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Fraport AG

Earnings Release May 8, 2019

163_10-q_2019-05-08_c6c1b4e7-e99e-448b-b429-a7e89f2f003c.pdf

Earnings Release

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May 8, 2019

Overview by the Executive Board

In the first three months of 2019, the airports of the Fraport Group recorded solid passenger development despite the later Easter holidays compared to the same reporting period in the previous year. At approximately 14.8 million, passenger numbers at Frankfurt Airport grew by 2.5%. The Group airports also posted positive growth rates across the board. Only Bulgaria showed declining passenger numbers due to the later Easter holidays.

In the first three months of 2019, Group revenue increased by €122.1 million to €803.8 million (+17.9%). Adjusted for the revenue in connection with capacitive capital expenditure based on the application of IFRIC 12, revenue increased by 5.3% to €678.5 million (+€34.3 million). Drivers of revenue development in Frankfurt were increased revenue from ground handling services and infrastructure charges due to higher traffic volume as well as increased revenue from security services in Frankfurt and at the Cologne/Bonn and Berlin sites. The discontinuation of revenue from the Group company Energy Air due to the disposal of shares on January 1, 2019 had a counteracting effect on Group revenue. Beyond the Frankfurt site, the Group companies Lima, which benefited from passenger growth as well as currency effects, and Fraport USA, influenced essentially by the initial recognition of the concessions in New York (since April 2018) and Nashville (since February 2019), primarily contributed to the adjusted revenue growth. The disposal of shares in the Group company Energy Air increased other operating income by €12.1 million.

Higher operating expenses resulted primarily from increased expenses due to higher traffic volume in the Aviation and Ground Handling segments. Internationally, primarily the Group company Lima increased Group operating expenses due to currency effects as well as higher concession fees based on traffic volume.

Group EBITDA increased by €25.9 million, coming to €200.6 million (+14.8%), of which €12.3 million was contributed by the International Activities & Services segment. The financial result in the amount of –€49.6 million (Q1 2018: –€56.1 million), which was positively impacted by the improved interest result, led to a Group result that was significantly above the previous year's level at €28.0 million (+42.9%).

Despite a higher operating cash flow, the free cash flow decreased significantly as expected from –€66.9 million to –€245.9 million in the first three months of 2019 due to higher capital expenditure at the Frankfurt site and in international business. This resulted in an increase in net financial debt by €259.4 million to €3,804.8 million. The gearing ratio reached a level of 94.3%.

Following the end of the first quarter of 2019, the Executive Board maintains its forecasts fiscal year 2019.

Overall, the Executive Board describes the operating and financial performance in the reporting period as positive.

Key figures

in € million Q1 2019 Q1 2018 Change Change in %
Revenue 803.8 681.7 +122.1 +17.9
Revenue adjusted for IFRIC 12 678.5 644.2 +34.3 +5.3
EBITDA 200.6 174.7 +25.9 +14.8
EBIT 86.1 82.3 +3.8 +4.6
EBT 36.5 26.2 +10.3 +39.3
Group result 28.0 19.6 +8.4 +42.9
Earnings per share (basic) (€) 0.33 0.25 +0.08 +32.0
Operating cash flow 129.0 80.5 +48.5 +60.2
Free cash flow – 245.91) –66.9 – 179.0
Average number of employees 22,149 21,225 +924 +4.4

1) Free cash flow, without taking into account the effects of the application of IFRS 16.

in € million March 31, 2019 December 31, 2018 Change Change in %
Shareholders' equity 4,407.1 4,368.0 +39.1 +0.9
Group liquidity 1,272.1 1,163.2 +108.9 +9.4
Net financial debt 3,804.8 3,545.4 +259.4 +7.3
Gearing ratio (%) 94.3 88.7 +5.6 PP
Total assets 12,101.5 11,449.1 +652.4 +5.7

Note on quarterly figures

The quarterly figures concerning the asset, financial, and earnings position have been determined in accordance with the International Financial Reporting Standards (IFRS) as applicable in the EU. The interim release does not include complete interim financial statements in accordance with International Accounting Standard (IAS) 34. The interim release was not reviewed or audited by an independent auditor.

