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Flughafen Wien AG

Quarterly Report May 24, 2018

744_10-q_2018-05-24_9c6a6780-7354-4fdf-8d3e-92f0bd6cf9d4.pdf

Quarterly Report

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1/2018 Flughafen Wien AG Quarterly Report

Key Data on the Flughafen Wien Group

Financial Indicators (in € million. excluding employees)

Q1/2018 Q1/2017 Change in %
Total revenue 163.9 160.6 2.1
Thereof Airport 76.7 75.0 2.2
Thereof Handling & Security services 40.0 39.0 2.6
Thereof Retail & Properties 29.6 29.4 0.7
Thereof Malta 13.9 13.4 3.8
Thereof Other Segments 3.7 3.8 -1.9
EBITDA 64.8 60.7 6.9
EBITDA margin (in %)1 39.6 37.8 n.a.
EBIT 33.3 26.0 28.1
EBIT margin (in %)2 20.3 16.2 n.a.
Net profit 21.6 15.9 35.3
Netprofit parent company 20.5 14.9 37.2
Cash flow from operating activities 52.9 66.5 -20.4
Capital expenditure3 71.3 35.6 99.9
Income taxes 7.7 5.6 37.5
Average number of employees4 4,626 4,511 2.6
31.3.2018 31.12.2017 Change in %
Equity 1,233.1 1,211.0 1.8
Equity ratio (in %) 57.7 58.7 n.a.
Net debt 193.2 227.0 -14.9
Total assets 2,137.1 2,063.0 3.6
Gearing (in %) 15.7 18.7 n.a.
Number of employees (end of period) 4,708 4,639 1.5

Industry Indicators

Passenger development of the Group Q1/2018 Q1/2017 Change in %
Vienna Airport (in mill.) 4.9 4.6 6.6
Malta Airport (in mill.) 1.2 1.0 19.4
Košice Airport (in mill.) 0.1 0.1 19.9
Vienna Airport and strat. Investments (VIE, MLA, KSC) 6.1 5.6 9.0
Traffic development Vienna Airport
Passengers (in mill.) 4.9 4.6 6.6
Thereof transfer passengers (in mill.) 1.1 1.1 6.6
Flight movements 48,672 47,864 1.7
MTOW (in mill. tonnes)5 1.9 1.9 2.5
Cargo (air cargo and trucking; in tonnes) 67,974 65,440 3.9
Seat load factor (in %)6 70.0 66.7 n.a.
 Stock Market Indicators
Ticker Symbols
Market capitalisation (as of 31.3.2018; Reuters VIEV.VI
in € mill.)
2,801.0
Bloomberg FLU:AV
Stock price: high (29.1.2018 in €) 36.30 Nasdaq FLU-AT
Stock price: low (22.3.2018 in €) 32.65 ISIN AT00000VIE62
Stock price as of 31.3.2018 (in €) 33.35 Spot market FLU
Stock price as of 31.12.2017 (in €) 33.65 ADR VIAAY

Definitions:

1) EBITDA margin (Earnings before Interest, Taxes, Depreciation and Amortisation) = EBITDA/ Revenue 2) EBIT margin (Earnings before Interest and Taxes) = EBIT / Revenue 3) Capital expenditure: intagible assets, property, plant and equipment and prepayments including corrections to invoices from previous years, excluding financial assets 4) Average number of employees: Weighted average number of employees including apprentices, excluding employees on official non-paying leave (maternity, military, etc.) and the Management Board and managing directors 5) MTOW: Maximum take-off weight for aircraft 6) Seat load factor: Number of passengers / available number of seats

Content

  • ______ Letter to Shareholders
  • ______ Financial Information

______ Condensed Consolidated Interim Financial Statements as of 31 March 2018

  • _ ____ Consolidated Income Statement
  • _____ Consolidated Statement of Comprehensive Income
  • _ ____ Consolidated Statement of Financial Position
  • _ ____ Consolidated Statement of Cash flow
  • _ ____ Consolidated Statement of Changes in Equity

Dear Shareholders,

Flughafen Wien AG has begun the new financial year with record passenger figures, and we have significantly improved all key performance figures as against the previous year. The Flughafen Wien Group reported an increase of 9% to 6.1 million passengers in the first quarter, with 6.6% more passengers (4.9 million) handled at Vienna Airport. This was thanks to continuing double-digit growth in Malta and the far wider range of flights operated by Austrian Airlines, Eurowings, easyJet and Vueling together with new carriers in Vienna. At the same time, the seat load factor, i.e. aircraft capacity utilisation, was up significantly by 3.2 percentage points at 70.0%. The strong traffic trend also led to growth in aircraft movements of 1.7% to around 49,000 take-offs and landings.

The good traffic figures are likewise reflected in the Group's results: Revenues climbed by 2.1% to € 163.9 million, while EBITDA rose by 6.9% to € 64.8 million. The net result was as much as 35.3% higher – partly on account of an extraordinary real estate income of € 3.0 million – at € 21.6 million and net debt fell below € 200 million for the first time in ten years. As usual, the details of traffic and financial performance can be found later in this report. The positive effect of passenger growth in the Airport Segment is offset by adjustments to incentives, which are intended to strengthen airline bases at the Vienna site, as a result of which this segment's revenues currently rose at a slower rate than passenger numbers. In subsequent periods the higher passenger volume will give way to higher airport revenues, which is also reflected in the improved finance guidance for 2018.

