.3 | 1,558.7 | 3,071.0 | 45.7 | 3,116.7 |
| Exchange rate 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 assets held for sale | – | – | – | – | 10.1 | 10.1 | 10.1 | – | 10.1 |
| Fair value changes of derivatives | – | – | – | – | – 2.0 | – 2.0 | – 2.0 | – | – 2.0 |
| Net income (+)/Net costs (–) | |||||||||
| directly recognized in equity | 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 |
| 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 | 1,609.5 | 3.0 | – 73.5 | 1,539.0 | 3,054.0 | 46.5 | 3,100.5 |
| Balance as at January 1, 2013 | 921.3 | 588.0 | 1,511.8 | 8.4 | – 117.0 | 1,403.2 | 2,912.5 | 35.7 | 2,948.2 |
| Changes of first-time application of IFRS 11 | – | – | 18.1 | – | – | 18.1 | 18.1 | – | 18.1 |
| Balance as at January 1, 2013 adjusted | 921.3 | 588.0 | 1,529.9 | 8.4 | – 117.0 | 1,421.3 | 2,930.6 | 35.7 | 2,966.3 |
| Exchange rate effects | – | – | – | 1.1 | – | 1.1 | 1.1 | – 0.1 | 1.0 |
| Income and expenses from companies accounted for | |||||||||
| using the equity method directly recognized in equity | – | – | – | 1.9 | 6.5 | 8.4 | 8.4 | – | 8.4 |
| Fair value changes of financial assets held for sale | – | – | – | – | – 2.6 | – 2.6 | – 2.6 | – | – 2.6 |
| Fair value changes of derivatives | – | – | – | – | 22.1 | 22.1 | 22.1 | – | 22.1 |
| Net income (+)/Net costs (–) | |||||||||
| directly recognized in equity | 0.0 | 0.0 | 0.0 | 3.0 | 26.0 | 29.0 | 29.0 | – 0.1 | 28.9 |
| Issue of shares for employee investment plan | 0.6 | 1.9 | – | – | – | – | 2.5 | – | 2.5 |
| Management stock options plan | |||||||||
| – Capital increase for exercise of subscription rights | 0.1 | 0.2 | – | – | – | – | 0.3 | – | 0.3 |
| – Value of performed services (fair value) | – | – | – | – | – | – | 0.0 | – | 0.0 |
| Distributions | – | – | – 115.2 | – | – | – 115.2 | – 115.2 | – 4.0 | – 119.2 |
| Group result | – | – | 79.0 | – | – | 79.0 | 79.0 | 3.1 | 82.1 |
| Consolidation activities/other changes | – | – | – 0.2 | – | – | – 0.2 | – 0.2 | – | – 0.2 |
| Balance as at June 30, 2013 | 922.0 | 590.1 | 1,493.5 | 11.4 | – 91.0 | 1,413.9 | 2,926.0 | 34.7 | 2,960.7 |
| € million | Aviation | Retail & | Ground | External | Adjustment | Group | |
|---|---|---|---|---|---|---|---|
| Real Estate | Handling | Activities | |||||
| & Services | |||||||
| Revenue | 6M 2014 | 418.4 | 218.7 | 317.5 | 167.8 | 1,122.4 | |
| 6M 2013 adjusted | 402.7 | 228.7 | 313.9 | 195.4 | 1,140.7 | ||
| Other income | 6M 2014 | 16.7 | 5.8 | 8.5 | 6.5 | 37.5 | |
| 6M 2013 adjusted | 13.2 | 5.1 | 6.1 | 6.7 | 31.1 | ||
| Third-party revenue | 6M 2014 | 435.1 | 224.5 | 326.0 | 174.3 | 1,159.9 | |
| 6M 2013 adjusted | 415.9 | 233.8 | 320.0 | 202.1 | 1,171.8 | ||
| Inter-segment revenue | 6M 2014 | 38.4 | 115.2 | 16.5 | 174.2 | – 344.3 | |
| 6M 2013 adjusted | 38.0 | 115.6 | 17.9 | 176.1 | – 347.6 | ||
| Total revenue | 6M 2014 | 473.5 | 339.7 | 342.5 | 348.5 | – 344.3 | 1,159.9 |
