Ladies and gentlemen, welcome to the Flughafen Zürich AG half year results 2021 conference call and live webcast. I'm Andy, the Chorus Call operator. I would like to remind you that all participants will be in listen- only mode and the conference is being recorded. The presentation will be followed by a Q&A session. You can register for questions at any time by pressing star and one on your telephone. Webcast viewers may submit their questions or comments in writing via the relative field. For operator assistance, please press star and zero. The conference must not be recorded for publication or broadcast. At this time, it's my pleasure to hand over to Mr. Stephan Widrig, CEO. We will now be joined into the conference room. Welcome, ladies and gentlemen, to the presentation of our company's half year results 2021. My name is Stephan Widrig. I'm the CEO of Zurich Airport, and I will host this presentation as usual together with Lukas Brosi, our company's CFO. The presentation is available on our webpage, zurich-airport.com, and available as a webcast as well. I will start with the business update before our CFO will provide you with information on our financial performance, followed by the outlook. At the end, as always, we will have enough time to answer your questions. If you are using the webcast platform, it's also possible to submit questions already during the presentation. Stefan Weber, our Head of Financial Services and Investor Relations, will moderate the Q&A session. Air traffic demand remained low during first half year. Between January and June 2021, only 2.1 million passengers used Zurich Airport as a departure, transfer, or destination airport. That's down 61% from the prior year period. In comparison with the first half of 2019, the number of passengers fell by as much as 86%. The number of flight movements fell by 32% in the first half of 2021. Only the number of freight flights increased by approximately 20%, which also had a positive impact on the volume of freight handled compared with the previous year. The first half year 2021 was disastrous for the whole travel industry, it is also quite evident that there is now slowly but surely light at the end of the tunnel. With the progress of vaccinations, eased travel restrictions, and lifted quarantine regimes, especially also in Switzerland, air travel demand has picked up substantially since summer. Even if some setbacks will happen over the coming months, the trend shows now clearly in a positive direction. We summarize the first half year 2021 with the following milestones. Planning certainty will be crucial for bringing traffic figures back to pre-Corona levels. The Swiss government has taken important steps in that regard in May by lifting all travel restrictions and abolishing quarantine rules for tested or vaccinated people completely. Within Europe, freedom of travel is now restored again. This has also led to a rise in the number of bookings with airlines and travel agencies in summer. Also positive news was the rejection of a climate tax for passengers by Swiss voters. In June this year, they rejected the so-called CO2 law, which would have foreseen a climate tax of between CHF 30 and CHF 120 per passengers. A new law is unlikely to be discussed anytime soon. Swiss probably will follow the route of the European Union in that regard, which is a very good news. A milestone was also the opening of the Hyatt Regency Zurich Airport Hotel, which is the first hotel under the Hyatt Regency brand in Switzerland. The 255-room hotel is located within the airport in The Circle. Attached, there is a large convention center that opened at the same time and allows large events up to 2,500 people for conferences, fairs, or also gala dinners. Bookings are, of course, still on a low level, but show also a clearly positive, encouraging trend. Internationally, we are making good progress in Noida, Delhi, with the signing of the shareholder and financing agreements, taking over the land shortly from the government. The project development is on track, as are the Macaé and Iquique projects in Latin America. In Latin America, we see also a robust domestic demand already coming back, and we have stable operations. On the cost side, our tight cost management and mainly use of short time work enabled us to reduce operating expenses by approximately 30% versus 2019. The short- time work scheme by the government has been extended till February 2022. In the past year, Flughafen Zürich AG successfully placed a total of three bonds totaling CHF 900 million while paying back a maturing bond for CHF 300 million at the same time. Moreover, as a precaution, we have exercised our contractual option to increase our credit facilities to a total of CHF 300 million at the beginning of this year. In conjunction with reductions in costs and investments, our company's liquidity is secured. As at the reporting date, it stands at CHF 450 million, which does not include the undrawn credit facilities. We were also able to adequately safeguard liquidity in our Latin American holdings, thanks to a combination of cost savings, increased charges, and postponed concession fees. In spite of these positive developments, the first half of 2021 remained financially challenging for the company, our partner firms, and the aviation industry as a whole. Total revenue in first six months of 2021 decreased year-on-year by 15% to CHF 264 million. Compared with 2019, this represents a decline of 55%. EBITDA declined slightly to CHF 92 million, and the consolidated result for first half year stands at a loss of CHF 45 million. As can be seen on the slide, our investment reductions bear fruit and have been reduced by almost half. Let's go through our main segments shortly, starting with the aviation business. The level of air traffic reached roughly 25% of pre-pandemic levels at best in the first half year, with intercontinental flights and business travel being particularly badly affected. On the slide, you see the main traffic figures for a difficult first half year 2021. The trend since summer is clearly positive. While