The excellent passenger performance and airlines' forecasts to date allow a marked improvement in our guidance. We are now assuming that passenger growth will be at least 8% (plus 1%) within the Group and at least 6% (plus 1%) at Vienna Airport. Accordingly, we are also raising our forecasts for our financial figures: We now anticipate revenues of greater than € 770 million (previously: € 760 million), EBITDA grater than € 350 million (previously: € 340 million) and a net result grater than € 148 million (previously: € 140 million). In addition to the positive current trend in passengers and earnings, we are also making good progress with the expansion and improvement of our infrastructure. In April, ground was broken for Office Park 4, which is being built to the highest standards of energy efficiency and will provide 26,000 square meters of state-of-the-art office space from the middle of 2020. At the same time, planning for the comprehensive improvement measures at Terminal 2 and Pier East are in full swing. The first phase of construction will begin this summer.

There is good news for the airport's most important infrastructure project as well: subject to conditions, the Federal Administrative Court has approved the construction of the third runway in its second finding. As anticipated, those opposed to the project have taken legal action before the Austrian Constitutional Court and the Federal Administrative Court. A final decision on this construction project, which is of key significance for the entire region and business location, is therefore still not foreseeable. We are emphatically adhering to our strategic focus. We want to strengthen Vienna Airport's position as the leading air traffic hub to destinations in Central and Eastern Europe, improve the airport's infrastructure, and make maximum use of the resulting opportunities for income and growth.

Finally, we would like to thank our shareholders and customers for their trust, as well as all of our employees for their exemplary dedication and high degree of professionalism.

Schwechat, May 2018 The Management Board

Günther Ofner Julian Jäger Member, CFO Member, COO

9.0% passenger growth for Flughafen Wien Group

The passenger volume of the Flughafen Wien Group (Vienna Airport, Malta Airport and Košice Airport) increased by 9.0% to 6.1 million from January to March 2018. In addition to the increase in local passengers of 9.9% to 5.0 million, the number of transfer passengers also rose by 6.6% year-on-year to 1.1 million. The number of movements in the Group rose by 3.8% in the first quarter to 58,887 take-offs and landings, and the cargo volume increased by 4.0% to 71,894 tonnes.

Vienna Airport1 : 6.6% passenger growth in the first quarter of 2018

Vienna Airport set a new passenger record with a total of 4,864,177 passengers from January to March 2018 (Q1/2017: 4,562,824). A key role in this good development was played especially by Austrian Airlines and Eurowings (including Germanwings), which greatly expanded their services due to the insolvency of NIKI and airberlin and also achieved a higher seat load factor. easyJet reported the third-largest absolute passenger increase, and contributed to the strong overall passenger growth.

1) Passenger data adjusted

The numbers in detail: 3,697,938 local passengers were handled in the first quarter of 2018 (up 6.8%). In terms of transfers, Vienna Airport consolidated its hub function and generated significant growth of 6.6% to 1,141,046 passengers.

The number of passengers departing to Western Europe increased by 5.6% to 1,677,014 (Q1/2017: 1,588,707), mainly as a result of more frequent services by Austrian Airlines and Eurowings in addition to easyJet's addition of the high frequency Berlin Tegel destination. Eastern European destinations continued their positive trend with growth of 10.5% to 383,586 departing passengers (Q1/2017: 347,089). This encouraging development is thanks to the higher seat load factor at Austrian Airlines, the addition of UTair to Moscow and increased capacity at LOT and Aeroflot.

In the Far East, the market entry of Thai Airways sparked a 30.7% increase in departing passengers to 118,805 in Q4/2017, and the number of passengers to Africa rose by as much as 48.5% to 60,862. The growth relates to the recovery in the booking situation for holiday destinations in Egypt and the addition of Mahé by Austrian Airlines (Q4/2017). The number of passengers departing to the Middle East remained flat at 137,519. While Qatar Airways increased the frequency of its flights to Doha, one route to Abu Dhabi was cancelled following the insolvency of NIKI and there was an embargo on flights to Erbil. The number of passengers departing to North America declined slightly by 0.2% to 47,945 as a result of less frequent services.

In total, the average seat load factor (capacity utilisation) on scheduled and charter flights climbed significantly from 66.7% to 70.0% from January to March 2018.

Thanks to additional capacity and good utilisation, the biggest customer Austrian Airlines reported strong growth of 14.3% to 2,209,600 passengers. This increased its share of total passenger volume at Vienna Airport to 45.4% (Q1/2017: 42.4%).

Vienna Airport's second biggest home carrier, Eurowings (incl. Germanwings), increased its passenger volume to 519,540 in the first three months of 2018 (up 44.6%). Its share of total passenger volume was therefore 10.7% (Q1/2017: 7.9%).

easyJet reported a rise in passenger numbers of 41.6% to 235,799 passengers in the first quarter of 2018 (Q1/2017: 166,498), thanks in part to the addition of Berlin Tegel as a destination. Its share of total passenger volume climbed to 4.8% (Q1/2017: 3.6%).

The number of flight movements rose by 1.7% in the first quarter of 2018 to 48,672 takeoffs and landings (Q1/2017: 47,864). The maximum take-off weight (MTOW) increased by 2.5% to 1,938,567 tonnes on account of the increased use of larger aircraft (Q1/2017: 1,891,542 tonnes). The cargo volume was up by 3.9% at 67,974 tonnes from January to March.

