Flughafen Wien AG

Earnings Release • Feb 25, 2014

News Details

Corporate | 25 February 2014 08:00

Flughafen Wien AG: Preliminary Results for the full year 2013

Flughafen Wien AG / Key word(s): Preliminary Results

25.02.2014 / 08:00

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Flughafen Wien AG with sound results for 2013:*

Increase in revenue and earnings

Positive outlook on 2014

– REVENUE rises to EUR 622.0 million (+2.4%)

– EBITDA improves substantially to EUR 241.5 million (+9.1%)

– NET PROFIT increases to EUR 73.3 million (+1.3%), despite higher scheduled depreciation (+ EUR 16 million) for Check-in 3

– NET DEBT falls to EUR 633.4 million (minus EUR 86 million versus 2012) – further reduction targeted

– DIVIDEND: increase to EUR 1.30 per share recommended (2012: EUR 1.05)

– INVESTMENTS total EUR 73 million, EUR 110 million planned in 2014

– POSITIVE OUTLOOK for 2014: expected increase in revenues over EUR 630 million

and net profit to over EUR 75 million

Flughafen Wien recorded sound development in 2013 with an increase in revenue, EBITDA and net profit. All business targets were met. The successful development of the company is also reflected on the capital market: the price of the Flughafen Wien share has risen by 129% since the low at the beginning of 2012. Market capitalisation increased by EUR 830 million, from EUR 547 million at the beginning of 2012 to approx. EUR 1,377 million as of 21 February 2014.

The outlook for 2014 points to a continuation of the upward trend: the number of passengers should increase between 1% and 3%, while the development of flight movements should range from -1% to +1%. Against this backdrop, revenue is expected to rise to over EUR 630 million, EBITDA to over EUR 240 million and net profit to over EUR 75 million. Net debt should fall below EUR 600 million.

“The company’s productivity has improved significantly since 2011, and the EBITDA margin has increased substantially from 32.5% to 38.8%. The clear strategic goals for 2014 are focused on growth, the improvement of quality and the optimisation of the airport location as well as the expansion of the non-aviation business. Investments of approx. EUR 110 million are planned for 2014 and will include the modernisation of infrastructure, completion of the railway station and a hangar as well as the further development of real estate”, explained Günther Ofner, member of the Management Board of Flughafen Wien AG.

“All in all, we have the development of costs and productivity under control. The first full year of operations in Check-in 3, the increase in terminal areas since the opening and the severe winter had a strong impact on operating and personnel expenses. However, we were able to offset this development with cost savings. We are optimistic over the development of business in 2014: the summer flight plan already includes a number of new destinations and additional connections. New airlines such as Air China, Air Algérie and Jet2.com have already announced their plans for the start of flights to Vienna. Our forecasts for 2014 call for an increase in the number of passengers”, commented Julian Jäger, member of the Management Board of Flughafen Wien AG.

Dividend rises to EUR 1.30 per share

Supported by the sound development of business in 2013, the Annual General Meeting on 5 May 2014 will be asked to approve a dividend of EUR 1.30 per share (2012: EUR 1.05) for total of EUR 27.3 million. The employees of Flughafen Wien AG will also participate in this distribution through the employee foundation that holds 10% of the shares. The dividend yield for the 2013 financial year equals 2.1% based on the share price as of 31 December 2013, and the pay-out ratio represents roughly 40% of net profit for 2013.

Revenue and earnings development in the segments

Revenue in the Airport Segment rose by 5.1% year-on-year to EUR 331.4 million. The effects of the sharp rise in depreciation over the previous year due to the start of operations in Check-in 3 and higher costs related to the increase in winter services led, as expected, to a decline in EBIT to EUR 42.0 million.

The Handling Segment recorded a slight 2.6% decline in revenue to EUR 151.9 million. This development resulted primarily from the lower number of flight movements, which was offset in part by higher income from de-icing services. The steady implementation of the cost reduction and efficiency improvement strategy led to segment EBIT of EUR 17.2 million. Included here are security services of VIAS as well as the handling services provided by Vienna Aircraft Handling (VAH). The 5.5% decline in flight movements during 2013 naturally had a strong effect on the Handling Segment, and the generation of positive earnings will also represent a particular challenge in the future.

The Retail & Properties Segment registered sound development in 2013, with an increase of 1.4% in revenue to EUR 121.2 million. This growth was supported chiefly by higher income from the increased marketing of advertising space and from shopping and gastronomy; alone in 2013, 29 new shops opened at Vienna Airport. EBIT rose to EUR 41.9 million. Revenue in the Other Segments increased by 5.4% to EUR 17.5 million (EBIT EUR 11.1 million).