| 6M 2013 adjusted | 453.9 | 349.4 | 337.9 | 378.2 | – 347.6 | 1,171.8 | |
| EBITDA | 6M 2014 | 104.4 | 172.3 | 11.2 | 66.3 | 354.2 | |
| 6M 2013 adjusted | 86.7 | 172.1 | 2.0 | 61.2 | 322.0 | ||
| Depreciation and amortization | 6M 2014 | 58.3 | 41.2 | 18.5 | 30.5 | 148.5 | |
| of segment assets | 6M 2013 adjusted | 56.7 | 39.7 | 19.1 | 26.8 | 142.3 | |
| Segment result (EBIT) | 6M 2014 | 46.1 | 131.1 | – 7.3 | 35.8 | 205.7 | |
| 6M 2013 adjusted | 30.0 | 132.4 | – 17.1 | 34.4 | 179.7 | ||
| Book value of | June 30, 2014 | 4,085.8 | 2,570.5 | 693.3 | 1,293.7 | 55.2 | 8,698.5 |
| segment assets | Dec. 31, 2013 adjusted | 4,083.5 | 2,651.0 | 737.6 | 1,314.5 | 49.2 | 8,835.8 |
The 2013 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, 2014 have been prepared in accordance with IAS 34. As far as they apply to the Fraport Group, all official bulletins of the IASB as of January 1, 2014 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 2013 Annual Report (see 2013 Annual Report beginning on page 105).
The interim financial statements were not reviewed or audited by an independent auditor.
Since the start of the year, Fraport uses five new and revised standards that amend the regulation of consolidation and accounting of investments in associates and joint ventures and the associated disclosures. They are: IFRS 10 "Consolidated Financial Statements", IFRS 11 "Joint Arrangements", IFRS 12 "Disclosure of Interests in Other Entities", IAS 27 "Separate Financial Statements" (revised 2011) and IAS 28 "Investments in Associates and Joint Ventures" (revised 2011). IFRS 10 replaces the consolidation guidelines in
IAS 27 "Consolidated and Separate Financial Statements" and SIC 12 "Consolidation – Special Purpose Entities". In the revised IFRS 10, the term "control" has been comprehensively redefined. It now states that control is given if the potential parent company holds the decision-making power over the potential subsidiary based on voting or other rights, participates in positive or negative variable returns from the subsidiary and can influence these returns with its decisionmaking powers.
There have been no changes to the scope of consolidation in the Fraport Group as a result of the first-time application of IFRS 10.
In the course of adopting IFRS 11 "Joint Arrangements", adjustments were also made to IAS 28. IAS 28 regulates (as before) the use of the equity method. The adoption of IFRS 11 has significantly increased its scope, as all joint ventures and not just investments in associated companies have to be accounted for using the equity method. The previous year's figures have been restated for the disclosures required in this interim report.
The effects from the transition from proportionate consolidation (reported) to the equity method (adjusted) on the presentation of the asset, financial and earnings position of the Fraport Group are presented in the comparison of the financial statements.
