Annual Report 2013
Frankfurt Airport
behind the Scenes
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Fraport Group
At a Glance
The Fraport Group operates internationally at 13 airports and belongs to the world’s leading airport operators. The Group’s main
site is Frankfurt Airport, one of the world’s major air traffic hubs. Divided into four segments, Fraport had a workforce of more than
20,000 employees and generated revenue of € 2.56 billion in 2013. Group EBITDA stood at € 880.2 million, and the Group result was
€ 235.7 million. Listed since 2001, the parent company of the Fraport Group, Fraport AG, is headquartered in Frankfurt am Main.
Financial performance indicators
€ million
Revenue
EBITDA
EBIT
EBT
Group result
Profit attributable to shareholders of Fraport AG
Earnings per share (basic) (€)
Year-end closing price of the Fraport share (€)
Dividend per share 1) (€)
Operating cash flow
Free cash flow
Total assets
Shareholders’ equity
Group liquidity
Net financial debt
Return on revenue (%)
Return on shareholders’ equity (%)
EBITDA margin (%)
EBIT margin (%)
ROCE (%)
ROFRA (%)
Gearing ratio (%)
Non-financial performance indicators
Global satisfaction (Frankfurt) (%)
Punctuality rate (Frankfurt) (%)
Baggage connectivity (Frankfurt) (%)
Equipment availability (Frankfurt) (%)
Employee satisfaction 2)
Total number of work accidents
Employees
Average number of employees
1) Proposed dividend (2013).
2) No employee satisfaction survey took place for the 2012 fiscal year.
2013
2012
Change in %
2,561.4
2,442.0
880.2
528.1
340.7
235.7
221.0
2.40
54.39
1.25
574.8
73.1
9,523.4
3,098.8
1,486.3
2,975.4
13.3
7.5
34.4
20.6
8.9
9.5
101.3
2013
80
82.3
98.4
94.8
3.02
1,346
2013
20,947
848.7
496.0
364.1
251.5
238.2
2.59
43.94
1.25
553.0
–162.4
9,640.6
2,948.2
1,663.1
2,934.5
14.9
8.5
34.8
20.3
8.7
9.6
104.9
2012
80
80.3
98.2
95.0
–
1,445
4.9
3.7
6.5
– 6.4
– 6.3
– 7.2
– 7.3
23.8
0.0
3.9
–
–1.2
5.1
–10.6
1.4
–
–
–
–
–
–
–
Table 1
Change in %
–
–
–
–
–
– 6.9
Table 2
2012
Change in %
20,963
– 0.1
Table 3
Fraport Segments
Aviation
The Aviation segment includes airside and terminal management
as well as corporate safety and security at the Frankfurt site. The
growth in traffic and the increase in airport charges boosted
revenue by 2.6 % to € 845.2 million in the previous fiscal year.
With a workforce of 6,194 employees the segment achieved
EBITDA of € 205.4 million.
Aviation
€ million
Revenue
EBITDA
EBITDA margin
EBIT
ROFRA
Average number of employees
2013
2012
Change
in %
845.2
205.4
24.3 %
88.1
4.0 %
6,194
823.4
201.9
24.5 %
79.6
3.9 %
6,298
Retail & Real Estate
The Retail & Real Estate segment consists of retailing activities,
parking facility and real estate management at Frankfurt Airport.
In the fiscal year 2013 Pier A-Plus in particular, which was inau-
gurated in October 2012, boosted revenue and EBITDA. With
a workforce of 648 employees, the segment generated revenue
of € 469.0 million and EBITDA of € 350.7 million.
Retail & Real Estate
€ million
2013
2012
Revenue
EBITDA
EBITDA margin
EBIT
ROFRA
Average number of employees
469.0
350.7
74.8 %
267.9
15.0 %
648
452.9
335.2
74.0 %
252.8
15.5 %
629
Ground Handling
The core business of the Ground Handling segment comprises
all services dealing with passengers, aircraft and cargo. With a
workforce of 9,017 employees, the most staff-intensive seg-
ment at the Frankfurt site achieved revenue growth of 1.1 % to
€ 656.2 million in the previous fiscal year, thanks to the growth
in traffic and the increase in infrastructure charges. EBITDA for
the segment was € 38.2 million.
Ground Handling
€ million
2013
2012
Revenue
EBITDA
EBITDA margin
EBIT
ROFRA
Average number of employees
656.2
38.2
5.8 %
– 2.3
– 0.4 %
9,017
649.3
37.8
5.8 %
–1.1
– 0.2 %
8,924
External Activities & Services
The External Activities & Services segment comprises the Group
companies outside the Frankfurt site and auxiliary services in
Frankfurt, including IT and facility management in particular.
The growth in foreign companies was the main factor behind an
increase in revenue of 14.4 %. With revenue of € 591.0 million,
the segment posted EBITDA of € 285.9 million in fiscal year 2013.
External Activities & Services
€ million
2013
2012
Revenue
EBITDA
EBITDA margin
EBIT
ROFRA
Average number of employees
591.0
285.9
48.4 %
174.4
14.0 %
5,088
516.4
273.8
53.0 %
164.7
15.7 %
5,112
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2.6
1.7
–
10.7
–
–1.7
Table 4
Change
in %
3.6
4.6
–
6.0
–
3.0
Table 5
Change
in %
1.1
1.1
–
–
–
1.0
Table 6
Change
in %
14.4
4.4
–
5.9
–
– 0.5
Table 7
About this Report
The present Annual Report enables Fraport to render account for the fiscal year 2013. The data and comments concerning the asset,
financial and earnings position have been prepared in compliance with the accounting and disclosure standards to be applied to
the fiscal year 2013. The disclosures contained in the Business Outlook also take the accounting standards to be applied as from
January 1, 2014 into consideration and can be found from page 84 onwards of the Report.
To increase the currency of the Report, Fraport has taken into consideration relevant disclosures concerning events that occurred
up to the Responsibility Statement and Auditor’s Report by PricewaterhouseCoopers AG on March 4, 2014.
The Annual Report is published in German and English.
1
To our Shareholders
3
Consolidated Financial Statements
Consolidated Income Statement
Consolidated Statement of Comprehensive Income
Consolidated Statement of Financial Position
Consolidated Statement of Cash Flows
Consolidated Statement of Changes in Equity
Consolidated Statement of Changes in
non-current Assets
Segment Reporting
Group Notes
Notes to the Consolidation and Accounting Policies
Notes to the Consolidated Income Statement
Notes to the Consolidated Financial Position
Notes to the Segment Reporting
Notes to the Consolidated Statement of Cash Flows
Other Disclosures
4
Further Information
Responsibility Statement
Auditor’s Report
Seven-Year Overview
List of Graphics and Tables
Glossary
Financial Calendar 2014
Traffic Calendar 2014
Imprint
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C5
C5
C5
Letter of the CEO
The Fraport Executive Board
Report of the Supervisory Board
Statement on Corporate Governance and
Corporate Governance Report
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Group Management Report
Overview of Business Development
Situation of the Group
Operating Activities
Structure
Strategy
Control
Legal Disclosures
Remuneration Report
Economic Report
General Statement of the Executive Board
Economic and industry-specific Conditions
Significant Events
Business Development
Results of Operations
Segments
Asset and Financial Position
Value Management
Non-financial Performance Indicators
Employees
Research and Development
Share and Investor Relations
Significant Events after the Balance Sheet Date
Outlook Report
General Statement of the Executive Board
Risk and Opportunities Report
Business Outlook
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Aviation
Page 2
Retail & Real Estate
Page 22
Frankfurt Airport behind the Scenes
With 58 million passengers and more than two million metric tons of air freight and air mail handled, Frankfurt Airport is
one of the largest passenger and cargo airports in the world. While passengers only experience the airport processes that
are visible to them, such as check-in or security control, Fraport and its business partners provide a much broader range of
services “behind the scenes” to ensure a seamless traveling experience. Some of these processes are presented to you on
the section dividers of this Annual Report.
You can also get an idea of further Fraport processes on site during a tour of the airport and experience the fascinating world
of the airport live.
Ground Handling
Page 90
External Activities & Services
Page 192
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Group Management Report
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Fraport Annual Report 2013
To our Shareholders
Fraport Annual Report 2013
To our Shareholders
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3
Aviation
A good 17,000 airfield lights...
In the previous fiscal year about 473,000 aircraft took off and landed at Frankfurt. This equated to about 1,300
daily aircraft movements. Seamless airport operations would be impossible without the use of about 17,000 airfield
lights that mark the ways between the take-off and landing runway system and the terminal. To ensure that the
system is always ready for use, Fraport maintains the airfield lights on an as-required and cyclical basis. In addition
to a computer-controlled system, which reports defective halogen or LED lamps, Fraport employees check that
the airfield lights are functioning by covering the take-off and landing runway system on a regular basis.
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Group Management Report
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Fraport Annual Report 2013
To our Shareholders
...with uninterrupted energy supply
Fraport monitors the uninterrupted energy supply of Frankfurt Airport on a centralized basis and ensures this
by means of a redundantly configured power supply system. Even if the power supply system fails, Fraport can
guarantee an energy supply to the take-off and landing runway system by using several oversized diesel motors.
Direct refueling of the motors, whose tanks hold about 40,000 liters of diesel, ensures that airport operations can
be constantly maintained in an emergency. Fraport requires about 600 million kilowatt hours annually to operate
the Frankfurt site.
Fraport Annual Report 2013
To our Shareholders
3
3
Group Management ReportTo our Shareholders 4
To our Shareholders / Letter of the CEO
Dr Stefan Schulte
Chairman of the Executive Board Fraport AG
Fraport Annual Report 2013 To our Shareholders / Letter of the CEO
5
Letter of the CEO
Your company has performed well in the past fiscal year. After a difficult start to the year with
declining passenger numbers at our main site in Frankfurt, a good summer season and solid
booking numbers in the final months of the fiscal year helped us to achieve an increase in
passengers of almost one percent to more than 58 million. The cargo tonnage handled in
Frankfurt also developed favorably, increasing to almost 2.1 million metric tons. Frankfurt
Airport was thus the largest cargo airport in Europe last year, ahead of the previous front
runner Paris-Charles de Gaulle.
Outside of Frankfurt Airport, our Group airports were also doing well. I would like to high-
light in particular our investment at Lima Airport, which continued to benefit from the
country’s economic prosperity and the upturn in tourism. Almost 15 million passengers have
meant that the site’s growth in percentage terms was again in double digits. Our airport
investment at Antalya also saw significant passenger growth, welcoming around seven percent
more passengers notwithstanding the strong result in the previous year. Over the past fiscal
year we also laid the foundations for future growth in our investments in St. Petersburg, Varna
and Burgas. The opening of new terminals at those three sites means that the investments
now have sufficient capacity to accommodate the expected traffic growth.
The Group-wide positive traffic development was also reflected in the financial performance
indicators of the fiscal year 2013. The important operating key figures of Group EBITDA,
which amounted to around 880 million Euros, and Group EBIT, which amounted to a good
528 million Euros, both exceeded the previous year’s figures by more than 30 million Euros.
Due to the worsening of the Group financial result which had already been forecasted at the
start of the fiscal year, the Group result in 2013 was almost 16 million Euros lower than the
previous year figure at around 236 million Euros. The causes of this included among others
high non-recurring income in the previous year within the financial asset management.
Group Management ReportTo our ShareholdersFraport Annual Report 2013 6
To our Shareholders / Letter of the CEO
Despite the decreasing Group result, we will be proposing an unchanged dividend of 1.25 Euro
per share to you at our Annual General Meeting at the end of May this year. This would be
equivalent to a pay-out ratio of around 52 percent of the underlying Group result.
Aviation market in Europe remains under pressure
Dear Shareholders, the aviation market in Europe continues to be characterized by high intensity
of competition. This is caused by various factors such as the persistently weak macroeconomic
environment in Europe, price-sensitive demand, the continuing success of so-called low-cost
providers and the undiminished high level of growth of new competitors from the Middle
East. In this environment, the German aviation tax and the emissions trading scheme which
currently only applies to flights within the European Union additionally comprise considerable
competitive disadvantages for the domestic aviation industry. Your company nevertheless
performed well at Frankfurt Airport in 2013, despite these difficult circumstances, and also
expects further passenger and cargo growth for 2014.
As our economic system becomes increasingly collaborative on both a national and international
level, it requires excellent mobility options for road, rail and air. With around 300 destinations,
Frankfurt Airport is Germany’s “gate to the world”. At the same time we are seeing greater
sensitization amongst the population to sources of noise, irrespective of the carrier in question.
That is why in 2013, we, together with our partners in the “Alliance for Noise Abatement”,
also gave high priority to working on further reducing the impact of aircraft noise within
the framework of the legally, technically and operationally feasible. For example, we have
decided to invest in a new satellite-supported ground-based augmentation system (GBAS)
at Frankfurt Airport. If aircraft have corresponding technical equipment and authorization
is granted by the supervisory authorities, GBAS will mean that aircraft can also land on the
south and center runways at a raised approach angle of 3.2 degrees.In addition, we are
giving the airlines further commercial incentives to fly the passenger growth at Frankfurt
Airport with low-noise aircraft with our “FRAConnect” program.
Outlook for 2014
Despite the recent positive traffic development, 2014 will again be a challenging year for
your company. In view of the competitive environment, we will continue to invest in a more
customer-friendly layout of our airport at the Frankfurt site. At the same time, we need to
further speed up our processes and make them more efficient without lowering our sights
regarding high quality.
Fraport Annual Report 2013 To our Shareholders / Letter of the CEO
7
Expressed in figures, we are expecting passenger growth of two to three percent at the
Frankfurt site for the current fiscal year and continuing positive development at Group airports.
With respect to financial performance, we expect a Group EBITDA of between approxi-
mately 780 and some 800 million Euros and Group EBIT to develop towards up to around
500 million Euros for the 2014 fiscal year. Compared to the aforementioned figures for fiscal
year 2013, at first glance this looks like a decrease. However, this is solely due to a changed
accounting standard which has to be applied from fiscal year 2014 onwards. This standard
means that as of January 1, 2014, there will no longer be the option to consolidate joint
ventures proportionately in Group accounting, which in our case particularly affects our
investment in Antalya Airport. The result from Antalya will from then on only be reported
in the Group’s financial result, which will lead to a distortion of the figures reported in
the current fiscal year.
If we had already applied this accounting standard to the figures for the 2013 fiscal year, the
corresponding comparative figure for EBITDA would have been around 733 million Euros
and the comparative figure for EBIT would have been 439 million Euros. The forecast for both
figures for 2014 is accordingly around 40 to 60 million Euros higher than the adjusted figures
for fiscal year 2013. We also expect a positive change in the Group result compared to 2013.
This growth will also be in 2014 only possible through the dedication and great commitment
of our employees, and I would like to take this opportunity to thank them on behalf of the
whole Executive Board.
We would also like to thank you, our esteemed shareholders, for the trust you have placed
in us and for the open dialog. Let’s shape Fraport’s future and face the challenges which lie
ahead of us together.
Sincerely yours,
Stefan Schulte
Group Management ReportTo our ShareholdersFraport Annual Report 2013 8
To our Shareholders / The Fraport Executive Board
The Fraport Executive Board
The strategic and operational responsibility for Fraport AG and its worldwide Group
companies lies with the Executive Board. In the previous fiscal year the Fraport Executive Board
comprised five members: Dr Stefan Schulte (Chair), Anke Giesen, Michael Müller, Peter Schmitz
and Dr Matthias Zieschang.
The appointment of Executive Board members is the responsibility of the company’s Supervisory
Board. The Annual General Meeting formally approves the Executive Board’s actions.
Fraport Annual Report 2013 To our Shareholders / The Fraport Executive Board
9
The Fraport Executive Board
(from left to right)
Michael Müller
Executive Director Labor Relations
Born in 1957
Appointed until September 30, 2017
Dr Matthias Zieschang
Executive Director Controlling and Finance
Born in 1961
Appointed until March 31, 2017
Dr Stefan Schulte
Chairman of the Executive Board
Born in 1960
Appointed until August 31, 2019
Anke Giesen
Executive Director Ground Handling
Born in 1963
Appointed until December 31, 2017
Peter Schmitz
Executive Director Operations
Born in 1950
Appointed until August 31, 2014
Group Management ReportTo our ShareholdersFraport Annual Report 2013 1 0
To our Shareholders / Report of the Supervisory Board
Karlheinz Weimar
Chairman of the Supervisory Board Fraport AG
Fraport Annual Report 2013 To our Shareholders / Report of the Supervisory Board
11
Report of the Supervisory Board
The Supervisory Board performed all the tasks incumbent on it under law, the company statutes and rules of internal
procedure and continuously monitored the management of the company in fiscal year 2013. The Supervisory Board
obtained regular, timely and comprehensive information from the Executive Board, in writing and orally, on the proposed
business policies, fundamental questions concerning future management and corporate planning, the situation and de-
velopment of the company and the Group as well as significant business transactions, and consulted with the Executive
Board on these matters. Deviations in the development of business from the planning were explained in detail to the
Supervisory Board. Based on the reports of the Executive Board, the Supervisory Board has extensively discussed the
business transactions of significance to the company. The Supervisory Board harmonized the strategic alignment of the
company with the Executive Board. In addition, the Chairman of the Executive Board maintained regular contact with the
Chairman of the Supervisory Board and informed him about the current developments concerning the business situation
as well as significant business transactions. The Supervisory Board was directly involved in all the decisions that were of
fundamental importance to the company. Where required by law, the company statutes or rules of internal procedure,
the Supervisory Board voted on the relevant proposals made by the Executive Board after having thoroughly examined
and consulted on those matters.
During the reporting period, the Supervisory Board convened five ordinary meetings, one strategy session and one
special meeting. On average for all of the meetings, around 98 % of the members took part in the meetings. No member
of the Supervisory Board took part in fewer than half of the meetings of the Board.
Focal points of the consultation of the Supervisory Board
The business development of the Fraport Group and its Group companies, with a particular emphasis on the traffic and
earnings development at Frankfurt Airport, were the subject of regular discussions by the Supervisory Board. The improved
development of the European economy and the recovery in passenger numbers played a prominent role over the course
of the year.
Besides this regular reporting, the following matters were extensively discussed in particular:
> In 2013, the Supervisory Board also obtained extensive information on various measures and initiatives to improve
active and passive noise abatement. As part of the “alliance for noise abatement” concluded already in February 2012,
19 measures for active noise abatement were defined and will be implemented successively, with regular reports on
their effectiveness being submitted to the Supervisory Board. Additional spreading of noise-based airport charges
was implemented at the beginning of 2013 in order to give airlines greater incentive to use quieter air planes. Also
the current implementation status of the voluntary real estate program, CASA, the application deadline for which has
been extended to October 31, 2014, formed part of the regular reporting to the Supervisory Board. In addition under
particular focus was the program to secure roofing from gusts of wind caused by wake turbulences, under which the
owners of approximately 3,000 buildings beneath the arriving and departing flight paths can make a claim for the
securing of roof tiles.
> In addition, more detailed information was provided about the plans for Terminal 3 on the south side of Frankfurt Airport.
Alternatives to the construction of the terminal were discussed, the demand forecast was critically reviewed and the
processes in the existing terminals were reviewed. Here, the Supervisory Board was particularly pleased to note the
improvement of passenger satisfaction as a result of the “Great to have you here!” service initiative. Additionally, waiting
times at security controls at year-end were critically attended.
Group Management ReportTo our ShareholdersFraport Annual Report 2013 1 2
To our Shareholders / Report of the Supervisory Board
> As a continuation of the internationalization strategy of the Group, the Supervisory Board agreed to the participation in
the tender process for the new international Istanbul Airport at its special meeting held on April 29, 2013. Furthermore,
it authorized the investment and capital expenditure committee with the final decision regarding the tender process
in Rio de Janeiro after thorough prior consultation. The committee agreed to submit an offer for the concession at its
special meeting on November 8, 2013.
