Fraport AG Plans Dividend Increase Higher Payout Ratio Planned for FY2004
Higher Payout Ratio Planned for FY2004 - Revision of Management�'s Stock Option Plan
FRA/rap> At next year�'s annual general meeting (AGM) of shareholders on June 1, Fraport AG�'s supervisory and executive boards are planning to recommend a noticeable increase in the company�'s dividend for the 2004 business year. In its meeting today, the supervisory board has accepted the executive board�'s recommendation of a payout ratio ranging from about 45 to 50 percent - based on the Group�'s annual profit - to shareholders for fiscal year 2004. The exact dividend amount for fiscal year 2004 will depend on the official conclusion of the company�'s annual statement of accounts next March. For fiscal year 2003, Fraport AG made a dividend payment of 44 euro cents per share - a total of about 35 percent of the Group�'s annual profit of 115.2 million.
With an equity ratio of 54 percent, Fraport AG has an extremely strong balance sheet. In the first nine months of 2004, the Group�'s revenues climbed 8.7 percent to about 1.5 billion compared to the corresponding period in the previous year. Group profits grew by 13.5 percent to 117.2 million and earnings per share improved from 1.18 to 1.30. The Fraport share also experienced a stronger market price; it has increased over 30 percent since the beginning of 2004.
Furthermore, Fraport�'s supervisory and executive boards will recommend to the next AGM a new stock option plan for management. The existing plan from the 2001 flotation year has been revised and will be vigorously tied to the new Corporate Governance Code.