Annual Report 2005 OPEN Fraport
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Annual Report 2005 OPEN Fraport Annual Report 2005 Contents Annual Report 2005 OPEN Company 2 Key Group fi gures 6 Interview with the Chairman of the Executive Board, 3 Key segment fi gures Dr Wilhelm Bender 4 Fraport AG segments 8 The Fraport Executive Board Let Air traffi c today and tomorrow 10 Overview 22 The challenge we face: constant change the 12 Ongoing air traffi c expansion 30 Dynamic development of the hub 16 Air traffi c today and tomorrow Future Group management report begin. 34 Highlights and key fi gures 63 Corporate responsibility 36 Strategy and value management 64 Report on related party transactions 40 Innovation management 64 Risks and opportunities 41 Organization 64 Risk policy principles 42 Business development in 2005 65 The risk management system 42 Business environment and development of air traffi c 66 Business risks 44 Development of the Group airports 71 Overall risk evaluation 47 Revenue and earnings development 71 Business opportunities 49 Segment reporting 72 Signifi cant events after the balance sheet date 52 Investments 72 Outlook 54 Asset and fi nancial situation 72 Airport expansion 54 Capital expenditures 73 A380 55 Cash fl ow statement 73 FRA North 56 Balance sheet structure 73 Acquisition projects 58 The Fraport Share and Investor Relations 74 Prospects for 2006 and 2007 61 Employees Consolidated fi nancial statements and Group notes 80 Consolidated income statement 111 Explanatory notes about the consolidated 81 Consolidated balance sheet balance sheet 82 Consolidated cash fl ow statement 123 Explanatory notes about segment reporting 83 Movements in consolidated shareholders‘ equity 125 Explanatory notes about the consolidated 84 Consolidated statement of movements cash fl ow statement in non-current assets 126 Miscellaneous notes 86 Segment reporting 140 Signifi cant subsidiary companies, joint ventures 88 Notes on consolidation and accounting policies and associated companies 103 Explanatory notes about the consolidated 143 Independent auditor‘s report income statement Miscellaneous notes 144 Report of the Supervisory Board 151 Seven-year overview 148 Corporate governance 153 Imprint 150 Economic Advisory Board 153 Financial calendar Vision Financial calendar We develop mobility professionally and make it an Press conference about the 2005 fi nancial statements Tuesday, March 7 experience for our customers. As an airport group, 2005 fi nancial statements Tuesday, March 28 Report on the 1st quarter of 2006 Wednesday, May 10 we are the most capable industry player in all seg- Annual General Meeting Wednesday, May 31 Report on the 1st half of 2006 Tuesday, August 8 ments. Report on the 1st nine months of 2006 Tuesday, November 7 We consider airports to be activity centers and in- Traffic calendar Month All Group airports 1 termodal hubs. We link transport networks syste- December 2005 Thursday, January 12, 2006 matically. January 2006 Monday, February 13, 2006 February 2006 Monday, March 13, 2006 March 2006 Thursday, April 13, 2006 April 2006 Friday, May 12, 2006 We stand for efficient management of complex May 2006 Tuesday, June 13, 2006 processes and innovations, maintain our position June 2006 Thursday, July 13, 2006 July 2006 Friday, August 11, 2006 by providing competitive integrated services and August 2006 Wednesday, September 13, 2006 September 2006 Friday, October 13, 2006 respond flexibly to our customers‘ requests. October 2006 Monday, November 13, 2006 November 2006 Wednesday, December 13, 2006 1 Frankfurt, Antalya, Hahn, Hanover, Lima, Saarbrücken. Safety is our top priority. By carrying out our vision, we create sustained value in the interests of our shareholders, our em- Imprint ployees and the regions in which we operate. Publisher Support of concept, layout and production Fraport AG Kirchhoff Consult AG, Hamburg Frankfurt Airport Services Worldwide 60547 Frankfurt am Main Photography Germany Berthold Litjes, Düsseldorf Gaby Gerster, Frankfurt am Main Telephone: 01805 372-4636 Fraport AG or 01805 FRAINFO From outside Germany: +49 69 6900 Printing Internet: www.fraport.com DieAgentur für Druck GmbH, Neustadt/ Weinstraße Investor Relations Telephone: +49 (0) 69 690-74842 Publication date Fax: +49 (0) 69 690-74843 March 28, 2006 E-mail: [email protected] Fraport Annual Report 2005 Contents Annual Report 2005 OPEN Company 2 Key Group fi gures 6 Interview with the Chairman of the Executive Board, 3 Key segment fi gures Dr Wilhelm Bender 4 Fraport AG segments 8 The Fraport Executive Board Let Air traffi c today and tomorrow 10 Overview 22 The challenge we face: constant change the 12 Ongoing air traffi c expansion 30 Dynamic development of the hub 16 Air traffi c today and tomorrow Future Group management report begin. 