> With respect to the investment in Manila, the Supervisory Board continued to support the efforts in and out of court in
reaching an appropriate compensation agreement with the Philippine government for the capital expenditure made
in connection with the construction of Terminal 3 at Manila Airport. The progress of the ICSID arbitration proceedings
in Washington, for which hearings took place in the fall of 2013, remained the subject of particular focus.
> In addition, the Supervisory Board dealt with the financial statements and management reports of the company and the
Group as at December 31, 2012, the agenda and the including resolution proposals for the Annual General Meeting
(AGM) on May 31, 2013, as well as the 2012 Annual Report. Furthermore, the Supervisory Board has decided to pro-
pose to the AGM that PricewaterhouseCoopers Aktiengesellschaft Wirtschaftsprüfungsgesellschaft, Frankfurt am Main,
be appointed as the auditor for fiscal year 2013 in accordance with the scheduled cyclical change of auditors.
Furthermore, the Supervisory Board made specific decisions on the following subjects, among others:
> As a continuation of its previous resolution, the Supervisory Board agreed to implement the expansion of the south of
Frankfurt Airport in accordance with the zoning decision and the current version of the preliminary plan.
> It authorized the executive committee’s expansion from six to eight members and, on its recommendation with regard
to Section 4.2.3 (2) of the German Corporate Governance Code (GCGC), agreed to the introduction of upper amount
limits for the variable remuneration elements of the Executive Board’s remuneration, on which no agreement had thus
far been made. The Executive Board’s remuneration now specifies upper amount limits as a whole and with respect
to all variable remuneration.
> It also approved the 2014 Business Plan.
As part of its strategy session in mid-June 2013, the Supervisory Board also addressed in more detail the challenges arising
for Frankfurt Airport as a result of the deteriorating market environment in particular. Measures for structural counteraction
in view of the negative traffic development in the first six months of 2013 were also discussed. Further topics of discus-
sion were freight as a major factor for success for the site and the critical compliance with the planned revised version
of EU ground handling services guidelines.
Work of the committees
The Supervisory Board continued its successful work with the committees it had formed to increase the efficiency of its
work and to prepare for the Supervisory Board meetings. In individual appropriate cases and in accordance with law,
decision-making powers of the Supervisory Board were granted to the committees. The chairpersons of the committees
provided regular reports at the next Supervisory Board meeting to the plenum of the Supervisory Board on the work of the
committees. The composition and responsibilities of the individual committees can be found in the chapter “Statement
on Corporate Governance and Corporate Governance Report” as well as on the Group’s website www.fraport.com
under the section The Fraport Group.
The finance and audit committee met seven times during the reporting period and discussed significant business
transactions, the annual and consolidated financial statements, the management reports and the recommendation for
the appropriation of profit to the AGM, respectively, the amount of the dividend. Representatives of the auditor often
participated in the meetings on individual agenda items. The finance and audit committee prepared the determination
of the focal points of the 2013 audit for the Supervisory Board. The half-year interim report and the other interim reports
were discussed in detail prior to their publication. Comments were also made on the 2014 Business Plan of Fraport AG
(prepared in accordance with the German Commercial Code, HGB) and the 2014 Group Plan (prepared in accordance
with IFRS). Furthermore, the finance and audit committee dealt with the issuance of awarding the audit mandate to the
auditor and made a proposal to the plenum for the election of the auditor for fiscal year 2013. In this context, the audi-
tor’s confirmation of independence pursuant to Section 7.2.1 of the GCGC was obtained, the qualification of the auditor
monitored and the remuneration of same discussed. Furthermore, the issue of mandates for non-audit-related services
Fraport Annual Report 2013 To our Shareholders / Report of the Supervisory Board
13
to the auditor was discussed. In accordance with the cyclical scheduled change of the auditor, it was proposed to the
plenum to recommend PricewaterhouseCoopers Aktiengesellschaft Wirtschaftsprüfungsgesellschaft, Frankfurt am Main,
to the AGM as auditor for fiscal year 2013.
Further focal points of the proceedings were asset and liability management as well as the regular supplementary report
in accordance with Section 90 of the German Stock Corporation Act (AktG) to the consolidated financial statements and/
or the consolidated interim financial reports. In addition, the committee discussed the risk management, the internal
control system, the internal audit system as well as the compliance management system in detail and ensured that the
Supervisory Board was appropriately informed.
In its four ordinary meetings as well as two special meetings, the focal points of the discussions of the investment and
capital expenditure committee in fiscal year 2013 were again the further business development of the investment
business and the area of capital expenditure. With regard to activities abroad, the committee expressed its support for
participation in the tender process for the new international Istanbul Airport and therefore prepared the corresponding
resolution of the entire Supervisory Board in its first special meeting on April 26, 2013. In addition, as already mentioned,
it agreed to submit an offer for the concession regarding Rio de Janeiro Airport based on the corresponding authorization
by the Supervisory Board as part of its second special meeting on November 8, 2013. The existing Group companies,
with Antalya, Lima, St. Petersburg as well as Varna and Burgas in particular focus, were also part of regular reporting.
The development of national Group companies operating mainly at the Frankfurt site were also considered, however.
Furthermore, the committee assisted with the capital expenditure at the Frankfurt am Main site and commented on the
investment plan in the context of the 2014 Business Plan.
The human resources committee met four times in fiscal year 2013 and was regularly involved with the topics related
to human resources within the Group. Alongside the development of the workforce, the topics of vocational training,
current wage issues in the Group and, on federal level, the restructuring of apron supervision, health management,
remuneration for senior managers in the Group and the social and employment regulations in the EU draft of ground
handling services guidelines also formed part of the discussion. Through the “HR Top Executives” department, managed
by Ms. Giesen since the start of the year 2013, further topics such as the remuneration system for senior executives,
development of top executives, the concept of the reintegration of expatriate employees returning abroad as well as the
establishment of lean management were also focal points of the proceedings.
The executive committee met five times during the reporting period. It dealt with Executive Board matters arising in
fiscal year 2013 and, first of all, the determination of the performance-related remuneration components for the past
fiscal year. In addition, the executive committee prepared the resolutions of the Supervisory Board on the reappointment
of the Chairman of the Executive Board, Dr Schulte, as well as the adjustment of the Executive Board’s remuneration, in
particular with regard to the most recent recommendation of the GCGC Government Commission.
The nomination committee formed for preparing for the new election of shareholder representatives met twice in the
2013 fiscal year: once to prepare the candidate list for the AGM on May 31, 2013, in which all shareholder representatives
cyclically stood for election, and once to provide advice regarding the succession of Mr. Stefan H. Lauer after his leaving
at the end of 2013.
It was not necessary to convene the mediation committee in accordance with the German Co-Determination Act in
fiscal year 2013.
Corporate Governance and statements of compliance
The Executive Board and the Supervisory Board have addressed in detail the further developments of the GCGC that
were presented by the Government Commission on May 13, 2013.
In accordance with the recommendation recently included in the code, that the remuneration for Executive Board members
should be indicated inclusive of upper amount limits for the variable remuneration elements (Section 4.2.3 (2), sentence 6
of the GCGC), the incumbent Executive Board members agreed on December 17, 2013 to supplementary upper amount
limits complying fully to the recommendation, in addition to those upper amount limits already in existence.
Group Management ReportTo our ShareholdersFraport Annual Report 2013 1 4
To our Shareholders / Report of the Supervisory Board
Fraport AG is therefore in alignment with the recommendations of the GCGC Government Commission and will continue
to be in future.
In continuation of examining the efficiency of its activities from the previous year, the Supervisory Board commissioned
an external advisor with the evaluation of its statutes and rules of internal procedure in fiscal year 2013, particularly with
regard to the adequacy of the defined numerical limits that trigger approval or reporting obligations. Ultimately, it commis-
sioned the Corporate Governance work group (formed of its own members) to develop specific proposals to the plenum.
Further details on Corporate Governance as well as the text of the current statement of compliance pursuant to Section 161
of the AktG made by the Executive Board and Supervisory Board on December 17, 2013 can be found in the chapter
“Statement on Corporate Governance and Corporate Governance Report” starting on page 16. The Fraport code and
the current and past statements of compliance can also be found on the Group’s website www.fraport.com under the
section The Fraport Group.
Conflicts of interest and their treatment
In fiscal year 2013, there was no indication of the existence of potential conflicts of interest.
Annual and consolidated financial statements
PricewaterhouseCoopers Aktiengesellschaft Wirtschaftsprüfungsgesellschaft audited the annual financial statements of
Fraport AG and the consolidated financial statements as at December 31, 2013 as well as the management report and
Group management report and issued unqualified auditor’s reports. The Supervisory Board issued the audit mandate
on January 20, 2014 in accordance with the resolution passed by the AGM on May 31, 2013.
The annual financial statements and the management report were prepared and audited by the auditor in accordance
with the regulations of the HGB applicable to large capital companies, the consolidated financial statements and the
Group management report were prepared and audited by the auditor in accordance with IFRS as they apply in the EU.
The consolidated financial statements and the Group management report meet the conditions for exemption from the
preparation of consolidated financial statements in accordance with German law. The auditor established that an early
risk warning system that meets the legal requirements and which makes it possible to identify at an early stage develop-
ments that may put the continued existence of the Company at risk was in place.
The documents mentioned as well as the proposal by the Executive Board for the utilization of profits have been sent to
the Supervisory Board by the Executive Board without delay. The finance and audit committee of the Supervisory Board
examined these documents extensively and the Supervisory Board reviewed them also personally. The audit reports of
PricewaterhouseCoopers Aktiengesellschaft Wirtschaftsprüfungsgesellschaft and the financial statements were available
to all the members of the Supervisory Board, and were comprehensively dealt with in the accounting meeting of the
Supervisory Board in the presence of the auditors who reported on significant results of their audit, and were available
to respond to additional questions and provide further information. The chairwoman of the finance and audit committee
provided in the meeting a comprehensive report on the treatment of the annual financial statements and the consoli-
dated financial statements in the committee. The Supervisory Board approved the results of the annual audit. After the
completion of the audit by the finance and audit committee and its own review, the Supervisory Board did not raise
any objections. The Supervisory Board approved the annual financial statements prepared by the Executive Board; the
annual financial statements were thus adopted.
The Supervisory Board approved the proposal by the Executive Board to use the profit earmarked for distribution to pay
a dividend of € 1.25 per no-par value share.
The report prepared by the Executive Board on the relationships of Fraport AG with affiliated companies pursuant to
Section 312 of the AktG was submitted to the Supervisory Board. The report concludes with the following statement by
the Executive Board, which is also included in the management report:
Fraport Annual Report 2013 To our Shareholders / Report of the Supervisory Board
15
“The Executive Board declares that under the circumstances known to us at the time the legal transactions were con-
ducted, Fraport AG received fair and adequate compensation for each and every legal transaction. During the reporting
year, measures were neither taken nor omitted at the request of or in the interests of the State of Hesse and the City
of Frankfurt am Main and their affiliated companies.”
The auditor reviewed the report on the relationships with affiliated companies and issued the following opinion:
“Based on our audit and the conclusions reached, we confirm that
1. the disclosures made in the report are correct,
2. the consideration paid by the company for the legal transactions referred to in the report was not unreasonably high.”
The auditor participated in the discussions with the Supervisory Board on March 21, 2014 on the report regarding the
relationships with affiliated companies and was available to the Supervisory Board to provide additional information. After
conducting its own review, the Supervisory Board agreed with the assessment by the auditor and raised no objections
to the statement by the Executive Board regarding the relationships with affiliated companies provided at the end of the
report and included in the management report.
Personnel particulars
The term of office of all members of the Supervisory Board ended at the end of the AGM on May 31, 2013.
In advance of the AGM, the following representatives of the employees were elected for the first time or reelected to the
Supervisory Board in accordance with the specifications of the Co-Determination Act: Ms. Claudia Amier, Mr. Devrim Arslan,
Mr. Hakan Cicek, Dr Roland Krieg, Mr. Mehmet Özdemir, Mr. Arno Prangenberg, Mr. Gerold Schaub, Mr. Hans-Jürgen
Schmidt, Mr. Werner Schmidt and Mr. Edgar Stejskal.
During the AGM, the following representatives of the shareholders were also elected for the first time or reelected to the
Supervisory Board: City Treasurer Mr. Uwe Becker, Ms. Kathrin Dahnke, Lord Mayor Mr. Peter Feldmann, Dr Margarete Haase,
Mr. Jörg-Uwe Hahn, Mr. Lothar Klemm, Mr. Stefan H. Lauer, State Secretary Mr. Michael Odenwald, Mr. Karlheinz Weimar
and Prof Dr-Ing Katja Windt.
In its constituent meeting on May 31, 2013, the Supervisory Board reelected Mr. Karlheinz Weimar as Chairman and
Mr. Gerold Schaub as Vice Chairman.
In addition, the competent trade registry court of the City of Frankfurt am Main appointed Mr. Karl Ulrich Garnadt to
the Supervisory Board on February 10, 2014. Mr. Garnadt assumes the mandate of Mr. Stefan H. Lauer, who left the
Supervisory Board on December 31, 2013.
With regard to the Executive Board, on September 2, 2013, the Supervisory Board also agreed to the appointment of
Dr Schulte as Chairman of the Executive Board with effect of September 1, 2014 for a further five years until August 31, 2019.
The Supervisory Board also acknowledged Mr. Peter Schmitz’s intention not to extend his appointment as member of
the Executive Board, which ends on August 31, 2014.
Looking back on the 2013 fiscal year, which was successful despite a difficult environment in the European aviation
industry, the Supervisory Board thanks the Executive Board and the company’s employees for their dedicated commitment
in the interests of the company.
Frankfurt am Main, March 21, 2014
Karlheinz Weimar
(Chairman of the Supervisory Board)
Group Management ReportTo our ShareholdersFraport Annual Report 2013 1 6
To our Shareholders / Statement on Corporate Governance and Corporate Governance Report
Statement on Corporate Governance and Corporate Governance Report
In the following statement on corporate governance, pursuant to Section 289a of the German Commercial Code (HGB) and
corporate governance report pursuant to Section 3.10 of the German Corporate Governance Code (GCGC), the Executive
Board – simultaneously for the Supervisory Board and in summary (see also Section 3.10 of the GCGC) – reports on the
company’s management and the corporate governance of Fraport.
The term “corporate governance” at Fraport means responsible corporate management and control, the objective of which is
sustainable value creation. Good corporate governance has highest priority at Fraport. In this context, efficient collaboration
between the Executive Board and the Supervisory Board is as important as protecting shareholders’ interests and maintaining
open and transparent corporate communications. Fraport follows the national and international developments in this area
and regularly modifies its own corporate code to the new standards of the GCGC.
In accordance with Section 317 (2) sentence 3 of the HGB, the following disclosures under Section 289a of the HGB were
not included in the annual audit by the auditor.
Statement of compliance pursuant to Section 161 of the German Stock Corporation Act (AktG)
On December 17, 2013, the Executive Board and the Supervisory Board of Fraport AG issued the following statement of
compliance for the year 2013 in accordance with Section 161 of the AktG:
“The last Compliance Statement was issued on December 14, 2012. Since then, Fraport AG has complied with and will con-
tinue to comply with the recommendations made by the Government Commission on the German Corporate Governance
Code in the code version dated May 15, 2012, and the amended version of May 13, 2013, with the following exception
related to previous contractual agreements:
The May 13, 2013, amended version of the German Corporate Governance Code (GCGC) included a new recommendation
that the amount of compensation paid to members of the Executive Board should be capped, both overall and for individual
compensation components (Section 4.2.3 paragraph 2 sentence 6 of the GCGC).
The service contracts for the incumbent Executive Board members already provided for compensation caps, which however
did not fully meet the requirements of the new GCGC recommendation. On December 17, 2013, amendment agreements
including compensation caps complying fully with the GCGC (Section 4.2.3 paragraph 2 sentence 6) were concluded with
the incumbent members of Fraport AG’s Executive Board.”
The statement of compliance was promptly made permanently available to the shareholders on the company’s website at
www.fraport.com in the section The Fraport Group.
The new recommendation with respect to the content and future format of the remuneration report (Section 4.2.5 (3) of
the GCGC) relates to fiscal years beginning after December 31, 2013. Accordingly, Fraport will comply with the new recom-
mendation for the first time in fiscal year 2014.
GCGC recommendations
Fraport AG also voluntarily complies with the recommendations of the GCGC, solely with the following exceptions:
Transmission of the Annual General Meeting via modern communication media (Section 2.3.3 of the GCGC).
Fraport Annual Report 2013
To our Shareholders / Statement on Corporate Governance and Corporate Governance Report
17
Primarily for security reasons and personal privacy, Fraport published only the speeches of the Chairman of the Supervisory
Board and the Chairman of the Executive Board at the beginning of the 2013 Annual General Meeting on the Internet.
First-time appointment of members of the Executive Board (Section 5.1.2 (2) of the GCGC).
All Executive Board members were initially appointed for a term of five years, indicating the company’s willingness to enter
into a long-term arrangement. Furthermore, an initial term of five years represents the common practice among experienced
professionals and is therefore in line with the expectations of many potential Executive Board members.
Objectives for the composition of the Supervisory Board
Pursuant to Section 5.4.1 of the GCGC, the Supervisory Board set the following unchanged objective for its composition
already in fiscal year 2010:
“Fraport AG is committed to forward-looking, equal opportunity cooperation across genders. It will continue to promote
the employment of women according to qualification and skill at all levels and areas of responsibility in a targeted manner.
This also applies to the Supervisory Board that aims to achieve a gender ratio in the coming years that reflects the gender
ratio within the overall workforce.”
The ratio of female employees to the total number of employees at Fraport AG (single entity) is 19.3 %. The Supervisory Board
of Fraport AG comprises 20 members, with the number of female members currently at four. The number of female members
fell intially from five to three in 2012. Furthermore, the former lord mayor Dr Petra Roth resigned from the Supervisory Board
in 2013. At the Supervisory Board elections in 2013, however, the mandates of Dr Margarete Haase and Prof Dr-Ing Katja
Windt were confirmed, and Kathrin Dahnke was elected to the Supervisory Board as a new female member. Together with
the employee representative Claudia Amier, who was also newly elected by employees in 2013, the ratio of women on the
Supervisory Board is now 20 % and has therefore reached the target level.
In addition, there is an adequate number of members on the Supervisory Board who have international experience. When
proposing candidates, the nomination committee and the Supervisory Board will continue to take the international experi-
ence of Supervisory Board candidates appropriately into account.
Furthermore, based on the new provision in Section 5.4.1 of the GCGC, the Supervisory Board decided in its meeting on
December 14, 2012 that at least three independent shareholder representatives within the meaning of Section 5.4.2 of the
GCGC should be members of the board.
With Kathrin Dahnke, Dr Margarete Haase and Prof Dr-Ing Katja Windt, there are already today at least three independent
shareholder representatives on the Supervisory Board.
Notes on corporate governance practices
Beyond the statutory provisions, Fraport AG utilizes the following corporate governance practices:
Own corporate governance code
The Supervisory Board of Fraport AG has adopted its own corporate governance principles for the company. The Fraport
Corporate Governance Code describes the fundamental principles for the management and control of the company as well
as the responsible corporate governance that the company has undertaken to uphold. Furthermore, it clarifies the material
rights of shareholders.
Group Management ReportTo our ShareholdersFraport Annual Report 2013
1 8
To our Shareholders / Statement on Corporate Governance and Corporate Governance Report
The Fraport Corporate Governance Code is closely modeled after the GCGC and is regularly monitored and adapted where
necessary in light of new legal regulations as well as revised national and international standards (last amended on December 17, 2013).
It can be downloaded from the company website www.fraport.com in the section The Fraport Group.
Values-based compliance
At Fraport the issues of compliance and values management are brought together in a values-based compliance manage-
ment system. The values management system helps to prevent and monitor corruption and has been an integral component
of employees’ and executives’ employment contracts at Fraport since 2005. In past years it has been phased in at national
and international Group locations in which an interest of at least 50 % is held. An efficient information and reporting system
is an important tool for preventing violations. Consequently, Fraport AG introduced an electronic whistleblower system
(BKMS®-System) in 2009, which is also being rolled out in the Group companies on an ongoing basis. In addition, Fraport has
had an ombudsperson who confidentially receives and legally examines tips on serious legal violations since December 1, 2011.
