Flughafen Zürich AG Stock

Good morning, ladies and gentlemen. Welcome to the presentation of Zurich Airport's Half year results for 2026. My name is Lukas Brosi, and I will be hosting this presentation together with Kevin Fleck, our CFO. I would like to remind you that the presentation is also available on our website.

Today's agenda is as follows, I will begin with a brief business update. Following that, Kevin will provide insights into our financial performance and share our guidance for 2026 as well as an update on our long-term targets and goals. At the end of the presentation, we will address your questions. Please already submit your questions during the presentation. This helps us organize them more efficiently. Stefan Weber will moderate the Q&A session.

Let me begin with the highlights of highlighting our milestone for the first half of 2026. The first half of the year was characterized by continued strong demand in Zurich and the positive development of our business activities in Brazil. At Zurich Airport, passenger volumes increased by 6% to 15.8 million passengers despite the challenging geopolitical environment and the temporary weakness in traffic to and from the Middle East. Operations remained stable and reliable throughout peak travel periods and despite ongoing construction work on several sites.

On the commercial side, higher passenger volumes supported airside revenues, while landside activities continued to be affected by construction works associated with the development of the landside passenger zones. The real estate business continued its positive development, supported by higher rental income as well as energy and utility revenues. Internationally, we achieved an important milestone with the opening of Noida International Airport on the 15th of June. While operations commenced successfully the current geopolitical environment in the region, has resulted in a more gradual ramp-up than originally anticipated.

Nevertheless, our long-term view remains unchanged for the Indian market and for the development of Noida in particular. In Latin America, our Brazilian airports delivered another strong performance with passenger growth of over 10% compared to the first half of 2025. Furthermore, we achieved important progress regarding the regulatory framework at the Zurich side. Political backing for Zurich Airport's existing operating hours was strengthened through decisions at both cantonal and federal level, further supporting planning certainty and the long-term connectivity of Switzerland.

We also made progress on several strategic infrastructure projects, for example, with the start of construction works for the new general aviation infrastructure in the Western area of the airport. Based on our purpose business segments, core values and the defined strategic target dimensions. We further refined our 2040 targets for the international business and the group. At the same time, we continued to invest in innovation and sustainability through the rollout of new passenger technologies and progress in the implementation of our climate program 2040.

Let's take a closer look at some key figures. The first half of 2026 delivered the strongest half year result in the company's history. Revenues increased by 5% to CHF 674 million, while EBITDA rose to CHF 374 million. Net profit increased slightly to CHF 164 million. Group CapEx amounted to CHF 269 million for the first half of 2026. Please note that CapEx in the prior year period included the acquisition of the Radisson Blu building in the amount of CHF 155 million.

Let's review our main business segments, beginning with the Aviation business. The passenger volume in Zurich is up 6% for the first half of 2026 compared to the prior year period. During spring, several airlines temporarily reduced services to the Middle East following the escalation of geopolitical tensions in the region. Passenger numbers [ to ] and from the Middle East, therefore, declined by around 30% compared to the first half of 2025. However, this impact was more than compensated by continued strong demand from the Swiss local market as well as additional growth in Europe and Asia Pacific.

As a result, the impact of the Middle East conflict was limited overall. The airlines showing the strongest growth rates were Edelweiss and Austrian Airlines with Condor, easyJet and Vueling also contributing strongly. The seat load factor increased by 2 percentage points to 79%, and flight movements also climbed by 4%. Freight volumes decreased slightly by 1% compared to the prior year period, primarily driven by a decline in imports. Despite the high volume of traffic, flight operations were managed in a stable and reliable manner, thanks to the close cooperation between all partner companies.

The route network was expanded in the first half of 2026. 3 new airlines, Norwegian, Kuwait Airways and China Eastern Airlines are now flying to Zurich. At the same time, existing routes were expanded and new destinations were added to the route network. According to the current 2026, summer time flight timetable. 67 airlines are offering flights from Zurich to a total of 212 destinations. Our high service level was recognized externally with Zurich Airport having received the Airport Service Quality Award as the best airport in Europe in the 25 million to 40 million passenger category.

Zurich Airport continued to make targeted investments in the digitalization and automation of passenger processes in the first half of the year. This can be seen, for example, in the modernization of the security checks which was advanced with the introduction of new CT scanners. Introduction of the European entry exit system was completed together with the Zurich [ Kantonspolizei ], Zurich Airport has met the infrastructural and operational requirements and continuously supports the authorities in implementing the new border clearance processes. The collection of biometric data of [ non-EUF ] citizens sometimes led to long waiting times at border control. In the following slides, we'll give you an overview of our commercial and real estate business.

Commercial turnover developed positively overall despite the ongoing construction works on the landside. Airside turnover increased by 9%, driven by higher passenger volumes and the reopening of luxury stores. On the landside, turnover declined by 3% because of construction works and temporary closures required for the development of the landside passenger zones. Combined, airside and landside turnover increased by almost 4% and exceeded CHF 300 million.

Let me provide you with an update on the 2 most important commercial projects currently on the way at Zurich Airport. The first is the development of the land side passenger zones. This project will significantly enhance the retail and food beverage offerings. It will add approximately 6,000 square meters of new commercial space on the landside. Construction is already well advanced, and first openings are expected from autumn 2027 onwards in a phased approach.

The second major project is the replacement of dock A, while the project will require the temporary closure of commercial space within the airside center from 2029 onwards. Relocation measures are being pursued in order to mitigate the impact wherever possible. Up in completion, the project will provide substantial additional lounges and commercial space and significantly strengthened the commercial attractiveness of Zurich Airport. The real estate business remained stable and important contributor to group earnings. Rental income continued to grow, while energy and utility cost allocation also increased.

Several strategic infrastructure project made good progress. For example, the request for planning permission was submitted for the new Dock A Construction also started for the new general aviation infrastructure, while the first phase of the Skymetro modernization was also successfully completed. Last but not least, let's turn our attention to our international business.

Let's take a closer look at the passenger numbers at our airports in Latin America first. Passenger traffic grew by 10% across our majority-owned airports in Latin America compared to the first half of 2025. In Brazil, Florianópolis increased passenger numbers by around 10%, and Vitória and Macaé by approximately 12% and Natal by approximately 19%. At our airport in Iquique in Chile, passenger volumes declined by 9% compared to the same period last year. Demand was impacted by macroeconomic factors, notably adverse foreign exchange movements and higher oil prices. Let me share some more highlights from our majority owned airports in Latin America.

Overall, our Brazilian airports continued to perform very strongly, combining solid traffic growth with continued investments into quality commercial development and sustainability. In Florianópolis, work has started on the expansion of commercial space in the international terminal area. A new fully covered premium parking facility opened earlier this year and construction of additional launches is underway. The Airport also was named Brazil's based airport the sixth consecutive year.

The construction of an additional launch is also underway in Vitória, which was recognized as Brazil's second best airport for the fourth consecutive year. In Macaé, the inauguration of the new solar power plant marks an important sustainability milestone, making the airport Brazil's first energy self-sufficient airport powered by clean energy. Natal achieved the second highest passenger grow among Brazilian airports during the first half of the year. International traffic more than doubled compared to last year. In addition, the redesign of the commercial concept was completed. In Chile, the concession for Antofagasta Airport ended in February 2026 and operations were successfully handed over to the new concession area. Zurich Airport remains active in Chile through its participation in Iquique Airport, but the construction of the Northern Apron restarted in June.

A few days ago, Zurich Airport has entered into an agreement to divest its indirectly held 12.75% minority stake in Belo Horizonte International Airport in Brazil. The buyer is ASUR, an international airport operator headquartered in Mexico. The sale of the shareholding is expected to result in a nonrecurring net gain of approximately CHF 17 million before taxes at group level up on closing. The transaction remains subject to customary closing conditions, including the required regulatory approvals and is expected to complete it within the next few months.

Zurich Airport initially joined the project as a minority investor in 2013 as part of Brazil's third round of airport privatization. The divestment is fully aligned with our international strategy to focus on majority shareholdings with operational responsibility.