some setbacks have still to be anticipated for the coming months, freedom of travel is gradually restored globally, especially for vaccinated people, and also with a very liberal regime in Switzerland. The negotiated agreement for flight operation charges came successfully into force in the first half of this year. From April until December, a 10% discount on flight operation charges is applicable to support a successful ramp-up for the airlines. This discount was agreed upon in our negotiations with the airlines last year and will terminate at the end of this year with stable charges on pre-Corona levels then for the years to come. As mentioned earlier, the CO2 Act was rejected. Still, protecting the climate is one of the greatest challenges of our age for aviation. Our company has taken climate change very seriously for decades. For instance, as an infrastructure operator, we have already met the requirements of the Paris Agreement for 2030 and made a binding commitment to be zero carbon by 2050, including a defined reduction path. We are also committed to the use of alternative sustainable aviation fuel, and we do our part so that this technology can be used at Zurich Airport by the airlines as quickly as possible. On the next slides, we will provide you with an overview about our commercial and real estate business. For retailers and especially for bars, cafes, and restaurants, the restrictions imposed during the first half of 2021 were drastic. While stores were able to reopen only at the beginning of March, restaurants were not permitted to do so until early June. On top of the absence of passengers, as many people were working from home, Zurich Airport also experienced greatly reduced commuter footfall, which also negatively impacted our commercial business. Thanks to very stable partnerships, however, we did not lose any tenants and have had no legal issues so far, while still remaining a tough stance in our contractual discussions. Since the beginning of July, all our retail and hospitality offerings are open again during main hours. Our commercial business has resumed well during the summer travel peaks, slightly above the traffic figures. The Circle has been equally impacted by the lockdown, but is progressing well in its transformation from a construction project to a vibrant new district at the airport and a stable real estate revenue source. A milestone was, as mentioned, the opening of the Hyatt Regency Hotel and Convention Center. We gradually open new offerings, for example, a new brand house by the AMAG Group about mobility. At the same time, our office tenants are moving in sequentially. Overall, 85% of the available space is leased out. Our commercial partners in retail tax and duty free and food and beverage operations have seen turnover fall significantly as a result of the coronavirus. The legal assessment is that the Minimum Annual Guarantee agreed is not payable by tenants affected by the closures ordered by the authorities. Accordingly, we did not recognize the Minimum Annual Guarantee for the period of the official closures ordered by the authorities in the first half of 2021, same as in the period of the prior year lockdown. In addition, further rent concessions for the post-lockdown period were discussed with the commercial partners concerned and solutions agreed. The rent concessions granted in this context were recognized as assets in accordance with IFRS 16 and will be amortized on a straight-line basis over the term of the relevant contracts. In sum, the Minimum Annual Guarantees were lowered by approximately CHF 20 million in the first half year. On the next slide, an update from our international holdings is provided. Let's begin with some updates from Latin America. In Brazil, our airport shows steady improvements in terms of traffic since April, and we are confident that the positive trend should continue since traffic is based mostly on domestic demand. As stated in the past, we are eligible to receive compensation in Brazil for part of the COVID-19 damage in form of a financial re-equilibrium. So far, we can confirm the receipt of the financial re-equilibrium for our airport in Floripa for the year 2020. We estimate to receive a positive response also for Vitória and Macaé for 2020 shortly. For 2021, we haven't handed in our requests yet, but we will do so in due course. From an operational point of view, we consolidated our management functions in Brazil, which results in cost savings in the low single million digit Swiss francs amount. Let's now turn to another continent where we were able to make significant and crucial progress in India. As shown on the slide, some milestones were achieved, culminating in the signing of the financing agreements with the State Bank of India. In the last one and a half years, we have been in discussions and negotiations with the bank, even during the pandemic, and we are very satisfied with the conditions provided by the bank. As a reminder, out of the total CapEx of around CHF 650 million, we expect for Noida, we have to transfer roughly 35% from our parent company in Zürich as equity, while the remaining 65% is provided by the State Bank of India in Indian Rupees on a non-recourse basis. We are proud to say that the financing represents the largest debt financing secured for a greenfield airport in India ever and is also the largest debt underwriting by a single lender in India for a greenfield airport. Besides signing the shareholder agreement, we are also pleased to confirm that most of the land has been handed over to us. We have signed the site inventory memorandum, which gives us the right of way to the available part of the site to commence construction activities. We have started the same already this week, and we plan to deliver the first phase of Noida International Airport within three to four years once all of the site is made fully available to us. With this, I'm handing over to Lukas. Thank you, Stephan. Good morning, ladies and gentlemen. Welcome also from my side. I will now give you an overview of the financial performance of the