| € million | 6M 2013 | 6M 2013 | |
|---|---|---|---|
| reported | adjusted | Adjustment | |
| Revenue | 1,212.4 | 1,140.7 | – 71.7 |
| Change in work-in-process | 0.3 | 0.2 | – 0.1 |
| Other internal work capitalized | 16.1 | 15.7 | – 0.4 |
| Other operating income | 16.4 | 15.2 | – 1.2 |
| Total revenue | 1,245.2 | 1,171.8 | – 73.4 |
| Cost of materials | – 307.0 | – 298.7 | 8.3 |
| Personnel expenses | – 484.7 | – 476.2 | 8.5 |
| Other operating expenses | – 78.9 | – 74.9 | 4.0 |
| EBITDA | 374.6 | 322.0 | – 52.6 |
| Depreciation and amortization | – 171.2 | – 142.3 | 28.9 |
| EBIT/Operating result | 203.4 | 179.7 | – 23.7 |
| Interest income | 23.6 | 22.7 | – 0.9 |
| Interest expenses | – 112.3 | – 90.6 | 21.7 |
| Result from companies accounted for using the equity method | – 2.6 | – 2.2 | 0.4 |
| Other financial result | 7.3 | 8.0 | 0.7 |
| Financial result | – 84.0 | – 62.1 | 21.9 |
| EBT/Result from ordinary operations | 119.4 | 117.6 | – 1.8 |
| Taxes on income | – 37.3 | – 35.5 | 1.8 |
| Group result | 82.1 | 82.1 | 0.0 |
| thereof profit attributable to non-controlling interests | 3.1 | 3.1 | 0.0 |
| thereof profit attributable to shareholders of Fraport AG | 79.0 | 79.0 | 0.0 |
| Earnings per € 10 share in € | |||
| basic | 0.86 | 0.86 | 0.0 |
| diluted | 0.85 | 0.85 | 0.0 |
| € million | 6M 2013 | 6M 2013 | |
|---|---|---|---|
| reported | adjusted | Adjustment | |
| Group result | 82.1 | 82.1 | 0.0 |
| Items that will be reclassified subsequently to profit or loss | |||
| Fair value changes of derivatives | |||
| Changes directly recognized in equity | 18.8 | 20.8 | 2.0 |
| thereof realized gains (+)/losses (–) | – 18.8 | – 11.2 | 7.6 |
| 37.6 | 32.0 | – 5.6 | |
| (Deferred taxes related to those items | – 11.2 | – 9.9 | 1.3) |
| Fair value changes of financial instruments held for sale | |||
| Changes directly recognized in equity | – 3.8 | – 3.8 | 0.0 |
| thereof realized gains (+)/losses (–) | – 0.4 | – 0.4 | 0.0 |
| – 3.4 | – 3.4 | 0.0 | |
| (Deferred taxes related to those items | 0.8 | 0.8 | 0.0) |
| Currency translation of foreign Group Companies | 1.0 | 1.0 | 0.0 |
| Income and expenses from companies accounted | |||
| for using the equity method directly recognized in equity | 4.7 | 10.3 | 5.6 |
| (Deferred taxes related to those items | – 0.6 | – 1.9 | – 1.3) |
| Other result after deferred taxes | 28.9 | 28.9 | 0.0 |
| Comprehensive income | 111.0 | 111.0 | 0.0 |
| thereof attributable to non-controlling interests | 3.0 | 3.0 | 0.0 |
| thereof attributable to shareholders of Fraport AG | 108.0 | 108.0 | 0.0 |
| December 31, 2013 | January 1, 2013 | |||||
|---|---|---|---|---|---|---|
| € million | reported | adjusted | Adjustment | reported | adjusted | Adjustment |
| Non-current assets | ||||||
| Goodwill | 38.6 | 22.7 | – 15.9 | 38.6 | 22.7 | – 15.9 |
| Investments in airport operating projects | 1,006.1 | 458.1 | – 548.0 | 1,031.2 | 433.3 | – 597.9 |
| Other intangible assets | 57.8 | 51.1 | – 6.7 | 44.2 | 39.6 | – 4.6 |
| Property, plant and equipment | 5,988.1 | 5,962.3 | – 25.8 | 5,927.3 | 5,902.4 | – 24.9 |
| Investment property | 47.7 | 47.7 | 0.0 | 34.4 | 34.4 | 0.0 |
