Flughafen Zuerich Uns/Adr

Good morning, ladies and gentlemen. Welcome to the presentation of Zurich Airport's half-year results for 2026. My name is Lukas Froese 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 guidance for 2026 as well as an update on our long-term targets and goals. At the end of the presentation, we will address your questions. Please already submit your questions during the presentation. This helps us organize them more efficiently. Stefan Weber will moderate the Q&A session. Let me begin by highlighting our milestone for the first half of 2026. The first half of the year was characterized by continued strong demand in Zürich and the positive development of our business activities in Brazil. At Zürich Airport, passenger volumes increased by 6% to 15.8 million passengers despite the challenging geopolitical environment and the temporary weakness in traffic to and from the Middle East. Operations remained stable and reliable throughout peak travel periods and despite ongoing construction work on several sites. On the commercial side, higher passenger volumes supported airside revenues while landside activities continued to be affected by construction works associated with the development of the landside passenger zones. The real estate business continued its positive development, supported by higher rental income as well as energy and utility revenues. Internationally, we achieved an important milestone with the opening of Neuda International Airport on the 15th of June. While operations commenced successfully, the current geopolitical environment in the region has resulted in a more gradual ramp-up than originally anticipated. Nevertheless, our long-term view remains unchanged for the Indian market and for the development of Noida in particular. In Latin America, our Brazilian airports delivered another strong performance with passenger growth of over 10% compared to the first half of 2025. Furthermore, we achieved important progress regarding the regulatory framework at the Zurich site. Political backing for Zurich Airport's existing operating hours was strengthened through decisions at both cantonal and federal level, We also made progress on several strategic infrastructure projects for example with the start of construction works for the new general aviation infrastructure in the western area of the airport. Based on our purpose Business segments, core values, and the defined strategic targets dimensions, we further refined our 2040 targets for the international business and the group. At the same time, we continued to invest in innovation and sustainability through the rollout of new passenger technologies and progress in the implementation of our climate program 2040. Let's take a closer look at some key figures. The first half of 2026 delivered the strongest healthy result in the company's history. Revenues increased by 5% to 674 million Swiss franc, while EBDA rose to 374 million Swiss franc. Net profit increased slightly to 164 million Swiss franc. Group CapEx amounted to 269 million Swiss franc for the first half of 2026. Please note that capex in the prior year period included the acquisition of the Redis and Blue building in the amount of 155 million CHF. Let's review our main business segments, beginning with the aviation business. The passenger volume in Zürich is up 6% for the first half of 2026 compared to the prior year period. During spring, several airlines temporarily reduced services to the Middle East following the escalation of geopolitical tensions in the region. Passenger numbers to and from the Middle East therefore declined by around 30% compared to the first half of 2025. However, this impact was more than compensated by continued strong demand from the Swiss local market, as well as additional growth in Europe and Asia Pacific. As a result, the impact of the Middle East conflict was limited overall. The airlines showing the strongest growth rates were Edelweiss and Austrian Airlines, with Condor, EasyJet and Welling also contributing strongly. The seat-load factor increased by 2 percentage points to 79% and flight movements also climbed by 4%. Freight volumes decreased slightly by 1% compared to the prior year period, primarily driven by a decline in imports. Despite the high volume of traffic, flight operations were managed in a stable and reliable manner, thanks to the close cooperation between all partner companies. The route network was expanded in the first half of 2026. Three new airlines, Norwegian Kuwait Airways and China Eastern Airlines, are now flying to Zürich. At the same time, existing routes were expanded and new destinations were added to the route network. According to the current 2026 summertime flight timetable, 67 airlines are offering flights from Zürich to a total of 212 destinations. Our high service level was recognized externally with Zurich Airport having received the Airport Service Quality Award as the best airport in Europe in the 25 to 40 million passenger category. Zurich Airport continued to make targeted investments in the digitalization and automation of passenger processes in the first half of the year. This can be seen, for example, in the modernization of the security checks which was advanced with the introduction of new CT scanners. The introduction of the European entry-exit system was completed together with the Zurich Cantonal Police. Zurich Airport has met the infrastructural and operational requirements and continuously supports the authorities in implementing the new border clearance processes. The collection of biometric data of non-EU EFTA citizens sometimes led to long-awaiting times at border control. In the following slides, we'll give you an overview of our commercial and real estate business. Commercial turnover developed positively overall, despite the ongoing construction works on the land side. Airside turnover increased by 9%, driven by higher passenger volumes and the reopening of luxury stores. On the land side, turnover declined by 3% because of construction works and temporary closures required for the development of the land side passenger zones. Combined, air side and land side turnover increased by almost 4% and exceeded 300 million Swiss franc. Let me provide you with an update on the two most important commercial projects currently underway at Zurich Airport. The first is the development of the landside passenger zones. This project will significantly enhance the retail and food beverage offerings. It will add