company. The pandemic's impact is still obvious and can be clearly seen in our financial numbers. In the first half of 2020, the first two months, January and February, were still on pre-crisis level before the aviation world changed rapidly in March. The first half year 2021 was completely affected by the crisis, and as a result, this year's numbers have been slightly worse than last year. Aviation revenue fell by 50% to CHF 66 million. The fact that aviation revenue did not decline as deeply as passenger volumes is because not all charges are linked to the latter. Moreover, a temporary 10% cut in flight operation charges, excluding emission and noise charges, came into effect as of April to help airlines ramp up operations again. Over the same period, non-aviation revenue rose by 10% to CHF 198 million. I will explain on the next slide why this number increased. Compared with the prior year period, EBITDA fell by 12% to CHF 92 million. In comparison with 2019, EBITDA is as much as 70% lower. The bottom line result for the first half of 2021 was a loss of CHF 45 million. In the prior year period, we likewise posted a loss of CHF 28 million, whereas a profit of CHF 143 million was achieved in 2019. Let's have a closer look at our non-aviation figures, which were differently affected. The increase in commercial revenue was mainly due to the application of IFRS 16 to the rent concession granted in the retail, tax and duty-free, and food and beverage segments. In the appendix of the presentation, you can find further information that explains the IFRS 16 mechanism. While the revenue from parking was also affected by the crisis, revenue from the international business performed similar to last year, and facility management posted a plus of 8% to CHF 75 million. This increase is primarily attributable to additional rental income from The Circle. Our past investments in strengthening stable real estate revenues have proved particularly beneficial during the crisis. As mentioned before, we have been able to cut our operating costs considerably. Compared with the prior year period, operating expenses fell by 17% to CHF 171 million. The savings are mainly attributable to lower personnel expenses as a result of short-time working, lower police and security costs, and other general cost reductions. Compared with 2019, after adjustment for expenses for construction projects, operating expenses were down by 30%, which translates into cost savings in the first half of the year of roughly CHF 73 million. I will now outline some key ratios. Net financial debt, excluding the Airport Zurich Noise Fund, stands at CHF 1.4 billion, and net debt to EBITDA peaks at 7.9 x. As a result of lower profit numbers, the return on investor capital stands at -1.5%. The operating cash flow figure was also lower compared to the prior year period, while the free cash flow was slightly better than in the year before due to the significant reduction in cash outlays for investments. The next slide shows the largest projects we've been working on this year. The Circle was officially opened in November 2020. That being said, there is still some completion work to be carried out until the end of this year before CapEx for The Circle will drop to insignificant levels. The new baggage sorting system hasn't seen any major construction delays resulting from the pandemic so far. Planned installation and interior fit-out were done during the first half of the year. Work on the new building will be completed by the end of the year, and the new central baggage system area will then be gradually installed. The project is expected to be completed by 2025. The expansion of landside area is a major project and pivotal for the use of all landside zones. Although the work was proceeding on schedule, the decision was taken to delay completion in order to safeguard liquidity. The new landside passenger areas are now scheduled to open at the end of 2026, at the latest. This will include new retail outlets, underground logistics, and a ground-level food hall. With this, let's move on to the outlook. The forecast for the current financial year is still surrounded by a great deal of uncertainty. If the positive trend from the beginning of the summer months continues, passenger volumes can be expected to sustainably exceed 50% of 2019 levels by the end of the current year. This will create the conditions for the company to return to profit and generate positive free cash flows again. Further setbacks cannot be excluded, however. As well as aviation revenue, commercial revenue remained under pressure for 2021. Thanks to additional income from The Circle, revenue from real estate proved to be extremely stable during the crisis and is set to grow in 2021. A speedier recovery is expected in the case of revenue from international business activities, as this is more dependent on domestic travel in the respective markets and should therefore recover more quickly. The company expects to further improve the cost savings achieved in 2020 this year. That being said, it is also foreseeable that costs are set to increase again as of next year. First, the short-time work scheme will come to an end. Second, the volume-related cost will increase once passenger number increases. Still, the achieved cost reductions, mainly in overhead and administrative costs, shall be partly sustainable beyond the recovery phase. Investments at the Zürich base in 2021 will amount to approximately CHF 220 million. Therefore, the CapEx guidance set at the beginning of the year can be confirmed. Depending mainly on when construction begins on project in Noida, investment at subsidiaries abroad will add a maximum of CHF 100 million. This is clearly to be seen as a maximum number for 2021. On this slide 23, I'd like to provide you with an updated overview of our estimated CapEx in Zürich and internationally over the next few years. Although we are still pursuing our strategic projects and our high-quality standards in Zürich, we have reduced our midterm CapEx plans as much as possible, especially where CapEx is capacity driven. Internationally, CapEx is based on a project basis and is typically front-loaded over the concession period. In Brazil, after having successfully built a new terminal in Florianópolis, there is only limited CapEx needed for this airport going forward. For the plant works in Vitória and Macaé, we currently expect CapEx of approximately CHF 80 million until 2024. In Chile, the main CapEx item will come from the airport in Iquique, with estimated investment of roughly CHF 20 million in 2021. In India, we estimate total CapEx for this greenfield airport to amount to around CHF 650 million, which is spread over the next three to four years. As of now, we believe the construction start will be in Q4 this year. Now I would like to provide you with some thoughts about our midterm business and financial planning. 