Q1 2025 Fraport AG Earnings Call

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Operator: this Tuesday morning already for the first time. Later today at 2 o'clock we have our conference call as usual to answer all your questions. On my first slide for today, I would like to start with the traffic performance at our group airports in the first quarter of fiscal year 2025 and the recent development in April. On slide number three, you see our reported passenger numbers for January to March as the white bars and the April traffic performance displayed as blue bars. The grey and green numbers in the bar above the graph show you that we had a mixed start to the year within our portfolio.

Later today at two o'clock, we have our conference call as usual to answer all your questions.

On my first slide four today I would like to start with the terrific performance at our group airports in the first quarter of fiscal year 2025.

And the reason development in April.

On slide number three you see our reported passenger numbers for January to March as the white bars into April traffic performance displayed as Blue bus.

The gray and green numbers in the box the graph show you that we had a mixed start with the year within our portfolio.

However, when looking at the recent numbers, we see a positive trend for nearly all group airports.

Matthias Zieschang: However, when looking at the recent numbers, we see a positive trend for nearly all Group Air products.

But let us look at the airports one by one starting with Frankfurt.

Matthias Zieschang: But let us look at the airports one by one, starting with Frankfurt. The slight reduction in passengers of 0.9% in Q1 basically results from the start of the Easter holidays in Germany in March 24. which this year only started in April. A second reason are the aircraft-driven capacity constraints of our main customer, Lufthansa. Besides that, the strikes this year were not impacting us as heavily as in the previous but 2025 did not have a Leap Day in February. With the start of the summer flight schedule in April and the Easter holiday season, April traffic numbers were strong, with a plus of 4.8% year-on-year, in line with our expectations.

The slight reduction in passengers of <unk>, 9% in Q1, basically result from the start of the Easter holidays in Germany in March 24.

Which this year only started in April a second reason the aircraft driven capacity constrains of our main customer Lufthansa.

Besides that the strikes this year, we're not impacting us as heavily as the previous year.

2025 did not have a leap day in February.

With the start of the summer flight schedule in April and the Easter holiday season April traffic numbers were strong with a plus of four 8% year on year in line with our expectations.

Looking forward, we are confident to see further growth over the summer season with capacities growing on short haul routes and outside also Lufthansa group.

Matthias Zieschang: Looking forward, we are confident to see further growth over the summer. with capacities growing on short haul routes and outside of the Luftwaffe. Therefore, we remain confident to see growth over 2024 on a full year basis. sticks to our guidance of up to 64 million passengers in Frankfurt in 2025 as given with our full year publication in May. Looking at the development of our international portfolio now, you see that Lima outperformed all other airports in Q1. due to capacity additions by the airline. Of course, it's a pity that the new terminal is not operational yet.

Therefore, we remain confident to see growth over 2024 on a full year basis and stick to our guidance of up to 64 million passengers in Frankfurt in 2025.

Given with our full year publication in March.

Looking at the development of our international portfolio and now you will see that Lima outperformed all other airports in Q1.

Due to capacity additions by the airlines.

Of course, it's a pity that the new terminal is not operational yet. However, the good thing is that the old infrastructure are still a couple of dates for the volume growth, which we also saw in April.

Matthias Zieschang: However, the good thing is that the old infrastructure still accommodates for the volume growth which we also saw in April. Of course, I will give you an update on the terminal opening in my presentation today. Fraport Greece also printed good growth rates in the off-season and strong numbers in April of plus 4.9% due to the Easter holidays. Antalya lost around 7% in the first three months of the year. but was able to catch up strongly in April. So that year-to-date passenger numbers are just down by one. When looking at Brazil and the reduction in volumes, this is quite a good result bearing in mind.

Of course, I will give you an update on the terminal opening in my presentation to date.

Dropout, Greece also printed good growth rates in the off season and strong numbers in April of plus four 9% due to the Easter holiday season.

Antonio lost around 7% in the first three months of the year.

<unk> was able to catch up strongly in April.

That year to date passenger numbers adjust down by 1%.

When looking at Brazil, and the reduction in volumes. This is quite a good result bearing in mind.

That part of our league of Airpods has only been fully reopened in December.

Matthias Zieschang: The Porto Alegre airport has only been fully reopened in December and the airlines had to plan their capacities in advance. So, the recovery runs very well, and we expect that the rest of the year will outperform 2024 by far due to the long closure of the airport in Porto Alegre the last year after the flood. In April, both our Brazilian airports saw passenger growth with Porto Alegre at plus 2.6% and Fortaleza at a strong rate of plus 13.7%. Ljubljana still misses a national flag carrier, which could notably impact capacities and traffic volumes, and the passenger numbers at the Fraport-Twinstar airports in Bulgaria were flattish in the off-season, and a clear uptick in April.

And the airlines had two plans as their capacities in advance.

So the recovery of runs very well and we expect that the rest of the year will outperform 2024 by far due to the long closure of the airport and popular league last year after the flooding.

In April.

With our Brazilian airports salt passenger growth with Porto <unk>, two plus two 6%.

And Fortaleza at a strong rate of plus 13.7%.

<unk>, Mrs and national flag carrier, which could notably impact capacities and traffic volumes and the passenger numbers at the Fraport Twin Star App pumps in Bulgaria were flattish in the off season, and a clear uptick in April.

Like this the <unk> group as a whole and excluding for Frankfurt printed a slightly positive terrific resided in Q1.

Matthias Zieschang: Like this, the Fraport Group as a whole and excluding for Frankfurt printed a slightly positive traffic result in Q1. The April numbers for the group are primarily driven by the Easter holiday season, as well as further capacity recovery in Brazil and capacity additions in the Frankfurt summer flight schedule.

The April numbers for the group is primarily driven by the Easter holiday season, as well as further capacity recovery in Brazil.

And capacity additions in the Frankfurt Summer flight schedule.

On slide four of my presentation I would like to give you an update on our maitre expansion programs and I would like to start with Antonio.

Matthias Zieschang: On slide four of my presentation, I would like to give you an update on our major expansion programs, and I would like to start with Antalya. I'm very happy to say that on April the 12th, this year, after three years of construction works, The terminal expansion at Antalya Airport has been officially inaugurated. The opening of the additional terminal areas is a milestone for us in strengthening Antalya's position. as a leading holiday airport in the Mediterranean. The infrastructure is now able to handle up to 65 million passengers. which is necessary to meet the rapidly increasing demand for air travel to the Turkish Region.

I am very happy to say that on April 12. This year. After three years of construction books. The terminal expansion at entire airport has been officially inaugurated.

The opening of the additional determinant of areas is a milestone for us in strengthening <unk> position.

As a leading holiday airport in the Mediterranean region.

The infrastructure is now able to handle up to 65 million passengers.

Which is necessary to meet the rapidly increasing demand for air travel to the Turkish sort of year.

With this the first construction phase according to the concession agreement.

Matthias Zieschang: With this, the first construction phase according to the concession agreement, which incurred an investment amount of €850 million, has been successfully completed. When looking at Lima Airport, now on the upper right picture of my slide. I am glad to say that we have set a new date for the terminal opening. This is a very important milestone in this project that the team has worked for with a huge effort. Now we are all waiting for the official opening of the terminal on June the 1st, so in two and a half weeks from now. soft opening is even scheduled for Thursday this week, so in two days.

Which incurred an investment amount of 850 million euro.

Has been successfully concluded.

When looking at Lima Airport now on the upper right picture of my slides.

I'm glad to say that we have set a new date for the trailing the opening.

This is a very important milestone in this project that the team has worked for the huge effort.

Now we are all waiting for the official opening of the terminal on June the first so in two and a half weeks from now.

A soft opening is even scheduled for Thursday. This week so in two days.

And the festive inauguration with the precedent would take place on the 13th of May.

Matthias Zieschang: and the festive inauguration with the President will take place on the 30th of May. having completed the construction works at Antalya and Lima Airports now.

Having completed the construction works at Antalya and Lima airports now.

We only have terminal three in Frankfurt lift.

Matthias Zieschang: We only have Terminal 3 in Frankfurt left. We are making good progress here as well with all milestones according to the plan. We are well on track to complete the construction in 2025. and to open the terminal in around one year.

Making good progress here as well with all milestones according to the plan.

We are well on track to complete the construction in 2025.

To open the terminal in the round one yes.

Coming from Capex now, let me switch to some opex related news on slide five.

Matthias Zieschang: Coming from CAPEX, now let me switch to some OPEX-related news on slide 5. In early April, after having gone through an arbitration process, a new wage agreement has been approved by the Federal Ministry of the Interior and the Union. This agreement is effective as of the 1st of January 2025 and has a duration of 27 months. So negotiations have been settled until March. 27. This is very good. The content of the agreement is quite complex, so we have to explain it. On slide number five, we summarize the most relevant factors that will define our financial What is key, of course, and the basis of our calculations is a pure wage increase that has been agreed upon.

In early April.

After having gone through an arbitration process and new wage agreement has been approved by the federal Ministry of the interior and the unions.

This agreement is effective as of the first of January 2025, and has a duration of 27 months. So negotiations have been settled until March.

2007.

This is very good.

The content of the agreement is quite complex. So we have to explain it.

On slide number five we summarize the most relevant factors that will define our financial impact.

What is key of course in the basis of our calculations as a pure wage increase that has been agreed upon.

This is a two stage approach with a wage increase of 3% as of the first of April 25.

Matthias Zieschang: This is a two-stage approach with a wage increase of 3% as of the 1st of April 2025. and a second step up of 2.8% as of the 1st of May 2020. For this year, the 3% is defined further as there is a minimum step up of €100 per month per employee. So in other words, this will be an increase of about 4% for lower paid employees. In addition to that, also shift allowances increase materially, which is of course a relevant factor with regards to our... Starting from 26, the annual special payment, or bonus, will increase to 85% of a three-month average monthly salary for all employees.

And the second step up of two 8% as of the first of May 2026.

For this year, the 3% is defined further.

There is a minimum step up of 100 euro per month per employee. So in other words. This will be an increase of about 4% for lower paid employees.

In addition to that also shift allowances increased materially which is of course.

<unk> sector with regards to our business.

Starting from 2006, the annual special payment of bonus.

Will increase to 85% of its three months average monthly salary for all employees.

Which is an increase of up to 35 percentage points.

Matthias Zieschang: which is an increase of up to 35%. Also new is that parts of the payment... can be exchanged for additional days off. On top of that, employees have the possibility to increase their working hours. from 39 to 42 per week if both parties. And to conclude... There will be an additional day off from 2027 onwards, which of course is also impacting us not so much in the admin functions, but in the operations where we have shift plans, etc. So, all in all, a very complex structure. On a rounded basis, we expect the new labor agreement will cost us about 40 to 50 million euros this year for our Frankfurt operation.

Also new is that parts of the payments can be exchanged for additional days off.

On top of that employees have the possibility to increase their working hours.

Speaker Change: 39 to 42.

If both parties agree.

Speaker Change: And to conclude.

Speaker Change: It would be in addition to the day off from 2027 onwards, which of course is also impacting us not so much in the admin functions, but in the operations.

Speaker Change: You have shift plans et cetera.

Speaker Change: So all in.

Speaker Change: A very complex structure.

Speaker Change: On a rounded basis, we expect the new labor agreement will cost us about 40 to 50 million Euro this year for our Frankfurt operations.

Speaker Change: Yeah.

Speaker Change: Now coming to our financials, starting with the main resides of the past quarter on slide number six.

Matthias Zieschang: Now, coming to our financials, starting with the main results of the past quarter on slide number six. While total revenues of 869 million Euro were down by around 2%, revenues excluding for IFRIC-12 effects were up 6% over Q1 2024. driven by increasing airport charges and other prices. Regarding the ABDA, we faced two extraordinary effects. First, the dropout of the 28 million euro COVID related compensation at Fraport Greece in the previous Adjusted for this effect, EBITDA was mildly down by €7 million compared to Q1 2024. The reduction in EVDA can solely be attributed to a changed reimbursement system for the passenger screening in the aviation segment in France.

While total revenues of 869 million Euro we're down by around 2% revenues, excluding <unk> 12 effects were up 6% over Q1 2024.

Speaker Change: Driven by increasing airport charges and other prices.

Speaker Change: Regarding the EBITDA, we faced two extra ordinary effects first that drop out of the 28 million Euro COVID-19 related compensation at Fraport, Greece in the previous year.

Speaker Change: Adjusted for this effect EBITDA was mildly down by 7 million euro compared to Q1 'twenty four.

Speaker Change: Second the.

Speaker Change: The reduction in EBITDA can solely be attributed to a changed reimbursement system for the passenger screening in the aviation segment in Frankfurt.

Speaker Change: Last year.

You were reimbursed by the federal police.

Matthias Zieschang: last year. We were reimbursed by the Federal Police in Biella. This year, we have just reimbursed... by the L.I. The change reimbursement system leads to an increased seasonality in the aviation security revenue. As a result, Q1 revenues are reduced, while Q2 and Q3 revenues are higher this year compared to the previous year. The change reimbursement system led to a negative €10 million EBITDA effect in the first quarter. Adjusted for both effects, EpiDA in Q1 was broadly flat compared to the previous one. EBIT was equally impacted by the Fraport Greece one-time effect and the changed security reimbursement.

Speaker Change: The airlines.

Speaker Change: This year, we adjust the reimbursed.

Speaker Change: By the airlines to change reimbursement system.

Speaker Change: Leads to an increased seasonality in the aviation security revenues.

Speaker Change: As a result Q1 revenues are reduced by Q2 and Q3 revenues are higher this year compared to the previous year.

Speaker Change: The change reimbursement system led to a negative $10 million EBITDA effect in the first quarter.

Speaker Change: Adjusted for both effects EBITDA in Q1 was broadly flat compared to the previous year.

Speaker Change: EBIT was equally impacted by the Fraport, Greece onetime effect and the change security reimbursement.

Speaker Change: Adjusted for these about 338 million Euro effects EBIT was up by around 8 million euro compared to the previous year.

Matthias Zieschang: Adjusted for these about 38 million euro effects, EBIT was up by around 8 million euro compared to the previous year. The main driver within the financial result was a much more negative result from Antalya driven by lower traffic numbers as explained and an exchange rate driven deferred tax. Therefore, the financial result stood at minus 88 million euro and therefore 22 million euro below Q1 2000. Correspondingly, our group result in the first quarter turned negative with minus 26 million euros.

Speaker Change: Main driver within the financial result was a much more negative for aside from anti yet driven by lower traffic numbers explained and an exchange rate drift and deferred tax effects.

