Swedavia (AIR) investor relations material

Executive summary

• Q3 passengers rose 2.1% YoY to 9.9m; net revenue increased 11.9% to SEK 2,014m and operating income rose to SEK 380m from SEK 249m.

• 9M passengers increased 3.5% to 26.1m; net revenue reached SEK 5,631m, operating income SEK 501m and net income SEK 203m.

• Q3 earnings benefited from passenger growth, airport-charge adjustments and higher commercial revenue; return on operating capital of 2.4% remained below the 6% target.

Financial highlights

• Q3 net income was SEK 239m vs SEK 134m; operating cash flow was SEK 702m vs SEK 573m.

• 9M profit before tax was SEK 265m vs SEK 66m; net financial items were SEK -236m vs SEK -226m.

• Adjusted operating income, excluding restructuring costs, impairment losses, disposals and capital gains, was SEK 406m vs SEK 270m in Q3 and SEK 545m vs SEK 326m in 9M.

• 9M net revenue rose 10.4% YoY; Aviation Business revenue increased 11.2% to SEK 3,600m and Commercial Services revenue increased to SEK 2,007m from SEK 1,842m.

Outlook and guidance

• Priorities include increasing travel, improving accessibility and running operations cost-effectively to progress toward financial targets.

• Financial targets include 6% return on operating capital and FFO/debt above 10%; current results were 2.4% and 9.4%, respectively.

• Management expects the organisational-change process to be completed in Q4; potential redundancies affect 95 positions, mainly in support functions.