Fraport AG’s regular Annual General Meeting (AGM) for shareholders began today at 10:00 a.m. – for the first time via a virtual-only format due to the COVID-19 pandemic.  The company’s supervisory board chairman, Karlheinz Weimar, and executive board chairman (CEO), Dr. Stefan Schulte, report personally via the live-stream broadcast. A total of 51 questions submitted by shareholders will be answered during the course of the AGM.  Shareholders and their authorized representatives can exercise their voting rights via the AGM online portal at: www.hauptversammlung.fraport.de.

In his speech to the AGM, CEO Schulte focused in particular on the current situation:  “We are in the midst of the severest crisis impacting modern aviation. During the course of the COVID-19 pandemic, travel restrictions worldwide have increased significantly since the beginning of March.  For the entire month of April, Frankfurt Airport served only about 188,000 passengers – that’s far less that the passenger traffic we received on an average single day in 2019.” Traffic at the company’s international airport locations also has largely come to a standstill. 

CEO Schulte:  “We responded to this drop in traffic at an early stage and took comprehensive measures to reduce costs.  Nevertheless, we now have negative free cash flow of around 155 million euros per month.   Despite these massive cash outflows, Fraport has sufficient liquidity to survive the current situation for many months to come.” 

Profit for Fiscal Year 2019 to Flow into Revenue Reserves 

Against the background of this development, Fraport’s Executive Board and Supervisory Board will recommend to the AGM – despite the successful 2019 business year – not to pay the dividend for the past completed year. Instead, the profit earmarked for distribution should flow into the revenue reserve and strengthen the equity base. In view of an expected negative Group Result for the current financial year, the Executive Board will also propose to the Supervisory Board and the Annual General Meeting not to distribute a dividend for the 2020 business year.

Hesse finance minister Michael Boddenberg standing for election to the Fraport Supervisory Board

After serving more than 16 years as the chairman of Fraport’s Supervisory Board, Karlheinz Weimar will be retiring at the close of today’s AGM. Hesse’s finance minister Michael Boddenberg is up for election to the Supervisory Board. If Mr. Boddenberg is appointed, he will also be proposed as a candidate for the chairman position on Fraport AG’s Supervisory Board.

Remuneration system for Fraport’s Executive Board to be aligned with new German statutory requirements

 Along with regular resolutions – such as the appropriation of net retained profits and approving the actions of the Executive and Supervisory Boards – the AGM agenda will feature a resolution on a new remuneration system for the members of the Executive Board. Thus, Fraport is ensuring early implementation of the statutory requirements set out in the new version of the German Corporate Governance Code and the act for implementing the Second Shareholders’ Rights Directive (ARUG II). Under the new remuneration system, the remuneration value remains unchanged. Based on fewer remuneration components, the new system provides a simplified and even more transparent structure.

Outlook Remains Uncertain

Because of the ongoing high uncertainty of the COVID-19 pandemic, Fraport cannot make a specific forecast at this time.  Fraport still anticipates strongly negative traffic development at Frankfurt.  In line with this development, the executive board expects all financial performance indicators to decrease significantly for the 2020 financial year.  Overall, Fraport expects Group-EBITDA and Group-EBIT to decline sharply, and the Group Result to be negative.

CEO Schulte:  “Also the medium and long-term outlook is still very uncertain.  Currently, we expect passenger traffic – even in 2022/2023 – to be below the previous high-levels.  A decline of about 15 to 20 percent compared to the 2019 figure of around 70.6 million passengers in Frankfurt seems realistic. This is what we are preparing your company and Frankfurt Airport for.” 

Further information about this year’s Annual General Meeting and print-quality photos can be found on the Fraport website.