2019 was an extraordinary year in terms of financial health of our company. Today, the situation is quite different with a lot of uncertainty. We, of course, don't know when the current crisis ends. Nevertheless, there are some moving pieces that gives us confidence that we should be in an even better position in the years after the crisis than we were in 2019. With the signing of a tariff agreement in July 2020, we have clarity regarding the refinancing of the losses caused by the crisis. Aviation revenue bounced back in line with traffic. On the non-aviation side, our investments in real estate, which includes The Circle and the Priora assets, are estimated to pay off as well. Together with higher revenue from our international subsidiaries, we believe our non-aviation revenues will perform strong in the years to come. Together with the goal to achieve sustainable cost savings, the profitability of the company will be higher once reaching pre-crisis passenger numbers. After the new airport in India and the terminal in Macaé will have been built, our international CapEx will drop significantly. On the other hand, possible pent-up CapEx in Zürich may arise and increases CapEx compared to the now reduced levels. The positive cash flows after reaching the break-even point of 50% volumes will allow us to resume an attractive dividend in parallel to reducing debt. This last slide, this last slide gives you a glimpse on how our debt situation may evolve in the coming years. As a result of high international CapEx, mainly in Noida and Macaé, our international net debt held on the books of our international subsidiaries will increase. At the same time, with the air travel recovery taking place, we estimate solid free cash flow generation in Zürich, with which we aim to deleverage our parent company's balance sheet. Here, our strategy remains unchanged. We aim to keep leverage low in Zürich and target to take out the maximum of loans for our international holdings in local currency to achieve a natural currency hedge and optimize equity returns. Especially in the year 2020, this strategy has been successful, and the lower parent company leverage helped us to raising long-term bonds at highly attractive conditions. With this, I am at the end of my part and hand back to Stephan. Thank you, Lukas. We now open the Q&A part of this presentation. First, we'd like to invite the questions asked on our webcast platform, and then answering the questions raised by phone. Stefan Weber, I hand over to you for the moderation. Thank you very much. We have received a couple of questions on the cost savings. Lukas, could you probably share a bit more color on the long-term cost savings? What OpEx line items will drive the savings, and how much will be saved over the full time of recovery until we reach 2019 passenger levels? This is not actually a surprise that cost saving is on the top list of potential questions. I think the cost savings achieved by the half year of 30% is quite remarkable. Our initial estimate was 15%-20% due to a large part of fixed costs, generally in our business. But, also based on a faster recovery than what is happening right now. Maybe in other words, with the 30% cost saving, we were able to mitigate the slower recovery quite well on the cost side. The total amount of OpEx saving in the full year 2020 last year was around CHF 80 million. For the outlook, I think we have to split the operating expenses among the individual drivers. There are costs that depend directly on the volume, where we have to be mainly careful that these costs do not increase faster than volumes. But, there are also cost savings based on supplier contracts that have been renegotiated, which I consider as sustainable. Ultimately, we can also influence part of the cost directly, for example, in the administrative area or the overhead. All in all, the management's ambition is to keep half of the 2020 cost savings, which we can directly influence over the recovery phase. In numbers, this amounts to CHF 20 million-CHF 30 million compared to 2019, and mainly consist of reduced staff in Zürich and abroad, and cost savings based on supplier contracts that have been renegotiated, and cost savings in the administrative and overhead area. We have one follow-up question on costs related to staff. Siobhan from Deutsche Bank would like to know, once the short-time working scheme will end in February next year, what are your plans? Could there be an additional headcount reduction, and if so, how material might this be in terms of costs? Well, we said in the past, which is true also to answer the question precisely, this is something that we really have to be carefully looking at in the next month. So far, we have reduced staff by roughly 8% in Zurich, so this is something that is already done, and we will see in the next year's costs for 100% for the full year effect. It depends on the scenario that we assume in autumn, looking into the winter capacity planning. If the recovery is taking place, one has to consider that this is also going in peaks. If the recovery follows now the trend of summer, we also need a lot of staff during the peaks. If we see another slowdown of the recovery, this is something that we have to carefully assess in autumn. Forward looking to the end of