Investments

Investments declined to EUR 72.9 million in 2013 as the result of cost savings and invoice corrections in favour of Flughafen Wien, also in connection with an arbitration court’s decision against a contractor who worked on Check-in 3. From the current point of view, the costs for Check-in 3 will be lower than EUR 725 million. Investments of approx. EUR 110 million are planned for 2014.

Traffic development influenced by challenges in 2013 – growth expected in 2014

Vienna Airport handled a total of 21,999,926 passengers in 2013 (-0.7%) in a challenging year that was characterised by a difficult market environment for the aviation industry throughout Europe, capacity reductions by the airlines, crisis situations in Egypt and the Middle East as well as numerous flight cancellations due to the severe winter with extremely heavy snowfall and strikes in Germany. The number of departures and arrivals fell by 5.5%, but the seat occupancy factor rose by 1.9 percentage points to 74.8% in 2013. Cargo followed declines at the beginning of the year with an increase of 10% in the second six months and a plus of 1.6% for the full year to 256,194 tonnes. 71 airlines serviced Vienna Airport on a result basis in 2013; these airlines carried passengers to 177 destinations in 69 countries. Flughafen Wien is expecting a return to growth in passenger volumes during 2014.

Preliminary Consolidated Financial Statements*

Income Statement in EUR million	2013	2012	Change in %
Revenue	622.0	607.4	2.4
Other operating income	23.8	24.1	-1.3
Operating income	645.8	631.5	2.3
Consumables and services used	-46.1	-43.2	6.8
Personnel expenses	-245.8	-249.7	-1.6
Other operating expenses	-112.3	-117.2	-4.2
Earnings before interest, taxes, depreciation and amortisation (EBITDA)	241.5	221.4	9.1
Depreciation and amortisation	-124.3	-98.1	26.7
Impairment	-5.1	-15.2	-66.4
Earnings before interest and taxes (EBIT)	112.1	108.0	3.8
Income from investments, excl. companies at equity	2.3	0.9	150.8
Interest income	2.2	4.2	-48.2
Interest expense	-25.9	-25.2	3.0
Other financial expense/income	0.0	0.2	n.a.
Financial results, excl. companies at equity	-21.4	-19.9	7.7
Proportional share of income from companies recorded at equity	6.2	5.6	9.4
Financial results	-15.3	-14.3	7.1
Profit before taxes (EBT)	96.8	93.7	3.2
Income taxes	-23.5	-21.4	9.7
Net profit for the period	73.3	72.3	1.3
Thereof attributable to:
Equity holders of the parent	73.3	71.9	1.9
Non-controlling interests	0.0	0.4	n.a.
Earnings per share (in EUR, diluted = basic)	3.49	3.42	2.0

Balance Sheet Indicators in EUR million	2013	2012	Change in %
ASSETS:
Non-current assets	1,857.6	1,911.7	-2.8
Current assets	96.3	150.1	-35.8
EQUITY AND LIABILITIES:
Equity	905.9	851.6	6.4
Non-current liabilities	748.2	834.2	-10.3
Current liabilities	299.8	376.0	-20.3
Balance sheet total	1,953.9	2,061.8	-5.2
Net debt	633.4	719.6	-12.0
Gearing (in %)	69.9	84.5	-14.6%p.

Cash Flow Statement in EUR million	2013	2012	Change in %
Cash flow from operating activities	204.4	179.7	13.7
from investing activities	-86.4	-126.7	-31.8
from financing activities	-154.5	-123.9	24.7
Free cash flow	118.0	53.0	122.8
CAPEX	72.9	101.7	-28.3

* All amounts and financial indicators are related to the preliminary results

of Flughafen Wien AG for 2013.

The full annual report by Flughafen Wien AG on the 2013 financial year from 1 January to 31 December 2013 will be published at the beginning of April 2014 and be available under http://ir.viennaairport.com , menu point – Publications and reports – subpoint – Annual reports or Financial reports respectively.

The Management Board

Flughafen Wien, 25 February 2014

Contact:

Judit Helenyi

Flughafen Wien AG

Investor Relations

Tel: +43 1 7007/23126

e-mail: j.helenyi@viennaairport.com

End of Corporate News

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Language:	English
Company:	Flughafen Wien AG
	Postfach 1
	1300 Wien-Flughafen
	Austria
Phone:	+43-1-7007/22826
Fax:	+43-1-7007/23806
E-mail:	investor-relations@viennaairport.com
Internet:	http://www.viennaairport.com
ISIN:	AT0000911805
WKN:	884216
Indices:	ATX Prime
Listed:	Freiverkehr in Berlin, München, Stuttgart; Frankfurt in Open Market ; London, Wien (Amtlicher Handel / Official Market)

End of News	DGAP News-Service

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