I would also like to provide an update on Noida International Airport. On June 15, the airport successfully started commercial operations, establishing a new aviation gateway to the National Capital Region of Daily and North India. The operational launch follows a construction period of approximately 4 years and represents a major milestone for the international business of Zurich Airport. The airport started operations smoothly with IndiGo and Akasa Air currently serving 17 domestic destinations.

Looking ahead, the route network will continue to expand, and international services are expected to be added. However, the end innovation market is more affected by the conflict in the Middle East than other markets. Air base closures, elevated fuel costs and capacity adjustments have resulted in a more volatile operating environment for Indian Airlines and a slower ramp-up in Noida than originally anticipated.

The short-term outlook remains subject to increased uncertainties Nevertheless, our assessment of the mid- to long-term opportunities remains unchanged. Noida serves one of the fastest-growing aviation markets globally, benefit from a strong catchment area in the national capital region. And represents a strategically important growth platform for Zurich Airport over the coming decades. The opening of Noida marks a key milestone in the development of our international business at the same time, we continue to see attractive opportunities to further develop and strengthen our portfolio. We have therefore defined a clear vision how we want to develop our international business until 2040.

Our ambition is today to develop the international business into a financially self-sufficient business unit that can fund the capital requirements of new airport concession from its own resources. We will maintain a disciplined approach to capital allocation, focusing on investments that generate excess returns compared to Zurich. Our focus is on maturity holdings, where we can assume operational responsibility and actively shape the development of the airport. At the same time, we aim to build a balanced portfolio across selected focus markets. Wherever we operate, our ambition is to be among the best airports in terms of quality, customer satisfaction and sustainability. By 2040, the international business should make a significant contribution to group's revenue and EBITDA as well as to attractive dividend payments of Zurich Airport.

I'm now handing over to Kevin.

Thank you, Lukas. Good morning, ladies and gentlemen. Welcome, and thank you for joining us. I will now provide an overview of the company's financial performance.

Let me start with a financial overview. Our revenues increased by 5% compared to the previous half year. This was driven by continued passenger growth at Zurich Airport and the positive development of our international business in Brazil. Aviation revenue increased broadly in line with passenger volume growth, rising by 5% from CHF 327 million to CHF 345 million. Non-aviation revenue increased by 5% in the first half of the year to CHF 328 million. Adjusted for concession accounting, this reflects a growth of 4% to CHF 324 million. EBITDA rose by 4% year-on-year to CHF 374 million. The EBITDA margin remains largely unchanged at 56%.

Overall, the consolidated result for the first half of the year grew by 1% to EUR 164 million . So let's take a closer look at the nonaviation figures. Despite the reduced land side retail offering due to construction activity, total commercial and parking revenue increased to CHF 134 million. Higher passenger volumes and higher revenues from food and beverage contributed to this positive development. Within real estate, both revenue from rental and leasing agreements as well as energy and utility cost allocations increased.

This resulted in an overall real estate revenue of CHF 100 million, an increase of 2% compared to last year. Revenue from services amounted to CHF 27 million in the reporting period, primarily due to higher traffic volumes at Zurich Airport. The international business benefited from the continued positive momentum in Brazil, both in terms of passenger volumes and non-aviation activities.

Total revenue from the international business rose from CHF 58 million to CHF 67 million. Factoring out the income statement neutral revenue from construction projects Revenue in international business grew by 11% or CHF 6 million. Operating expenses increased by 6% to CHF 299 million, partly due to the commissioning of Noida International Airport. Adjusted for concession accounting, OpEx were 5% up compared to the first half of the previous year.

Personnel expenses grew by 5% in the reporting period, to CHF 138 million, mainly due to the opening of Noida International Airport, some volume-based adjustments in Zurich and salary adjustments in line with inflation. With staffing requirements at Zurich Airport largely fulfilled. We expect growth in personnel expenses in Zurich to noticeably slowdown in the second half of 2026. The cost for police and security rose by 2% to CHF 67 million, growing at a slower rate than passenger volumes. Energy and waste costs remained broadly stable and stood at CHF 19 million. In summary, we continue to manage our OpEx development effectively balancing investments in future growth with a disciplined approach to cost management.

I will now outline some key financial ratios. Net financial debt saw a slight increase to the dividend -- due to the dividend payments in the second quarter of 2026. The leverage ratio now stands at approximately 2.1x. Our return on invested capital remains broadly unchanged at near 8% primarily due to changes in working capital, operating cash flow increased to CHF 324 million. Free cash flow for the first half of the year amounted to CHF 56 million. The increase should be assessed in the context of the acquisition of the Radisson Blu building during the corresponding period of the previous year.

This next slide shows the largest projects we have been working on in the first half of 2026. Zurich Airport invested a total of CHF 269 million, of which CHF 202 million were invested at the Zurich side. Please note that the prior year CapEx at the Zurich side included the purchase of the Radisson Blu building in the amount of CHF 155 million. The single biggest project at the Zurich side was the development of the main airport complex, including the new Dock A, tower and base. Other key projects included the development of the landside passenger zones and the refurbishment and expansion of the baggage sorting system. Our most significant international project in the first half of the year was the completion and commissioning of Noida International Airport.

So let's proceed to the outlook. Before looking at our guidance for '26, I would like to highlight that the current geopolitical environment still remains a source of uncertainty. Given the situation in the Middle East, there is limited visibility regarding how events may evolve over the coming months. We currently expect passenger growth in Zurich of approximately 3%. A slowdown in growth is anticipated compared to the first half of the year which is mainly due to the stronger comparison base.

A new charge period will start at Zurich Airport on the first of October '26. Despite the total reduction in airport charges of around 10%, Aviation revenue is expected to remain stable in the current year due to the expected passenger growth. At the Zurich side, commercial revenue is likely to move sideways due to the ongoing closure of commercial spaces as part of the project to develop the landside passenger zones. Real estate revenue is expected to rise slightly.

A further increase in revenue is expected for the international business with the opening of Noida contributing to this. Overall, non-aviation revenue is expected to be higher. The opening of Noida will lead to an increase in operating costs. In contrast, only a very moderate increase in costs is expected at the Zurich side. All in all, Zurich Airport expects earnings before interest, taxes, depreciation and amortization for 2026 to be roughly on the same level as the previous year.

Consolidated profit is expected to be lower than in 2025. Besides the reduction in airport charges in Zurich, depreciation and interest expenses will have an impact on the income statement with the opening of Noida. Investments at the Zurich side are expected to amount to around CHF 400 million in '26. Investments of an estimated CHF 100 million are expected at subsidiaries abroad with the completion of construction of the new airport in Noida accounting for the majority of this.

Looking beyond '26, there are several factors that will influence the group's financial development. First, the full year impact of the new airport charges in Zurich will be reflected in; 27. Second, Noida International Airport has now started commercial operations and will lead to additional depreciation and financing expenses of approximately CHF 80 million on an annual basis.

Furthermore, given the current geopolitical environment, a slower ramp-up in Noida than originally anticipated is expected. Taken together, these factors may place greater pressure on the group's profitability also in '27. Nevertheless, we remain confident that the strong fundamentals of our Zurich business and the mid- to long-term potential of Noida will continue to support sustainable value creation.

Beyond this near-term outlook, we would like to conclude today's presentation by outlining our long-term strategic path. In '24, we refined our guiding strategic principles based on our purpose, the business segments and our core values. This process allowed us to reaffirm our business model and to define 5 key target dimensions with corresponding performance indicators. With this sharpened strategic focus, we were able to enhance our company's governance and set clear midterm targets that are partly reflected within the variable compensation of the Management Board and on management level.

Our focus and success are firmly rooted in long-term value creation. Accordingly, we have developed an outlook for Zurich Airport Group that sets out our desired development and strategic orientation through to 2040. These ambitions are aligned with our 5 key target dimensions. While our core financial targets, including a consistently strong EBITDA margin, are expected to remain at a high level. We have further refined our long-term goals.