short-time working, which will be at the end of February next year. We have two questions relating to retail revenues and the bias that is caused by IFRS 16. Pascal from Bank Vontobel would like to know what contribution from IFRS 16 can we expect for the second half of the year, and whether we would already go into talks or negotiations with tenants about the rents and minimum guarantees for 2022. Yeah. Short answer to that, from today's perspective, we expect roughly the same amount as we had the CHF 20 million in half year for the second half of the year. So, total of roughly CHF 40 million compared to a total of CHF 50 million last year. The amount will be lower this year. This is based on discussions we currently have or already signed contracts with our partners. We have a high visibility on that. The second part of the question, do we already negotiate contracts for 2022? No. We always said, and this was true last year and true for this year, we have to look into individual agreements with our partner. There is not one-size-fits-all approach from our side, and whatever we agree has to be for the individual year, no multiple year concession for the majority of our contracts. Next, we have a question from Martin from Bank of America. Is it your intention to pay a dividend as soon as net profit is positive on a full year basis? Short answer on this is yes. Let's move on. Next question from Charles from Kempen. He would like to know about an update on the occupancy of The Circle. We are still roughly at 85%, which is better than anticipated in the business plan. Which means that the last three to four months, we have not had considerable new tenants that we could announce. We had three, four brands and dialogue tenants that we announced, but in terms of total space, this is not the relevance to change the big figure. We still have roughly 10%-15% of the offices available. In terms of the size of this development and that we had to rent all at the same time, we believe this is a very good occupancy rate for a real estate office project in general, especially during this pandemic and also for the size of the project. No progress on the big figures in office over the last three to four months, probably also a little bit pandemic driven. We see that a lot of tenants say, "Let's first wait till one or two years." Now might extend their tenant agreement for another year till they have made their final home office policy after Corona. There is a certain reluctance in the market to sign new agreements now. But, we believe that all reasons to shape your office after Corona go into a direction to have less space at very well-connected places in a kind of modern setup. The Circle fulfills all these criteria companies will have on their checklist. We are not worried at all that within two years, The Circle will be close to 100% occupancy. We have another question from Charles, more finance related. You mentioned a net debt to EBITDA target below 3x by 2025. Could you give us more granularity on the development in the coming years? Yeah. I'll also try to give you a short answer on that. We assumed in our business and financial planning that the reduction of the leverage, the reduction of the debt towards this target goes in parallel with the recovery of the passengers. Therefore, we set this as a four-year target. Once we are creating positive free cash flows, which in our assumption is now the case towards the end of this year, but for the full year next year, then we have to balance a debt reduction, dividend payments and CapEx here in Zürich quite carefully. Based on our business planning, all the three elements goes in parallel. That's not like an accelerated reduction of debt planned, but over the next four years in parallel with the recovery of volumes. We have received some questions from Vittorio, from Alvento. He's a bit worried about the aviation revenues in the future. Assuming that we will reach pre-crisis traffic levels, tariffs might go down significantly. By assuming a lower cost base, a lower WACC, and a flattish regulated asset base, so how can the situation for the Zürich financials be in a better position compared to 2019? Well, this is much forward-looking. I think it's really too early to worry about, first of all. I think there are too many moving targets around the question of, let's say, the next tariff period after 2025, and therefore we are a little bit reluctant to give here further guidance. Let's focus first on recovering the losses that we have in this period, and then we, if necessary, might be concerned or worried about the next tariff period. Obviously in the aviation segment, we have a certain rate of return, which now has become stable in the Swiss regulatory environment. In that context, if traffic would be lower than anticipated, if costs would be lower, obviously we can still charge a tariff that allows the same rate of return. I think that's the good thing about aviation, that you have a kind of ensured rate of return. While of course, in the non-aviation business also, we have now gained volume that we can compensate volatile aviation traffic in the short term. I think both effects work in our favor, a guaranteed rate of return in an established regulatory setup now after a few years on the one hand, and a large, especially real estate business to have a certain counter-effect on the revenues. The second question from Vittorio, it's about the international business, and he would like to know if we are working in providing more financial disclosure on the international division. That's something that is on the radar screen. I understand you, as investors and analysts, to have more, that you want to have more details. We try to give you more details, for example, in the annex of the analyst presentation, et cetera, but there might be also an individual segment with more disclosures going forward. Yes. His last question is about a project that is currently under construction, so the expansion of the land site area. If we have a rough estimate on how much additional revenues this might generate by 2025, 2026 