Positive development in Malta and Košice

The foreign strategic investments Malta and Košice enjoyed impressive growth in the first quarter of 2018. The rise in passenger numbers was very pronounced in Malta at 1,172,213 (19.4%), while Košice Airport experienced even higher growth of 19.9% to 91,692 passengers.

Earnings in first quarter of 2018

Revenue growth of 2.1% to € 163.9 million

The Flughafen Wien Group (FWAG) generated revenues of € 163.9 million in the first quarter of 2018 (Q1/2017: € 160.6 million), an increase of 2.1%. This was caused by the following effects: Revenues from apron handling were slightly lower than in the same period of the previous year, decreasing from € 26.0 million in Q1/2017 to € 25.7 million in Q1/2018. The decline due to price adjustments was offset by higher revenues from de-icing. Revenues from cargo handling increased from € 7.2 million to € 7.8 million in line with the cargo volume handled. Revenues from shopping, food and beverage services likewise rose by € 0.3 million to € 10.0 million in the first quarter of 2018 (Q1/2017: € 9.7 million). The positive effect of passenger growth in the Airport Segment is offset by adjustments to incentives, which are intended to strengthen airline bases at the Vienna site, as a result of which this segment's revenues currently rose (by € 1.7 million or 2.2%) at a slower rate than passenger numbers. It should also be noted that expenses previously reported under marketing and market communication for the Airport Segment have now been reclassified to the incentive model, hence in this segment the market communication item under other operating expenses was down € 2.9 million on the previous year's figure. In subsequent periods the higher passenger volume will give way to higher airport revenues, which is also reflected in the improved finance guidance for 2018.

Other miscellaneous income climbed by € 3.3 million as against Q1/2017 to € 4.1 million (Q1/2017: € 0.7 million). This resulted from the non-recurring effects of a property sale to DHL (€ 3.0 million) and the first-time consolidation of GetService Dienstleistungsgesellschaft m.b.H (GETS) and Vienna Airport Health Center GmbH (VHC). Own work capitalised for investment projects in the Group increased by € 0.3 million to € 1.8 million.

Expenses for consumables and services used increased by € 0.7 million to € 11.3 million in the first three months of 2018, essentially as a result of the higher consumption of de-icing material and district heating during the cold winter.

Personnel expenses rose by € 2.6 million or 3.9% as against the previous year from € 67.6 million to € 70.2 million. This is due essentially to pay increases under collective bargaining agreements, a higher average headcount (e.g. caused in part by the first-time consolidation of GETS) and allocations to provisions. Wages were up by € 0.6 million year-onyear at € 28.1 million, while salaries rose by € 2.6 million to € 24.8 million. By contrast, severance expenses were reduced by € 0.7 million to € 1.9 million. The average headcount (FTE, full-time equivalents) at the Flughafen Wien Group rose (by 2.6%) from 4,511 to 4,626 employees or 5,896 personnel contracts.

Other operating expenses decreased by € 0.6 million or 2.5% as against 2017 to € 23.8 million (Q1/2017: € 24.4 million). The main changes were in legal, auditing and consulting costs (down € 0.8 million) and marketing expenses (down € 2.5 million). Maintenance expenses were up by € 1.4 million.

The results of investments in companies recorded at equity are stable year-on-year at € 0.3 million (Q1/2017: € 0.4 million).

EBITDA up 6.9% at € 64.8 million

As a result of the positive development in revenues, the additional other income from the sale of land to DHL and the only moderately higher costs of materials and personnel ex-

penses, together with lower other operating expenses, EBITDA climbed by € 4.2 million or 6.9% year-on-year to € 64.8 million. The EBITDA margin rose from 37.8% to 39.5%.

EBIT improves 28.1% to € 33.3 million

Depreciation and amortisation (including impairment) amounted to € 31.5 million in the first three months of 2018 (Q1/2017: € 34.6 million). The decline essentially relates to signage, security and monitoring facilities that were depreciated in the previous period.

The better EBITDA and the € 3.1 million decline in depreciation and amortisation (including impairment) allowed EBIT to rise by 28.1% to € 33.3 million (Q1/2017: € 26.0 million). The EBIT margin therefore also improved from 16.2% to 20.3%.

Financial results improve to minus € 4.1 million (Q1/2017: minus € 4.5 million)

Lifted by net interest income following the repayment of loans, financial results improved from minus € 4.5 million in the same period of the previous year to minus € 4.1 million.

Net profit for the period climbs € 5.6 million or 35.3% to € 21.6 million

EBT amounted to € 29.3 million in the first three months (up 35.9% year-on-year at € 21.5 million). After deducting income taxes of € 7.7 million (Q1/2017: € 5.6 million), the net profit for the period amounted to € 21.6 million (Q1/2017: € 15.9 million), an increase of 35.3%.

The net profit attributable to shareholders of the parent company rose by € 5.6 million to € 20.5 million (up 37.2%). The net profit for the first quarter attributable to non-controlling interests was € 1.1 million (Q1/2017: € 1.0 million).