By 2040, we aim to generate revenues of more than CHF 3 billion corresponding to a compound annual growth rate of over 5%. This growth is expected to be driven primarily by our international business. supported by the continued development of our existing portfolio as well as further additions, as we have outlined earlier in the presentation.

Going forward, the growth rates in Zurich are expected to continue on a solid trajectory, in line with the historical trends. a group-wide return on invested capital of more than 8%, which is higher than today's target of more than 7.5% underlines our continued focus on creating sustainable value for our shareholders. We remain committed to our ambition of ranking among the leading airports across all our concessions in terms of quality and customer experience.

Finally, Sustainability remains a fundamental pillar of our long-term strategy. Our ambition is to achieve net zero greenhouse gas emissions in scope 1 and 2 with out of setting by 2040 at the latest.

With this, I'm handing back to Lukas.

Thank you, Kevin. We have now reached the end of our results presentation, and I will begin with the Q&A session. I will now hand over to Stefan, who will moderate the Q&A. Stefan Weber, I assume we have some questions.

Thank you very much, Lukas. Good morning also from my side. Before going to the Q&A session, we did get some feedback that some of you might have trouble seeing the slides clearly on the webcast. In this case, we recommend going to our web page, where you can download all the slides and hopefully see them clearly.

Now let's start with the Q&A. We have a first question on Noida, where people are asking to get some more sense on how 2026 traffic might look? What do we expect in terms of EBITDA and probably also a first outlook into 2027?

I might start with answering, and Kevin can add his thoughts on that. Currently, we are also in the progress of airlines requesting for the slots of the winter time table has not being completed. We expect that further growth will on the winter timetable. One has also to consider that we have opened the airport in between of the changes of summer and winter time table. We also expect that we will see a gradual ramp up from that point.

The number this year is still with a high level of uncertainty, we've expect around 1 million passenger in the financial year 2026.

Maybe to add there, what it means for our P&L. With 1 million passenger, we expect a negative contribution this year. and then a breakeven is expected next year in 2027.

Then we also received a number of questions regarding the traffic in Zurich. We are now guiding for the full year through 3% growth, which is at the upper end of the previous guidance, whereas year-to-date, we are still above this target. So can you help us understand the growth in more detail for H2?

Yes, if you're following our monthly numbers, you see that the growth is decelerating over the last couple of weeks and months, and that's the effect we expect for the full year as well. given stronger comparison base of last year and still the uncertainties of the situation in the Middle East that can change on a daily base. And if you're following our company for a longer period, you know that we are rather conservative guidance.

Next question is on the investments at the Zurich side. We are now guiding at the upper end of the previous guidance, around about CHF 400 million. what's the reason to be at the higher end?

We are right now in a quite investment, heavy cycle and -- in general, the projects, specifically the Dock A project is moving on track. So that also leads to investments, which come at the right time. And at the end, we believe to end up somewhere around CHF 400 million in this year. That hasn't changed the forecast of the projects we are working on. But it's primarily a timing issue. It's usually quite difficult to time when the exact investments for a long project like the Dock A or an [ ELP ] or [ Zone West ] when this happens within a year. But overall, the guidance we gave is still unchanged over the midterm.

Going back to India. We have a question on the fee structure. Are we happy with the framework we received a few months back?

I mean, we talked about this quite a lot. We ended up at the lower end of the range we guided from a regulation standpoint, it needs to be positively mentioned that there is a yield increase of approximately 10% in those tariffs.

And we do have a true-up mechanism. So the potential under earning in the first control period will then be taken forward to the next control period.

And the next question is on the targets set for 2040, especially about the revenue target of CHF 3 billion. What is the revenue forecast on the current portfolio versus revenue from new assets acquired?

If we solely stick to the portfolio we have today, and that means specifically to India, if we keep the 100% majority earnings, it would roughly end up at CHF 2.4 billion in 2040. So there are an additional of CHF 600 million of new international assets we will need to add over time in terms of revenue generation.

Well, with this, you actually already answered the next question, whether it will be just based on the existing portfolio or whether it's based on growing the portfolio. So I think that's now answered.

Then we have another question on India. Given that the ramp-up is softer than initially expected and the rupee is currently weaker against the Swiss franc. Do we still believe to reach the EBITDA target set out for the early 2030s, so to reach already a 3-digit million contribution to EBITDA.

I might start with answering this question. From today's perspective, I mean, we have now an operation of a little bit more than 2 months. We stick to the to the numbers that we have provided at the Capital Market Day with all the uncertainty that is involved right now.

One of the main question is also, is this only a delayed ramp up? Or do we catch up over time, I believe, rather the second. So there are a lot of uncertainties. But if you take the overall medium- to long-term picture, nothing fundamentally has changed. So we have still the largest population in the world, one of the fastest-growing global aviation market. We have more than 1,000 open aircraft orders coming into the country. And those are the main drivers from a medium to long term. And this, from today's perspective is unchanged despite the ramp-up situation right now.

Then we have a quick one on The Circle. In the half year reporting, we have announced that we called a few new tenants. What is the current vacancy rate?

Well, the current vacancy rate, I would say, is closing to like a full rent number of 95%, which is normal in a larger environment -- or in a large real estate development, you will always have like we have 50 tenants. There will always be like tenants moving out, new tenants moving in, but that's like daily business. And we have also stopped announcing every single tenant change as The Circle is now in operation. It's almost fully rented. We don't have any large space available. There are some space left smaller pieces of space that is still available, but The Circle is fully up and running.

And with all the adoptions we made also on the ground level, is also a vibrant place, which has been especially seen over the last couple of weeks in summer, I'm fully happy. And to be honest, and this reminds me a little bit of the situation in Noida, where we also had with The Circle tough environment for the ramp-up at the breakout of COVID, everything was difficult.

And now later on, it proved to be a success story in a way that we have now not only fully rented out, we have a high quality of tenants, we had to make certain adoptions, which is our duty if we see that something is not going as planned. But today, we really -- we really can say that The Circle is success. You have to stick to your principles and investment assumptions and that has been turned out for the CIRCLE and will also turn out for Noida.

Then the next one, again on traffic in Zurich. In the release earlier this week, Swiss said that their traffic has been lower in July. So traffic for Zurich overall has grown. What are the main growth contributors, especially for July.

I can't answer it on especially for July, but mainly the airlines that were growing are the ones I mentioned. It's -- it's Edelweiss, it's Austria, it's Vueling. And in July, the growth is also done by Chair, which is also a Swiss airline, it's a blend of different airlines.

Then the next question is on the costs. Could you please elaborate on OpEx trends in H1 and expectations for H2?

We had, as I mentioned before, an increase of 5%. So part of it was obviously thanks to Noida where we started operation in June. We had some increases also in our personnel expenses in Zurich that was, on one hand, volume-based adjustments in the front staff field like bus service or PRM business.

In addition, the comparison base in the first half of 2025 was favorable. So that means overall that we expect noticeably slowdown in cost growth in Zurich. And over the full year, just a moderate increase. When we look at the security costs. There, we had an increase of approximately 2%, which is just a third compared to the passenger numbers we had. Energy costs were broadly in line with what we have seen last year. So we expect the moderate increase by the end of the year out of Zurich. And obviously, from the international business, we do see some further costs out of Noida International Airport.

Next, we have a political question around the opening hours. How big is this threat that Zurich might see shortened opening hours?

It's much less of a threat than 12 months before because of the 2 topics in the political environment that has changed. We had like the initiative of the nighttime curve view and the initiative claim for 30 minutes less operating hour. It went the parliament and the [ Cantonal Council, the Parliament ] over welcomingly rejected this initiative.

And the second, in a longer-term perspective, even more important changes that the today is operating hour, as a minimum will be will be write-down in the federal aviation law. That was not the case so far. So there's basically a risk that every court can decide against today's operating hours. And this law is now in revision and now the -- today's operating hour as a minimum, so the status quo will be implemented on the highest level on the federal level in the aviation law.

So this gives us much more planning certainty and legal certainty going forward. These are 2 very important and to successfully managed topics that has been materialized also in the first half of this year.

Going back to the targets [ 2040 ]. International business aims for significant contribution to revenue and EBITDA. Could you help understand what significant might mean?