Due to the first-time application of IFRS 16 "Leases" since January 1, 2019, the item "Property, plant, and equipment" in the consolidated statement of financial position increased by €332.6 million. The current and non-current other liabilities increased by €334.9 million. In addition, the application had a positive effect on the Group EBITDA of €10.9 million and resulted in additional depreciation and amortization of €10.4 million as well as an increased interest expense of €2.8 million. In the consolidated statement of cash flows, the first-time application of IFRS 16 improved the operating cash flow (+€10.9 million) and increased the cash flow from financing activities (–€10.9 million). The effects from the application of IFRS 16 concern, in particular, the International Activities & Services segment and result primarily from the lease agreements between the Group company Fraport USA (or its subsidiaries) and the franchisors awarding the concessions.

In this context, the definition for calculating the free cash flow has been adjusted and does not take into account effects from the application of IFRS 16. The free cash flow is calculated as follows: Cash flow from operating activities – effects resulting from the application of IFRS 16 – investments in airport operating projects (excluding payments to acquire Group companies and concessions) – capital expenditure for other intangible assets– capital expenditure in property, plant, and equipment – investments for "Investment property" – capital expenditure in companies accounted for using the equity method + dividends from companies accounted for using the equity method.

Operating Performance

Traffic development at the Group sites

Share in % Passengers1) Cargo (air freight + air mail in m. t.) Movements
Q1 2019 Change in % Q1 2019 Change in % Q1 2019 Change in %
Frankfurt 100 14,798,334 +2.5 519,028 – 1.6 116,581 +3.0
Ljubljana 100 342,636 +4.0 2,911 – 4.0 7,600 +3.9
Fortaleza 100 1,891,313 +24.4 9,650 – 2.9 15,667 +19.2
Porto Alegre 100 2,029,710 +2.3 8,832 – 1.1 18,771 – 5.3
Fraport Greece 73.4 1,919,461 +8.2 1,731 +1.4 20,169 +9.3
Lima 70.01 5,513,759 +3.7 62,530 – 4.9 46,512 – 1.7
Twin Star 60 203,606 – 5.8 1,362 – 44.7 1,991 – 14.1
Burgas 60 35,965 – 4.4 1,331 – 45.5 496 – 5.7
Varna 60 167,641 – 6.1 31 +65.4 1,495 – 16.6
Antalya 51/502) 2,716,777 +5.8 n.a. n.a. 19,562 +10.7
St. Petersburg 25 3,644,394 +14.7 n.a. n.a. 36,048 +8.9
Xi'an 24.5 11,283,674 +8.0 73,115 +13.3 82,426 +6.0

1) Commercial traffic only, in + out + transit.

2) Share of voting rights: 51%, dividend share: 50%.

In the first quarter of 2019, the number of passengers in Frankfurt, despite the later Easter holidays compared to the previous year, increased by approximately 370,000 to nearly 14.8 million passengers (+2.5%). Demand was revived by offers for new destinations as well as frequency increases. European traffic (+2.7%) posted the highest growth overall in the first quarter. Additional offers not only benefited destinations in Southeastern and Eastern Europe but also to the regions of Central America and Central Africa. Intercontinental traffic therefore grew by +2.3%. The Cargo volume at the Frankfurt site was slightly negative due to the weaker global economy.

During the reporting period, almost all Fraport Group's airports reported a positive passenger development. The number of passengers in Fortaleza increased by 24.4%, in particular as a result of frequency increases. Passenger numbers in St. Petersburg were positively impacted by a significant increase in domestic traffic (+14.7%). Based on the winter flight schedule that generally has fewer flights, the Greek regional airports showed robust overall growth (+8.2%). Merely the Bulgarian airports in Varna and Burgas saw fewer tourists from Great Britain and Germany due to the later Easter holidays, and therefore posted a slight decline in passenger numbers in the first quarter of 2019.

Financial Performance

The group's results of operations

Revenue

Group revenue increased by 17.9% in the first three months of 2019 to €803.8 million (+€122.1 million). Adjusted for the revenue in connection with capacitive capital expenditure based on the application of IFRIC 12, revenue amounted to €678.5 million (+€34.3 million). Drivers of revenue development were increased revenue from ground handling services and infrastructure charges due to higher traffic volume (+€6.2 million) as well as increased revenue from security services (+€4.7 million) at Frankfurt Airport as well as at the Cologne/Bonn and Berlin sites. Higher retail revenue (+€4.1 million) – in particular due to additional advertising revenue (+€3.0 million) – and parking revenue (+€1.4 million) also had a positive effect on revenue growth. The discontinuation of revenue from the Group company Energy Air due to the disposal of shares had a counteracting effect on Group revenue (–€7.5 million). Beyond the Frankfurt site, the Group companies Lima (+€10.2 million), which benefited from passenger growth as well as currency effects, and Fraport USA (+€7.7 million), influenced essentially by the initial recognition of the concessions in New York (since April 2018) and Nashville (since February 2019), primarily contributed to the adjusted revenue growth.