Information on operating segment s

Segment revenues and segment results in 2018

Q1/2018 in T€ Airport Handling &
Security
Services
Retail &
Proper
ties
Malta Other
Segments
Group
External segment
revenues
76,694.3 39,974.2 29,648.0 13,936.9 3,689.4 163,942.8
Internal segment
revenues
8,437.7 17,397.3 3,599.3 0.0 26,718.3
Segment
revenues
85,132.0 57,371.5 33,247.4 13,936.9 30,407.7
Segment EBITDA 30,329.0 4,107.4 20,320.6 5,781.4 4,294.7 64,833.1
Segment EBITDA
margin (in %)
35.6 7.2 61.1 41.5 14.1
Segment EBIT 9,908.2 2,605.2 15,896.0 3,500.4 1,435.6 33,345.4
Segment EBIT
margin (in %)
11.6 4.5 47.8 25.1 4.7

Segment revenues and segment results in 2017

Q1/2017 in T€ Airport Handling &
Security
Services
Retail &
Proper
ties
Malta Other
Segments
Group
External segment
revenues
75,029.5 38,971.3 29,441.7 13,428.8 3,759.9 160,631.3
Internal segment
revenues
8,920.0 16,540.4 3,217.6 0.0 27,226.1
Segment
revenues
83,949.6 55,511.7 32,659.3 13,428.8 30,986.0
Segment EBITDA 27,338.7 3,846.1 18,025.2 5,568.4 5,874.1 60,652.6
Segment EBITDA
margin (in %)
32.6 6.9 55.2 41.5 19.0
Segment EBIT 4,706.0 2,478.7 13,530.5 3,468.7 1,855.6 26,039.5
Segment EBIT

margin (in %) 5.6 4.5 41.4 25.8 6.0

Airport Segment Revenues of € 76.7 million in Airport Segment

External revenues in the Airport Segment rose from € 1.7 million to € 76.7 million in Q1/2018. The positive effect of passenger growth is offset by adjustments to incentives, which are intended to strengthen airline bases at the Vienna site, as a result of which this segment's revenues currently did not rise to the same extent as passenger numbers. It should also be noted that expenses previously recognised under marketing expenses were reclassified to the incentive model, hence this item was down by € 2.9 million for the segment. The security fee increased by € 1.4 million year-on-year to € 20.4 million. This was due firstly to positive passenger growth and secondly to higher charges. Higher incentives resulted in a decline in passenger fees (including PRM) of € 0.6 million to € 30.0 million. In line with growth in traffic, infrastructure fees rose to € 7.1 million after € 6.8 million in Q1/2017. There was a positive development in lounge revenues, which were up by € 0.4 million at € 2.3 million.

Internal revenues declined by € 0.5 million year-on-year to € 8.4 million due to lower rental revenues. Other income (including own work capitalised) amounted to € 1.0 million (Q1/2017: € 1.1 million).

The cost of external consumables rose by € 0.2 million year-on-year to € 1.1 million. The increase is due essentially to higher de-icing expenses. Personnel expenses climbed by € 0.7 million to € 11.5 million as a result of the higher average headcount (539 as against 503). Other operating expenses fell from € 2.5 million to € 7.2 million. While costs for consulting and expert opinions, marketing and market communication were down, costs for maintenance were on the rise. Internal operating costs decreased slightly by 0.8% or € 0.3 million to € 36.1 million in the first quarter of the year.

EBITDA up € 3.0 million at € 30.3 million

EBITDA in the Airport Segment improved by € 3.0 million or 11.0% to € 30.3 million in the first quarter of 2018 (Q1/2017: € 27.3 million). Taking depreciation and amortisation (including impairment) of € 20.4 million into account (Q1/2017: € 22.6 million), segment EBIT amounted to € 9.9 million after € 4.7 million in the same period of the previous year (up 110.5%). The EBITDA margin rose from 32.6% to 35.6%, the EBIT margin from 5.6% to 11.6%.

Handling & Security Services Segment

Revenue growth in Handling & Security Services Segment of 2.6% to € 40.0 million External revenues in the Handling & Security Services Segment rose by € 1.0 million to € 40.0 million in the first quarter of 2018 (Q1/2017: € 39.0 million). Revenues from apron handling fell slightly from € 26.0 million in the same period of the previous year to € 25.7 million. The decline due to price adjustments is offset by higher revenues from de-icing. Revenues from cargo handling increased from € 7.2 million to € 7.8 million in line with the cargo volume handled. External revenues from security services remained level with 2017 at € 0.9 million.

The General Aviation area, including the operation of the VIP & Business Centre, generated an increase in revenues of € 0.7 million in the first three months of 2018. The firsttime consolidation of GETS contributed € 0.2 million to segment revenues. Internal revenues rose by € 0.9 million to € 17.4 million, while other income was up by € 0.4 million year-on-year at € 0.5 million.

The cost of consumables was € 0.3 million higher at € 2.8 million owing to elevated consumption of de-icing materials compared to the previous year. Personnel expenses rose moderately by € 0.4 million to € 40.6 million as a result of the increased average headcount (an increase of 16 to 2,941 employees). Other operating expenses were at € 1.5 million, € 0.4 million higher compared to the previous year's level. The rise essentially results from higher expenses for rent, maintenance and third-party staff from related Group companies (intragroup outsourcing).

EBITDA up 6.8% at € 4.1 million

EBITDA in the Handling & Security Services Segment rose by 6.8% from € 3.8 million to € 4.1 million in the first quarter of 2018 as a result of faster growth in revenue than expenses. Adjusted for depreciation and amortisation of € 1.5 million (Q1/2017: € 1.4 million), EBIT amounted to € 2.6 million (Q1/2017: € 2.5 million; up 5.1%). The EBITDA margin was higher than the previous year's 6.9% at 7.2%, while the EBIT margin was 4.5% as in Q1/2017.

