Combined Management Report

Group's Results of Operations

Revenue

At €3,194.4 million, revenue in the Fraport Group in the 2022 fiscal year was above the previous year’s figure by €1,051.1 million. Adjusted for contract revenue from construction and expansion services based on the application of IFRIC 12, revenue increased by €961.7 million to €2,863.3 million. The increase at the Frankfurt site was mainly due to higher revenue from airport charges (+€256.7 million) caused by an increase in traffic volume. Higher revenue from infrastructure charges (+€96.0 million) and retail services (+€81.5 million), as well as higher ground services (+€70.0 million) contributed to the increase in revenue. By contrast, revenue from security services fell by €20.4 million to €173.7 million despite additional revenue from new business at Hamburg Airport. This was due to a one-off effect in the previous year’s period of €57.8 million from the agreement with the Federal Police in connection with billed aviation security services in recent years. Outside of Frankfurt, contributions to adjusted revenue growth came, in particular, from Fraport Greece (+€208.0 million) and the Group company Lima (+€123.0 million) based on the positive traffic development.

Other operating income

At €139.3 million, other operating income was below the level in the same period of the previous year of €354.6 million
(-€215.3 million). In the reporting period, other operating income was impacted positively by the disposal of shares in the Group companies Xi’an (€53.7 million), which is accounted for using the equity method, and D-Port Logistik GmbH (€18.6 million). In addition, Fraport Greece and the two Brazilian Group companies reached a further agreement regarding compensation for the effects of the coronavirus pandemic. The compensation of Fraport Greece relates to the operating losses incurred in the first half of 2021. This resulted in a positive effect of €23.6 million (previous year: €92.8 million). The realized refund claims of the Brazilian Group companies amounted to €18.5 million (previous year: €26.5 million). In contrast, the previous year’s figure mainly included the compensation payment from the German Federal Government and the State of Hesse in equal measure to cover the holding costs incurred in the first lockdown in 2020 (€159.8 million) and the waiver of short-term minimum lease payments at the Group company Fraport USA (€35.2 million).

Expenses

Personnel expenses in the Group increased in fiscal year 2022 by €152.4 million to €1,036.7 million. The increase resulted primarily at the beginning of the year from a very low utilization of short-time work schedules compared with the prior-year period. In addition, demand for personnel grew over the course of the year due to the positive traffic development in the Group in general and in ground services in Frankfurt in particular. Non-staff costs (cost of materials and other operating expenses) were €1,307.1 million (+€412.5 million). Adjusted for expenses related to the application of IFRIC 12, non-staff expenses were €976.0 million (+€323.1 million). The increase is due in particular to higher variable concession charges at the international Group companies due to the recovery in traffic (+€105.8 million) and higher expenses for external staff (+€47.5 million), as well as external services purchased (+€37.5 million). In addition, expenses for utility services increased by €41.0 million (+50.7%) compared to the previous year given the sharp rise in energy prices.

EBITDA and EBIT

Group EBITDA was €272.8 million higher than in the previous year at €1,029.8 million thanks to the positive operating development. Greater depreciation and amortization of €465.3 million (+€22.0 million) resulted in Group EBIT of €564.5 million (+€250.8 million).

Financial result

The financial result in the reporting period amounted to –€330.6 million (previous year: –€197.3 million). This decrease compared to the same period in the previous year is mainly due to the other financial result of –€147.1 million (previous year: €8.8 million). This was negatively affected by the full write-off of a loan made to Thalita Trading Ltd. in the amount of €163.3 million in connection with the activities at St. Petersburg Airport. The reason for the full write-off was a reassessment of cash flows as at June 30, 2022 based on the current sanctions in place in connection with the war in Ukraine. Together with the write-off of €9.7 million recognized in fiscal year 2020, the carrying amount of the loan receivable in the Fraport Group has been written off in full.

Interest expenses in the Group increased (+€44.8 million), due to the extensive financing measures at Fraport AG in fiscal year 2021. The increase also resulted from refinancing in Greece and the associated one-off effects from the repayment of the original financing in the amount of €19.3 million. Furthermore, interest expenses from the compounding of concession liabilities increased by €13.2 million compared to the previous year, mainly as a result of inflation development in Peru.

Interest income increased by €9.2 million in the reporting period, mainly as a result of higher interest rates from the discounting of provisions. In the previous year, interest income was positively influenced by €17.5 million due to the one-off effect of the agreement with the German Federal Police.

The result from companies accounted for using the equity method increased by €58.2 million to €77.0 million, in particular due to the positive operating development of the Group company in Antalya (+€43.1 million). Moreover, the increase compared to the previous year is attributable to the write-up of the Group company Xi’an (+€20.0 million) resulting from the disposal of shares.

EBT, Group result, and EPS

EBT in the reporting period amounted to €233.9 million (previous year: €116.4 million). With a consolidated tax rate of 28.8%, income tax expense amounted to €67.3 million (previous year: €24.6 million). The Group result was €166.6 million (previous year: €91.8 million). This resulted in basic earnings per share of €1.43 (previous year: €0.90).

International business activities accounted for 53.4% of the Group result. Germany accounted for 46.6%.

Development of the Group's financial figures

€ million

2022

2021

Change

Change in %

Revenue

3,194.4

2,143.3

+1,051.1

+49.0

Revenue adjusted for IFRIC 12

2,863.3

1,901.6

+961.7

+50.6

Personnel expenses

1,036.7

884.3

+152.4

+17.2

Cost of materials

1,101.6

750.7

+350.9

+46.7

EBITDA

1,029.8

757.0

+272.8

+36.0

Depreciation and amortization

465.3

443.3

+22.0

+5.0

EBIT

564.5

313.7

+250.8

+79.9

Group result

166.6

91.8

+74.8

+81.5

Number of employees as of December 31

19,211

17,781

+1,430

+8.0

Average number of employees

18,850

18,419

+431

+2.3

Comparison with the forecasted development

€ million

2022

Adjustments during the year
[Interim Report Q2/6M 2022]
Interim Release Q3/9M 2022

Forecast 2021

2021

Change

Change in %

Revenue

3,194.4

[slightly above €3.0 billion]
upper end of the forecast given in the Q2/6M Interim Report

approximately €3.0 billion

2,143.3

+1,051.1

+49.0

EBITDA

1,029.8

[around €850 million to around €970 million]
upper end of the forecast given in the Q2/6M Interim Report

approximately €760 million to approximately €880 million

757.0

+272.8

+36.0

EBIT

564.5

[around €400 million to around €520 million]
upper end of the forecast given in the Q2/6M Interim Report

between €320 million and around €440 million

313.7

+250.8

+79.9

Group result

166.6

[around €0 million to around €100 million]
upper end of the forecast given in the Q2/6M Interim Report

between around €50 million and around €150 million

91.8

+74.8

+81.5

Dividend per share in €

0.00

No distribution

No distribution

0.00

0.0

As a result of the quicker recovery in traffic following the coronavirus pandemic, the financial figures developed better than originally forecasted in the 2021 Annual Report. In addition, the sale of shares in the Group companies Xi'an and D-Port Logistik GmbH, which are accounted for using the equity method, had an earnings-increasing effect. Compensation for the effects of the coronavirus pandemic at Fraport Greece and the Brazilian Group companies also had a positive impact.