Flughafen Wien AG

Earnings Release • Mar 22, 2007

News Details

Corporate | 22 March 2007 10:00

Flughafen Wien AG: 3.3% increase in net profit for 2006

Flughafen Wien AG / Final Results

Release of a Corporate-announcement, transmitted by DGAP - a company of
EquityStory AG.
The issuer is solely responsible for the content of this announcement.

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The Flughafen Wien Group can look back on a successful year in 2006.
Turnover rose by 13.1% to € 463.9 million, EBITDA increased by 13.3% to €
169.6 million and the EBITDA margin improved to 35.6%. Income before
interest and taxes (EBIT) climbed 12.3% to € 103.7 million and net profit
for the year totalled € 76.8 million, for an increase of 3.3%. Financial
results turned from a plus of € 7.7 million in the previous year to a minus
of € 1.8 million in 2006. The slower growth in profit compared to the
strong rise in EBIT and turnover resulted from the high pace of investment
activity at Vienna International Airport.

Growth strategy supports excellent traffic development
The Flughafen Wien Group continued to pursue its three-point growth
strategy in 2006, which is focused on Eastern Europe, middle and long-haul
flights and low-cost carriers. The volume of passengers at Vienna
International Airport as well as the number of flight movements and maximum
take-off weight exceeded forecasts for the year. Vienna International
Airport handled a total of 16.9 million passengers in 2006 – including 5.7
million transfer passengers – which represents an increase of 6.3% over the
previous year and also outpaced the European average of 5.7%. The low-cost
carriers provided an important impulse for this growth with 2.2 million
passengers and a plus of 13.2%.

Top position with destinations in Eastern Europe
Vienna International Airport also strengthened its position as an east-west
hub for European air travel during the past year. A flight plan that offers
45 destinations in Eastern Europe ranked Vienna among the leading airports
in Europe, and brought an increase of 8.0% in the number of passengers
travelling to this region in 2006. Another important driver for growth was
cargo handling, which rose by 13.3% following an increase in the frequency
of 'cargo only' flights by Asiana Airlines and Korean Air. Transfers
equalled 33.7% of the total number of passengers using Vienna International
Airport in 2006, and nearly matched the high level recorded in the previous
year.

Activities in 2006 were also influenced by the rapid expansion of Vienna
International Airport and the acquisition of Košice Airport in Eastern
Slovakia. Flughafen Wien AG also purchased an additional stake of roughly
2% in Malta International Airport Plc during 2006. Together with its
consortium partners, Flughafen Wien AG now owns roughly 50% of the shares
in Malta International Airport.

Earning position in detail
Turnover recorded by the Flughafen Wien Group rose by 13.1% to € 463.9
million in 2006. Income before interest, taxes, depreciation and
amortisation (EBITDA) increased 13.3% to € 169.6 million and the EBITDA
margin improved to 35.6%. Income before interest and taxes grew 12.3% to €
103.7 million.

The EBIT margin rose to 21.7%. Financial results turned from a plus of €
7.7 million in the previous year to a minus of € 1.8 million for 2006. This
reversal was caused primarily by the use of external financing to support
the extensive expenditures for property plant and equipment as well as
investments in other companies. In spite of this development, income before
taxes (EBT) rose by 1.9% to € 101.9 million and net profit for the year
increased 3.3% to € 76.8 million.

Dividend
As a result of this stable development, the Annual General Meeting on 25
April 2007 will be asked to approve a dividend of € 2.20 per share for the
2006 Business Year. This represents a pay-out ratio of 60.2%. At the same
time the shareholders of Flughafen Wien AG were able to profit from a 23.0%
increase in the price of the share during 2006, which outperformed the ATX.

New areas of business increase the value of the company
Flughafen Wien AG owns a stake of 40% in Malta International Airport
through a consortium and also holds a further 10% of the shares directly.
In 2006 Kosice Airport was acquired by the TwoOne Consortium, in which
Flughafen Wien AG holds the majority of voting rights. The transfer of 66%
of the shares in Košice Airport to the TwoOne Consortium took place in
October 2006. The plans for Kosice Airport call for an increase in
point-to-point traffic over the coming years, which will be supported by
the facility’s favourable geographic location and a local market area that
covers parts of Slovakia, Hungary, Ukraine and Poland.

Flughafen Wien AG also completed the major preparations for the purchase of
an investment in Flughafen Friedrichshafen GmbH during 2006. This
transaction will involve the purchase of a 25.15% stake in the German
company, which will take place in connection with a capital increase. The
conclusion of this transaction is scheduled for the end of the first
quarter of 2007, subject to the approval of the cartel authorities.

