Flughafen Zuerich Uns/Adr

Ladies and gentlemen, welcome to the presentation of Zurich Airport's full year result for 2025. My name is Lukas Brosi and I will be hosting this presentation together with Kevin Fleck, our CFO. I would like to remind you that the presentation is also available on our website. Today's agenda is as follows. I will begin with a brief business update. Following that, Kevin will provide insights into our financial performance and share our outlook for 2026. At the end of the presentation, we will address your questions. Please submit your questions already during the presentation. This helps us organize them more efficiently. Stefan Weber will moderate the Q&A session. Let me begin by highlighting our milestones for the full year 2025. The financial year 2025 was characterized by continued high levels of traffic, stable operations and significant investments in infrastructure, technology and sustainability. In 2025, Zürich Airport reached a new record with 32.6 million passengers. Under challenging conditions with ongoing construction and during periods of heavy traffic, we were able to ensure reliable and high quality operations. Zurich Airport has concluded negotiations on flight operation charges with the airport users. The new charge period is expected to commence in October 2026. I will provide more details on this later in the presentation. On the commercial business, airside turnover increased, supported by passenger growth and the opening of new luxury stores. Landside turnover was lower due to construction works. The international business continued to grow and benefited in particular from a positive development in Latin America. In India, we have received the Aerodrome license for Noida on the 6th of March. The airport is now ready for operations. Progress was made in key development projects such as the preparatory construction of the new dock A or the expansion of the landside passenger and commercial area. Furthermore, we have also prematurely extended the contract with our long-standing duty-free partner Avolta until 2035. Also worth to mention from a financing perspective is the recent upgrade of our Standard & Poor's credit rating from A plus to AA minus with outlook stable. Lastly, we have been active in driving innovation projects and we are making progress on our ESG goals according to our targets and plans. Let's take a closer look at some key figures. The 2025 result exceeded our initial guidance, mainly driven by stronger than expected traffic development, the later opening of Neuda Airport and the more favourable cost discipline. Our results reached new record levels in terms of revenue, EBITDA and consolidated result. Our revenues grew to 1.36 billion Swiss francs with the consolidated result increase to 346 million Swiss francs. Our capex has been substantially higher as well, also because of the acquisition of the Radisson Hotel building in Zürich. In total, we invested approximately 760 million Swiss francs with around 503 million Swiss francs allocated to the Zürich site. Let's review our main business segments, beginning with the aviation business. Some highlights from the traffic development in Zürich were as follows. In 2025, 32.6 million passengers traveled via Zürich Airport, representing a 4% growth over the previous year. The local market performed particularly well, growing by around 6% year on year. The most important market with a passenger share of 75% grew by 4%. In Europe, demand was especially high for southern destinations in Spain, Italy, Turkey and Portugal. Edelweiss and EasyJet let passenger grow through added capacity. The intercontinental market saw a year-on-year passenger growth of 6% and accounted for a quarter of the passenger volume with the biggest markets North America and Asia Pacific showing grow rates of 4% and 6% respectively. At 80%, the average seed load factor remained at a high level. Flight movements were also positive and climbed by 3%. Around 1% more freight was handled in 2025 compared to 2024. Flight operations in 2025 were characterized by persistently high volumes and stable quality during busy periods such as Easter and summer and autumn holidays. On certain peak days, the number of travelers exceeded the 120,000 mark for the first time. With the summer and subsequent winter flight schedule, the routes offered were further expanded, thereby reinforcing the international connectivity and competitiveness of Zürich Airport. In the reporting year, Zürich Airport was connected directly to 220 destinations in 75 countries served by 70 airlines. As a relatively small country and economy, Switzerland and Zürich have exceptionally good direct connections with the world. While several new destinations were launched in Europe, two new long-haul routes to Seattle and Halifax were launched by Edelweiss. In addition, capacities were further expanded on various established routes. In Europe, the busiest destinations were London, Berlin and Istanbul. New York, Dubai and Bangkok continue to be the busiest destinations at the intercontinental level. Our high service level was also recognized externally, with Zuerich Airport once again having received the Airport Service Quality Award as the best airport in Europe, marking the ninth consecutive time to receive this distinction. In February 2026, Zürich Airport has concluded negotiations on flight operations charges with the airport users for the next regulatory period. The new charge period is expected to commence in October 2026. Airport charges for users of Zürich Airport will be reduced by approximately 