The disposal of shares in the Group company Energy Air (+€12.1 million) increased other operating income, which had been positively influenced in the same period of the previous year (€+5.6 million) due to the disposal of a commercial property for €5.0 million.

Expenses

Operating expenses (cost of materials, personnel expenses, and other operating expenses) amounting to €629.7 million were €102.3 million higher than in the previous year (+19.4%). Adjusted for the expenses in connection with capacitive capital expenditure based on the application of IFRIC 12, expenses increased by €14.5 million (+3.0%). The change is primarily due to an increase in personnel expenses and cost of materials at the Group company FraSec based on traffic volume (+€3.1 million and +€1.9 million, respectively). In addition to effects from collective bargaining agreements, the Ground Handling segment posted higher personnel expenses (+€3.7 million) partly as a result of increased need for manpower relating to gains in market share. Lower non-staff costs (cost of materials and other operating expenses) in connection with the disposal of the Group company Energy Air led to a reduction in expenses. Beyond the Frankfurt site, primarily the Group company Lima increased operating expenses in the International Activities & Services segment due to currency effects as well as higher concession fees based on traffic volume. The application of IFRS 16 had a reducing effect on operating expenses amounting to €10.9 million.

EBITDA and EBIT

Group EBITDA increased by €25.9 million, coming to €200.6 million (+14.8%). The International Activities & Services segment contributed €12.3 million to this increase. Higher depreciation and amortization (+€22.1 million), primarily in connection with the Group company Fraport USA due to the application of IFRS 16 (+€10.4 million), led to Group EBIT of €86.1 million (+€3.8 million or +4.6%).

Financial result

The improvement of the negative financial result (from –€56.1 million to –€49.6 million) was primarily attributable to the interest result that increased by €3.1 million due to higher short-term cash deposits by the Group companies Lima, Fortaleza and Porto Alegre.

EBT, Group result, and EPS

The improved financial result led to EBT of €36.5 million (+€10.3 million). With income tax expenses of €8.5 million (Q1 2018: €6.6 million), the Group result was €28.0 million (+€8.4 million). This resulted in basic earnings per share of €0.33 (+€0.08).

Results of operations for segments

Aviation in € million Q1 2019 Q1 2018 Change Change in % Revenue 225.0 219.3 +5.7 +2.6 Personnel expenses 90.1 85.1 +5.0 +5.9 Cost of materials 17.3 15.7 +1.6 +10.2 EBITDA 38.2 39.8 – 1.6 – 4.0 Depreciation and amortization 38.8 30.0 +8.8 +29.3 EBIT – 0.6 9.8 – 10.4 – Average number of employees 6,308 6,075 +233 +3.8

Revenue in the Aviation segment increased by 2.6% in the first quarter of 2019 to €225.0 million (+€5.7 million). This was primarily due to increased revenue from security services (+€4.7 million) at Frankfurt Airport as well as at the Cologne/Bonn and Berlin sites. Passenger growth in Frankfurt was reflected in slightly higher revenue from airport charges (+0.6%). This was offset by an increase in personnel expenses and cost of materials based on traffic volume primarily at the Group company FraSec (+€3.1 million and +€1.9 million, respectively). Segment EBITDA decreased by €1.6 million to €38.2 million (–4.0%). Higher depreciation and amortization led to a segment EBIT of –€0.6 million (–€10.4 million).