Optimal tariff structure provides relief for airlines
The Flughafen Wien Group continued its efforts to improve the competitive
position of Vienna International Airport and provide support for the
airlines through an optimal tariff structure in 2006. The current tariff
formula was extended to 2009 and the landing tariff was reduced by 2.81% as
of 1 January 2006. The passenger tariff was increased by € 1.12, primarily
to finance the environmental protection measures that were defined in the
mediation contract. The incentives that have been in place for many years
were also continued in 2006 to strengthen the competitive ability of Vienna
International Airport. In addition to the outstanding quality of services,
a minimum connecting time of 25 to 30 minutes – which is among the fastest
among comparable airports in Europe – represented a key factor for growth
during the reporting year.

Expansion programme progresses rapidly
In addition to a wide range of daily operating challenges, activities
during the past year were directed to creating a firm basis for future
growth. In order to meet the steady upward trend in the number of
passengers and maintain high quality standards, Vienna International
Airport must expand the existing terminal facilities and also increase
shopping and gastronomy space by a significant amount. The central part of
this capacity expansion will be formed by the Skylink terminal, which is
scheduled to open in spring 2009. Capital expenditure not only focused on
projects to increase capacity, but also on the construction of turnkey
properties to strengthen the strategic base of the Non-Aviation Segment.
One example of such projects is the Office Park II, which will be completed
by July 2007.

In cooperation with the Austrian Federal Railway Corporation, work also
continued to expand the airport railway station and thereby improve
infrastructure connections. This same goal is being pursued with the City
Airport Train (CAT), which is operated by a joint venture between the
Austrian Federal Railway Corporation and Flughafen Wien AG. Roughly 10% of
all passengers now use the CAT, which provides a non-stop link in only 16
minutes between Vienna International Airport and the 'Wien –Mitte' railway
station with its direct check-in facilities.

Challenges successfully mastered
The Flughafen Wien Group also faced a number of very special challenges in
the sensitive area of security during 2006. The visits of numerous
high-ranking politicians during Austria’s term as the seat of the rotating
EU presidency and a stopover by the US president were handled smoothly.
Optimal coordination and the use of the new General Aviation Center
supported the completion of all necessary activities without any
interruption of regular operations. The new and stricter regulations for
the control of hand luggage in November 2006 were also implemented without
major disadvantages for passengers.

Outlook
For the 2007 Business Year, the Flughafen Wien Group expects an increase of
5% in the number of passengers, 2% in flight movements and 3% in maximum
take-off weight. The restructuring of the Austrian Airlines Group will lead
to the discontinuation of several long-term destinations in 2007, but the
flight plan will also be expanded to reflect new acquisitions. Delta Air
Lines, Korean Air, Air Transat, Sky Europe, KrasAir, Click Air and Air One
will add Vienna International Airport as a destination during the coming
year. In addition, the Austrian Airlines Group will introduce a scheduled
flight to Chicago and NIKI will start flights to Moscow.

The expansion programme will continue during 2007, whereby the Skylink
represents the leading project for the next years. Planned capital
expenditure will total € 250 million in 2007. Turnover is expected to show
further improvement parallel to the development of traffic, while earnings
will also be influenced by the high level of investment activity and
related increase in depreciation.

                       2006            2005                  Change
                    in € mill.       in € mill.               in %

Turnover
Group 463.9 410.3 +13.1
Airport 211.3 188.6 +12.0
Handling 139.6 132.2 +5.6
Non-Aviation 112.8 89.2 +26.4
Operating income 477.3 433.5 +10.1
Operating expenses 373.6 341.2 +9.5
EBITDA 169.6 149.7 +13.3
Income before interest and taxes (EBIT)
Group 103.7 92.3 +12.3
Airport 75.7 66.7 +13.4
Handling 12.8 15.5 -17.6
Non-Aviation 35.2 34.5 +2.2
Profit before taxes (EBT) 101.9 100.0 +1.9
Net profit for the period 76.8 74.3 +3.3
Net cash flows from
operating activities 141.6 158.0 -10.4

Passengers (in mill.) 16.9 15.9 +6.3
Transfer passengers
(in mill.) 5.7 5.4 +4.2
Flight movements 237,490 230,900 +2.9
Maximum take-off weight
(in mill. to) 6.8 6.5 +3.7
Cargo (in tonnes) 265,778 234,677
+13.3

Investor Relations
Robert Dusek
Tel.: +43-1-7007/23126

DGAP 22.03.2007

Language: English
Issuer: Flughafen Wien AG
Postfach 1
1300 Wien-Flughafen Österreich
Phone: +43-1-7007/23126
Fax: +43-1-7007/23058
E-mail: r.dusek@viennaairport.com
www: www.viennaairport.com
ISIN: AT0000911805
WKN: 884216
Indices: ATX
Listed: Amtlicher Markt in Wien; Freiverkehr in Berlin-Bremen,
Stuttgart, München; Open Market in Frankfurt; Foreign
Exchange(s) London

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