Retail & Properties Segment

Revenues of € 29.6 million in the Retail & Properties Segment

External revenues in the Retail & Properties Segment rose by € 0.2 million to € 29.6 million year-on-year (Q1/2017: € 29.4 million). This development was driven by higher revenues from shopping and food services, which increased by € 0.3 million to € 10.0 million. Parking revenues were on par with the previous year's level at € 11.0 million. Rental revenues were also largely unchanged at € 8.6 million (Q1/2017: € 8.7 million). Internal revenues increased from € 3.2 million to € 3.6 million, while other external income was up by € 3.1 million year-on-year at € 3.7 million as a result of the property sale to DHL.

The cost of materials was roughly stable year-on-year at € 0.2 million. With headcount unchanged (99 employees), personnel expenses were up at € 2.5 million (previous year: € 2.3 million) as a result of pay rises under collective bargaining agreements. Other operating expenses increased by € 3.3 million to € 3.9 million as a result of higher maintenance and marketing expenses. Internal operating expenses climbed by € 0.5 million to € 10.0 million, mainly in the area of internal rentals.

EBITDA up € 2.3 million at € 20.3 million

EBITDA in the Retail & Properties Segment rose by 12.7% from € 18.0 million to € 20.3 million in the first quarter in spite of slightly higher expenses. This was thanks firstly to revenue growth and secondly to higher other income from the properly sale. Depreciation and amortisation fell to € 4.4 million (Q1/2017: € 4.5 million). The EBITDA margin was 61.1% (Q1/2017: 55.2%) and the EBIT margin was 47.8% (Q1/2017: 41.4%). EBIT rose by € 2.4 million or 17.5% to € 15.9 million (Q1/2017: € 13.5 million).

Malta Segment

Revenues up € 0.5 million at € 13.9 million in Malta Segment

The Malta Segment's external revenues increased by € 0.5 million to € 13.9 million in the first three months, falling short of passenger growth on account of a growth-based incentive model that promotes traffic during the winter months.

The cost of materials was level with the previous year at € 0.7 million, while personnel expenses increased by € 0.3 million to € 2.2 million owing to the slightly higher headcount. Other operating expenses rose moderately by € 0.2 million to € 5.3 million, and included costs for security staff, cleaning, staff for PRM services, other third-party personnel services, IT services, marketing expenses, lease costs and maintenance costs.

EBITDA up € 0.2 million at € 5.8 million

For the first quarter of 2018, the Malta Segment reported EBITDA of € 5.8 million (Q1/2017: € 5.6 million) and an EBITDA margin, as in the previous year, of 41.5%. Taking into account depreciation and amortisation of € 2.3 million, EBIT was unchanged at € 3.5 million (Q1/2017: € 3.5 million) with an EBIT margin of 25.1% (Q1/2017: 25.8%). The slight decline in the EBIT margin is due to the rise in depreciation and amortisation as a result of the increased terminal capacity that became operational in the previous year.

Other Segments

Revenues of € 3.7 million in Other Segments

External revenues in Other Segments amounted to € 3.7 million (Q1/2017: € 3.8 million) in the first three months of 2018. This decrease is essentially due to lower revenues from facility management and building maintenance. Internal revenues likewise declined by € 0.5 million year-on-year to € 26.7 million (Q1/2017: € 27.2 million). This reduction was caused by lower offsetting of general operating costs in other areas. Other income amounted to € 0.6 million (Q1/2017: € 0.4 million).

The cost of consumables and purchased services rose by € 0.1 million year-on-year to € 6.5 million. Personnel expenses increased by € 1.1 million to € 13.5 million with an average headcount of 730 (Q1/2017: 684). Other operating expenses rose from € 5.2 million to € 5.9 million on account of higher maintenance expenses.

The results of investments in companies recorded at equity reflect the operational performance of these companies (including in particular City Air Terminal Betriebsgesellschaft m.b.H and "GetService"-Flughafen-Sicherheits- und Servicedienst GmbH). Positive income of € 0.3 million was generated in the first three months of 2018 (Q1/2017: € 0.3 million).

EBITDA of € 4.3 million

Overall, Other Segments reported EBITDA of € 4.3 million on account of lower income coupled with a rise in expenses (Q1/2017: € 5.9 million). Adjusted for lower depreciation and amortisation in the first quarter of 2018 of € 2.9 million (Q1/2017: € 4.0 million), segment EBIT amounted to € 1.4 million (Q1/2017: € 1.9 million). The EBITDA margin was 14.1% (Q1/2017: 19.0%) and the EBIT margin was 4.7% (Q1/2017: 6.0%).

Financial, asset and capital structure Net debt falls to € 193.2 million (31 December 2017: € 227.0 million)

Net debt similarly declined to € 193.2 million as at 31 March 2018, down € 33.8 million as against the start of the year. While the equity ratio fell by 1.0 percentage point to 57.7%, gearing has now improved from 18.7% (31 December 2017) to 15.7%.