The central task of the ombudsperson (an external lawyer) is to confidentially receive tips on corporate crimes and inadmis-
sible business practices and infringements that are detrimental to the company.
In February 2013, the Executive Board expanded this well-implemented values management system with the adoption of two
codes of conduct, one for employees and one for suppliers. These codes of conduct enable Fraport to anchor the company
ever more firmly in corporate governance in terms of its long-standing commitment to comply with internationally accredited
standards such as the principles of the UN Global Compact, OECD Guidelines and ILO Core Labor Standards. The Fraport
Policy forms the umbrella for these commitments and describes the values-related basis of the Fraport Group’s corporate action.
Structure and functioning of the management and control bodies
For Fraport AG, a responsible, transparent corporate governance and control structure is the central foundation for creating
value and trust. In accordance with the provisions of law, Fraport AG is subject to a “dual governance system”, which is achieved
through strict separation of the personnel in the management and control bodies (two-tier board). While the Executive Board
manages the company, the Supervisory Board supervises the Executive Board. The members of the Executive Board and the
Supervisory Board work closely together in the interest of the company.
The structure of the management and control bodies at Fraport AG is as follows:
Executive Board
The Executive Board of Fraport AG has comprised five members since January 1, 2013: the Chairman, Dr Stefan Schulte,
Anke Giesen, Michael Müller, Peter Schmitz and Dr Matthias Zieschang. As management body, it conducts the business of the
company. Within the framework of the stock corporation law, the Executive Board is bound by the company’s interests and
corporate socio-political principles. Beyond this, the rules of procedure, which the Executive Board established for itself and
presented to the Supervisory Board for approval, form the basis of its work. The schedule of responsibilities for the Executive
Board, which governs the allocation of responsibilities, is also attached to the rules of procedure as an annex.
Fraport Annual Report 2013
To our Shareholders / Statement on Corporate Governance and Corporate Governance Report
19
On this basis, the Executive Board reports to the Supervisory Board in a regular, timely and comprehensive manner concerning
all relevant matters of business development, corporate strategy and possible risks. In addition, the Executive Board must have
the prior approval of the Supervisory Board for several matters, particularly for the assumption of obligations above a value
of € 5 million, to the extend such is not provided for in a business plan approved by the Supervisory Board. The length of
the appointment of Executive Board members is geared toward the long-term and is – as already stated – as a rule five years.
Remuneration of the Executive Board comprises fixed and performance-related components. A detailed schedule of the
remuneration is provided in the remuneration report in the Group management report.
The Executive Board usually meets weekly and constitutes a quorum if at least half of its members participate in the meeting.
Resolutions are adopted by a simple majority of all the participating members of the Executive Board. In the case of a tie
vote, the vote of the chairman is deciding.
Supervisory Board
The Supervisory Board of Fraport AG supervises the activities of the Executive Board. It is composed of an equal number of
representatives of shareholders and employees and comprises 20 members. The ten shareholder representatives are elected
by the AGM and the ten representatives of the employees are elected by the employees in accordance with the provisions
of the German Co-Determination Act (MitbestG) for five years. The Supervisory Board has created rules of procedure, under
which it has a quorum if – on the basis of a proper notice of meeting – at least half of its members participate in the voting in
person or through submission of written votes. Resolutions are adopted with a simple majority unless otherwise mandated by
law. In the event of a tie vote, the chairman of the Supervisory Board, who must be from among the shareholder representa-
tives, is entitled to a second vote. Beyond that, the rules of procedure regulate, in particular, the appointment and powers
of committees of the Supervisory Board.
As a rule, the Supervisory Board meets four times a year (2013: seven times) and monitors the efficiency of its activities on a
regular basis with respect to both their effectiveness and their appropriateness in view of new challenges. In its Report of the
Supervisory Board, the Supervisory Board reviews its activities in the past fiscal year on an annual basis.
A detailed schedule of its remuneration is included in the remuneration report in the Group management report.
At the time of the adoption of the annual financial statements, the Supervisory Board was comprised as follows:
Composition of the Supervisory Board
Representatives of the shareholders
Representatives of the employees
Karlheinz Weimar (Chairman)
Gerold Schaub (Vice Chairman)
Uwe Becker
Kathrin Dahnke
Peter Feldmann
Karl Ulrich Garnadt
Dr Margarete Haase
Jörg-Uwe Hahn
Lothar Klemm
Michael Odenwald
Prof Dr-Ing Katja Windt
Claudia Amier
Devrim Arslan
Hakan Cicek
Dr Roland Krieg
Mehmet Özdemir
Arno Prangenberg
Hans-Jürgen Schmidt
Werner Schmidt
Edgar Stejskal
Table 8
Group Management ReportTo our ShareholdersFraport Annual Report 2013
2 0
To our Shareholders / Statement on Corporate Governance and Corporate Governance Report
Committees of the Supervisory Board
On the basis of statutory provisions and the provisions of its rules of procedure, the Supervisory Board has formed the
following committees:
Committees of the Supervisory Board
Committee
Functions
Normal
number of
meetings
Meetings
2013
Normal
number of
members
Members
Finance and
audit com-
mittee
Investment
and capital
expenditure
committee
> Preparation of Supervisory Board resolutions in the area of
4
7
8 Dr Margarete Haase (Chair)
finance and audit-related resolutions
> Monitoring of the accounting process, the effectiveness of the
internal control system, the risk management system, the in-
ternal audit system, the audit of the accounts – particularly the
independence of the external auditor and the auxiliary services
rendered by the external auditor – and the compliance
> Statement of opinion on the business and development plan,
with the exception of the capital expenditure plan, the annual
and consolidated financial statements, the management report
and the Group management report, the audit report of the
external auditor and other auditors, the proposal of the audit
report for the Supervisory Board, the approval of the Executive
Board’s actions and the awarding of the audit mandate to the
auditor, the fees agreement and the determination of the focus
of the audit
Arno Prangenberg
(Vice Chairman)
Uwe Becker
Kathrin Dahnke
Lothar Klemm
Dr Roland Krieg
Hans-Jürgen Schmidt
Edgar Stejskal
> Preparation of resolutions relating to capital expenditure,
4
6
8 Jörg-Uwe Hahn (Chair)
resolutions or decisions concerning the founding, acquisition
and sale of Group companies and ongoing monitoring of the
economic development of existing Group companies
> Final decision to the extent that the obligation or entitlement of
Fraport AG arises from an investment-related action is between
€ 5,000,000.01 and € 10,000,000
> Statement of opinion on the capital expenditure plan and on
capital expenditure reporting
Gerold Schaub
(Vice Chairman)
Claudia Amier
Peter Feldmann
Lothar Klemm
Werner Schmidt
Edgar Stejskal
Prof Dr-Ing Katja Windt
Human resour-
ces committee
> Preparation of resolutions in the area of human resources
> Statement of opinion, in particular, on the development of the
number of workforce, fundamental issues relating to collective
bargaining law, payment systems, employee investment plan,
matters concerning company retirement plan
Executive
committee
> Preparations for the appointment of members of the Executive
Board and the conditions of employment contracts, including
remuneration
> Final decision concerning outside activities of members of the
Executive Board which require the approval of the Supervisory
Board
4
4
8 Claudia Amier (Chair)
Jörg-Uwe Hahn
(Vice Chairman)
Devrim Arslan
Uwe Becker
Hakan Cicek
Mehmet Özdemir
Michael Odenwald
Prof Dr-Ing Katja Windt
As needed
4
8 Chairman of the
Committee
in accordance
with Section
27 MitbestG
> Preparation of a recommendation for the appointment or
dismissal of members of the Executive Board, if the entire
Supervisory Board does not conclude such decision
As needed
Nomination
committee
> Recommendation of suitable candidates to the Supervisory
As needed
Board for its recommendations to the AGM
Supervisory Board
Karlheinz Weimar (ex officio)
Vice Chairman of the
Supervisory Board
Gerold Schaub (ex officio)
Claudia Amier
Peter Feldmann
Dr Margarete Haase
Jörg-Uwe Hahn
Werner Schmidt
Edgar Stejskal
4 Chairman of the
Supervisory Board
Karlheinz Weimar (ex officio)
Vice Chairman of the
Supervisory Board
Gerold Schaub (ex officio)
Devrim Arslan
Lothar Klemm
3 Karlheinz Weimar
Uwe Becker
Dr Margarete Haase
Table 9
0
1
Fraport Annual Report 2013
To our Shareholders / Statement on Corporate Governance and Corporate Governance Report
21
Shareholders and AGM
The shareholders of Fraport AG exercise their rights in the company at the AGM and exercise their right to speak and to vote
there. With sufficient time prior to the meeting, the shareholders are informed of business developments in the past year and
the company’s forecasts through the management report. During the year, the shareholders are provided with comprehensive
and timely information about current business developments through interim reports and other company publications on
its website. The AGM of Fraport AG is held each year in the first six months of the fiscal year and makes decisions concerning
the tasks assigned to it by law, such as the appropriation of profits, election and approval of the actions of the members of
the Supervisory Board and approval of the actions of the Executive Board, the selection of the external auditor, amendments
to the company statutes, and other tasks. The shareholders can exercise their right to vote in person or can authorize third
parties to exercise their right to vote.
Remuneration of the Executive Board and the Supervisory Board
The disclosures on the essential features of the remuneration system as well as the disclosures on the remuneration of the
Executive Board and the Supervisory Board can be found in a separate remuneration report. In compliance with Section 4.2.5
and Section 5.4.6 (3) of the GCGC, this is part of the Group management report.
Acquisition or disposal of shares of the company
Pursuant to Section 15a of the WpHG, management and persons closely related thereto are obliged by law to disclose the
acquisition or disposal of shares of Fraport AG or any financial instruments related thereto, if the value of the transactions
undertaken exceeds the sum of € 5,000 within one calendar year. The notifications in this respect are disclosed by Fraport AG
without delay.
Shareholdings of the bodies
The total shareholdings of all members of the Executive Board and Supervisory Board are less than 1 % of the total number
of shares issued by Fraport.
Group Management ReportTo our ShareholdersFraport Annual Report 2013 2 2
Fraport Annual Report 2013
Group Management Report
Fraport Annual Report 2013
Group Management Report
23
23
Retail & Real Estate
About 300 businesses...
It does not matter whether we are talking about a coffee bar or a high-end boutique, these days an airport without
shopping and rest areas is unthinkable. Both Frankfurt terminals are currently home to about 300 businesses and
food service facilities, including 22 duty free and travel value shops. Fraport does not operate its own shops, but
develops and markets the spaces and optimizes the offer of concepts and brands. The key figure “net retail revenue
per passenger” is therefore not the average amount spent by a passenger at Frankfurt, but the lease revenue earned
by Fraport on these spaces. In 2013 this rose from 3.32 Euros to 3.60 Euros.
t
r
o
p
e
R
t
n
e
m
e
g
a
n
a
M
p
u
o
r
G
Consolidated Financial Statements
2 2
Fraport Annual Report 2013
Group Management Report
...with first-class logistics
It is not only passengers who have to be subjected to a security control before their departure, this also applies
to goods sold in the security area. As a result, for example the around 40,000 items on sale in the duty free and
travel value shops are already checked at the main warehouse of the operator “Gebr. Heinemann” in Hamburg.
Once they have been checked, these items are transported along the logistics chain to a temporary storage in
Frankfurt and delivered from there underground to the shops at the airport. Thus, more than 100 roll containers
are filled and emptied every day. Up to 200 roll containers are required on busy days.
Fraport Annual Report 2013
Group Management Report
23
23
Consolidated Financial StatementsGroup Management Report 2 4
Group Management Report / Overview of Business Development
Group Management Report for the Fiscal Year 2013
Information about reporting
statement, as well as the consolidated statement of financial position
The presentation of the Group management report has changed in
for 2012, were adjusted based on the retroactive application of IAS 19.
comparison with the previous year due to the first-time application of
The impact of the first-time application of IAS 19 with regard to partial
German Accounting Standard 20 (GAS 20). The application of GAS 20
retirement and pension accounting is shown in the Group notes to
does not have any impact on the presentation of the asset, financial
this Annual Report (see Group note 4).
and earnings position of the Fraport Group.
Since the beginning of 2013, Fraport has also applied the revised
consolidated financial statements as well as a description of specialist
version of IAS 19 “Employee Benefits”. The consolidated income
terms, can be found in the glossary.
Detailed information about the calculation of key financial figures of the
Overview of Business Development
The following graphics and notes provide an overview of the situation
can be found in the further chapters of the Group management report
of the Fraport Group in the past fiscal year, as well as a comparison with
and the Group notes.
the previous years. More detailed information on business development,
Passenger development at Group airports
in which an interest of at least 50 % is held
> Passenger record in Frankfurt
> Strong relative and absolute growth in Antalya
> Airport in Lima with double-digit growth rate again
> Solid passenger development in Burgas and Varna
million
Frankfurt
Antalya
Lima
Burgas
Varna
0
10
20
30
40
50
60
58.0
57.5
56.4
53.0
26.7
25.0
25.0
22.1
14.9
13.3
11.8
10.3
2.5
2.4
2.3
1.9
1.3
1.2
1.2
1.2
2013
2012
2011
2010
Graphic 1
Fraport Annual Report 2013 Group Management Report / Overview of Business Development
25
> Increase in Group revenue resulting from positive business develop-
ment in Germany and abroad
> Group EBITDA further increased due to price and volume effects
> Decline in Group result, mainly due to high income in the previous
year in financial asset management
Development of Group revenue, Group EBITDA
and Group result
0
500
1,000
1,500
2,000
2,500
€ million
Group revenue
Group EBITDA
Group result
2013
2012
2011
2010
2,561.4
2,442.0
2,371.2
2,194.6
880.2
848.7
802.3
710.6
235.7
251.5
250.8
271.5
Graphic 2
> Operating cash flow at €574.8 million
> Free cash flow positive due to reduced capital expenditure
> Lower Group liquidity due to loan repayment and
dividend distribution
> Slight rise in net financial debt
> Gearing ratio slightly improved to 101.3 %
Development of key figures of the consolidated statement of
cash flows and the consolidated statement of financial position
€ million
Operating
cash flow
Free
cash flow
Group
liquidity
Net
finanical debt
Gearing ratio
in %
– 500
0
500
1,000
1,500
2,000
2,500 3,000
574.8
553.0
618.8
567.5
73.1
– 162.4
– 350.1
– 291.1
1,486.3
1,663.1
1,606.9
2,384.0
2,975.4
2,934.5
2,647.0
2,024.4
101.3
104.9
97.5
77.8
0 %
50 %
100 %
2013
2012
2011
2010
Graphic 3
Target/actual comparison of major forecasts for 2013
Frankfurt passengers
Group revenue
Group EBITDA
Group result
Dividend per share
Forecast for 2013
Actual 2013
At approximately the previous year’s level
58.0 million (+0.9 %)
Increase up to 5 %
€2,561.4 million (+4.9 %)
Between €870 million and €890 million
€880.2 million (+3.7 %)
Decrease
€235.7 million (–6.3 %)
Stable dividend recommendation
Unchanged dividend recommendation of €1.25 1)
1) Recommendation to the Annual General Meeting (AGM).
Table 10
> Major forecasts for 2013 realized
> Slight passenger growth due to good summer season and year-end 2013
> Group revenue, EBITDA and result 2013 in line with the forecast
> Unchanged dividend recommendation to the AGM
Consolidated Financial StatementsGroup Management ReportFraport Annual Report 2013
2 6
Group Management Report / Situation of the Group
Situation of the Group
Operating Activities
companies consolidated excluding associates was at 52; including
associates this figure was at 58 (previous year: 51 and 57 companies).
For a detailed overview of the shareholdings within the Group, please
see the Group notes (see Group note 55).
A leading international Airport Group
Key features of the management and control structure
Fraport Group (hereinafter also referred to as: Fraport) is among the
As a stock corporation in accordance with German law, Fraport is sub-
leading global airport operators with its international portfolio of
ject to strict segregation of the decision-making powers exercised by
airport investments. The range of services of the Group comprises all
the Executive Board, the Supervisory Board and the AGM as manage-
services of airside and terminal operation. The further development
ment and control bodies.
of airports into integrated mobility, event and real estate locations
additionally represents a broad and stable revenue and earnings basis
As a management body, the Fraport Executive Board bears the stra-
for the Group.
tegic and operational responsibility for the Group. Compared with the
previous year, the Executive Board was expanded on January 1, 2013 by the
The Group’s main site and key driver of revenue and earnings is Frankfurt
addition of Anke Giesen as a fifth member. The Executive Board was in
Airport, one of the largest passenger and cargo airports in the world.
the reporting period made up of the five members Dr Stefan Schulte
In contrast to time-limited concession models, the Fraport Group
(Chairman), Anke Giesen (Executive Director Ground Handling),
parent company, Fraport AG Frankfurt Airport Services Worldwide
Michael Müller (Executive Director Labor Relations), Peter Schmitz
(Fraport AG) wholly owns and operates Frankfurt Airport with no
(Executive Director Operations) and Dr Matthias Zieschang (Executive
time limits. With just under 11,000 employees, Fraport AG, which
Director Controlling and Finance). In its meeting of September 2, 2013,
was founded in 1924 and has been a listed company since 2001, is also
the Supervisory Board resolved to extend the contract of the Chairman
the largest single entity in the Fraport Group, which has over 20,000
of the Executive Board, Dr Stefan Schulte, which runs until the end
employees. It directly or indirectly holds the shares in the Group
of August 2014, for an additional five years, until August 31, 2019.
companies (companies pursuant to Section 313 (2) of the German
Commercial Code (HGB)).
As a control body, the Fraport Supervisory Board supervises and
advises the Executive Board in its decisions and is therefore directly
In addition to Frankfurt Airport, Fraport is involved in twelve other
involved in all company decisions that are of fundamental importance.
airports on four continents through majority or minority holdings
At the time of the adoption of the annual financial statements, the
and management contracts. The holdings with the greatest impact
Supervisory Board was comprised as follows:
on earnings, due to each having equity attributable to Fraport of at
least 50 %, include the fully consolidated Group companies Lima (con-
cession agreement until 2031 with renewal option of ten years) and
Composition of the Supervisory Board
Twin Star (concession agreement for the operation of the airports in
Varna and Burgas until 2041), as well as the proportionately consoli-
dated Group company Antalya (concession agreement until 2024).
Representatives of the shareholders
Representatives of the employees
Karlheinz Weimar (Chairman)
Gerold Schaub (Vice Chairman)
Structure
Changes compared with the previous year
Uwe Becker
Kathrin Dahnke
Peter Feldmann
Karl Ulrich Garnadt
Dr Margarete Haase
Compared with the previous year, no fundamental changes were
Jörg-Uwe Hahn
made to the legal and organizational Group structure in the 2013 fiscal
Lothar Klemm
year. There were no material acquisitions or disposals of businesses,
Michael Odenwald
or significant increases or decreases in shareholdings. The number of
Prof Dr-Ing Katja Windt
Claudia Amier
Devrim Arslan
Hakan Cicek
Dr Roland Krieg
Mehmet Özdemir
Arno Prangenberg
Hans-Jürgen Schmidt
Werner Schmidt
Edgar Stejskal
Table 11
Fraport Annual Report 2013
Group Management Report / Situation of the Group
27
As an additional control and co-determination body, the shareholders,
which is mainly responsible for the business development of Group
as owners of Fraport AG, exercise their voting rights in the company
companies that are not integrated into the business processes at the
at the AGM. Each of the approximately 92 million shares that have
Frankfurt site.
been issued entitles the owner to one vote. There are no differing
classes of shares.
