Características de la tecnología

The Fraport Group consists of 67 companies in Germany and other countries.

Internationalization creates additional opportunities for Fraport: we participate in fast-growing markets and reduce our dependence on the Frankfurt location. Our focus in operations outside Frankfurt is on airport management, ground handling and aviation security.

The airport investments, BOT projects (build, operate, transfer), other companies and co-op- eration ventures outlined below are of particular strategic importance and influence the asset, financial and earnings situation. The figures in the following summary are based on the financial statements of the individual companies before consolidation.

Consolidated Group companies

We held 73.07% of the shares in Frankfurt-Hahn Airport until the end of the year under review. The shareholders‘ equity of the company is to be increased in early 2005. In this context, the State of Hesse will be joining the company as a shareholder by acquiring 17.5% of the shares. The existing shareholders Fraport AG and the State of Rhineland-Palatinate will then own 65.0% and 17.5% respectively. The strategic focus of what used to be a military airport in the Hunsrück region is on the low-cost market as well as on charter and cargo business. The main passenger transport customer is the Irish airline Ryanair. It flies to 21 destinations from Frankfurt-Hahn in the meantime, but has partly postponed the increase of capacity until 2005. In addition, Volare Airlines and Air Polonia have discontinued their connections from Frankfurt-Hahn. Thus, passen- ger growth was slightly lower than expected: the increase over 2003 amounted to 13.6%, mean- ing that 2.8 million passengers were transported. The cargo volume (including trucking) that was handled increased by 20.0% to almost 191.1 thousand tonnes. This growth was due in part to the start of business by British Airways World Cargo, which has been flying from Frankfurt- Hahn since September 16, 2004. The British airline began by relocating one flight per week from Cologne-Bonn and another one from Frankfurt to the Hunsrück airport because of the planned ban on night flights; it increased the frequency to four flights a week in November.

Revenues in Frankfurt-Hahn increased by 31.0% over 2003 to € 29.6 million; thanks to the dis- proportionately small increase in the operating expenses, the EBITDA loss was reduced by € 3.2 million to € –4.3 million.

We hold a 51.0% interest in the company operating Saarbrücken Airport, which is the small- est airport in our portfolio with 0.5 million passengers (0.4% more than in the previous year). It primarily handles passenger traffic in the package tour field. Revenues and EBITDA stagnated at almost exactly the same level as in the previous year: the revenues totalled € 9.7 million and the EBITDA € 0.8 million.

We own 50% of the company operating the international terminal in Antalya in Turkey (Antalya Havalimanı Uluslararası Terminal is˛letmecilig˘i Anonim S˛irketi). We also hold additional 30% of the dividend rights. Following the large drop in passenger traffic in the previous year during the Iraq war, the number of passengers increased again substantially in fiscal 2004 by 27.4% to 12.4 mil- lion. Revenues were 31.2% higher than in the previous year (€ 94.5 million) at € 124.0 million, while EBITDA were up 29.5% at € 67.7 million.

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Security is part of the Fraport Group‘s strategic core business. Our wholly-owned subsidiary ICTS Europe Holdings B.V. continued to expand its leading position in the aviation security field in Eu- rope in 2004. The ICTS Group (ICTS Europe) operates at more than 50 different airports – from Lisbon to Athens, from Oslo to Rome – and has 18 independent subsidiaries in 17 countries. The customers include American Airlines, Delta, Continental, US Airways and Northwest Airways as well as Athens, Paris Charles de Gaulle and Amsterdam Schiphol Airports. Aviation security is the main area of ICTS Europe‘s operations, while it also develops integrated security concepts and provides its know-how outside the aviation industry too, for example in the area of maritime security.

In view of the high quality of ICTS Europe‘s security services, the American Federal Aviation Agency FAA has approved the company for all US airlines in Europe. In June 2004, United Airlines and ICTS Europe concluded a contract that covers security checks (passenger and passport con- trols, examination of hand baggage and the aircraft) at such airports as London-Heathrow, Paris Charles de Gaulle, Frankfurt, Amsterdam, Munich and Zurich.

