AnnuAl RepoRt 2010 Mastering challenges Group key figures Financial key Figures 2010 2009 ¹ Revenue € million 2,194.6 2,010.3 total revenue € million 2,284.0 2,095.6 eBItDA € million 710.6 569.7 eBIT € million 430.9 300.9 eBT € million 278.7 194.5 Group result € million 271.5 152.0 profit attributable to equity holders of Fraport AG € million 262.9 146.4 Year-end closing price of the Fraport Share in € 47.16 36.28 earnings per share (basic) in € 2.86 1.60 Dividend per share ² in € 1.25 1.15 Dividend yield ² in % 2.7 3.2 operating cash flow € million 567.5 426.5 Free cash flow € million − 291.1 − 711.4 Capital expenditure € million 1,033.9 1,438.3 total assets € million 9,170.5 8,865.2 Shareholders‘ equity € million 2,739.3 2,557.8 Shareholders‘ equity less non-controlling interests and profit earmarked for distribution € million 2,602.5 2,429.0 Group liquidity € million 2,384.0 2,631.3 net debt € million 2,024.4 1,614.5 Capital employed € million 4,626.9 4,043.5 Fraport assets € million 4,019.7 3,820.2 Return on revenue in % 12.7 9.7 Return on shareholders‘ equity in % 10.1 6.0 eBItDA margin in % 32.4 28.3 eBIt margin in % 19.6 15.0 RoCe in % 9.3 7.4 RoFRA in % 10.7 7.9 Gearing ratio in % 77.8 66.5 Traffic key Figures 2010 2009 passengers: Fraport Group ³ million 164.7 133.6 thereof in Frankfurt million 53.0 50.9 Cargo volume: Fraport Group ³ thousand metric tons 3,632.9 3,021.8 thereof in Frankfurt thousand metric tons 2,275.1 1,887.7 Aircraft movements: Fraport Group ³ thousand 1,520.5 1,283.5 thereof in Frankfurt thousand 464.4 463.1 employees 2010 2009 Average number of employees number 19,792 19,970 thereof in Frankfurt number 17,479 17,441 personnel expenses € million 880.4 866.9 1 Because of the first-time compulsory application of IFRIC 12: Accounting of service concession arrangements, the results of operations and net assets 2009 were adjusted. A reconciliation of Group values can be found in note 4 in the notes to the financial statements. ² Proposed dividend 2010 ³ Fraport Group including majority- and minority-owned airports and airports under mangement contracts. Since September 24, 2009 including the second international terminal in Antalya. Figures 2010 also include the new investment at pulkovo airport in St. petersburg. Figures 2010 and 2009 without the figures of Riyadh, Jeddah and Dakar, which were not available until the editorial deadline. Segment key figures segmenT sHare in group revenue and ebiTda 2010 in % external Activities & Services Aviation 20.0 % 31.6 % eBItDA 33.8 % 18.5 % eBItDA Ground Handling Retail & Real estate 30.0 % 18.4 % eBItDA 6.2 % 41.5 % eBItDA aviaTion reTail & real esTaTe 2009 change 2009 change € million 2010 adjusted change in % € million 2010 adjusted change in % Revenue 693.9 685.1 8.8 1.3 Revenue 403.1 362.4 40.7 11.2 eBItDA 131.6 117.3 14.3 12.2 eBItDA 294.7 282.9 11.8 4.2 eBIt 56.4 41.2 15.2 36.9 eBIt 227.9 225.0 2.9 1.3 RoFRA 4.2 % 3.4 % 0.8 pp – RoFRA 16.8 % 18.0 % − 1.2 pp – employees 6,074 6,337 − 263 − 4.2 employees 606 603 3 0.5 aviaTion reTail & real esTaTe the Aviation segment is responsible for traffic and terminal management as the Retail & Real estate segment mainly comprises the business activities well as the airport expansion and corporate safety and security of the Fraport around retailing, developing and marketing the real estate and managing the Group at the Frankfurt location. In 2010, the segment was able to benefit parking areas around Frankfurt Airport. With an eBItDA of € 294.7 million, from the positive developments in terms of flights and from adjustments to the segment again contributed the highest proportion (41.5 percent) of airport charges, once again contributing the largest part of Group revenues Group eBItDA in 2010. (31.6 percent), with a revenue of € 693.9 million. ground Handling exTernal acTiviTies & services 2009 change 2009 change € million 2010 adjusted change in % € million 2010 adjusted change in % Revenue 658.6 619.9 38.7 6.2 Revenue 439.0 342.9 96.1 28.0 eBItDA 44.1 14.1 30.0 > 100 eBItDA 240.2 155.4 84.8 54.6 eBIt 11.0 − 40.1 51.1 – eBIt 135.6 74.8 60.8 81.3 RoFRA 2.3 % − 8.7 % 11.0 pp – RoFRA 14.5 % 7.9 % 6.6 pp – employees 8,564 8,254 310 3.8 employees 4,548 4,776 − 228 − 4.8 ground Handling exTernal acTiviTies & services the Ground Handling segment encompasses all services relating to passen- the external Activities & Services segment comprises Group shareholdings gers, freight and aircraft. positive developments in flights – particularly with outside the Frankfurt