Interim / Quarterly Report • Aug 7, 2013
Interim / Quarterly Report
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January 1 to June 30, 2013
Compared with the organizational structure on December 31, 2012 (see 2012 Annual Report, pages 22, 28 et seq.), the following changes occurred during the reporting period:
As a new Executive Board member, Anke Giesen (Executive Director Ground Handling) has been responsible for the "Ground Services" and "Retail and Properties" strategic business units since January 1, 2013. In addition, her area of
responsibility includes the new "HR Top Executives" central unit.
Within the framework of the Annual General Meeting for the fiscal year 2013 and as a result of the election pursuant to the provisions of the German Co-determination Act, a new Supervisory Board for the company was elected. Since June 1, 2013, the Supervisory Board therefore has been composed as follows:
Uwe Becker Claudia Amier Kathrin Dahnke Devrim Arslan Peter Feldmann Hakan Cicek Dr. Margarete Haase Dr. Roland Krieg Jörg-Uwe Hahn Mehmet Özdemir Lothar Klemm Arno Prangenberg Stefan Lauer Hans-Jürgen Schmidt Michael Odenwald Werner Schmidt Prof. Dr.-Ing. Katja Windt Edgar Stejskal
Karlheinz Weimar (Chairman) Gerold Schaub (Vice Chairman)
There were no other material changes.
Since the beginning of the year, Fraport has applied the revised version of IAS 19 "Employee Benefits". The consolidated income statement as well as the consolidated financial position for 2012 were adjusted based on the retroactive application of IAS 19. The effects resulting from the initial application of IAS 19 with respect to partial retirement are presented in the notes to this interim report. The changes in pension accounting do not have any effects on the presentation of these interim financial statements.
Following a weak first quarter, the passenger development at Frankfurt Airport slightly recovered in the second quarter of the fiscal year (drop in number of passengers in the first quarter: – 2.0% compared to – 0.3% in the second quarter). In the end, 27.1 million passengers meant a reduced number of passengers by 1.0%. Group-wide, the passenger volume increased in the first half year by 3.2% to about 45.6 million primarily as a result of positive developments in Lima and Antalya. Cargo throughput improved slightly by 0.9% to
1.02 million metric tons at the Frankfurt site and by 1.2% to 1.15 million metric tons at Group airports. Group revenue rose by 5.1% to €1,212.4 million. As a result of the positive development in revenue, the Group EBITDA at €374.6 million was €16.9 million above the value for 2012. Despite increased depreciation and amortization, the Group result increased slightly to €82.1 million (+1.0%). Basic earnings per share remained unchanged at €0.86. Free cash flow as of the end of the first six months of 2013 was at €– 57.2 million (6M 2012: €– 145.9 million).
The Hessian Ministry of Economics, Transport, Urban and Regional Development supplemented the zoning decision of December 18, 2007, with the zoning supplemental decision of April 30, 2013 containing more stringent protection requirements for commercial properties and by the zoning supplemental decision of May 10, 2013 containing an additional protection requirement with respect to wake turbulences. An explanation of the effects on the interim financial statements of the Fraport Group as of June 30, 2013, can be found in the chapter "Asset and financial position" on page 8 of this report.
| € million | 6M 2013 | 6M 2012 adjusted | Change | % change |
|---|---|---|---|---|
| Revenue | 1,212.4 | 1,153.6 | 58.8 | 5.1 |
| EBITDA | 374.6 | 357.7 | 16.9 | 4.7 |
| EBITDA margin | 30.9% | 31.0% | – 0.1 PP 1 | – |
| EBIT | 203.4 | 199.0 | 4.4 | 2.2 |
| EBT | 119.4 | 116.7 | 2.7 | 2.3 |
| Group result | 82.1 | 81.3 | 0.8 | 1.0 |
| Earnings per share in € (basic) | 0.86 | 0.86 | 0 | 0 |
| Operating cash flow | 231.5 | 200.1 | 31.4 | 15.7 |
| Free cash flow2 | – 57.2 | – 145.9 | 88.7 | – |
| Shareholders' equity | 2,942.9 | 2,948.2 3 | – 5.3 | – 0.2 |
| Liquidity | 1,473.4 | 1,663.1 3 | – 189.7 | – 11.4 |
| Net financial debt | 3,130.9 | 2,934.5 3 | 196.4 | 6.7 |
| Total assets | 9,571.0 | 9,640.6 3 | – 69.6 | – 0.7 |
| Average number of employees | 21,043 | 20,666 | 377 | 1.8 |
| € million | Q2 2013 | Q2 2012 adjusted | Change | % change |
|---|---|---|---|---|
| Revenue | 662.2 | 615.7 | 46.5 | 7.6 |
| EBITDA | 243.5 | 220.3 | 23.2 | 10.5 |
| EBITDA margin | 36.8% | 35.8% | 1.0 PP 1 | – |
| EBIT | 158.1 | 138.3 | 19.8 | 14.3 |
| EBT | 112.9 | 95.6 | 17.3 | 18.1 |
| Group result | 77.6 | 66.5 | 11.1 | 16.7 |
| Earnings per share in € (basic) | 0.80 | 0.69 | 0.11 | 15.9 |
| Operating cash flow | 161.8 | 132.7 | 29.1 | 21.9 |
| Free cash flow2 | 39.2 | – 20.9 | 60.1 | – |
| Average number of employees | 21,131 | 20,967 | 164 | 0.8 |
1 Percentage points.
2 Free cash flow = Cash flow from operating activities – Investment in airport operating projects – Capital expenditure for other intangible assets – Capital expenditure for property, plant and equipment – Investment property.
3 Figures as of December 31, 2012.
According to the preliminary figures of Airports Council International, global passenger traffic grew by 3.0% in the period January to May 2013. In the same period – at an ongoing global economic weakness – air freight volume rose by 0.1%. Passenger figures at European airports rose slightly by 1.3%. The European air freight volume fell, primarily due to the continuing debt crisis in Europe and the generally weak economic development, by 1.1%. Also influenced by weather- and strike-related flight cancellations, the German airports recorded a cumulative decrease in passenger traffic of 0.6% through June 2013. Cargo tonnage (air freight and air mail) handled was up by 0.3% in Germany. The leap day in 2012 resulted in an increase in traffic in the prior year of around 0.5 percentage points.
The Fraport Group's airports (those in which an interest of 50% or more is held) achieved growth of 3.2% to around 45.6 million passengers in the first six months of 2013. The number of aircraft movements fell slightly by 0.2% to about 382,300. Cargo volume rose by 1.2% to just at 1.15 million metric tons. In total, around 91.8 million passengers (+5.4%) used Fraport airports (including minority-owned airports as well as the management contract at Cairo Airport).
With a drop of 1.0% to around 27.1 million passengers, the passenger volume at Frankfurt Airport in the first half of 2013 was below that of the comparable period of the previous year (– 286,000 passengers). On the one hand, the absence of the leap-year day had a negative effect and, on the other hand, various airlines reduced their offer as a result of continuing consolidation measures. Moreover, the first-half result was
impacted by a disproportionately large number of weatherand strike-related flight cancellations, affecting more than 340,000 passengers.
The disruptive events and trimming of flight plans predominantly influenced domestic and European passenger traffic. At – 3.1% and – 1.9%, respectively, both markets reflected perceptible decreases. Despite the negative base year effect resulting from the leap day in the previous year, intercontinental passenger volume increased by 1.0% in the reporting period. Destinations in particular in North and Central Africa, the Caribbean and South America developed positively. The markets in the Far East (in particular India, Malaysia, Thailand and Taiwan) and North America reflected a slight increase overall.
With just 1.02 million metric tons handled, cargo tonnage exceeded that of the prior year slightly by 0.9% or approximately 8,800 metric tons. Similarly to passenger traffic, intercontinental cargo throughput (+1.5% or +13,300 metric tons) developed positively and more than made up for the halfyear minus of a good 4,500 metric tons in continental cargo tonnage. The number of aircraft movements and the cumulative maximum take-off weights were down by 3.8% and 3.7%, respectively, as a result of the airlines' consolidation measures, the large number of weather- and strike-related flight cancellations and the lack of the leap year day.
At Antalya Airport, passenger figures increased by 8.8% to around 10.3 million in the first half year 2013. Contributing to the positive development were both international traffic (+8.0% to approximately 7.9 million passengers), resulting especially from increased travelers from Russia, and traffic within Turkey (+11.5% to about 2.4 million passengers).
With a good 7.1 million travelers, Lima Airport recorded an unchanged strong growth rate of 12.6% in the first half year 2013, with the number of international passengers increasing by 8.8% to around 3.4 million and the number of domestic passengers increasing by 16.2% to about 3.7 million. At around 128,000 metric tons, cargo throughput also was above the previous year's level (+3.5%).