Furthermore, eleven additional central units (previous year: twelve
central units), such as “Corporate Compliance, Risk and Values Man-
A detailed description of the structure and operation of the manage-
agement”, “Central Purchasing, Construction Contracts” or “Finance
ment and control bodies is presented in the “Statement on Corporate
and Investor Relations”, render among other things Group-wide
Governance”. This does not form part of the annual audit by the auditor
services, for which the costs are distributed across the four segments.
and can be found in the chapter “Statement on Corporate Governance
Compared with the previous year, as of October 1, 2013, the central
and Corporate Governance Report”.
unit “Passenger Experience” was dissolved and the functions were
Division of the Group into four segments
ment, Corporate Safety and Security”, and the central unit “Corporate
For the purpose of reporting and managing the operating business, the
Communications”. By integrating “Passenger Experience” in the line
Executive Board has divided the company’s units, comprising strategic
processes, Fraport aims to achieve efficient and sustainable anchoring
business, service and central units, into four segments: “Aviation”,
and development of customer satisfaction within the company.
assigned to the strategic business unit “Airside and Terminal Manage-
“Retail & Real Estate”, “Ground Handling” and “External Activities
& Services”. The segments also encompass the Group companies
Key sites and competitive positions
involved in each of these business processes.
With just under 80 % of Group revenue and more than 90 % of the
While the Aviation segment incorporates the strategic business units
Airport – was again the most important site of the Fraport Group
employees, the German site – and here almost exclusively Frankfurt
“Airside and Terminal Management, Corporate Safety and Security”
in 2013.
and “Airport Security Management” at Frankfurt Airport, the Retail &
Real Estate segment mainly comprises the strategic business unit
In respect to its competitive position, the Frankfurt site competes on
“Retail and Properties”, which primarily handles the retailing activities,
the one hand with airports in its catchment area for boarding passen-
parking facility management and the rental and marketing of real estate
gers and – primarily – on the other hand for national and international
at the Frankfurt site. The Ground Handling segment is comprised of the
transfer passengers on the basis of its passenger structure. Its largest
“Ground Services” strategic business unit. The External Activities &
competitors are the European hub airports London-Heathrow, Paris-
Services segment includes in addition to the service units “Facility
Charles de Gaulle, Amsterdam-Schiphol and also – due to the strong
Management”, “Information and Telecommunications” and “Corporate
performance of their national airlines – the airports Dubai-International
Infrastructure Management”, which are also active at the Frankfurt site,
and Istanbul-Atatürk, in Germany in particular Munich Airport. With
in particular, the “Global Investments and Management” central unit,
58.0 million passengers, Frankfurt Airport again took third position
Segment structure
Fraport Group
Segments 1)
Aviation
Retail & Real Estate
Ground Handling
External Activities & Services
Business units
Airside and Terminal
Management, Corporate Safety
and Security
Airport Security Management
Retail and Properties
Ground Services
Global Investments
and Management
Information and
Telecommunications
Facility Management
Corporate Infrastructure
Management
1) Including assigned Group companies.
Graphic 4
Consolidated Financial StatementsGroup Management ReportFraport Annual Report 2013
2 8
Group Management Report / Situation of the Group
Revenue by region
in %
2
4
3
Employees by region
in %
2 3 4
1
1
AVIATION
1 Germany
2 Asia
3 Rest of Europe
4 Rest of World
79.6
7.3
4.3
8.8
The expansion program launched by the Executive Board in the 2009
fiscal year with start of construction work on Runway Northwest and the
FRA North modernization program, that was being progressed almost
in parallel, continue to help maintain and strengthen the international
competitive position of the site in the future. The programs, which
mainly include Runway Northwest, Pier A-Plus, the A380 moderniza-
tion measures, the CD-Pier and the planned Terminal 3, secure airport
capacities and quality in the long-term in order to give the Frankfurt site
a successful, lasting competitive edge. The development of CargoCity
North and South, which has also started, will significantly strengthen
the competitive position in the cargo segment (air freight and air mail)
over the long-term.
Graphic 5
AVIATION
1 Germany
2 Asia
3 Rest of Europe
4 Rest of World
90.8
1.3
5.0
2.9
The competitive situation at the very tourist-centered airports in
Antalya, Varna and Burgas differs from that of the Frankfurt site. The
key driver for the development at these sites is the attractiveness of
the tourist regions with regard to quality and price level, among other
things. With 26.7 million passengers, the airport in Antalya was the
second largest passenger airport in Turkey in the past fiscal year behind
Atatürk Airport in Istanbul, and the largest tourist airport in the Mediter-
ranean region, ahead of Palma de Mallorca. The airports in Burgas and
Varna, with 2.5 million and 1.3 million passengers respectively, were the
second and third largest passenger airports in Bulgaria and the largest
airports in the country in the Black Sea region. With the opening of
the terminal in Varna in August 2013 and in Burgas in December 2013,
all three tourist sites have installed sufficient capacity since the end of
the past fiscal year to be able to serve the growth that is expected in
Graphic 6
these regions in the medium-term.
The competitive situation in Lima Airport, Peru, also differs from the
in Europe in the past fiscal year after London-Heathrow (72.4 million
Frankfurt site. The aviation market in Lima continues to benefit from
passengers) and Paris-Charles de Gaulle (62.1 million passengers);
the economic prosperity of the country, the continually increasing
their lead remained more or less stable in comparison with the previ-
tourist demand and the good geographical location in South America,
ous year. With 52.6 million passengers, Amsterdam-Schiphol Airport
which is particularly attractive for transfer traffic between South and
was in fourth place after Frankfurt. In 2013, the continued dynamic
North America. Following the high rates of growth in the last ten years
development of Turkish Airlines led to a strong growth rate at Atatürk
(compound annual passenger growth of 12.6 %), Lima Airport has now
Airport in Istanbul (+13.6 % to 51.1 million passengers) and thus to
established itself as a continental hub airport. As the airport capacity
gains in market share versus other European competitors. With a signifi-
will reach its limit in the foreseeable future due to passenger growth,
cant distance behind Frankfurt Airport, Munich Airport continued to
capital expenditure on the airport’s infrastructure (construction of a
be the second-largest German passenger airport with 38.7 million
new terminal and new take-off and landing runway) is required in the
passengers (+0.8 %).
medium-term to maintain and strengthen the competitive position.
Compared across continents, some airports in Asia in particular de-
Additional information about business development in the past fiscal
veloped much more dynamically and recorded gains in market share
year can be found in the chapter titled “Economic Report” beginning
compared with Frankfurt Airport. In the transfer segment especially,
on page 44.
airports in the Gulf States, primarily Dubai Airport, continued to record
increases in connections between Europe and Asia in particular. This
was partly at the expense of the Frankfurt site because transfer pas-
sengers were diverted from Frankfurt.
Fraport Annual Report 2013 Group Management Report / Situation of the Group
29
Strategy
Group strategy remains oriented toward
long-term market development
Manage capital expenditure
To maintain its international competitiveness and participate in the
growth of air traffic over the long-term, the provision of airport infrastruc-
ture in a demand, safety and cost-oriented manner is at high priority for
Compared with the previous year, no changes were made to the
Fraport. The Executive Board therefore took substantial steps toward
Group strategy in the 2013 fiscal year. The Fraport Group strategy
the sustainability of the Frankfurt site with the start of implementation
remains oriented toward the long-term forecasted development of the
of the expansion program in the 2009 fiscal year and the FRA North
global aviation market and its market trends. Despite the now slightly
modernization program, which was progressed almost in parallel.
improved – but still unfavorable – conditions, primarily as a result of
With the inauguration of Runway Northwest in the 2011 fiscal year,
the European debt crisis, the restrained supply behavior of the airlines
the opening of Pier A-Plus in the 2012 fiscal year and the completion
and the aviation tax that was introduced in Germany in the 2011 fiscal
of the remodeling of Pier B (also in 2012) and of the CD-Pier in the
year, which, for Fraport, has a particular impact on the Frankfurt site,
2008 fiscal year, four key parts of the capital expenditure program have
the leading aviation associations and aircraft manufacturers continue
already been completed as they were needed.
to expect long-term stable growth rates in the aviation market. These
growth expectations will also have a positive impact on the traffic
The focus for the coming years will continue to be on planning based
development of the airports of the Fraport Group.
on needs and the construction of Terminal 3 in the southern part of the
airport. Due to the temporary weaker air traffic development, Fraport
Due to the uncertain short-term conditions and the predicted long-
delayed the start of construction work on the terminal in the past fiscal
term development of global air traffic, the Fraport Group faces strategic
year, from 2013 to a period of time from around 2015 onwards. With
challenges. The Executive Board has summarized these challenges in
the submission of the building application, Fraport has at the same
the five areas of activity of Agenda 2015: “manage capital expenditure”,
time laid the foundation for construction to begin on Terminal 3 from
“strengthen profitability”, “increase customer satisfaction”, “secure
around 2015 onwards and for the first phase able to begin operation
sustainability” and “utilize growth potentials”. These challenges are
from around 2021 onwards in line with demand.
described in the following.
Agenda 2015
Utilize growth potentials
Strengthen
profitability
Increase customer
satisfaction
Secure
sustainability
Manage capital expenditure
Graphic 7
In harmony with the forecasted growth in air traffic, Fraport is also ex-
panding the airport infrastructure at the Group sites outside Frankfurt.
In this context, Fraport opened a new terminal at Varna Airport and
a new terminal at Burgas Airport in the past fiscal year. On the one
hand, the two terminals expand local passenger capacities and, on
the other hand, provide additional retail space to strengthen the retail
business. Opening these terminals means both sites are prepared for
the anticipated future growth, so that no additional capacity-related
capital expenditure is required in Varna or Burgas in the medium-term.
Forecasts for the long-term development of global air traffic
Source
Period
Reference
Airports Council International (ACI)
Airbus
Boeing
Embraer
Rolls Royce
until 2031
until 2032
until 2032
until 2031
until 2031
Passengers
Passenger kilometers
Passenger kilometers
Passenger kilometers
Passenger kilometers
CAGR
4.1 %
4.7 %
5.0 %
5.0 %
4.5 %
Table 12
Consolidated Financial StatementsGroup Management ReportFraport Annual Report 2013
3 0
Group Management Report / Situation of the Group
Fraport is also planning an increase in capacity at the Group company
to improve profitability; which are not part of the short- and medium-
Lima, where in the medium-term the construction of a new terminal
term business outlook and are shown by way of example in the chapter
and a new runway will accommodate the dynamic growth in traffic of
titled “Risk and Opportunities Report” beginning on page 67.
past years and the forecasted development.
Increase customer satisfaction
The passenger development and capacity requirement are constantly
Fraport sees the ongoing improvement of customer satisfaction as a
analyzed at the Antalya site. The ground service processes are con-
challenge for all Group units. The Frankfurt site as well as the entire
tinuously optimized and the capacity of the terminal infrastructure is
Fraport Group will benefit from passengers considering Group airports
adjusted to meet operating requirements as necessary.
as their airports of choice. This applies to departing and arriving
The key risks and opportunities associated with the expansion of airport
passengers, who are using food and beverage and retail areas during
infrastructures inside and outside of Frankfurt can be found in the “Risk
their visit. It is essential to have satisfied customers in order to fully
passengers, who for example use parking facilities, as well as transfer
and Opportunities Report” beginning on page 67. The report on the
realize the potentials of the business.
level of capital expenditure in the past fiscal year can be found in the
chapter titled “Asset and Financial Position” beginning on page 53.
The results of customer surveys underscore that the quality improve-
The forecasted development for the 2014 fiscal year can be found in
ments made at the Frankfurt site in past years have been positively
the “Business Outlook” beginning on page 84. The business outlook
received by customers. To continue this trend, Fraport is continuing
also contains the expected development in the medium-term.
to intensively pursue the “Great to have you here!” service initiative
Strengthen profitability
begun in 2010. The objective is to maintain a perceived service qual-
ity – determined using “Global satisfaction” – at Frankfurt Airport of
The extensive capital expenditure measures directly result in a sig-
at least 80 % in the long-term and thus continue the positive trend of
nificant financial burden for Fraport, primarily consisting of operating
previous years. In the past, Fraport included the following measures
costs as well as depreciation, amortization and interest. The Executive
in its approach to improve customer satisfaction:
Board therefore faces already in the short-term the challenge of further
improving the profitability of the company in order to increase the
> Expansion of so-called “fast lanes” at security controls for time-
operating result as well as the Group result. In this context, Fraport in
sensitive passengers
past years has, e.g., driven the following areas forward:
> Optimization of terminal labeling for better orientation
> New information desks with boarding card scanners for individual
> Sustained traffic growth at the Frankfurt site through the inauguration
route, service and flight information
of Runway Northwest and Pier A-Plus
> Gradually raising airport charges at the Frankfurt site in the Aviation
In the future, the focus for Fraport at the Frankfurt site is primarily the
segment to cover capital costs
further optimization of the transfer process. In this context, the follow-
> Increasing retail revenue at the Frankfurt site in particular due to
ing areas can be cited as examples:
Pier A-Plus
> New ground handling services contract at the Frankfurt site with
Deutsche Lufthansa until 2018
> Extending and modernizing terminal and retail areas at sites outside
Frankfurt
> Optimizing internal processes and structures, including the restructur-
ing of Corporate Infrastructure Management and merging compa-
> Optimized transfer route structure
> Improvement of (advance) information for inexperienced passen-
gers, for example, using better communication via social media
> Expansion of self-services for experienced passengers, for example,
by increasing the use of easyPass and baggage drop-off systems
or navigation via app
rable functions in Facility Management
> Development of culture-specific services, such as personal shopper
Key performance indicators relating to the “strengthen profitability”
Outside of Frankfurt, the Lima site in particular demonstrates its customer
area of activity can be found in the chapter titled “Control” beginning
focus impressively with numerous awards (including “Skytrax Best
on page 32. A description of the development of performance indicators
Airport in South America” 2009 – 2013). At Antalya Airport, the focus
during the past fiscal year can be found in the chapters titled “Results
is also on the quality of the ground service processes and customer
of Operations” and “Segments” beginning on page 48. The associated
satisfaction: in 2011, the airport won the ACI Europe award for the
forecasted figures for the 2014 fiscal year and a medium-term outlook
best European airport in the under 25 million passengers category.
can be found in the chapter titled “Business Outlook” beginning on
In the future, the two terminal inaugurations will, in particular, have a
page 84. In addition, the Executive Board is examining further measures
positive impact on customer satisfaction at the Varna and Burgas sites.
Fraport Annual Report 2013 Group Management Report / Situation of the Group
31
Key performance indicators relating to the “increase customer satis-
In addition, the Group-wide focus is on three further growth drivers:
faction” area of activity can be found in the chapter titled “Control”
beginning on page 32. A description of the development during the
Growth driver 1: Retail business
past fiscal year can be found in the chapter titled “Non-financial Per-
The expansion and modernization of the shopping and food and
formance Indicators” beginning on page 60; the associated forecasted
beverage areas in the terminals are essential elements of growth plans
figures for the 2014 fiscal year and a medium-term outlook can be
for retail business. Through the inauguration of in total about 12,000 m²
found in the chapter titled “Business Outlook” beginning on page 84.
of retail space in Pier A-Plus, in the 2012 fiscal year Fraport created the
Secure sustainability
foundation for further retail growth at Frankfurt Airport. After the net
retail revenue per passenger increased in Frankfurt in the past fiscal
Fraport understands sustainability as responsibly developing the
year in the direction of € 4 (increase from an average of €3.32 in 2012
concept for its future, where economic objectives are to be combined
to an average of € 3.60 in 2013), the objective remains to increase the
with environmental and social targets. For this purpose, Fraport has
net retail revenue per passenger to € 4 in the medium-term. To achieve
developed a materiality matrix and systematized its objectives in a
this objective, the focus is primarily on the ongoing improvement of
sustainability program. The extent to which the objectives have been
the utilization of Pier A-Plus, accelerated handling of passengers at
achieved and the effectiveness of the measures included are regularly
the security controls, a stronger concentration of Asian flight destina-
checked and, if necessary, amended. The materiality matrix and the
tions in Pier A, the sustained modernization of existing spaces and the
sustainability program were both updated in the past fiscal year. The
continued implementation of sales-promoting measures while taking
key areas of activity include: air traffic safety, noise abatement, product
market trends into account.
quality and customer satisfaction, employment development, value
creation, compliance/governance and attractiveness as an employer.
Retail revenue at Group airports outside of Frankfurt also developed
positively with growth of more than 6 % at the Antalya site and some
Key performance indicators relating to the “secure sustainability” area
11 % at the Lima site. At the airports in Varna and Burgas, the two
of activity can be found in the chapter titled “Control” beginning on
new terminals created attractive retail space which will increase retail
page 32. A description of the development during the past fiscal year
revenue in the long-term. By continuously modernizing existing spaces
can be found in the chapter titled “Non-financial Performance Indicators”
and implementing the expertise gained in Frankfurt with regard to
beginning on page 60; the associated forecasted figures for the 2014
market trends, the Executive Board aims to further improve retail
fiscal year and a medium-term outlook can be found in the chapter
revenue at the Group airports.
titled “Business Outlook” beginning on page 84. An additional descrip-
tion of measures taken and a status report on the sustainability program
Growth driver 2: External business
can be found in the separate report “Connecting Sustainably”, which is
In the previous fiscal year, the External Activities & Services segment
available on the Group homepage under www.sustainability-report.
generated around one third of the Group result. Besides the long-term
fraport.com. The separate sustainability report does not form part of
expectations for positive development in the existing portfolio, the
the annual audit by the auditor.
clear objective is to further expand the external business. Opportunities
that are currently being examined include projects in South America,
Utilize growth potentials
Europe and Asia.
Fraport’s objective is to achieve Group-wide participation in the growth
of the aviation market. With the completion of Runway Northwest, Pier
Growth driver 3: Airport city
A-Plus and the CD-Pier, Fraport has significantly increased its capacity at
Around the world, hub airports are developing into airport cities.
the Frankfurt site in past years. Using these growth potentials is prefer-
Fraport recognized this trend at an early stage and identified sites
ably foreseen with most modern and low-noise aircraft possible. In this
that are worth consideration for real estate development. Depending
context, in 2013 the Executive Board adopted, among other things,
on the particular project, Fraport decides if and to what extent the
an incentive program for airlines, which aims to generate passenger
Group will participate in the development. Examples of the further
growth for new airlines or existing airlines on new international routes
development of Frankfurt Airport City are:
with low-noise aircraft. The Executive Board thus seeks to participate in
the global growth in air traffic with a simultaneous reduction in noise
emissions. In the long-term, the conditions for participation in further
growth in air traffic will be created thanks to Terminal 3.
In the Group airports outside of Frankfurt, the focus is also on active
site marketing. Thanks to more favorable conditions, it was possible
to achieve significantly higher growth rates in the Group airports in
the past fiscal year.
> Mönchhof site
> Gateway Gardens
> CargoCity South
> Ticona site
Consolidated Financial StatementsGroup Management ReportFraport Annual Report 2013 3 2
Group Management Report / Situation of the Group
Fraport is also examining the development potential of available
Results of operations key figures
spaces at sites other than Frankfurt. However, specific projects with a
As a fundamental component of the interim and consolidated annual
fundamental impact on the course of business of the Group are not
financial statement reporting, the results of operations include the
currently being implemented.
presentation and explanation of significant results components and
key figures. While the results of operations in the context of regular
As a result of the short- and medium-term realizable opportunities for
reporting provide information about the past business development
growth and taking account of the future development of industry-
and are explained in the short- to medium-term in the business outlook,
specific conditions, the Executive Board has drawn up the earnings
earnings forecasts are also regularly drawn up over long-term periods
forecast for the 2014 fiscal year as well as a medium-term outlook. The
for internal planning purposes. The results obtained from this are
forecast and medium-term outlook can be found in the chapter titled
essential for the Executive Board with regard to the long-term value
“Business Outlook” beginning on page 84. In addition, the Execu-
management of the company.
tive Board is examining the implementation of further opportunities,
which are not part of the short- and medium-term business outlook
The key financial performance indicators for Fraport are revenue as a
and are shown in the chapter titled “Risk and Opportunities Report”
key component of total revenue, EBITDA, EBIT, EBT and the Group
beginning on page 67.
Control
result. Revenue reflects the Group’s operating activities. EBITDA is
calculated from the total revenue less operating expenses (personnel,
material and other operating expenses). EBITDA therefore reflects the
success of the operating activities and is a key performance indicator
both in terms of absolute development as well as in relation to the
Changes compared with the previous year
development of revenue and indirectly to traffic development.