Retail & Real Estate

in € million Q1 2019 Q1 2018 Change Change in %
Revenue 116.2 117.4 – 1.2 – 1.0
Personnel expenses 14.5 13.7 +0.8 +5.8
Cost of materials 29.8 34.0 – 4.2 – 12.4
EBITDA 101.1 89.0 +12.1 +13.6
Depreciation and amortization 22.0 20.6 +1.4 +6.8
EBIT 79.1 68.4 +10.7 +15.6
Average number of employees 647 645 +2 +0.3

At €116.2 million, revenue in the Retail & Real Estate segment was slightly below the previous year's value (–1.0%) in the reporting period. This was primarily based on the discontinuation of revenue from the Group company Energy Air due to the disposal of shares (–€7.5 million). Passenger growth had a positive effect on retail revenue (+€4.1 million) – this included additional advertising revenue amounting to €3.0 million – as well as on parking revenue (+€1.4 million). The net retail revenue per passenger increased by 5.8% to €3.46 compared to the previous year (Q1 2018: €3.27). The disposal of shares in the Group company Energy Air (+€12.1 million) increased other operating income (+€7.3 million), which had been positively influenced in the same period of the previous year by the disposal of a commercial property for €5.0 million. Lower non-staff costs (–15.8%) in connection with the Group company Energy Air, due to the disposal of shares, led to an EBITDA of €101.1 million (+13.6%). With an increase in depreciation and amortization (+€1.4 million), segment EBIT stood at €79.1 million (+€15.6%).

Ground Handling

in € million Q1 2019 Q1 2018 Change Change in %
Revenue 160.8 151.1 +9.7 +6.4
Personnel expenses 115.0 111.3 +3.7 +3.3
Cost of materials 13.6 12.6 +1.0 +7.9
EBITDA 5.3 2.2 +3.1 > 100
Depreciation and amortization 11.7 9.9 +1.8 +18.2
EBIT – 6.4 – 7.7 +1.3
Average number of employees 9,402 9,009 +393 +4.4

In the first three months of 2019, segment revenue increased by €9.7 million to €160.8 million (+6.4%). This is mainly due to increased revenue from ground handling services and infrastructure charges. The reasons for this were increased maximum takeoff weights, market share gains, and passenger growth in Frankfurt. In addition to pay increases under collective bargaining agreements effective March 1, 2018, personnel expenses (+€3.7 million) increased in part as a result of increased need for manpower relating to the market share gains. At a slight increase in the cost of materials (+€1.0 million), EBITDA improved by €3.1 million to €5.3 million. Increased depreciation and amortization led to a segment EBIT of –€6.4 million, which compared to the previous year corresponds to an improvement of €1.3 million.

International Activities & Services

in € million Q1 2019 Q1 2018 Change Change in %
Revenue 301.8 193.9 +107.9 +55.6
Revenue adjusted for IFRIC 12 176.5 156.4 +20.1 +12.9
Personnel expenses 80.5 74.0 +6.5 +8.8
Cost of materials 227.5 139.0 +88.5 +63.7
Cost of materials adjusted for IFRIC 12 102.2 101.5 +0.7 +0.7
EBITDA 56.0 43.7 +12.3 +28.1
Depreciation and amortization 42.0 31.9 +10.1 +31.7
EBIT 14.0 11.8 +2.2 +18.6
Average number of employees 5,792 5,496 +296 +5.4

In the first quarter of 2019, revenue from the International Activities & Services segment rose by €107.9 million to €301.8 million (+55.6 %). Adjusted for revenue in connection with capacitive capital expenditure based on the application of IFRIC 12, revenue increased by €20.1 million (+12.9 %). Drivers of the adjusted revenue development were above all the Group companies Lima (+€10.2 million), which benefited from passenger growth as well as currency effects, and Fraport USA (+€7.7 million), influenced essentially by the initial recognition of the concessions in New York (since April 2018) and Nashville (since February 2019). Fraport Greece (+€2.5 million) and the Group companies Fortaleza and Porto Alegre (+€0.9 million) also contributed to revenue growth despite the Easter holiday coming later in the year.

Operating expenses (cost of materials and personnel expenses as well as other operating expenses) increased by €95.8 million to €330.6 million (+40.8%). Adjusted for the expenses in connection with capacitive capital expenditure based on the application of IFRIC 12, operating expenses increased by €8.0 million to €205.3 million (+4.1%), in part due to currency effects as well as higher concession fees based on traffic volume at the Group company Lima. The application of IFRS 16 had a reducing effect on the segment's operating expenses amounting to €9.9 million.

EBITDA recorded an increase of €12.3 million to €56.0 million (+28.1%). Despite higher depreciation and amortization, primarily in connection with the Group company Fraport USA due to the application of IFRS 16 (+€9.4 million), segment EBIT at €14.0 million was €2.2 million above the previous year's level (+18.6%).