Approximately 630,000 passengers meant an increase for Burgas Airport of 5.3% compared with the first half year of 2012. The growth in the number of passengers was above all the result of more travelers from Russia. Varna Airport also benefited from Russian passengers and achieved an increase of 17.2% to just at 389,000 passengers.
| 2013 | Fraport | Passengers 2 | Cargo (air freight and air mail in m.t.) | Movements | |||
|---|---|---|---|---|---|---|---|
| share | 2013 | % change | 2013 | % change | 2013 | % change | |
| in % | over 2012 | over 2012 | over 2012 | ||||
| Frankfurt | 100.00 | 27,136,678 | – 1.0 | 1,017,725 | 0.9 | 229,293 | – 3.8 |
| Antalya | 51.00/50.00 3 | 10,330,046 | 8.8 | n. a. | n. a. | 68,801 | 6.8 |
| Lima | 70.01 | 7,119,389 | 12.6 | 127,883 | 3.5 | 74,639 | 5.2 |
| Burgas | 60.00 | 630,420 | 5.3 | 1,361 | 12.2 | 5,568 | – 5.8 |
| Varna | 60.00 | 388,583 | 17.2 | 14 | 2.3 | 3,977 | 17.3 |
| Group | 45,605,116 | 3.2 | 1,146,983 | 1.2 | 382,278 | – 0.2 |
1 In addition, Fraport holds a 60% share in the operating company of the new Dakar Airport, which is currently under construction.
2 Commercial traffic only, in + out + transit.
3 Proportionate consolidation, 51% voting rights and 50% equity share.
| 2013 | Fraport | Passengers 2 | Cargo (air freight and air mail in m.t.) | Movements | |||
|---|---|---|---|---|---|---|---|
| share | 2013 | % change | 2013 | % change | 2013 | % change | |
| in % | over 2012 | over 2012 | over 2012 | ||||
| Delhi | 10.00 | 18,683,291 | 2.6 | 282,013 | – 1.4 | 152,006 | – 3.1 |
| Xi'an | 24.50 | 12,347,642 | 15.8 | 82,914 | 7.1 | 107,862 | 14.7 |
| Cairo | 0.00 | 7,111,639 | 5.3 | 139,343 | – 2.8 | 73,067 | 7.6 |
| St. Petersburg | 35.50 | 5,643,746 | 15.2 | n. a. | n. a. | 62,304 | 5.8 |
| Hanover | 30.00 | 2,388,538 | 0.0 | 7,448 | – 8.6 | 36,304 | – 6.4 |
| Total | 46,174,856 | 7.6 | 511,718 | – 0.6 | 431,543 | 3.6 | |
1 Without traffic figures for the airports in Riyadh and Jeddah (management contracts). Those figures were not available until the editorial deadline. 2 Commercial traffic only, in + out + transit.
In the first half year of 2013, Delhi Airport – with about 18.7 million travelers – recorded an increase of 2.6% compared to the previous year. While there continued to be significant growth in international traffic, domestic passenger volume fell.
Xi'an Airport again realized a continuing positive development, with passenger volume increasing by 15.8% to approximately 12.3 million in the first six months of 2013 compared to the prior year. Thus passenger growth again was above the national average.
At a good 5.6 million travelers, passenger traffic at St. Petersburg Airport achieved an increase of 15.2% in the first half year of 2013 compared to the previous year. Particularly in international traffic, significant growth of around 19.4% was recorded.
At approximately 2.4 million passengers, Hanover Airport maintained the level of the prior year in the first six months of 2013. While the months January through April 2013 still recorded a drop in passenger figures, the months May and June reflected increases in passengers.
In the first six months of the fiscal year 2013, the Fraport Group generated revenue in the amount of €1,212.4 million. Compared to the same period of the previous year, this corresponded to an increase of €58.8 million or 5.1%. Adjusted for the recognition of capacitive capital expenditure, neutral on earnings, in the Group companies Twin Star and Lima in connection with the application of IFRIC 12, revenue of €1,177.8 million was above the corresponding value for the previous year by €32.2 million (+2.8%).
Contributing in particular to the positive development of revenue at the Frankfurt site were the increase in airport charges as of January 1, 2013 by an average of 2.9% and the good development of retail business, which above all was attributable to the inauguration of Pier A-Plus in October 2012. Outside of Frankfurt, the Group companies Lima, Antalya and Twin Star continued to develop positively. In the prior year, high one-time revenue from the realization of land sales at the Frankfurt site resulted in additional revenue.
At €32.8 million, other income was below the comparable value for 2012 by €3.6 million (– 9.9%) essentially as a result of lower capitalized internal work. At €1,245.2 million, total revenue achieved an increase of €55.2 million or 4.6%. Adjusted for the application of IFRIC 12, this item at €1,210.6 million was €28.6 million above the corresponding value of the previous year (+2.4%).
Personnel expenses increased €7.5 million to €484.7 million (+1.6%) in the reporting period. The increase was attributable, among other things, to the collective wage agreement in the public sector and the higher staff demand at the Frankfurt site in connection with winter services and operation of Pier A-Plus. Increased non-staff costs (material and other operating expenses) at the Frankfurt site were attributable, in particular, to the utilization of Pier A-Plus and the performance of winter services. Acting in the other direction were lower expenses resulting from land sales and a provision formed in the second quarter of 2012 for noise abatement measures in the amount of €10.5 million. In external business, the recognition of capacitive capital expenditure in the Twin Star and Lima Group companies in connection with the application of IFRIC 12 and the higher traffic-related concession charges in Lima in particular resulted in increased nonstaff costs. In total, non-staff costs increased Group-wide by €30.8 million to €385.9 million (+8.7%). Adjusted for the recognition of capacitive capital expenditure in the Twin Star and Lima Group companies, this item at €351.3 million was above that of the previous year by €4.2 million (+1.2%). Total operating expenses at €870.6 million were above the previous year level by €38.3 million (+4.6%); adjusted for the recognition of capacitive capital expenditure, they were at €836.0 million (+1.4%).
Because of the positive revenue development, Group EBITDA rose in the first half of the current fiscal year by €16.9 million to €374.6 million (+4.7%). Compared with the prior year, the EBITDA margin was at an almost unchanged level of 30.9% (– 0.1 percentage points). Adjusted for the revenue and expenses from recognition of capacitive capital expenditure outside of the Frankfurt site in connection with the application of IFRIC 12, it rose from 31.2% to 31.8%. Despite higher depreciation and amortization, which resulted primarily from the inauguration of Pier A-Plus last October, Group EBIT increased by €4.4 million to €203.4 million (+2.2%).
At €– 84.0 million, the financial result in the first half year 2013 was nearly unchanged from the previous year's value of €– 82.3 million. The lower result from associated companies was counterbalanced by an almost equally positive development of the other financial result. Increased interest expenses were almost completely offset by higher interest income. Capitalized interest expenses relating to construction work of €9.3 million in the reporting period (6M 2012: €15.6 million) had a reducing effect on the reported interest expenses.
The rise in Group EBIT in the face of an almost constant financial result led to Group EBT of €119.4 million, which was above the previous year's value by €2.7 million (+2.3%). At an expected tax rate of around 31%, (6M 2012: around 30%) the Group result compared with that of the previous year was up by €0.8 million to €82.1 million (+1.0%). Basic earnings per share remained unchanged at €0.86.