Speaker Change: Therefore, the financial results stood at minus 88 million Euro.

Speaker Change: Therefore, 22 million Euro below Q1 2024.

Speaker Change: Correspondingly our group rate side in the first quarter turned negative with minus 26 million Euro.

Speaker Change: With this I come to our cash flow performance in net debt development on slide number seven.

Matthias Zieschang: With this, I come to our cash flow performance and net-debt development on slide number 7. First of all, I would like to stress that the operational cash flow and investments in the first quarter developed in line with our expectations. having paid the full variable concession fee in Greece in the amount of more than 100 million euros for the first time. and having incurred higher interest payments due to higher indebtedness. The operational cash flow decreased to 12 million Euro in the first... Therefore, also the free cash flow dropped to minus 353 million Euro. from minus 226 million euro in 2024, despite a 20% lower brick and mortar capital.

Speaker Change: First of all I would like to stress that the operational cash flow and investments in the first quarter developed in line with our expectations.

Speaker Change: Having paid the full variable concession fee increase in the amount of more than 100 million euro for the first time.

Speaker Change: And having and corrupt higher interest payments due to a higher indebtedness.

Speaker Change: The operation of cash flow decreased to 12 million euro in the first quarter.

Speaker Change: Therefore also the free cash flow dropped to minus 353 million Euro.

Speaker Change: From minus 226 million Euro in 2024, despite a 20% lower brick and mortar capex.

Speaker Change: The stake sale in Dalian did not have a direct impact on our free cash flow, but decrease the net debt at the end of the first quarter by around 104 million Euro after deducting the withholding tax.

Matthias Zieschang: The stake sale in Delhi did not have a direct impact on our free cash flow but decreased the net debt at the end of the first quarter by around 104 million Euro after deducting the withholding Nevertheless, as a result of all these effects, our group net-debt increased. more than 8.6 billion euro which is according to and in line with our expectation the peak for this year. Correspondingly, also our leverage ratios will improve from here.

Speaker Change: Nevertheless.

Speaker Change: As a result of all of these effects our group net debt increased to more than $8 6 billion Euro which is according to and in line with our expectation the peak for this year.

Speaker Change: Correspondingly also our leverage ratios will improve from here.

Speaker Change: Moving on to our repayment profile at the end of Q1 I am now on slide number eight.

Matthias Zieschang: Moving on to our repayment profile at the end of Q1, I am now on slide number 8. Looking at the development of our liquidity position, you see that we have come down from a very high level of more than €4 billion or €5 billion respectively, including for unused project finance and committed credit lines, to around €3.6 billion or €4.2 billion, including the unused credit lines. As part of this, the credit lines in Lima alone decreased by 270 million Euro, driven by the progress in construction. Gross debt is more or less on the same level as last year at around 12.2 billion euros.

Speaker Change: Looking at the development of our liquidity position you see that we have come down from a very high level of more than 4 billion Euro 5 billion euro respectively, including for unused project finance and committed credit lines to around three 6 billion Euro.

Speaker Change: <unk>, four 2 billion, including the credit the unused credit lines.

Speaker Change: As part of this the credit lines in Lima alone decreased by $270 million driven by the progress in construction books.

Speaker Change: Gross debt is more or less on the same level as last year at around $12 2 billion Euro.

Speaker Change: Despite regular refinancing activities and drawdowns from the project financing.

Matthias Zieschang: despite regular refinancing activities and drawdowns from the project financing. Our average cost of debt remained on the full year 24 level of 3.2% and increased only by 0.1% over Q1 last year.

Speaker Change: Our average cost of debt remained on the full year two.

Speaker Change: 24 level of three 2% and increased only by 1% over Q1 last year.

Speaker Change: Coming to our segment reporting now starting with aviation on slide number nine.

Matthias Zieschang: Coming to our segment reporting now, starting with aviation on slide number 90. As you know, effective as of the 1st of January this year, we increased the regulated aviation charge. by around 6% according to the four-year agreement with IELA. This helped us to compensate for the traffic shortfall in Frankfurt of 0.9% as discussed before. and led to aviation charges of 202 million Euro, a plus of around 4%. In total, the revenues added up to $270 million. as described before, a recorded change reimbursement system in the security... Therefore... And the off-season, the security business had a negative EBITDA contribution of around €10 million, while this turns around in the high season, especially in Q2 and Q3.

Speaker Change: As you know effective as of the first of January this year, we increased our regulated aviation charges.

Speaker Change: By around 6% according to the four year agreement with <unk> Airlines.

Speaker Change: This helped us to compensate for the traffic shortfall in Frankfurt.

Speaker Change: 9%.

Speaker Change: As discussed before.

Speaker Change: And led to aviation charges 202 million Euro.

Speaker Change: As of around 4%.

Speaker Change: In total the revenues added up to $270 million as described before.

Speaker Change: We have recorded changed reimbursement system into the security business.

Speaker Change: Therefore.

Speaker Change: In the off seasons, the security business.

Speaker Change: Negative EBITDA contribution of around 10 million Euro while this turns around in the high season, especially in Q2 and Q3.

Speaker Change: On an annual basis, the security business is earnings neutral.

Matthias Zieschang: on an annual basis. The security business is earnings neutral. In addition to that, annualizing wage effects from the previous labor agreement that came into effect in March 2014, increase the operational cost not only in aviation but in the other segments as well as we will see in Therefore, as expected, the EBITDA was below previous year's level at 43 million euros. and also despite slightly lower DNA, the segment came down. For the full year, we expect the segment performance to benefit from the price increase in aviation charges. in combination with traffic growth despite higher costs. primarily from the agreed wage increase starting from June 2, 2025.

Speaker Change: In addition to vet annualizing wage effects from the previous labor agreement that came into effect in March 'twenty for.

Speaker Change: Increased operational costs, not only in aviation, but in the other segments as well as we will see in a minute.

Speaker Change: Therefore, as expected EBITDA was below previous year's level at 43 billion Euro.

Speaker Change: And also despite slightly lower DNA.

Speaker Change: Segment, EBIT came down to 6 million euro but remained positive.

Speaker Change: For the full year, we expect the segment performance to benefit from the price increase and navigation charges.

Speaker Change: In combination with traffic growth despite higher cost.

Speaker Change: Merrell lead from the agreed to wage increase starting from Q2 2025.

Speaker Change: Now I come to our retail and real estate segment on slide number 10.

Matthias Zieschang: Now I come to our retail and real estate segment on slide number 10. Revenues also increased in this segment to €123 million. Out of that, the retail business performed at the previous year's level, but at a lower percentage. which means that the retail spend per passenger in... Our main KPI in this segment increased by 6 cents. €3.41 Services revenues and advertising revenues were higher on a per-passenger basis if compared to Q1 2020. Especially the advertising revenues were driving the overall positive performance. In absolute terms, advertising revenues grew by more than 1 million Euro compared to last year or by 20%.

Speaker Change: Revenues also increased in this segment to 123 million Europe out of that the retail business performed at the previous year's level, but the lower passenger numbers.

Speaker Change: Which means that the retail spend per passenger increased our main kpis in this segment increased by <unk> <unk> to.

Speaker Change: Two three euro and 41.

Speaker Change: Looking a bit more into the details.

Speaker Change: Services revenues and advertising revenues were higher on a per pet.

Speaker Change: <unk> basis, if compared to Q1 2004.

Speaker Change: Especially the advertising revenues, we are driving the overall positive performance.

Speaker Change: In absolute terms advertising revenues grew by more than 1 million euro compared to last year or by 20%.

Speaker Change: The negative development of shopping the revenues on a per passenger basis.

Matthias Zieschang: The negative development of shopping revenues on a per passenger basis of... Some 3% can be explained by a reduced number of Chinese passengers as Lufthansa took out the Beijing service for the week. While the real estate business was quite stable, parking revenues grew by some 8% driven by price changes. due to higher wages and costs in general. Segment's FPGA was flat in Q1 over last year. Slightly lower DNA. Looking ahead, the changing traffic momentum will help the absolute performance over the summer flight schedule. Also, new cost items will kick in as well. The passenger development may be under pressure due to short haul additions while no major intercontinental growth is expected.

Speaker Change: Some 3% can be explained by a reduced number of Chinese passengers as Lufthansa took all of the Beijing service for the winter season.

Speaker Change: Why is the real estate business was quite stable.

Parking revenues grew by some 8% driven by price increases.

Speaker Change: Due to higher wages and costs in general.

Speaker Change: EBITDA was flat in Q1 over last year.

Speaker Change: Slightly lower DNA.

Speaker Change: Led to a mild increase in EBIT.

Speaker Change: Looking ahead, the changing traffic momentum.

Speaker Change: Will help the absolute performance over the summer flight schedule also new cost items will kick in as discussed.

Speaker Change: The passenger development may be under pressure pressure Q2 shortfall additions, while no major intercontinental growth is expected.

Speaker Change: Moving on to our ground handling segment on slide number 12 as mentioned in recent publications, we keep on working on our pricing strategy and drought tenzing.

Matthias Zieschang: Moving on to our groundhandling segment on slide number 12. As mentioned in recent publications, we keep on working on our pricing strategy in ground... Price increases in both central infrastructure and services, as well as temporary market share gains. due to capacity constraints at Swissport, led to a 13% increase in revenues despite lower traffic volumes. Our labor-intense business segment is most exposed to wage adjustment. Therefore, the annualizing effect from last... starting in August 24 for ground handling, puts pressure on the operation. Despite this fact and a higher staff amount, ground handling showed a slight improvement in segment EBDA to minus 18 million euros.

Speaker Change: Price increases in both central infrastructure and services as well as temporary market share gains due to capacity constraints that sweet spot.

Speaker Change: Led to a 13% increase in revenues despite lower traffic volumes.

Speaker Change: Our labor intense business segment is most exposed to wage adjustment.

Speaker Change: Therefore, the annualizing effect from last year.

Speaker Change: Starting in August 24 ground tending puts pressure on the operational result.

Speaker Change: Despite this fact and the highest staffer knowledge ground tenzing showed a slight improvement in secondary and segment EBITDA too.

Speaker Change: Minus 18 million Euro looks.

Speaker Change: Looking ahead, we expect a better cost coverage from the increase in passenger numbers, especially over the peak summer season.

Matthias Zieschang: Looking ahead, we expect a better cost coverage from the increase in pest as well as from further reduction of temporary staff from external contractors.

Speaker Change: As well as from for a reduction of temporary staff from external contractors.

Speaker Change: On slide 13, I conclude our segment reporting with our international activities and services.

Matthias Zieschang: On slide 13, I conclude our segment reporting with our international activities and services. First of all, you see in our revenue reporting that the Lima construction is coming to an end. If compared to last year, IFRIC 12 revenues decreased strongly. from $127 million to $57 million. This is in line with our expectation and will also hold true for the remainder of the year. Looking at the underlying revenues, the segment recorded a solid growth of 8% in the off-peak season for our touristic area. in particular, driven by strong dynamic Within other income, you see that Q1 2024 was positively impacted by a €28 million one-off item, which also improved the EBITDA in 2020.

Speaker Change: First of all you'll see in our revenue reporting that the Lima construction is coming to an end.

Speaker Change: If compared to last year, if rig 12 revenues decreased strongly.

Speaker Change: From 127 million to 57 million Euro.

Speaker Change: This is in line with our expectation and we will also hold true for the remainder of the year.

Speaker Change: Looking at the underlying revenues segment recorded a solid growth of 8% in the off peak season for our touristic airport in particular, driven by strong dynamics in email.

Within other income you will see that Q1 2024 was positively impacted by a 28 million euro or one off item.

Speaker Change: <unk> also improved the EBITDA in 2004.

Speaker Change: So if adjusted for these special items.

Matthias Zieschang: So, if adjusted for this special item. Underlying EBITDA and EBIT recorded some 4% and 14% growth this year. This is somewhat remarkable, bearing in mind that Porto Alegre is still recovering from the flooding. All in all, we are satisfied with the performance of the segment at the beginning of the year and are very confident with regards to the development over the remainder of the year with April and the Easter season. as a positive indicator.

Speaker Change: Underlying EBITDA and EBIT recorded some 4% and 14% growth respectively.

Speaker Change: This is somewhat remarkable bearing in mind that part of our leaker is still recovering from the flooding.

Speaker Change: All in all we are satisfied with the performance of the segment at the beginning of the year and are very confident with regards to the development over the remainder of the year with April and Easter season.

Speaker Change: As a positive indicator.

Speaker Change: On Slide 14, my last slide for today's presentation I share our outlook with you again.

Matthias Zieschang: On slide 14, my last slide for today's presentation, I share our outlook with you again. We reconfirm our guidance and leave it unchanged compared to our full year publication. Frankfurt Airport, we expect to grow this year up to 64 million, which represents a growth rate of below 4%. On the financial KPIs and here the EBITDA, we expect a moderate EBITDA increase in the single digit percentage area. With the outcome of the wage negotiations, we feel quite comfortable with this. Consequently, also the guidance for the group net result remains unchanged. We expect this is to be flat to down this year, mainly due to extra grains in the context of the disposal of our shares in St.

Speaker Change: We reconfirm, our guidance and leave it unchanged compared to our full year publication.

Speaker Change: Frankfurt Airport, we expect to grow this year up to a 64 million, which represents a growth rate of below 4%.

Speaker Change: On the financial Kpis and here the EBITDA, we expect a moderate EBITDA increase in the single digit percentage area.

Speaker Change: With the outcome of the wage negotiations if you're quite comfortable with this.

Speaker Change: Consequently also the guidance for the group net resided remains unchanged.

Speaker Change: We expect this to be flat to down this year, mainly due to extra <unk> in the context of the disposal of our she is in St. Petersburg last year.

Matthias Zieschang: Petersburg last year. Going on to our leverage, the net debt to EBITDA ratio will slightly improve due to the positive EBITDA development and stable net debt. For the time being, no dividend payment for 25 financial years planned to be distributed.

Speaker Change: Going on to all.

Speaker Change: Our leverage net debt to EBITDA ratio was slightly improved due to the positive EBITDA development.

Speaker Change: And stayed the net debt.

Speaker Change: For the time being no dividend payment for 25 financial yet planned to be distributed.

Speaker Change: 26.

Speaker Change: Having said this I'd like to thank you for your attention have a nice day and goodbye.

