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HOLD ON FOR THE FUTURE Fraport USA I The future of the passenger experience is here now.


TOU CH

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F U T U R E


Fraport USA


MISSION STATEMENT: To provide the best airport environments by creating unparalleled customer experiences, delivering authenticity with innovation, engaging regions in new economic opportunity and generating unprecedented non-aeronautical revenue.

VISION STATEMENT: The passenger experience is everything. Fraport USA is the brand that is reinventing passenger engagement by providing excellence at every level.

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Visionary


The best way to predict the future is to create it.

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Visionary


Fraport is a global partner in our vision and in making it happen. - Cleveland Airport System

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Visionary


Brett Kelly Interim CEO, Fraport USA • Oversees North American operations across five major markets for one of the world’s leading airport companies. • Responsible for BWI’s awardwinning concessions program and the transition of BNA to its new concessions development. • Thought leader, innovator, consensus builder with extensive mediation & arbitration training, MBA, Certified Leasing Specialist & Six Sigma GreenBelt Professional.

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The future of air travel is being created by Fraport USA.


• Immersive experiences • New technologies • Inspired tastes and trends • Exceptional customer service protocols • Community engagement at every step • Strong new non-aeronautical revenues to your bottom line

It’s a vision we see in every passenger experience. It’s a promise we deliver for every one of our airports.

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The Model Driving the Future


Unique concepts that offer the same airport experience as they do downtown. THAT’S how you create authenticity.

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The Model Driving the Future


Fraport has been amazing in introducing the developer model into an airport environment and balancing it with local talent and high quality. - BWI Thurgood Marshall Airport

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The Developer Model Works.


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The independent model that also performs well with a master operator in the house.


WITH OUR MODEL YOU GET: • Competition and street pricing • True local participation and sense of place • Local suppliers connected to airport tenants • Local & ACDBE financing program • Launch Pad program for minorities and locals • Up to 350% new job growth created within the airports 19


Our Airports


It’s vitally important when customers come through our terminal, they get the same great customer experience they get at our other touchpoints‌

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Our Airports


Fraport is one of the few organizations who actually understands (a great customer experience). - JetBlue Airways

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BALTIMORE/WASHINGTON (since 2003) • Largest airport by passengers in Metro DC area 13.4 million enplanements • Doubled per passenger sales – up to $11.40 •

300% increase in ACBDE

participation rate from before Fraport – up to 37%

20 million capex investment

$

CLEVELAND INTERNATIONAL (since 2008) • Most enplanements in a decade – up to 4.7 million enplanements •

85% increase in per passenger

spend since becoming Fraport – up to $10.87

• One of the highest ACDBE participation rates in the nation at 50% •

9 million capex investment

$

• Concessions Employment: 500 pre-Fraport / 1700 with Fraport

• Concessions Employment: 343 pre-Fraport / 588 with Fraport

• Tenant Leases: 5 pre-Fraport / 91 with Fraport

• Tenant Leases: 14 pre-Fraport / 32 with Fraport


NEW YORK / JFK T-5 (since 2018) • Headquarters terminal for JetBlue. 7.6 million enplanements a year • One of the highest per passenger spends in the nation – $17.57 • Looking to exceed ACDBE target of 10% •

25 million in proposed capex

$

investment

NASHVILLE (since 2019) • The city is booming and at 16.2% annual growth and 8 million enplanements, the airport is one of the fastest growing in the U.S. • Strong, double-digit per passenger spends – $11.51 • Planned ACDBE and local participation rates – each in excess of 50% •

17.4 million in capex

$

commitment

• Tenant Leases: 12 pre-Fraport / 42 with Fraport

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PITTSBURGH (since 1992) • Strong growth in enplanements – 4.8 million • Per passenger sales have risen to a record $14.75 • •

28% ACBDE participation rate –

nearly triple the original target rate

$40 million capex investment

• Concessions Employment: 200 pre-Fraport / 725 with Fraport • Tenant Leases: 8 pre-Fraport / 45 with Fraport


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Our Airports


Fraport/

EPAX 2018

Total CAPEX

ACDBE

Sq. Ft.

Sales 2018

Sales/EPAX

Rent Split

EBITDA

Lease End

FT E

Cleveland (CLE)

4,833,188

$9M

50%

49,459

$52.6M

$10.88

75/25

$1.3M

2024

4

Maryland (BWI)

13,591,786

$20M

38%

110,350

$155.0M

$11.40

70/30

$7M

2022

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Pittsburgh (PIT)

4,847,802

$40M

28%

86,030

$71.1M

$14.67

77/23

$1.6M

2029

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New York (JFK –T5) ***

5,788,566

**$25M

10%*

46,713

$101.7M

$17.57

62.5/37.5

$1.4M

2027

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8,007,049

**$17.4M

45%*

69,000

$92.2M

$11.51

60/40

2029

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Tennessee (BNA) ****

* Target ** Proposed *** Partial year sales (April 2018) *** Contract began on February 1, 2019

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Results


Fraport’s street pricing policy makes a huge difference. The customers are so comfortable buying in my store. - Sportzburgh (owner/operator)

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The Future, By The Numbers


• Nation’s #1 Customer Experience program – PriorityOne tenant support and development program • Unprecedented double-digit per passenger spends at every Fraport USA airport – among the highest in the nation • Nearly $500 million in total annual sales • Transformative revenues – national average of more than $1300/sq.ft. • Exceptional community support – industryleading local and ACDBE participation •

75.7 million passengers travel through

Fraport USA airports

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Why Fraport is the World Leader


Fraport is the world leader in superior guest services, emerging technology and operational excellence.

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Why Fraport is the World Leader


Our success is deeply rooted in the partnership we have with Fraport. It’s a model for other airports to achieve to. - Allegheny County Airport Authority

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Why Fraport is the World Leader


• • • •

300 million passengers a year

served worldwide

30 airports operated globally in

10 countries

$3.8 billion revenues 22,650 worldwide employees

• Innovative, integrated U.S. concessions programs delivering unprecedented gross sales: BWI $155 M CLE $55 M JFK T5 $130 M BNA $100 M PIT $75 M

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TOUCH T


HE FUTURE


fraport-usa.com

Fraport USA P.O. Box 12318 Pittsburgh International Airport Pittsburgh, PA 15231-0318 412.472.5180 FGB - V.4 - 11/25/19

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