| € million | 6M 2013 | 6M 2012 | Change | Change |
|---|---|---|---|---|
| adjusted | in % | |||
| Revenue | 402.5 | 393.7 | 8.8 | 2.2 |
| Personnel expenses | 141.1 | 140.4 | 0.7 | 0.5 |
| EBITDA | 85.4 | 77.6 | 7.8 | 10.1 |
| EBITDA margin | 21.2% | 19.7% | 1.5 PP | – |
| EBIT | 28.6 | 25.1 | 3.5 | 13.9 |
| Average number | ||||
| of employees | 6,257 | 6,222 | 35 | 0.6 |
| € million | Q2 2013 | Q2 2012 | Change | Change |
| adjusted | in % | |||
| Revenue | 217.7 | 213.8 | 3.9 | 1.8 |
| Personnel expenses | 71.5 | 72.5 | – 1.0 | – 1.4 |
| EBITDA | 66.7 | 51.2 | 15.5 | 30.3 |
| EBITDA margin | 30.6% | 23.9% | 6.7 PP | – |
| EBIT | 38.7 | 23.9 | 14.8 | 61.9 |
| Average number | ||||
| of employees | 6,250 | 6,256 | – 6 | – 0.1 |
| € million | 6M 2013 | 6M 2012 | Change | Change |
|---|---|---|---|---|
| adjusted | in % | |||
| Revenue | 229.1 | 227.3 | 1.8 | 0.8 |
| Personnel expenses | 24.3 | 23.4 | 0.9 | 3.8 |
| EBITDA | 172.3 | 165.1 | 7.2 | 4.4 |
| EBITDA margin | 75.2% | 72.6% | 2.6 PP | – |
| EBIT | 132.6 | 129.8 | 2.8 | 2.2 |
| Average number | ||||
| of employees | 650 | 624 | 26 | 4.2 |
| € million | Q2 2013 | Q2 2012 | Change | Change |
| adjusted | in % | |||
| Revenue | 121.3 | 107.9 | 13.4 | 12.4 |
| Personnel expenses | 12.1 | 11.7 | 0.4 | 3.4 |
| EBITDA | 92.0 | 83.5 | 8.5 | 10.2 |
| EBITDA margin | 75.8% | 77.4% | – 1.6 PP | – |
| EBIT | 72.4 | 65.1 | 7.3 | 11.2 |
| Average number | ||||
| of employees | 649 | 627 | 22 | 3.5 |
Despite lower passenger figures and aircraft movements at the Frankfurt site, revenue in the Aviation segment rose by €8.8 million in the first half of 2013 to €402.5 million (+2.2%). The primary reason for the higher revenue was the increase in airport charges as of January 1, 2013 by an average of 2.9%. On the expense side, a provision for noise abatement measures in the amount of €10.5 million formed in the second quarter of 2012 led to a positive base effect for the current fiscal year. Operating expenses increased during the reporting period in particular as a result of the operation of Pier A-Plus, which was opened in October 2012, and of higher expenses for winter services.
Segment EBITDA improved by €7.8 million to €85.4 million (+10.1%) as a result of the increase in revenue and the base effect resulting from the provision formed in the previous year. Despite higher depreciation and amortization as a result of the inauguration of Pier A-Plus, segment EBIT rose by €3.5 million to €28.6 million (+13.9%).
At €229.1 million, revenue of the Retail & Real Estate segment was above the prior year value by €1.8 million (+0.8%). The higher revenue was essentially caused by the positive developments in the areas of retail and real estate. Mainly thanks to the opening of Pier A-Plus, the key performance indicator "net retail revenue per passenger" improved from €3.23 to €3.56 (+10.2%). In the prior year, high one-time proceeds from the realization of land sales resulted in additional revenue. Non-staff costs fell primarily as a result of reduced expenses in connection with land sales. Higher expenses for energy and utilities acted in the opposite direction. Segment EBITDA increased by €7.2 million to €172.3 million (+4.4%) as a result of the positive development of revenue. Additional depreciation and amortization essentially resulting from the utilization of Pier A-Plus reduced the increase in segment EBIT. At €132.6 million, this figure was up €2.8 million over the previous year (+2.2%).
| € million | 6M 2013 | 6M 2012 | Change | Change |
|---|---|---|---|---|
| adjusted | in % | |||
| Revenue | 320.8 | 321.6 | – 0.8 | – 0.2 |
| Personnel expenses | 206.7 | 204.3 | 2.4 | 1.2 |
| EBITDA | 5.5 | 15.4 | – 9.9 | – 64.3 |
| EBITDA margin | 1.7% | 4.8% | – 3.1 PP | – |
| EBIT | – 14.6 | – 2.5 | – 12.1 | – |
| Average number | ||||
| of employees | 9,056 | 8,881 | 175 | 2.0 |
| € million | Q2 2013 | Q2 2012 | Change | Change |
| adjusted | in % | |||
| Revenue | 166.0 | 166.3 | – 0.3 | – 0.2 |
| Personnel expenses | 102.4 | 102.6 | – 0.2 | – 0.2 |
| EBITDA | 7.6 | 14.5 | – 6.9 | – 47.6 |
| EBITDA margin | 4.6% | 8.7% | – 4.1 PP | – |
| EBIT | – 2.6 | 5.1 | – 7.7 | – |
| Average number | ||||
| of employees | 8,851 | 8,840 | 11 | 0.1 |
| € million | 6M 2013 | 6M 2012 | Change | Change |
|---|---|---|---|---|
| adjusted | in % | |||
| Revenue | 260.0 | 211.0 | 49.0 | 23.2 |
| Personnel expenses | 112.6 | 109.1 | 3.5 | 3.2 |
| EBITDA | 111.4 | 99.6 | 11.8 | 11.8 |
| EBITDA margin | 42.8% | 47.2% | – 4.4 PP | – |
| EBIT | 56.8 | 46.6 | 10.2 | 21.9 |
| Average number | ||||
| of employees | 5,080 | 4,939 | 141 | 2.9 |
| € million | Q2 2013 | Q2 2012 | Change | Change |
| adjusted | in % | |||
| Revenue | 157.2 | 127.7 | 29.5 | 23.1 |
| Personnel expenses | 56.4 | 55.8 | 0.6 | 1.1 |
| EBITDA | 77.2 | 71.1 | 6.1 | 8.6 |
| EBITDA margin | 49.1% | 55.7% | – 6.6 PP | – |
| EBIT | 49.6 | 44.2 | 5.4 | 12.2 |
| Average number | ||||
| of employees | 5,381 | 5,244 | 137 | 2.6 |
The lower passenger figures and lower maximum take-off weights at the Frankfurt site led to a reduction in revenue in the Ground Handling segment in the first half of 2013. Revenue at €320.8 million was slightly below the level of the previous year by €0.8 million (– 0.2%). It was possible to realize a positive revenue effect from the performance of winter services. Correspondingly, winter services led to additional personnel and non-staff costs.
Segment EBITDA dropped from €15.4 million to €5.5 million also as a result of a staff-related provision released in the second quarter of 2012 (– 64.3%). Higher depreciation and amortization due to the utilization of Pier A-Plus led to a segment EBIT of €– 14.6 million. Compared with the previous year, this represented a deterioration of €12.1 million.
In the first six months of 2013, the External Activities & Services segment realized an increase in revenue of €49.0 million to €260.0 million (+23.2%). At €26.6 million, a major part of the additional revenue is attributable to increased capacitive capital expenditure in the Group companies Twin Star and Lima in connection with the application of IFRIC 12. Adjusted for the application of IFRIC 12, segment revenue improved from €203.0 million in the previous year to €225.4 million in the reporting period (+11.0%). The positive development of revenue was essentially due to the growth in passengers in the Group companies Lima and Antalya. Operating expenses increased primarily due to the recognition of capacitive capital expenditure in the Twin Star and Lima Group companies. Adjusted for the application of IFRIC 12, operating expenses increased primarily as a result of higher traffic-related concession charges in Lima.
Segment EBITDA improved by €11.8 million to €111.4 million (+11.8%) due to positive contributions by the Antalya and Lima Group companies and IT services at the Frankfurt site. At €56.8 million, segment EBIT exceeded the value of the previous year by €10.2 million (+21.9%).
The following table shows the pre-consolidation business figures for the Fraport Group's key companies outside Frankfurt:
| € million | Fraport | Revenue 3 | EBITDA | EBIT | ||||||
|---|---|---|---|---|---|---|---|---|---|---|
| share | 6M 2013 | 6M 2012 | ∆% | 6M 2013 | 6M 2012 | ∆% | 6M 2013 | 6M 2012 | ∆% | |
| Antalya 1 | 51%/50% | 115.4 | 105.7 | 9.2 | 94.1 | 88.6 | 6.2 | 44.9 | 40.0 | 12.3 |
| Lima 2 | 70.01% | 98.4 | 89.0 | 10.6 | 34.3 | 31.8 | 7.9 | 27.5 | 25.5 | 7.8 |
| Twin Star | 60% | 42.6 | 15.4 | >100 | 5.1 | 4.3 | 18.6 | 1.5 | 0.8 | 87.5 |
1 Proportional consolidation with 51% voting interests and 50% equity share. Values correspond to 100% figures before proportional consolidation. 2 Figures in accordance with IFRS; local GAAP figures might differ.
3 Revenue adjusted by IFRIC 12: Antalya 6M 2013: €115.4 million (6M 2012: €105.7 million); Lima 6M 2013: €93.4 million (6M 2012: €84.6 million); Twin Star 6M 2013: €13.0 million (6 M 2012: €11.8 million).
The Fraport Group made capital expenditures of €346.4 million during the first six months of 2013 and thus €205.9 million less than in the corresponding period of the previous year (6M 2012: €552.3 million). In the reporting period, €213.0 million was used for property, plant and equipment; €84.3 million in financial assets; €10.9 million in capital expenditure in investment property; and €38.2 million in intangible assets and airport operating projects. Capitalized interest expenses relating to construction work amounted to €9.3 million during the reporting period (6M 2012: €15.6 million).
At €208.2 million, the greater part of capital expenditure in property, plant and equipment related to Fraport AG, with the emphasis again being on Frankfurt Airport's capacity expansion and capital expenditure in Pier A-Plus. Capital expenditure in financial assets related almost solely to additions to securities.