Operator: Having said this, I'd like to thank you for your attention, have a nice day, and goodbye. Welcome also from my side, happy to have you all online. It's a new year, so we started something new. As you noticed, we have published. Matthias' presentation already this morning as an on-demand webcast. So, happy to receive your feedback later or the next days when you talk to IR, not only about the figures, but also on that.

Speaker Change: Welcome also from my side happy to have you on line.

Speaker Change: It's a new year. So we started something you as you noticed we have published materials.

Speaker Change: <unk> presentation already this morning, as our on demand webcast.

Speaker Change: So happy to receive your feedback later or over the next days when you talk to IR not only about the figures, but also on that so consequently since the presentation has already been published we will jump to date directly into Q&A.

Operator: Consequently, since the presentation has already been published, we will jump to date directly into Q&A. I am happy to hand over for the Q&A.

Speaker Change: Hawaii happy to hand over for the Q&A.

Speaker Change: We will now begin the question and answer session anyone who wishes to ask a question you May press star one on the telephone you will hear a tone to confirm that you have to enter the queue. If you wish to remove yourself from the question queue Press Star two questioners on the phone are requested to disable the loudspeaker mode and eventually turn up the volume from the webcast asking a question.

Operator: We will now begin the question and answer session. Anyone who wishes to ask a question may press star 1 on their telephone. You will hear a tone to confirm that you have entered. If you wish to remove yourself from the question queue, you may press star and 2. Questioners on the phone are requested to disable the loudspeaker mode and eventually turn off the volume from the webcast while asking a question. Anyone wants a question may press star 1 at this time.

Speaker Change: Anyone with a question press Star one at this time. The first question comes from Carlos Cobo Rajeev.

Carlos Ortega: The first question comes from Carlos Carburasi, Captain Chevreux, please go ahead. Hi everyone. Thank you for taking my questions. I have two. First, I wanted to focus on the regulated EV data. In the webcast, you've explained that this is largely attributed to a change in the reimbursement system for passenger screening. And from what you said, I assume that the federal police will pay in the next quarters and there shouldn't be an impact whatsoever on a full year basis. But what's the rationale behind this change? And is it something you had anticipated? And finally, on the regulated EV data, are you happy with consensus for your expectation, which stands at 406 million euros?

Speaker Change: Please go ahead.

Speaker Change: Hi, everyone. Thank you for taking my questions.

Speaker Change: I have two.

Speaker Change: First I wanted to focus on regulated EBITDA in the webcast. You have explained that this is largely attributed to a change in the reimbursement system.

Speaker Change: Passenger screening and from what you said I assume that the federal police will pay in the next quarters and there shouldn't be any impact whatsoever knuckle euro basis, but what's the rationale behind this change and then you said something you had anticipated and finally on the regulated EBITDA are you happy with consensus what are your expectation, which as Stan said.

6 million Euro.

Speaker Change: And second can you share the moving parts of Anthonys development in the quarter and retail revenues.

Christoph Nanke: And second, can you share the moving parts of Antalya's development in the quarter? Retail revenues have naturally decreased year-on-year and you also point to some deferred taxes. So please, could you shed some light on these two? Thank you. Yeah, thank you for your questions. Starting with the first one, the security mechanism. So it's a little bit of a complicated topic. So in the past, We offered security services and this created costs, primarily personnel expenses for the staff at the security lines. And quarter by quarter, these costs have been... calculated and we received the money from the federal police exactly this amount which was spent for the security service.

Speaker Change: Decreased year on year and you also pointed out there's some deferred taxes. So please could you just shed some light on this year. Thank you.

Speaker Change: Yes. Thank you for your questions starting with the first one the security mechanisms. So it's a little bit of a complicated topic. So in the past we are offered securities services and these created cost primarily personnel expenses for the stuff.

Speaker Change: And the security lines.

Speaker Change: And quarter by quarter of these costs have been.

Speaker Change: Calculated and <unk>.

Speaker Change: We received the money from the federal police exactly these amount, which will spend was the security services.

Speaker Change: This was the OLED mechanism the old regime.

Christoph Nanke: So this was the old mechanism, the old regime. And then you know that we changed the system totally in a way that we took over the responsibility. So in combination with the takeover of the responsibility, also this reimbursement system was changed. So in further, in old times, we received the money from the federal police and the federal police collected the money from the airline. And now we have a direct reimbursement system in a way that the principle is that all our costs have to be fully covered by the revenue stream coming from the airline. in a way that in the beginning of the year, we are calculating our cost levels, the personnel input on one side.

Speaker Change: And then you know that we change the system totally in a way that we took over the responsibility.

Speaker Change: So the year end and in combination with the takeover of the responsibility also these reimbursement system was changed so and further in the old times, we received the money from.

Speaker Change: From the federal police and the federal police collected the money from the airlines.

Speaker Change: And now we have a direct reimbursement system in a way that the principle is that all our cost cost is.

Speaker Change: To be fully U K.

Speaker Change: Caveat.

By the revenue stream coming from the airlines.

Speaker Change: In a way that in the beginning of the year.

Speaker Change: We are calculating our cost levels.

Speaker Change: The personnel input on one site.

Speaker Change: And on the other side you have to make an assumption how many passengers we do expect for the following year.

Christoph Nanke: And on the other side, we have to make an assumption how many passengers we do expect for the following year. And then the price, which is calculated per passenger, is a result from. planned number of peasant jobs. So, in the moment, I think the calculated price is 11... just give me 11 euro and 86 cents. And now, in the first quarter, we have all the personnel behind the security line, so we have a certain cost level which is determined by the number of employees. And on the other side, we have the number of passengers times €11.86, and this is a revenue stream.

Speaker Change: And then the price which.

Speaker Change: As calculated per passenger is a resulted from.

Speaker Change: The estimated cost level divided by the <unk>.

Planned number of patent drugs. So in the moment I think the calculated prices 11, just given me 11 euro and 86%.

Speaker Change: And now.

Speaker Change: In the first quarter. We are we have all the personnel behind to security lines. So we have a certain cost level, which is determined by the number of employees and on the other side. We have a number of passengers times 11, your own 86, and this is a revenue stream.

Speaker Change: And due to the seasonality of the traffic. This means in Q1 as well as in Q4. The number of passengers is always lower than we have a good number in Q2 and we have the peak in Q3, new characteristics as said in the first quarter.

Christoph Nanke: And due to the seasonality of the traffic, this means in Q1, as well as in Q4, the number of passengers is always lower, then we have a good number in Q2, and we have the peak in Q3. The new characteristics is that in the first quarter, The revenue stream is not covering the total cost of running the security line. The second quarter is more or less full coverage, while in the third quarter we have an overshooting of the revenues compared to the cost. And then at the end of the third level, we make a final calculation for the rest.

Speaker Change: The revenue stream is not covering the total cost of running the security lines is the second quarter is more or less.

Speaker Change: Full coverage, while in the third quarter, we have an overshooting of the revenues compared to the costs.

Speaker Change: And then at the end of the third level, if you make a final calculation for the risk.

Speaker Change: Of the year.

Speaker Change: Our cost calculation has been correct on one side and on the other side.

Christoph Nanke: of the year, whether our cost calculation has been correct on one side and on the other side whether our Pax calculation has been correct. And then we have the chance, we have in principle five times per year the chance to change the price per passenger. So for example, when in September we have the impression that the number of realized passengers will be lower, we make a new calculation and we are going to increase the €11.86 or if we have more passengers than expected, we are going to reduce it a little bit so that end of the year.

Speaker Change: Whether our <unk> calculation has been correct and then we have the chance in principle five times PE has a chance to change the price per person trial. So for example, when in September we have the impression that the number of realized passengers will be lower if you make a new character.

Speaker Change: Relation and we are going to increase 11 Euro 86, or if you have more pairs than just unexpected we are going to reduce it a little bit through the end of the year.

Speaker Change: The total amount of revenues is exactly.

Speaker Change: Covering our cost level. So it's a complicated mechanism, but this has to do with the takeover of the responsibility of the security services. Because now we are offering services to the airlines and not like in the past the federal police.

Christoph Nanke: covering our cost level. So it's a complicated mechanism, but this has to do with the takeover of the responsibility of the security services, because now we are offering the services to the airlines and not like in the past, the federal police. And the effect is that in the first and in the fourth quarter, we have an undershooting of the revenue streams, while in Q2, and especially in Q3, we have an overshooting of the revenue stream compared to the cost level. So this is a new mechanism, and in a like-for-like comparison to last year, we have, let me say an undercoverage of nearly 10 million in this year, which will be compensated in Q2, but primarily in Q3.

Speaker Change: And.

Speaker Change: The effect is that in the first and in the fourth quarter, we have an under shooting.

Speaker Change: The revenue streams, while in Q2.

Speaker Change: And especially in Q3, we have an overshooting off the revenue.

Speaker Change: Extreme compared to the.

Speaker Change: Cost level. So this is a new mechanism and the like like for like comparison to last year.

Speaker Change: Do you have.

Speaker Change: Let me say, an undercover trophy nearly $10 million.

Speaker Change: In this year, which will be compensated in Q2, but primarily in Q3.

Speaker Change: Second question is on.

Christoph Nanke: Second question is the Antalya result. When you look on the numbers, it is disappointing. This has two reasons. We have on the operational side, we have a dispute with the former retailer, Urrat. We sent them a cancellation on the contract because we have a new internal... retailing company together with Tuff, which is taking over all retail activities. and Urat, the old retailer. Canceled. So this is a dispute and now we are in arbitration process. And we think that, based on the legal arguments, the case is on our side, but nevertheless, as a cautious businessman, we built some provisions.

Speaker Change: <unk>.

Speaker Change: A result, when you look on the numbers is disappointing. This has two reasons we have on the operational side, we have a dispute with a former retailer was up so we.

Speaker Change: We sent them a cancellation on the contract because we have a new internal.

Speaker Change: Retailing company together was tough with which is taking overall retail activities.

Speaker Change: And we will up the OLED retailer.

Speaker Change: Claimed that the contract is not.

Speaker Change: Cancelled. So this is a is a dispute and now we are in the arbitration process.

Speaker Change: On the legal arguments the cases on our site, but nevertheless is a cautious businessmen we built some provisions in this.

Speaker Change: Element, you'll find on the EBITDA level and this is the reason why the EBITDA is lower.

Christoph Nanke: This element you find on the EBITDA level, and this is the reason why the EBITDA is lower than in the previous quarter. The second effect is that, due to the late Easter holidays, also the number of passengers in the first three months is a little bit lower than in the previous year, and then you see the strong recovery in April, and this has to do with the shift of the Easter holidays. The second element of the Antalya profitability is a... tax elements, deferred taxes, and also a complicated tax issue in Turkey, in principle, when you are investing money in the infrastructure.

Speaker Change: Then in the previous quarter and the second effect is that due to the late Easter holidays also has a number of passengers in the first three months is a little bit lower than in the previous year, and then youll see a strong recovery in April and this has to do with a shift of the.

Speaker Change: Easter holidays, the second element of the an anti.

Speaker Change: Profitability is.

Speaker Change: It's a text elements deferred Texas.

Speaker Change: We're a complicated tax issue in in Turkey in principle, when you are investing money in the infrastructure.

Speaker Change: You are going to receive a tax credit from the government, which you can use in future times to reduce you.

Christoph Nanke: you are going to receive a tax credit from the government, which you can use in future times to reduce your... tax rate. And this tax credit has to be capitalized and put in the balance sheet. This is denominated in Turkish Lira, of course. For us, our relevant currency is Euro and so we have to translate this tax asset from Turkish Lira into Euro, which we have in the balance sheet and due to the significant depreciation of the Turkish Lira. the in Euro denominated value of the tax credit. has been reduced and this minus in the interest result of Antalya is the expression of this depreciation of this tax credit which we have in the balance sheet of Antalya 1 as well as in Antalya 2.

Speaker Change: Tax rate and <unk>.

Speaker Change: Tax credit has to be capitalized and put in the balance sheet. This is denominated in Turkish lira cost but.

Speaker Change: For us.

Speaker Change: Our relevant currency.

Speaker Change: Laurel.

Speaker Change: And so we have to translate these texts asset from Turkish lira into euro.

Speaker Change: Which we have in the balance sheet and due to the significant depreciation of the Turkish lira.

Speaker Change: Uh huh.

Speaker Change: In Euro denominated whether you have the tax credit.

Speaker Change: And has been reduced and this minus the interest rate side of untitled expression of these depreciation of this tax credit, which we have.

Speaker Change: The balance sheet of anti IL, one as well as in Ontario to.

Speaker Change: As a pure one off effect no cash out.

Carlos Ortega: So it's a pure one-off effect, no cash out. It's just a reduction of future. tax profits or tax advantages which are lower in euro due to the depreciation, a huge depreciation of the target. Okay, thank you, Christoph. I would just like to follow up on the first one. I mean, you've said that you have the chance to change the price per passenger within the year. Five times a year. And do you also have the chance to change it in case, imagine something weird happened, and you end up in the year under earning? Do you have the possibility to change that for next year?

Speaker Change: It's just a reduction of future.

Speaker Change: Texts profits tax advantages, which are lower in Europe due to the.

Speaker Change: Depreciation the huge depreciation of the Turkish lira.

Speaker Change: Okay. Thank you first off on.

Speaker Change: I would just like to follow up on the first one.

Speaker Change: And you have the chance to change the price per passenger.

Speaker Change: Within the year.

Speaker Change: Oh five times per year, five times, a year and do you also have the chance to change it in case imagine something weird happened undo and dumped in the year and their earnings do you have the possibility to change that for next year, yet, but you have brought onboard mechanism.

Christoph Nanke: Do you have a rollover mechanism? No, no, it's always in advance. So that's the reason we have to make a very precise calculation. So it can be that, let me say in November, if at the end of the day, we see a remaining deficit, which would come in December, if, for example, we have been wrong with the final estimate of the passenger numbers, then the final price adjustment could happen end of November. But it's always looking forward. If at the end of the day, there is a deviation, a positive one or a negative one, if there is no carry forward mechanism to the next year.

Speaker Change: It's always in advance so that's the reason we have to make a very precise calculation. So it can be that's let me say in November if at the end of the day, we see the.

Speaker Change: The remaining deficit, which would come in December if for example, we have been wrong with our final estimate of the passenger numbers and the final.

Speaker Change: Price.

Speaker Change: Just meant could happen end of November.

Speaker Change: But it's always looking for ups if at the end of the day, there is a deviation of positive or negative on.

Speaker Change: There is no carryforward mechanism to the next year. That's the reason why we have to do this very precisely.