That significant means in our routes up to 50%.

Next one is on the commercial revenues. We do have ongoing construction sites for the time being, mainly on the landside related to the expansion of the landside area. So for the next 12 months, do we expect that the disruptions remain stable, increasing or reducing?

I would answer this with stable. The project is in full swing. There will not be like a larger perimeter of construction than today. And the opening, the first ones will be expected in autumn 2027 so today's status will be stable for the next 12 months.

Then we have a question on the dividend. We are guiding for a lower net income in 2026 and probably even 2027 compared to previous year. So if net income goes down, should the market also expect dividends to be lower than before?

Yes. This is true. I mean we defined a new dividend strategy, and it was set in place first time for 2025 financials. And there, we had a situation with a delay in Noida and a very good traffic in Zurich that we had a very high dividend we paid out, but going forward, we will stick to our dividend policy because we believe it's the right balance between investing, being an attractive shareholder and also kind of a reliability towards the capital market to have kind of a guidance where the dividend goes.

And yes, if the net profit is lower this year, this would also translate then in a lower dividend.

And if I may add on this, if you remember the conference call we had in March, the situation was that given the delayed opening of Noida also the cost which linked to the opening were delayed and the 2025 financial result was therefore relatively higher. So we said that maybe the dividend of 2025 that we have paid out this year. is higher than what we have anticipated and will now be on a more sustainable basis.

Then we have a question related to the compensation framework. What do you use as metrics to define the remuneration.

So our main KPI is the EBITDA margin, which is a target at the beginning of the year, obviously, and will be then assessed at the end of the year, and we also have 3 nonfinancial targets with goals.

It's within our integrated report. You see this in full detail. I recommend you to have a look into this report that provides you all the answers on how the compensation for the senior management is structured in our company.

Then we have another question on Noida. Could you let us know where we stand on the process of bringing in a partner for Noida?

That's still a topic we think about also looking into the longer development of the international business. We really believe that the airport is now in operation. The risk profile of this investment has also changed. Not any more construction risk, et cetera. This might make the asset of the airport in Noida attractive to third parties.

I always say that it needs a certain positive momentum. It needs a certain proof of operation of a couple of months. So yes, this is still on the agenda. We are not in a hurry. We wait for the right momentum and the right partner to assess a potential partnership.

Maybe to add there, there is basically, right now, no needs. The project costs are still within the CHF 750 million. And as soon as we approach Phase I there, it would make sense to talk with -- together with a strategic partner to finance the investments we potentially do in order to increase the volume at Noida International Airport.

Then we have a question on the international strategy. our strategy focuses on maturity stakes with operational responsibility. So how do we see the strategic fit of Curaçao?

Well, Curaçao is the only minority shareholding that we have in our portfolio. If we the right [indiscernible] also like following what we have done in Belo Horizonte. There's also not a need an immediate need for selling Curaçao, but looking into the development also of the international portfolio of our company and looking into the future, we would rather go for larger investments, majority stakes. We take this opportunistic.

Then before going to the next question, apparently, there is some confusion about EBITDA contribution from Noida. So please let me clarify, we expect a negative contribution on EBITDA level for 2026 and breakeven for the next year.

Then the next question is on the leverage of the company. So we are currently facing a heavy investment cycle. What's the latest on our expectation on the net leverage trajectory?

As of today, we expect to be -- to stay below 2.5, which is the trigger in our dividend policy with respect to the payout ratio. But as of today, we -- in the medium term, we still believe to be below 2.5.

Then going back to the international strategy now related to the sale of Belo Horizonte. Could you please comment on the rationale for this divestment?

Yes. When we started the investment in Belo Horizonte, we have in a partnership with the former CCR Group and with the minority stake of the state in [ Feijão ]. So we have been in a consortium as a shareholder of 12.75%. And we also had an operating contract. So we were responsible for the operation and also the development of the airport. And this contract matured made us basically to a pure financial investor in a minority stake.

And that's not according to our strategy, where we are involved. We want to be -- we want to take over the responsibility of the operation of the development of the commercial development of the airport. So the status that we had in Belo Horizonte is not aligned with our strategy, and now we had the possibility to sell this stake that's the rationale behind.

Then on M&A more generally speaking, could you please provide an update on the opportunities you're looking at in which geographies, et cetera.

Well, obviously, that's not an open book. The M&A strategy in detail. We see that in India, there are opportunities coming to the market very soon. We obviously will have a look at them. Same is true for Brazil. India, Brazil, these are our core markets whenever there is an opportunity, we will have a look at them.

Within this region, we see projects coming up, for example, in Colombia, Indonesia, Philippines, all of them have favorable regulatory framework, we would be also possible to us to invest as a majority shareholders. For the time being, we remain on the continent that we are focused market still Brazil and India, but we cannot provide more details on that.

Maybe to add there, independent where we invest. We have a strict framework how we invest. And Lukas mentioned that in his presentation, we will have a disciplined approach having this ambition to grow in the international business, but we need to make sure that our core targets with profitability, also with ESG and code of conduct standards are in line with what we believe is important for us as a company as a group.

Then again, I will do a brief clarification. So mentioned pressure on margins for 2026 and 2027 that goes down to EBIT and net income. So that's not on the EBITA level, it's below because of increased depreciation and increased interest costs related to Noida.

And then another question on the medium-term outlook. What's the expectation for investments going forward?

In terms of CapEx.

Yes.

In Zurich or internationally?

For both.

Okay. I mean, in Zurich, it's basically quite clear where we invest. You have seen that the biggest project. It's clearly the Dock A, which is, I would say, the most important one over the next decade, internationally. Lukas just outlined, there are some opportunities in our core markets, and we do look selectively in other markets.

In Zurich, we expect roughly to be at CHF 400 million of investments. There could be years where we are higher and some years where we are lower. I tried to explain that, that it's usually not that easy to. On detail assess when certain investments happen also depending on the progress in those projects we have in Zurich.

Okay. From what I see, that's it. Thanks for those many questions. In case there are still unanswered questions, then please do not hesitate to reach out to the IR team.

Thank you very much for joining us. Have a good day. Thank you.

Thank you.

Ladies and gentlemen, welcome to the presentation of Zurich Airport's Full Year Results for 2025. My name is Lukas Brosi, and I will be hosting this presentation together with Kevin Fleck, our CFO. I would like to remind you that the presentation is also available on our website.

Today's agenda is as follows. I will begin with a brief business update. Following that, Kevin will provide insights into our financial performance and share our outlook for 2026. At the end of the presentation, we will address your questions. Please submit your questions already during the presentation. This helps us organize them more efficiently. Stefan Weber will moderate the Q&A session.

Let me begin by highlighting our milestones for the full year 2025. The financial year 2025 was characterized by continued high levels of traffic, stable operations and significant investments in infrastructure, technology and sustainability. In 2025, Zurich Airport reached a new record with 32.6 million passengers. Under challenging conditions with ongoing construction and during periods of heavy traffic, we were able to ensure reliable and high-quality operations. Zurich Airport has concluded negotiations on flight operation charges with the airport users. The new charge period is expected to commence in October 2026. I will provide more details on this later in the presentation.

On the commercial business, Airside turnover increased, supported by passenger growth and the opening of new luxury stores. Landside turnover was lower due to construction works. The International business continued to grow and benefited in particular from a positive development in Latin America. In India, we have received the aerodrome license for Noida on the 6th of March. The airport is now ready for operations.

Progress is made in key development projects such as the preparatory construction of the new Dock A or the expansion of the Landside passenger and commercial area. Furthermore, we have also prematurely extended the contract with our long-standing duty-free partner, Avolta until 2035. Also worth to mention from a financing perspective is the recent upgrade of our Standard & Poor's credit rating from A+ to AA- with outlook stable. Lastly, we have been active in driving innovation projects, and we're making progress on our ESG goals according to our targets and plans.