Development of the key Group companies outside of Frankfurt (IFRS values before consolidation):

Fully consolidated Group companies

in € million Share in % Revenue1 EBITDA EBIT Result
Q1 2019 Q1 2018 Δ % Q1 2019 Q1 2018 Δ % Q1 2019 Q1 2018 Δ % Q1 2019 Q1 2018 Δ %
Fraport USA 100 17.0 9.3 +82.8 10.6 0.4 >100 0.1 – 0.7 – 2.2 – 0.7
Fraport Slovenija 100 10.1 9.8 +3.1 3.6 3.3 +9.1 1.0 0.8 +25.0 0.8 0.7 +14.3
Fortaleza + Porto Alegre2) 100 86.1 30.8 >100 9.3 9.2 +1.1 6.2 5.9 +5.1 4.1 1.5 >100
Fraport Greece3) 73.4 78.0 44.3 +76.1 0.3 – 0.5 – 11.3 – 11.5 – 25.2 – 25.1
Lima 70.01 88.6 76.3 +16.1 31.9 28.7 +11.1 28.3 25.2 +12.3 19.6 16.8 +16.7
Twin Star 60 3.2 3.5 – 8.6 – 1.2 – 0.6 – 4.2 – 3.5 – 5.2 – 4.7

Group companies accounted for using the equity method

in € million Share in % Revenue1 EBITDA EBIT Result
Q1 2019 Q1 2018 Δ % Q1 2019 Q1 2018 Δ % Q1 2019 Q1 2018 Δ % Q1 2019 Q1 2018 Δ %
Antalya 51/504) 25.5 23.9 +6.7 15.4 8.5 +81.2 – 12.5 – 18.9 – 27.0 – 27.0
Pulkovo/Thalita 25 54.7 51.3 +6.6 24.1 24.7 – 2.4 15.1 16.2 – 6.8 1.3 – 14.5
Xi'an 24.5 63.6 59.5 +6.9 28.0 29.1 – 3.8 15.8 17.4 – 9.2 13.4 14.6 – 8.2

1) Revenue adjusted for IFRIC 12: Lima Q1 2019: €81.8 million (Q1 2018: €71.6 million); Fraport Greece Q1 2019: €22.6 million (Q1 2018: €20.1 million); Fortaleza + Porto Alegre Q1 2019: €23.0 million (Q1 2018: €22.2 million); Antalya Q1 2019: €23.9 million (Q1 2018: €17.4 million).

2) Sum of the Group companies Fortaleza and Porto Alegre.

3) The Group companies Fraport Regional Airports of Greece A and Fraport Regional Airports of Greece B are collectively referred to as "Fraport Greece".

4) Share of voting rights: 51%, Dividend share: 50%.

Asset and capital structure

At €12,101.5 million, total assets as at March 31, 2019 were €652.4 million above the comparable value as at December 31, 2018 (+5.7%). Non-current assets increased by €664.4 million to €10,770.8 million. This is primarily due to the increase in property, plant, and equipment based on the first-time application of IFRS 16 (+€332.6 million) as well as increased capital expenditure (+€152.9 million) in connection with the project Expansion South at Frankfurt Airport, which included an advance payment (€112.1 million) for Pier G to the general contractor. Higher investments in airport operating projects in connection with Fraport Greece and the Group companies Fortaleza and Porto Alegre as well as Lima increased the corresponding balance sheet item (+€185.7 million). Current assets remained virtually unchanged at €1,330.7 million compared to the balance sheet date in 2018 (+0.4%).

Shareholders' equity increased slightly compared to the 2018 balance sheet date to €4,407.1 million (+0.9%). The shareholders' equity ratio was at 33.4% (December 31, 2018: 34.9%). Non-current liabilities increased by €870.1 million to €6,527.0 million due to additions of long-term financial liabilities and increased other liabilities as a result of the application of IFRS 16. Current liabilities fell significantly by €248.0 million to €1,167.4 million (–17.5%). This was primarily attributable to repayments of financial liabilities as well as lower trade accounts payable.