The Fraport Group realized cash flow from operating activities of €231.5 million in the first half of 2013 (6M 2012: €200.1 million). The increase in comparison with the previous year value essentially was caused by refunds from prepaid taxes.
Cash flow used in investing activities without investments in cash deposits and securities at €– 277.7 million was below that of the previous year's value by €91.8 million, primarily due to lower capital expenditure in property, plant and equipment. Including capital expenditure in and proceeds from securities and promissory note loans and returns from time deposits with a duration of more than three months, total cash flow used in investing activities was approximately €– 76.5 million and thus was significantly below the value for 2012 by €327.4 million.
Free cash flow improved in the first six months of 2013 from €– 145.9 million to €– 57.2 million as a result of a higher cash flow from operating activities and the lower level of capital expenditure.
Cash flow used in financing activities of €138.9 million (6M 2012: cash inflow of €130.8 million) was mainly attributable to the repayment of non-current financial liabilities and to the dividend payment for the fiscal year 2012.
In connection with the financing for the portion of the Antalya concession attributable to Fraport, €78.9 million of bank deposits were subject to drawing restrictions as of June 30, 2013. Cash and cash equivalents in the statement of cash flows therefore came to €175.4 million as of June 30, 2013. The following table shows a reconciliation with cash and cash equivalents as shown on the Group financial position:
| € million | June 30, 2013 Dec 31, 2012 | June 30, 2012 | |
|---|---|---|---|
| Cash and cash equivalents as of | |||
| the Group statement of cash flows | 175.4 | 127.1 | 88.1 |
| Cash and cash equivalents with a | |||
| duration of more than three months | 404.2 | 584.0 | 555.0 |
| Restricted cash | 78.9 | 110.8 | 88.1 |
| Cash and cash equivalents as of | |||
| the Group financial position | 658.5 | 821.9 | 731.2 |
In comparison with the 2012 balance sheet date, total assets of the Fraport Group as of June 30, 2013 decreased by €69.6 million to €9,571.0 million (– 0.7%) mainly due to the reduction in current assets and non-current liabilities.
Non-current assets changed from €8,140.8 million to €8,230.1 million (+1.1%) in particular as a result of the increase in the item "Other receivables and financial assets" and capital expenditure activities at the Frankfurt site (item "Property, plant and equipment"). The increase in the item "Other receivables and financial assets" essentially resulted from the capitalization of expenses in connection with the obligation to make compensatory payments for outdoor living areas in the amount of €48.3 million on the basis of the Aircraft Noise Act (Gesetz zum Schutz gegen Fluglärm, FluLärmG). The capital expenditure at the Frankfurt site also include expenses in the amount of €30.4 million capitalized as production costs in connection with the capacity expansion on the basis of the supplemental protection requirements resulting from the zoning supplemental decisions concerning commercial properties and wake turbulences (see page 2 of this interim report). Current assets showed a significant decline of 10.6% to €1,340.9 million. While the cash outflow for capital expenditure, the dividend payment and the payment of the annual Antalya concession lowered the cash and cash equivalents, an increase in trade accounts receivable, mainly due to the reporting date, caused an increase in current assets.
In comparison with the 2012 balance sheet date, shareholders' equity as of June 30, 2013 fell slightly – despite a Group result of €82.1 million – by €5.3 million to €2,942.9 million (– 0.2%) as a result of the dividend distribution. The shareholders' equity ratio (shareholders' equity less non-controlling interests and profit earmarked for distribution) increased by 1.4 percentage points to 30.4% (December 31, 2012: 29.0%).
Non-current liabilities fell from €5,893.1 million to €5,729.3 million (– 2.8%) in particular as a result of lower financial liabilities and other liabilities. While there was a drop in financial liabilities – despite the taking out of a new promissory note loan in an amount of €50.0 million – in connection with the repayment of loans, other liabilities fell essentially as a result of lower concession liabilities and lower negative market valuations of derivatives. In connection with the obligations resulting from the zoning supplemental decisions and the obligation for compensatory payments of outdoor living areas, provisions were formed in the total amount of €78.7 million. Current liabilities increased by €99.5 million to €898.8 million (+12.4%) mainly as a result of additional current financial liabilities.
As of June 30, 2013, gross financial debt stood at €4,604.3 million, a €6.7 million increase over the level on December 31, 2012 (+0.1%). After deducting the Group's liquidity of €1,473.4 million (December 31, 2012: €1,663.1 million), the net financial debt of €3,130.9 million was 6.7% higher in comparison with the 2012 balance sheet date. The gearing ratio attained a value of 107.7% (December 31, 2012: 104.9%).
At a price of €46.48, the Fraport share ended the first half year of 2013 with a value increase of 5.8% compared with the closing price of the 2012 fiscal year of €43.94. Thus the share developed slightly better than the DAX benchmark index, which increased in the same period by 4.6%, but disproportionately low in comparison with the MDAX, which rose by 15.0%.
While the share closed the first quarter almost unchanged at €43.73 (– 0.5%), the price improved in the second quarter by 6.3%. The reason for the positive development in the second quarter was mainly a generally favorable market environment.
The shares of Fraport's European competitors developed as follows in the reporting period: Aéroports de Paris +28.1%, Vienna Airport +2.2% and Zurich Airport +12.2%.
Source: Bloomberg
As of June 30, 2013, the shareholder structure adjusted to the current total number of shares was as follows:
1 The relative ownership interests were adjusted to the current total number of shares as of June 30, 2013, and therefore may differ from the figures given at the time of reporting or from the respective shareholders' own disclosure. Interests below 3% are classified under "Free Float".
As in the previous year, the 2013 Annual General Meeting resolved a dividend of €1.25 per share for the fiscal year 2012. In relation to the share closing price at year-end 2012, this corresponded to a dividend yield of 2.8% (2011: 3.3%). The pay-out ratio thus represented 65.6% of Fraport AG's result of €176.0 million for the year 2012 (2011: 63.3%) and 48.5% of the reported Group result attributable to shareholders of Fraport AG of €238.3 million (previous year: 48.0%).
| 6M 2013 | 6M 2012 | Change | Change | |
|---|---|---|---|---|
| in % | ||||
| Fraport Group | 21,043 | 20,666 | 377 | 1.8 |
| thereof Fraport AG | 11,060 | 11,422 | – 362 | – 3.2 |
| thereof in Group | ||||
| companies | 9,983 | 9,244 | 739 | 8.0 |
| thereof in Germany | 19,135 | 18,782 | 353 | 1.9 |
| thereof abroad | 1,908 | 1,884 | 24 | 1.3 |
| Q2 2013 | Q2 2012 | Change | Change | |
|---|---|---|---|---|
| in % | ||||
| Fraport Group | 21,131 | 20,967 | 164 | 0.8 |
| thereof Fraport AG | 11,035 | 11,430 | – 395 | – 3.5 |
| thereof in Group | ||||
| companies | 10,096 | 9,537 | 559 | 5.9 |
| thereof in Germany | 18,912 | 18,798 | 114 | 0.6 |
| thereof abroad | 2,219 | 2,169 | 50 | 2.3 |
The average number of employees rose by 377 employees to 21,043 employees (+1.8%) in the reporting period. In Germany, there was an increased demand for personnel in the Group company Airport Personal Services (+277 employees) in particular on the basis of winter services in the first quarter of 2013. In addition, the number of employees in the Group company Fraport Security Services increased (+137 employees) primarily as a result of more air security personnel for Pier A-Plus. The reduction in staff at Fraport AG (– 362 employees) is attributable, among other things, to the shifting of employees to the Group companies FRA - Vorfeldkontrolle and FRA - Vorfeldaufsicht.
There were no significant events for the Fraport Group after the balance sheet date.
In the Group management report as of December 31, 2012, we reported on risks in connection with plans of the EU Commission for the further liberalization of ground handling services. In March 2013, a revised draft directive of the Commission was handled and adopted in the traffic committee. This draft was accepted in the plenary session of the European Parliament on April 16, 2013. The draft essentially states that a third-party ground handling company must be approved in the case of airports with more than 15 million passengers, with a maximum transition period of 6 years, thus by no later than the end of 2019. Moreover, while there is no requirement for spin-off, a separation in terms of cost accounting must be implemented. Possible subcontracting for selfhandling is also disadvantageous, while this should be prohibited for the airports. The draft contains many social criteria and thus binds the ground handling companies to minimum standards. The draft will now be passed on to the Council of Ministers, and complete adoption is possible by the end of the year.
