Annual Report 2012 A-Plus Annual Report 2012 Fraport at a Glance Group Financial Figures € million 2012 2011 Change Revenue 2,442.0 2,371.2 3.0 % Total revenue 2,549.2 2,452.8 3.9 % EBITDA 850.7 802.3 6.0 % EBIT 498.0 496.6 0.3 % EBT 366.1 347.3 5.4 % Group result 251.6 250.8 0.3 % Profit attributable to shareholders of Fraport AG 238.3 240.4 – 0.9 % Year-end closing price of the Fraport share (€) 43.94 38.00 15.6 % Earnings per share (basic) (€) 2.59 2.62 – 1.1 % Dividend per share (€) 1.25 1) 1.25 0.0 % Dividend yield on December 31 (%) 2.8 1) 3.3 – 0.5 PP 4) Operating cash flow 553.0 618.8 – 10.6 % Free cash flow – 162.4 – 350.1 – Capital expenditure 1,059.7 1,440.2 – 26.4 % Total assets 9,640.6 9,224.4 4.5 % Shareholders’ equity 2,945.5 2,850.8 3.3 % Shareholders’ equity without non-controlling interests and profit earmarked for distribution 2,794.3 2,706.0 3.3 % Group liquidity 2) 1,663.1 1,606.9 3.5 % Net financial debt 2) 2,934.5 2,647.0 10.9 % Capital employed 2) 5,728.8 5,353.0 7.0 % Fraport assets 5,152.3 4,447.3 15.9 % Return on revenue (%) 15.0 14.6 0.4 PP 4) Return on shareholders’ equity (%) 8.5 8.9 – 0.4 PP 4) EBITDA margin (%) 34.8 33.8 1.0 PP 4) EBIT margin (%) 20.4 20.9 – 0.5 PP 4) ROCE 2) (%) 8.7 9.3 – 0.6 PP 4) ROFRA (%) 9.7 11.2 – 1.5 PP 4) Gearing ratio 2) (%) 105.0 97.8 7.2 PP 4) Table 1 Traffic Figures 2012 2011 Change Passengers: Fraport Group 3) (million) 188.2 180.8 4.1 % thereof in Frankfurt (million) 57.5 56.4 1.9 % Cargo volume: Fraport Group 3) (thousand metric tons) 3,392.4 3,573.1 – 5.0 % thereof in Frankfurt (thousand metric tons) 2,066.4 2,215.2 – 6.7 % Aircraft movements: Fraport Group 3) (thousand) 1,676.5 1,636.9 2.4 % thereof in Frankfurt (thousand) 482.2 487.2 – 1.0 % Table 2 Employees 2012 2011 Change Average number of employees 20,963 20,595 1.8 % thereof in Germany 18,939 18,391 3.0 % Personnel expenses (€ million) 947.8 906.3 4.6 % 1) Proposed dividend (2012). Table 3 2) Liquidity adjusted for accrued interest income, previous year figures adjusted. 3) Without traffic figures for the airports in Riyadh and Jeddah (management contracts) as well as Dakar (management/consulting contract until end of July 2012. Fraport in addition holds a 60 % share in the new Dakar airport, which is currently under construction). Those figures were not available until the editorial deadline. 4) Percentage points. Fraport Segments Aviation Revenue split 2012 € million 2012 2011 Change € million 3 Revenue 823.4 774.9 6.3 % 2 1 Airport charges 673.6 Personnel expenses 278.9 263.9 5.7 % 2 Security services 98.3 EBITDA 199.9 187.8 6.4 % 1 3 Others 51.5 EBITDA margin 24.3 % 24.2 % 0.1 PP 1) EBIT 77.6 96.1 –19.3 % Average number of employees 6,298 6,088 3.4 % Table 4 Graphic 1 Retail & Real Estate Revenue split 2012 € million 2012 2011 Change € million 4 AVIATION Revenue 452.9 444.7 1.8 % 3 1 Retail 179.8 Personnel expenses 46.6 42.6 9.4 % 2 Real Estate 175.2 EBITDA 333.9 305.3 9.4 % 1 3 Parking 73.5 EBITDA margin 73.7 % 68.7 % 5.0 PP 1) 4 Others 24.4 EBIT 251.5 232.1 8.4 % Average number of employees 629 596 5.5 % 2 Table 5 Graphic 2 Ground Handling Revenue split 2012 Fraport at a Glance and Segments € million 2012 2011 Change € million AVIATION Revenue 649.3 655.5 – 0.9 % 2 1 Ground handling services 393.3 Personnel expenses 403.3 390.8 3.2 % 2 Infrastructure charges 256.0 EBITDA 43.6 54.5 – 20.0 % 1 3 Others 0.0 EBITDA margin 6.7 % 8.3 % – 1.6 PP 1) EBIT 4.7 20.3 – 76.8 % Average number of employees 8,924 8,899 0.3 % Table 6 Graphic 3 External Activities & Services Revenue split 2012 € million 2012 2011 Change € million AVIATION 4 Revenue 516.4 496.1 4.1 % 1 Lima 191.3 Personnel expenses 219.0 209.0 4.8 % 2 Antalya 150.5 EBITDA 273.3 254.7 7.3 % 1 3 Twin Star 63.3 EBITDA margin 52.9 % 51.3 % 1.6 PP 1) 3 4 Others 111.3 EBIT 164.2 148.1 10.9 % Average number of employees 5,112 5,012 2.0 % 2 1) Percentage points. Table 7 Graphic 4 Contents 1 To our Shareholders Letter of the CEO 4 The Fraport Executive Board 8 2 Corporate Governance Report of the Supervisory Board 12 Statement on Corporate Governance and Corporate Governance Report 18 3 Group Management Report Overview of the Situation of the Fraport Group 26 The Fraport Group 28 Business Development 2012 37 The Fraport Share and Investor Relations 50 Non-financial Performance Indicators 53 Significant Events after the Balance Sheet