Let's take a closer look at some key figures. The 2025 result exceeded our initial guidance, mainly driven by stronger-than-expected traffic development, the later opening of Noida Airport and a more favorable cost discipline. Our results reached new record levels in terms of revenue, EBITDA and consolidated result. Our revenues grew to CHF 1.36 billion with the consolidated result increased to CHF 346 million.

Our CapEx has been substantially higher as well, also because of the acquisition of the Radisson Hotel building in Zurich. In total, we invested approximately CHF 716 million with around CHF 503 million allocated to the Zurich site.

Let's review our main business segments, beginning with the aviation business. Some highlights from the traffic development in Zurich were as follows. In 2025, 32.6 million passengers traveled via Zurich Airport, representing a 4% growth over the previous year. The local market performed particularly well, growing by around 6% year-on-year. Europe, the most important market with a passenger share of 75%, grew by 4%. In Europe, demand was especially high for southern destinations in Spain, Italy, Turkey and Portugal.

Edelweiss and easyJet led passenger growth through added capacity. The intercontinental market saw a year-on-year passenger growth of 6% and accounted for 1/4 of the passenger volume with the biggest markets, North America and Asia Pacific showing growth rates of 4% and 6%, respectively. At 80%, the average seat load factor remained at a high level. Flight movements were also positive and climbed by 3%. Around 1% more freight was handled in 2025 compared to 2024.

Flight operations in 2025 were characterized by persistently high volumes and stable quality during busy periods such as Easter and summer and autumn holidays. On certain peak days, the number of travelers exceeded the 120,000 mark for the first time. With the summer and subsequent winter flight schedule, the routes offered were further expanded, thereby reinforcing the international connectivity and competitiveness of Zurich Airport.

In the reporting year, Zurich Airport was connected directly to 220 destinations in 75 countries served by 70 airlines. As a relatively small country and economy, Switzerland and Zurich have exceptionally good direct connections with the world. While several new destinations were launched in Europe, 2 new long-haul routes to Seattle and Halifax were launched by Edelweiss. In addition, capacities were further expanded on various established routes.

In Europe, the busiest destinations were London, Berlin and Istanbul. New York, Dubai and Bangkok continue to be the busiest destinations at the intercontinental level. Our high service level was also recognized externally with Zurich Airport once again having received the Airport Service Quality Award as the best airport in Europe, marking the ninth consecutive time to receive this distinction.

In February 2026, Zurich Airport has concluded negotiations on flight operations charges with the airport users for the next regulatory period. The new charge period is expected to commence in October 2026. Airport charges for users of Zurich Airport will be reduced by approximately 10%. Thanks to the positive passenger traffic development and Zurich Airport's disciplined approach to cost and investments, cost coverage in the regulated sector can be maintained despite the reduction in charges.

The reasonable return on the capital invested, also known as the WACC will be increased from 5.0% to 5.5%. With the new rollover mechanism, any surplus or shortfall from a charge period will be considered in the future when setting charges for the subsequent charge period. This ensures sustainable cost coverage -- coverage of capital cost for Zurich Airport. The agreement provides planning certainty for all parties involved and represents a strong partnership-based outcome for airport users at Zurich Airport.

In the following slides, I'll give you an overview of our commercial and real estate business. Let's start with the commercial business. In addition to the growing passenger numbers, new luxury openings such as the Cartier boutique, the expansion of Bvlgari as well as the exclusive beauty formats of Chanel and Dior led to a positive development in the Airside center with increasing commercial turnover.

On Landside, commercial turnover decreased due to construction work as part of the project to develop the Landside passenger zone. In March 2026, Zurich Airport has prematurely extended the duty-free contract with its long-standing partner, Avolta. The existing contract will be extended from 2029 by 7 years running until the end of 2035, matching the expected completion of the construction work for the new Dock A.

The real estate business again proved itself to be a solid segment and an important pillar of our business performance in 2025. Revenues from rental and leasing agreements increased while there were lower energy and utility cost allocations, mainly because of lower electricity cost. An important strategic step in 2025 was the acquisition of the Radisson Blu building. With this acquisition, Zurich Airport is now the owner of all land and buildings within the Central airport perimeter. The Circle continued to strengthen its position as a successful business hub with the signing of several new contracts in the office and food and beverage segment.

Last but not least, let's turn our attention to our international business. Let's take a look at the passenger numbers at our airports in Latin America. Passenger volumes at Florianopolis Airport increased by around 6% year-on-year, reaching a new high with a total of 5.2 million passengers. This record is primarily due to a strong growth in the international segment. Passenger volumes at the Vitoria and Macae airports recorded a significant year-on-year increase of 13%. The main reason for this strong growth was the lifting of the previous restrictions on flight between Vitoria and Santos Dumont Airport in Rio de Janeiro.

Passenger numbers for Natal Airport in the Northeastern Brazil were mostly trading in line with last year. At our airport in Chile, Antofagasta showed passenger growth of 7%, while passenger numbers in Iquique declined due to weaker domestic demand and capacity reductions.

Let me share some highlights from our majority-owned airports in Latin America. Our concessions in Latin America have seen a very positive year 2025 with our Brazilian airports showing record figures for revenue, EBITDA and net profit as well. Our airports in Latin America are among the best and most advanced in the country in terms of quality, passenger satisfaction and sustainability.

In October 2025, Florianopolis reached a historic milestone. For the first time, over 1 million international passengers were recorded in a single year. Florianopolis is now the third largest airport in terms of international passenger after Sao Paulo and Rio de Janeiro. Vitoria and Macae have achieved airport carbon accreditation Level 4, placing them on the same sustainability level as Florianopolis, which has already achieved Level 4 at the beginning of the year.

In Macae, recently, a new solar power plant was inaugurated and the construction of hangars have started, which should be completed in 2026. Natal has seen a successful fundamental redesign of its commercial concept with various new tenants. Also in Natal, we are constructing a new solar plant supporting our sustainability goals on group level. In Iquique, construction of the northern apron started in June, but was delayed due to works on the electrical substation. Works are planned to restart in March 2026 with an estimated 6 months completion period. And in Antofagasta, the concession ended in February 2026. The handback progressed smoothly and as planned.

Finally, we would like to share the latest update on Noida with you. To start with, we are happy to report that Noida International Airport is ready for operations, which represents a major milestone for the project and a significant step for our international business. All major terminal construction works have been completed and the operational trials have been successfully concluded. We have also received the aerodrome license from the Indian regulator on the 6th of March, which paves the way for the start of operations at Noida.

Based on today's assumption, we expect it will now take approximately 30 to 45 days before commercial operations can commence. After opening, we assume a ramp-up phase of around 3 to 4 months. For the calendar year 2026, we expect up to 4 million passengers. At the EBITDA level, we currently expect a neutral contribution for 2026. Due to depreciation and interest expenses, Noida's net profit contribution will likely be negative. With that, I hand over to Kevin.

Thank you, Lukas. Good afternoon, ladies and gentlemen. Welcome, and thank you for joining us. I will now provide an overview of the company's financial performance. Let me start with a financial overview. Sustained growth in traffic volumes in Zurich and across our foreign concessions led to new records in terms of revenue, EBITDA and consolidated results.

Total aviation revenue increased slightly faster than passenger volumes, rising to CHF 709 million. This is primarily because of the stronger growth in local passengers who pay higher fees than transfer passengers. Non-aviation revenue declined by 0.2% to CHF 652 million. Adjusted for concession accounting, this reflects an increase of CHF 15 million or plus 2% compared to 2024. EBITDA increased year-on-year by 4% to CHF 762 million, setting a new record high while maintaining a strong EBITDA margin of 56%. The consolidated result rose by 6% to CHF 346 million. This includes an impairment of around CHF 6 million for our airport in Iquique, Chile.

So let's take a closer look at the non-aviation figures. Total commercial and parking revenue increased only slightly by 0.2% compared to the previous year. This is due to the reduced land side retail offering as a result of the ongoing construction work. Real estate revenues saw a marginal increase of 0.2% to CHF 198 million. While revenue from rental and leasing agreements increased, energy and utility cost allocations declined because of lower energy costs. Revenue from services grew by 7% to CHF 52 million, primarily driven by increased traffic.