In the Group management report as of December 31, 2012, we reported that capital expenditure of up to €130 million for a state-of-the-art drainage system could be necessary in connection with the operation of Runway West and the existing parallel take-off and landing runway system depending on the results of investigations due to required official approvals. According to current estimates, depending on the further course of the investigations, investments ranging from the mid-double-digit-€-millions up to €300 million can be expected for the parallel runway system. Currently no official notification has been received. According to current cost estimates, capital expenditure of just under €30 million could be required for Runway West.
Moreover there were no other significant changes in the opportunities and risks presented in the Group management report as of December 31, 2012 (see 2012 Annual Report, page 62 et seqq.). Currently there are no discernible risks that could jeopardize the Fraport Group as a going concern.
The overall economic situation in Germany continues to be regarded as moderately positive compared to other European countries. Growth forecasts for the full year of 2013, however, were again revised downward. Currently, the majority of the economic institutes expect slight to moderate real economic growth for Germany of 0.1% to 0.7%. A gradual improvement is generally expected in the course of the year, with a positive effect in particular on the year 2014. The institutes see a slight negative development for Europe. A radical change in the economic trend that might provide a boost to the aviation industry in general, as well as to the Fraport Group at the Frankfurt site, is thus not expected for 2013. In view of the varied estimates with respect to the timing and dynamics of the economic recovery, the general economic conditions for air traffic continue to feature elevated uncertainties and are to be closely observed.
On the basis of business development of the first half-year of 2013, Fraport maintains its traffic and earnings outlook for the fiscal year 2013 (see 2012 Annual Report, page 71 et seqq.). For the Frankfurt site, Fraport continues to expect passenger numbers at about the level of the fiscal year 2012. For the key Group companies outside of Frankfurt, a rise in passenger figures continues to be expected. Group EBITDA between €870 million and €890 million is expected for 2013, while Group result will drop. The earnings outlook of the Fraport segments also remains unchanged. The reduced maximum take-off weights at the Frankfurt site will lead to a continuing negative effect on the Ground Handling segment and could negatively influence its earnings development.
If there should be further strikes in the course of the year that affect flight operations, the actual development of traffic and earnings can deviate from the forecast, particularly at the Frankfurt site.
Where the statements made in this document relate to the future rather than the past, these statements 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 basic 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.
| € million | 6M 2013 | 6M 2012 | Q2 2013 | Q2 2012 |
|---|---|---|---|---|
| adjusted | adjusted | |||
| Revenue | 1,212.4 | 1,153.6 | 662.2 | 615.7 |
| Change in work-in-process | 0.3 | 0.2 | 0.1 | 0.3 |
| Other internal work capitalized | 16.1 | 19.7 | 7.2 | 10.1 |
| Other operating income | 16.4 | 16.5 | 7.9 | 11.7 |
| Total revenue | 1,245.2 | 1,190.0 | 677.4 | 637.8 |
| Cost of materials | – 307.0 | – 267.8 | – 149.0 | – 122.4 |
| Personnel expenses | – 484.7 | – 477.2 | – 242.4 | – 242.6 |
| Other operating expenses | – 78.9 | – 87.3 | – 42.5 | – 52.5 |
| EBITDA | 374.6 | 357.7 | 243.5 | 220.3 |
| Depreciation and amortization | – 171.2 | – 158.7 | – 85.4 | – 82.0 |
| EBIT/Operating result | 203.4 | 199.0 | 158.1 | 138.3 |
| Interest income | 23.6 | 20.9 | 12.1 | 10.8 |
| Interest expenses | – 112.3 | – 109.1 | – 55.5 | – 53.0 |
| Result from associated companies | – 2.6 | 1.9 | – 4.1 | – 2.4 |
| Other financial result | 7.3 | 4.0 | 2.3 | 1.9 |
| Financial result | – 84.0 | – 82.3 | – 45.2 | – 42.7 |
| EBT/Result from ordinary operations | 119.4 | 116.7 | 112.9 | 95.6 |
| Taxes on income | – 37.3 | – 35.4 | – 35.3 | – 29.1 |
| Group result | 82.1 | 81.3 | 77.6 | 66.5 |
| thereof profit attributable to non-controlling interests | 3.1 | 2.5 | 3.7 | 2.7 |
| thereof profit attributable to shareholders of Fraport AG 79.0 | 78.8 | 73.9 | 63.8 | |
| Earnings per €10 share in € | ||||
| basic | 0.86 | 0.86 | 0.80 | 0.69 |
| diluted | 0.85 | 0.85 | 0.80 | 0.69 |
| € million | 6M 2013 | 6M 2012 | Q2 2013 | Q2 2012 |
|---|---|---|---|---|
| adjusted | adjusted | |||
| Group result | 82.1 | 81.3 | 77.6 | 66.5 |
| Items that will be reclassified subsequently | ||||
| to profit or loss | ||||
| Fair value changes of derivatives | ||||
| Changes directly recognized in equity | 18.8 | – 28.8 | 11.2 | – 21.0 |
| thereof realized gains (+)/losses (–) | – 18.8 | – 13.4 | – 10.6 | – 7.5 |
| 37.6 | – 15.4 | 21.8 | – 13.5 | |
| (Deferred taxes related to those items | – 11.2 | 4.5 | – 7.0 | 3.6) |
| Fair value changes of financial instruments held for sale | ||||
| Changes directly recognized in equity | – 3.8 | 8.3 | – 8.7 | – 4.3 |
| thereof realized gains (+)/losses (–) | – 0.4 | 4.1 | 0.0 | 4.6 |
| – 3.4 | 4.2 | – 8.7 | – 8.9 | |
| (Deferred taxes related to those items | 0.8 | 3.7 | 1.1 | – 0.7) |
| Foreign currency translation of subsidiaries | 1.0 | 0.4 | – 1.9 | 2.2 |
| Income and expenses from associated companies | ||||
| accounted for using the equity method directly | ||||
| recognized in equity | 4.7 | – 1.7 | 1.4 | 0.6 |
| (Deferred taxes related to those items | – 0.6 | 0.8 | – 0.5 | 0.8) |
| Deferred taxes on other result | – 11.0 | 9.0 | – 6.4 | 3.7 |
| Other result after deferred taxes | 28.9 | – 3.5 | 6.2 | – 15.9 |
| Comprehensive income | 111.0 | 77.8 | 83.8 | 50.6 |
| thereof attributable to non-controlling interests | 3.0 | 2.7 | 3.3 | 3.3 |
| thereof attributable to shareholders of Fraport AG | 108.0 | 75.1 | 80.5 | 47.3 |
| Assets | ||
|---|---|---|
| € million | June 30, 2013 | December 31, 2012 adjusted |
| Non-current assets | ||
| Goodwill | 38.6 | 38.6 |
| Investments in airport operating projects | 1,027.5 | 1,031.2 |
| Other intangible assets | 52.3 | 44.2 |
| Property, plant and equipment | 5,961.5 | 5,927.3 |
| Investment property | 45.2 | 34.4 |
| Investments in associated companies | 135.2 | 136.6 |
| Other financial assets | 731.6 | 742.7 |
| Other receivables and financial assets | 170.6 | 117.1 |
| Income tax receivables | 20.3 | 19.5 |
| Deferred tax assets | 47.3 | 49.2 |
| 8,230.1 | 8,140.8 | |
| Current assets | ||
| Inventories | 74.4 | 77.7 |
| Trade accounts receivable | 230.2 | 180.0 |
| Other receivables and financial assets | 366.1 | 385.2 |
| Income tax receivables | 11.7 | 35.0 |
| Cash and cash equivalents | 658.5 | 821.9 |
| 1,340.9 | 1,499.8 | |
| 9,571.0 | 9,640.6 | |
| Liabilities and Equity € million |
June 30, 2013 | December 31, 2012 |
| adjusted | ||
| Shareholders' equity | ||
| Issued capital | 922.0 | 921.3 |
| Capital reserve | 590.1 | 588.0 |
| Revenue reserves | 1,396.1 | 1,403.2 |
| Equity attributable to shareholders of Fraport AG | 2,908.2 | 2,912.5 |
| Non-controlling interests | 34.7 | 35.7 |
| 2,942.9 | 2,948.2 | |
| Non-current liabilities | ||
| Financial liabilities | 4,283.3 | 4,401.0 |
| Trade accounts payable | 58.2 | 64.4 |
| Other liabilities | 919.2 | 1,006.4 |
| Deferred tax liabilities | 111.7 | 102.5 |
| Provisions for pensions and similar obligations | 28.1 | 27.4 |
| Provisions for income taxes | 82.4 | 80.2 |
| Other provisions | 246.4 | 211.2 |
| 5,729.3 | 5,893.1 | |
| Current liabilities | ||
| Financial liabilities | 321.0 | 196.6 |
| Trade accounts payable | 174.2 | 214.4 |
