Frankfurt Airport behind the Scenes

214 Pages·2014·3.57 MB·English

Annual Report 2013
Frankfurt Airport
behind the Scenes
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Fraport Group
At a Glance
The Fraport Group operates internationally at 13 airports and belongs to the world’s leading airport operators. The Group’s main
site is Frankfurt Airport, one of the world’s major air traffic hubs. Divided into four segments, Fraport had a workforce of more than
20,000 employees and generated revenue of € 2.56 billion in 2013. Group EBITDA stood at € 880.2 million, and the Group result was
€ 235.7 million. Listed since 2001, the parent company of the Fraport Group, Fraport AG, is headquartered in Frankfurt am Main.
Financial performance indicators
€ million 2013 2012 Change in %

Revenue 2,561.4 2,442.0 4.9
EBITDA 880.2 848.7 3.7
EBIT 528.1 496.0 6.5
EBT 340.7 364.1 – 6.4
Group result 235.7 251.5 – 6.3
Profit attributable to shareholders of Fraport AG 221.0 238.2 – 7.2
Earnings per share (basic) (€) 2.40 2.59 – 7.3
Year-end closing price of the Fraport share (€) 54.39 43.94 23.8
Dividend per share 1) (€) 1.25 1.25 0.0
Operating cash flow 574.8 553.0 3.9
Free cash flow 73.1 –162.4 –
Total assets 9,523.4 9,640.6 –1.2
Shareholders’ equity 3,098.8 2,948.2 5.1
Group liquidity 1,486.3 1,663.1 –10.6
Net financial debt 2,975.4 2,934.5 1.4
Return on revenue (%) 13.3 14.9 –
Return on shareholders’ equity (%) 7.5 8.5 –
EBITDA margin (%) 34.4 34.8 –
EBIT margin (%) 20.6 20.3 –
ROCE (%) 8.9 8.7 –
ROFRA (%) 9.5 9.6 –
Gearing ratio (%) 101.3 104.9 –
      Table 1
Non-financial performance indicators
  2013 2012 Change in %

Global satisfaction (Frankfurt) (%) 80 80 –
Punctuality rate (Frankfurt) (%) 82.3 80.3 –
Baggage connectivity (Frankfurt) (%) 98.4 98.2 –
Equipment availability (Frankfurt) (%) 94.8 95.0 –
Employee satisfaction 2) 3.02 – –
Total number of work accidents 1,346 1,445 – 6.9
      Table 2
Employees
  2013 2012 Change in %