Carlos Ortega: That's the reason why we have to do this very precisely. But this is, let me say, the controllers have to do a good job. Okay, very clear. Thank you, Christoph.

Speaker Change: And to avoid any.

Speaker Change: Our cost under coverage at the end of the year.

Speaker Change: But this is something to say because the controllers have to do a good job.

Christoph: Okay very clear thank you Christoph.

Speaker Change: The next question comes from Alethia Rod Jpmorgan. Please go ahead.

Elodie Rall: The next question comes from Elodie Rall, JP Morgan. Please go ahead. Hi, good afternoon. Thanks for taking my questions. My first question is on the labour agreement. So you've shown the 3% increase for this year and so on for the following year. But if we resume, if we could summarise basically the cost increase that you're seeing, I think you mentioned 40 to 50 million. So basically a 4% or 5% effect in terms of increase in wages for 2025. And how does that compare to your assumption when you set guidance at the beginning of the year?

Speaker Change: Hi, good afternoon. Thanks for taking my questions. My first question is R&D.

Speaker Change: The agreement.

Speaker Change: Thank you Sharon.

Speaker Change: The 3% increase for this year and so on.

Speaker Change: Yeah.

Speaker Change: We view it.

Speaker Change: Could you summarize basically the cost increase that you're seeing I think you mentioned to me.

Dan: Hey, Dan.

Dan: Thank you Paul.

Dan: Perfect.

Dan: Increasing weight in <unk> 25.

How does that compare to your assumption.

When you set guidance at the beginning of the year was that the.

Dan: Central case.

Elodie Rall: Was that the central case, a better or worse outcome? That's my first question. My second question is if we have an update on discussion with the German government regarding the taxes and regulations that you have previously commented as having a significant detrimental effect on aviation in Germany. And my last question is on the U.S., whether you have seen any impact so far with regard to U.S. traffic and maybe spending of U.S. passengers in terminals as well. Thanks. Yeah, thanks for the question. First one, comparing now the final... wage increase based on the agreement with the unions compared to our financial plan.

Dan: Bechtel with outcome. So that's my first question. My second question is on the the if we have an update on the grid.

Dan: With the German government.

Dan: Regarding the taxes and regulations that you have previously comments he does.

Dan: If you can get to maturity.

Dan: In addition in Germany.

Dan: And my last question is.

Dan: Whether you have seen any.

Dan: Impact so far.

Dan: With regard to U S taxes.

And maybe.

Dan: Being of U S question Jayson.

Dan: Well thanks.

Dan: Yes. Thanks for the question first one comparing now the final.

Dan: Wage increase based on the agreement with the unions compared to a financial plan. This is a little bit better than what we have.

Elodie Rall: This is a little bit better than this what we have. Yeah, final settlement of these agreements, so it's good or it's in favor of us. But it's not a big effect. So second, the new government, so it's difficult to say what they are going to do. I think they have a lot of challenges, a lot of tasks. One thing is we think that two things will happen. So you know that when you look back in the last couple of years, the aviation tax was always year by year increased, and there was also an increase in this year.

Dan: In our financial plan.

Dan: Question is behind of course, our guidance is based on the peninsula.

Dan: Financial plan, so we have a little headroom gains.

Dan: By the.

Dan: Yeah final settlement of these.

Dan: Agreements so it's good to shave off us.

Dan: But it's not a big a.

Dan: Big effect, so a second the new government. So it's difficult to say, what they're going to do I think they have a lot of challenges a lot of task.

Dan: One thing is what we think that two things will happen. So you know that when you look back in the last couple of years Aviation ticks was always year over year increased and there was also an increase in this year and is a clear commitment from.

Elodie Rall: And there's a clear commitment from the social democrats as well as from the conservatives to stop this increase from this year. And this will happen, so what we have heard inofficially from the relevant... And the second element is the, you know, there is a, we have to, or the European airlines have to use sustainable aviation fuels. and there is a ramp up quote from the EU that year by year this suffering... increase should increase. And on top of this, coming from the EU, the German government decided that with the beginning of this year, they should on top of it, so-called German And this will also be.

Dan: The social Democrats as well as from the Conservatives.

Dan: To stop these increase from this year.

Dan: And this will happen so what we have heard inefficiently from the relevant.

Dan: Politicians engaged in air traffic.

Dan: And the second element is the.

Dan: We have tool.

Dan: European Airlines have to use.

Dan: Sustainable aviation fuels fuels.

Dan: And there is a ramp up towards from the EU that year by year. These stuff.

Dan: <unk> should increase and on top of this coming from the EU with the German government decided that was the beginning of this year their.

Dan: On top of it so called German.

Dan: Our percentage of additional stuff.

Dan: <unk>.

Dan: And this will also be skipped.

Dan: So that we are on the same level like in the other European.

Elodie Rall: so that we are on the same level like the other Europeans. But I think this is what we can expect realistically, whether they are going for further. perspective and regarding our lobbying activities. We are doing a lot of things together with the airline. But at the end of the day, we are talking about money. And everybody knows about the budget situation of the new government, so I would say the probability that on top of these two topics which I mentioned, the probability is relatively low. And third question, U.S. traffic, U.S. impact. So in the moment, we can't see anything.

Dan: Airlines regarding.

Dan: The soft blend quarter, so to say.

Dan: But I think this is what we can expect realistically whether they are going fulfilled.

Dan: Tax reductions in favor of the aviation industry, and we have to see Oh of course from from a lobbying.

Dan: Prospective and regarding our lobbying activities, we are doing a lot of things together with the airlines.

Dan: But at the end of the day, we're talking about money.

Dan: And everybody knows about the budget situation of the new government. So I would say the probability that on top of these two topics, which I mentioned the probability is relatively low.

Dan: And third question.

Dan: Trafigura is impacted so at the moment, we can see anything to SaaS to do that.

Dan: You can say regarding the summer season, everything is booked so to say.

Elodie Rall: This has to do with that. Let me say we have to see what will happen in autumn, whether there is a continuation of good traffic or not. But in the moment we can't see any... difficulties or problems. But if you have to go through the summer and in autumn then you have to see or to face reality. We are relatively optimistic. Okay, thanks very much.

Dan: So let.

Dan: Let me say if you have to see what will happen in the autumn with quantum.

Dan: Continuation of the good traffic on not but in the moment, we can see here in EU.

Dan: Difficulties appropriately.

Dan: Have to go through the summer and in the autumn then.

Dan: To see or to face reality, but.

Dan: We are relatively optimistic.

Dan: That's our current trend will.

Dan: We'll continue.

Dan: Okay. Thanks very much.

Speaker Change: The next question comes from Christian at Delek UBS. Please go ahead.

Cristian Nedelcu: The next question comes from Cristian Nedelcu, UBS. Please go ahead. Hi, thank you very much for taking my questions. The first one is on the operating cash flow target for 2025, the 1.3 billion euros. I think this is roughly 100 million euros more than in 2024. Now, if we look at Q1, I think even if we exclude this Greek valuable payment that was dragging down your Q1, that implies that you would still need to improve your operating cash flow for the next few quarters by around 150 million to reach your target for the year. So, I guess my question is, can you elaborate on your confidence on reaching this target and maybe offer us a bit more details on the building block?

Christian: Hi, Thank you very much for taking my questions.

Christian: First one is on the operating cash flow targets for 2020 513 billion euros.

Speaker Change: Thanks, This is roughly $100 million euros more than in 2024.

Speaker Change: Now if we look at Q1 I.

Speaker Change: I think even if we exclude this Greek valuable payment.

Speaker Change: That was dragging down your Q1.

Speaker Change: That implies that you would still need to improve your.

Speaker Change: Operating cash flow for the next few quarters by around $150 million to reach our target towards the year.

Speaker Change: So I guess my question is can you elaborate on your confidence on reaching this target that maybe offer us a bit more details on the building blocks.

Speaker Change: The second one looking at Opex.

Cristian Nedelcu: The second one, looking at OPEX in Frankfurt, I believe in the first quarter, your OPEX was roughly 30, 35 million higher year over year. You talked about the wage deal and the impact there. Could you give us an all-in number for 2025 in personnel and other expenses was roughly the incremental OPEX you expect in Frankfurt year over year? And the last one, if I may, the retail spend per pax. You had very strong advertising in Q1, a strong improvement of 10 cents year over year. The shops are a bit lower. Now, looking ahead, I think we are all aware of the stronger euro or the traffic mix, which may be slight headwinds to retail spend per pax for most of the airports out there.

Speaker Change: In Frankfurt.

Speaker Change: I believe in the first quarter. Your Opex was roughly 30 to 35 million higher year over year.

Speaker Change: You talked about the wage deal and the impact there could you give us an all in number for for 2025.

Speaker Change: And in personnel and other expenses, what's roughly the incremental Opex you expect in Frankfurt year over year.

Speaker Change: And the last one if I may.

The retail spend per box you had a very strong advertising in Q1, a strong improvement of 10 cents year over year.

Speaker Change: The shops are a bit lower now looking ahead I think we are all aware of the stronger euro or the traffic mix rich may be slight headwinds to retail spend per box for most of the airports out there could you talk a little bit about the tailwind.

Cristian Nedelcu: Could you talk a little bit about the tailwinds and what helps grow retail spend per pax? And how do you think the overall retail spend per pax growth year over year in 2025? Thank you. Thanks for your question. The first one was regarding operating cash flow and free cash flow for the full year. Let me see. We are influenced heavily by the payment of the variable concession fee regarding our Creek Airport. This is just an element in the first quarter. Now looking forward, we expect a strong summer season, so this will be reflected in good numbers in Q2 as well as in Q3.

Speaker Change: It helps grow retest pump per box on how do you think the overall retail spend per Pax growth year over year in 2025. Thank you.

Speaker Change: Thanks for your question. The first one was regarding operating cash flow and free cash flow for the full year. So in Q1. This was.

Speaker Change: Let me say in.

Speaker Change: Influenced heavily by the by the payment of the variable concession fee regarding Oh.

Speaker Change: Greek airports.

Speaker Change: This is just an element in the first quarter now looking forward, we expect a strong summer season. So this will be reflected in good numbers in Q2 as well as in Q3 coming from the traffic, especially from our traditional.

Cristian Nedelcu: Coming from the traffic, especially from our international activities, but also in Frankfurt, we expect a good summer season always compared to also Q1, and you see in April the numbers are already strong, and let me say this expectation is based on especially on the flight schedule. of the non-Starlines airlines, especially Condor. Condor has increased significantly their capacities here in Frankfurt, and the information what we are going to receive from Condor are very positive. They are happy. They have, they build up a feeder system to reduce the strategic ties, so to say, to Lufthansa regarding feeder traffic, and what we heard, this works very well.

Activities, but also in Frankfurt, we expect a good summer season always compared to also Q1 and you'll see in April.

Speaker Change: The numbers are already a strong <unk>.

Speaker Change: And let me say this expectation is based on the especially on the flight schedule.

Speaker Change: Of the non star lines Airlines, especially Condor.

Speaker Change: <unk> increased significantly their capacities.

Speaker Change: Frankfurt.

Speaker Change: And the information what we are going to receive from condo are very positive they are happy.

Speaker Change: They have a they build up a feeder system to reduce a strategic.

Speaker Change: Ty so to say to Lufthansa regarding feeder traffic in what we do.

Speaker Change: This works very well.

Speaker Change: And that's the reason why we are convinced that the other airlines at Frankfurt Airport are going to bring what they have promised for some of this is a clear.

Cristian Nedelcu: and that's the reason why we are convinced that the other airlines at Frankfurt airport are going to bring what they have promised. for summer, and this is a clear. There is a significant improvement compared to the passenger numbers in last year, and this you will find later on the revenue side and the LPD side. And regarding CAPEX, you. see the numbers in the first quarter, they are absolutely in line with our internal calculations. Now we gave you the positive information, that's the soft opening of Lima. take place in two days, then the final and official opening will happen on the 1st of June, so that this adventure is over and will also lead to a significant reduction of CAPEX.

Speaker Change: And significant improvement compared to the passenger numbers in last year. In this you will find later on on the revenue side and on the on the EBITDA side.

Speaker Change: And.

Speaker Change: Regarding capex you on.

Speaker Change: This is the numbers.

Speaker Change: In the first quarter they are absolutely in line with our internal calculation.

Speaker Change: Now we.

We gave you is a positive information that's the soft opening of E mail.

Speaker Change: It plays in two days.

Speaker Change: Then the final end of official opening will happen on the first of June so that these adventures.

Speaker Change: Adventure as oil and will also lead to a significant reduction of Capex.

Speaker Change: Also the first reduction of Capex amounts regarding terminal three so everything is in line, what we had expected.

Cristian Nedelcu: You see also the first reduction of CAPEX amounts regarding Terminal 3, so everything is in line what we have expected and we are confident to end up with a total CAPEX amount on group level exactly at the end of June. level which we gave you in our guidance 1.0. billion and on the other side regarding working capital, this is always a very complex... thing here we know also, let me say, the seasonality of our work in capital elements. And this combination together leads to the expectation that we are able to exactly fulfill our target and our guidance which we shared with you.

Speaker Change: And I'm confident to end up with a total capex amount on group level exactly at this.

Speaker Change: The level, which we gave you in our guidance one fund.

Speaker Change: And on the other side regarding working capital because it's always a very complex.

Speaker Change: Thing here you know also let me say the seasonality of our working capital.

Speaker Change: Ella mens.

Speaker Change: This combination together.

Speaker Change: Leads towards the year expectation that we.

Speaker Change: <unk> to them exactly to filler fulfill our target and our guidance, which we shared with you.

Speaker Change: Total costs and Frankfurt so in the presentation, we gave.

Cristian Nedelcu: Total costs in Frankfurt, so in the presentation we gave you in guidance what is the outcome. of the wage agreement, so coming from the wage increase, we see an upside of 40 to 50 million. In combination with this, we have also a higher number of employees, especially are primarily in the ground handling segment. and the combination of more employees on one side, higher wages on the other side, based on the actual agreement, led to a total, regarding the site of Frankfurt and three segments, a total personal cost increase of about 100 million, while the material expense increase is very, very low, perhaps 20 million, compared to previous years.

Speaker Change: If you in guidance what is the outcome.

Speaker Change: The wage agreement so coming from pure from the wage increase we see an upside of $40 million to $50 million.

Speaker Change: In combination with this we have also a higher number of employees, especially.

Speaker Change: Yeah.

Speaker Change: Primarily in the ground handling segment.

Speaker Change: And the combination of more employees on one side higher wages on the other science.

Based on the actual agreement led to a total.