The International business experienced ongoing growth, largely driven by positive developments at Brazilian airports, where passenger numbers rose significantly and non-aviation results remained solid. Overall, international revenues rose by 10% to CHF 114 million, excluding concession accounting.

Last year was a turning point regarding our cost development. Excluding concession accounting, we managed to slow down OpEx growth from 9% in the previous year to 4% in 2025, reaching total operating expenses of CHF 588 million. Personnel expenses saw a 10% increase, mainly due to the in-sourcing of services for passengers with reduced mobility, which is offset by an equivalent reduction in other operating expenses. The increase was also driven by other volume-related effects and inflation adjustments as well as measures to increase employer attractiveness.

When compared with the higher passenger volumes, costs for police and security disproportionately went up by only 3%, amounting to CHF 133 million. Energy and waste costs declined by 19% to CHF 36 million, thanks to lower electricity costs. In summary, we have effectively managed cost growth, resulting in a significant improvement, supporting a positive outlook.

I will now outline some key financial ratios. Net financial debt saw a slight increase, resulting in a leverage ratio of around 1.8x. Higher invested capital influenced our return on invested capital, which declined slightly to 7.8%. Operating cash flow increased to CHF 688 million, reflecting the strong consolidated result and changes in working capital. Higher investments, including the purchase of the Radisson Blu building impacted our free cash flow generation, which stood at minus CHF 28 million.

The next slide shows the largest projects we have been working on in 2025. Zurich Airport invested a total of CHF 760 million, of which CHF 503 million were invested at the Zurich site. This includes the purchase of the Radisson Blu building for CHF 155 million. The single biggest project at the Zurich site was the development of the main airport complex, including the new Dock A. Other significant projects were the development of the Landside passenger area, the refurbishment and expansion of the baggage sorting system and the development of the freight infrastructure. Our most significant international project in 2025 was the development of Noida Airport. So let's proceed to the outlook.

Given the current geopolitical situation in the Middle East, it is challenging to give guidance for the ongoing financial year, especially since no one knows how the situation will evolve. In Zurich, passenger growth is projected to range from 2% to 3% in 2026, which corresponds to a passenger volume of over 33 million passengers. We had a strong start to the year with encouraging passenger numbers, which helps us to manage the increased uncertainties. As mentioned by Lukas, a new charge period with lower airport charges will come into effect in October 2026 in Zurich. Taking into account the forecasted passenger growth and lower airport charges from October, aviation revenue is expected to remain stable.

At the Zurich side, Commercial revenue is likely to remain stable as well compared to the last year due to the ongoing closure of commercial spaces as part of the project to develop the Landside passenger zone. Real Estate revenue is expected to rise slightly, mainly due to inflation adjustments. Revenue from International business will see an increase again, primarily driven by the opening of the new airport in Noida. In total, non-Aviation revenue is expected to be higher overall.

In 2026 financial year, the opening of Noida will lead to an increase in operating costs, while only a very moderate increase in costs is expected at the Zurich site. In summary, we expect EBITDA in 2026 to be roughly the same as the previous year. However, consolidated profit is likely to be lower. With the opening of Noida Airport, depreciation and interest expenses will impact the income statement. It is important to note that we expect another strong financial performance from our main asset, Zurich Airport in 2026.

The projected decrease in the group's net profit is attributable to Noida Airport. Investments at the Zurich side are expected to be between CHF 350 million and CHF 400 million in 2026. Subsidiaries abroad will invest an estimated CHF 100 million with the completion of construction of the new airport in Noida accounting for the majority.

With this, I'm handing back to you, Lukas.

Thank you, Kevin. Lastly, I would also like to inform you about changes at our Board of Directors and the Management Board. After 12 years, Guglielmo Brentel will step down from the Board of Directors of Zurich Airport with effect from April 2026. The company would like to thank Guglielmo Brentel for his great commitment.

Stefan Paul will be proposed as new member of the Board of Directors to the Annual General Meeting in April 2026. He is Chief Executive Officer of Kuehne and Nagel International. His experience and expertise will be an ideal addition to our Board of Directors. Furthermore, the Management Board of Zurich Airport will be reduced from 7 to 6 members. This change is part of a realignment of responsibilities to enable the company to respond more effectively to future challenges and further strengthen the dialogue with our key stakeholders.

Manuela Staub, the current Chief People and Communication Officer, will leave the company at the end of July 2026 as a result of this change. The Board of Directors and the Management Board would like to thank Manuela for her great commitment and valuable contribution to the development of Zurich Airport during the last few years. We have now reached the end of our result presentation, and we'll begin the Q&A session. I will now hand over to Stefan Weber, who will moderate the sessions. Stefan?

Thank you, Lukas. We have received quite a number of different questions. Let's kick it directly off with the first question on Noida. In the outlook, we were mentioning that we expect to handle around 4 million passengers in the calendar year 2026. So does this imply any change to our previous expectations or the business plan that we have presented at the CMD back in 2023?

No, there is no significant update to the business plan we have presented at the Capital Market Day in 2023. It's simply a shift. We initially expected those returns and profits earlier.

The next one is again on traffic, but for the Zurich side. What are the assumptions behind the 2% to 3% guidance? It is perceived rather conservative as we have seen a very strong start into the year 2026?

If I may start to answer these questions and Kevin can take over. Where we are today in a situation and a level of uncertainty that is different to like what we have assumed 2 weeks ago. It's true that we had a very good, almost a brilliant start in this year with the passenger numbers 7%, 8% above previous year's levels. Nevertheless, we already see in the numbers of March that Middle East will have an effect on short term on the demand.

Today, I consider it as too early to have a better view on the medium- to long-term effect of the situation in the Middle East on the demand side, on the capacity side, et cetera. We now see on a daily basis that the operation is coming back. We have today 3 flights to the Middle East, but it can change tomorrow. And given this, on one hand, a good and solid start into the year, but having a high level of uncertainty around the Middle East, which represents about 5% of our passengers, nonetheless.

So we stick to the guidance we have given that we assume volume growth despite the impact of Middle East this year as we can expect it from today's perspective, but remain on the cautious side with our guidance. And maybe it's also part of our company's history rather guiding on the conservative side at the beginning of the year, but being happy to update when we have more visibility in the course of the year.

I have nothing to add.

Excellent.

Okay. Let's continue with a rather financial question on the investments. We are guiding for CHF 350 million to CHF 400 million investments at the Zurich site and around CHF 100 million abroad. Could you share some more thoughts on the investments, Switzerland, India, but also Latin America?

This year, we will primarily invest in Zurich. The largest projects are the new Dock A tower and Dock Base Landside passenger zones, as we also mentioned before in our presentation, the Zone West. We expect approximately CHF 100 million of remaining investments in Noida. This is also due to invoices, which we are expecting during this year, which is quite a normal process for such a large-scale project. And in LatAm, we expect very little and limited CapEx investments in this financial year.

Next one is on the dividend. Going forward, net income is expected to decline. Is there any chance that the dividend payment for the financial year '26 might be flat compared to this year?

Maybe I start off and you could then add Lukas. We introduced a new dividend policy as of the financial year 2025. And to be honest, we are lucky with this respect that we had a bit of a delay in Noida because that was one of the reasons why we had quite a decent net profit where we can first time use the 75% of payout ratio. So going forward, we stick to this dividend policy we have decided on. And we, as of today, do not expect to change anything going forward.

I have nothing to add, but just maybe as this is an important topic for our shareholders, maybe to repeat my own words. When we have introduced the new dividend policy, we came from like the history of having an ordinary dividend and an extraordinary dividend. And we, at that time, assumed that the impact of the opening of Noida, which will be negative on net profit in the first year, as we have heard, will also impacting the 2025 financial numbers.

And therefore, because of the delay, 2025 result was better than initially expected. And therefore, I would rather say that our shareholders' profit from higher base in 2025 and the new dividend policy of 75% of payout. And this new dividend policy is also attributable to the, let's say, new balanced net profits, including the cost of Noida, including the tariff effect, et cetera, onwards.