Cash flow from operating activities of € 52.9 million (Q1/2017: € 66.5 million)

Net cash flow from operating activities was € 52.9 million in Q1/2018 after € 66.5 million in the previous year. Operating earnings (EBT plus depreciation, amortisation, impairment reversals and impairment) rose by € 4.6 million to € 60.7 million (Q1/2017: € 56.1 million). The improvement in operating earnings is offset by a higher level of receivables compared to the previous period, as the incentives were recognised in cash at a later date (the next quarter) in the previous year. In addition, customers made higher advance payments for services in the previous period. Equity and liabilities (including provisions) grew by € 0.7 million (Q1/2017: up by € 3.5 million). Payments for income taxes totalled € 7.8 million (Q1/2017: € 8.1 million).

Net cash flow from investing activities amounted to minus € 39.9 million after minus € 25.8 million in the previous year. While € 20.0 million was paid for investment projects in the first three months of 2018, payments of € 35.6 million were made in the previous year. Furthermore, € 20.0 million (previous year: € 10.0 million) was invested in current and non-current term deposits in the first quarter of 2018. This is offset by proceeds from past term deposits of € 20.0 million in the first quarter of 2017.

Free cash flow (net cash flow from operating activities plus net cash flow from investing activities) therefore amounted to € 13.0 million (Q1/2017: € 40.7 million).

The net cash flow from financing activities of minus € 2.8 million (Q1/2017: minus € 32.5 million) relates to repayments of financial liabilities (essentially cash advances) of € 18.2 million and proceeds from the borrowing of cash advances for short-term financing of € 15.4 million.

Cash and cash equivalents amounted to € 58.1 million as at 31 March 2018 after € 47.9 million as at 31 December 2017.

Assets

Non-current assets have risen by € 23.9 million since the start of the year to € 1,894.8 million. Additions of € 71.3 million are offset by write-downs of € 2.3 million and depreciation and amortisation of € 31.5 million. € 56.8 million of additions are concerning the payment obligation in connection with the enviromental fund related to the project Third Runway.

Current assets increased by € 50.2 million as against 31 December 2017 (€ 192.1 million) to € 242.3 million, mainly as a result of higher receivables and other assets (additional investment in term deposits of € 20.0 million and other receivables from the sale of land to DHL of € 5.3 million) in addition to a higher level of cash and cash equivalents as at 31 March 2018.

Equity and liabilities

Equity has risen by 1.8% to € 1,233.1 million since 31 December 2017 (€ 1,211.0 million). The equity ratio dipped to 57.7% after 58.7% as at the end of 2017.

Non-current liabilities fell by € 12.9 million to € 588.5 million as a result of the reclassification of financial liabilities to current liabilities and the reversal of deferred tax liabilities.

By contrast, current liabilities increased by € 64.8 million to € 315.6 million. This is essentially due to higher staff provisions, the reclassification of financial liabilities and the payment obligation regarding the enviromental fund related to the project Third Runway. By contrast, trade payables were down by € 13.2 million at € 32.8 million (31 December 2017: € 46.0 million).

Capital expenditure

A total amount of € 71.3 million (Q1/2017: € 35.6 million) was invested in intangible assets, property, plant and equipment and investment property in the first three months of 2018. The disposals at the Vienna site related to property sales of € 2.3 million and technical equipment. The biggest investment projects are the additions to the project Third Runway of € 56.8 million, the high-performance snow cutter blowers at € 1.8 million, Office Park 4 at € 0.7 million and the terminal development project at € 1.9 million. € 1.3 million was invested in terminal alterations at Malta Airport.

Notes on current guidance for 2018:

As a result of the good traffic results to date, FWAG anticipates a rise in passenger numbers for 2018 as a whole of more than 8% in the Flughafen Wien Group and an increase of more than 6% at Vienna Airport itself. Accordingly, the FWAG Group is forecasting EBIT-DA of more than € 350 million and a net profit for the period (before non-controlling interests) in excess of € 148 million. Revenues are expected to amount to more than € 770 million. The company is standing by its guidance for capital expenditure of € 175 million and net debt of less than € 250 million.

Vienna Airport Group: Passenger increase of 4.2% in April 2018

Vienna Airport and its investments in Malta airport and Košice airport together handled 2.8 million passengers in April 2018, comprising an increase of 4.2% from April 2017. Accumulated passenger volume in the period Jannuary to April 2018 rose by 7.5% to 8.9 million passengers.

Vienna Airport in April 2018

The number of passengers handled at the Vienna Airport site in April 2018 increased by 2.2% to 2,167,764 passengers compared to April 2017. The numbers of local passengers was up 1.5% and transfer passengers rose by 3.7%. In April 2018 the flight movements increased by 5.0% year-on-year. The cargo volume rose by 4.4% compared to April 2017. Accumulated passenger volume at the Vienna Airport site in the period Jannuary to April 2018 rose by 5.2% to 7.0 million passengers.

Notes:

The quarterly figures on the asset, financial and earnings position have been prepared in accordance with the International Reporting Standards (IFRS) as adopted by the European Union. The financial information does not include full interim financial statements in accordance with IAS 34. Further information on accounting policies can be found in the 2017 consolidated financial statements, which are published on the website of Flughafen Wien AG (www.viennaairport.com). The financial information was not reviewed by an auditor.