Gross debt was €5,076.9 as at March 31, 2019 (December 31, 2018: €4,708.6 million). Liquidity increased by €108.9 million to €1,272.1 million. As a result of the increased capital expenditure in Frankfurt and the international Group companies, the net financial debt correspondingly rose by €259.4 million to €3,804.8 million (December 31, 2018: €3,545.4 million). The gearing ratio reached a level of 94.3% (December 31, 2018: 88.7%).

Statement of cash flows

Given the Group-wide good operating development, the cash flow from operating activities (operating cash flow) increased significantly by €48.5 million to €129.0 million (+60.2%) in the first three months of 2019. The application of IFRS 16 increased the operating cash flow by €10.9 million. Adjusted for the changes in net current assets included in the statement of cash flows, the increase was €12.6 million (+9.1%).

The cash flow used in investing activities excluding investments in cash deposits and securities, increased by €225.7 million to €359.0 million. Main drivers for this were higher capital expenditure at the Frankfurt site, among other things due to an advance payment (€112.1 million) for Pier G to the general contractor as well as increased capital expenditure at Fraport Greece and the Group companies Fortaleza, Porto Alegre, and Lima. The dividends from the Group company Antalya, which is accounted for using the equity method, had a counteracting effect on the cash flow used in investing activities (+€38.2 million). Without taking into account the effects of the application of IFRS 16, the free cash flow was –€245.9 million (Q1 2018: –€66.9 million).

Including investments in and revenue from securities and promissory note loans as well as payments from time deposits, the overall cash flow used in investing activities was €416.1 million (Q1 2018: cash outflow of €116.1 million).

The significantly higher year-on-year inclusion of non-current financial liabilities to finance the expansion investments both in Frankfurt and in international business led to a cash flow from financing activities in the amount of €331.0 million (Q1 2018: cash inflow of €55.5 million). Taking into account exchange rate fluctuations and other changes, Fraport reported cash and cash equivalents based on the statement of cash flows of €682.8 million as at March 31, 2019 (Q1 2018: €476.8 million).

Events after the Balance Sheet Date

There were no significant events for the Fraport Group after the balance sheet date.

Risk and Opportunities Report

The impact levels in the risk management system, as shown in the 2018 Annual Report on page 129, have been increased effective January 1, 2019. This increase in the impact levels did not have an effect on the external reporting for the first quarter of 2019. There were no significant changes to the risks and opportunities as presented in the Risk and Opportunities Report in the 2018 Annual Report starting on page 113.

Report on Forecast Changes

Business Outlook

Following the end of the first quarter of 2019, the Executive Board maintains its forecasts for the Group-wide traffic development and the Group´s asset, financial, and earnings position as well as its forecasts for segment development for the fiscal year 2019 (see 2018 Group Management Report, page 131 et seqq.).

Consolidated Income Statement (IFRS)

Q1 2019 Q1 2018
681.7
0.2 0.1
8.8 8.4
17.5 11.9
830.3 702.1
–288.2 –201.3
–300.1 –284.1
–41.4 –42.0
200.6 174.7
–114.5 –92.4
86.1 82.3
8.9 6.4
–49.9 –50.5
–10.8 –13.0
2.2 1.0
–49.6 –56.1
36.5 26.2
–8.5 –6.6
28.0 19.6
–2.5 –3.5
30.5 23.1
0.33 0.25
0.33 0.25
803.8

Consolidated Statement of Comprehensive Income (IFRS)

in € million Q1 2019 Q1 2018
Group result 28.0 19.6
Remeasurements of defined benefit pension plans –3.5 0.0
(Deferred taxes related to those items 1.1 0.0)
Equity instruments measured at fair value 1.2 0.0
Other comprehensive income of companies accounted for using the equity method 0.4 0.1
(Deferred taxes related to those items –0.1 0.0)
Items that will not be reclassified subsequently to profit or loss –0.9 0.1
Fair value changes of derivatives
Changes recognized directly in equity –5.6 –0.8
Realized gains (+)/losses (–) –3.9 –5.6
–1.7 4.8
(Deferred taxes related to those items 0.1 –1.4)
Debt instruments measured at fair value
Changes recognized directly in equity 3.1 –3.9
Realized gains (+)/losses (–) 0.0 0.0
3.1 –3.9
(Deferred taxes related to those items –1.0 0.2)
Currency translation of foreign subsidiaries
Changes recognized directly in equity 9.8 –13.9
Realized gains (+)/losses (–) 0.0 0.0
9.8 –13.9
Income and expenses from companies accounted for using the equity method directly recognized in equity
Changes recognized directly in equity 1.7 1.2
Realized gains (+)/losses (–) 0.0 0.0
1.7 1.2
(Deferred taxes related to those items 0.0 0.0)
Items that will be reclassified subsequently to profit or loss 12.0 –13.0
Other result after deferred taxes 11.1 –12.9
Comprehensive income 39.1 6.7
thereof attributable to non-controlling interests –1.7 –5.0
thereof attributable to shareholders of Fraport AG 40.8 11.7