Speaker Change: Regarding the side of Frankfurt and three year.

Speaker Change: <unk> segment as a total percent of cost increase of about.

Speaker Change: $100 million.

Speaker Change: The material expense increase is very very low, perhaps 20 million compared to.

Speaker Change: Previous year, so the inflation driven impact coming from the last couple of years it seems to be over.

Cristian Nedelcu: So the inflation-driven impact coming from the last couple of years seems to be over. And so we are relaxed regarding further price increases on the materials. Third question... Retail spend per box, you mentioned the elements, we have three elements. We have the pure spending in the shops. We have... the revenues from the restaurants, food and beverage, and advertisement. So advertisement, let me say, the good progress and increase is continuing. Also, in our restaurants, we see good progress and further increase, also based on additional space or additional restaurants in Terminal 1, Concourse B. And in retail itself, it's more or less flat.

Speaker Change: And so we are relaxed regarding further price increases on the material.

Speaker Change: And third question.

Speaker Change: Retail spend per Pax you mentioned the elements we have three elements.

Speaker Change: If the pure spending in the shops, we have.

The revenues from the rest surrounds for food and beverage.

Speaker Change:

<unk> so advertisement.

Speaker Change: Let me say the good progress and increases are continuing.

Speaker Change: Also in our restaurants, so we see a good progress and further increase also based on <unk>.

Speaker Change: Additionally, the space of additional restaurants in terms of the one con call spear.

Speaker Change: And in retail itself, it's more or less flat.

Speaker Change: This has to do especially with our structural you know that in the summer season, Lufthansa, Kansas The Beijing flight.

Cristian Nedelcu: This has to do especially with our structure. You know that in the summer season, Lufthansa cancelled the Beijing flight. which was not good for us because on this destination we always welcomed a lot of Chinese with deep pockets, so this was not a good structural impact. But due to the fact that when you look back, let me say, we never showed these. friends at our airport showed. So the upside didn't happen. So on the other side... In the moment, we don't see any risk that there will be a downside. So with other words, looking forward.

Speaker Change: Which was not good for us because on these destination and we always will it comes a lot of Chinese with deep pockets.

Speaker Change: It was not a good structural impact.

Speaker Change: But due to the fact that when you when you look back let me say, we never showed this strong increase in the retail numbers.

Speaker Change: Our friends at our airports Charles for the upside didn't happen so on the other sides.

Speaker Change: In the moment, we don't see any risk that there will be a downside so with other words looking forward.

Speaker Change: We expect.

Speaker Change: For the modest or slight increase of all our retail as well as.

Operator: a further modest or slight increase of all our retail as well as advertising numbers. Thank you very much.

Speaker Change:

Speaker Change: Advertising number.

Speaker Change: Thank you very much.

Speaker Change: Okay.

Speaker Change: As a reminder, if you wish to register for a question. Please press star followed by one.

Operator: As a reminder, if you wish to register for a question, please press star followed by 1.

Speaker Change: Next question comes from Andrew Robin Burger Barclays. Please go ahead.

Andrew Lobbenberg: The next question comes from Andrew Lobbenberger, Barclays. Please go ahead. Hi Dan, could you just take us down to Brazil and explain what is happening at Porto Alegre because the floodwaters cleared a while ago and yet if we look over at your good friends from Zurich they continue to be having a ball with Florianopolis and Porto Alegre continues to struggle. So when will you get your traffic back I guess is my basic question. And then could I just ask for a little bit of chat around, a bit of colour around. What we should think in terms of the modeling for the opening of Lima because obviously we were potentially going to have a capital market stay and that didn't happen.

Speaker Change: Oh hi.

Speaker Change: Could you just take us time to Brazil, and explain what is happening at Portola great because.

Speaker Change: The floodwaters cleared a while ago.

Speaker Change: And yet if we look at your good friends from Silver Lake They continue to.

Speaker Change: Having a bowl with Florianopolis in Porto electric continues to.

Speaker Change: To struggle so a.

Speaker Change: When will you get your traffic back I guess as my basic question.

Speaker Change: And then could I, just ask for a little bit of chatter around a bit of color around.

Speaker Change: What we should think in terms of the modeling for the opening of the Memphis, because obviously, we were potentially going to have a capital markets day and that didn't happen.

Speaker Change: How much depreciation comes in how big of an increase in retail might we expect.

Matthias Zieschang: So, how much depreciation comes in? How big an increase in retail might we expect? for LIMA. And then, how optimistic are you? I mean, Lufthansa seem quite confident that they get a good lump of 787s in the summer or summer towards the autumn. What's that going to do for you guys? Perhaps starting with the last one, because your answer is very simple. We know that, first of all, we know 6 A350s are coming, so this is a clear commitment. We know that also up to, I think, 10 787 should come. And, uh, but the question is...

Speaker Change:

Speaker Change: For three months.

Speaker Change: And.

Speaker Change: And then helps Mr call you I mean, lufthansa seem quite confident that they get the good lump of 780 Sevens.

Speaker Change: And this summer.

Speaker Change: Towards the autumn.

Speaker Change: What is that can I do for you guys.

Speaker Change: So perhaps starting with the last one because the answer is very assume though we know that first of all you know six <unk> hundred <unk> are coming. So this is a clear commitment. We know that also up to I think 10 787 should come.

Speaker Change: And but the question is.

Speaker Change: And this is the open question, how many old aircraft will be taken out from Lufthansa and this is a question, which we always.

Matthias Zieschang: And this is an open question, how many old aircraft will be taken out from Lufthansa? And this is a question which we always... bring so to say to Lufthansa but we didn't receive any answer. So with other words I believe that they internally also do not know what they are going to do. I think they are looking what are the booking numbers and the systems, how is the demand and then they are week by week deciding later on when the aircrafts are here whether they take out old ones or not. So this is a question mark and we cannot give you an answer and we did not get an answer from.

Speaker Change: Brings so to say to lift one of them, but we didn't receive any answer so with other words I believe that they internally also do not know what theyre going to do I think they are looking what are the booking numbers in the systems. How is the demand and then they are week by week deciding later on when the.

Speaker Change: Aircrafts are here.

Speaker Change: Either they take out the old ones are not so this is <unk>.

Speaker Change: Western Mark and we cannot give you.

Speaker Change: And ensign.

Speaker Change: Did not get an answer from the tunnel as.

Susan: As always so Susan nothing new so regarding <unk>.

Matthias Zieschang: As always, so this is nothing new, so regarding Brazil, so we, first of all, looking forward for the rest of the year, we are, we have our financial plans, we are happy with the plans and we are absolutely confident that at the end of the day we will achieve our numbers. Starting with Fortaleza, we had in... In last year we had 5.7 million passengers and in this year we expect a significant increase compared to last year. So clearly more than 6 million passengers, which is good, which would be a strong strong increase compared to previous years.

Susan: So we.

Susan: First of all we're looking forward for the rest of the year, we have our financial plan.

Susan: We are happy with our plans and we are absolutely confident that at the end of the day, we will.

Susan: To achieve our numbers.

Susan:

Susan: Starting with <unk>, we hit in.

Susan: And last year, we had 5.7.

Susan: Literally in person dress.

Susan: And.

Susan: This year, we expect a significant increase compared to last year. So clearly more than 6 million passengers, which is good which would be as strong.

Susan: Strong increase compared to previous year, So Fortaleza is absolutely fine.

Matthias Zieschang: So FOTA laser is absolutely fine. And second, we switch over to Porto Alegre. You mentioned the flooding and the closure of the airport. So we came. Let me say, in former years, for example in 2019, we had about 8 million passengers. Then in last year, because for six months the airport was closed, we went down to 3.9 million. Then we restarted the airport and of course it takes time for the airlines to bring back exactly this traffic. what they had in last year but from a today's perspective I am regarding the full year I am expect more than 7 million passengers at Porto Alegre and this would be a very good recovery and close to the to the very high number coming from 2019, which is always our benchmark level.

Susan: And secondly, we switch over to.

Speaker Change: <unk> you mentioned, the flooding and the closure of yes Paul.

Susan: So we and we came.

Susan: Or let me say it in former years in for example, 2019, we had about 8 million passengers.

And in last year, because for six months, but was closed.

Susan: We went down to three 9 million and then we restarted the airport and of course, it takes time for the airlines to bring back exec visitor traffic.

Susan: What they what they hit in last year, but from today's perspective, I am regarding the full year iron <unk>.

Susan: Expect more than 7 million person dress.

Susan: Lisa.

Susan: And it would.

Susan: Would be a very good recovery in close to the.

Susan: To the very high number coming from from 2019, which is always our benchmark level.

Susan: So just to be clear, that's really going to come right because it didnt kick up very much in April to date.

Matthias Zieschang: So, just to be clear, that's really going to come late, right? Because it didn't kick up very much in April, did it? Yes, yeah, yeah. You have to remember, let me say, these airports do not have the same seasonality which we have in Europe with summer and very high and so on. It's more, let me say, the regular seasonality is relatively flattish. Yeah, but month by month we expect a higher recovery and again for the... The actual and latest outlook traffic-wise is more than... 7 million for the video. Lima. We, first of all, the opening dates are well known, so...

Susan: Yeah, Yeah, Yeah, do you have to remember.

Susan: Let me say these airports do not have the same seasonality.

Susan: Which we have in Europe, with some very high and so on it's more.

Susan: Let me say the regular seasonality.

Susan: It is relatively flattish.

Susan: And.

Susan: Yes.

Susan: <unk> by month, we expect.

Higher recovery and again for the.

Susan: The actual and latest outlook traffic wise, it's more than.

Susan: 7 million okay.

Susan: Demos.

Susan: Lima.

Susan: We.

Susan: First of all the opening dates are well known so.

Susan: This week soft opening and.

Matthias Zieschang: This week soft opening and 1st of June official opening with the president. So this is now finally, and it's good that it is finally, and then the DNA started, and based on a rep of about one billion, and we are going, of course, we have a lot of components inside the airport, but on average, you can take a depreciation time of 25 years, so with other words, The investment is about 40 million crowns. And regarding retail, we have a huge increase of the retail space. Spending behavior is always good in Lima, from both sides, retail as well as food and beverage.

Susan: The first of June official opening with the president.

Susan: This is now finally and it is good that it is finally and then.

Susan: He and a start it and based on the ramp of about $1 billion.

Susan: We are going of course, we have a lot of components inside the airport, but in average you can take in depreciation time over 25 years, so with other words the.

Susan: Determined or induce depreciation of these.

Susan: Our investment is about $40 million per annum.

Susan: And regarding retailer.

Susan: We have a huge increase of the retail space spending behavior is always good an email from both sides, so retailers as well as food and beverage we have a lot of Americans.

Susan: Transfer passengers always eating and drinking.

Matthias Zieschang: We have a lot of Americans there as transfer passengers, always eating and drinking. So we expect a clear upside on spending. the retail side, as well as a further clear upside on the passenger side. And you have to see when you look on the first three or four months, the passenger growth rates have been very good despite the fact that we managed the traffic in the old exhausted terminal. And now you could a little bit see the potential, what we have and what we see in Lima looking forward. And the last effect is that in the past for the transfer passengers there was no fee for the international transfer passengers.

Susan: So.

Susan: We expect our key upsides on.

Susan: The retail side.

Susan: Well as in clear further.

Susan: Upsides.

Susan: On the passenger side and you have to see when you look on the first three of four months passenger growth rates have been very good. Despite the fact that you manage the traffic and the old exhausted.

Susan: I'm here now.

Susan: A little bit to see the potential of what we have and what we see in the mall.

Susan: Looking forward and the last effect is set in the past for the transfer passengers. There was no fee for the international transfer passengers.

Susan: And.

Susan: That point of time, when we have.

Matthias Zieschang: At that point of time when we have the transfer from the old to the new terminal, we are going to collect also a fee for the transfer passengers, which is a further upside in the aviation segment of this airport. Thank you, that's helpful. You're welcome.

Susan: The transfer from the old and the new terminal Youre going to collect a fee for the transfer passengers of interest for all the upsides.

Susan: In the aviation segment of this airport.

Susan: Thank you that's helpful.

Susan: Welcome.

Graham Hunt: The next question comes from Graham Hunt from Jefferies. Please go ahead.

Graham Hunt: The next question comes from Graham Hunt from Jefferies. Please go ahead. Yeah thanks very much for the questions. Maybe just two from me. First one on coming back to staff costs. Just wondered if you could speak a little bit more on the headcount number and what your expectations are for the rest of the year and then maybe into next year as Terminal 3 opens. The agreement locked in now, but the headcount still seems to be creeping up. And then, second question, just around ground services, or sorry, ground handling, the revenue numbers there seemed a little bit higher than I was expecting, even notwithstanding the agreed fee increases you have on the infrastructure there, so just wondered if there were any one-offs in the revenue for ground handling in Q1.

Speaker Change: Yeah, Thanks, very much for the questions.

Speaker Change: Maybe just two from me first one on coming back to staff costs, just wondered if you could speak a little bit more on the head count number and what your expectations are for the rest of the year and then maybe into next year.

Susan: As Tim three Athens.

Susan:

Susan: How close are you to.

Susan: Kind of a stable stable more stable level of numbers that I have.

Susan: Appreciate your thought there.

Susan: The agreement locked in now, but the head count still seems to be creeping up and then a.

Susan: Second question, just around ground services, and Olga sorry ground handling the revenue numbers that seemed a little bit higher than.

Susan: I was expecting even notwithstanding.

Susan: The agreed fee increases you have on the infrastructure. The answer just wanted if there are any one offs in the revenue that's the ground handling in Q1.

Susan: Yeah, starting with head count as you said kind of clauses related also to our crown services activities. So when you look on the number of full time equivalents went up.

Matthias Zieschang: We are starting with headcount, and this headcount of course is related also to our ground services activities. So when you look on the number of full-time equivalents, this went up. And this has primarily to do with the staff in ground services. Let me say the number of employees on ground services, of course, is related. to the expected passenger numbers. This is based on the information and indications which we are going to receive from the airlines. And going more or less two years back into the past, there have been a lot of complaints from our main customers that they have been, that Lufthansa would have been constrained by our ground handling activities because wouldn't been able to ramp up as fast as possible and that's the reason why Lufthansa couldn't show the growth which they tried and intended to show.

Susan: And this is primarily to do with the staff in ground services and the grounds.

Susan: Let me say that the number of employees on Crown services of course is related to.

Susan: Towards the expected passenger numbers and this is based on the information and indications.

Susan: Which we're going to receive from the airlines and.