Average number of employees 20,947 20,963 – 0.1
1) Proposed dividend (2013).       Table 3
2) No employee satisfaction survey took place for the 2012 fiscal year.
Fraport Segments
Aviation
Aviation
The Aviation segment includes airside and terminal management
€ million 2013 2012 Change
as well as corporate safety and security at the Frankfurt site. The in %
growth in traffic and the increase in airport charges boosted        
revenue by 2.6 % to € 845.2 million in the previous fiscal year. Revenue 845.2 823.4 2.6
With a workforce of 6,194 employees the segment achieved EBITDA 205.4 201.9 1.7
EBITDA of € 205.4 million. EBITDA margin 24.3 % 24.5 % –
EBIT 88.1 79.6 10.7
ROFRA 4.0 % 3.9 % –
Average number of employees 6,194 6,298 –1.7
      Table 4
Retail & Real Estate
Retail & Real Estate
The Retail & Real Estate segment consists of retailing activities,
€ million 2013 2012 Change
parking facility and real estate management at Frankfurt Airport. in %
In the fiscal year 2013 Pier A-Plus in particular, which was inau-        
gurated in October 2012, boosted revenue and EBITDA. With Revenue 469.0 452.9 3.6
a workforce of 648 employees, the segment generated revenue EBITDA 350.7 335.2 4.6
of € 469.0 million and EBITDA of € 350.7 million. EBITDA margin 74.8 % 74.0 % – nts
EBIT 267.9 252.8 6.0 me
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ROFRA 15.0 % 15.5 % – Se
Average number of employees 648 629 3.0 ort
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      Table 5 Fr
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Ground Handling Ground Handling port
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The core business of the Ground Handling segment comprises Fr
€ million 2013 2012 Change
all services dealing with passengers, aircraft and cargo. With a in %
workforce of 9,017 employees, the most staff-intensive seg-        
ment at the Frankfurt site achieved revenue growth of 1.1 % to Revenue 656.2 649.3 1.1
€ 656.2 million in the previous fiscal year, thanks to the growth EBITDA 38.2 37.8 1.1
in traffic and the increase in infrastructure charges. EBITDA for EBITDA margin 5.8 % 5.8 % –
the segment was € 38.2 million. EBIT – 2.3 –1.1 –
ROFRA – 0.4 % – 0.2 % –
Average number of employees 9,017 8,924 1.0
      Table 6
External Activities & Services
External Activities & Services
The External Activities & Services segment comprises the Group
€ million 2013 2012 Change
companies outside the Frankfurt site and auxiliary services in in %
Frankfurt, including IT and facility management in particular.        
The growth in foreign companies was the main factor behind an Revenue 591.0 516.4 14.4
increase in revenue of 14.4 %. With revenue of € 591.0 million, EBITDA 285.9 273.8 4.4
the segment posted EBITDA of € 285.9 million in fiscal year 2013. EBITDA margin 48.4 % 53.0 % –
EBIT 174.4 164.7 5.9
ROFRA 14.0 % 15.7 % –
Average number of employees 5,088 5,112 – 0.5
      Table 7
About this Report
The present Annual Report enables Fraport to render account for the fiscal year 2013. The data and comments concerning the asset,
financial and earnings position have been prepared in compliance with the accounting and disclosure standards to be applied to
the fiscal year 2013. The disclosures contained in the Business Outlook also take the accounting standards to be applied as from
January 1, 2014 into consideration and can be found from page 84 onwards of the Report.
To increase the currency of the Report, Fraport has taken into consideration relevant disclosures concerning events that occurred
up to the Responsibility Statement and Auditor’s Report by PricewaterhouseCoopers AG on March 4, 2014.
The Annual Report is published in German and English.
1 To our Shareholders 3 Consolidated Financial Statements
Letter of the CEO 4 Consolidated Income Statement 92
The Fraport Executive Board 8 Consolidated Statement of Comprehensive Income 93
Report of the Supervisory Board 10 Consolidated Statement of Financial Position 94
Statement on Corporate Governance and Consolidated Statement of Cash Flows 95
Corporate Governance Report 16 Consolidated Statement of Changes in Equity 96
Consolidated Statement of Changes in 98
non-current Assets
2 Segment Reporting 100
Group Management Report
Group Notes 102
Notes to the Consolidation and Accounting Policies 102
Overview of Business Development 24 Notes to the Consolidated Income Statement 120
Situation of the Group 26 Notes to the Consolidated Financial Position 128
Operating Activities 26 Notes to the Segment Reporting 154
Structure 26 Notes to the Consolidated Statement of Cash Flows 155
Strategy 29 Other Disclosures 156
Control 32
Legal Disclosures 35
Remuneration Report 36 4 Further Information
Economic Report 44
General Statement of the Executive Board 44
Economic and industry-specific Conditions 44 Responsibility Statement 194
Significant Events 45 Auditor’s Report 195
Business Development 46 Seven-Year Overview 196
Results of Operations 48 List of Graphics and Tables 198
Segments 50 Glossary 200
Asset and Financial Position 53 Financial Calendar 2014 C5
Value Management 59 Traffic Calendar 2014 C5
Non-financial Performance Indicators 60 Imprint C5
Employees 61
Research and Development 63
Share and Investor Relations 63
Significant Events after the Balance Sheet Date 67
Outlook Report 67
General Statement of the Executive Board 67
Risk and Opportunities Report 67
Business Outlook 84
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Aviation
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Retail & Real Estate
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Frankfurt Airport behind the Scenes agag
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Group Group
With 58 million passengers and more than two million metric tons of air freight and air mail handled, Frankfurt Airport is
one of the largest passenger and cargo airports in the world. While passengers only experience the airport processes that
are visible to them, such as check-in or security control, Fraport and its business partners provide a much broader range of
services “behind the scenes” to ensure a seamless traveling experience. Some of these processes are presented to you on nts
the section dividers of this Annual Report. me
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You can also get an idea of further Fraport processes on site during a tour of the airport and experience the fascinating world al
of the airport live. nci
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Ground Handling or
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External Activities & Services
Page 192
2 Fraport Annual Report 2013 To our Shareholders
Fraport Annual Report 2013 To our Shareholders 33
Aviation
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In the previous fiscal year about 473,000 aircraft took off and landed at Frankfurt. This equated to about 1,300 Group Group
daily aircraft movements. Seamless airport operations would be impossible without the use of about 17,000 airfield
lights that mark the ways between the take-off and landing runway system and the terminal. To ensure that the
system is always ready for use, Fraport maintains the airfield lights on an as-required and cyclical basis. In addition
to a computer-controlled system, which reports defective halogen or LED lamps, Fraport employees check that nts
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the airfield lights are functioning by covering the take-off and landing runway system on a regular basis. e
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2 Fraport Annual Report 2013 To our Shareholders
...with uninterrupted energy supply
Fraport monitors the uninterrupted energy supply of Frankfurt Airport on a centralized basis and ensures this
by means of a redundantly configured power supply system. Even if the power supply system fails, Fraport can
guarantee an energy supply to the take-off and landing runway system by using several oversized diesel motors.
Direct refueling of the motors, whose tanks hold about 40,000 liters of diesel, ensures that airport operations can
be constantly maintained in an emergency. Fraport requires about 600 million kilowatt hours annually to operate
the Frankfurt site.
Fraport Annual Report 2013 To our Shareholders 33
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4 Fraport Annual Report 2013 To our Shareholders / Letter of the CEO
Dr Stefan Schulte
Chairman of the Executive Board Fraport AG