Fraport AG Interim Report - First Half 2001: Five Percent Increase in Revenues / Consolidated Profits Up 43 Percent / Clear Success Despite Slower Traffic Growt

Frankfurt, Germany (PROTEXT/ots) - For the first time, FraportAG Frankfurt Airport Services Worldwide today presented aninterim report for the first six months of the current businessyear. Compared to the same period of the previous year,Consolidated revenues increased five percent to Euro 756.9million from January to June 2001. Consolidated profit climbed inthe same period by almost 43 percent to Euro 39.1 million. Dr.Wilhelm Bender, Chairman of the Executive Board of Fraport AG,said that the Group had "continued its positive development andheld its position in a difficult economic environment". DeutscheBörse AG has decided that Fraport shares will be included inFrankfurt's MDAX effective September 24. For the first half of 2001, the number of passengers atFrankfurt Airport (FRA) increased 2.7 percent to 24 million,while airfreight declined 0.6 percent to 744,000 metric tons.The Lufthansa pilot strike resulted in an unexpected negativeeffect for Fraport. However, the company is confident that itcan largely compensate for the loss in the second half of theyear, which is always seasonally stronger. Consolidated revenues increased by five percent to Euro 756.9million; retailing revenues even grew at double-digit rates inthe reporting period. Total revenues from January to June 2001increased by about nine percent to Euro 805 million. Majorfactors contributing to this increase included non-recurringincome as well as unrealized currency gains due to the higherU.S. dollar, which have to be shown according to IAS(International Accounting Standards). Almost three-quarters of the total revenues were generated bythe Aviation and Ground Handling segments. With 85 percent, theNon-aviation segment accounted for the largest share of theconsolidated EBITDA (earnings before interest, tax, depreciationand amortization). Operational costs increased by 13.8 percent to Euro 601.5million. Personnel expenditures represented the largest costitem. They increased by 10.3 percent to nearly Euro 347 millioncompared to the first half of the previous year. This was mainlydue to the employee stock participation plan launched with thecompany's IPO (initial public offering) and due to first-timeprovisions made for a new staff pay scheme based on individualand corporate performance. With Euro 130 million, cost of material was more than fivepercent over the previous year's level, thus increasing at aboutthe same rate as revenues. Other operating expenses amounted toEuro 125 million; this was mainly due to non-recurring expensesfor strategic projects, such as implementation of SAP R/3 andnon-realized currency losses according to IAS. EBITDA reached Euro 204.8 million, compared to Euro 210.5million recorded during the first six months of the record year2000. Operating cash flow experienced a strong 30-percentincrease to well over Euro 140 million, compared on a half-yearlybasis. Investments of Euro 122 million - mainly for property,plant and equipment at Frankfurt - could be entirely financedfrom operating cash flow. Some Euro 904 million flowed into the company's coffers as aresult of the IPO on June 11. Equity ratio rose to 49.5 percentfrom 33.5 percent in 2000. Therefore, the IPO created thefinancial basis for further expansion at Frankfurt. Fraportexpects the pending planning procedures to continue on schedule.On August 27 the company will submit documentation for theregional planning procedure. Bender again emphasized that "the current situation regardingairport expansion could not be any better". Fraport's CEO said"we are optimistic". There have been clear decisions from allrelevant political bodies, favourable court decisions so far, andthe company has been able to maintain the ambitious timeschedule for airport expansion. "The results of all publicopinion surveys also make us optimistic," said Bender. More thanhalf of the population has come out decisively in favour ofairport expansion, while only 10 to 15 percent disapproved. Bender explained that Fraport AG now has initiated theprocedure for increasing Frankfurt Airport's coordinatedmovements per hour. At FRA, it should be possible to increase thenumber of coordinated aircraft movements from 78 to 80 per hour.This additionally created capacity will help FRA temporarily toaccommodate traffic until a new runway opens in five years. Fraport expects passenger figures to grow faster in thetraditionally stronger second half of the year, anticipatingabout three-percent passenger growth for the entire year. InJuly 2001, the busiest month on record in the history ofFrankfurt Airport, 4.9 million passengers were welcomed, 2.6percent more than in July of the previous year. Well over 50million passengers will use Frankfurt Airport in 2001. Asindicated before the IPO, the company currently expects EBITDAresults for the entire year to be modestly below the previousyear's level, due to special influencing factors. Bender said,"Fraport AG is on course in a difficult market environment". otsOriginal Text Service: Fraport AG Internet: www.presseportal.deFor More Information, Please Contact: Fraport AG FrankfurtAirport Services Worldwide Attn: Robert A. Payne - ManagerInternational Press 60547 Frankfurt am Main, Germany Tel.: +49 69690 -78547 (with voice mailbox) Fax: +49 69 690 -60548 E-Mail:r.payne@fraport.de

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