HOCHTIEF AirPort Capital (HTAC)

-          Athens International Airport

-          Düsseldorf International Airport

-          Hamburg Airport

-          Sydney Airport

Athens International Airport

Athens International Airport (AIA) is Greece's major airport, located 33 kilometres from central Athens in a catchment area of more than six million residents. The airport was opened in 2001 and is operated under an Airport Development Agreement with the Greek State, which expires on 11 June 2026.

During its financial year ended 31 December 2010 AIA offered direct scheduled services to 113 destinations in 49 countries, serviced by 72 airlines.

Performance highlights 2011

In its financial year to 31 December 2010, AIA recorded total passenger movements of 15.4 million, a decrease of 5.0 percent compared to the previous corresponding period. The macroeconomic situation in Greece, combined with fleet and network consolidation of domestic carriers, is the main driver of this traffic outcome. Irregular natural events, such as the volcanic ash during April 2010 from Iceland and heavy snowfall during December 2010, also had an adverse impact on traffic. Domestic passenger movements for the year decreased by 9.4 percent while the international sector witnessed a more moderate decline of 2.4 percent compared to 2009. Despite the overall challenging environment, AIA added six new destinations to the airport's network and welcomed eight new airline partners.

Revenue and EBITDA for the year to 31 December 2010, including subsidies AIA was entitled to under the Greek State's Airport Development Fund (ADF), were €406.4 million and €278.4 million respectively, a decrease of 3.1 percent and an increase of 0.1 percent compared to the previous corresponding period. The drop in revenue largely reflects the decrease in passenger movements due to challenging market conditions. The solid EBITDA performance was driven by the favourable impact of cost savings that offset the negative variance on revenues. AIA successfully implemented cost reduction actions in all areas while still maintaining quality levels and service standards. These efforts fully absorbed the impact of inflation and incremental costs related to the implementation of a new EU 'Critical Parts' security regulation.

Overall, AIA has performed well in a difficult economic environment.

Performance outlook

The Greek economy is expected to remain in a state of recession throughout 2011 while the Greek Government implements structural changes to improve its fiscal position. The macroeconomic situation is expected to impact AIA's short-term outlook, particularly with regard to Greek residents' travel demand. However, growth in the rest of Europe is likely to have a positive effect on international traffic segments. In its annual report for the year ended 31 December 2010, AIA projected annual passenger throughput of 14.8 million for 2011, down from 15.4 million in 2010. The first six months of 2011 saw passenger traffic decrease by 7.2 percent compared to the previous corresponding period as economic conditions in Greece remain difficult and the rationalisation of the domestic carriers' networks continues. Despite the uncertain short-term outlook, AIA anticipates a gradual market recovery towards the second half of 2011, which should result in sustainable growth and healthy financial projections.

As part of its privatisation plans, the Greek Government has expressed its intention to explore the option of extending the concession agreement period with AIA, and also investigate sell-down options for the Government's shareholding in AIA. AIA is currently in negotiations with the Greek Government in respect of this opportunity.

Athens Airport
Financial and operational performance

* CAGR: Compound Annual Growth Rate
(1) Revenue and EBITDA include Airport Development Fund subsidy.
(2) EBITDA normalised for Olympic debt provision.
(3) 2009 Revenue and EBITDA normalised to exclude favourable one-off impact of Olympic Airlines debt arbitration.

For historical Athens Airport Annual Reports please click here.

Düsseldorf International Airport

Düsseldorf Airport is Germany's third busiest airport, after Frankfurt and Munich. The airport is located in the heart of the densely populated Rhine-Ruhr region, one of Europe's biggest economic areas, and serves approximately 18.0 million people. Düsseldorf Airport hosts over 72 airlines that fly to 184 destinations worldwide.

Performance highlights 2011

Passenger traffic for the year ended 31 December 2010 reached a record 19.0 million, a 6.7 percent increase against the previous corresponding period and outperforming the average passenger growth at German airports of 4.7 percent for 2010. Despite the severe winter weather and the volcanic ash cloud in April 2010 from Iceland, Düsseldorf Airport continues to grow.