| Investments in companies accounted | ||||||
| for using the equity method | 121.2 | 213.9 | 92.7 | 136.6 | 205.0 | 68.4 |
| Other financial assets | 727.6 | 728.6 | 1.0 | 742.7 | 749.4 | 6.7 |
| Other receivables and financial assets | 169.8 | 172.2 | 2.4 | 117.1 | 112.4 | – 4.7 |
| Income tax receivables | 20.3 | 20.3 | 0.0 | 19.5 | 19.5 | 0.0 |
| Deferred tax assets | 43.7 | 27.9 | – 15.8 | 49.2 | 28.7 | – 20.5 |
| 8,220.9 | 7,704.8 | – 516.1 | 8,140.8 | 7,547.4 | – 593.4 | |
| Current assets | ||||||
| Inventories | 75.3 | 42.3 | – 33.0 | 77.7 | 43.4 | – 34.3 |
| Trade accounts receivable | 181.6 | 174.4 | – 7.2 | 180.0 | 173.0 | – 7.0 |
| Other receivables and financial assets | 438.4 | 426.4 | – 12.0 | 385.2 | 383.1 | – 2.1 |
| Income tax receivables | 2.1 | 1.0 | – 1.1 | 35.0 | 34.8 | – 0.2 |
| Cash and cash equivalents | 605.1 | 486.9 | – 118.2 | 821.9 | 715.2 | – 106.7 |
| 1,302.5 | 1,131.0 | – 171.5 | 1,499.8 | 1,349.5 | – 150.3 | |
| 9,523.4 | 8,835.8 | – 687.6 | 9,640.6 | 8,896.9 | – 743.7 | |
| Liabilites and Equity | December 31, 2013 | January 1, 2013 | ||||
| € million | reported | adjusted | Adjustment | reported | adjusted | Adjustment |
| Shareholders' equity | ||||||
| Issued capital | 922.1 | 922.1 | 0.0 | 921.3 | 921.3 | 0.0 |
| Capital reserve | 590.2 | 590.2 | 0.0 | 588.0 | 588.0 | 0.0 |
| Revenue reserves | 1,540.8 | 1,558.7 | 17.9 | 1,403.2 | 1,421.3 | 18.1 |
| Equity attributable to shareholders of Fraport AG | 3,053.1 | 3,071.0 | 17.9 | 2,912.5 | 2,930.6 | 18.1 |
| Non-controlling interests | 45.7 | 45.7 | 0.0 | 35.7 | 35.7 | 0.0 |
| 3,098.8 | 3,116.7 | 17.9 | 2,948.2 | 2,966.3 | 18.1 | |
| Non-current liabilities | ||||||
| Financial liabilities | 4,146.8 | 3,948.1 | – 198.7 | 4,401.0 | 4,179.1 | – 221.9 |
| Trade accounts payable | 50.8 | 50.8 | 0.0 | 64.4 | 64.4 | 0.0 |
| Other liabilities | 889.4 | 491.6 | – 397.8 | 1,006.4 | 578.0 | – 428.4 |
| Deferred tax liabilities | 120.4 | 108.3 | – 12.1 | 102.5 | 89.2 | – 13.3 |
| Provisions for pensions and similar obligations | 26.7 | 26.7 | 0.0 | 27.4 | 27.4 | 0.0 |
| Provisions for income taxes | 54.1 | 54.1 | 0.0 | 80.2 | 80.2 | 0.0 |
| Other provisions | 235.1 | 223.9 | – 11.2 | 211.2 | 200.5 | – 10.7 |
| 5,523.3 | 4,903.5 | – 619.8 | 5,893.1 | 5,218.8 | – 674.3 | |
| Current liabilities | ||||||
| Financial liabilities | 314.9 | 290.6 | – 24.3 | 196.6 | 172.5 | – 24.1 |
| Trade accounts payable | 162.4 | 159.6 | – 2.8 | 214.4 | 210.3 | – 4.1 |
| Other liabilities | 178.4 | 123.1 | – 55.3 | 163.2 | 106.5 | – 56.7 |
| Provisions for income taxes | 8.1 | 7.7 | – 0.4 | 5.3 | 5.0 | – 0.3 |
| Other provisions | 237.5 | 234.6 | – 2.9 | 219.8 | 217.5 | – 2.3 |
| 901.3 | 815.6 | – 85.7 | 799.3 | 711.8 | – 87.5 | |
| 9,523.4 | 8,835.8 | – 687.6 | 9,640.6 | 8,896.9 | – 743.7 |
| € million | 6M 2013 | 6M 2013 | |
|---|---|---|---|
| reported | adjusted | Adjustment | |
| Cash flow from operating activities | 231.5 | 205.7 | – 25.8 |
| Cash flow used in investing activities | – 76.5 | – 21.2 | 55.3 |
| Cash flow used in financing activities | – 138.9 | – 134.9 | 4.0 |