approximately 6,000 square meters of new commercial space on the landside. Construction is already well advanced and first openings are expected from autumn 2027 onwards in a phased approach. The second major project is the replacement of Dock A. While the project will require the temporary closure of commercial space within the air site center from 2029 onwards, relocation measures are being pursued in order to mitigate the impact wherever possible. Upon completion, the project will provide substantial additional lounges and commercial space and significantly strengthen the commercial attractiveness of Zürich Airport. The real estate business remained a stable and important contributor to group earnings. Rental income continued to grow, while energy and utility cost allocation also increased. Several strategic infrastructure projects made good progress. For example, the request for planning permission was submitted for the new dock A. Construction also started for the new general aviation infrastructure, while the first phase of the sky metro modernization was also successfully completed. Last but not least, let's turn our attention to our international business. Let's take a closer look at the passenger numbers at our airports in Latin America first. Passenger traffic grew by 10% across our majority-owned airports in Latin America compared to the first half of 2025. In Brazil, Florianopolis increased passenger numbers by around 10% with Dorian Marco A by approximately 12% and Natal by approximately 19%. At our airport in Iquique in Chile, passenger volumes declined by 9% compared to the same period last year. Demand was impacted by macroeconomic factors, notably adverse foreign exchange movements and higher oil prices. Let me share some more highlights from our majority-owned airports in Latin America. Overall, our Brazilian airports continued to perform very strongly, combining solid traffic growth with continued investments into quality, commercial development and sustainability. In Florianopolis, work has started on the expansion of commercial space in the international terminal area. A new fully covered premium parking facility opened earlier this year and construction of additional lounges is underway. The airport also was named Brazil's best airport for the sixth consecutive year. Construction of an additional lounge is also underway in Vitoria, which was recognized as Brazil's second-best airport for the fourth consecutive year. In Mark A, the inauguration of the new solar power plant marks an important sustainability milestone, making the airport Brazil's first energy self-sufficient airport powered by clean energy. Natal achieved the second highest passenger growth among Brazilian airports during the first half of the year. International traffic more than doubled compared to last year. In addition, the redesign of the commercial concept was completed. In Chile, the concession for Antofagasta Airport ended in February 2026 and operations were successfully handed over to the new concessionaire. Zurich Airport remains active in Chile through its participation in Iquique Airport, where the construction of the northern apron restarted in June. A few days ago, Zurich Airport has entered into an agreement to divest its indirectly held 12.75% minority stake in Belo Horizonte International Airport in Brazil. The buyer is Azure, an international airport operator headquartered in Mexico. The sale of the shareholding is expected to result in a non-recurring net gain of approximately 17 million Swiss francs before taxes at group level upon closing. The transaction remains subject to customary closing conditions including the required regulatory approvals and is expected to be completed within the next few months. Zuerich Airport initially joined the project as a minority investor in 2013 as part of Brazil's third round of airport privatization. The divestment is fully aligned with our international strategy to focus on majority shareholdings with operational responsibility. I would also like to provide an update on Neuda International Airport. On June 15th, the airport successfully started commercial operations establishing a new aviation gateway to the national capital region of Delhi and North India. The operational launch follows a construction period of approximately four years and represents a major milestone for the international business of Zuerich Airport. The airport started operation smoothly with Indigo and Akasa Air currently serving 17 domestic destinations. Looking ahead, the route network will continue to expand, and international services are expected to be added. However, the Indian aviation market is more affected by the conflict in the Middle East than other markets. Airspace closures, elevated fuel costs, and capacity adjustments have resulted in a more volatile operating environment for Indian airlines, and a slower ramp-up in Noida than originally anticipated. The short-term outlook remains subject to increased uncertainties. Nevertheless, our assessment of the mid- to long-term opportunities remains unchanged. Noida serves one of the fastest-growing aviation markets globally, benefits from a strong catchment area in the national capital region, and represents a strategically important growth platform for Zürich Airport over the coming decades. The opening of Neuda marks a key milestone in the development of our international business. At the same time, we continue to see attractive opportunities to further develop and strengthen our portfolio. We have therefore defined a clear vision how we want to develop our international business until 2040. Our ambition is today to develop the international business into a financially self-sufficient business unit that confronts the capital requirements of new airport concession from its own resources. We will maintain a disciplined approach to capital allocation, focusing on investments that generate excess returns compared to Zurich. Our focus is on majority holdings where we can assume operational responsibility and actively shape the development of the airport. At the same time, we aim to build a balanced portfolio across selected focus markets. Wherever we operate, our ambition is to be among the best airports in terms of quality, customer satisfaction, and sustainability. By 2040, the international business should make a significant contribution to Group's revenue and EBITDA, as well as to attractive dividend payments of Zürich Airport. I'm now handing over to Kevin.

