Flughafen Wien AG

Earnings Release • Nov 18, 2011

News Details

Ad-hoc | 18 November 2011 09:37

Flughafen Wien AG: Ad hoc press release / Flughafen Wien AG issues profit warning

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

18.11.2011 09:37

Dissemination of an Ad hoc announcement, transmitted by DGAP - a company of
EquityStory AG.
The issuer is solely responsible for the content of this announcement.

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* Non-recurring effects and impairment charges of approx. EUR 74 million
have a negative effect on results for the first nine months of 2011;
preliminary net profit for the period falls to approx. EUR 20 million

* Skylink: experts identify damages of approx. EUR 57 million from
deficient contract performance - Flughafen Wien will actively pursue claims
for compensation

* Management Board cuts capital expenditure programme for the period up to
2015 by EUR 70 million to EUR 590 million

In connection with the preparation of the financial statements for the
third quarter, the management board of the issuer has determined the
following on November 18, 2011:

The impairment charges and non-recurring effects of approx. EUR 74 million
are attributable to the terminal extension Skylink, the investment inKošice
Airport and an investment property at Vienna Airport; in addition,
provisions must be recognised to cover part-time work for older employees.
These non-recurring effects will have a negative effect on earnings in the
third quarter of 2011, and preliminary net income for the first nine months
of this year will fall to approx. EUR 20 million. Despite these results the
company's operating development is positive, with an increase of 7.5% in
traffic during the first three quarters of 2011.

Skylink: Flughafen Wien is evaluating legal steps

In the cases reviewed by technical experts, damages of approx. EUR 57
million were identified as the result of deficient performance by
contractors and unjustified increases in cost. Impairment charges totalling
EUR 29 million were recognised. Flughafen Wien AG will actively pursue
claims for compensation from the involved companies. One company has
already repaid EUR 7.6 million to Flughafen Wien AG, whereby the public
prosecutor's office has also launched an investigation in this case.

Impairment charge to Košice Airport

In the fourth quarter of 2006 Flughafen Wien acquired a stake in Košice
Airport through a consortium, and FWAG now holds an indirect share of 66%.
The carrying amount of the investment in Košice Airport, which is accounted
for at equity, equals EUR 47 million before the recognition of any
impairment charges. This company was profitable in the past, but the latest
medium term forecasts indicate that traffic growth will fall substantially
below earlier expectations. Consequently, the carrying amount of the
investment must be reduced through an impairment charge of EUR 21 million.

Impairment charge to investment property and provisions for part-time work
for older employees

Recent detailed examinations indicate that a building at Vienna Airport
will not reach the expected occupancy level over the medium-term. The
carrying amount of this investment will therefore be reduced through an
impairment charge of EUR 18 million as of 30 September 2011. Additionally,
provisions of approx. EUR 6 million must be recognised to cover part-time
work for older employees.

Management Board cuts capital expenditure to strengthen earning power over
the medium term

The Management Board is taking further steps to increase the company's
earning power and is cutting capital expenditure by approx. EUR 70 million
to EUR 590 million for the period up to 2015. In addition to the
cancellation of individual projects and a reduction in the respective
expenditures, the maximum cost for the Skylink will decline to EUR 770
million. The reduction comprises cost savings as well as the release of
risk provisions. These effects decrease medium term financing requirements
and, in turn, will have a positive influence on the company's gearing.

Detailed results on the first nine months will be announced on 24 November
2011.

Kontakt:
Judit Helenyi
Tel: +43 1 7007/23126
Mario Santi
Tel: +43 1 7007/22826
e-mail: investor-relations@viennaairport.com

Investor Relations
Flughafen Wien AG

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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; Open Market in
Frankfurt; London, Wien (Amtlicher Handel / Official Market)

End of Announcement DGAP News-Service

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