Susan: Going more or less two years back into the past they have been a lot of complaints from our main customer that they have been that lufthansa would have been constrained.

Susan: Our ground tending activities because we.

Susan: We wouldn't been able to ramp up as fast as possible and that's the reason why lufthansa could control the growth, which they tried and intended to show and there was a lot of pressure on us to speed up with recruiting more employees and ground handling to go for qualifications for these people.

Matthias Zieschang: And there was a lot of pressure on us to speed up with recruiting more employees and ground handling to go for qualifications for these people. And we did a lot of effort to increase the number and now we are at a point of time where we can say mission accomplished. So we have exactly this number of employees which is able to handle this amount of passengers which was given us one year ago and this was much higher than what is now a reality. In other words, and to make the long story short, in the moment we are overstuffed, And we have to react, because the number of passengers is lower than this, what was indicated from the...

Susan: And we did a lot of effort.

Susan: To increase the number and now we're at a point of time, where we can say mission accomplished so we have exactly these none.

Susan: <unk> employees, which is able to to hand.

Susan: These amount of passengers rose, which was given us one year ago and this was much higher than just what is now a reality so with.

Susan: Other words to make the long story short in the moment, we are overstocked.

Susan: And we have to react because the number of personnel trust is lower than this what was indicated from the yellow.

Susan: All we have to readjust in a way that we are using natural fluctuation to bring down the number of employees and we have to.

Matthias Zieschang: And now we have to readjust in a way that we are using natural fluctuation to bring down the number of employees and we have two levels or two sources on one side, employees which we are going to receive from external service providers. And this is one element, and we are reducing these external workers, but we also now are going to... to reduce our own employees because we are, we have... traffic volume which is significantly lower than this, what was expected 12 or 18 months. And in the moment, let me say our. Our productivity numbers are spoiled by this overshooting of the staff.

Susan: There were also two sources on one side.

Susan: <unk>, which we are going to receive from external service providers.

Susan: And this is one element.

Susan: We are reducing these external workers.

Susan: You also now are going to.

Susan: To reduce our own.

Susan: Employees, because we do have.

Susan: Traffic volume, which is significantly lower than.

Susan: What was expected 12, or 18 months ago and in the moment, let me say our.

Susan: Our productivity numbers are spoiled by these overshooting of this stuff.

Susan: Here, we have to show reactions and we have a ping on this lever toward to bring down the fallen vehicles as well as our own let me say in.

Matthias Zieschang: And here we have to show reactions. And we are working on this level to bring down the foreign workers as well as our own, let me say. in a reliable mode, so to say, to stabilize and to improve our cost basis while the revenue side is relatively okay. You can see the increase is relatively good, but we have some problems on the cost side and the cost side means personal expenses. And here we have to put all the emphasis and all the effort now to have a higher productivity and the only level is to reduce.

Susan: And reliable mode, so to say to stabilize and to improve our cost basis. Why is the revenue side is relatively okay.

Susan: And you can see the increase is relatively good but we have some problems on the cost side on the cost side means our personnel expenses.

Susan: To you we have to put all the emphasis in all of it.

Susan: The effort now to have a higher productivity and the only lever as to where to reduce.

Susan: The number of employees. That's also will be the level to bring back ground tending survey services into the black numbers.

Matthias Zieschang: the number of employees and that's also will be the lever to bring back ground-tending services into the black market. Yeah, regarding... The pricing, we have two elements. We have the central infrastructure which covers more than 50% of the total revenue of this segment. Here we are fine with a price increase of 7.8% up of the 1st of January this year and already looking forward into the year 2026. you will see a further price increase in the central infrastructure, which is higher than the 7.8% which you saw. in this year. So we have already good price increases and we are going to continue with even higher price increases in 2021.

Susan: And.

Susan: Yeah regarding.

Susan: What was it.

Susan: Pricing.

Susan: We have two elements, we have the central infrastructure, which covers more than 50% of the total revenue of the segment here, we are fine with a price increase of 7.8.

Susan: 8% up off the first of January of this year.

Susan: And already looking forward into the year 2026.

Susan: You will see a further price increase in the central infrastructure.

Susan: Which is higher than the seven 8%, which you saw.

Susan: And this year. So we have already good price increases and we're going to continue with even a higher price increases in 2006.

Susan: Second subsegment so pleasant.

Matthias Zieschang: In the second sub-segment, so peasant ramp services. And here we have two-thirds of our revenue coming from Lufthansa, one-third from other airlines. With a one-third from other airlines, we are always able to bring through relatively good price increases. So we are also fine and feel comfortable with the price level, but we have a problem with the existing contract with Lufthansa because in this contract we have a price increase per annum of a little bit more than 2%, exactly 2.2%, which when we signed the contract was fine because it was more or less the level of the anticipated and expected inflation rate.

Susan: Ramped services.

Susan: And here, we have two third of our revenue coming from Lufthansa one third from other airlines.

Susan: With a one third from other airlines, we are always able to bring through relative.

Susan: Relatively good price increases we are also fine and feel comfortable with the price level.

Susan: We have a problem with the existing contract with Lyft on a lumpy calls in this contract we have a price increase per annum.

Susan: A little bit more than 2% executive two 2%, which when we signed the contract was fine because it was more or less the level of the anticipated and expected inflation right now even though it was wrong because wages.

Matthias Zieschang: Now we know it was wrong because wages developed much higher and we have to look forward when we have the new contract with Lufthansa, then we will see up from the first step a significant higher price level covering then the increased wages on the other side. So these are the levers. The main lever is productivity, productivity means reduction of employees and also pressure on prices, central infrastructure next year more than 7.8% plus in the following year then a significant price increase. with the Lufthansa company. So just to confirm, I see sort of over 10% revenue increase in ground services all comes from the one-third of airlines not covered by the Lufthansa contract?

Susan: Even though a much higher and we have to look forward. When we have a new contract with Lufthansa then we will see up from the first step is significant higher price level covering then the increased wages on the other side. So these are the levels main levers productivity.

Susan: <unk> productivity means reduction of employees.

Susan: And also a pressure on prices central infrastructure next year more than seven 8% plus in the following year, then a significant price increase.

Susan: With Lufthansa contract.

Susan: So just to confirm so you'll.

Speaker Change: I see sort of over 10% revenue increase in ground services will come from the one set of airlines not covered by the Lufthansa contract exactly.

Speaker Change: What I mentioned, we have 50% of the revenue side increased by seven 8%.

Matthias Zieschang: Exactly. What I mentioned, we have 50% of the revenue side increased by 7.8%. one-third of the remaining 50% more or less the same price increase coming from other airlines and price increases and then we have two-third of the remaining other 50% of revenues is the Lufthansa contract and here we have just a 2.2% price increase here by year. Thank you very much.

Susan: One third of the remaining 50% more or less the same price increase coming from other.

Susan: Other airlines and price increases and then we have to start of the year remaining how about 50% of revenue as they look to under contract here.

Susan: We have just two 2% price increase year by year.

Susan: Very clear. Thank you nominate and this is all a problem.

Susan: Thanks.

Speaker Change: The next question comes from Dod Human Dorian Bnb Paribas. Please go ahead.

Dario Maglione: The next question comes from Dario Maglione, BNB Paribas. Please go ahead. Hi, good afternoon. I have two questions. One on free cash flow guidance. which you kept it close to a breakeven consensus is a minus 117 million for the full year 25. So my question is how close do you think you will be to breakeven? in 2025. And then the second question is on CAPEX. As you mentioned earlier, the CAPEX for Terminal 3 and for Lima is already coming down year-on-year. What should we expect in terms of the phasing of this CAPEX? What should we expect in Q2 and Q3?

Speaker Change: Hi, Good afternoon, I have two questions one on free cash flow guidance.

Susan: You kept it close.

Susan: Close to breakeven.

Susan: Consensus is N minus one.

Susan: $17 million for the full year 'twenty five.

Susan: So my question is how close do you think it will be to breakeven.

Susan: In fact 75.

Susan: And then the second question is on Capex as you mentioned earlier.

Susan: The Capex terminal three and four Lima is already coming down yes.

Susan: Year on year.

Susan: What should we expect in terms of the phasing of these capex what should we expect in Q2.

Susan: Thanks.

Susan: Your first question of course target is breakeven and to close as close as possible to break even and if you you mentioned your consensus number.

Dario Maglione: Thanks. Yeah, first question, of course, target is break even and to close as close as possible to break even. And if you mentioned the consensus number, I don't know whether we have the same number internally. I'm looking to my colleagues here. But of course, let me say this gap to break even for us is too big. And again, our target is to come very, very close to breakeven, closer than the 117. And second question phasing of CAPEX, I think the best start is looking on our slide on page seven in the presentation. You can see for three months LIMA CAPEX.

Susan: I don't know.

Susan: Number internally I'm looking to my colleagues here, but of course. This let me say this get to breakeven for us is to too big.

Susan: And.

Susan: Again, our target is two two.

Susan: Hum.

Susan: Very very close to breakeven to closer than the $117 million.

Susan:

Susan: Christian phasing of Capex.

Susan: Things the best start is looking on a slide on page seven in the presentation.

Susan: You can see for three months Mark Opex.

Susan: And you see them than terminal three was 116.

Dario Maglione: And you see then Terminal 3 with 116 million and let me say if you look now the remaining three quarters and also based on our statement that in... September-October the construction is more or less finalized. Then we have... Afterwards, let me say, a clear reduction of the capex amount, so with other words, in Q2 and Q3, it's a continuation of Q1. and then there should be a step down in Q4. And regarding Lima, you see the 46 million in Q1. We have to see now... the final, so to say, bill from the construction company, change requests, which are always embedded in the final account, and long-lasting discussions with the construction company, which is normal when a project is finalized.

Susan: And let me say if you look now through the remaining three quarters and also based.

Susan: On our statement that in.

Susan: September October.

Susan: The construction is more or less finalized.

Susan: And we have.

Susan: Afterwards, let me say a clear reduction.

Susan: Off.

Susan: The Capex amounts are with other words in Q2, and Q3 is a continuation of Q1.

Susan: And then there.

Susan: There should be a step down in Q4.

Susan: And regarding the email.

Susan: Youll see the $46 million in Q1.

Susan: We have to see now.

Susan: The final sort to say bill.

Susan: From the construction company in change requests, which all always embedded in the final account and long lasting discussions of the construction company, which is normal.

Susan: And the project is finalized so and Youll see our our guidance, which we gave at the beginning of the year, which you can see on slide.

Dario Maglione: So, and you see our guidance, which we gave in the beginning of the year, which you can see on slide. Slide 22 and in principle I can say there is no change. With other words, if you took now the CAPEX outflow in Q1, and you're going to, on slide 22, where you see the final numbers for the full year, if you deduct from these numbers the realized numbers from Q1, then you see the residual remaining CAPEX for Q2 to Q4. It's very simple. Okay, and just a follow-up on Lima, wasn't it an EPC contract? So kind of fixed price, so there is no risk of big capex overrun?

Susan: Uh huh.

Susan: Yes.

Susan: Slide 22, and in principle I can say.

Susan: No change.

Susan:

Susan: With other words.

Susan: If you took no.

Susan: The Capex outflow in Q1, and you are going to Oh, I'm on slide 22, where you'll see the final numbers for the full year. If you deduct from these numbers a year.

Susan: The realized numbers from Q1, and you will see the residual remaining capex for Q2 to Q4.

Susan: Very simple.

Susan: Okay, and just a follow up on Lima wasn't it.

Susan: We see content.

Susan: So kind of space.

Susan: So there is nobody's called the peak.

Susan: Capex for all of them.

Susan: [laughter] yeah absolutely.

Dario Maglione: Yeah, you absolutely are. First of all, it's EPC and this is good that it is EPC, but nevertheless, even in each and every EPC in the world regarding each and every infrastructure project, there are always some remaining discussions. The difference is if you don't go for an EPC contract, you have 20, 30, 50 discussions with different providers, and here you have just one, but nevertheless, at the end of the day, always some topics which are under discussion, so to say. Thank you. This is normal. This is, let me say, under control, and there will be no surprise.

Susan: It's at its EPC and this is good that it is EPC, but nevertheless, even in each and every EPC and the rules regarding each and every infrastructure project.

Susan: There is some remaining discussions the difference is if you don't go through an EPC contract you have 2030 50.

Susan: Discussions with.

Susan: Different provide us yoga, if just one.

Susan: At the end of the day always some topics.

Susan: Which are under discussion so to say.

Susan: Okay.

Susan: Oh Man. This is let me say under control and there will be no surprise and don't expect any negative surprise everything is under control.

Marcin Wojtal: And don't expect any negative surprise. Everything is under control. Thank you. Thank you so much. The next question comes from Marcin Wojtal, Bank of America, please go ahead. Yes, good afternoon. Thank you for taking my questions. Firstly, could you comment a little bit on the outlook for your assets in Greece? for 2025. What are you assuming? Are you seeing any slowdown in the remainder of the year? And my second question is on dividends that Fraport Greece pays to Fraport AG, but also to minority shareholders, which I think is 35% by the other shareholders. So do you expect any dividends from Greece to actually go to minorities of that entity in 2025?

Susan: Thank you.

Susan: If somebody says.

Martin: The next question comes from Martin <unk> with Bank of America. Please go ahead.

Martin: Yes. Good afternoon. Thank you for taking my questions.

Martin: Firstly could you comment a little bit on the outlook for your asset Greece for.

Martin: For 2025, what are you assuming are you seen any slowdown.

Martin: In the remainder of the year.

Martin: And my second question is on dividend that Rockford, Greece pace to two Fraport AG, but also to minority shareholders.

Martin: I think it's 75% it sounds like the way the other shareholder. So do you expect any dividend from Greece to actually go to minority Oh.

Martin: Of that over that entity in 2025. Thank you.

Martin: First question was regarding traffic.

Marcin Wojtal: Thank you. Your first question was regarding traffic. And here I have so far good information for you that our traffic guidance was always wrong. We are always underestimating the realized traffic, which is good. So in reality, the traffic was always, in the last couple of months. And we had in last year, we had exactly 36 million passengers. And the big and good question is, what do we expect in this year? Of course, internally, we expect a positive, again, a positive growth of passengers. And when you look on the current number and the April figures which we showed on our second slide, and I'm now going to this slide, you see 4.9 percent, we had in the first three months we had positive growth without Easter, then there was Easter holidays in April and another 4.9 percent.

Martin: So far good information for you.

Martin: Our traffic guidance was always strong.

Speaker Change: Yeah always.