| Other liabilities | 204.7 | 163.2 |
| Provisions for income taxes | 1.0 | 5.3 |
| Other provisions | 197.9 | 219.8 |
| 898.8 | 799.3 |
9,571.0 9,640.6
| € million | 6M 2013 | 6M 2012 |
|---|---|---|
| Profit attributable to shareholders of Fraport AG | 79.0 | adjusted 78.8 |
| Profit attributable to non-controlling interests | 3.1 | 2.5 |
| Adjustments for | ||
| Taxes on income | 37.3 | 35.4 |
| Depreciation and amortization | 171.2 | 158.7 |
| Interest result | 88.7 | 88.2 |
| Gains/losses from disposal of non-current assets | – 0.4 | – 4.2 |
| Others | – 0.7 | 0.3 |
| Fair value changes in associated companies | 2.6 | – 1.9 |
| Changes in inventories | 3.3 | 5.9 |
| Changes in receivables and financial assets | – 37.1 | – 55.5 |
| Changes in liabilities | – 26.0 | – 14.9 |
| Changes in provisions | – 23.5 | 12.8 |
| Operating activities | 297.5 | 306.1 |
| Financial activities | ||
| Interest paid | – 64.2 | – 62.2 |
| Interest received | 17.8 | 13.5 |
| Taxes on income paid | – 19.6 | – 57.3 |
| Cash flow from operating activities | 231.5 | 200.1 |
| Investments in airport operating projects | – 80.0 | – 65.9 |
| Capital expenditure for other intangible assets | – 3.6 | – 1.7 |
| Capital expenditure for property, plant and equipment | – 187.5 | – 271.0 |
| Investment property | – 17.6 | – 7.4 |
| Dividends from associated companies | 2.9 | 6.3 |
| Loans to affiliated companies 1 | 0.0 | – 31.1 |
| Proceeds from disposal of non-current assets | 8.1 | 1.3 |
| Cash flow used in investing activities without investments | ||
| in cash deposits and securities | – 277.7 | – 369.5 |
| Financial investments in securities and promissory note loans | – 179.1 | – 319.6 |
| Proceeds from disposal of securities and promissory note loans | 200.5 | 160.2 |
| Decrease of time deposits with a duration of more than three months | 179.8 | 125.0 |
| Cash flow used in investing activities | – 76.5 | – 403.9 |
| Dividends paid to shareholders of Fraport AG | – 115.2 | – 114.8 |
| Dividends paid to non-controlling interests | – 4.0 | – 6.7 |
| Capital increase | 2.5 | 2.3 |
| Cash inflow from long-term financial liabilities | 59.5 | 13.0 |
| Repayment of long-term financial liabilities | – 151.7 | – 11.3 |
| Changes in short-term financial liablities | 70.0 | 248.3 |
| Cash flow used in/from financing activities | – 138.9 | 130.8 |
| Change in restricted cash | 31.9 | 26.2 |
| Change in cash and cash equivalents | 48.0 | – 46.8 |
| Cash and cash equivalents on January 1 | 127.1 | 132.8 |
| Foreign currency translation effects on cash and cash equivalents | 0.3 | 2.1 |
| Cash and cash equivalents as at June 30 | 175.4 | 88.1 |
1 This refers to joint ventures, associated companies and investments.
| € million | Issued capital |
Capital reserve |
Revenue reserves |
Foreign currency |
Financial instruments |
Revenue reserves |
Equity attributable to |
Non– controlling |
Equity (total) |
|---|---|---|---|---|---|---|---|---|---|
| reserve | (total) | shareholders | interests | ||||||
| of Fraport AG | |||||||||
| Balance at January 1, 2013 adjusted | 921.3 | 588.0 | 1,511.8 | 8.4 | – 117.0 | 1,403.2 | 2,912.5 | 35.7 | 2,948.2 |
| Foreign currency translation effects | – | – | – | 1.1 | – | 1.1 | 1.1 | – 0.1 | 1.0 |
| Income and expenses from associated | |||||||||
| companies directly recognized in equity | – | – | – | 1.9 | 2.2 | 4.1 | 4.1 | – | 4.1 |
| Fair value changes of financial assets held for sale | – | – | – | – | – 2.6 | – 2.6 | – 2.6 | – | – 2.6 |
| Fair value changes of derivatives | – | – | – | – | 26.4 | 26.4 | 26.4 | – | 26.4 |
| Net income (+)/Net costs (–) | |||||||||
| directly recognized in equity | 0.0 | 0.0 | 0.0 | 3.0 | 26.0 | 29.0 | 29.0 | – 0.1 | 28.9 |
| Issue of shares for employee investment plan | 0.6 | 1.9 | – | – | – | 0.0 | 2.5 | – | 2.5 |
| Management Stock Options Plan | |||||||||
| – Capital increase for exercise of options | 0.1 | 0.2 | – | – | – | 0.0 | 0.3 | – | 0.3 |
| – Value of performed services (fair value) | – | – | – | – | – | 0.0 | 0.0 | – | 0.0 |
| Distributions | – | – | – 115.2 | – | – | – 115.2 | – 115.2 | – 4.0 | – 119.2 |
| Group result | – | – | 79.0 | – | – | 79.0 | 79.0 | 3.1 | 82.1 |
| Consolidation activities/other changes | – | – | 0.1 | – | – | 0.1 | 0.1 | – | 0.1 |
| Balance at June 30, 2013 | 922.0 | 590.1 | 1,475.7 | 11.4 | – 91.0 | 1,396.1 | 2,908.2 | 34.7 | 2,942.9 |
| Balance at January 1, 2012 adjusted | 918.8 | 584.7 | 1,394.0 | 11.5 | – 78.5 | 1,327.0 | 2,830.5 | 29.4 | 2,859.9 |
| Foreign currency translation effects | – | – | – | 0.2 | – | 0.2 | 0.2 | 0.2 | 0.4 |
| Income and expenses from associated | |||||||||
| companies directly recognized in equity | – | – | – | 2.3 | – 3.2 | – 0.9 | – 0.9 | – | – 0.9 |
| Fair value changes of financial assets held for sale | – | – | – | – | 7.9 | 7.9 | 7.9 | – | 7.9 |
| Fair value changes of derivatives | – | – | – | – | – 10.9 | – 10.9 | – 10.9 | – | – 10.9 |
| Net income (+)/Net costs (–) | |||||||||
| directly recognized in equity | 0.0 | 0.0 | 0.0 | 2.5 | – 6.2 | – 3.7 | – 3.7 | 0.2 | – 3.5 |
| Issue of shares for employee investment plan | 0.5 | 1.8 | – | – | – | 0.0 | 2.3 | – | 2.3 |
| Management Stock Options Plan | |||||||||
| – Capital increase for exercise of options | 1.6 | 0.9 | – | – | – | 0.0 | 2.5 | – | 2.5 |
| – Value of performed services (fair value) | – | 0.2 | – | – | – | 0.0 | 0.2 | – | 0.2 |
| Distributions | – | – | – 114.8 | – | – | – 114.8 | – 114.8 | – 6.7 | – 121.5 |
| Group result | – | – | 78.8 | – | – | 78.8 | 78.8 | 2.5 | 81.3 |
| Consolidation activities/other changes | – | – | 0.1 | – | – | 0.1 | 0.1 | – | 0.1 |
| Balance at June 30, 2012 adjusted | 920.9 | 587.6 | 1,358.1 | 14.0 | – 84.7 | 1,287.4 | 2,795.9 | 25.4 | 2,821.3 |
(Previous year's figures adjusted)
| € million | Aviation | Retail & | Ground | External | Adjustments | Group | |
|---|---|---|---|---|---|---|---|
| Real Estate | Handling | Activities | |||||
| & Services | |||||||
| Revenue | 6M 2013 | 402.5 | 229.1 | 320.8 | 260.0 | 1,212.4 | |
| 6M 2012 | 393.7 | 227.3 | 321.6 | 211.0 | 1,153.6 | ||
| Other income | 6M 2013 | 13.2 | 5.2 | 6.8 | 7.6 | 32.8 | |
| 6M 2012 | 12.7 | 6.7 | 10.0 | 7.0 | 36.4 | ||
| Third-party revenue | 6M 2013 | 415.7 | 234.3 | 327.6 | 267.6 | 1,245.2 | |
| 6M 2012 | 406.4 | 234.0 | 331.6 | 218.0 | 1,190.0 | ||
| Inter-segment revenue | 6M 2013 | 38.4 | 118.2 | 17.9 | 173.8 | – 348.3 | |
| 6M 2012 | 35.8 | 107.0 | 15.2 | 164.7 | – 322.7 | ||
| Total revenue | 6M 2013 | 454.1 | 352.5 | 345.5 | 441.4 | – 348.3 | 1,245.2 |
| 6M 2012 | 442.2 | 341.0 | 346.8 | 382.7 | – 322.7 | 1,190.0 | |
| EBITDA | 6M 2013 | 85.4 | 172.3 | 5.5 | 111.4 | 374.6 | |
| 6M 2012 | 77.6 | 165.1 | 15.4 | 99.6 | 357.7 | ||
| Depreciation and amortization | 6M 2013 | 56.8 | 39.7 | 20.1 | 54.6 | 171.2 | |
| of segment assets | 6M 2012 | 52.5 | 35.3 | 17.9 | 53.0 | 158.7 | |
| Segment result (EBIT) | 6M 2013 | 28.6 | 132.6 | – 14.6 | 56.8 | 203.4 | |
| 6M 2012 | 25.1 | 129.8 | – 2.5 | 46.6 | 199.0 | ||
| Book value of | June 30, 2013 | 4,119.8 | 2,673.5 | 768.5 | 1,929.9 | 79.3 | 9,571.0 |
| segment assets | December 31, 2012 | 4,142.0 | 2,670.9 | 777.6 | 1,946.4 | 103.7 | 9,640.6 |
The consolidated financial statements for 2012 were prepared in compliance with the International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB) and the interpretations thereof by the International Financial Reporting Interpretations Committee (IFRIC) as applicable in the European Union. The accompanying abbreviated interim financial statements of Fraport Group for the period ending on June 30, 2013 have been prepared in accordance with IAS 34. As far as they apply to the Fraport Group, all official bulletins of the IASB as of January 1, 2013, have been taken into account. This interim report also meets the requirements of German Accounting Standard No. 16 (DRS 16) on interim financial reporting.
