Viennaairport - IR

Flughafen Wien AG: positive development of revenue and earnings in the first half of 2012

Forecast for expected net profit in 2012 raised to over € 60 million

Reassignment of first free areas in Check-in 3 to be completed shortly

The Flughafen Wien Group recorded a significant improvement in all relevant indicators during the first half of 2012. Revenue rose by 4.7% to € 293.6 million, EBITDA by 11.0% to € 109.3 million and EBIT by 4.0% to € 68.7 million. Net profit increased 14.3% to € 49.5 million. The EBITDA margin improved from 35.1% to 37.2%, and the EBIT margin remained stable at 23.4% versus 23.6% in the comparable prior year period.

“The first half-year was marked by the consequent implementation of our corporate strategy. The steps taken in earlier quarters to cut costs and improve productivity as well as measures to strengthen corporate structures had a positive effect. The company‘s earning power and financial position were significantly strengthened, and we expect a slight reduction in net debt this year“, indicated Günther Ofner, member of the Management Board (CFO) of Flughafen Wien AG. “It is, however, clear that results for the second six months will be negatively influenced by the start of operations in Check-in 3 through increased depreciation and amortisation, higher interest expense and additional operating expenses. In spite of this, our estimates for an increase in revenue and EBITDA in 2012 are still well protected. We have therefore raised our estimate for net profit from € 55 million to at least € 60 million“, added the airport CFO.

The improvement in these financial indicators was supported, above all, by the sound development of the core business: “We recorded strong growth in passenger traffic during the first half of 2012 with a plus of 7.9%. That had a positive effect on revenue and earnings. From the current point of view, we will therefore meet our annual target for an increase of 4% to 5% in the number of passengers this year ‑ despite the forecasted slower growth in the second six months“, explained Julian Jäger, member of the Management Board (COO) of Flughafen Wien AG. The start of operations in Check-in 3 was successful from a technical standpoint, indicated Jäger, “and more than 2.7 million passengers have now used the terminal. Negotiations and tenders are currently in progress for the previously unopened shopping areas that were returned to us, and we expect to sign the first agreements in the near future.“

Plus 7.9% in passengers during H1/2012

Vienna Airport handled a total of 10,422,861 passengers in the first six months of 2012, which represents an increase of 7.9% over the comparable prior year period. The number of transfer passengers was 17.6% higher than the first half of the previous year. The number of passengers departing to destinations in Eastern Europe rose by 19.6% between January and June 2012, while traffic to the Middle East grew by 10.8%. The number of passengers travelling to the Far East declined 1.2%, primarily due to the termination of flights to Mumbai.

Inprovement by Austrian Airlines

The Austrian Airlines Group, the largest and most important customer of Flughafen Wien, handled 9.5% more passengers at Vienna Airport during the first six months of 2012. This growth increased the airline’s share of total passenger traffic from 49.0% in the first half of the previous year to 49.7%. The so-called low-cost carriers recorded an increase of 2.6%, and their share of total passenger traffic declined from 22.6% in the comparable prior year period to 21.5%. Flight movements decreased 0.3% to a total of 120,455. Seat occupancy rose from 66.2% in the prior year to 69.7% for the reporting period. Maximum take-off weight (MTOW) totalled 4,014,586 tonnes, which is 1.3% lower than the comparable prior year period. Cargo volume fell by 8.0% to 131,061 tonnes.

Revenue and earnings development in the segments

Revenue in the Airport Segment rose by 5.6% over the comparable prior year period to € 146.6 million in the first half of 2012. This growth resulted, above all, from the sound development of traffic and passenger volumes. EBIT fell by 7.8% to € 39.3 million due to operating costs, depreciation and amortisation connected with the start of operations in Check-in 3. The Handling Segment reported a 0.2% decline in revenue to € 79.5 million, but an improvement of 192.8% in EBIT to € 9.3 million. The Retail & Properties Segment recorded an increase of 10.6% in revenue to € 59.6 million and EBIT of € 31.6 million (+5.2%). Revenue in the Other Segments remained nearly constant at € 7.7 million (EBIT: € 1.3 million).