Speaker Change: Estimating the realized traffic, which is good so in reality the traffic was always in the last couple of years was always better than this would be projected in our financial plans.

Speaker Change: We had in last year, we had exactly 36 million passengers and.

Speaker Change: The Big and good question is what do we expect in this year of course.

Speaker Change: Internally, we expect.

Speaker Change: The positive again that positive growth of passengers.

Speaker Change: And when you look on the current number in the April figures, which we showed in our.

Speaker Change: Second slides.

Speaker Change: I'm now going to the slide you'll see.

Speaker Change: <unk>, 9%.

Speaker Change: In the first three months, we had positive growth without Easter than there was the Easter holidays in April and another four 9% and this gives us confidence that this year will again, a good year in Greece, we hear from all airlines that they'll always happy to fly to crease, because theyre booking number.

Marcin Wojtal: And this gives us confidence that this year will again be a good year in Greece. We hear from all airlines that they're always happy to fly to Greece because their booking numbers are good. So the hotel owners are satisfied in Greece. So with other words, there's headroom for... a very good season again. And always regarding the EBDA, you know, we we have in so far disadvantage in this year that there's no discontinuation and no continuation of the COVID compensation. Last year we received 28 million. So we have to to to recover or compensate these 28 million which went directly into the EBDA level in 24.

Speaker Change: Those are good so the hotel owners are.

Speaker Change: Satisfied in Greece, or with other words, we there's headroom.

Four.

Speaker Change: A very good season again.

Speaker Change: And always regarding the EBITDA you know we haven't so far disadvantage in this year that theres no discontinuation and a continuation of the global compensation last year, we received 28 million. So we have to.

Speaker Change: To to recover our compensate is $28 million, which went directly into the EBITDA level in 'twenty four but regarding Greece.

Marcin Wojtal: But regarding Greece, I'm very optimistic and looking what will be the final LBDA in this year. And this will not far away from the 24 numbers, which would be very good because, again, we have to compensate 28. for the COVID. Dividend, we, in the last couple of years, we, every year... We receive dividends. And then it's pro rata. So let me say based on our shareholding, so the number in the supervisory board, we are deciding how many dividends should be distributed. And then based on the percentage of the shares which you're owning, you are receiving your share of dividends.

Speaker Change: Very optimistic and looking what will be the final EBITDA in this year.

Speaker Change: And this will not far away.

Speaker Change: From the 24 hour numbers.

Speaker Change: Rich.

Speaker Change: It would be very good because again, we have to compensate $28 million.

Speaker Change: The COVID-19.

Compensation.

Speaker Change: Dividend we are in the last couple of years, we every year.

Speaker Change: We and we received dividends.

Speaker Change: And then it's Paul I'll also say based on our shareholding so the number.

Speaker Change: And the supervisory board, we are deciding how many dividends should be distributed and then based on the percentage of the shares which are.

Speaker Change: Owning you were receiving.

Speaker Change: Your share of dividends and what was your question how many of this.

Marcin Wojtal: And what was your question? How many of this? will be or would be well what is what is the formula that you're using it is based on net profit what is the payout so that we can somehow model it Yes, to model is relatively simple. Internally, we are looking what is the amount of cash, and let me say the conviction of the shareholders, or not the conviction, the mechanism is that we are looking what is finally as cash in the P&L, and not 100% because you always need some cash for working capital changes, etc. But let me say 80-90% of the cash position will be distributed to the shareholders.

Speaker Change: We'll be or would be what is what is the formula.

Speaker Change: Because it would break them, they're roughly equal pay out so that we can model it.

Speaker Change: Yeah, Yeah, two model is relatively soon.

Speaker Change: Internally, we are looking but what what is the amount of cash.

Speaker Change: And let.

Speaker Change: Let me say the conviction of the shareholders are not the conviction that the mechanism is that we are looking what is finally here.

Speaker Change: S as cash.

Speaker Change: In the P&L and not 100% because you always need some cash for working capital changes et cetera, but let me say, 80% to 90% of the.

Speaker Change: Our cash position will be distributed to the shareholders.

Speaker Change: But.

Speaker Change: Whatever it is there's no formula no no plan looking but.

Patrick Kroyzet: Very simple. Whatever it is, there is no formula, no plan, we are looking what... How much cash do we have? Very clear. The next question comes from Patrick Kroyzet, Goldman Sachs. Please go ahead. Hi Matthias, just two questions. First on NetDebt, is it fair to conclude that Q1 2025 NetDebt marks the peak? I mean, just if I look at your full year guidance, that's... It seems to imply, I think, a bit of front-loading of cash costs, essentially, into Q1. So, it's fair to say that, you know, this marks a net debt peak, and from here, it's basically deleveraging.

Speaker Change: How much cash will be at.

Speaker Change: Very clear.

Speaker Change: Okay.

Speaker Change: The next question comes from Patrick <unk> at Goldman Sachs. Please go ahead.

Speaker Change: Just two questions.

First one on net debt is it fair to conclude that Q1 25 net debt marks the peak I mean, just if I look at your full year guidance.

Speaker Change: So it seems it seems to imply a bit of frontloading of Cashcall century into Q1. So that's.

Speaker Change: Is it fair to say that you know the smacks of net debt, peaking from here it's basically.

Speaker Change: Basically deleveraging and then the other question just coming back to traffic I mean, you know you mentioned five cent traffic in April with the Easter shift, but when we look at airline schedules. They point to if anything stronger growth in May June probably in the range of five to six.

Matthias Zieschang: And then, the other question, just coming back to traffic, I mean, you know, you mentioned 5 cent traffic in April, because you have the Easter shift, but when we look at airline schedules, they point to, if anything, stronger growth in May, June, probably in the range of 5 to 6. Do you share that view, in terms of the near-term outlook on traffic growth? Thank you. First topic, net, now the 8.6 is a peak, and now it will go down, down to our guidance of about 8.4 billion, so PMF. and growth rates. I assume you are focusing on Frankfurt with a five to six percent.

Speaker Change: Do you share that view in terms of the near term outlook on traffic growth. Thank you.

Speaker Change: Plus topic net now the $8 six is a peak.

Speaker Change: Now it will go down down to our guidance of about $8 4 billion P M message.

Growth rates I assume you are focusing on Frankfurt was a 5% to 6% isn't correct correct, yes exactly.

Matthias Zieschang: Is it correct? Yeah, correct. Yeah, exactly. Let me say, the elephant in the room is always Lufthansa. Lufthansa covers two-thirds, or Lufthansa with their... with Austria and Switzerland, et cetera, and all their subsidiaries, they are relevant for more than 60% of the traffic. And I think we have a clear indication of the traffic growth of all the other airlines, which is very good. But if you have a very good number times one-third of your total market share, it's always a limited number. And if Lufthansa is growing zero or is growing 3%, this has a strong impact of the whole And again, so we have problems to Calculate.

Speaker Change: Got it.

Speaker Change: This.

Speaker Change: Let me say the elephant in the room is always Lufthansa.

Speaker Change: Of course.

Speaker Change: Lufthansa colors to felt.

Speaker Change: We've done that with them.

Speaker Change: Austrian and Swiss et cetera, and all that.

They're a subsidiary say irrelevant for more than 60% of the traffic.

Speaker Change: And I think we have a clear indication of the traffic growth of all the other airlines, which is very good.

Speaker Change: But if you have a very good number times one third of your total market share. It's always limited number and if Lufthansa is growing zero is growing 3%. This is a strong strong even pits impact of solar traffic and again so.

Speaker Change: So we have problems to them.

Speaker Change: To calculate.

Speaker Change: What are the offer capacities of rooftop solar in the coming months and this has to do with the new aircrafts and taking out or not taking out of old ones.

José Arroyas: What are the offered capacities of Lufthansa in the coming months? And this has to do with the new aircrafts and taking out or not taking out of old ones. This is the question mark. So it's very difficult for us now to give you a precise answer. Thank you. Once again, if you would like to ask a question, please press star followed by 1. The next question comes from Jose Arroyas, Santander. Please go ahead. Hello, Matthias. Just a couple, if I may. On Lima, I'm aware the concession ends in 2041, but I know there is an option to extend it to 2051.

Speaker Change: Is the question Mark So it's very difficult for US now to give you a precise answer.

Speaker Change: Thank you.

Speaker Change: Once again, if you would like to ask a question. Please press star followed by one the next question comes from.

Speaker Change: Santander. Please go ahead.

Speaker Change: Hello, Mike.

Speaker Change: If I may.

Speaker Change: E Mail.

Speaker Change: Where's the concession ends in 2041, but I know there is an option to extend it to 2051.

Speaker Change: But I wanted to understand what needs to happen and before this.

José Arroyas: But I want to understand what needs to happen before this extension becomes unconditional, and I was wondering if the timely delivering of the new infrastructure at the airport may help you in making 2051 the final date. That's question number one. Question number two, I wanted to come back to the question of headcount increases. Earlier, you dealt with the issue from the point of view of the ground handling business, but I was wondering why the employees in the aviation business also went up by 6%. Is it in anticipation of higher traffic, in anticipation of the need to improve the quality of service, or do you think this number will need to come down in the coming quarters?

Speaker Change: Pension becomes unconditional and I was wondering is that they need the liberation of the new infrastructure at the airports may help you in making 30 51 the final date.

Speaker Change: Question number one question number two I wanted to come back.

Speaker Change: To the question of headcount increases at Alere you.

Speaker Change: Does the ways that they're useful from.

Speaker Change: The point of view of.

Speaker Change: On the business, but I was wondering why the employees in the aviation business also went up by 6% CPI in anticipation of higher Duffy the space one of them.

Speaker Change: The need to improve the quality of service or do you think this number will need to come down in the coming quarters. Thank you.

Speaker Change: First of all I think selectively.

Matthias Zieschang: Thank you. First of all, I think it's relatively clear that we are going to use the option. We are always going to use options. That's the reason why we have options. And I think the option was a result of some delays coming from, you know, on the concession agreement they had to deliver the land and over years the government was not able to deliver the land and... So there was an arbitration, so to say, and as a compensation. For this, we received an option, an extension of the option. So this is pure money, and we are going to...

Speaker Change: Relatively clear that youre going to use the auction.

Speaker Change: Please go into use options.

Speaker Change: The reason why we have options.

Speaker Change: And I think the option was a result of some delays coming from nowhere on the concession agreement they had to deliver the lands' end over a year. So the government was not the Eva.

Speaker Change: To deliver the land and.

Speaker Change: So that was an arbitration so to say and.

As a compensation for it.

Speaker Change: We received an option and an extension of absorption. So he is just pure money in vehicle into English.

Speaker Change: And regarding.

Matthias Zieschang: and regarding... full-time as an FTE increase in aviation. This is absolutely clear, 100% in anticipation of Terminal 3, because Terminal 3 is much bigger than T2. And therefore, you need more employees. You cannot come four weeks before opening. So already now, aviation is doing the recruitment process to have the The right number of employees and also the qualified guys, let me say exactly at that point of time when we are going to open terminal. The next question is a follow-up question from Christian Nedelcu, UBS. Please go ahead. Thank you very much. A few left on my side and thank you for giving me the chance to come back.

Speaker Change: Full time or FTE increase in aviation.

Speaker Change: Absolutely clear.

Speaker Change: 100% in anticipation of telling the story goes total III is much bigger than tier two and therefore, you need more employees.

Speaker Change: You cannot come four weeks before opening so already now.

Speaker Change: Obviation is doing the recruitment process to have the.

Speaker Change: So right number of employees and also the qualified guys.

Speaker Change: You say exactly at this point of time, when you are going to open telemetry.

Speaker Change: The next question is a follow up question from Kristen as alcohol UBS. Please go ahead.

Speaker Change: Thank you very much have a few left on my side and thank you for giving me the chance to come back.

Speaker Change: Net income in Antalya, sorry in Q1 a bit weaker.

Cristian Nedelcu: The net income in Antalya, we saw in Q1, a bit weaker. How do you think about the dividend that Antalya can pay this year versus last year or any indication? Secondly, you have quite a lot of excess cash liquidity versus the pre-COVID times. So, what's your latest thinking in terms of utilizing some of this cash liquidity to retire debt that is maturing? Because that will give you some savings on the interest cost side. The third one is on the load factors in Frankfurt. Correct me if I'm wrong, but I think year-to-date they are a bit down year-over-year.

Speaker Change: How do you think about the dividend you can pay this year versus last year or any indication.

Speaker Change: Secondly, you have quite a lot of excess cash liquidity versus the pre Covid times.

Speaker Change: So what's what's your latest thinking in terms of utilizing some of these cash liquidity to <unk>.

Speaker Change: Retire debt that is maturing because that would give you some savings on the interest cost side.

Speaker Change: The first one is on the load factors in Frankfurt.

Speaker Change: And correct me, if I'm wrong, but I think year to date, they are down year over year.

Speaker Change: So how are you thinking about load factors in Frankfurt going forward for the rest of the year.

Matthias Zieschang: So, how are you thinking about load factors in Frankfurt going forward for the rest of the year? And the last one, if I may, the actual aeronautical charge per passenger, I think you flagged in the report, it came a little bit lower than the 5.7% tariff increase. Looking forward, having in mind the mix of traffic with more short haul, should we assume also a bit of a haircut to the 5.7, so should the achieved aviation charge per pax be more around 4 or 5% or how do you think about it? Thank you. Thank you for the questions.

Speaker Change: And the last one.

Speaker Change: If I may.

Speaker Change: The actual IRR North Dakota charged per passenger thank you flagging the reported came a little bit lower than the <unk>.

Speaker Change: Five 7% targets increase.

Speaker Change:

Speaker Change: Looking forward.

Speaker Change: In your mind the mix of traffic with more short haul should we assume.

Speaker Change: So a bit of a haircut for the five sovereigns or should should that be achieved.

Speaker Change: The Asian charge per box be more around four or 5% or how do you think about it. Thank you.

Speaker Change: Thank you for the questions first of all dividends non Italian so there will be another dividend paid in this year.

Matthias Zieschang: First of all, dividends in Antalya, so there will be another dividend paid in this year and the dividend payment in all our concession models have nothing to do with net income. So it can also be the case that we have a negative net income and nevertheless we are paying dividends. So there will be a strong dividend payment already. or again in this year coming from Antalya, Antalya 1 the old concession which runs out end of So in principle, dividends... Wherever there is a possibility, we are going, first of all, to collect dividends from our subsidiaries to have an income stream from the subsidiaries to the AG here in Frankfurt to collect and to concentrate cash here.