location as well as further services in Frankfurt, particu- regard to freight and MTOW – were reflected in 2010 in a notable increase larly It and facility management. In 2010, with revenue of € 439.0 million, in the operating results. With an eBIt at € 11.0 million, the segment regained the segment boosted its share of the Fraport Group to 20.0 percent. In rela- a positive operating result after the crisis had affected it in 2009. tion to eBItDA, it was able to increase its proportion of Group eBItDA to over a third. Fraport Annual Report 2010 To our sHareHolders letter of the Ceo 1 the Fraport executive Board 4 Sustainable growth 6 Report of the Supervisory Board 32 Corporate Governance Report 38 group managemenT reporT the Fraport Group 49 Business development 2010 54 Results of operations 58 Segment reporting 60 Asset and financial situation 63 the Fraport Share and Investor Relations 66 non-financial performance indicators 69 opportunity and risk report 71 Significant events after the balance sheet date 82 outlook 82 consolidaTed Financial sTaTemenTs Consolidated income statement 88 Consolidated statement of comprehensive income 88 Consolidated statement of financial position 89 Consolidated statement of cash flows 90 Consolidated statement of changes in equity 91 Consolidated statement of changes in non-current assets 92 Segment reporting 94 Group notes 96 Further inFormaTion Responsibility statement 174 Auditor’s report 175 Seven year overview 176 Glossary 178 Calendar of events 2011 u5 traffic calendar 2011 u5 Imprint u5 to Our ShArEholderS _ Letter of the CEO 1 The fiscal year 2010 was one of the most eventful in the history of our Company. A snowy winter, many weather and strike-related flight cancellations and especially the conse- quences of the volcano eruption in April – all these events sent air traffic volumes onto a roll- ercoaster ride. But despite all this, we managed to generate a Group operating result before interest, taxes, depreciation and amortization (EBITDA) of € 710.6 million, the best EBITDA ever achieved by Fraport Group. More than € 100 million higher than in the previ- ous record year 2007. This positive development has several reasons. The economic recovery in general and the remarkable momentum of the German economy in particular not only greatly boosted passen- ger volumes at Frankfurt Airport rather airfreight also went up to record levels. The rise in airport fees and our high-margin retail and parking business also had a positive impact. External business also profited from the economic upturn. At our investment in Antalya, we were able to operate all three terminals all year-round for the first time in 2010 and served around 22.1 million passengers – more than ever before. The airport at Peru’s capital Lima con- tinued to develop into a transfer hub for South America and with 10.3 million passengers also achieved a new top figure. Our airports on the Bulgarian coast of the Black Sea in Varna and Burgas as well as our numerous minority investments also developed positively in the past fiscal year. At this point, I would like to draw your special attention to our investment in St. Petersburg Airport, which we started operating at the end of April 2010. Around 8.4 million passengers meant that figures there rose by almost 25 percent compared to the previous year. At Group level, the result was positively impacted by the release of a provision in the amount of around € 80 million in connection with the tax audit for the years 1999 to 2002. The Group result came to € 271.9 million and, like the EBITDA, exceeded all previous years’ figures. 2 FraporT _ Annual report 2010 _ Dr. Stefan Schulte, 50 years olD, CEO Dr. Stefan Schulte was appointed Chairman of the Executive Board of Fraport AG in September 2009. his previous positions included among other things CFO and Executive Director Traffic and Terminal Management, Airport Expansion. The picture shows Dr. Schulte in the shell of Pier A-Plus, which is scheduled to start operations in fiscal year 2012. to Our ShArEholderS _ Letter of the CEO 3 At this point, I would like to especially thank our employees who made this positive business development possible with their great commitment – during the strong winter and the closure of airspace in the course of the ash cloud as well as when handling the steep rises in air traffic volume, especially during summer and autumn last year. Our thanks also go to you, dear Shareholders, for expressing your trust in us, the Executive Board members.