| € million | Aviation | Retail & | Ground | External | Adjustment | Group | ||
|---|---|---|---|---|---|---|---|---|
| Real Estate | Handling | Activities | ||||||
| & Services | ||||||||
| Revenue | reported | 6M 2013 | 402.5 | 229.1 | 320.8 | 260.0 | 1,212.4 | |
| adjusted | 6M 2013 | 402.7 | 228.7 | 313.9 | 195.4 | 1,140.7 | ||
| Adjustment | 0.2 | – 0.4 | – 6.9 | – 64.6 | – 71.7 | |||
| Other income | reported | 6M 2013 | 13.2 | 5.2 | 6.8 | 7.6 | 32.8 | |
| adjusted | 6M 2013 | 13.2 | 5.1 | 6.1 | 6.7 | 31.1 | ||
| Adjustment | 0.0 | – 0.1 | – 0.7 | – 0.9 | – 1.7 | |||
| Third-party revenue | reported | 6M 2013 | 415.7 | 234.3 | 327.6 | 267.6 | 1,245.2 | |
| adjusted | 6M 2013 | 415.9 | 233.8 | 320.0 | 202.1 | 1,171.8 | ||
| Adjustment | 0.2 | – 0.5 | – 7.6 | – 65.5 | – 73.4 | |||
| Inter-segment revenue | reported | 6M 2013 | 38.4 | 118.2 | 17.9 | 173.8 | – 348.3 | |
| adjusted | 6M 2013 | 38.0 | 115.6 | 17.9 | 176.1 | – 347.6 | ||
| Adjustment | – 0.4 | – 2.6 | 0.0 | 2.3 | 0.7 | |||
| Total revenue | reported | 6M 2013 | 454.1 | 352.5 | 345.5 | 441.4 | – 348.3 | 1,245.2 |
| adjusted | 6M 2013 | 453.9 | 349.4 | 337.9 | 378.2 | – 347.6 | 1,171.8 | |
| Adjustment | – 0.2 | – 3.1 | – 7.6 | – 63.2 | 0.7 | – 73.4 | ||
| Segment result (EBIT) | reported | 6M 2013 | 28.6 | 132.6 | – 14.6 | 56.8 | 203.4 | |
| adjusted | 6M 2013 | 30.0 | 132.4 | – 17.1 | 34.4 | 179.7 | ||
| Adjustment | 1.4 | – 0.2 | – 2.5 | – 22.4 | – 23.7 | |||
| EBITDA | reported | 6M 2013 | 85.4 | 172.3 | 5.5 | 111.4 | 374.6 | |
| adjusted | 6M 2013 | 86.7 | 172.1 | 2.0 | 61.2 | 322.0 | ||
| Adjustment | 1.3 | – 0.2 | – 3.5 | – 50.2 | – 52.6 |
The following tables present the carrying amounts and fair values of the financial instruments as of June 30, 2014 and December 31, 2013, respectively:
| € million | Measured at amortized cost | Measured at fair value | June 30, 2014 |
||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Recognized in income | |||||||||||||
| Measurement category | Nominal | Fair value | Held for | Hedging | Total | ||||||||
| according to IAS 39 | volume | Loans and receivables | option | trading | Available for sale | derivative | fair value | ||||||
| Assets | Liquid funds | Carrying amount |
Fair value | Carrying amount 1 |
Carrying amount 1 |
Carrying amount 1 |
Carrying amount 1 |
||||||
| Cash and cash equivalents | 365.4 | 365.4 | |||||||||||
| Trade accounts receivable | 203.5 | 203.5 | 203.5 | ||||||||||
| Other financial receivables | |||||||||||||
| and assets | 87.3 | 87.3 | 278.4 | 365.7 | |||||||||
| Other financial assets | |||||||||||||
| – Securities | 527.5 | 527.5 | |||||||||||
| – Other investments | 65.2 | 65.2 | |||||||||||
| – Loans to investments | 124.6 | 124.6 | 124.6 | ||||||||||
| – Other loans | 31.7 | 31.7 | 31.7 | ||||||||||
| Derivative financial assets | |||||||||||||
| – Hedging derivative | 0.0 | ||||||||||||
| – Other derivatives | 0.0 | ||||||||||||
| Total assets | 365.4 | 447.1 | 447.1 | 0.0 | 0.0 | 871.1 | 0.0 | 1,683.6 | |||||
| Fair value | Held for | IAS 17 | Hedging | Total | |||||||||
| Other financial liabilities | option | trading | liability | derivative | fair value | ||||||||