With respect to the accounting and valuation methods applied in Group accounting, please see the 2012 Annual Report (see page 88 et seqq.).
The interim financial statements were not reviewed or audited by an independent auditor.
Since the beginning of the year, Fraport has applied the revised version of IAS 19 "Employee Benefits". With the revision of IAS 19, the actuarial profits and losses must be reported directly under other comprehensive income. As in the past, the expected revenue from the plan assets is determined using standardized interest on plan assets at the level of the current discount rate of the pension obligations. The changes in pension accounting do not have any effects on the presentation of these interim financial statements. In addition, on the basis of the changes in IAS 19, the step-up payments of the partial retirement provisions may no longer be reflected as "termination benefits". In the future, they will be accounted for as "other long-term employee benefits". The necessary adjustments resulting from this for the interim financial statements as of June 30, 2013 are presented in the following table. The initial application of the revised versions of IAS 19 takes place in compliance with the transition regulations.
In May 2011, IFRS 13 "fair value measurement" was published by the IASB. IFRS 13 must be applied for fiscal years beginning January 1, 2013. It provides general regulations for determining fair value. Application of this standard at Fraport does not have any material effects on the net asset, financial and earnings position.
| June 30, 2012 | June 30, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | |||
|---|---|---|---|---|---|---|
| € million | reported | adjusted | Adjustment | reported | adjusted | Adjustment |
| Adjustment consolidated financial position | ||||||
| Other provisions | ||||||
| non-current | 229.1 | 224.1 | – 5.0 | 215.1 | 211.2 | – 3.9 |
| Deferred tax liabilities | 99.3 | 100.8 | 1.5 | 101.3 | 102.5 | 1.2 |
| Shareholders' equity | 2,817.8 | 2,821.3 | 3.5 | 2,945.5 | 2,948.2 | 2.7 |
| Adjustment consolidated income statement | ||||||
| Other operating income | 23.4 | 16.5 | – 6.9 | |||
| Personnel expenses | – 476.1 | – 477.2 | – 1.1 | |||
| Taxes on income | – 37.8 | – 35.4 | 2.4 | |||
| Group result | 86.9 | 81.3 | – 5.6 | |||
| Earnings per €10 share in € | ||||||
| basic | 0.92 | 0.86 | – 0.06 | |||
| diluted | 0.91 | 0.85 | – 0.06 |
The following tables present the carrying amounts and fair values of the financial instruments as of June 30, 2013 and December 31, 2012, respectively.
| € million | Measured at amortized cost | Measured at fair value | June 30, 2013 |
|||||
|---|---|---|---|---|---|---|---|---|
| Recognized in income | ||||||||
| Measurement category | Nominal | Fair value | Held for | Available | Hedging | Total | ||
| according to IAS 39 | volume | Loans and receivables | option | trading | for sale | derivative | fair value | |
| Assets | Liquid funds | Carrying amount |
Fair value | Carrying amount 1 |
Carrying amount 1 |
Carrying amount 1 |
Carrying amount 1 |
|
| Cash and cash equivalents | 658.5 | 658.5 | ||||||
| Trade accounts receivable | 230.2 | 230.2 | 230.2 | |||||
| Other financial receivables | ||||||||
| and assets | 181.4 | 181.4 | 249.1 | 430.5 | ||||
| Other financial assets | ||||||||
| – Securities | 0.9 | 492.4 | 493.3 | |||||
| – Other investments | 62.1 | 62.1 | ||||||
| – Loans to investments | 128.2 | 128.2 | 128.2 | |||||
| – Other loans | 48.0 | 48.0 | 48.0 | |||||
| Derivative financial assets | ||||||||
| – Hedging derivative | 0.0 | |||||||
| – Other derivatives | 0.0 | |||||||
| Total assets | 658.5 | 587.8 | 587.8 | 0.9 | 0.0 | 803.6 | 0.0 | 2,050.8 |
| Fair value | Held for | IAS 17 | Hedging | Total | ||||
|---|---|---|---|---|---|---|---|---|
| Other financial liabilities | option | trading | liability | derivative | fair value | |||
| Liabilities and equity | Carrying | Fair value | Carrying | Carrying | Carrying | Fair value | Carrying | |
| amount | amount 1 | amount 1 | amount | amount 1 | ||||
| Trade accounts payable | 232.5 | 237.0 | 237.0 | |||||
| Other financial liabilities | 680.2 | 777.3 | 777.3 | |||||
| Financial liabilities | 4,604.3 | 4,658.5 | 4,658.5 | |||||
| Liabilities from finance leases | 67.0 | 73.0 | 73.0 | |||||
| Derivative financial liabilities | ||||||||
| – Hedging derivative | 161.4 | 161.4 | ||||||
| – Other derivatives | 36.7 | 36.7 | ||||||
| Total liabilities and equity | 5,517.0 | 5,672.8 | 36.7 | 67.0 | 73.0 | 161.4 | 5,943.9 |
1 The carrying amount equals the fair value of the financial instruments.
| € million | Measured at amortized cost | Measured at fair value | |||||||
|---|---|---|---|---|---|---|---|---|---|
| Recognized in income | 2012 | ||||||||
| Measurement category | Nominal | Fair value | Held for | Available | Hedging | Total | |||
| according to IAS 39 | volume | Loans and receivables | option | trading | for sale | derivative | fair value | ||
| Assets | Liquid funds | Carrying | Fair value | Carrying | Carrying | Carrying | Carrying | ||
| amount | amount 1 | amount 1 | amount 1 | amount 1 | |||||
| Cash and cash equivalents | 821.9 | 821.9 | |||||||
| Trade accounts receivable | 180.0 | 180.0 | 180.0 | ||||||
| Other financial receivables | |||||||||
| and assets | 110.2 | 110.2 | 265.4 | 375.6 | |||||
| Other financial assets | |||||||||
| – Securities | 0.9 | 497.0 | 497.9 | ||||||
| – Other investments | 63.0 | 63.0 | |||||||
| – Loans to investments | 128.4 | 128.4 | 128.4 | ||||||
| – Other loans | 53.4 | 53.4 | 53.4 | ||||||
| Derivative financial assets | |||||||||
| – Hedging derivative | 0.0 | ||||||||
| – Other derivatives | 0.0 | ||||||||
| Total assets | 821.9 | 472.0 | 472.0 | 0.9 | 0.0 | 825.4 | 0.0 | 2,120.2 |
| Fair value | Held for | IAS 17 | Hedging | Total | ||||
|---|---|---|---|---|---|---|---|---|
| Other financial liabilities | option | trading | liability | derivative | fair value | |||
| Liabilities and equity | Carrying | Fair value | Carrying | Carrying | Carrying | Fair value | Carrying | |
| amount | amount 1 | amount 1 | amount | amount 1 | ||||
| Trade accounts payable | 278.8 | 284.8 | 284.8 | |||||
| Other financial liabilities | 718.6 | 752.7 | 752.7 | |||||
| Financial liabilities | 4,597.6 | 4,791.3 | 4,791.3 | |||||
| Liabilities from finance leases | 73.6 | 85.1 | 85.1 | |||||
| Derivative financial liabilities | ||||||||
| – Hedging derivative | 199.0 | 199.0 | ||||||
| – Other derivatives | 45.2 | 45.2 | ||||||
| Total liabilities and equity | 5,595.0 | 5,828.8 | 45.2 | 73.6 | 85.1 | 199.0 | 6,158.1 |
1 The carrying amount equals the fair value of the financial instruments.
Given the short maturities for cash and cash equivalents, trade accounts receivable and other financial receivables and assets, the carrying amounts as of the reporting date correspond to fair value.