Compared with the previous year, no fundamental changes were made
to Group control in the 2013 fiscal year. However, due to the first-time
Group EBIT, which plays a decisive role in Group value management,
application of GAS 20, the presentation has changed in a way, that
presents EBITDA in the context of depreciation and amortization. Less
the key financial and non-financial performance indicators which are
the financial result, which is essentially comprised of interest income
derived from the Group strategy are now provided in the following.
and interest expenses, the EBIT results into the EBT.
Financial performance indicators
The Group result is the result of the operating activities and measures
For Fraport, the growth-oriented development of financial performance
taken to influence EBITDA, EBIT and EBT. It is calculated from EBT less
indicators is critical for the long-term success of the company. The over-
taxes on income. The Group result alters the Group shareholders’
riding importance of these indicators is reflected in the Group strategy
equity.
as a set of criteria for the “manage capital expenditure”, “utilize growth
potentials” and “strengthen profitability” areas of activity.
Asset and financial position key figures
Fraport mainly uses key figures relating to the results of operations
of Fraport are besides the results of operations reflected in the asset
and to the asset and financial position, as well as key figures that link
and financial position of the Group. For Fraport, the development of
the results of operations with the asset and financial position, as key
shareholders’ equity, the equity ratio, the net financial debt, the
financial performance indicators. In accordance with the long-term
gearing ratio, the operating cash flow and the free cash flow are
The result of the strategically adopted measures and operating activities
oriented Group strategy, the Executive Board manages and evaluates
of particular importance.
the development of financial performance indicators while also tak-
ing account of long-term forecasted market trends. In this context,
The level of shareholders’ equity represents the basis for the current
strategic measures taken – for example, the implementation of larger
and future operating activities for Fraport. A solid base of shareholders’
capital expenditure projects – can also lead to a short- to medium-
equity is, for example, essential for the financing of large strategic
term burden on the financial performance indicators, as long as it is
projects. Also connected with this was the company’s listing in the
assumed that the results of operations will develop in a clearly positive
2001 fiscal year, which led to a significant increase in shareholders’
manner over the long-term and the measures do not pose significant
equity of around € 900 million and formed the essential basis for the
risks to the company.
financing of the expansion of the Frankfurt site as well as the external
business. On the 2013 balance sheet date, Fraport held shareholders’
The key financial performance indicators and their significance for
equity of € 3,098.8 million, corresponding to a shareholders’ equity
Fraport are described in the following. A description of the develop-
ratio in relation to total assets of 30.8 % (shareholders’ equity without
ment of these indicators during the past fiscal year can be found in the
non-controlling interests of € 45.7 million and profit earmarked for
chapters titled “Results of Operations” and “Segments” beginning on
distribution of € 115.4 million).
page 48. The associated forecasted figures for the 2014 fiscal year and
a medium-term outlook can be found in the chapter titled “Business
Outlook” beginning on page 84.
Fraport Annual Report 2013 Group Management Report / Situation of the Group
33
Besides shareholders’ equity, the net financial debt and gearing ratio
While EBIT is one of the key figures of the results of operations, Fraport
in particular serve as key financial indicators to the Executive Board
assets are derived from the consolidated financial position and are
to assess the company’s situation. To calculate the gearing ratio, the
defined as the average of the Group’s or segments’ interest bearing
company calculates the shareholders’ equity on the balance sheet date
capital required for operations. Fraport assets are comprised as follows:
in relation to the net financial debt also on the balance sheet date,
whereby the net financial debt is defined as the difference between the
Goodwill + Other intangible assets at cost/2 + Investments in airport
Group’s liquidity and the non-current and current financial liabilities.
operating projects at cost/2 + Property, plant and equipment at cost/2 +
To achieve a more accurate result, the shareholders’ equity is also ad-
Inventories + Trade accounts receivable – Construction in progress at
justed by the planned dividend distribution as well as non-controlling
cost/2 – Current trade accounts payable
interests. The gearing ratio therefore measures the extent to which the
level of shareholders’ equity corresponds to the relevant net financial
To avoid value creation coming solely from depreciation and amor-
debt position and thus provides the Group’s leverage ratio. In general,
tization in calculating its value-added figure, Fraport’s depreciable
the level of the gearing ratio varies depending on Fraport’s current
assets are generally recognized at half of their historical acquisition/
phase in the capital expenditure cycle. The gearing ratio therefore
manufacturing costs (at cost/2) and not at residual carrying amounts.
usually increases in times of high capital expenditure and falls when
Goodwill is recognized at carrying amount because it is not subject
the company’s capital expenditure is lower. In the context of the
to regular depreciation and amortization.
capital expenditure program at the Frankfurt site, the Executive Board
has defined that the gearing ratio should not exceed 140 %. After a
Contrary to the calculation of the Fraport value added at Group level
value of 104.9 % was recorded for the gearing ratio at the end of the
and in the Aviation, Retail & Real Estate and Ground Handling seg-
2012 fiscal year, this figure was 101.3 % at the 2013 balance sheet date.
ments, the value added in the External Activities & Services segment
is supplemented by the results from associated companies and other
In addition to the gearing ratio, the Executive Board uses the operating
Group companies assigned to this segment as well as the correspond-
cash flow and the free cash flow as key performance indicators for the
ing assets of the Group companies. In this way, Fraport also takes
evaluation of the financial strength of the Group. While the operating
account of the associated companies and other Group companies in
cash flow shows the cash inflow and outflow from operating activities,
value management.
the free cash flow is the result of the operating cash flow less the cash
outflow for investments in airport operating projects, other intangible
Fraport calculates the weighted average cost of capital (WACC) using
assets, property, plant and equipment, and investment property. The
the capital asset pricing model. Given the continuously changing
free cash flow thus provides information about the financial funds
economic environment, interest rate levels and/or Fraport’s risk and
available to the Group from the operating activities of a period after
financing structure, Fraport regularly reviews and, if needed, adjusts
deducting operating investing activities. These “free” liquid funds
its WACC. In the 2013 fiscal year, this was, as in the previous year, at
(free cash flow) can in turn be retained in order to be available to the
9.5 % before taxes and 6.6 % after taxes.
company as a financial reserve for future capital expenditure or to
reduce the leverage ratio (gearing ratio), or they can be distributed
To allow comparisons between segments of varying size, Fraport has
to shareholders as dividends. After Fraport opened Pier A-Plus at
expanded its value added by the measurement and steering figure to
the Frankfurt site in 2012 – the last large investment project before
include “return on Fraport assets” (ROFRA). ROFRA is calculated from
Terminal 3 – positive free cash flow was achieved in 2013 for the first
the ratio of EBIT to Fraport assets and shows whether the business units
time since the start of the airport expansion and the FRA North capital
created value (ROFRA > WACC) or not (ROFRA < WACC).
expenditure program.
Non-financial performance indicators
Links between the results of operations and the asset
and financial position (value management)
In addition to its financial development, Fraport also measures the
development of “non-financial performance indicators”, which are also
In order to sustainably increasing the company’s value the Executive
essential for the long-term success of the company and result primarily
Board, in addition to the key figures for the results of operations and
from the “increase customer satisfaction” and “secure sustainability”
asset and financial position, specifically draws parallels between the
areas of activity of Group strategy.
development of the results of operations and the asset and financial
position. In this context, the Executive Board plans and manages the
These performance indicators include, for example, service quality as
Group’s development according to the principles of value manage-
perceived by passengers and employee satisfaction. To improve the
ment. At Fraport, the central figure used to measure and steer this
company control, Fraport has assigned the key non-financial perfor-
approach is the “Fraport value added” figure, which is calculated
mance indicators to the “customer satisfaction and product quality”
as the difference between EBIT and the capital costs (= Fraport assets ×
and “attractiveness as an employer” categories.
cost of capital). The value added is consolidated and recorded at
Group and at segment level.
Consolidated Financial StatementsGroup Management ReportFraport Annual Report 2013 3 4
Group Management Report / Situation of the Group
The significant non-financial performance indicators in the sense of
High connectivity, where passengers are transported with their bag-
GAS 20 and their significance for Fraport are shown in the following.
gage on the same flight, results in good baggage process quality. This
The description of their development during the past fiscal year can
is particularly important because Frankfurt has a high proportion of
be found in the chapter titled “Non-financial Performance Indicators”
transfer baggage with a transfer share of around 55 %. The objective
beginning on page 60; the associated forecasted figures for the 2014
is to achieve a sustainable baggage connectivity of more than 98.5 %.
fiscal year and a medium-term outlook can be found in the chapter
titled “Business Outlook” beginning on page 84. An additional descrip-
The availability of mobility equipment in terminals is particularly
tion of the non-financial performance indicators that are not essential
important for passengers with limited mobility. Fraport uses the equip-
for understanding business development in the sense of GAS 20, as
ment availability rate to track the availability of this equipment at the
well as a status report on the sustainability program can be found in
Frankfurt site; the rate measures the proper technical operation of
the separate sustainability report “Connecting Sustainably”, which is
elevators, escalators and aerobridges. Fraport aims for an availability
available on the company website under www.sustainability-report.
rate of far above 90 %.
fraport.com. The audit of the sustainability report does not form part
of the consolidated financial statement audit by the auditor.
Attractiveness as an employer
Customer satisfaction and product quality
and product quality, a key factor to ensure the long-term success of the
For Fraport, the quality of services performed and the associated
business. Fraport understands attractiveness to mean the creation of
customer satisfaction are decisive competitive factors and of key
good working conditions in order to gain and retain committed and
For Fraport, attractiveness as an employer is, like customer satisfaction
significance for the long-term success of the business. The clear objec-
qualified employees.
tive is therefore to raise its own quality and customer satisfaction to
a high level.
To make it possible to measure and manage its attractiveness as an em-
ployer, Fraport uses various performance indicators, such as employee
Fraport uses a number of performance indicators to measure and
satisfaction, as well as key figures relating to employee safety and
steer quality and customer satisfaction. The most important indica-
health management.
tors at the Frankfurt site include the global satisfaction of the pas-
sengers, the punctuality rate, the baggage connectivity and the
Employee satisfaction, which is recorded annually or every two years
equipment availability rate. Beyond the Frankfurt site, the focus is
at a minimum by means of a questionnaire to Fraport AG employees
primarily on passenger satisfaction at the Group airports, similar to
and 13 other Group companies including Lima and Twin Star, is a
global satisfaction.
central instrument for the measurement of employee morale. Fraport
is convinced that satisfied employees achieve better customer loyalty
For Fraport, global satisfaction covers a number of passenger-related
and improved performance. The employee satisfaction key figure is
processes and the associated quality. The processes that are assessed
calculated from nine aspects of satisfaction and shows potential areas
include, among others, waiting times at security controls and baggage
of improvement. Fraport aims to increase employee satisfaction to
claim as well as terminal cleanliness. Fraport aims to achieve a target
an average grade of better than 3.0 (whereby 1 = very good and 5 =
of at least 80 % for global satisfaction at Frankfurt Airport. Compared
inadequate). In 2013, it was at 3.02.
with the 2010 fiscal year, this increase is equivalent to a rise of ten
percentage points. Outside of Frankfurt, passenger satisfaction is mainly
Furthermore, health and safety management is key in order to become
recorded using surveys.
more attractive. Fraport needs efficient and high-performing employees
to withstand international competition. One measurement of employee
The punctuality rate indicates how many flights took off and landed
occupational health and safety which Fraport uses is the number of
on time in Frankfurt, whereby a flight is regarded as being late after
work accidents per year. The objective is to continuously reduce the
15 minutes in accordance with the International Air Transport Associa-
total number of work accidents and the resulting days missed due to
tion (IATA). A high level of punctuality is an indicator of the reliability
accidents.
of the respective airport and improves the ability of airlines and airport
service providers to plan. The assessment of the punctuality rate may
Finance Management
particularly be distorted by bad weather conditions in Frankfurt or
Fraport’s finance management encompasses the strategic goals of
by already existing delays to incoming flights. With a comparable
securing liquidity, limiting financial risks, profitability and flex-
weather situation, Fraport aims for a continued high punctuality rate
ibility. The highest priority is to secure liquidity. Based on the Group’s
of around 80 %.
solid sharholders’ equity base, it is secured through both internal
financing via operating cash flow and external financing in form of debt.
Baggage connectivity provides information about the percentage of
departure baggage at the Frankfurt site that is loaded on time and sent
With regard to debt, Fraport AG’s financial management aims to
to the correct destination in relation to the total departure baggage.
achieve a balanced financing base composed of bilateral loans, bonds
Fraport Annual Report 2013 Group Management Report / Situation of the Group
35
(capital market), loan financing from public loan institutions and
Takeover-related disclosures
promissory note loans. To reduce interest rate risk from floating rate
The capital stock of Fraport AG is € 922,896,540 (as at Decem-
borrowing, some interest rate hedges have been entered into; these
ber 31, 2013). It is divided into 92,289,654 no-par-value bearer
hedges predominantly fulfill the conditions set out under IAS 39 for
shares. The company holds treasury shares (77,365 shares) which
the establishment of a unit of valuation (hedge accounting). For Group
are offset from capital stock on the balance sheet. The subscribed
companies in which an interest of at least 50 % is held, there are mainly
capital less treasury shares as at December 31, 2013 was recognized
bank liabilities and a corporate bond issue relating to project financing.
at € 922,122,890 (92,212,289 no-par-value shares) in the commercial
balance sheet. There are no differing shares.
In the light of risk spreading and outflows at different times, the Group’s
liquidity is invested broadly. The medium- and long-term investment
On the basis of the consortium agreement concluded between the
horizon corresponds to the greatest possible extent to the expected
State of Hesse and Stadtwerke Frankfurt am Main Holding GmbH
long-term cash outflows. For payments expected shortly within the
dated April 18/23, 2001, the total voting rights in Fraport AG held
framework of current outflows as a result of capital expenditure,
by both shareholders, calculated in accordance with Section 22 (2)
Fraport AG has time deposits, securities with short remaining terms
of the German Securities Trading Act (WpHG), amounted to 51.40 %
and commercial paper available. The established strategy for the broad
as at December 31, 2013. At that time, they were attributed as fol-
diversification of investments in corporate bonds was extended in the
lows: State of Hesse 31.37 % and Stadtwerke Frankfurt am Main
past fiscal year with regard to the rating classification so that invest-
Holding GmbH 20.03 %. The voting rights in Fraport AG owned by
ments can also be made to a small extent in low-risk, non-rated bonds.
the City of Frankfurt am Main are held indirectly via the Stadtwerke
Frankfurt am Main Holding GmbH subsidiary. According to the last offi-
For the purposes of diversification, in addition to investments in indus-
cial report in accordance with the WpHG or disclosures by individual
trial bonds, there is also a broad diversification of counterparties in the
shareholders, the other voting rights in Fraport AG were attributable
financial sector. Total limits are determined in various business sectors;
as follows (as at December 31, 2013): Deutsche Lufthansa AG 8.46 %,
these limits are continuously monitored with regard to, among other
Lazard Asset Management LLC 3.16 % and RARE Infrastructure Limited
things, the changes in the banks’ credit ratings. If the credit rating
3.06 %. The relative ownership interests were adjusted to the current
is downgraded to non-investment grade during the asset’s holding
total number of shares as at the balance sheet date and therefore
period, a decision is made on a case-by-case basis on the further
may differ from the figures given at the time of reporting or from the
course of action with the asset taking into account its remaining term.
respective shareholders’ own disclosures.
Within the context of securing liquidity, Fraport showed liquidity at
The appointment and dismissal of Executive Board members is carried
December 31, 2013 composed of liquid funds and freely negotiable
out in compliance with the relevant provisions of the German Stock
securities totaling € 1,486.3 million (previous year: € 1,663.1 million).
Corporation Act (AktG) (Sections 84 and 85). Pursuant to Section 179 (1)
In contrast, there were current and non-current financial liabilities in
sentence 2 of the AktG in conjunction with Section 11 (3) of the com-
the amount of € 4,461.7 million (previous year: € 4,597.6 million).
pany statutes, the Supervisory Board is entitled to amend the company
In addition, as at the balance sheet date, additional credit lines of
statutes only with respect to the wording. Other amendments to the
€ 533.2 million were available to Fraport (previous year: € 452.9 million).
company statutes require a resolution of the AGM, which, according
to Section 18 (1) of the company statutes, must be passed by a simple
The financing and liquidity analysis at the end of the past fiscal year can
majority of the votes cast and the capital stock represented at the time
be found in the chapter titled “Asset and Financial Position” beginning
of the resolution. If, by way of exception, the law requires a higher
on page 53.
Legal Disclosures
capital majority (e.g., when changing the purpose of the company
as stated in the company statutes, Section 179 (2) sentence 2 of the
AktG; or when creating contingent capital, Section 193 (1) sentence 1
of the AktG), the resolution of the AGM has to be passed by a three-
quarter majority of the represented capital stock.
As a listed Group company headquartered in Germany, Fraport is
subject to a number of statutory disclosure requirements. Important
Pursuant to Sections 202 et seqq. of the AktG, the Executive Board was
reporting obligations that apply to the Group management report as
authorized by resolution of the AGM held on May 27, 2009 to increase
a result of these requirements are shown in the following.
the capital stock by up to € 5.5 million on one or more occasions until
May 26, 2014 with the approval of the Supervisory Board. It was pos-
sible to exclude the statutory subscription rights of the shareholders.
In 2013, a total of € 552,980 of authorized capital was used for issuing
shares within the scope of the employee investment plan. At the
AGM of May 31, 2013, by canceling the existing authorized capital,
new authorized capital of € 3.5 million was approved, which can be
Consolidated Financial StatementsGroup Management ReportFraport Annual Report 2013 3 6
Group Management Report / Situation of the Group
used for issuing shares to employees of Fraport AG (see also Group
note 31). The Executive Board is now entitled, with the approval of
Statement on Corporate Governance
and Corporate Governance Report
the Supervisory Board, to increase the capital stock once or several
Acting also for the Supervisory Board, the Executive Board prepares
times by up to a total of €3.5 million until May 30, 2018, by issuing
a Statement on Corporate Governance in accordance with Section
new shares in return for cash. The statutory subscription rights of the
289a of the HGB and Section 3.10 of the German Corporate Govern-
shareholders may be excluded.
ance Code for the Group. The Statement on Corporate Governance
including the Corporate Governance Report is published in the
A contingent capital increase of €13.9 million was approved under Sec-
chapter “To our Shareholders” and on the corporate website
tions 192 et seqq. of the AktG at the AGM held on March 14, 2001.
www.fraport.com under the section The Fraport Group.
The purpose of the contingent capital was expanded at the AGM
on June 1, 2005. The contingent capital increase also serves to fulfill
subscription rights under the approved Fraport Management Stock
Key features of the internal control
and risk management system
Options Plan 2005 (MSOP 2005). The Executive Board and Super-
The description of the key features of the internal control and risk man-
visory Board were authorized to issue up to 1,515,000 stock options
agement system with respect to the accounting process in accordance
to beneficiaries entitled to subscribe until August 31, 2009, in accord-
with Section 315 (2) no. 5 of the HGB can be found in the chapter titled
ance with more detailed provisions in this regard. Some of the shares
“Risk and Opportunities Report” beginning on page 67 of this report.
which were issued to members of the Executive Board as part of
performance-related remuneration until 2010 are subject to a vesting
period of twelve or 24 months.
Remuneration Report
Contingent capital totaled € 3.4 million as at December 31, 2013. In
The following remuneration report describes the main features of the
2013, subscription rights in the amount of € 226,000 (22,600 options)
remuneration system for the Executive Board and Supervisory Board of
were exercised under MSOP 2005.
Fraport AG in accordance with the statutory regulations and the recom-
Under a resolution of the 2010 AGM, the Executive Board is authorized
amended on May 13, 2013. It summarizes which principles apply in
to purchase treasury shares of up to 3 % of the capital stock available
determining the total compensation of the members of the Executive
at the time of the 2010 AGM. The Executive Board may only use these
Board and explains the structure and amount of the remuneration of
treasury shares to serve subscription rights under MSOP 2005, while
the Executive Board and Supervisory Board members.
mendations of the German Corporate Governance Code (GCGC) as
the Supervisory Board may use them as a share-based portion of the
Executive Board’s remuneration. No treasury shares were purchased
in 2013 based on these authorizations.