10%. Thanks to the positive passenger traffic development and Zurich Airport's disciplined approach to cost and investments, cost coverage in the regulated sector can be maintained despite the reduction in charges. The reasonable return on the capital invested, also known as the WAC, will be increased from 5.0 to 5.5%. With the new rollover mechanism, any surplus or shortfall from a charge period will be considered in the future when setting charges for the subsequent charge period. This ensures sustainable coverage of capital cost for Zuerich Airport. The agreement provides planning certainty for all parties involved and represents a strong partnership-based outcome for airport users at Zuerich Airport. In the following slides, I'll give you an overview of our commercial and real estate business. Let's start with the commercial business. In addition to the growing passenger numbers, new luxury openings such as a Cartier boutique, the expansion of Bulgari, as well as the exclusive beauty formats of Chanel and Dior led to a positive development in the airside center with increasing commercial turnover. On landside, commercial turnover decreased due to construction work as part of the project to develop the landside passenger zone. In March 2026, Zurich Airport has prematurely extended the duty-free contract with its long-standing partner, Avolta. The existing contract will be extended from 2029 by seven years, running until the end of 2035, matching the expected completion of the construction work for the new Dock A. The real estate business again proved itself to be a solid segment and an important pillar of our business performance in 2025. revenues from rental and leasing agreements increased, while there were lower energy and utility cost allocations, mainly because of lower electricity costs. An important strategic step in 2025 was the acquisition of the Redis and Blue building. With this acquisition, Zuerich Airport is now the owner of all land and buildings within the central airport perimeter. The Circle continued to strengthen its position as a successful business hub with the signing of several new contracts in the office and food and beverage segment. Last but not least, let's turn our attention to our international business. Let's take a look at the passenger numbers at our airports in Latin America. Passenger volumes at Florianopolis Airport increased by around 6% year-on-year, reaching a new high with a total of 5.2 million passengers. This record is primarily due to a strong growth in the international segment. Passenger volumes at the Vitoria and Marquee airports recorded a significant year-on-year increase of 13%. The main reason for this strong grow was the lifting of the previous restrictions on flight between Vitoria and Santos Dumont Airport in Rio de Janeiro. Passenger numbers for Natal Airport in the northeastern Brazil were mostly trading in line with last year. At our airport in Chile, Antofagasta showed passenger growth of 7%, while passenger numbers in Iquique declined due to weaker domestic demand and capacity reductions. Let me share some highlights from our majority-owned airports in Latin America. Our concessions in Latin America have seen a very positive year 2025 with our Brazilian airports showing record figures for revenue, EBTA and net profit as well. Our airports in Latin America are among the best and most advanced in the country in terms of quality, passenger satisfaction and sustainability. In October 2025, Florianopolis reached a historic milestone. For the first time, over one million international passengers were recorded in a single year. Florianopolis is now the third largest airport in terms of international passengers after Sao Paulo and Rio de Janeiro. Vitoria and MacA have achieved airport carbon accreditation level 4, placing them on the same sustainability level as Florianopolis, which has already achieved level 4 at the beginning of the year. In MacA, recently a new solar power plant was inaugurated and the construction of hangars have started, which should be completed in 2026. Natal has seen a successful fundamental redesign of its commercial concept with various new tenants. Also in Natal, we are constructing a new solar plant supporting our sustainability goals on group level. In Iquique, construction of the northern apron started in June but was delayed due to works on the electrical substation. Works are planned to restart in March 2026 with an estimated six months completion period. And in Antofagasta, the concession ended in February 2026. The handbag progressed smoothly and as planned. Finally, we would like to share the latest update on Neuda with you. To start with, we are happy to report that Neuda International Airport is ready for operations, which represents a major milestone for the project and a significant step for our international business. All major terminal construction works have been completed and the operational trials have been successfully concluded. We have also received the aerodrome license from the Indian regulator on the 6th of March, which paves the way for the start of operations at Noida. Based on today's assumption, we expect it will now take approximately 30 to 45 days before commercial operations can commence. After opening, we assume a ramp-up phase of around 3 to 4 months. For the calendar year 2026, we expect up to 4 million passengers. At the EBTA level, we currently expect a neutral contribution for 2026. Due to depreciation and interest expenses, NOIDA's net profit contribution will likely be negative. With that, I hand over to Kevin.