C o n d e n s e d C o n s o l i d a t e d I n t e r i m F i n a n c i a l S t a t e m e n t s as of 31 March 2018

Consolidated Income Statement

from 1 January to 31 March 2018

Amounts in T€ Q1/2018 Q1/2017 C. in %
Revenues 163,942.8 160,631.3 2.1
Other operating income 5,905.4 2,300.6 156.7
Operating income 169,848.2 162,931.9 4.2
Expenses for consumables and purchased services -11,330.8 -10,637.3 6.5
Personnel expenses -70,216.1 -67,590.4 3.9
Other operating expenses -23,784.7 -24,401.4 -2.5
Pro rata results of companies recorded at equity 316.5 349.7 -9.5
Earnings before interest, taxes, depreciation and
amortisation (EBITDA)
64,833.1 60,652.6 6.9
Depreciation and amortisation -31,487.7 -34,171.8 -7.9
Impairment 0.0 -441.4 -100.0
Earnings before interest and taxes (EBIT) 33,345.4 26,039.5 28.1
Interest income 104.0 71.0 46.6
Interest expense -4,188.8 -4,580.2 -8.5
Financial results -4,084.8 -4,509.2 9.4
Earnings before taxes (EBT) 29,260.6 21,530.2 35.9
Income taxes -7,676.3 -5,582.3 37.5
Net profit for the period 21,584.3 15,948.0 35.3
Thereof attributable to:
Equity holders of the parent 20,481.7 14,929.2 37.2
Non-controlling interests 1,102.6 1,018.7 8.2
Number of shares outstanding (weighted average) 84,000,000 84,000,000 0.0
Earnings per share (in €, basic = diluted) 0.24 0.18 37.2

Consolidated Statement of Comprehensive Income

from 1 January to 31 March 2018

Amounts in T€ Q1/2018 Q1/2017 C. in %
Net profit for the period 21,584.3 15,948.0 35.3

Other comprehensive income from items that will not be reclassified to the consolidated income statement in future periods

Revaluations from defined benefit plans -116.8 -214.4 -45.5
Change in fair value of equity investments at FVOCI 829.0 0.0 n.a.
Thereof deferred taxes -178.0 53.6 n.a.

Other comprehensive income from items that may be reclassified to the consolidated income statement in future periods

Change in fair value of available-for-sale securities 0.0 197.0 -100.0
Thereof changes not recognised through
profit or loss
0.0 197.0 -100.0
Thereof deferred taxes 0.0 -48.4 -100.0
Other comprehensive income 534.1 -12.3 35.3
Total comprehensive income 22,118.4 15,935.7 38.8
Thereof attributable to:
Equity holders of the parent 21,017.8 14,917.0 40.9
Non-controlling interests 1,100.6 1,018.7 8.0

Consolidated Statement of Financial Positions

As at 31 March 2018

Amounts in T€ 31.3.2018 31.12.2017 C. in %
ASSETS
Non-current assets
Intangible assets 155,562.3 156,606.3 -0.7
Property, plant and equipment 1,482,195.6 1,441,371.9 2.8
Investment property 131,855.2 132,819.5 -0.7
Investments in companies recorded at equity 41,303.6 40,987.2 0.8
Other assets 83,900.3 99,129.1 -15.4
1,894,817.1 1,870,914.0 1.3
Current assets
Inventories 5,769.4 5,979.5 -3.5
Securities 23,007.7 22,178.7 3.7
Assets available for sale 1,687.8 2,961.3 -43.0
Receivables and other assets 153,682.1 113,038.2 36.0
Cash and cash equivalents 58,141.4 47,918.7 21.3
242,288.3 192,076.4 26.1
Total assets 2,137,105.4 2,062,990.3 3.6
EQUITY & LIABILITIES
Equity
Share capital 152,670.0 152,670.0 0.0
Capital reserves 117,657.3 117,657.3 0.0
Other reserves 2,386.9 1,941.3 23.0
Retained earnings 870,753.6 850,181.4 2.4
Attributable to equity holders of the parent 1,143,467.8 1,122,450.0 1.9
Non-controlling interests 89,606.8 88,506.2 1.2
1,233,074.6 1,210,956.2 1.8
Non-current liabilities
Provisions 153,952.8 153,103.0 0.6
Financial liabilities 340,000.0 356,147.6 -4.5
Other liabilities 43,630.7 39,615.0 10.1
Deferred tax liabilities 50,864.4 52,432.3 -3.0
588,447.8 601,298.0 -2.1
Current liabilities
Tax provisions 11,891.0 10,318.3 15.2
Other provisions 115,381.6 107,833.5 7.0
Financial liabilities 60,316.0 46,962.7 28.4
Trade payables 32,755.7 46,043.9 -28.9
Other liabilities 95,238.5 39,577.7 140.6
315,582.9 250,736.1 25.9
Total equity and liabilities 2,137,105.4 2,062,990.3 3.6