Speaker Change: And the dividend payment and all of our concession wasn't models has nothing to do with net income. So it can also be the case that we have a negative net income nevertheless via paying dividends. So.

There will be a strong dividend payment already.

Speaker Change: Or again in this year coming from from Ontario, I'll tell you one the old concession, which runs out at the end of 2006, so in principle the dividends.

Speaker Change: Wherever there is a possibility of going first of all to collect dividends from our subsidiaries tour to a half of an income stream from the subsidiaries to the to the AG here in Frankfurt.

Speaker Change: Excellent to concentrate cashier and when you look of our total cash position, which you could also see it as a <unk>.

Matthias Zieschang: And when you look at our total cash position, which you could also see in the presentation, I think it's slide number 8, you can see that we already have reduced significantly the cash position we had two years ago. We had exactly 5 billion, this was a peak, and now quarter by quarter we are going to reduce it. Now we ended up with 3.5 end of Q1 in this year, and you will see for the rest of the year further reduction of this level, but there's no, let me say, there's no pressure to speed up with the reduction because when we look on the interest rates or the interest rates income stream in the moment, we are collecting 2.8%.

Speaker Change: Presentation.

Speaker Change: It's not I think it's slide number eight you can.

Speaker Change: You can see that we already have reduced significantly as the cash position we hit.

Speaker Change: Two years ago, we had executive 5 billion. This was a peak and now quarter by quarter, we are going to reduce it now we ended up with 3.5 end of Q1 this year.

Speaker Change: And you will see for the rest of the further reduction of these levels.

Speaker Change: But.

Speaker Change: There is no let me say there is no pressure to speed up.

Speaker Change: Reduction because when we look on the interest rates or interest rates come stream in the moment.

Speaker Change: Collecting two 8%.

Speaker Change: For our cash position and this is relatively good for some months ago before.

Matthias Zieschang: for our cash position. And this is relatively good. So some months ago, before the interest rate reduction of the ECB, we had a positive cost of carry. So we made money with our cash. Now it's more or less equal, or a little bit below. But the cost of carry is not in the moment, it's not relevant. That's the reason why there was no pressure to bring it down. But now looking forward, step by step, year by year, and quarter by quarter, we are going to reduce to the long term, let me say, target of 2 billion, which in the long run, we think is a is a good cash position regarding, let me say, size and revenue level of our company.

Speaker Change: Before the interest rate reduction of <unk>.

Speaker Change: We had a positive cost of carriers will be made money with our cash now it's one is equal.

Speaker Change: Or a little bit below.

Speaker Change: The cost of carry it's not in the moment is not relevant that's the reason why there was no pressure on them to bring it down but now looking forward step by step year by year and quarter by quarter, we are going to reduce to the long term, let me say a target of $2 billion, which in the long run we think.

Speaker Change: Ah is a good cash position.

Speaker Change: Regarding that I can say is size.

Speaker Change: Revenue.

Speaker Change: Oh cool.

Speaker Change: And last question a price impact.

Matthias Zieschang: And last question, price impact. You are absolutely correct when you look on the revenue numbers in aviation, assuming there is a price increase of 5.7 deducting the 0.9% lower number of passengers, you are not going to end up with the revenue which we are going to show in our budget. But this has nothing to do that the prices are wrong or fake prices. These are real prices. You have to see that we have some structural effects. So first of all, the fees are collected not per passenger, the fees are collected based on the departing passengers.

Speaker Change: And so far you're absolutely correct when you look on the <unk>.

Speaker Change: Revenue numbers in aviation, assuming there is a price increase of five seven deducting the <unk>, 9% lower number of passengers.

Speaker Change: I'm not going to end up with a revenue of which you are going to show in our in our books.

But this has nothing to do with the prices of wrong or fake prices as a real prices you have to see that.

Speaker Change: We have some structural effects. So first of all the fees collected not tough pest control. The fees are collected based on the departing passengers.

Speaker Change: Then you have always in Q1.

Matthias Zieschang: Then you have always in Q1 the phenomenon that with beginning of the year you have more passengers coming from the holiday. You have an inbound and this is not, this is counted in the number of passengers, but you are not receiving money for inbound travel. compensated by the Easter holidays because in the beginning of the Easter holidays everybody is flying out and then you have a much higher revenue income stream because the departing passengers, they are charged, the airlines are charged regarding the departing passengers and now we have the seasonal effect that Easter holidays happened in April and we had not this departing impact which we always have in the previous year when Easter holidays took place in March.

Speaker Change: A phenomenon that with beginning of the year.

You will have more passengers coming from the holiday if an inbound and this is not this is counted in the number of passengers, but you are not receiving money for for inbound traffic.

Speaker Change: And then normally this is more or less.

Speaker Change: <unk> stated by the Easter holidays, because in the beginning of the Easter holidays, everybody is flying out.

Speaker Change: And then you have a much higher revenue income stream because departing passengers they are charge.

Speaker Change: Airlines are charged regarding the departing passengers and now we have the seasonal effect of Easter holiday as happened in April and we had Nazis departing impact, which we always have in the previous year when Easter holidays took place in March with this so to say.

Speaker Change: Main effect by.

Matthias Zieschang: So this, so to say, the main effect by the correct Mickey Mouse calculation do not end up with the numbers you expect comparing to these numbers which we showed in our PNL. In the next quarter you will see, so to say, not corrected but numbers which are fitting to the Mickey Mouse calculation because then there is a washout of these structural elements. Thank you very much and sorry just coming back on the load factor in Frankfurt going forward and any color that you could provide at this stage. Load factor is a little bit going down.

Speaker Change: The correct Mickey mouse calculation coming out.

Speaker Change: Do not end up with the numbers you expect comparing to these numbers, which we showed in our P&L.

Speaker Change: And the next quarter, you will see so to say not corrected.

Speaker Change: Numbers, which are fitting into the Mickey mouse calculation. Because then there is a washout of these structural elements.

Speaker Change: Thank you very much I'm, sorry, just coming back on the load factor in Frankfurt going forwards and any color that you could provide at this stage.

Speaker Change: Load factor is.

Speaker Change: It's a little bit going down.

Speaker Change: And this has to do with Condor, because condor is bringing in up to 50% more capacities.

Matthias Zieschang: And this has to do with Condor, because Condor is bringing in up to 50% more capacities. And this is a huge increase on the capacity side. And if you come just with 5%, so it's relatively simple to continue with your load factor when you just have a capacity increase in a single-digit area. But when and if you come with such a huge increase, and you are creating a feeder network like Condor, then of course, if you start up a feeder network, the load factor in the beginning is always... much lower, and you have to have a ramp-up phase.

Speaker Change: And this is a huge increase on the capacity side and if you contrast was 5%. So it's it's it's relatively similar to continue with your load factor and you just havent capacity increase in a single digit area, but when and if you come with such a huge increase and you are creating.

Speaker Change: Pete a network like Condor then of course, if you startup a feeder network.

Speaker Change: The load factor in the beginning as always.

Speaker Change: Much lower and you have to have a ramp up phase and so primarily the.

Dario Maglione: And so primarily the, let me say, the reduced seed load factor comes from. as a special effect based on huge capacity. Thank you very much, very helpful. The next question is a follow-up question from Dario Maglione, BNB Paribas. Please go ahead. Hi, thanks for taking my follow-up question. It's actually on OPEX for the three Frankfurt segments. Can you maybe repeat on the wage, if I look at wage cost, which in 2024 I believe was around 845 million, so you expect 100 million more there in 2025, if I understand correctly, and then other costs, how much was energy?

Speaker Change: Let me say reduce seat load factor comes from Condor.

Speaker Change: As a special effect based on huge capacity increases.

Speaker Change: Thank you very much very helpful.

Speaker Change: Yeah.

Speaker Change: The next question is a follow up question from Doug <unk>.

Speaker Change: Please go ahead.

Doug: Hi, Thanks for taking my follow up question.

Speaker Change: Opex for the flat to three Frankfurt segments.

Doug: Can you maybe repeat on the way if I look at wage cost.

Doug: Which in 'twenty to 'twenty four I believe was around 845 million.

Doug: So you expect 100 million more that intensify.

Doug: One correctly.

Doug: And then other costs.

Doug: How much was energy.

Doug: Incentive into forward I think it was 135 million or.

Matthias Zieschang: In 2024 I think it was 125 million, what shall we expect this year, and other opex, other supplies you mentioned, you wouldn't expect a big inflation there, it's 3-4% a reasonable number, thank you. So, starting with personnel cost, again, let me say wage effect, 40 to 50 million, total increase about 100 million, so a little bit more than 50 million coming from higher FTE numbers compared to previous year, but again, please having in mind that we have now a strong focus in ground services. bring it down a little bit, which you will see at the end of the year and especially in 2021.

Doug: Russia with pet.

Doug: Yeah.

Doug: And that'll picks up the supplies you mentioned what was that.

Doug: With respect a big inflation there.

Doug: Hum.

Doug: Three 4% that is a good number.

Doug: Thanks.

So starting with personnel cost again, let me say retrofit $40 million to $50 million total increase of about 100 million, so a little bit more than 50 million coming from higher FTE numbers compared to previous year.

Doug: Again, he is having in mind that we have now a strong focus in crown services to bring it down a little bit, which you will see end of the yen, especially in 'twenty six.

Doug: Energy prices are flat.

Matthias Zieschang: Energy prices are flat. We don't see further increases and also looking forward we do not expect... inflation-driven price increases based also on the effect that end of this year our photovoltaic devices are fully on stream here on the campus. And we are benefiting from our own produced CO2-neutral electricity. And also from next year onwards, we are receiving energy based on our new windmills in the Northeast, where the contractual prices are fixed. And here we even see a reduction of energy prices because the contractually fixed prices are lower than what is in the moment in the market.

Doug: We don't see further increases and also looking forward, we do not expect inflation driven price increases based also on.

Doug: On the effect that end of this year or what drove it type devices are fully on stream on the campus.

Doug: And we are benefiting from our own produced to neutral.

Doug: Electricity.

Doug: And also from from next year on vault.

Doug: We are receiving energy based on our new mills in the northeast.

Doug: Whereas the contractual prices are fixed and.

Doug: Here, we even see in.

A reduction of energy prices, because the contractually fixed prices are lower than just what is in the moment in the market.

Doug: So there is a relaxation on the energy price side and also regarding our material expense items as I mentioned we.

Matthias Zieschang: So there's a relaxation on the energy price side and also regarding our material expense items. As I mentioned, we think that the inflation more or less... The huge inflation is over and now we are back on normal price increases of $2.25. Thank you very much. The next question is a follow-up question from Graham Hunt, Jefferies. Please go ahead. Yeah thanks, sorry for the follow up. I just wanted to push again on this, the headcount reductions you're speaking to, and just understand how that will work in the context of the collective agreements that your staff sit under.

Think that the inflation more or less.

Doug: But the huge inflation is over and now we're back on normal price increases of 222, 3%.

Doug: Okay.

Speaker Change: Thank you Michael.

Speaker Change: The next question is a follow up question from Graham Hunt Jefferies. Please go ahead.

Yeah. Thanks, sorry for the follow up I just wanted to push again on this.

Speaker Change: Head count reductions you're speaking to.

To understand how that will work in the context of.

Speaker Change: The collective agreements that the U S.

Speaker Change: And as I recall that it's been challenging in the past to.

Matthias Zieschang: As I recall, it's been challenging in the past to modify headcount. And then, just in the context of opening new infrastructure next year, how much can you really cut from your current capacity? Thanks. Regarding reduction of headcount in ground services, as I mentioned, we have two levels. One is a natural fluctuation. Natural fluctuation has reduced due to the change in the labor market, but it's still a relatively high single digit. So we can use this absolutely smartly without any additional cost, month by month to reduce the number of internal employees. And on the other side, you have contracts with several service providers for external workers.

Speaker Change: Modify head count.

Speaker Change: And then just in the context of opening new infrastructure next year.

Speaker Change: How much can you really cut from your current capacity.

Speaker Change: Thanks.

Speaker Change: Regarding the reduction of headcount.

Speaker Change: In ground services as I mentioned, we have two levels one is the natural fluctuation.

Speaker Change: I'm sure that natural fluctuation is has reduced.

Speaker Change: It was a change in the labor market, but it's still relatively high single digit.

Speaker Change: Number so.

Speaker Change: We can use this absolutely smartly without any additional cost month by month to reduce the number of internal employees and on the other side.

Speaker Change: Do you have contracts with several service providers for external cost you always have some to be more flexible.

Matthias Zieschang: You always have some to be more flexible on the labor side, but we had, let me say in the... So to say, in the heat or in the peak of our problems, we had up to 1,000 FTEs from service providers. We are in the moment down to, I think, 400, 450. And we will not go to zero because if you go to zero, then these companies will be closed and then we have not any longer the flexibility of these guys. But here we see a further headroom going down from 400. 450 to 200, 250, so let me say about 200 people or FTEs headroom on the service provider side, which is the same cost as if we have workers on our own P&L.

Speaker Change: And on the labor side, but we had let me say in the.

Speaker Change: So to say in the heater in the peak of our problems. We had up to 1000 Ftes from from service providers. We are in the moment down to I think 400 for 450 <unk>.

Speaker Change: And we will not go to zero because if you go to zero. Then these companies will be closed and then we have not any longer the flexibility of these guys.

Speaker Change: Here you see a further headroom going down from 400.

Speaker Change: 450 to 200, $250 oil and let me say about 200 people of Ftes headroom on the service provider side, which is the same cost as if if.

Speaker Change: No one P&L. So these are the two levers and again month by month now beyond the break in the break loose show a positive impact in the P&L.

Matthias Zieschang: So these are the two levels, and again, month by month, now we are on the break, and the break will show a positive impact in the P&L, and I hope that already, again, but this is hope, I cannot give a clear commitment, that already in Q2, or in this quarter that we are break-even, EBITDA break-even, or very close to EBITDA break-even in ground handling and up from Q3, then we will see a positive EBITDA impact. And this is the road map based on push on productivity.

Speaker Change: And.

Speaker Change: I hope that already and again, but this is hope I cannot give a clear commitment that already in Q2.

Speaker Change: Or in this.

Speaker Change: Quarter on net we are breakeven EBITDA breakeven or very close to EBITDA breakeven and ground handling and up from Q3.

Speaker Change: Then we will see in.

Speaker Change: Positive EBITDA numbers.

Speaker Change: This is Joseph the roadmap.

Speaker Change: Based on our push on productivity numbers.