Remuneration of the Executive Board members
in fiscal year 2013
Remuneration system
The aforementioned provisions set under Section 315 (4) of the HGB
Executive Board remuneration is set by the Supervisory Board upon
are rules customarily applied by similar listed companies and are not
the recommendation of its executive committee and is reviewed on
intended to hinder any takeover attempts.
a regular basis. The remuneration of the Executive Board members
Report on the relationships with affiliated companies
the company’s situation and in line with a transparent and sustainable
Due to the interest of 31.37 % (previous year: 31.40 %) held by
corporate governance approach which focuses on the long-term.
of Fraport AG shall be in proportion to the tasks of the position and
the State of Hesse and 20.03 % held by Stadtwerke Frankfurt am Main
Holding GmbH (previous year: 20.05 %) as well as the consortium
Compensation is comprised as follows:
agreement concluded between these shareholders on April 18/23, 2001,
Fraport AG is a public-controlled enterprise. There are no control or
> Non-performance-related components (fixed salary and compen-
profit transfer agreements.
sation in kind)
> Performance-related components with a short- and mid-term
The Executive Board of Fraport AG therefore compiles a report on the
incentive effect (bonus)
relationships with affiliated companies in accordance with Section 312
of the AktG. At the end of the report, the Executive Board made the
following statement: “The Executive Board declares that under the
> Performance-related components with a long-term incentive effect
(Long-Term Strategy Award and Long-Term Incentive Program)
circumstances known to us at the time, Fraport AG received fair and ad-
Generally, the Supervisory Board has been guided by the principle that
equate compensation for each and every legal transaction conducted.
in the ordinary course of business, members of the Executive Board
During the reporting year, measures were neither taken nor omitted
shall receive a fixed annual salary, which makes up approximately 35 %
at the request of or in the interests of the State of Hesse and the City
of total compensation. The bonus payment should also amount to
of Frankfurt am Main and their affiliated companies.”
approximately 35 % of total compensation. The Long-Term Strategy
Award should account for approximately 10 % of total compensation
and the share of the Long-Term Incentive Program about 20 %.
Fraport Annual Report 2013 Group Management Report / Situation of the Group
37
In order to comply with the remuneration-related amendments of the
GCGC in the version dated May 13, 2013, with effect starting in fiscal
Performance-related components
Without a long-term incentive effect (bonus)
year 2014, a maximum limit was defined with each Executive Board
The bonus is dependent on EBITDA and ROFRA of the Fraport Group
member for the sum of the aforementioned respective remuneration
for the respective fiscal year. EBITDA is the Group operating result,
components. For the Chairman of the Executive Board this amounts to
ROFRA the interest on Group assets; i.e. the total return on capital
€2.3 million and €1.65 million for the other members of the Executive
(“return on Fraport assets”). Both key figures (EBITDA and ROFRA)
Board. This maximum limit also applies in relation to the remuneration
are recognized business management parameters for measuring the
that was granted during the previous fiscal years 2010 to 2013, the
success of a company.
components of which have not yet been fully paid out.
The actual bonus for an Executive Board member is calculated by
In addition to the aforementioned remuneration components, there
multiplying EBITDA and ROFRA, each minus a basic allowance, by an
are still stock options outstanding, issued in previous years, that have a
individual multiplier for each Executive Board member, stipulated in
long-term incentive effect as part of the stock options plan still running
each employment contract and adding the aforementioned param-
(see also Group note 45). The last time stock options were issued was
eters. The bonus amount for one fiscal year is capped at 175 % of the
in 2009. In addition, Executive Board members received contributions
bonus paid for 2009 or if the member was appointed during the year
for pension benefit commitments. The pension commitments, includ-
or the employment contract was amended in 2009, an amount ex-
ing performance-related contributions, are in a fixed proportion to
trapolated for the entire year. For Executive Board members appointed
the respective fixed gross annual salary and are therefore subject to
as of 2012 the maximum bonus amount for a fiscal year is limited to
implicit maximum limits.
140 % of the bonus calculated pro forma for fiscal year 2011. 50 % of
anticipated bonus payments are paid out monthly during the fiscal
Non-performance-related components
year. The remaining bonus payments are payable within one month
During the term of their employment agreement (generally five years),
after the Supervisory Board has approved the respective consolidated
Executive Board members, as a rule, receive a fixed annual salary for
financial statements.
the entire period.
50 % of the calculated bonus payments have a conditional payback
The amount of the fixed annual salary is reviewed on a regular basis,
provision. If EBITDA and ROFRA in the following year do not reach at
generally annually, to ensure that it is appropriate.
least an average of 70 % of the corresponding key figure for the fiscal
year in question, the Executive Board member has to pay back 30 %
The fixed annual compensation also covers any activity performed by an
of the bonus to Fraport AG. Should the same apply to the second
Executive Board member for companies in which Fraport AG holds an
year after the relevant fiscal year, 20 % of the bonus has to be repaid.
indirect or a direct interest of more than 25 % (so-called “other board
A possible repayment obligation exists for each following year sepa-
mandates related to Group companies”).
rately and must be individually reviewed each year for compliance.
If an Executive Board member has such other board mandates at
If the Supervisory Board is of the opinion that the relevant business
Group companies, the compensation he or she receives from such
figures have decreased due to influences outside of the Executive
companies is credited against the remuneration. The compensation
Board’s control, it can grant a bonus at its discretion or waive the full
received by Dr Zieschang for his activities performed as a member of
or partial repayment, based on the Executive Board member’s per-
the Supervisory Board of Flughafen Hannover-Langenhagen GmbH was
formance. If an Executive Board member holds an active position for
credited against his remuneration of 2013 from Fraport AG.
less than one fiscal year, a pro rata bonus payment is made.
In addition, the compensation for Executive Board members includes
compensation in kind and other payments (ancillary benefits). Com-
With a long-term incentive effect
(Long-Term Strategy Award, LSA)
pensation in kind is the pecuniary benefit subject to income tax from
The LSA creates an additional long-term incentive effect that takes
using a company car with driver. This compensation in kind is generally
into reasonable consideration the long-term interests of the main
available to all Executive Board members in the same way; the amount
stakeholders of Fraport AG, specifically employees, customers and
of compensation depends on the personal situation.
shareholders.
Executive Board members also receive half of the total contributions
toward their pension insurance in the case of voluntary insurance and in
the case of statutory insurance, half of the total statutory contributions.
Consolidated Financial StatementsGroup Management ReportFraport Annual Report 2013
3 8
Group Management Report / Situation of the Group
As part of the LSA, each Executive Board member is promised a pro-
amount of time the Executive Board member actually worked for the
spective financial reward for one fiscal year – the first being in 2010 for
company. There is no right to payment for a three-year period which
the year 2013. After three fiscal years have expired (the fiscal year in
has not yet expired at the time the employment contract has been
question and the two following years), the extent to which the targets
legally terminated due to extraordinary circumstances that are within
have been met is determined and the actual payment is calculated
the control of the Executive Board member (termination by request of
based on these results. The paid amount can exceed or fall below the
the Executive Board member without cause pursuant to Section 626 of
prospective amount but is capped at 125 % of the originally stated
the German Civil Code (BGB), termination for cause within the control
amount. Performance targets are customer satisfaction, sustained
of the Executive Board member in accordance with Section 626 (BGB)
employee development and share performance. All three targets are
or if the Executive Board member has been removed from his or her
equally important under the LSA. As in the previous year, for 2016 a
office for cause pursuant to Section 84 (3) of the AktG. If an Executive
prospective sum of € 120 thousand has been promised to the Chairman
Board member joins the company during the course of a fiscal year, the
of the Executive Board, while a prospective sum of € 90 thousand each
Supervisory Board decides if and to what extent the Executive Board
has been promised to the other members of the Executive Board.
member is entitled to participate in the LSA program for this fiscal year.
Michael Müller and Anke Giesen participate in the Plan Award for 2011
and 2012 on a pro rata basis.
Long-Term Incentive Program (LTIP)
The LTIP is a virtual stock options program. Beginning in fiscal
Customer satisfaction is evaluated on an annual basis using an estab-
year 2010, the Executive Board members of Fraport AG are promised
lished assessment system for airlines, real estate management, retail
each fiscal year a contractually stipulated amount of virtual shares within
properties and passengers. Whether or not a target has been met is
their employment agreements, so-called performance shares, on the
determined by comparing the corresponding data (in percentage
condition that and depending on whether they meet pre-defined
points) at the beginning of the three-year period with the average
performance targets (the so-called “target tranche”). After four fiscal
achieved over the same period. If the actual result exceeds or falls below
years – the performance period – it will be determined to what
the target by two full percentage points, the bonus paid for customer
extent these performance targets have been met and the number of
satisfaction is increased or decreased correspondingly.
performance shares actually due to the Executive Board member, the
so-called actual tranche. The actual tranche can exceed or fall below
Sustained employee development relates to employee satisfaction and
the target tranche but is capped at 150 % of the target tranche.
the changes in headcount. The Supervisory Board decides the extent
to which the target has been met. Its decision is based on the results
The two performance targets “earnings per share” (EPS) and “rank total
of the employee satisfaction barometer (a survey among Fraport AG
shareholder return MDAX” are relevant for deriving the actual tranche
employees carried out annually or at least every two years) and the
from the target tranche, with earnings per share (EPS) being weighted
responsible development of headcount in view of the economic situ-
at 70 % and rank total shareholder return MDAX at 30 %. For the fiscal
ation of the Group.
year 2013, as in the previous year, 9,000 performance shares were
allocated to Dr Stefan Schulte as a target tranche, while Peter Schmitz
For the share performance target, the Fraport share price development
and Dr Matthias Zieschang each received 6,850 performance shares.
over the corresponding three-year period is compared with the aver-
For the fiscal year 2013, 6,850 performance shares were allocated to
age development of the MDAX and a share basket, which includes the
Anke Giesen and 3,550 were allocated to Michael Müller.
shares of the operators of the Paris, Zurich and Vienna airports. The
payment for this share performance target is again determined by com-
In order to determine to what extent the EPS performance target has
paring the reference value calculated at the beginning of the three-year
been met, the weighted average target EPS during the performance
period with the actual development. Positive or negative deviations
period, based on the strategic development planning applicable at the
increase or decrease the prospective bonus correspondingly.
time of the award, is compared with the average EPS actually achieved
Entitlement to LSA payments is established by approval by the Super-
target has been met, the target EPS for the first fiscal year accounts
visory Board of the consolidated financial statements for the last fiscal
for 40 %, the second for 30 %, the third for 20 % and the fourth for
during the performance period. For the evaluation to what extent the
year of the performance period.
10 %. If targets have been met 100 % over the performance period,
the actual tranche corresponds to the target tranche. If the actual
If an Executive Board member leaves Fraport AG before the end of
EPS differs from the target EPS, the number of allocated performance
a three-year period, the performance targets for such an Executive
shares is adjusted accordingly. If the actual EPS falls below the target
Board member are not calculated until after this period has expired.
EPS by more than 25 percentage points, no performance shares are
The award for the entire period is then paid on a pro rata basis for the
issued for the EPS performance target. If the actual EPS falls below
Fraport Annual Report 2013 Group Management Report / Situation of the Group
39
the target EPS by 25 percentage points, the actual tranche amounts
The rules for LTIP entitlements of former Executive Board members are
to 50 % of the target tranche. If the actual EPS exceeds the target EPS
largely the same as for the LSA. In addition, a former Executive Board
by 25 percentage points, the actual tranche amounts to 150 % of the
member is not entitled to any performance shares for a target tranche
target tranche. Intermediate values can be calculated using a straight-
whose performance period has lasted less than twelve months at the
line method. Any performance exceeding the targets by more than
time the employment contract was legally terminated. The LTIP fair
25 percentage points is not taken into account.
value accrual allocation resulted in the following expenses for the fiscal
year: Dr Stefan Schulte € 648.8 thousand (previous year: €370.5 thou-
The extent to which the rank total shareholder return MDAX perfor-
sand), Anke Giesen € 233.3 thousand, Michael Müller €128.7 thousand
mance target has been met is calculated by determining the weighted
(previous year: €50.2 thousand), Peter Schmitz €532.6 thousand (previ-
average rank of Fraport AG amongst all companies listed in the MDAX
ous year: € 256.3 thousand), Dr Matthias Zieschang € 532.6 thousand
in relation to the total shareholder return (share price development
(previous year: € 256.3 thousand), Herbert Mai € 200.1 thousand
and dividends) over the performance period. Just as with the EPS
(previous year: € 112.8 thousand).
performance target, the four relevant fiscal years will be weighted
downwards. The actual tranche shall equal the target tranche if
Pension commitments
Fraport AG, during the performance period, ranks number 25 among
The Executive Board members are entitled to pension benefits and
total shareholder return MDAX with its weighted average. For each
provision for surviving dependents. An Executive Board member is
rank exceeding or falling below 25, the actual tranche is increased or
generally entitled to retirement benefits if he or she becomes per-
reduced by 2.5 percentage points. If Fraport AG ranks worse than 45,
manently unable to work or retires from office during the duration of,
no performance shares will be issued for the rank total shareholder
or upon expiry of, his or her employment agreement. If an Executive
return MDAX performance target; if Fraport AG ranks better than five,
Board member dies, benefits are paid to his or her surviving depend-
there will not be a further increase in the number of performance
ents. These amount to 60 % of the retirement pension for the widow
shares issued over fifth place.
or widower; children entitled to receive benefits receive 12 % each.
If no widow’s pension is paid, the children each receive 20 % of the
The relevant share price used for calculating the LTIP payment shall
retirement pension.
correspond to the weighted average of the company’s closing share
prices in XETRA or a similarly situated trading system at the Frankfurt
Upon retirement, income from active employment as well as retirement
Stock Exchange during the first 30 trading days immediately subse-
pension payments from previous or, where applicable, later employ-
quent to the last day of the performance period. For the performance
ment relationships shall be credited against accrued retirement pay
shares issued in 2013 and in previous fiscal years, the relevant share
up until reaching 60 years of age, insofar as without such credit the
price for calculating the LTIP payment is limited to € 60 per performance
total of these emoluments and the retirement pension would exceed
share. Entitlement to LTIP payments is established by the approval by
75 % of the fixed salary (100 % of the fixed salary if Fraport AG wishes
the Supervisory Board of the consolidated financial statements for the
the employment to be terminated or not be extended). Effective
last fiscal year of the performance period.
January 1 of each year, the pensions are adjusted at discretion, taking
For all performance shares allocated from the fiscal year 2014 onwards,
the company’s economic situation. The adjustment obligation shall be
the LTIP payment is limited to 150 % of the product from the perfor-
considered to be satisfied if the adjustment does not fall below the
mance shares of the actual tranche multiplied by the “relevant share
increase in the consumer price index for the cost of living for private
into account the interests of the former Executive Board member and
price at the time of issuance”. The “relevant share price at the time
households in Germany.
of issuance” corresponds to the weighted average of the company’s
closing share prices in XETRA or a similarly situated trading system at
The retirement pension of an Executive Board member is defined by
the Frankfurt Stock Exchange during the month of January of the fiscal
the percentage of a contractually agreed basis of assessment, with the
year, in which the relevant performance period begins.
percentage rising annually by 2.0 % up to a limit of 75 %, dependent
Furthermore, for all LTIP performance share tranches that have already
been allocated and will be in future, maximum payment amounts have
As at December 31, 2013, Dr Schulte is entitled to 58.0 % of his fixed
been defined, which amounts to a maximum of € 810.0 thousand for
annual gross salary. Mr. Schmitz is entitled to 38.0 % of his fixed annual
Dr Schulte and for the other Executive Board members € 616.5 thou-
gross salary as at December 31, 2013. The basic account commitment
sand per performance share tranche.
(guideline 2 of the Fraport capital account plan – “Kapitalkontenplan
on the duration of time an Executive Board member is appointed.
Fraport” – concerning the company benefit plan for Senior Managers,
dated February 26, 2002), to which Mr. Schmitz is entitled under
Consolidated Financial StatementsGroup Management ReportFraport Annual Report 2013 4 0
Group Management Report / Situation of the Group
Fraport AG’s company benefit plan up to December 31, 2008, shall
The surviving dependents of Executive Board members appointed from
be credited pro rata temporis against pension payments over a period
2012 receive the following benefits: If there is no prior event giving
of eight years after the employment contract has been terminated or
rise to retirement benefits, the benefits for the widow or widower is
expires. As at December 31, 2013, Dr Zieschang is entitled to 42.0 %
the pension capital generated so far. If there is no eligible widow or
of his fixed annual gross salary.
widower, each half-orphan will receive 10 % and each full-orphan will
receive 25 % of the pension capital generated so far as a one-time
In the event of occupational disability, the pension rate for Dr Schulte,
payment. If the pension capital reached is less than €600 thousand
Mr. Schmitz and Dr Zieschang amounts to at least 55 % of their
upon death, Fraport will increase it to this amount. The payment risk
respective fixed annual gross salaries or of the contractually agreed
of this increase has been covered by a term life insurance policy. If an
basis of assessment.
Executive Board member dies while collecting retirement benefits, the
widow or widower is entitled to 60 % of the last retirement benefits
For Executive Board members appointed as of 2012, the pension
granted. Each half-orphan receives 10 % and each full-orphan receives
benefits and provision for surviving dependents as well as provision for
25 % of the last retirement benefits granted. If there are no surviving
long-term occupational disability are governed by a separate benefit
dependents as set forth above, the heirs receive a one-time death
agreement. This calls for a one-time pension capital or life-long retire-
grant in the amount of € 8.0 thousand.
ment payments after the insured event become due. The pension
capital is generated when Fraport AG annually credits 40 % of the fixed
Moreover, each member of the Executive Board has entered into a two-
annual gross salary paid to a pension account. The pension capital
year restrictive covenant. During this term, reasonable compensation in
accumulated at the end of the previous year pays interest annually
the form of an annual gross salary (fixed salary) pursuant to Section 90a
at the interest rate used for the valuation of the pension obligations
of the HGB shall be paid. Partly payments shall be made monthly. The
in the German commercial balance sheet of Fraport AG at the end of
compensation shall be generally credited against any retirement pay-
the previous year pursuant to Section 253 (2) of the HGB, which is
ments owed by Fraport AG, inasmuch as the compensation together
at least 3 % and at most 6 %. This is increased by 1 % on January 1 of
with the retirement payments and other generated income exceed
each year for life-long retirement payments. No further adjustment
100 % of the last fixed salary received.
is made. If the pension capital reached is less than € 600 thousand
when retirement benefits fall due as a result of long-term occupational
No other benefits have been promised to Executive Board members,
disability, Fraport AG will increase it to this amount. In the event of
should their employment be terminated.
long-term occupational disability within the first five years of their
activities performed as members of the Executive Board, it is foreseen
The retirement pension entitlement of former Executive Board mem-
that Executive Board members can postpone the receipt of a monthly
bers is determined by a percentage of a contractually agreed fixed
pension of to a maximum of five years since the start of the employment
basis of assessment.
contract. Until the postponed start of the pension benefit payments,
they will receive a monthly benefit of € 2.5 thousand. This risk of pen-
Detailed information on the compensation components and amount
sion payments in the increase phase and of payments for the increase
of compensation of the Executive Board members of Fraport AG in
has been covered by an occupational disability insurance policy. The
2013 is shown in the following tables.
full amount of all income within the meaning of the Income Tax Act
from employment or self-employment is credited against the retire-
Remuneration of the Executive Board 2013
ment benefits paid until the end of the month in which the Executive
The following remuneration was paid to the members of the Executive
Board member reaches the age of 62.