Both domestic and international traffic saw an increase on the previous corresponding period of 3.7 percent and 7.7 percent respectively. This growth was driven by the strong recovery and solid growth of the German economy.

Total income for the year to 31 December 2010, excluding extraordinary income, was €350.6 million(1)(2), up 4.6 percent compared to the previous corresponding period. EBITDA on the same basis was €128.3 million(1)(2), up 7.5 percent on the previous corresponding period. Aviation revenues, which reflect the development of traffic increased 4.0 percent compared to the previous corresponding period, while non-aviation revenues increased 6.1 percent. This can be explained by the increased volume of air traffic leading to higher concessions and parking revenue. The increase in EBITDA against the previous corresponding period reflects increased operating revenues at the airport company level although partially offset due to an increase in energy consumption and energy costs resulting from the severe winter weather and the impact of the Renewable Energy Law (EEG). The EEG requires all consumers of electricity to subsidise the price of energy produced by renewable sources.

Performance outlook

Economic conditions continue to improve in Germany providing optimism for the near-term performance of the Düsseldorf Airport. In the first six months of 2011, Düsseldorf Airport reported an increase in passenger numbers of 10.8 percent compared to the previous corresponding period, with both domestic and especially international passenger numbers increasing.

Düsseldorf Airport
Financial and operational performance

* CAGR: Compound Annual Growth Rate
Note: The commentary above, including financial performance, reflect the airport company accounts rather than the consolidated accounts and therefore exclude some ancillary businesses. Company EBITDA presented is on average 7.6 percent below consolidated EBITDA for the period 2006 to 2010.
(1) Total income and EBITDA includes net investment income, which is comprised of investment income and income from profit transfer agreements, net of loss absorption expenses and other taxes. In 2010, net investment income amounted to approximately negative €7.5 million (2009: negative €1.8 million).
(2) 2008 total income and EBITDA normalised to exclude proceeds from sale of assets (€35.9 million), 2009 total income and EBITDA normalised to exclude income from write back of fire claim provisions after settlement with insurer (€20.3 million), 2010 total income and EBITDA normalised to exclude income from write back of fire claim provisions after settlement with insurer (€47.5 million). 2010 total expenses and EBITDA normalised to exclude one-off set up of provisions for remaining lost property obligations (€4.9 million) and to cover the risk of contaminated ground water (€5.1 million).

For historical Düsseldorf Airport Annual Reports please click here.

Hamburg Airport

Hamburg Airport is Germany's fifth busiest airport, servicing over 60 airlines that operate direct flights to 115 destinations. The airport is located nine kilometres northwest of Hamburg, Germany's second largest city with 1.7 million residents. The airport has the capacity to process up to 15.0 million passengers per annum.

Performance highlights 2011

Overall 2010 was a satisfying year for Hamburg Airport, benefiting from the strong recovery and solid growth of the German economy. The commercial success enjoyed by the airport was despite some extraordinary events occurring throughout the year including the volcanic ash cloud in April 2010 from Iceland and severe winter weather. Hamburg Airport recorded a total of 13.0 million passengers in its financial year to December 2010. This record performance, a 6.0 percent increase from the prior year, was well above the average growth rate of German airports of 4.7 percent.

Both domestic and international traffic saw an increase on the prior year of 4.2 percent and 7.4 percent respectively.

Total income for the year to 31 December 2010 was €255.0 million(1)(2)  an increase of 10.2 percent compared to the prior year. Aviation revenues, which account for 50.2 percent of total sales revenue, increased 5.4 percent to €124.8 million broadly reflecting the growth in passenger numbers. The acquisition of a major customer in January 2010 combined with the increased de-icing revenues due to the severe winter has led to a significant increase in ground handling revenues to €50.6 million, a 44.0 percent increase on 2009. Operating costs in 2010 were €175.7million(1)(2), an increase of 5.3 percent compared to the prior year. This increase reflects the growth in passenger numbers and the increased purchase of de-icing agents. EBITDA of €79.3million(1)(2), an increase of 22.9 percent compared to 2009, reflects the positive development of both aviation and non-aviation revenues that outweigh the increase in operating costs.