Date 56 Outlook Report 57 4 Consolidated Financial Statements Consolidated Income Statement 78 Consolidated Statement of Comprehensive Income 79 Consolidated Statement of Financial Position 80 Consolidated Statement of Cash Flows 81 Consolidated Statement of Changes in Equity 82 Consolidated Statement of Changes in Non-current Assets 84 Segment Reporting 86 Group Notes 88 5 Further Information Responsibility Statement 174 Auditor’s Report 175 7-year Overview 176 List of Graphics and Tables 178 Glossary 180 Imprint U5 Financial Calendar 2013 U5 Traffic Calendar 2013 U5 Fraport Annual Report 2012 To our Shareholders To “A plus for our passengers” “Added value for our customers” “An increase in terminal capacity in Frankfurt” “An increase in shopping opportunities” “A step into the future” or simply: Corporate Governance “The new Pier A-Plus.” Group Management Report On October 10, 2012, after a construction period of approximately 4 years, Fraport took Pier A-Plus at Frankfurt Airport into operation. The almost 800-meter long pier increases the annual terminal capacity of the airport by around 6 million passengers and offers additional terminal positions for 7 wide-body aircraft which can also be flexibly utilized for up to 11 smaller aircraft. With its newly created retail spaces, the pier will significantly contribute to increase the net retail revenue per passenger at Frankfurt Airport from currently € 3.32 in the direction of € 4 in fiscal year 2013. The construction costs of the pier came to Consolidated Financial Statements approximately € 700 million. Further Information 2 Fraport Annual Report 2012 Aviation With the inauguration of Pier A-Plus, the terminal capacity in Frankfurt increased from around 58 million passengers annually to approximately 64 million. Fraport is thus taking into account the expected growth in the aviation market. In order to ensure smooth processes, along with Pier A-Plus Fraport created space for more than 40 new security control lanes. In addition, fast lanes and an innovative route guidance guarantee fast boarding and transfer processes. As a part of the “Great to have you here!” passenger service initiative, children‘s play areas, a modern lighting concept and high-quality sanitary installations provide the highest level of travel comfort. Fraport Annual Report 2012 3 1 To our Shareholders Letter of the CEO 4 The Fraport Executive Board 8 our Shareholders To Corporate Governance Group Management Report Consolidated Financial Statements from left to right: Oya Telli (FraSec GmbH, Airport Security Assistant Section 5 Aviation Security Act) Claudia Uhe (Fraport AG, Head of Airport Security Management) Marc Heller (FraSec GmbH, Airport Security Assistant Section 5 Aviation Security Act) Further Information 4 Fraport Annual Report 2012 Letter of the CEO Dr. Stefan Schulte Chairman of the Executive Board Fraport AG Fraport Annual Report 2012 To our Shareholders / Letter of the CEO 5 To our Shareholders To On the occasion of the presentation of this year’s Annual Report, I would like to warmly welcome you to our new Pier A-Plus at Frankfurt Airport! This pier, which we opened in October, last year, sets new standards in product quality and functionality. This is already reflected by the highly positive reception of the Pier A-Plus by the airlines and our passengers, whether they are departing from, passing through or arriving in Frankfurt. With a capacity of approximately six million passengers, the pier can accommodate as many passengers annually as, for instance, Corporate Governance our entire affiliate airport in Hanover. It also has approximately 12,000 square meters of retail space, a space that is available exclusively for shopping and food and beverages, which is larger than a football field. This, on the one side, is doubling our previously available shop- ping space in Frankfurt on the airside and, on the other side, offers our passengers a world of shopping never available before, offering new brands and concepts. The pier is also a trend- setter from an ecological point of view, among others, due to its modern façade technology. This reduces the CO2 emissions of the building by some 40 percent compared to traditional construction methods and makes an important contribution to protecting the environment – whilst at the same time saving costs for us and your company.