Board:
Remuneration of the Executive Board 2013
in €´000
Remuneration paid out in cash
Total
Dr Stefan Schulte
Anke Giesen
Michael Müller
Peter Schmitz
Dr Matthias Zieschang
Total
Non-performance-related components
Fixed salary
In kind
and other
415.0
300.0
300.0
300.0
320.0
1,635.0
22.5
43.9
47.0
33.1
43.9
190.4
Performance-
related component
without long-term
incentive effect
Performance-
related component
with long-term
incentive effect
Bonus
674.8
476.3
296.4
476.3
523.9
2,447.7
LSA
100.0
0.0
0.0
70.0
70.0
240.0
1,212.3
820.2
643.4
879.4
957.8
4,513.1
Table 13
Fraport Annual Report 2013
Group Management Report / Situation of the Group
41
Remuneration of the Executive Board 2013
in €´000
Performance-related component with long-term incentive effect
Share-related remuneration
Dr Stefan Schulte
Anke Giesen from Jan. 1, 2013
Michael Müller
Peter Schmitz
Dr Matthias Zieschang
Total
LTIP
346.7
263.9
136.7
263.9
263.9
1,275.1
Table 14
The bonus includes the payments on account for the fiscal year 2013
LTIP is carried at fair value as at the time of offer.
and the addition to the bonus provision in 2013.
The following total remuneration was paid to the members of the
The Supervisory Board will decide on the final bonus for 2013 in fiscal
Executive Board in 2012:
year 2014.
Remuneration of the Executive Board 2012
in €´000
Remuneration paid out in cash
Total
Dr Stefan Schulte
Michael Müller from Oct. 1, 2012
Peter Schmitz
Dr Matthias Zieschang
Herbert Mai until Sept. 30, 2012
Total
Non-performance-related components
Fixed Salary
In kind
and other
415.0
75.0
300.0
320.0
225.0
1,335.0
22.3
10.3
37.5
40.1
30.2
140.4
Performance-
related component
without long-term
incentive effect
Bonus
662.4
72.7
467.5
514.3
350.6
2,067.5
1,099.7
158.0
805.0
874.4
605.8
3,542.9
Table 15
Remuneration of the Executive Board 2012
in €´000
Performance-related component with long-term incentive effect
Share-related remuneration
Dr Stefan Schulte
Michael Müller from Oct. 1, 2012
Peter Schmitz
Dr Matthias Zieschang
Herbert Mai until Sept. 30, 2012
Total
LTIP
291.8
201.8
222.1
222.1
0.0
937.8
Table 16
In accordance with IFRS 2, the stock option programs are recorded
MSOP 2005, tranche 2009. These stock options were fully exer-
through profit and loss and lead to an expense in the fiscal year from
cised by Michael Müller in 2013, which resulted in an expense of
the period-appropriate distribution of the option value: In fiscal
€12.6 thousand. In the previous year, the expense for the Executive
year 2013, only Michael Müller owned 1,800 stock options from
Board members amounted to €42.2 thousand.
Consolidated Financial StatementsGroup Management ReportFraport Annual Report 2013
4 2
Group Management Report / Situation of the Group
Provisions for pensions and similar obligations
Pension obligations to currently active Executive Board members
Of the future pension obligations of € 32,105 thousand, € 24,035 thou-
were as follows:
sand relates to pension obligations owed to former Executive Board
members and their dependents. Current pension payments amounted
to € 1,740 thousand in 2013.
Pension obligations to currently active members of the Executive Board
in €´000
Dr Stefan Schulte
Michael Müller
Peter Schmitz
Dr Matthias Zieschang
Anke Giesen from Jan. 1, 2013
Total
Obligation
Dec. 31, 2012
Change
2013
Obligation
Dec. 31, 2013
4,019
33
1,799
1,654
0
7,505
118
128
39
143
136
564
4,137
161
1,838
1,797
136
8,069
Table 17
Other agreements
August 31, 2013. For this and other tasks, Fraport AG supplied Prof
Each member of the Executive Board has entered into an obligation
Dr Bender with offices, office equipment and supplies and an assistant
to purchase shares in Fraport AG amounting to at least half a year’s
until August 31, 2013. Prof Dr Bender did not receive any compensa-
fixed gross salary (cumulative cost at the time of purchase) and hold
tion from Fraport AG for his activities. Until August 31, 2011, travel
them for the duration of the respective contract of employment.
expenses were reimbursed upon authorization and approval of the
Already existing holdings of Fraport AG shares are taken into account.
trip according to the applicable company guidelines. After this time,
The obligation to purchase and hold shares is reduced pro rata if the
travel expenses were no longer reimbursed.
employment contract has a term of less than five years. If the Executive
Board member is reappointed, the equivalent value of the shares an
Prof Dr Bender also received pension payments of € 252.4 thousand.
Executive Board member is obliged to hold is increased to at least a
Prof Dr Bender has agreed that the post-employment restrictive cov-
full year’s gross salary.
enant, which applies for two years after the employment agreement
ends, was extended for an additional two years up to August 31, 2013.
Within the context of her additional expenses for maintaining two
Prof Dr Bender waived the right to compensation as set out in Section
households, Anke Giesen was granted a monthly gross allowance
90a of the HGB payable by Fraport AG from January 2011.
of € 2 thousand for twelve months after the start of the employment
contract. Accordingly, she was granted a total of € 24.0 thousand for
Other benefits
2013. In addition, relocation costs were covered by Fraport AG upon
Executive Board members have as other benefits the option of private
submission of relevant invoices in a total amount of € 9.5 thousand.
use of a company vehicle with a driver, private use of a company cell
The employment contract of Herbert Mai provides for a two-year post-
93 (2) sentence 3 of the AktG, an accident insurance and a life-time
employment restrictive covenant following the end of his employment
entitlement to use the VIP service of Fraport AG, as well as access to a
on September 30, 2012. The compensation to be paid to Mr. Mai by
parking spot at Frankfurt Airport. Fraport AG reimburses travel costs for
Fraport AG as set out in Section 90a of the HGB was € 150.0 thousand
company trips and other business expenses in line with the regulations
phone, a D & O liability insurance with a deductible pursuant to Section
for 2013. Pursuant to the employment contract, the above-mentioned
in general use at Fraport AG.
compensation shall be credited against the retirement payments
inasmuch as the compensation together with other generated in-
Disclosures pursuant to Section 15a of the WpHG
come received exceeds 100 % of the last fixed annual gross payment
Pursuant to Section 15a of the WpHG, members of the Fraport Execu-
received. Furthermore, Mr. Mai received pension benefit payments
tive Board and Supervisory Board are required to disclose transactions
of € 135.0 thousand, a proportional bonus for the fiscal year 2012 of
with shares of Fraport AG or any related financial instruments to the
€ 350.6 thousand and a proportional payment of the LSA for the fiscal
company and the German Federal Financial Supervisory Authority
year 2010 of € 64.2 thousand.
(BaFin) within five business days. This also applies to persons who are
closely related to members of the Executive Board and Supervisory
The former Chairman of the Executive Board, Prof Dr Wilhelm Bender,
Board as defined in Section 15a (3) of the WpHG. These transactions
continued to render consulting services to Fraport AG even after
have been published by Fraport in accordance with the deadlines
his departure from the company. The consulting agreement, which
under Section 15a of the WpHG.
ended in 2011, was extended for another two years and ended on
Fraport Annual Report 2013
Group Management Report / Situation of the Group
43
Remuneration of the Supervisory Board
in fiscal year 2013
members of or leave the Supervisory Board during the current fiscal
year receive pro rata compensation. The same holds true in the case
The remuneration of the Supervisory Board is laid down in Section 12
of any change in the membership of committees. Each Supervisory
of the Statutes of Fraport AG. It is provided solely as fixed remunera-
Board member receives € 800 for every Supervisory Board meeting he
tion. According to this, every member of the Supervisory Board shall
or she attends and every committee meeting attended of which he or
receive a fixed compensation of € 22.5 thousand for each full fiscal year
she is a member. Accrued expenses will also be reimbursed.
payable at the end of the fiscal year, the Chairman and the Chairman
of the finance and audit committee shall receive twice that amount,
All active members of the Supervisory Board received an aggregate
the Vice Chairman and the Chairmen of the other committees shall
compensation of € 889.5 thousand in 2013 (previous year: €853.4
each receive one and a half times this amount. For their membership
thousand).
on a committee, Supervisory Board members receive an additional,
fixed compensation of € 5 thousand per committee for each full fiscal
The following remuneration was paid to the members of the Supervisory
year. This additional compensation is paid for a maximum of two
Board for fiscal year 2013:
committee memberships. Supervisory Board members that become
Remuneration of the Supervisory Board 2013
in €
Supervisory Board Member
Fixed salary
Committee
remuneration
Attendance
fees
Ismail
Claudia
Devrim
Mario A.
Uwe
Hakan
Kathrin
Detlef
Peter
Dr Margarete
Jörg-Uwe
Erdal
Lothar
Dr Roland
Stefan H.
Michael
Mehmet
Arno
Gabriele
Dr h c Petra
Gerold
Hans-Jürgen
Werner
Edgar
Christian
Karlheinz
Aydin
Amier
Arslan
Bach
Becker
Cicek
Dahnke
Draths
Feldmann
Haase
Hahn
Kina
Klemm
Krieg
Lauer
Odenwald
Özdemir
Prangenberg
Rieken
Roth
Schaub
Schmidt
Schmidt
Stejskal
Strenger
Weimar
Prof Dr-Ing Katja
Windt
9,375.00
19,687.50
13,125.00
9,375.00
13,125.00
13,125.00
13,125.00
7,500.00
22,500.00
35,625.00
33,750.00
9,375.00
22,500.00
22,500.00
22,500.00
22,500.00
13,125.00
22,500.00
1,875.00
9,375.00
33,750.00
22,500.00
22,500.00
22,500.00
18,750.00
45,000.00
22,500.00
2,083.33
5,833.33
5,833.33
2,083.33
5,597.23
2,916.67
2,916.67
3,333.33
4,763.90
10,000.00
10,000.00
2,083.33
10,000.00
5,000.00
0.00
5,000.00
2,916.67
5,000.00
833.33
4,166.67
10,000.00
5,000.00
6,666.67
10,000.00
4,166.67
10,000.00
10,000.00
2,400.00
11,200.00
6,400.00
2,400.00
7,200.00
6,400.00
5,600.00
4,000.00
6,400.00
12,000.00
13,600.00
2,400,00
16,800.00
11,200.00
4,000.00
5,600.00
6,400.00
11,200.00
0.00
2,400.00
12,800.00
11,200.00
10,400.00
19,200.00
5,600.00
9,600.00
12,800.00
Total
13,858.33
36,720.83
25,358.33
13,858.33
25,922.23
22,441.67
21,641.67
14,833.33
33,663.90
57,625.00
57,350.00
13,858.33
49,300.00
38,700.00
26,500.00
33,100.00
22,441.67
38,700.00
2,708.33
15,941.67
56,550.00
38,700.00
39,566.67
51,700.00
28,516.67
64,600.00
45,300.00
Table 18
Compensation of the Economic Advisory Board
in fiscal year 2013
In fiscal year 2013, aggregate compensation of the Economic Advisory
Board amounted to € 90.5 thousand (previous year: € 93.0 thousand).
For membership on the Economic Advisory Board, a compensation
of € 2,500 is paid for every year of membership and € 2,000 per meet-
ing attended, with the Chairman receiving twice that amount. Travel
expenses are reimbursed independently.
Consolidated Financial StatementsGroup Management ReportFraport Annual Report 2013
4 4
Group Management Report / Economic Report
Economic Report
during the course of 2013, increasing momentum in global economy
could be seen.
General Statement of the Executive Board
Despite a slight cooling compared to the previous year, the German
economy asserted itself well in a European comparison, at +0.4 % in
In a volatile economic environment, Fraport reached its forecasted
2013. After a phase of weakness in winter 2012/2013 (calendar- and
goals in fiscal year 2013 (see also 2012 Group management report
seasonally-adjusted –0.5 % in the fourth quarter of 2012 and stagnation
beginning on page 70). After a significant decline in passenger
in the first quarter of 2013, each compared to the previous quarter),
numbers at the Frankfurt site during the first months of 2013, a good
the economic situation improved during the course of 2013 and thus
booking situation during the summer months and capacity increases
found its way back to moderate growth in a difficult international
by the airlines during the last months of the fiscal year contributed to
environment. The driver of this positive annual result was domestic
the slight positive passenger growth overall of 0.9 %. In addition to
consumption and particularly government and private consumer
this, the increase in the airport and infrastructure charges and rising
demand, which grew by a total of 0.9 % on a price-adjusted basis.
retail revenue in connection with the operation of Pier A-Plus led to
Exports fell by 0.2 %, while imports fell by 1.2 %.
higher revenue at the Frankfurt site. At Group companies outside of
the Frankfurt site in which Fraport holds an interest of at least 50 %, the
In spite of the overall moderate economic development, the price
passenger and result figures continued to develop positively.
levels remained high on the raw materials markets, particularly for
crude oil (average global market price per barrel in 2013: US-$106,
As a result of the operating activity, the Group EBITDA was within the
compared to around US-$107 in 2012 and 2011). The growth rate of
forecasted range, at around € 880 million. Lower depreciation and
global trade was again nearly 3 %.
amortization than expected led to a Group EBIT of some €528 mil-
lion, which was slightly above the forecast. In conjunction with the
anticipated deterioration in the financial result, the Group result was
Gross domestic product (GDP)/world trade
lower than the value of the previous year, as expected in the forecast.
Real changes compared
to the previous year in %
2013
2012
Due to a continued solid supply of liquidity, the medium- to long-
term oriented repayment profile as well as the positive development
of free cash flow, the Executive Board again characterizes the financial
position of the Fraport Group as stable at the end of fiscal year 2013.
The Executive Board therefore assesses the business development in
2013 as favorable overall.
Economic and industry-specific Conditions
Development of the economic conditions
With growth of around 3 %, the development of the global economy
in the past fiscal year was within the relatively wide range of forecasts
Germany
Euro zone
Bulgaria
Turkey
Peru
USA
Japan
Great Britain
Russia
China
India
Brazil
World
by various banks and financial institutions of 2.4 % to 3.5 %. However,
World trade
0.4
– 0.4
0.5
3.7
5.4
1.9
1.7
1.7
1.5
7.7
4.4
2.3
3.0
2.7
the development in the individual regions varied strongly. While the
countries of the Euro zone as a whole suffered a drop in economic
performance of approximately 0.4 % due to the continuing effects of
the European debt crisis, the Asian countries – essentially Japan, China
and India – and the countries of Latin America and Africa developed
significantly more strongly, but lagged behind expectations. Overall,
2013 figures based on: International Monetary Fund (IMF, January 2014,
partially October 2013), Organisation for Economic Co-operation and
Development (OECD, November 2013), Deutsche Bank (February 2014),
DekaBank (February 2014), German Federal Statistical Office (January/
February 2014), www.tecson.de (oil prices, January 2014). 2012 figures:
IMF (January 2014, partially October 2013) and German Federal Statistical
Office for GDP of Germany (January 2014).
0.7
– 0.7
0.8
2.2
6.3
2.8
1.4
0.3
3.4
7.7
3.2
1.0
3.1
2.7
Table 19
Fraport Annual Report 2013
Group Management Report / Economic Report
45
Development of the legal environment
During the past fiscal year, there were no changes to the legal environ-
Building application for Terminal 3
in Frankfurt submitted
ment that had a significant influence on the business development of
After the HMWVL approved the necessary changes to the detailed
the Fraport Group.
planning of Terminal 3 with a notification dated September 6, 2013,
Fraport submitted the building application to the competent con-
Development of the global aviation market
struction regulatory authority of the City of Frankfurt for the terminal
For the full year of 2013, the ACI reported preliminary worldwide pas-
on the southern part of Frankfurt Airport on September 17, 2013.
senger growth of 3.9 %. In the same period, faced with sustained low
Construction of Terminal 3 is part of the airport expansion approved
global economic momentum, air freight volume gained moderately
by the zoning decision and creates the required long-term terminal
by 1.0 %. While the passenger figure at European airports grew by
capacity needed to serve Frankfurt’s projected growth in traffic. With
2.6 %, the European air freight volume was only 0.8 % above the previ-
the submission of the building application, construction can begin as
ous year’s level, particularly due to the continuing effects of the debt
of around 2015 and the first phase can begin operation from around
crisis. Also influenced by weather and strike-related flight cancellations,
2021 onwards in line with demand.
German airports recorded a slight cumulative increase in passenger
traffic of 0.5 %. With respect to cargo tonnage handled (air freight
Terminal openings in Varna and Burgas
and air mail), Germany was slightly above the previous year’s level
The Group company Twin Star opened a new 20,000 m² terminal at
with growth of 0.2 %. The leap year day from 2012 had a negative
Varna Airport in August 2013 and a 21,000 m² terminal at Burgas Airport
impact on traffic results during the 2013 reporting period by nearly
in December 2013 with a similar design, which are customized to the
0.3 percentage points.
respective passenger requirements. The new passenger facilities have,
among other things, an arrival area that can have separate Schengen
and non-Schengen areas and attractive shopping and food and bever-
Passenger and cargo development by region
age areas. The terminals make a significant contribution to the Group
Changes compared to the previous year
in %
Passengers
2013
Air freight
2013
0.2
0.8
0.5
– 0.2
5.4
0.9
– 2.7
1.0
Table 20
Germany
Europe
North America
Latin America
Middle East
Asia-Pacific
Africa
World
0.5
2.6
1.3
4.8
10.1
7.2
– 0.6
3.9
Source: ACI Passenger Flash and Freight Flash December 2013
(ACI, February 2014), ADV for Germany cargo in place of air freight
(January 2014).
Significant Events
Zoning decision for the expansion of the airport
in Frankfurt supplemented
company Twin Star’s further growth potential in the passenger and retail
areas. The higher depreciation, amortization and interest expenses as
a result of the terminal inaugurations will initially offset the positive
EBITDA effect expected in 2014 from the expansion.
Terminal opened at St. Petersburg Airport
Together with its partners in the Northern Capital Gateway consortium,
Fraport started operations at the new terminal at Pulkovo Airport in
St. Petersburg in December 2013. As a result, the airport now has an
annual capacity of more than 17 million passengers and offers its guests,
in addition to a significantly improved passenger experience, more retail
and food and beverage shops located in an area covering 13,500 m².
The necessary conditions are now in place for future passenger and
retail growth of the Group company. In addition to positive operating
effects, the terminal inauguration will also lead to higher depreciation,
amortization and interest expenses for the Group company. Overall,
therefore, the Group company anticipates a temporary negative effect
on earnings from the terminal opening. In addition to the construction
of the new terminal, the Northern Capital Gateway consortium has,
The Hessian Ministry of Economics, Transport, Urban and Regional
among other things, constructed additional apron areas, a hotel and
Development (HMWVL) supplemented the zoning decision of
a business center.
December 18, 2007, with the zoning supplement decision of
April 30, 2013 containing more stringent protection requirements
for commercial properties and by the zoning supplement decision of
May 10, 2013 containing an additional protection requirement with
respect to wake turbulences. An explanation of the effects on the
consolidated financial statements can be found in the chapter titled
“Asset and Financial Position” beginning on page 53 of this report.
Consolidated Financial StatementsGroup Management ReportFraport Annual Report 2013
4 6
Group Management Report / Economic Report
New Hesse coalition agreement presented
the first months of the fiscal year, a solid bookings situation during the
On December 18, 2013, the parties CDU and “Bündnis’90/Die Grünen”
summer months and capacity increases by the airlines during the last
presented their coalition agreement for the Hesse parliamentary term
months of 2013 contributed to the overall slight growth. There was a
from 2014 to 2019. The coalition agreement includes, among others,
negative impact not only from the absence of the leap-year day, but
the following items that have an impact on Frankfurt Airport: needs-
also due to the fact that various airlines reduced services as a result of
related examination of the Terminal 3 construction project, introduc-
continuing consolidation measures. Moreover, the cumulative result
tion of a noise emission ceiling and additional measures to restrict
was impacted by a large number of weather and strike-related flight
aircraft noise pollution. According to the coalition agreement, these
cancellations, affecting more than 360,000 passengers.
measures shall primarily include restrictions from 10 p.m. to 11 p.m. and
5 a.m. to 6 a.m. with the objective of achieving regular seven-hour
The disruptive events and service reductions primarily influenced
breaks from noise during the night. A description of regulatory and
domestic and European passenger traffic. While both traffic mar-
legal risks, as well as risks in relation to the airport expansion at the
kets still showed perceptible declines until the middle of the year,
Frankfurt site, can be found in the “Risk and Opportunities Report”
they gradually increased during the further course of the year and
beginning on page 67 of this report.
recorded a solid growth rate at the end of the year (domestic traffic:
Business Development
+0.9 %; European traffic: +1.6 %). Despite the negative base effect from
the leap-year day in the previous year, intercontinental passenger
traffic increased by 0.5 % in the reporting period. Development was
above average particularly to and from Central America (including the
General development of the airport portfolio
Caribbean) and Central Africa, but also to and from North America.