| Liabilities and equity | Carrying amount |
Fair value | Carrying amount 1 |
Carrying amount 1 |
Carrying amount |
Fair value | Carrying amount 1 |
||||||
| Trade accounts payable | 201.0 | 206.1 | 206.1 | ||||||||||
| Other financial liabilities | 278.4 | 354.9 | 354.9 | ||||||||||
| Financial liabilities | 4,114.4 | 4,294.3 | 4,294.3 | ||||||||||
| Liabilities from finance lease | 53.9 | 59.7 | 59.7 | ||||||||||
Derivative financial liabilities
– Hedging derivative 122.5 122.5
– Other derivatives 39.1 39.1
Total liabilities and equity 4,593.8 4,855.3 39.1 53.9 59.7 122.5 5,076.6
1 The carrying amount equals the fair value of the financial instruments.
| € million | Measured at amortized cost | Measured at fair value | Dec. 31, 2013 |
|||||
|---|---|---|---|---|---|---|---|---|
| Recognized in income | ||||||||
| Measurement category | Nominal | Fair value | Held for | Hedging | Total | |||
| according to IAS 39 | volume | Loans and receivables | option | trading | Available for sale | derivative | fair value | |
| Assets | Liquid funds | Carrying amount |
Fair value | Carrying amount 1 |
Carrying amount 1 |
Carrying amount 1 |
Carrying amount 1 |
|
| Cash and cash equivalents | 486.9 | 486.9 | ||||||
| Trade accounts receivable | 174.4 | 174.4 | 174.4 | |||||
| Other financial receivables | ||||||||
| and assets | 102.7 | 102.7 | 304.0 | 406.7 | ||||
| Other financial assets | ||||||||
| – Securities | 517.3 | 517.3 | ||||||
| – Other investments | 59.5 | 59.5 | ||||||
| – Loans to investments | 124.6 | 124.6 | 124.6 | |||||
| – Other loans | 27.2 | 27.2 | 27.2 | |||||
| Derivative financial assets | ||||||||
| – Hedging derivative | 0.0 | |||||||
| – Other derivatives | 0.0 | |||||||
| Total assets | 486.9 | 428.9 | 428.9 | 0.0 | 0.0 | 880.8 | 0.0 | 1,796.6 |
| Fair value | Held for | IAS 17 | Hedging | Total | ||||
|---|---|---|---|---|---|---|---|---|
| Other financial liabilities | option | trading | liability | derivative | fair value | |||
| Liabilities and equity | Carrying | Fair value | Carrying | Carrying | Carrying | Fair value | Carrying | |
| amount | amount 1 | amount 1 | amount | amount 1 | ||||
| Trade accounts payable | 210.3 | 214.2 | 214.2 | |||||
| Other financial liabilities | 288.3 | 362.0 | 362.0 | |||||
| Financial liabilities | 4,238.7 | 4,332.0 | 4,332.0 | |||||
| Liabilities from finance lease | 58.2 | 63.8 | 63.8 | |||||
| Derivative financial liabilities | ||||||||
| – Hedging derivative | 119.9 | 119.9 | ||||||
| – Other derivatives | 33.6 | 33.6 | ||||||
| Total liabilities and equity | 4,737.3 | 4,908.2 | 33.6 | 58.2 | 63.8 | 119.9 | 5,125.5 |
1 The carrying amount equals the fair value of the financial instruments.
Given the short maturities for cash and cash equivalents, trade accounts receivable and other financial receivables and assets, the carrying amounts as of the reporting date correspond to the fair value.
The valuation of unlisted securities is 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 mainly 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 risk premium for the term and the respective borrower on the reporting date is added to the cash flows.
The fair values of listed securities are identical to the stock market prices on the reporting date.
There are no price quotations or market prices for shares in partnerships and other unlisted investments, as there are no active markets for them. The carrying amount is assumed to equal the fair value, since the fair value cannot be determined reliably. These assets are not intended for sale as of the balance sheet date.