Thank you, Lukas. Good afternoon, ladies and gentlemen. Welcome and thank you for joining us. I will now provide an overview of the company's financial performance. Let me start with a financial overview. Sustained growth in traffic volumes in Zürich and across our foreign concessions led to new records in terms of revenue, EBITDA and consolidated results. Total aviation revenue increased slightly faster than passenger volumes, rising to 709 million Swiss francs. This is primarily because of the stronger growth in local passengers who pay higher fees than transfer passengers. Non-aviation revenue declined by 0.2% to 652 million Swiss francs. Adjusted for concession accounting, This reflects an increase of 15 million Swiss francs or plus 2% compared to 2024. EBITDA increased year-on-year by 4% to 762 million Swiss francs, setting a new record high while maintaining a strong EBITDA margin of 56%. The consolidated result? rose by 6% to 346 million Swiss francs. This includes an impairment of around 6 million Swiss francs for our airport in Iquique, Chile. So let's take a closer look at the non-aviation figures. Total commercial and parking revenue increased only slightly by 0.2% compared to the previous year. This is due to the reduced landside retail offering as a result of the ongoing construction work. Real estate revenues saw a marginal increase of 0.2% to 198 million CHF. While revenue from rental and leasing agreements increased, energy and utility cost allocations declined because of lower energy costs. Revenue from services grew by 7% to 52 million Swiss francs, primarily driven by increased traffic. The international business experienced ongoing growth, largely driven by positive developments at Brazilian airports, where passenger numbers rose significantly and non-aviation results remained solid. Overall, international revenues rose by 10% to 114 million CHF, excluding concession accounting. Last year was a turning point regarding our cost development. Excluding concession accounting, we managed to slow down OPEX growth from 9% in the previous year to 4% in 2025 reaching total operating expenses of 588 million CHF. Personnel expenses saw a 10% increase, mainly due to the insourcing of services for passengers with reduced mobility, which is offset by an equivalent reduction in other operating expenses. The increase was also driven by other volume-related effects and inflation adjustments, as well as measures to increase employer attractiveness. When compared with the higher passenger volumes, costs for police and security disproportionately went up by only 3%, amounting to 133 million CHF. Energy and waste costs declined by 19% to 36 million Swiss francs thanks to lower electricity costs. In summary, we have effectively managed cost growth, resulting in a significant improvement, supporting a positive outlook. I will now outline some key financial ratios. Net financial debt saw a slight increase, resulting in a leverage ratio of around 1.8 times. Higher invested capital influenced our return on invested capital, which declined slightly to 7.8%. Operating cash flow increased to 688 million Swiss francs, reflecting the strong consolidated result and changes in working capital. Higher investments, including the purchase of the red and blue building, impacted our free cash flow generation, which stood at minus 28 million Swiss francs. The next slide shows the largest projects we have been working on in 2025. Zurich Airport invested a total of 760 million Swiss francs, of which 503 million Swiss francs were invested at the Zurich site. This includes the purchase of the Radisson Blue building for 155 million Swiss francs. The single biggest project at the Zürich site was the development of the main airport complex, including the new Dock A. Other significant projects were the development of the landside passenger area, the refurbishment and expansion of the baggage sorting system, and the development of the freight infrastructure. Our most significant international project in 2025 was the development of Neuda Airport. So let's proceed to the outlook. Given the current geopolitical situation in the Middle East, it is challenging to give guidance for the ongoing financial year, especially since no one knows how the situation will evolve. In Zürich, passenger growth is projected to range from 2 to 3% in 2026, which corresponds to a passenger volume of over 33 million passengers. We had a strong start to the year with encouraging passenger numbers, which helps us to manage the increased uncertainties. As mentioned by Lucas, a new charge period with lower airport charges will come into effect in October 2026 in Zürich. Taking into account the forecasted passenger growth and lower airport charges from October, aviation revenue is expected to remain stable. At the Zürich site, commercial revenue is likely to remain stable as well compared to the last year due to the ongoing closure of commercial spaces as part of the project to develop the landside passenger zone. Real estate revenue is expected to rise slightly, mainly due to inflation adjustments. Revenue from international business will see an increase again, primarily driven by the opening of the new airport in Neuda. In total, non-aviation revenue is expected to be higher overall. In 2026 financial year, the opening of Neuda will lead to an increase in operating costs, while only a very moderate increase in costs is expected at the Zürich site. In summary, we expect EBITDA in 2026 to be roughly the same as the previous year, However, consolidated profit is likely to be lower. With the opening of Neue Airport, depreciation and interest expenses will impact the income statement. It is important to note that we expect another strong financial performance from our main asset, Zürich Airport, in 2026. The projected decrease in the Group's net profit is attributable to Neue Airport. Investments at the Zürich side are expected to be between 350 and 400 million Swiss francs in 2026. Subsidiaries abroad will invest an estimated 100 million Swiss francs with the completion of construction of the new airport in Neuda accounting for the majority. With this, I'm handing back to you, Lukas.

Thank you, Kevin. Lastly, I would also like to inform you about changes at our Board of Directors and the Management Board. After 12 years, Guglielmo Brentel will step down from the Board of Directors of Zürich Airport with effect from April 2026. The company would like to thank Guglielmo Brentel for his great commitment. Stefan Paul will be proposed as new member of the board of directors to the annual general meeting in April 2026. He is chief executive officer of Kühne and Nagel International. His experience and expertise will be an ideal addition to our board of directors. Furthermore, the management board of Zurich Airport will be reduced from seven to six members. This change is part of a realignment of responsibilities to enable the company to respond more effectively to future challenges and further strengthen the dialogue with our key stakeholders. Manuela Staub, the current chief people and communication officer, will leave the company at the end of July 2026 as a result of this change. The Board of Directors and the Management Board would like to thank Manuela for her great commitment and valuable contribution to the development of Zürich Airport during the last few years. We have now reached the end of our result presentation and will begin the Q&A sessions. I will now hand over to Stefan Weber who will moderate the sessions. Stefan.