Economic Development of Fraport AG

Results of Operations

For the explanatory notes on changes in the results of operations, please refer to the presentation of the Aviation, Retail & Real Estate and Ground Handling segments, which essentially covers the business activities of Fraport AG (see “Results of Operations by Segment”).

Compared to the previous year, revenue of Fraport AG increased by €237.3 million to a total of €2,550.4 million. This increase was attributable to almost all types of revenue. In particular, higher revenue from airport charges (+€111.1 million) based on prices and traffic volumes as well as higher revenue from infrastructure charges (+€41.9 million) and earnings from aviation security charges (+€22.4 million) contributed to this growth. In contrast, revenue from ground services decreased by €3.9 million compared to the previous year, as these services were partially transferred to Fraport Ground Services GmbH from the 2024 fiscal year.

As in previous years, Fraport AG earned a major portion of its revenue (more than one third) in the past fiscal year with one customer at the Frankfurt site.

Other operating income amounted to €80.3 million, up €23.1 million on the previous year. This increase is mainly attributable to income from the disposal of the shareholding in VVSS Limited Liability Company amounting to €45.0 million. With the sale of the shares, Fraport ended its involvement in Pulkovo Airport. In the previous year, this income was mainly due to currency translation, which amounted to €35.8 million.

Total revenue rose by €267.9 million to €2,675.5 million (+11.1%).

Personnel expenses increased in the 2024 fiscal year by €50.1 million to €639.6 million. This increase is mainly due to the collective bargaining agreement of the current fiscal year. It was offset by the slightly lower average number of employees compared to the previous year.

Non-staff costs, which include cost of materials and other operating expenses, increased by €125.4 million to €1,294.1 million. This increase is due in particular to expenses for external services in the amount of €96.8 million, which were higher due to traffic and price factors.

EBITDA of Fraport AG increased by €92.4 million to €741.8 million in the fiscal year. Higher depreciation and amortization (+€24.5 million), in particular due to the unscheduled depreciation and amortization of airport infrastructure in Frankfurt that is no longer recoverable, resulted in EBIT of €383.9 million, compared with €316.0 million in the previous year.

The financial result amounted to €75.7 million, €16.7 million below the previous year’s figure of €92.4 million. EBT reached €459.6 million, compared to €408.4 million in the previous year.

Taxes on income amounted to €116.1 million (previous year: €79.3 million), resulting in net income of €343.5 million, compared to €329.1 million in the previous year.

After transferring €171.7 million to other revenue reserves, profit earmarked for distribution amounts to €171.8 million. The Executive Board and Supervisory Board will propose to the 2025 Annual General Meeting to transfer the profit earmarked for distribution to other revenue reserves as well.

Asset and Financial Position

Asset and Capital Structure

At the end of the 2024 fiscal year, the total assets of Fraport AG amounted to €14,631.2 million, up €597.9 million year on year (+4.3%).

Non-current assets rose by €762.5 million to €12,043.1 million. This is mainly due to the increase of €898.3 million in property, plant, and equipment, in particular in connection with construction measures as part of the Expansion South project and the renovation of existing infrastructure at the Frankfurt site. Financial assets decreased by €140.2 million in total, in particular due to additions to securities in non-current assets in the amount of €254.6 million and disposals of securities from non-current assets in the amount of €381.5 million.

Current assets amounted to €2,301.1 million, which was €99.6 million lower than in the previous year. This is mainly due to the €177.9 million reduction in the portfolio of short-term securities and the €71.2 million increase in cash on hand and bank balances.

Shareholders’ equity as at December 31, 2024 amounted to €3,548.6 million, and rose by €343.5 million as a result of the net income in the current fiscal year.

Liabilities increased compared to the previous year by €284.6 million to €10,565.5 million, mainly due to the financing measures undertaken during the fiscal year to secure liquidity. Fraport AG issued a corporate bond in the amount of €650 million with a coupon of 4.250% p.a. in the 2024 fiscal year. The bond has a term of eight years. The issue price was 99.635%. Bonds amounting to €650 million were meanwhile repaid as planned in the 2024 fiscal year. In the 2024 fiscal year, as in previous years, extensive financing measures were taken to secure liquidity in the long term. In addition to the scheduled repayment of short-, medium-, and long-term loans as well as reduced call and time deposits of €736.1 million, further long-term liabilities to banks in the amount of €918.5 million were incurred. For terms of six to 13 years, the interest rates on long-term liabilities ranged from 3.23% to 4.41%.

Liquidity as at December 31, 2024, was €2,998.9 million, down from €3,285.6 million in the previous year.

The main reason for this was an increase of €373.9 million in cash flow used in investing activities without investments in cash deposits and securities, in particular due to increased expenditure on expansion and extension measures. Overall, cash flow used in investing activities without investments in cash deposits and securities amounted to €1,259.9 million (previous year: €886.0 million).

The increase in cash flow from operating activities (operating cash flow) by €151.0 million to a total of €653.8 million had a positive impact on liquidity (previous year: €502.8 million). This increase is mainly due to the traffic-related improvement in the operating result.

Gross debt increased in the reporting year to €10,010.5 million (previous year: €9,711.3 million). This led to a considerable increase of €586 million in net financial debt to €7,011.7 million (previous year: €6,425.7 million).

As at the 2024 balance sheet date, the financial debt maturity profile of Fraport AG exhibited the following repayment structure:

As at the 2024 balance sheet date, there was a mix of financing consisting of bilateral loans (53.1%), promissory note loans (25.7%), and bonds (21.2%). The floating rate portion of the gross debt of Fraport AG increased to nearly 7%, with the fixed portion coming to around 93%.

Comparison with the Forecasted Development

The net income and liquidity of Fraport AG developed in line with the forecast for the 2024 fiscal year.