The carrying amounts of other loans and loans to investments 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 of 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 of 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 of the reporting date. The carrying amounts of current liabilities are equal to the fair value.
The financial instruments recognized at fair value in the statement of financial position belong to the following measurement categories of the hierarchy within the meaning of IFRS 13:
| € million | Level 1 | Level 2 | Level 3 | |
|---|---|---|---|---|
| Assets | June 30, 2014 | Quoted prices | Derived prices | Prices that cannot |
| be derived | ||||
| Other financial receivables and financial assets | ||||
| – Available for sale | 278.4 | 278.4 | 0.0 | 0.0 |
| – Fair value option | 0.0 | 0.0 | 0.0 | 0.0 |
| Other financial assets | ||||
| – Securities available for sale | 527.5 | 527.5 | 0.0 | 0.0 |
| – Securities fair value option | 0.0 | 0.0 | 0.0 | 0.0 |
| – Other investments | 64.9 | 0.0 | 64.9 | 0.0 |
| Derivative financial assets | ||||
| – Derivatives without hedging relationships | 0.0 | 0.0 | 0.0 | 0.0 |
| – Derivatives with hedging relationships | 0.0 | 0.0 | 0.0 | 0.0 |
| Total assets | 870.8 | 805.9 | 64.9 | 0.0 |
| Liabilities and equity | ||||
| Derivative financial liabilities | ||||
| – Derivatives without hedging relationships | 39.1 | 0.0 | 39.1 | 0.0 |
| – Derivatives with hedging relationships | 122.5 | 0.0 | 122.5 | 0.0 |
| Total liabilities and equity | 161.6 | 0.0 | 161.6 | 0.0 |
As of December 31, 2013, 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 | Level 1 | Level 2 | Level 3 | |
|---|---|---|---|---|
| Assets | December 31, 2013 | Quoted prices | Derived prices | Prices that cannot |
| be derived | ||||
| Other financial receivables and financial assets | ||||
| – Available for sale | 304.0 | 304.0 | 0.0 | 0.0 |
| – Fair value option | 0.0 | 0.0 | 0.0 | 0.0 |
| Other financial assets | ||||
| – Securities available for sale | 517.3 | 517.3 | 0.0 | 0.0 |
| – Securities fair value option | 0.0 | 0.0 | 0.0 | 0.0 |
| – Other investments | 59.2 | 0.0 | 59.2 | 0.0 |
| Derivative financial assets | ||||
| – Derivatives without hedging relationships | 0.0 | 0.0 | 0.0 | 0.0 |
| – Derivatives with hedging relationships | 0.0 | 0.0 | 0.0 | 0.0 |
| Total assets | 880.5 | 821.3 | 59.2 | 0.0 |
| Liabilities and equity | ||||
| Derivative financial liabilities | ||||
| – Derivatives without hedging relationships | 33.6 | 0.0 | 33.6 | 0.0 |
| – Derivatives with hedging relationships | 119.9 | 0.0 | 119.9 | 0.0 |
| Total liabilities and equity | 153.5 | 0.0 | 153.5 | 0.0 |
As at June 30, 2014, a total of 58 companies including associates were consolidated in the Fraport Group, the same number as at December 31, 2013.
There were no material changes arising regarding type and scope as of June 30, 2014. As disclosed in note 48 of the Group notes to the 2013 Annual Report (see 2013 Annual Report beginning on page 169), there continue to be numerous business relationships with related parties, which are unchanged 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 2014 | 6M 2014 | 6M 2013 | 6M 2013 | |
|---|---|---|---|---|
| basic | diluted | basic | diluted | |
| Profit attributable to shareholders of Fraport AG in € million | 88.3 | 88.3 | 79.0 | 79.0 |
| Weighted average number of shares | 92,215,666.96 | 92,866,322.96 | 92,139,465.41 | 92,521,315.41 |
| Earnings per €10 share in € | 0.96 | 0.95 | 0.86 | 0.85 |
| Q2 2014 | Q2 2014 | Q2 2013 | Q2 2013 | |
| basic | diluted | basic | diluted | |
| Profit attributable to shareholders of Fraport AG in € million | 81.8 | 81.8 | 73.9 | 73.9 |
| Weighted average number of shares | 92,217,683.80 | 92,868,343.10 | 92,141,339.82 | 92,512,889.82 |
| Earnings per €10 share in € | 0.89 | 0.88 | 0.80 | 0.80 |
The breakdown and development of shareholders' equity from January 1 to June 30, 2014 is presented in the statement of changes in equity in the Group interim financial statements as of June 30, 2014. The statement of changes in equity also shows the development for the previous year.