34 Highlights and key fi gures 63 Corporate responsibility 36 Strategy and value management 64 Report on related party transactions 40 Innovation management 64 Risks and opportunities 41 Organization 64 Risk policy principles 42 Business development in 2005 65 The risk management system 42 Business environment and development of air traffi c 66 Business risks 44 Development of the Group airports 71 Overall risk evaluation 47 Revenue and earnings development 71 Business opportunities 49 Segment reporting 72 Signifi cant events after the balance sheet date 52 Investments 72 Outlook 54 Asset and fi nancial situation 72 Airport expansion 54 Capital expenditures 73 A380 55 Cash fl ow statement 73 FRA North 56 Balance sheet structure 73 Acquisition projects 58 The Fraport Share and Investor Relations 74 Prospects for 2006 and 2007 61 Employees Consolidated fi nancial statements and Group notes 80 Consolidated income statement 111 Explanatory notes about the consolidated 81 Consolidated balance sheet balance sheet 82 Consolidated cash fl ow statement 123 Explanatory notes about segment reporting 83 Movements in consolidated shareholders‘ equity 125 Explanatory notes about the consolidated 84 Consolidated statement of movements cash fl ow statement in non-current assets 126 Miscellaneous notes 86 Segment reporting 140 Signifi cant subsidiary companies, joint ventures 88 Notes on consolidation and accounting policies and associated companies 103 Explanatory notes about the consolidated 143 Independent auditor‘s report income statement Miscellaneous notes 144 Report of the Supervisory Board 151 Seven-year overview 148 Corporate governance 153 Imprint 150 Economic Advisory Board 153 Financial calendar Die Zukunft im Blick 1 2 Annual Report 2005 Key Group fi gures Key Group fi gures of Fraport AG Revenue and earnings € million 2002 2003 2004 2005 Revenue 1,803.6 1,834.3 1,998.1 2,089.8 Total revenue 1,851.8 1,887.7 2,043.7 2,141.7 EBITDA 260.3 461.8 516.2 547.5 EBIT 46.2 203.7 281.1 311.6 Result from ordinary operations – 35.1 215.1 265.1 290.4 Group profit/loss for the year – 119.5 116.2 137.6 161.5 Key figures from the balance sheet and cash flow statement € million 2002 2003 2004 2005 Shareholders‘ equity 1,816.3 1,931.7 2,041.6 2,157.9 Equity ratio (%) 50.2 52.0 54.1 52.5 Total assets 3,620.7 3,636.4 3,650.2 3,951.6 Gearing (%) 18.0 12.1 – 0.3 9.1 Capital employed 2,140.9 2,119.2 1,967.9 2,264.1 Fraport assets 2,613.2 2,496.5 2,329.0 2,310.7 Net assets 2,823.9 2,864.2 2,842.8 2,848.3 Operating cash flow 395.6 447.2 518.6 493.7 Capital expenditures 290.5 256.9 279.4 682.4 Key profitability ratios % 2002 2003 2004 2005 Return on revenue – 2.2 11.4 13.3 13.9 EBITDA margin 14.4 25.2 25.8 26.2 EBIT margin 2.6 11.1 14.1 14.9 ROCE 2.2 9.6 14.3 13.7 ROFRA 1.6 7.1 9.9 10.9 RONA 1.8 8.2 12.1 13.5 The Fraport share € 2002 2003 2004 2005 Year-end price 17.00 22.80 31.39 44.90 Earnings per share (basic) – 1.34 1.28 1.51 1.78 Dividend per share – 0.44 0.75 0.90 Frankfurt Airport traffic figures 2002 2003 2004 2005 Passengers (million) 48.5 48.4 51.1 52.2 Cargo (thousand tonnes) 1,631.5 1,650.6 1,839.1 1,963.1 Aircraft movements (thousand) 458.4 458.9 477.5 490.1 MTOWs * 24,926.9 25,398.9 27,229.6 28,160.3 Seat load factor (%) 69.8 69.4 71.0 71.7 Passengers per passenger flight 115 115 117 117 Employees 2002 2003 2004 2005 Average number of employees 21,395 23,353 24,182 25,781 * Maximum take-off weights. Key segment fi gures 3 Key fi gures of the Fraport AG segments Aviation € million 2004 2005 Revenue 626.2 688.9 EBITDA 144.8 158.1 EBIT 90.8 94.2 Fraport assets 908.8 937.4 ROFRA (%) 10.0 10.0 Net assets 856.4 874.4 RONA (%) 10.6 10.8 Employees 3,311 3,508 Retail & Properties € million 2004 2005 Revenue 373.9 374.0 EBITDA 285.8 292.1 EBIT 174.5 182.2 Fraport assets 1,260.6 1,241.2 ROFRA (%) 13.8 14.7 Net assets 918.7 888.2 RONA (%) 19.0 20.5 Employees 3,050 2,996 Ground Handling € million 2004 2005 Revenue 608.1 632.1 EBITDA 53.3 74.9 EBIT 31.1 52.1 Fraport assets 374.4 366.7 ROFRA (%) 8.3 14.2 Net assets 232.8 225.5 RONA (%) 13.4 23.1 Employees 7,042 7,111 External Activities € million 2004 2005 Revenue 389.9 394.8 EBITDA 32.3 22.4 EBIT – 15.3 –16.9 Fraport assets 345.1 355.7 ROFRA (%) – 0.4 –1.0 Net assets 367.1 375.3 RONA (%) – 0.4 –1.0 Employees 10,779 12,166 4 Annual Report 2005 Fraport AG segments Aviation Success factor intermodality The Aviation segment is responsible for the business opera- tions in Frankfurt relating to fl ight and terminal manage- ment, airport and aviation security and the planned airport expansion program.