One more question on the Zurich investments. The guidance provided the CHF 350 million to CHF 400 million is now slightly higher than the previous run rate we indicated of CHF 300 million to CHF 350 million. So what's the reason for this slight increase in the guidance? And is the peak CapEx still expected at around CHF 400 million in the early 2030s?

We also in 2025, invested a bit more than we initially guided and that we adjusted the guidance for 2026 is that we are making good progress on one hand. And having the largest project in mind, the Dock A, there we initially started with the architectural competition. So there we had kind of a number in mind. We already communicated in the half year result that we expect for the main project, the core project, something roughly a bit more than CHF 1 billion. If we take into consideration all other projects surrounding, it will be a higher number. And this is also reflected in the CHF 350 million, CHF 400 million CapEx guidance we give for 2026. And we expect that we will be there, as you have asked, the CHF 400 million and the peak investment in the [ 30s ]. So this is unchanged.

If I may add on this, I think the upper end of this range, CHF 350 million to CHF 400 million can really also be seen as a cap for the next years, just from a couple of also like technical arguments. For example, we have ongoing construction on several construction sites, which is something that also is limited in terms of the passenger flows, et cetera. And also just simply because of our own staff, engineers, technicians, et cetera, there is like a natural limit of CapEx that can be absorbed by the company in a single year. So the upper end of this range, I would say, is also a valid number for the next couple of years as a maximum.

And a question on real estate revenues. If we compare H2 to H1, the revenues are unchanged. Shouldn't be any positive contribution coming from the Radisson Blu acquisition?

Like from the Radisson, we have guided high single-digit contribution. We have 2 effects in the last financial year. On one hand, the ancillary costs were lower due to lower energy costs. So that caused a decline initially. And then we were able to compensate it with higher rental revenues, including the revenues from the Radisson Blu acquisition, which we did in May 2025.

Now changing to the commercial revenues. There, the guidance goes for stable revenues. Now taking into account that passenger numbers are increasing, this suggests that the revenue per passenger is actually going down. January was rather good. So what's the reason for this conservative stance?

I think it's a combination of Airside and Landside and whatever is volume driven is applicable to Airside mainly. On Landside, we have now at the end of last year, in addition, closed several shops for the construction. So we are now in the phase where the construction perimeter is large. This impacts because of closures of the shops, the Landside turnover. So the guidance can be seen as an overall assumption of commercial business. But on Airside, it's true more volume generally generates higher revenues.

Then a question related to the costs in the Aviation segment. 2025 shows PRM costs of CHF 12 million, whereas in 2024, it was 0. What's the reason?

We have in-sourced those services. So we are doing those services on our own. In 2024, we had a partner who was responsible for the PRM services here at Zurich Airport. So that's the reason why we have an increase. But at the same time, we have at the same extent, lower other operating costs in 2025.

I would say that's a shift within the P&L. And just a general remark on PRM, this is in the medium run a pass-through. So we have a passenger fee for this service, which at the end covers the cost.

Next one is on The Circle performance. Could you share some more insights on the financials that the Circle contributed in 2025?

Maybe I'll start and Kevin can take over. I think in terms of numbers, about CHF 70 million of revenues from The Circle as 100%, we are owner of 51% with a sustainable EBITDA margin of roughly 70%. I'm also very happy that the progress in terms of new rental agreement, especially on the ground level, which was kind of an issue in terms of -- at the beginning of the ramp-up of The Circle has had a very positive development. We have now 50 tenants in The Circle with about 5,000 employees. And we always have assumed a certain ramp-up for The Circle in our business plan, but this has now been also, I would say, a success story. We had to make certain adaptations on the ground level, which is basically done and The Circle is up and running.

Maybe only to add there, for us, it's an important piece with respect to resilience and diversification. So we have, as Lukas mentioned, EBITDA margin of 70%. Also decent cash flows we have from our tenants at The Circle. And there is still plenty of headroom. If you look at the valuation, we run it a book, but there is a valuation we do twice a year there. It shows that it has a true value in our books.

Then some more questions related to the International business. Can you quantify the impact in 2026 on depreciation and financial expenses from the commissioning of Noida?

It's a question for the CFO.

On an annual basis, we expect roughly CHF 75 million to CHF 80 million, so CHF 25 million to CHF 30 million in depreciation, amortization and approximately CHF 45 million in interest rate expenses on a full year scale.

Then in Latin America, just a few days back, we've handed back the concession in Antofagasta. How much was the contribution to EBITDA in 2025?

It was a single-digit million figure, roughly.

Again, back to India. When do you expect the next phase of Noida expansion to begin? And how do you expect it to be financed? Would you participate in any equity injections?

Not from today's perspective, we assume that Phase 2 can be financed locally by additional debt, obviously, but also with the cash flow of Phase 1. In terms of guiding when we do achieve the full utilization of the capacity for Phase 1, which will be about 12 million passengers, I would say that we will be -- that there is a trigger of about 80% of that number when we have to start planning for Phase 2. I personally believe that this will be in about 3 to 5 years from the inauguration.

Back to Zurich. The Circle valuation in the notes, there is the market value of The Circle. What drove the decline in this valuation in 2025?

We decided to shift it, let's say, from a shopping to a business center, and that also caused that we changed specifically on the ground floor our tenants. And those tenants are, on average, paying a lower rent, and that was one of the drivers which caused a slight devaluation of the asset. But as mentioned before, it doesn't have any impact on our P&L since we are having The Circle at cost in our books.

Then back to a very popular topic at the moment. Is the ongoing war in the Middle East expected to have any impact on traffic? And how was it factored into the 2026 guidance?

Well, it's basically what I said before. In terms of setting this guidance as we are aware, it might look a little bit conservative given the solid start into the year. So the guidance of 2% to 3% compared to the roughly 7% of volume growth in the first month. As mentioned before, I can't go into more details. It's really too early to have like a full assessment on a full year impact 2026. Maybe one word to add is that also we are now coming in a phase of a tougher comparison base compared to maybe the previous 2 months. And this overall and given our nature of maybe tend to be on the conservative side at the beginning of the year, ended up in the 2% to 3% guidance.

And another one on traffic. How do you expect easyJet capacity in Zurich to evolve in 2026?

Also positive. easyJet has developed to our second largest carrier out of the Lufthansa -- or it's the largest carrier out of the Lufthansa -- except the Lufthansa Group to say it in that word. easyJet had a very positive development over the last years. And it's also worth to mention as easyJet has not placed a single aircraft in Zurich. So they do not have like an overnight parking. That's because of the slot situation in the morning. So they are basically flying in from other cities to Zurich and do the operations during the day and fly out. And with this business model, they are managed to get like the second largest carrier here in Zurich and on a positive trend.

What's the reason in your view for the very strong performance during the current winter timetable?

May be just a general answer to this. It's strong demand out of the local market we have seen. And what we also observe in general is that, I mean, a couple of years ago, we had really strong seasonal peaks, and this has also a little bit developed to a single peak from, let's say, April, beginning of Easter with some holidays, et cetera, almost to the end of autumn. And the same is true also for the winter timetable. It's based on a strong local demand.

Another one on Noida. Could you please elaborate on the reasons for the delay in the opening?

Well, there are several. Looking back 5 years, we've been awarded with the concession at the end of 2019, really shortly before COVID hit the whole industry. I would rather say it's probably the only capital airport in the world that has planned remotely as this was the situation. We have started the planning. Then we had like the disruption in the procurement process after COVID. And then finally, now on the latest stage, we have maybe also a little bit underestimated the award of the security clearance as this has been dealt with multiple government entities, et cetera. But nevertheless, we made it, and we're now looking forward to great growth in the operation in Noida.

Still on Noida, the budget for the construction is CHF 750 million. So far, you have not invested all the money. So what's the reason that there is still some investments left? Or could it be even lower at the end?

We still expect the CHF 750 million as the final costs. The fact why we have at year-end, a lower number is, on one hand, there is some minor things we have to finish that doesn't have an impact on the opening of the airport. And some of the invoices have not yet been sent. That's not an unusual situation that those will then be sent in during the year or even at a later stage. We have seen similar effects when we were constructing The Circle or did other large-scale projects.