Reallocation of first free areas in Check-in 3 expected soon

Significant outstanding payments amounting to millions of Euros, the failure to complete leased space and the insufficient stocking of shops led to the termination of leases with an airport tenant during the reporting period. Bankruptcy charges were also filed and have since been approved by the court. All areas, with the exception of six locations, have already been returned to Flughafen Wien. Discussions with interested parties and preparations for tenders are currently in progress, and the first leases are expected to be signed shortly. The goal is to conclude agreements with all new operators by the end of this year.

Check-in 3: Optimisation proceeding at full speed

The terminal extension successfully started full operations on 5 June 2012, and all technical systems are functioning nearly problem-free. The Check-in 3 offers numerous improvements over the old infrastructure: for example, the central security controls have nearly eliminated the waiting time for passengers. Innovative furniture concepts with 1,000 seats in the pier areas of the new terminal and interactive family lounges provide a relaxed atmosphere during the waiting time up to departure. With the opening of the Check-in 3, the airport now has one-third more seats than before.

Real-time operations have identified a need for optimisation, above all, in the signs/guidance system, barrier-free accessibility and elevator capacity. Work has already started on the necessary improvements: numerous changes to the signage (new signs/changes) have already been made. A working group for barrier-free access has also been established together with various aid organisations, which is evaluating possible solutions and their implementation. Flughafen Wien is also analysing various options to increase elevator capacity.

Start of modernisation on Check-in 1

Work has now started on the modernisation of the older terminals. In Pier West, the decentralised security controls at the C-Gates were replaced by a central security control area. That has reduced the waiting time for passengers by 90% and made the waiting time in the pier and at the gates significantly more comfortable. Travellers can now pass the time up to departure in the shopping area or in a restaurant or cafe without further security controls. In Check-in 1 the walls and flooring will be revitalised by the first quarter of 2013, a new lighting concept will be installed and the check-in and ticket counters will be renovated. After that, Air Berlin/NIKI will relocate to this terminal. The old baggage handling equipment will then be disassembled, which will permit the construction of a more direct and shorter route for incoming passengers from the C-Gates to the new arrivals hall.

Corporate spending

Of the € 38.2 million invested in the first half of 2012, the major component was directed to the terminal extension Check-in 3 at € 19.9 million. Other projects included € 5.7 million for a forwarding agent building and € 2.2 million for furniture, fixtures and office equipment. Investments are expected to total a maximum of € 120 million for the full 2012 financial year.

For additional information contact:

www.viennaairport.com

Consolidated Interim Financial Statements

Consolidated Income Statement in T€	1-6/2012	1-6/2011	Change in %
Revenue	293,581.9	280,306.9	4.7
Other operating income	12,981.2	8,348.1	55.5
Operating income	306,563.1	288,655.0	6.2
Consumables and services used	-20,630.2	-19,677.5	4.8
Personnel expenses	-125,094.5	-123,430.6	1.3
Other operating expenses	-51,538.2	-47,068.1	9.5
Earnings before interest, taxes, depreciation and amortisation (EBITDA)	109,300.3	98,478.7	11.0
Depreciation and amortisation	-40,639.6	-32,437.0	25.3
Earnings before interest and taxes (EBIT)	68,660.7	66,041.7	4.0
Income from investments, excl. companies at equity	932.3	151.0	n.a.
Interest income	2,293.2	1,853.9	23.7
Interest expense	-10,276.1	-6,860.5	49.8
Other financial expense/income	133.6	1,577.3	-91.5
Financial results, excl. companies at equity	-6,917.0	-3,278.2	n.a.
Income from companies at equity	1,934.0	-4,579.4	n.a.
Financial results	-4,983.0	-7,857.6	36.6
Profit before taxes (EBT)	63,677.7	58,184.2	9.4
Income taxes	-14,173.7	-14,874.3	-4.7
Net profit for the period	49,504.0	43,309.8	14.3
Thereof attributable to:
Equity holders of the parent	49,062.4	43,318.1	13.3
Non-controlling interests	441.6	-8.3	n.a.
Earnings per share (in €) basic/diluted	2.34	2.06	13.6

Flughafen Wien Aktiengesellschaft

Announcement

The report by Flughafen Wien AG on the first half-year from 1 January to 30 June 2012 is available to the general public at the company’s offices in 1300 Flughafen Wien and
at Bank Austria, 1010 Vienna, Schottengasse 6-8. It is also available in the Internet under http://ir.viennaairport.com menu point “Publications“, sub-section "Quarterly Reports".

The Management Board

Flughafen Wien, 22.8.2012

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