Consolidated Statement of Financial Position (IFRS)

Assets
in € million March 31, 2019 December 31, 2018
Non-current assets
Goodwill 19.3 19.3
Investments in airport operating projects 3,030.0 2,844.3
Other intangible assets 134.6 134.5
Property, plant, and equipment 6,554.3 6,081.7
Investment property 88.6 88.8
Investments in companies accounted for using the equity method 216.2 260.0
Other financial assets 478.7 426.1
Other receivables and financial assets 191.9 195.0
Deferred tax assets 57.2 56.7
10,770.8 10,106.4
Current assets
Inventories 28.4 28.9
Trade accounts receivable 149.4 177.9
Other receivables and financial assets 265.3 304.3
Income tax receivables 16.2 13.1
Cash and cash equivalents 871.4 801.3
1,330.7 1,325.5
Non-current assets held for sale 0.0 17.2
Total 12,101.5 11,449.1

Liabilities and equity

in € million March 31, 2019 December 31, 2018
Shareholders' equity
Issued capital 923.9 923.9
Capital reserve 598.5 598.5
Revenue reserves 2,698.7 2,657.9
Equity attributable to shareholders of Fraport AG 4,221.1 4,180.3
Non-controlling interests 186.0 187.7
4,407.1 4,368.0
Non-current liabilities
Financial liabilities 4,694.9 4,100.3
Trade accounts payable 44.9 45.5
Other liabilities 1,292.5 1,016.7
Deferred tax liabilities 227.7 228.3
Provisions for pensions and similar obligations 35.7 31.7
Provisions for income taxes 74.6 74.2
Other provisions 156.7 160.2
6,527.0 5,656.9
Current liabilities
Financial liabilities 382.0 608.3
Trade accounts payable 215.9 286.5
Other liabilities 373.9 275.6
Provisions for income taxes 27.1 43.9
Other provisions 168.5 201.1
1,167.4 1,415.4
Liabilities related to assets held for sale 0.0 8.8
Total 12,101.5 11,449.1

Consolidated Statement of Cash Flows (IFRS)

in € million Q1 2019 Q1 2018
Profit attributable to shareholders of Fraport AG 30.5 23.1
Profit attributable to non-controlling interests –2.5 –3.5
Adjustments for
Taxes on income 8.5 6.6
Depreciation and amortization 114.5 92.4
Interest result 41.0 44.1
Gains/losses from disposal of non-current assets 0.0 –4.8
Others –15.5 –4.6
Changes in the measurement of companies accounted for using the equity method 10.8 13.0
Changes in inventories 0.5 1.7
Changes in receivables and financial assets 4.2 –46.7
Changes in liabilities –14.8 –8.0
Changes in provisions –11.6 –4.6
Operating activities 165.6 108.7
Financial activities
Interest paid –4.9 –9.9
Interest received 4.2 2.7
Paid taxes on income –35.9 –21.0
Cash flow from operating activities 129.0 80.5
Investments in airport operating projects –178.2 –71.7
Investments for other intangible assets –2.2 –2.0
Capital expenditure for property, plant, and equipment –221.7 –73.8
Investments for "Investment property" –0.1 –0.5
Sale of consolidated subsidiaries 4.5 0.0
Dividends from companies accounted for using the equity method 38.2 0.6
Proceeds from disposal of non-current assets 0.5 14.1
Cash flow used in investing activities excluding investments in cash deposits and securities –359.0 –133.3
Financial investments in securities and promissory note loans –79.8 –43.0
Proceeds from disposal of securities and promissory note loans 43.5 50.6
Increase/decrease in time deposits with a term of more than three months –20.8 9.6
Cash flow used in investing activities –416.1 –116.1
Cash inflow from long-term financial liabilities 589.4 2.0
Repayment of non-current financial liabilities –121.7 –31.3
Changes in current financial liabilities –136.7 84.8
Cash flow from financing activities 331.0 55.5
Changes in restricted cash and cash equivalents 35.3 0.0
Change in cash and cash equivalents 79.2 19.9
Cash and cash equivalents as at January 1 598.2 461.0
Foreign currency translation effects on cash and cash equivalents 5.4 –4.1
Cash and cash equivalents as at March 31 682.8 476.8