As of June 30, 2014, a total of 2,016,150 stock options had been issued under Fraport AG's stock options plans (see 2013 Annual Report beginning on page 138). A total of 1,143,100 stock options were issued in 2009 when the fifth and final tranche was issued under the 2005 Fraport Management Stock Options Plan. As of June 30, 2014, 870,400 of these stock options had expired and 272,700 subscription rights had been exercised. The exercise period of the final tranche of the 2005 Fraport Management Stock Options Plan ended on April 10, 2014. A new plan was not issued.
Compared to December 31, 2013, order commitments related to capital expenditure on non-current assets rose by €20.9 million from €199.6 million to €220.5 million.
The first-time application of IFRS 11 did not have any significant effects on contingent liabilities or other financial commitments.
In the contingent liabilities and other financial commitments, payment commitments for the interests in Delhi (€17.6 million) and Antalya (€17.5 million) no longer exist. There have been no other material changes compared with December 31, 2013.
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 the 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 7, 2014 Fraport AG Frankfurt Airport Services Worldwide The Executive Board
Dr Schulte Giesen Müller Schmitz Dr Zieschangg
| Thursday, November 6, 2014 | Group Interim Report January 1 to September 30, 2014 | ||||
|---|---|---|---|---|---|
| Online publication, press conference and conference call with analysts and investors | |||||
| Thursday, March 19, 2015 | Annual Report 2014 | ||||
| Online publication, press conference, conference with analysts and investors and video conference | |||||
| Thursday, May 7, 2015 | Group Interim Report January 1 to March 31, 2015 | ||||
| Online publication, conference call with analysts and investors | |||||
| Friday, May 29, 2015 | Annual General Meeting 2015 | ||||
| Frankfurt am Main, Jahrhunderthalle | |||||
| Monday, June 1, 2015 | Dividend payment | ||||
| Thursday, August 6, 2015 | Group Interim Report January 1 to June 30, 2015 | ||||
| Online publication, conference call with analysts and investors | |||||
| Thursday, November 5, 2015 | Group Interim Report January 1 to September 30, 2015 | ||||
| Online publication, press conference and conference call with analysts and investors | |||||
| Tuesday, August 12, 2014 | July 2014 |
|---|---|
| Wednesday, September 10, 2014 | August 2014 |
| Monday, October 13, 2014 | September 2014/9M 2014 |
| Wednesday, November 12, 2014 | October 2014 |
| Wednesday, December 10, 2014 | November 2014 |
| Thursday, January 15, 2015 | December 2014/FY 2014 |
| Wednesday, February 11, 2015 | January 2015 |
| Wednesday, March 11, 2015 | February 2015 |
| Tuesday, April 14, 2015 | March 2015/3M 2015 |
| Wednesday, May 13, 2015 | April 2015 |
| Thursday, June 11, 2015 | May 2015 |
| Friday, July 10, 2015 | June 2015/6M 2015 |
| 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 |
Published by: Fraport AG Frankfurt Airport Services Worldwide 60547 Frankfurt am Main, Germany Telephone: +49 (0)1806 3724636* Internet: www.fraport.com
Responsible for the content: Finance and Investor Relations (FIR) Layout and production: Corporate Communications (UKM-IK) Publication date: August 7, 2014 (08/14/0,03/APC)
*20 Cents (€) per call within German landline network; mobile phone rates vary – maximum 60 Cents (€) within Germany.
Stefan J. Rüter, Head of Finance and Investor Relations Telephone: +49 (0)69 690-74840, Telefax: +49 (0)69 690-74843 Internet: www.meet-ir.com E-Mail: [email protected]
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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