21

Consolidated cash flow statement

from 1 January to 31 March 2018

in T€ Q1/2018 Q1/2017 V. in %
Earnings before taxes (EBT) 29,260.6 21,530.2 35.9
+ Depreciation and amortisation of non-current assets 31,487.7 34,171.8 -7.9
+ Impairment 0.0 441.4 -100.0
- Pro rata results of companies recorded at equity -316.5 -349.7 -9.5
+ Losses / - gains on the disposal of non-current assets -3,056.4 -149.6 n.a.
- Reversal of investment subsidies from public funds -52.2 -56.0 -6.8
+ Interest and dividend result 4,084.8 4,509.2 -9.4
+ Interest received 46.9 196.2 -76.1
- Interest paid -29.8 -44.7 -33.3
- Increase / + decrease in inventories 210.1 175.5 19.7
- Increase / + decrease in receivables -164.6 10,623.5 n.a.
+ Increase / - decrease in provisions 8,281.0 15,179.8 -45.4
+ Increase / - decrease in liabilities -8,980.4 -11,682.4 -23.1
Net cash flows from ordinary operating activities 60,771.4 74,545.3 -18.5
- Income taxes paid -7,840.6 -8,055.3 -2.7
Net cash flow from operating activities 52,930.8 66,490.0 -20.4
+ Payments received on the disposal of non-current
assets (not including financial assets)
87.4 175.2 -50.1
- Payments made for the purchase of non-current assets
(not including financial assets)
-19,997.0 -35,590.9 -43.8
- Payments made for the purchase of financial assets -4.2 -350.0 -98.8
+ Payments received of current and
non-current investments
0.0 20,000.0 -100.0
- Payments made for current and
non-current investments
-20,000.0 -10,000.0 100.0
Net cash flow from investing activities -39,913.8 -25,765.7 54.9
+ Payments received from the borrowing of
financial liabilities
15,405.6 1.2 n.a.
- Payments made for the repayment of financial
liabilities
-18,200.0 -32,500.0 -44.0
Net cash flow from financing activities -2,794.4 -32,498.8 -91.4
Change in cash and cash equivalents 10,222.7 8,225.5 24.3
+ Cash and cash equivalents at the beginning of the
period
47,918.7 43,438.5 10.3
Cash and cash equivalents at the end of the period 58,141.4 51,664.1 12.5

Consolidated Statement of Changes in Equity

from 1 January to 31 March 2018

Attributable to equity holders of the parent
Amounts in T€ Share
capital
Capital
reserves
Total
other
reserves
Retained
earnings
Total Non-con
trolling
interests
Total
As at 1.1.2017 152,670.0 117,657.3 2,847.9 787,576.0 1,060,751.1 83,224.1 1,143,975.2
Market valuation
of securities
148.6 148.6 0.0 148.6
Revaluation from
defined benefit
plans
-160.8 -160.8 0.0 -160.8
Other comprehen
sive income
0.0 0.0 -12.3 0.0 -12.3 0.0 -12.3
Net profit for the
period
14,929.2 14,929.2 1,018.7 15,948.0
Total comprehen
sive income
0.0 0.0 -12.3 14,929.2 14,917.0 1,018.7 15,935.7
Reversal of
revaluation surplus
-90.6 90.6 0.0 0.0 0.0
As at 31.3.2017 152,670.0 117,657.3 2,745.0 802,595.8 1,075,668.1 84,242.9 1,159,911.0
As at 1.1.2018 152,670.0 117,657.3 1,941.3 850,181.4 1,122,450.0 88,506.2 1,210,956.2
Market valuation
of equity
investments
623.8 623.8 -2.0 621.7
Revaluation from
defined benefit
plans
-87.6 -87.6 0.0 -87.6
Other comprehen
sive income
0.0 0.0 536.2 0.0 536.2 -2.0 534.1
Net profit for the
period
20,481.7 20,481.7 1,102.6 21,584.3
Total comprehen
sive income
0.0 0.0 536.2 20,481.7 21,017.8 1,100.6 22,118.4
Reversal of
revaluation surplus
-90.6 90.6 0.0 0.0 0.0
As at 31.3.2018 152,670.0 117,657.3 2,386.9 870,753.6 1,143,467.8 89,606.8 1,233,074.6

Imprint

Publisher Flughafen Wien Aktiengesellschaft P.O. Box 1

1300 Wien-Flughafen Austria

Telephone: +43/1/7007-0 Telefax: +43/1/7007-23001

www.viennaairport.com

Data Registry Nr.: 008613 Corporate Register Nr.: FN 42984 m Court of Registry: Provincial Court Korneuburg

Investor Relations

Judit Helenyi Telephone: +43/1/7007-23126 E-Mail: [email protected] Mario Santi Telephone: +43/1/7007-22826 E-Mail: [email protected]

Corporate Communications

Stephan Klasmann Telephone: +43/1/7007-22300 E-Mail: [email protected]

Press office

Peter Kleemann, MAS Telephone: +43/1/7007-23000 E-Mail: [email protected] The Flughafen Wien Group provides the following information in the Internet:

Flughafen Wien AG website: www.viennaairport.com Investor Relations: www.viennaairport.com/en/company/ investor_relations Noise protection programme at Vienna International Airport: www.laermschutzprogramm.at The environment and aviation: www.vie-umwelt.at Facts & figures on the third runway:

www.viennaairport.com/en/company/ flughafen_wien_ag/third_runway_project Dialogue forum at Vienna International Airport:

www.dialogforum.at Mediation process (archive): www.viemediation.at

This Annual Report was prepared by VGN – Content Marketing / Corporate Publishing (Management: Sabine Fanfule,

Erich Schönberg)

on behalf of Flughafen Wien AG.

Concept and Graphic Design: Dieter Dalinger, Gabriele Rosenzopf (Creative Director) Layout, Table Layout and Coordination: René Gatti

Disclaimer: The Quarterly Report contains assumptions and forecasts, which are based on information available up to the copy deadline in May 2018. If the premises for these forecasts do not occur or risks indicated in the risk report arise, actual results may vary from these estimates. Although the greatest caution was exercised in preparing data, all information related to the future is provided without guarantee. The Quarterly Report 1/2018 of Flughafen Wien AG is also available on our homepage www.viennaairport.com/ en/company/investor_relations under the menu point "Publications and reports".

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