Consolidated Statement of Changes in Equity (IFRS)

Issued capital Capital reserve
in € million
As at January 1, 2019 923.9 598.5
Foreign currency translation effects
Income and expenses from companies accounted for using the equity method directly recognized in equity
Remeasurement of defined benefit plans
Equity instruments measured at fair value
Debt instruments measured at fair value
Fair value changes of derivatives
Other result
Group result
As at March 31, 2019 923.9 598.5
As at January 1, 2018 923.9 598.5
Foreign currency translation effects
Income and expenses from companies accounted for using the equity method directly recognized in equity
Fair value changes of financial assets available for sale
Fair value changes of derivatives
Other result
Group result
As at March 31, 2018 923.9 598.5
Revenue reserves Foreign currency
reserve
Financial instruments Revenue reserves
(total)
Equity attributable to
shareholders of
Fraport AG
Non-controlling
interests
Share-holders'
equity (total)
2,622.9 –11.9 46.9 2,657.9 4,180.3 187.7 4,368.0
8.0 8.0 8.0 1.8 9.8
0.3 1.7 2.0 2.0 2.0
–2.4 –2.4 –2.4 –2.4
1.2 1.2 1.2 1.2
2.1 2.1 2.1 2.1
–0.6 –0.6 –0.6 –1.0 –1.6
–2.1 9.7 2.7 10.3 10.3 0.8 11.1
30.5 30.5 30.5 –2.5 28.0
2,651.3 –2.2 49.6 2,698.7 4,221.1 186.0 4,407.1
2,285.6 11.4 48.7 2,345.7 3,868.1 160.6 4,028.7
–12.3 –12.3 –12.3 –1.6 –13.9
0.1 1.1 0.1 1.3 1.3 1.3
–3.7 –3.7 –3.7 –3.7
3.3 3.3 3.3 0.1 3.4
0.1 –11.2 –0.3 –11.4 –11.4 –1.5 –12.9
23.1 23.1 23.1 –3.5 19.6
2,308.8 0.2 48.4 2,357.4 3,879.8 155.6 4,035.4

Further information on the accounting and valuation methods used can be found in the most recent annual report at http://www.fraport.com/en/investor-relations/events-und-publications/publications.html.

Financial Calendar 2019

Tuesday, May 28, 2019 Wednesday, August 7, 2019

Annual General Meeting 2019, Interim Report Q2/6M 2019, online publication, Frankfurt am Main, Jahrhunderthalle conference call with analysts and investors

Friday, May 31, 2019 Thursday, November 7, 2019 Dividend payment Interim Release Q3/9M 2019, online publication, conference call with analysts and investors

Traffic Calendar 2019

(Online publication)

April 2019 July 2019 October 2019

Friday, June 14, 2019 Friday, September 13, 2019 Friday, December 13, 2019 May 2019 August 2019 November 2019

June 2019/6M 2019 September 2019/9M 2019 December 2019/FY 2019

Tuesday, May 14, 2019 Tuesday, August 13, 2019 Wednesday, November 13, 2019

Friday, July 12, 2019 Monday, October 14, 2019 Wednesday, January 15, 2020

Imprint

Publisher Design

60547 Frankfurt am Main Germany Editorial Deadline www.fraport.com May 7, 2019

Contact Investor Relations Disclaimer

Finance & Investor Relations the binding one. Telephone: + 49 69 690-74840 Fax: + 49 69 690-74843 Rounding

Fraport AG Frankfurt Airport Services Worldwide The report was compiled with the system SmartNotes.

Fraport AG In case of any uncertainties which arise due to errors in Christoph Nanke translation, the German version of the Interim Release is

E-Mail: [email protected] The use of rounded amounts and percentages means www.meet-ir.com slight discrepancies may occur due to commercial rounding.

Where the statements made in this document relate to the future rather than the past, they 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 the underlying 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.

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