The valuation of unlisted securities is based on market data applicable on the valuation date using reliable and specialized sources and data providers. The values are determined using established valuation models.
The derivative financial instruments mainly relate to interest rate hedging transactions. The fair values of these financial instruments are determined on the basis of discounted future expected cash flows, using market interest rates corresponding to the terms to maturity.
In order to determine the fair value of financial liabilities, the future expected cash flows are determined and discounted based on the yield curve on the reporting date. The market risk premium for the term and respective borrower on the reporting date is added to the cash flows.
The fair values of listed securities correspond to the stock market prices on the reporting date.
There is no price quotation or market price for shares in partnerships and other unlisted investments, as there is no active market for them. These shares are reflected at market values to the extent a reliable determination is possible. The determination of market values is carried out through discounting future expected cash flows. For shares whose fair value cannot be reliably determined, it was assumed that the carrying amount corresponds to the fair value. These assets are not intended for sale as of the balance sheet date.
The carrying amounts of other loans and loans to affiliated companies correspond to the respective fair values. Some of the other loans are subject to a market interest rate, and their carrying amounts therefore represent a reliable valuation of their fair values. Another part of the other loans is accounted at present value on the balance sheet date. Here, it is also assumed that the present value corresponds to the fair value. The remaining other loans are promissory note loans with a remaining term of less than five years. Due to the absence of an active market, no information is available on the risk premiums of the respective issuers. Therefore the carrying amount is utilized as the most reliable measure for their fair value. There is no intention to sell as of the balance sheet date.
Non-current trade accounts payable are recognized at their present value. Interest rates with similar terms on the date of addition are used as a basis for discounting future cash outflows. To determine fair value, the respective cash outflows are discounted at interest rates with similar terms on the reporting date. The carrying amounts of current trade accounts payable correspond to the fair value.
The financial instruments recognized at fair value in the financial position belong to the following input levels of the hierarchy within the meaning of IFRS 7.27A:
| € million | Level 1 | Level 2 | Level 3 | |
|---|---|---|---|---|
| Assets | June 30, 2013 | Quoted prices | Derived prices | Prices that cannot |
| be derived | ||||
| Other financial receivables and financial assets | ||||
| – Available for sale | 249.1 | 249.1 | 0.0 | 0.0 |
| – Fair value option | 0.0 | 0.0 | 0.0 | 0.0 |
| Other financial assets | ||||
| – Securities available for sale | 492.4 | 492.4 | 0.0 | 0.0 |
| – Securities fair value option | 0.9 | 0.0 | 0.9 | 0.0 |
| – Other investments | 61.8 | 0.0 | 61.8 | 0.0 |
| Derivative financial assets | ||||
| – Derivatives without hedging relationships | 0.0 | 0.0 | 0.0 | 0.0 |
| – Derivatives with hedging relationships | 0.0 | 0.0 | 0.0 | 0.0 |
| Total assets | 804.2 | 741.5 | 62.7 | 0.0 |
| Liabilities and equity | ||||
| Derivative financial liabilities | ||||
| – Derivatives without hedging relationships | 36.7 | 0.0 | 36.7 | 0.0 |
| – Derivatives with hedging relationships | 161.4 | 0.0 | 161.4 | 0.0 |
| Total liabilities and equity | 198.1 | 0.0 | 198.1 | 0.0 |
As of December 31, 2012 the financial instruments recognized at fair value in the financial position belong to the following input levels of the hierarchy within the meaning of IFRS 7.27A:
| € million | Level 1 | Level 2 | Level 3 | |
|---|---|---|---|---|
| Assets | December 31, 2012 | Quoted prices | Derived prices | Prices that cannot |
| be derived | ||||
| Other financial receivables and financial assets | ||||
| – Available for sale | 265.4 | 265.4 | 0.0 | 0.0 |
| – Fair value option | 0.0 | 0.0 | 0.0 | 0.0 |
| Other financial assets | ||||
| – Securities available for sale | 497.0 | 497.0 | 0.0 | 0.0 |
| – Securities fair value option | 0.9 | 0.0 | 0.9 | 0.0 |
| – Other investments | 62.6 | 0.0 | 62.6 | 0.0 |
| Derivative financial assets | ||||
| – Derivatives without hedging relationships | 0.0 | 0.0 | 0.0 | 0.0 |
| – Derivatives with hedging relationships | 0.0 | 0.0 | 0.0 | 0.0 |
| Total assets | 825.9 | 762.4 | 63.5 | 0.0 |
| Liabilities and equity | ||||
| Derivative financial liabilities | ||||
| – Derivatives without hedging relationships | 45.2 | 0.0 | 45.2 | 0.0 |
| – Derivatives with hedging relationships | 199.0 | 0.0 | 199.0 | 0.0 |
| Total liabilities and equity | 244.2 | 0.0 | 244.2 | 0.0 |
As of June 30, 2013, a total of 59 companies, including associates, have been consolidated into the Fraport Group.
There were no material changes regarding the type and scope compared to the balance sheet date. As disclosed under item 48 (page 149 et seqq.) of the Group notes to the 2012 Annual Report, there are numerous business relationships with related parties. Fraport will continue to apply and adhere to the arm's-length principle for all transactions carried out with these related parties.
In the interim reporting period, taxes on income are recognized on the basis of the best estimates made for the weighted average annual income tax rate expected for the full year.
As of June 30, 2013, a total of 2,016,150 stock options had been issued under Fraport AG's stock options plans (see 2012 Annual Report, page 138 et seqq.). A total of 1,143,100 stock options were issued through the year 2009, when the fifth and final tranche was issued under the 2005 Fraport Management Stock Options Plan. As of June 30, 2013, 864,900 of these stock options had expired and 256,650 had been exercised.
Compared to December 31, 2012, order commitments, which essentially relate to property, plant and equipment, rose by around €21.4 million to €463.6 million.
There were no other significant changes in contingent liabilities and other financial commitments as of June 30, 2013.
To the best of our knowledge, and in accordance with the applicable reporting principles for interim financial reporting, the interim consolidated financial statements give a true and fair view of the net assets, earnings and financial position of the Group. Furthermore, the interim management report of the Group includes a fair review of the development and performance of the business and the position of the Group, together with a description of the principal opportunities and risks associated with the expected development of the Group for the remaining months of the fiscal year.
Frankfurt am Main, August 7, 2013 Fraport AG Frankfurt Airport Services Worldwide The Executive Board
Dr. Schulte Giesen Müller Schmitz Dr. Zieschang
Friday, March 7, 2014 Preliminary figures 2013 Thursday, March 27, 2014 Annual Report 2013 Friday, May 30, 2014 Annual General Meeting 2014
Monday, August 12, 2013 July 2013 Wednesday, September 11, 2013 August 2013 Friday, October 11, 2013 September 2013/9M 2013 Tuesday, November 12, 2013 October 2013 Wednesday, December 11, 2013 November 2013 Wednesday, January 15, 2014 December 2013/FY 2013 Wednesday, February 12, 2014 January 2014 Wednesday, March 12, 2014 February 2014 Thursday, April 10, 2014 March 2014/3M 2014 Tuesday, May 13, 2014 April 2014 Thursday, June 12, 2014 May 2014 Thursday, July 10, 2014 June 2014/6M 2014 Tuesday, August 12, 2014 July 2014 Wednesday, September 10, 2014 August 2014 Monday, October 13, 2014 September 2014/9M 2014 Wednesday, November 12, 2014 October 2014 Wednesday, December 10, 2014 November 2014 Thursday, January 15, 2015 December 2014/FY 2014
Stefan J. Rüter Head of Finance and Investor Relations Telephone: +49 (0)69 690-74840 Telefax: +49 (0)69 690-74843 Internet: www.meet-ir.com E-Mail: [email protected]
Imprint
Published by: Fraport AG Frankfurt Airport Services Worldwide 60547 Frankfurt am Main, Germany Telephone: +49 (0)1806 3724636* Internet: www.fraport.com
Responsible for the contents: Finance and Investor Relations (FIR) Layout, production: Corporate Communications (UKM-IK) Publication date: August 7, 2013 (8/13/0,05/APC)
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Wednesday, November 6, 2013 Group Interim Report January 1 to September 30, 2013 Thursday, May 8, 2014 Group Interim Report January 1 to March 31, 2014 Thursday, August 7, 2014 Group Interim Report January 1 to June 30, 2014 Thursday, November 6, 2014 Group Interim Report January 1 to September 30, 2014
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