Now we have a question on the charges negotiations. What's the rationale of seeing a 13% cut in passenger charges and a much lower cut in landing charges or the other aviation charges. Was this your request to the airlines?

There are basically 2 effects. On the one hand, we included the costs for the baggage sorting system. So those charges are charged the same way as the landing charges. So that's integrated that reduces complexity. And since we just invested heavily in the baggage sorting system, we decided that it makes sense to include it in there. So that had a compensating effect. And the second is the higher noise charges, which will come into effect together with the new charges and which also have a compensating effect.

Another renegotiation that just happened recently is on the duty-free contract. Shall the market expect any significant changes to the P&L once the new contract comes into force?

Overall, the concession fees of the agreement remains unchanged. For us, it was important that we can find a solution with our long-standing partner, specifically for also the situation where we had a lot of construction work going on around the Dock A tower and Dock Base. We have not disclosed in agreement with Avolta further components of the contract. But on the commercial side, we can confirm that the concession fee of the agreement is unchanged.

And this is the same model of contract than the current contract. So it's basically a pure turnover-based concession. This is also unchanged in terms of the structure of the contract.

Another one on tariffs, but this time for Noida, what's the latest on the tariff setting process?

The interim tariffs were released in August last year. They should last until the 31st of March. Now given the current time line, it is expected that those interim tariffs will be extended beyond the 31st of March. The consultation paper was published last Friday by AERA. So this is a draft proposal on the airport charges, which is published by the regulator to invite comments from stakeholders before the tariffs will be finalized. And now we are in the process of analyzing this document. And right now, we cannot make any further comments. It's 250 page long, and we are analyzing it, and we'll give feedback as soon as we have a clear view about the next steps we go there. We expect that we will have final tariffs in place approximately in 2 to 3 months.

One more on the charges, again, back to Zurich. Are you satisfied with the rates you negotiated with the airlines?

I would say, yes, definitely. I do understand that it came maybe with a bit of a surprise that the reduction was a bit larger than initially guided. But that's also a positive sign. Specifically in the last quarter of 2025, we had a very strong traffic growth. There were other parameters within the model, which developed more favorably. And this caused to a large reduction, but that's all covered within the rollover mechanism. At the end, important for us is the increase we could achieve on the WACC with 50 basis points. So I would say, overall, I'm happy, but maybe you as my boss could also comment if you are happy too.

Same here. I would really say that we have a favorable regulation framework in Switzerland in terms of the tariff as it's mainly on the partner negotiation-based first step, and it's always good to find an agreement amongst partner rather than a fallback solution by the regulator. And the most important point is what Kevin has mentioned is the rollover mechanism, which is also kind of unique to us, and it's now applicable for the tariff period that have been negotiated and which basically also means that any surplus shortfall of this tariff period can be brought forward or will be brought forward to the next tariff period.

So basically, in the regulated business, we are entitled to cover our operating costs and the cost of capital. And I think with all what has been achieved in terms of the rollover, et cetera, there's I think a high -- very high certainty that this on the base that we have will be applicable for the future. So I'm very happy with the outcome, yes.

One more on the Noida CapEx. Previously, you were saying that there have been already some kind of pre-investments into Phase 2. Could you let the market know how much this actually is?

I don't have the number, but the pre-investments into Phase 2 are mainly aircraft stands that we have seen that given the demand for Noida that the aircraft stands are too low, what has been like the minimum defined for Phase 1. So we are constructing certain additional aircraft stands, which were only foreseen for Phase 2.

The amount is a low single-digit million Swiss franc amount. We will pre-invest in Phase 2.

Then still on Noida, how are the network plans evolving and which airlines are expected to operate this year?

I think the first customers -- as we have already communicated, the first customer will be IndiGo, Akasa and probably Air India Express. So the 3 largest local airlines. And this will be like the start. And after the ramp-up, we also expect certain international carriers to join Noida.

Then we have one question related to the costs. What does your guidance assume in terms of energy costs and general inflation?

If you look at the energy costs in Zurich, that's approximately 4% of our OpEx, 1% is fossil energy, whereas the majority of this fossil energy is gas. So the exposure is not that huge. I think the question is most probably referring to the situation we see in Iran and all the consequences. The majority of energy we need here is electricity. So there, we procured almost the complete volume we expect for 2026, and we already procured some of the volumes in 2027. So we do not see a direct influence, at least for this year results out of increasing energy costs.

And as a rule of thumb, about 50% of energy costs are passed through to our tenants and about 50% is our own cost for the airport infrastructure. So there's also a certain cost protection as a pass-through of 50%.

And one more question related to the Middle East. How much do the passengers from Middle East contribute to retail revenues for Zurich?

As per today, I cannot give you a precise guidance of this. As mentioned, about 5% of our passengers belong to the Middle East destination.

But also within those 5%, the majority is transfer. So it's not per se local passengers to the Middle East. But overall, like a rule of thumb, the commercial spending are basically correlated with the increase in passenger numbers.

And again, on Noida, what makes you confident that the airport will open within the next 30 to 45 days?

As all preconditions are met today, and we also have like an order from the state government to plan for an inauguration ceremony at the end of March. This gives us certain confidence that this is going to happen as we assume from today's perspective.

Then back to a project here in Zurich. What's your current estimate when the land side commercial area will start to increase? Or when will the construction project be finished?

We assume that first openings -- not the full opening, but first openings will be in autumn 2027. And after this, there will be several months for the full opening for the project.

Another one on the Noida tariffs. The interim tariffs are supposed to be in place until end of March. Now the consultation period will likely take longer. Can you confirm that despite this, interim tariffs will be maintained?

Yes. As mentioned before, we expect that those interim tariffs will be extended beyond the 31st of March until we have the final tariffs in place. And that's what I mentioned before, is in the range of 2 to 3, maybe 4 months from now.

Then could you please provide some medium-term assumptions considering the -- sorry, that's for the upcoming tariff period. So the main assumptions for traffic growth cost increase over the next 4 years?

We -- I mean that will be quite a long-term guidance, to be honest. We do not share that. But it's fair to say that we, on average, expect that our traffic here in Zurich grows with population and GDP growth. I also mentioned that we do expect only very moderate growth in costs. So we should have -- we should be able to generate economies of scale going forward, which was not always the case when we look back over the last 2 years. So I can't give you more midterm assumption and guidance on that. When we look at the next charge period, it also depends on the investments we do in the regulated business over the next 4 years.

Another more medium- to longer-term question relates to the construction of the new Pier A and what's the expected impact on the commercial revenues during these construction works?

There will be an impact, of course, because of the construction work, but it's too early to give a guidance on that.

Maybe we can just overall say that we are doing everything we can to keep the major brands and keep the volume and the offering we have also during the construction period. But as Lukas just mentioned, it's too early to give a clear guidance what the effect will be financially.

Then one question related to the rollover mechanism. Does this mechanism force Zurich Airport to revert any over or underperformance in the very next regulatory period? Or could it potentially be split over several periods in the future?

I'm not sure if I understood the question correctly. If we should have a surplus or shortfall during now the upcoming period of 4 years, this will then be part of the next negotiation round to come, which will potentially also be a period over 4 years. So we do not expect that we would use a surplus or shortfall and then just use it over multiple periods. The goal or the mechanism behind the rollover is that this will be then taken into consideration for the next charge period.

And then one question related to a political discussion here in Switzerland. There will be a referendum on a potential cap on population growth. Would you expect this to have an impact on traffic?

Hard to say. There will be a public vote. I think it will be this year, if I'm not mistaken, which is basically kind of a cap of capping the population at 10 million inhabitants. Hard to predict from today's perspective if this really has an impact on the long-term growth of the airport.

Okay. I think that's it with all the questions. If there are any more questions from the participants, then please do not hesitate to reach out to the IR team. Thanks.

Thank you. Those were a lot of questions. I take this as a high interest in our company. Thank you very much for the trust in our company. I wish you all a wonderful day. Thank you.

Thank you. Bye-bye.