Thank you, Lukas. Good morning, 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. Our revenues increased by 5% compared to the previous half year. This was driven by continued passenger growth at Zuerich Airport and the positive development of our international business in Brazil. Aviation revenue increased broadly in line with passenger volume growth, rising by 5% from 327 million to 345 million Swiss francs. Non-aviation revenue increased by 5% in the first half of the year to 328 million Swiss francs. Adjusted for concession accounting, this reflects a growth of 4% to 324 million CHF. EBITDA rose by 4% year-on-year to 374 million CHF. The EBITDA margin remains largely unchanged at 56%. The consolidated result for the first half of the year grew by 1% to 164 million Swiss francs. So let's take a closer look at the non-aviation figures. Despite the reduced landside retail offering due to construction activity, total commercial and parking revenue increased to 134 million Swiss francs. Higher passenger volumes and higher revenues from food and beverage contributed to this positive development. Within real estate, both revenue from rental and leasing agreements as well as energy and utility cost allocations increased. This resulted in an overall real estate revenue of 100 million Swiss francs, an increase of 2% compared to last year. Revenue from services, amounted to 27 million Swiss Francs in the reporting period, primarily due to higher traffic volumes at Zuerich Airport. The international business benefited from the continued positive momentum in Brazil, both in terms of passenger volumes and non-aviation activities. Total revenue from the international business rose from 58 to 67 million Swiss Francs. Factoring out the income statement neutral revenue from construction projects, revenue in international business grew by 11% or 6 million Swiss francs. Operating expenses increased by 6% to 299 million Swiss francs, partly due to the commissioning of Neuda International Airport. Adjusted for concession accounting, OPEX were 5% up compared to the first half of the previous year. Personnel expenses grew by 5% in the reporting period to 138 million Swiss francs, mainly due to the opening of Neue International Airport, some volume-based adjustments in Zürich and salary adjustments in line with inflation. With staffing requirements at Zurich Airport largely fulfilled, we expect growth in personal expenses in Zurich to noticeably slow down in the second half of 2026. Costs for police and security rose by 2% to 67 million Swiss francs, growing at a slower rate than passenger volumes. Energy and waste costs remained broadly stable and stood at 19 million Swiss francs. In summary, we continue to manage our OPEX development effectively, balancing investments in future growth with a disciplined approach to cost management. I will now outline some key financial ratios. Net financial debt saw a slight increase due to the dividend payments in the second quarter of 2026. The leverage ratio now stands at approximately 2.1 times. Our return on investor capital remains broadly unchanged at nearly 8%. Primarily due to changes in working capital, operating cash flow increased to 324 million Swiss francs. Free cash flow for the first half of the year amounted to 56 million Swiss francs. The increase should be assessed in the context of the acquisition of the Red is in Blue building during the corresponding period of the previous year. This next slide shows the largest projects we have been working on in the first half of 2026. Zurich Airport invested a total of 269 million Swiss francs, of which 202 million Swiss francs were invested at the Zurich site. Please note that the prior capex at the Zurich site included the purchase of the Radisson Blue building in the amount of 155 million Swiss francs. The single biggest project at the Zürich side was the development of the main airport complex, including the New Dock A, tower and base. Other key projects included the development of the Landseye passenger zones and the refurbishment and expansion of the baggage sorting system. Our most significant international project in the first half of the year was the completion and commissioning of Neuda International Airport. So let's proceed to the outlook. Before looking at our guidance for 26, I would like to highlight that the current geopolitical environment still remains a source of uncertainty. Given the situation in the Middle East, there is limited visibility regarding how events may evolve over the coming months. We currently expect passenger growth in Zürich of approximately 3%. A slowdown in growth is anticipated