on the land site retail area? No, not so far. There are no details disclosed at that project stage. You have to do an educated guess on that. We have another question coming from Deutsche Bank. It's on regulation in a broader sense. How are we being compensated by the regulation for the losses suffered due to COVID-19? Do we anticipate any long-term higher costs as a result of COVID? For example, because people move around differently or have a different behavior or requirement for testing facilities, et cetera. Maybe I start with the regulation first. Our mechanism here that we have recovered the economic losses of the regulated business over time until there's like an ending point in 2025, but it's basically a NPV 0 calculation, taking into consideration the overearnings from the beginning of the tariff period started in 2016, and the underearnings arising from the existing situation. Once this is going to a zero number, the new tariff period will start. This is what we name as a compensation for the losses. Your second question might be also early to see the long-term impact on the cost structure out of the COVID crisis. In my personal view, this is something that the industry really has to carefully work on and avoid long-term costs arising from today's document checks or similar measures taken during the pandemic. Overall, if there are more costs, this relates to the regulated segment and will be then part of the refinancing going forward. Next, we have Jose from Santander. His first question is on the personnel expenses. Personnel expenses in H1 this year, they were lower than H1 last year, but also lower than H2 last year. What additional actions, such as staff reduction, did produce those additional savings? Could you please quantify the benefit of short- time working hours in H1 this year? In my view, maybe we have to double-check, this comes from the fact that last year we had two full months or even two and a half full months of operation. Now we have the full impact for the six months of short- time working. So far, we received CHF 20 million of compensation in the half year 2021, which, depending on the recovery, might be a lower number for the second half of the year. The second question is on economic relief from regulators or from governments. Other European airports, they have applied for such relief. Could Zurich Airport see some relief, too? If you look on the European scene, this has mainly been given to regional airports and hardly any airports in our size. So, if then something was given, it has a cost attached to it, which is higher than our way of doing it ourselves. We are not intending to ask in Switzerland for government relief because we think it's cheaper to do it on the private capital markets. On the other hand, of course, we ensure that through the tariffs we can regain over the coming years most of the loss. In Brazil and Latin America in general, Chile also, where there are official packages for relief on the concession fee, for example, which we don't have in Switzerland. There, of course, we apply for these relief schemes and also in Chile, we already got it. In Brazil, we are sure we get it for the concession. There it's a standard procedure where we apply for it. There are currently no more questions on the webcast. Do we have any questions on the phone? Anyone who has a question or a comment may press star one at this time. The first question comes from the line of Dario Maglione from Exane BNP Paribas. Please go ahead. Hi, good morning, everyone. Three questions from me. The first one, have you tendered any new retail concession contracts? If yes, how are the rates compared to pre-pandemic level? Question number two on retail and duty-free. You recorded CHF 52 million in H1, against CHF 34 million in H1 last year. Why was that the case? Question number three on construction cost inflation. We're seeing cost inflation for most of construction projects around Europe and the world. What about in India? Have you already contracted out the construction phase and do you have any indication formula or something to prevent cost inflation there? Thank you. Thank you, Dario. I start with the first question on new retail tenders. Luckily, the large retail concessions we have, they have a longer duration till above mid 2020. Obviously, it's not the best timing to tender out now new concessions. Of course, we perceive a large hesitancy to commit hefty Minimum Annual Guarantees as was in the past. We have smaller, of course, usual smaller rental agreements that we continually renew. If we have to renew one this year, we do it for one or two years so that we wait for a better business environment to do longer contracts again. If we talk to the retail tenants, they perceive it as us that we will still have some impact this year, next year. We will have maybe growth a little bit postponed, but everyone believes in the midterm traffic we will generate at the medium-sized premium hub like Zurich is. We do not, definitely not see retail tenants that want to move out and not to renew, but obviously now is not the right time to do a new 10-year contract because we have to wait till the markets have become slightly normal, more normal again. On your question regarding the duty-free revenues, there we may have go into a little bit more details bilaterally, but in general, one can say that the results as per half year are not directly comparable to each other for accounting purpose, which, first of all, one has to differentiate between releases that we provide to our partners, which would, because of the lockdown situation that is recognized in the same year, which was basically the full impact then last year by the half year result. This year somehow different, as we are capitalizing whatever is after post-lockdown period on the IFRS 16 rule. In my view from there is the difference. This is something that we can follow up in more detail. Your question regarding the EPC contract. We are now in the tender of the EPC contract for Noida. We have to carefully look into cost inflation, which is not secured by an EPC