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Hub to the Future Annual Report 2004 Vision We develop mobility professionally and make it an experience for our customers. As an airport group, we are the most capable industry player in all segments. We consider airports to be activity centers and intermodal hubs. We link transport networks systematically. We stand for efficient management of complex processes and innovations, maintain our position by providing competitive integrated services and respond flexibly to our customers‘ requests. Safety is our top priority. By carrying out our vision, we create sustained value in the interests of our shareholders, our employees and the regions in which we operate. 4 Foreword by the Chairman of the Executive Board 6 The Executive Board of Fraport AG 8 Aviation 18 Retail & Properties 28 Ground Handling 38 External Activities 48 Investor Relations 51 Corporate Governance 53 Financial Report Key Group figures of Fraport AG 2001 2002 2003 2004 Revenues and earnings (€ million) Revenues .................................................................. 1,580.6 ..........1,803.6 ..........1,834.3 .......... 1,998.1 Total revenues .......................................................... 1,692.2 ..........1,851.8 ..........1,887.7 .......... 2,043.7 EBITDA ........................................................................ 532.0 .............260.3 .............461.8 ............. 516.2 EBIT ............................................................................ 322.7 ...............46.2 .............203.7 ............. 281.1 Result from ordinary operations ................................... 170.2 .............–35.1 .............215.1 ............. 265.9 Group profit/loss for the year ....................................... 101.1 ...........–120.8 .............115.2 ............. 136.4 Key figures from the balance sheet and cash flow statement (€ million) Shareholders’ equity ................................................. 1,964.3 ..........1,803.4 ..........1,920.1 .......... 2,030.8 Equity ratio (%) ............................................................. 52.5 ...............49.8 ...............51.7 ............... 53.8 Total assets ............................................................... 3,672.0 ..........3,620.7 ..........3,636.4 .......... 3,650.2 Gearing (%) ................................................................... 46.4 ...............18.0 ...............12.1 ................–0.3 Capital employed ..................................................... 2,829.2 ..........2,140.9 ..........2,119.2 .......... 1,969.3 Fraport assets ............................................................ 2,612.1 ..........2,800.4 ..........2,841.5 .......... 2,812.8 Operating cash flow .................................................... 364.8 .............395.6 .............447.2 ............. 519.4 Capital expenditures .................................................... 883.4 .............290.5 .............256.9 ............. 279.4 Key profitability ratios (%) Return on revenues ....................................................... 10.3 ...............–2.2 ..............11.4 ............... 13.0 EBITDA margin ............................................................. 33.7 ...............14.4 ..............25.2 ............... 25.8 EBIT margin .................................................................. 20.4 .................2.6 ..............11.1 ............... 14.1 ROCE ............................................................................ 11.4 .................2.2 ................9.6 ............... 14.3 ROFRA .......................................................................... 12.4 .................1.6 ................7.2 ............... 10.0 The Fraport share (€) Year-end price ............................................................. 26.50 .............17.00 .............22.80 ............. 31.39 Earnings per share (basic) .............................................. 1.28 .............–1.34 ...............1.28 ............... 1.51 Dividend per share ........................................................ 0.40 ....................– ...............0.44 .............. 0.751 Frankfurt Airport traffic figures Passengers (million) ....................................................... 48.6 ...............48.5 ...............48.4 ............... 51.1 Cargo (thousand tons) .............................................. 1,613.3 ..........1,631.5 ..........1,650.6 .......... 1,839.1 Aircraft movements (thousand) .................................... 456.5 .............458.4 .............458.9 ............. 477.5 MTOWs (thousand tons) ........................................ 25,564.5 ........24,926.9 ........25,398.9 ........ 27,229.6 Seat load factor (%) ....................................................... 68.2 ...............69.8 ...............69.4 ............... 71.0 Passengers per passenger flight ....................................... 116 ................115 ................115 ................ 117 Employees Average number of employees ................................. 15,526 ...........21,395 ...........23,353 ........... 24,182 See page 151/152 for explanatory notes about the key figures. 1 Proposed for distribution 2 Segments of Fraport Group Segments of Fraport Group Intermodality a success factor Aviation The Aviation segment is responsible for the flight and terminal operations as well as for airport and aviation security. We generate revenues primarily by airport fees for using the infrastructure of Frankfurt Airport. Linking the different air, rail and road carriers is one of our suc- cess factors. Airport as real estate Retail & The Retail & Properties segment covers renting of shops and offices, parking facility management and marketing Properties of properties and CargoCity South. A steady increase in the shop, office and storage space available has made these operations the most profitable area of the company’s business. The current modernization and expansion measures are strengthening our portfolio and are preparing us to tackle future assignments. Trademark: a professional approach Ground We provide all the ground handling services – from aircraft handling to passenger and cargo services – in Handling Frankfurt. The large international airlines appreciate our performance as a reliable partner that maintains consis- tent quality standards and punctuality rates. Every second passenger is taking a connecting flight in Frankfurt and we move the largest cargo volume in Europe. The chal- lenge: cost awareness in spite of complexity. Involvement in growing markets External All the investments that are not confined to the Frankfurt location are combined in this segment. We focus on Activities growing international markets. The increasing privatiza- tion of airports and the demand for airport manage- ment, ground handling and aviation security services are creating opportunities for us that we are exploiting systematically. We are the European market leader for aviation security. 3 Key figures (€ million) Aviation 2003 2004 Revenues ........................................................ 551.7 ........................ 626.2 EBITDA ........................................................... 115.6 ........................ 144.8 EBIT .................................................................. 59.1 .......................... 90.8 Fraport assets .................................................. 906.7 ........................ 896.3 ROFRA (%) ......................................................... 6.5 .......................... 10.1 Employees ...................................................... 3,368 ........................ 3,311 Retail & Properties 2003 2004 Revenues ........................................................ 369.0 ........................ 373.9 EBITDA ........................................................... 302.3 ........................ 285.8 EBIT ................................................................ 186.4 ........................ 174.5 Fraport assets ............................................... 1,263.3 ..................... 1,246.2 ROFRA (%) ....................................................... 14.8 .......................... 14.0 Employees ...................................................... 3,038 ........................ 3,050 Ground Handling 2003 2004 Revenues ........................................................ 570.7 ........................ 608.1 EBITDA ............................................................. 23.6 .......................... 53.3 EBIT .................................................................. – 0.4 .......................... 31.1 Fraport assets .................................................. 380.0 ........................ 371.6 ROFRA (%) ....................................................... – 0.1 ............................ 8.4 Employees ...................................................... 7,120 ........................ 7,042 External Activities 2003 2004 Revenues ........................................................ 342.9 ........................ 389.9 EBITDA ............................................................. 20.3 .......................... 32.3 EBIT ................................................................– 41.4 ........................– 15.3 Fraport assets .................................................. 337.1 ........................ 345.0 ROFRA (%) ....................................................... – 3.2 ..........................– 0.4 Employees .....................................................