compared to the first half of the year, which is mainly due to the stronger comparison base. A new charge period will start at Zürich Airport on the 1st of October 26. Despite the total reduction in airport charges of around 10%, Aviation revenue is expected to remain stable in the current year due to the expected passenger growth. At the Zürich side, commercial revenue is likely to move sideways due to the ongoing closure of commercial spaces as part of the project to develop the landside passenger zones. Real estate revenue is expected to rise slightly. A further increase in revenue is expected for the international business, with the opening of Neuda contributing to this. Overall non-aviation revenue is expected to be higher. The opening of Neuda will lead to an increase in operating costs. In contrast, only a very moderate increase in costs is expected at the Zürich site. All in all, Zurich Airport expects earning before interest, taxes, depreciation and amortization for 2026 to be roughly on the same level as the previous year. Consolidated profit is expected to be lower than in 2025. Besides the reduction in airport charges in Zurich, depreciation and interest expenses will have an impact on the income statement with the opening of Neuda. Investments at the Zürich site are expected to amount to around 400 million Swiss Francs in 2026. Investments of an estimated 100 million Swiss Francs are expected at subsidiaries abroad, with the completion of construction of the new airport in Neuda accounting for the majority of this. Looking beyond 26, there are several factors that will influence the Group's financial development. First, the full-year impact of the new airport charges in Zürich will be reflected in 27. Second, Neue International Airport has now started commercial operations and will lead to additional depreciation and financing expenses of approximately 80 million Swiss francs on an annual basis. Furthermore, given the current geopolitical environment, a slower ramp-up in Neuda than originally anticipated is expected. Taken together, these factors may place greater pressure on the group's profitability also in 2027. Nevertheless, we remain confident that the strong fundamentals of our Zuerich business and the mid to long-term potential of Noida will continue to support sustainable value creation. Beyond this near-term outlook, we would like to conclude today's presentation by outlining our long-term strategic path. In 2024, We refined our guiding strategic principles based on our purpose, the business segments, and our core values. This process allowed us to reaffirm our business model and to define five key target dimensions with corresponding performance indicators. With this sharpened strategic focus, we were able to enhance our company's governance and set clear mid-term targets that are partly reflected within the variable compensation of the management board and on management level. Our focus and success are firmly rooted in long-term value creation. Accordingly, we have developed an outlook for Zuerich Airport Group that sets out our desired development and strategic orientation through to 2040. These ambitions are aligned with our five key target dimensions. While our core financial targets, including a consistently strong EBITDA margin, are expected to remain at high level, we have further refined our long-term goals. By 2040, we aim to generate revenues of more than 3 billion Swiss francs, corresponding to a compound annual growth rate of over 5%. This growth is expected to be driven primarily by our international business, supported by the continued development of our existing portfolio, as well as further additions as we have outlined earlier in the presentation. Going forward, the growth rates in Zürich are expected to continue on a solid trajectory, in line with the historical trends. A group-wide return on investor capital of more than 8%, which is higher than today's target of more than 7.5%, underlines our continued focus on creating sustainable value for our shareholders. We remain committed to our vision of ranking among the leading airports across all our concessions in terms of quality and customer experience. Finally, sustainability remains a fundamental pillar of our long-term strategy. Our ambition is to achieve net zero greenhouse gas emissions in scope one and two without a setting by 2040 at the latest. With this, I'm handing back to Lukas.

Thank you, Kevin. We have now reached the end of our result presentation, and I will begin with the Q&A session. I will now hand over to Stefan who will moderate the Q&A. Stefan, I assume we have some questions.