contract so far, but from first signs we get, this is not something that is worrying us for the time being. There is an inflation linked in tariffs going forward to refinance. Thank you. Next one in line. The next question comes from the line of Daniel Bürki from Zürcher Kantonalbank. Please go ahead. Hello. I would have a question regarding concession accounting, which was very low in the first half. I expected some concession accounting in Brazil. Did you delay this project on the two airports? And then, maybe a second one on India. Let's say we have the pandemic going on and on. Do you have some covenants or an exit possibility? I know it's a difficult question, but if you could shed some light on this one. Thank you very much. Thank you for those questions regarding concession accounting. The accounting treatment of the concessions in Latin America and India is different. We do not need to apply concession accounting for the project in Noida, which is, in my view, in favor to us and in favor of you as the overall CapEx of the project goes into P&L for the next years. For Brazil in particular, there were no major investments in Brazil in the first half year 2021, as this project in Macaé is only starting in a couple of weeks. If there is an exit point in Noida, there is always an exit point in the project. So far, looking into the milestones, having the financing signed, having good progress in the handover of the land, this is not actually an option that we pursue. Thank you. Maybe one additional word from me on the India daily procheck. In March, that was before the second wave hit India, traffic figures were already domestically in India above pre-pandemic levels. Of course, now we had the second wave, but already now the domestic traffic has coming back fast. We are a 40-year concession for the capital of a 1.2 billion country. We are very convinced that this capital, which is at the same time also the main economic capital besides Mumbai, will have a very clear growth as a developing market, irrespective of the economic development of India. The pandemic definitely does not have a major impact on a 40-year outlook for such a main capital airport. I think we really have to look 40 years, and in a very large market, which has just one airport. If you look at the London area, this is kind of the Gatwick now developing there. We are not worried for short-term considerations on that project. Thank you. Next one in line. The next question comes from the line of Cristian Nedelcu from UBS. Please go ahead. Hi. Thank you very much for taking my questions. A few, if I may. Firstly, on the traffic in the second half of the year, if you can put a bit more color around your guidance there and talk about the winter schedules, but also if you can make reference a bit to what you expect for 2022 in terms of your discussions with Swiss, in terms of their connectivity, in terms of discussions with new airlines or anything that you think is noteworthy there. The second one, on Zürich CapEx. You do mention that you delayed or postponed projects in 2021. Could you remind us what is the quantum of the CapEx that you've postponed in Zürich since the start of COVID-19? Maybe help us how to think about midterm CapEx there, so beyond the next few years. I guess the last one, just a bit of a sort of conceptual one. In 2051, when your concession ends, could you remind us what happens to your revenue streams from the non-regulated side of the business? Which of those remain going forward, even if you wouldn't have the concession in the airport? Could you give us a bit more details there as well around the ownership of the buildings in the airports, if you can clarify that point. Thank you. I might start with the second half traffic. In general, we are cautious to give precise guidance for second half of the year and also for next year. As we have mentioned, and as you understand, a lot of uncertainty around, but from that point on, having had like the 43% of volume in July, from that point on, we expect like a gradual recovery towards this 50% end of the year. From the first numbers we see from August, this trend is also confirmed in the last day. I think it's too early to go into detail for next year. Nevertheless, I think from that point on, we expect to reach like 2/3 of pre-crisis level by next year, and then a growth towards pre-crisis level until 2025. This might be conservative compared to other airports' guidance and generally to the industry assumptions. I think we're also very happy and ready if recovery takes place faster. We remain on the cautious side in terms of OpEx and CapEx planning going forward, and that's our base assumption. If things move on quicker, we are also ready to deliver. Your second question on CapEx. I think for the next year, we have also set beside the annual CapEx number of CHF 220 million, we also have set an investment program of CHF 600 million for three years, so 2021, 2022, and 2023. An average CHF 200 million number is also what we expect as CapEx in Zürich for the next two years. Then depending on the recovery, we assume also a moderate ramp-up of CapEx towards an annual number of CHF 250 million-CHF 300 million at the end of the decade. With regard to your third question on the concession in Zurich ending 2051, if we look at the concessions we have in Brazil and in India and abroad in general, these are so-called build-own-transfer concessions. You get the right to operate an airport for 40 years. You have to make certain investments, and after 40 years, you have to transfer back the asset without any compensation. Zurich is a fundamentally different concession because we are the owner of the land, we are the owner of all the buildings, and of course, operating an airport needs certain public rights to do it. For this, we get a concession from the Swiss Government, which we perceive as, since we are owning and controlling the buildings, we will also we perceive this as a kind of eternal concessions, but of course, governments could try to get more tax money, to make some other conditions on the concession, which