Performance outlook

Economic conditions continue to improve in Germany. Hamburg Airport forecasts moderate growth in passenger numbers for 2011. Traffic performance for the first six months of 2011 has been positive, with passenger numbers up 7.3 percent compared to the previous corresponding period. Both domestic and international traffic rose, by 4.6 percent and 9.5 percent respectively.

Hamburg Airport
Financial and operational performance

* CAGR: Compound Annual Growth Rate
Note: The commentary above, including financial performance, reflect the airport company accounts rather than the consolidated accounts and therefore exclude some ancillary businesses. Company EBITDA presented is on average 3.9 percent below consolidated EBITDA for the period 2006 to 2010.
(1) Total income and EBITDA include net investment income, which is comprised of income from participatory investments, and income from profit and loss transfer agreements, net of expenses arising from transfer of losses and other taxes. In 2010, net investment income amounted €2.7 million (2008: less than €0.1 million).
(2) 2010 total income and EBITDA normalised to exclude income from liquidation of security charges provision (€24.4 million), expenses related to a provision for noise protection measures (€15.3 million) and expenditure falling outside of 2010 (€0.8 million). 2009 total income and EBITDA normalised to exclude income from revaluation of existing properties (€3.8 million) and proceeds from sale of fire engines (€1.0 million).

For historical Hamburg Airport Annual Reports please click here.

Sydney Airport

Sydney Airport is the major gateway into and out of Australia, servicing about forty international and nine domestic and regional passenger airlines. The airport is located eight kilometres south of Sydney's central business district, and has high-quality road and rail links to the population and business centres of Sydney.

Performance highlights 2011

In its financial year to 31 December 2010, total passenger numbers at Sydney Airport increased by 7.8 percent to 35.6 million. Both international (excluding domestic on carriage) and domestic traffic (including domestic on carriage) saw solid growth of 6.9 percent and 8.2 percent respectively compared to the previous corresponding period.

Sydney Airport delivered pleasing financial performance with total revenues exhibiting strong growth while operating costs remained tightly controlled. Revenue for the year to December 2010 increased 10.5 percent to $943.0 million and EBITDA(1) increased 12.0 percent to $773.3 million. The financial performance reflects the strength of Sydney Airport's position as Australia's national gateway.

Total capital expenditure for the year was $136.4 million, reflecting the completion of two major projects including the redevelopment of the International Terminal and runway safety works. The International Terminal redevelopment has increased terminal capacity and passenger processing facilities, and has improved passenger experience.

In the financial year ended 31 December 2010, Sydney Airport successfully completed the refinancing of approximately $1.9 billion of senior debt facilities due to mature in 2011 and 2012. The airport now has no term debt maturing until October 2013.

During the year, Sydney Airport continued to welcome new airlines and services including Air Mauritius and Brindabella Airlines.

Performance outlook

In the first six months of 2011, Sydney Airport delivered passenger growth of 1.9 percent and EBITDA growth of 4.0 percent compared to the previous corresponding period. This solid performance was delivered despite the negative impact of a number of one-off disruptions during the first half of 2011 including severe weather conditions in Queensland, earthquakes in New Zealand and Japan and the Chilean ash cloud.

Sydney Airport is well-positioned to increase passenger traffic and develop new markets in the medium term with relatively strong Australasian economies and a solid pipeline of announced new routes and services providing a platform for continued growth.

Sydney Airport
Financial and operational performance

* CAGR: Compound Annual Growth Rate
(1) EBITDA reported excluding specific expenses (primarily restructuring and non-recurring legal expenses). In 2010, specific expenses amounted to approximately $0.3 million (2009: $0.8 million).
(2) Restated to reflect December year end.

For historical Sydney Airport Annual Reports please click here.

For more information on HOCHTIEF AirPort Capital (HTAC) please visit the HTAC website.