Two major sports events – the Olympic Games in Athens and the European Football Champion- ship in Portugal – represented particularly tough security challenges in 2004. ICTS Europe was involved in both of them as a security service provider.

ICTS Europe succeeded in increasing its revenues in fiscal 2004 by 19.9% to € 301.4 million with new customers, services and locations. EBITDA amounted to € 22.5 million, 30.8% more than in the previous year.

The wholly-owned subsidiary VAS Flughafen Bodenverkehrsdienste GmbH (VAS) provides aircraft handling, baggage and passenger services at Vienna Airport. Revenues increased by 1.0% to € 10.3 million, whereas EBITDA decreased from € 1.0 million to € 0.9 million. The company was renamed Fraport Ground Services Austria GmbH with effect from January 1, 2005. S.A. TCR International N.V., in which Fraport holds 50% of the shares, is based in Brussels and operates in the area of ground handling equipment rental and maintenance. The TCR Group (TCR) has locations at airports in London, Manchester, Paris, Amsterdam, Brussels and Jackson- ville, Florida. The TCR Group increased its revenues by 20.2% to € 39.7 million in 2004, while EBITDA were up 18.7% at € 14.6 million.

We entered the ground handling business in America in October 2004. The newly established, wholly-owned subsidiary Fraport Ground Services USA, Inc. is based in Jacksonville, Florida. Our US subsidiary provides aircraft handling services (ramp and baggage services) and passenger ser- vices at the international airport with about 5 million passengers a year. The aim of the company is to provide ground handling services at other American airports as well.

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Fraport set up a subsidiary in China with Shanghai Airport Group in 2004. Both airport com- panies hold 50% of the shares in Shanghai Frankfurt Airport Consulting Service Co. Ltd., which is based in Shanghai. The joint venture contract has an initial term of 20 years. The main purpose of this new consulting subsidiary is to provide professional advice about the building and opera- tion of airports as well as personnel training for civil aviation in China.

Investments held at equity

Fraport holds a 30% interest in the company operating Hanover Airport (Flughafen Hannover- Langenhagen GmbH). Hanover Airport is the home base of Hapag-Lloyd Flug GmbH and – since 2003 – of the low-cost carrier Hapag-Lloyd Express GmbH too. Hanover benefitted from the on- going traffic growth in the low-cost market. The number of passengers increased by 4.1% over 2003 to 5.2 million and revenues were 1.7% higher than in the previous year at € 129.0 million, whereas EBITDA were 8.5% lower at € 31.4 million (previous year: € 34.3 million). Higher expenses because of increasingly exacting aviation security requirements as well as non-recurring measures to develop the low-cost market were the main reasons for the disproportionately large drop in earnings.

Fraport holds an interest of 42.75% in the company Lima Airport Partners S.R.L. (LAP), which is expanding and operating Jorge Chavez Airport in Lima, Peru. LAP has a 30-year operating concession, with an option to extend it by a further ten years. The Peruvian airport is becoming increasingly important in Latin America, which is reflected in passenger development: compared with the previous year, the number of passengers rose by 11.9% to 5.1 million. Due to exchange rate effects, revenues were down 1.3% at € 60.8 million, while EBITDA were 5.9% higher than in the previous year at € 12.5 million. In US dollar terms, revenues and EBITDA increased by 8.2% and 16.5% respectively.

Other investments

We own 20% of each of six joint ventures (UTE) in Spain trading under the name of Ineuropa Handling. The Ineuropa Handling joint ventures provide handling services at Madrid-Barajas, Palma de Mallorca, Alicante, Ibiza, Menorca and Teneriffa South Airports on the basis of conces- sion contracts. Smaller satellite stations are operated at Teneriffa North, Las Palmas (only cargo handling) and Albacete Airports too. Most of the concession contracts are expiring in 2005 (the expiry date for Madrid Airport is 2006) and a new tendering procedure is being held.

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