we then have to see what happens in 20 years. Commercially, in case this concession would not be renewed, the government would have to fully compensate us for the value of the land and of the buildings under Swiss law. From an investor perspective, it will remain our economic value, the buildings and the land, if we would lose the concession, someone else would have to compensate us. We do not think this is a kind of comparable concession renewal as you may perceive it abroad. Here, it will just be an eternal concession as we perceive it. Understood. That's very helpful. Can I just quickly follow up? Effectively, in this scenario, let's say the concession is not renewed, you will still keep on getting The Circle revenues out of the other real estate or other non-regulated activities. Are there other revenue streams that are independent from the concession? Whatever is. Will you keep on getting that? Landside non-regulated will anyway be our decision what we do with it. If you look at a dock or a terminal building, if you would not get the concession, of course, the government could expropriate us formally for this, but then they would have to compensate the economic value of this also. Perfect. The main point here is that compared to other concessions, especially also in our portfolio, but to, let's say, the normal concession of infrastructure, there will be either an exit value or terminal value in the valuation of our company. That's very clear. Thank you very much. Next one in line. The next question comes from the line of Andrew Lobbenberg from HSBC. Please go ahead. Oh, hi there. Two questions, if I may. I'm quite keen to understand how you expect commuter traffic to develop and hence the footfall on the landside business, because we have less visibility of that as it's not tied to aviation. My second question would be around the consequences of the Switzerland and EU relations and the referendum that rejected free movement of people. What are the consequences of that? I suspect I might have asked this at full year, but still, things have developed and what are the politics behind that and the threats or opportunities? Andrew, could you please repeat your first question? Yeah. What do you expect for footfall on the landside business? How quickly do you think commuter traffic might rebuild, or is it realistic to say that you regain pre-pandemic levels in 2025? Do you think that's too optimistic for the commuter traffic, for example? Thank you, Andrew. Footfall, on the land side, we have three major segments. One is passengers, one is employees, and one is commuters. In terms of employees, especially on the office segment, of course, we have this, on the one hand, home office rule now and probably adjusted home office rules for the future. I believe Zurich Airport as a location will be perfectly. Tenants will have less office space, but more people per square meter. I think overall, we will not have less footfall from employees. On the same front, on the commuters and of course, passengers and employees working at the airport, they will come up again in line with the recovery of aviation, which we all believe will maybe need four to five years' time. I would say in five years' time, with all The Circle footfalls, footfall will be higher than pre-Corona. On the second question, I think if I understood it right, you asked about the relations between Switzerland and the EU and whether this has any impact of freedom of travel. There is, in my understanding, no risk that Switzerland will fall out of Schengen or there will be again, borders. I believe Switzerland does not have the fear that we will fall out of Schengen, whatever happens with these constitutional discussions between Switzerland and the EU. Okay, thanks. Like Britain. Next in line. The last question comes from the line of Johannes Braun from Stifel Europe. Please go ahead. Yeah, thank you. Thank you for taking my question. I only have two left in terms of, I guess, modeling. Firstly, you mentioned the MAG discounts amounted to CHF 20 million in H1. Can you just tell us how much that was relative to total MAG, so in percentage terms? Secondly, on the cost reductions, just to clarify on the slide 22, on the outlook slide, you are guiding OpEx to be down year-over-year, but I think, Lukas, in your previous comment, you said that you expect half of 2020 savings to be maintained. That would actually mean costs would go up on a year-over-year basis. Just trying to square the circle here. Yeah, the short answer on the first question, the agreements we made with our commercial partners represents roughly 1/3 of the guarantees. The second question, we found ourselves also in a situation where we once last year with the full year result, guided like a 50% ambition of cost savings. We also figured out that once we have now even higher cost savings achieved by half year, this is more confusing than helpful to you. I think cost in the second half tend to be higher than in the first half because on the back of higher volumes. I think that's correct. What we now set as a target is that I've explained at the very first question, is that we go into an absolute number as our cost saving ambition in the area of CHF 20 million-CHF 30 million, based on which is still 50% and therefore in line with our target from the beginning of the year, what we said that 50% of the directly influenced cost is like the cost saving ambition for the sustainable cost savings. CHF 20 million-CHF 30 million lower than 2019, correct? Yes. Okay. Thank you. Next one. There are no more questions from the phone. Do we have questions in the webcast? No more. So then, I conclude with a half year result with a half year 2021 that was probably the lowest during the pandemic. We see clear signs of recovery, irrespective of some short-term setbacks in the pandemic in autumn, and we look forward quite confidently on the recovery of the business we are in. Thank you for attending the call and looking back for further exchange during the year. The call is closed hereby. 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