The Fraport Group’s airports (those in which an interest of 50 % or
Sub-markets in the Far East, particularly India, China, Taiwan and
more is held) handled some 103.5 million passengers in 2013 – an
Malaysia, also grew perceptibly. In contrast, the political unrest in the
increase of 4.1 %. The number of aircraft movements increased slightly
Middle East and North Africa was reflected in the lower passenger
by 0.7 % to more than 825,000. The cargo volume grew by 1.3 % to a
volumes for these regions.
good 2.39 million metric tons. In total, around 197.9 million passengers
(+5.2 %) used Fraport airports (including minority-owned airports and
At nearly 2.1 million metric tons handled, cargo tonnage exceeded
the management contract at Cairo Airport).
the previous year by 1.4 %, or around 28,000 tons. In line with the
Development at Frankfurt Airport
with an increase of +4.4 % (+9,300 metric tons). Intercontinental cargo
With an increase of 0.9 % to some 58.0 million passengers, Frankfurt
throughput, which has significantly higher volume at nearly 88 % of
Airport exceeded the volume of the previous year by around 515,000
the total, gained by 1.3 % (around +23,600 metric tons). Domestic
passengers. After a significant decline in passenger numbers during
tonnage declined by nearly 10 %.
passenger traffic, European volume showed the most dynamic growth
2013 passenger and cargo development at Frankfurt Airport (% change over 2012)
– 4.9
0.9
0.2
– 3.4
– 1.1
4.6
– 2.2
0.1
0.4
– 0.6
0.7
3.0
– 0.7
– 0.6
3.6
1.7
3.6
0.0
3.5
3.1
3.5
4.0
2.9
2.6
in %
0
January
February
March
April
May
June
July
August
September
October
November
December
Passengers
Cargo
Graphic 8
Fraport Annual Report 2013 Group Management Report / Economic Report
47
With a rising average aircraft size, the number of aircraft movements
number of passengers was primarily more travelers from Russia. Varna
and the cumulative maximum take-off weights were down by 2.0 %
Airport also benefited during the reporting period from the growth
and 1.7 %, respectively, due to the consolidation measures of the air-
of Russian passengers, among other things, and showed an increase
lines, the high number of flight cancellations and the missing leap-year
of 8.0 % to some 1.3 million passengers.
day. The share of transfer passengers – as in the previous year – stood
at about 55 %.
Delhi Airport showed an increase in traffic of 7.3 % in 2013 compared
to the previous year, to around 36.7 million passengers. International
Development outside of the Frankfurt site
traffic recorded particularly strong growth (+15.4 %).
At Antalya Airport, the number of passengers in fiscal year 2013
increased by 7.1 % to around 26.7 million. Both international traffic
Xi’an Airport again achieved positive performance. Passenger volume
(+6.4 % to approximately 21.7 million passengers) and domestic traffic
at the end of the fiscal year stood at around 26.0 million. This represents
within Turkey (+10.2 % to around 5.0 million passengers) contributed
an increase of 2.6 million passengers, or 11.2 %, compared to the
to the positive development. Additional passengers originated from
previous year.
Russia and Ukraine in particular.
Lima Airport again showed strong growth of 11.9 % in 2013 to some
passenger increase of 15.2 % for the full year of 2013 in comparison to
14.9 million passengers. The number of international passengers grew
the previous year. International traffic continued to develop positively
With around 12.9 million passengers, St. Petersburg Airport saw a
by 8.8 % to around 7.0 million and the share of domestic passengers
with a growth rate of just under 15 %.
increased by 14.7 % to around 7.9 million. Cargo throughput was
slightly above the previous year’s level at around 297 thousand metric
With approximately 5.2 million passengers, the volume at Hanover
tons (+1.0 %).
Airport was slightly below the previous year’s level (–1.0 %). While
the months of May, June and July recorded passenger growth, the
With nearly 2.5 million passengers, Burgas Airport achieved growth
remaining months showed declining passenger numbers. The main
of 4.2 % compared to the previous year. The reason for the higher
reason was declining passenger numbers at Air Berlin.
Airports with a Fraport share of at least 50 % 1)
Fraport share
in %
Passengers 2) Cargo (air freight and air mail in m. t.)
Movements
2013
Change in %
over 2012
2013
Change in %
over 2012
2013
Change in %
over 2012
Frankfurt
Antalya
Lima
Burgas
Varna
Group
100.00
58,036,948
51.00/50.00 3)
26,715,971
70.01
60.00
60.00
14,913,314
2,480,099
1,319,240
103,465,572
0.9
7.1
11.9
4.2
8.0
4.1
2,094,607
n. a.
296,517
2,625
35
2,393,784
1.4
n. a.
1.0
15.1
5.5
1.3
472,692
169,488
153,122
18,447
11,516
825,265
1) In addition, Fraport holds a 100 % share in the operating company of the new Dakar Airport, which is currently under construction.
2) Commercial traffic only; in + out + transit.
3) Proportionate consolidation, 51 % voting rights and 50 % equity share.
–2.0
6.4
3.2
–2.2
7.2
0.7
Table 21
Minority-owned airports or airports under management contracts 1)
Fraport share
in %
Passengers 2) Cargo (air freight and air mail in m. t.)
Movements
2013
Change in %
over 2012
2013
Change in %
over 2012
2013
Change in %
over 2012
Delhi
Xi’an
Cairo
St. Petersburg
Hanover
Total
10.00
24.50
0.00
35.50
30.00
36,712,455
26,045,593
13,577,713
12,854,366
5,234,909
94,425,036
7.3
11.2
–7.7
15.2
–1.0
6.4
595,775
178,876
n. a.
n. a.
14,666
789,317
6.3
2.3
n. a.
n. a.
–7.6
5.1
309,074
225,099
142,251
137,480
76,060
889,964
1) Without traffic figures for the airports in Riyadh und Jeddah (management contracts). Those figures were not available until the editorial deadline.
2) Commercial traffic only; in + out + transit.
1.3
10.7
–0.3
9.4
–5.1
3.8
Table 22
Consolidated Financial StatementsGroup Management ReportFraport Annual Report 2013
4 8
Group Management Report / Economic Report
Comparison with the forecasted development
As a result of the decline in construction activity, other internal work
In comparison to the outlook for fiscal year 2013, the passenger
capitalized declined from € 44.0 million to € 35.1 million (– 20.2 %).
traffic in particular at the Frankfurt site slightly exceeded expectations
Other operating income fell mainly due to lower releases of provi-
(outlook 2013: at approximately the level of 2012). The reasons for
sions, from €55.8 million to € 34.3 million (– 38.5 %).
the deviation were essentially the good booking situation during the
summer months and capacity increases by the airlines during the last
At € 2,631.4 million total revenue achieved an increase of € 89.1 million
months of the fiscal year. With a growth rate of 1.4 %, cargo tonnage
or 3.5 %. When adjusted for the application of IFRIC 12, this was
also moderately exceeded the forecast of stagnation or a slight rise.
€ 52.1 million above the corresponding value of the previous year, at
The Group airports in which Fraport holds an interest of at least 50 %
€ 2,565.7 million (+2.1 %).
developed positively, in line with the outlook.
Results of Operations
An increase in cost of materials mainly resulted at the Frankfurt site
from higher energy supply services and utilities related to the first-time
full-year operation of Pier A-Plus. Lower costs from land sales had the
opposite effect. In external business, especially the recognition of
Revenue and earnings development for 2013
capacitive capital expenditure in the Group companies, Twin Star and
In fiscal year 2013, the Fraport Group generated revenue of
Lima, in connection with the application of IFRIC 12, as well as higher
€ 2,561.4 million. Compared with the previous year, this corresponded
traffic-related concession fees in Lima, led to a rise in cost of materials.
to an increase of € 119.4 million, or 4.9 %. Adjusted for the recognition
In total, cost of materials increased by € 54.9million, to € 613.0 million
of capacitive capital expenditure, neutral on earnings, in the Group
(+9.8 %). When adjusted for the recognition of capacitive capital
companies Twin Star and Lima in connection with the application of
expenditure in the Group companies Twin Star and Lima this was at
IFRIC 12, revenue of € 2,495.7 million was above the corresponding
€ 547.3 million and therefore € 17.9 million above the adjusted previous
value for the previous year by € 82.4 million (+3.4 %).
year’s value (+3.4 %).
At the Frankfurt site, the increase in airport and infrastructure charges
Personnel expenses increased slightly by €3.9 million to €946.8 mil-
and a rise in retail revenue in connection with the operation of Pier
lion (+0.4 %) in the reporting period. Thus personnel expense per
A-Plus, in particular, led to higher revenue. Outside of Frankfurt, posi-
employee amounted to an average of €45.2 thousand (previous year:
tive development was recorded particularly in the Group companies
€45.0 thousand). The increase was mainly attributable to the collective
Lima, Antalya and Twin Star. In the previous year, high one-time
wage agreement in the public sector.
proceeds from the realization of land sales at the Frankfurt site resulted
in additional revenue.
Other operating expenses fell slightly from € 192.6 million to
€ 191.4 million (– 0.6 %) mainly due to the provision created in the pre-
vious year for noise abatement measures in the amount of € 10.5 million.
Higher assessment and consulting costs, among other things, had an
Group revenue and return on revenue
€ million
2,194.6
12.7
2,371.2
14.6
2,442.0
14.9
2,561.4
13.3
in %
opposite effect.
0
0
2010
2011
2012
2013
Group revenue
Return on revenue
Graphic 9
Fraport Annual Report 2013 Group Management Report / Economic Report
49
Group EBITDA and EBITDA margin
Group result and earnings per share
€ million
in %
€ million
710.6
32.4
802.3
33.8
848.7
34.8
880.2
34.4
271.5
2.86
250.8
2.62
251.5
2.59
235.7
2.40
0
0
0
2010
2011
2012
2013
2010
2011
2012
2013
in €
0
Group EBITDA
EBITDA margin
Graphic 10
Group result
Earnings per share (basic)
Graphic 11
Because of the positive revenue development, Group EBITDA during
Due to the significant deterioration of the financial result, the Group
the reporting period rose €31.5 million to € 880.2 million (+3.7 %).
EBT in 2013 declined from €364.1 million to €340.7 million (– 6.4 %).
Compared to the previous year, the EBITDA margin remained
With a tax rate of 30.8 % (previous year: 30.9 %), the Group result
at nearly the same level at 34.4 % (– 0.4 percentage points). When
declined compared to the previous year by €15.8 million to €235.7 million
adjusted for income and expenses from the recognition of capacitive
(– 6.3 %). The basic earnings per share at €2.40 were €0.19 below
capital expenditure outside of the Frankfurt site in conjunction with
the 2012 value (– 7.3 %).
IFRIC 12, this increased from 35.2 % to 35.3 %.
Comparison with the forecasted development
Depreciation and amortization in the amount of € 352.1 million
Compared to the forecasted development for 2013 (see also Group
(previous year: € 352.7 million) led to a Group EBIT of € 528.1 million.
management report 2012 from page 72 onwards), revenue and
When compared with the previous year, this corresponds to a growth
expenses of the Fraport Group have developed within the scope of
of 6.5 % (+€ 32.1 million).
expectations. While the slightly better-than-forecasted passenger de-
velopment at the Frankfurt site increased revenue, the development
The financial result in the amount of – € 187.4 million deteriorated in
of revenue in the Retail & Real Estate segment remained slightly below
2013 by € 55.5 million (previous year: – € 131.9 million). With a slight
expectations. Correspondingly, Group EBITDA increased within the
declining interest result (interest income and interest expenses) of
forecasted range from € 870 million to € 890 million. Lower deprecia-
– € 177.0 million (previous year: – € 174.1 million), the change in the
tion and amortization than expected, which resulted, among other
financial result resulted from the decline in the other financial result by
things, from the reduced capital expenditure, led to Group EBIT of
€ 27.3 million (2013: € 3.2 million compared with 2012: € 30.5 million)
€ 528.1 million, which was above the expected range of up to around
and a decline in the result from associated companies by € 25.3 million
€ 520 million. In conjunction with the forecasted deterioration of the
(2013: – € 13.6 million compared with 2012: € 11.7 million). While the
financial result, the Group result was below the level of fiscal year
negative development of the other financial result was primarily due
2012, as anticipated.
to higher proceeds in the previous year from the disposal of assets
in the course of financial asset management and associated foreign
currency translation effects, the decline in the result from associated
companies was, in particular, the result of negative foreign currency
translation effects in the Group company Pulkovo in St. Petersburg which
is accounted for using the equity method. Capitalized interest expenses
related to construction work had a reducing effect on the reported
interest expense in fiscal year 2013, with an amount of € 18.1 million
(previous year: € 28.2 million).
Consolidated Financial StatementsGroup Management ReportFraport Annual Report 2013 5 0
Group Management Report / Economic Report
Segments
Aviation
€ million
Retail & Real Estate
€ million
693.9
131.6
56.4
774.9
187.8
96.1
823.4
201.9
79.6
845.2
205.4
88.1
403.1
294.7
227.9
444.7
305.3
232.1
452.9
335.2
252.8
469.0
350.7
267.9
0
0
2010
2011
2012
2013
2010
2011
2012
2013
Revenue
EBITDA
EBIT
Graphic 12
Revenue
EBITDA
EBIT
Graphic 13
Revenue in the Aviation segment for the fiscal year 2013 was
With revenue of € 469.0 million, the Retail & Real Estate segment
€ 845.2 million, which corresponds to an increase of € 21.8 million
recorded an improvement of € 16.1 million in 2013 compared with
(+2.6 %) compared with the previous year. With a slight rise in the
the previous year figure (+3.6 %). The higher revenue was essentially
number of passengers, the increase in airport charges in Frankfurt by
caused by the positive developments in the areas of retail and real
an average of 2.9 % as of January 1, 2013 was the primary basis of the
estate. Mainly thanks to the opening of Pier A-Plus, the key performance
revenue growth. On the expense side, a provision for noise abatement
indicator “net retail revenue per passenger” improved from € 3.32 to
measures in the amount of € 10.5 million, formed in the second quarter
€ 3.60 (+8.4 %). In the previous year, high one-time proceeds from the
of 2012, led to a positive base effect for the fiscal year 2013. Adjusted
realization of land sales resulted in additional revenue. Non-staff costs
for this base effect, operating expenses increased during 2013 in par-
fell, primarily as a result of reduced expenses in connection with land
ticular as a result of having operated Pier A-Plus, which was opened in
sales, while higher expenses for energy supply services and utilities
October 2012, for an entire year for the first time.
acted in the opposite direction.
Despite a lower volume of internal work capitalized, segment EBITDA
Segment EBITDA increased by € 15.5 million to € 350.7 million (+4.6 %)
improved by €3.5 million to € 205.4 million (+1.7 %) as a result of the
as a result of the positive revenue development. Depreciation and
increase in revenue and the base effect resulting from the provision
amortization remained largely unchanged, leading to an equally
formed in the previous year. Lower depreciation and amortization in
considerable increase in segment EBIT of € 15.1 million (+6.0 %).
connection with lower capital expenditure led to a segment EBIT of
€ 88.1 million. Compared with the previous year, this signified growth
of € 8.5 million (+10.7 %).
Fraport Annual Report 2013 Group Management Report / Economic Report
51
Ground Handling
€ million
External Activities & Services
€ million
658.6
44.1
11.0
655.5
54.5
20.3
649.3
37.8
–1.1
656.2
38.2
–2.3
439.0
240.2
135.6
496.1
254.7
148.1
516.4
273.8
164.7
591.0
285.9
174.4
0
0
2010
2011
2012
2013
2010
2011
2012
2013
Revenue
EBITDA
EBIT
Graphic 14
Revenue
EBITDA
EBIT
Graphic 15
Despite lower maximum take-off weights at the Frankfurt site, revenue
The External Activities & Services segment realized an increase in revenue
in the Ground Handling segment in the past fiscal year rose slightly by
of € 74.6 million to € 591.0 million (+14.4 %) in the fiscal year 2013. At
€ 6.9 million to € 656.2 million (+1.1 %). With a slight passenger growth,
€ 37.0 million, a major part of the additional revenue was attributable
this increase was primarily the result of price effects for infrastructure
to increased capacitive capital expenditure in the Group companies
charges, as well as the positive revenue effects from the performance
Twin Star and Lima in connection with the application of IFRIC 12.
of winter services. The performance of winter services also brought
Adjusted for the application of IFRIC 12, segment revenue improved
a corresponding increase in non-staff costs and personnel expenses.
from € 487.7 million in the previous year to € 525.3 million (+7.7 %).
Conversely, the movement of employees into the passive phase of their
The positive development of revenue was essentially due to passenger
partial retirement, with a correspondingly higher number of claims
growth in the Lima, Antalya and Twin Star Group companies. Operating
on the provisions formed in previous years, as well as an optimized
expenses increased in particular due to the recognition of capacitive
deployment of personnel led to a reduction in personnel expenses.
capital expenditure in the Twin Star and Lima Group companies.
Adjusted for the application of IFRIC 12, operating expenses increased
Despite lower other operating income as a result of the negative base
primarily as a result of higher traffic-related concession fees in Lima.
effect from the release of a staff-related provision in 2012, segment
EBITDA rose in comparison with the previous year from € 37.8 million
Segment EBITDA improved by € 12.1 million to €285.9 million (+4.4 %),
to € 38.2 million (+1.1 %). Higher depreciation and amortization due,
mainly due to positive contributions from the Antalya, Lima and
among other things, to the utilization of Pier A-Plus led to a segment
Twin Star Group companies. At € 174.4 million, segment EBIT exceeded
EBIT of –€ 2.3 million. Compared with the previous year, this repre-
the figure of the previous year by € 9.7 million (+5.9 %).
sented a deterioration of € 1.2 million.
Consolidated Financial StatementsGroup Management ReportFraport Annual Report 2013 5 2
Group Management Report / Economic Report
Development of the key Group companies
the Group’s key companies with an interest of at least 50 % outside
The following table shows the pre-consolidation business figures for
Frankfurt:
Development of the key Group companies
€ million
Fraport share
Revenue 1)
EBITDA
EBIT
2013
2012
2011
2010
2013
2012
2011
2010
2013
2012
2011
2010
Antalya 2)
Lima
Twin Star
51 %/50 %
70.01 %
60 %
320.7
208.0
101.1
301.1
191.3
63.3
293.9
266.9
276.2
259.6
254.2
216.9
177.9
161.7
158.0
122.8
159.3
135.4
62.8
40.2
71.3
28.2
65.5
25.9
53.2
23.8
49.1
21.1
57.7
20.2
52.5
18.8
42.7
17.2
37.6
13.9
Table 23
1) Revenue adjusted by IFRIC 12: Antalya 2013: €320.7 million, 2012: €301.1 million, 2011: €293.9 million, 2010: €258.3 million.
Lima 2013: €193.8 million, 2012: €180.0 million, 2011: €146.0 million, 2010: €130.7 million.
Twin Star 2013: €49.6 million, 2012: €45.9 million, 2011: €43.7 million, 2010: €38.0 million.
2) Proportionate consolidation with 51 % voting interests and 50 % equity share. Values correspond to 100 % figures before proportionate consolidation.
Comparison with the forecasted development
Due primarily to the fact that earnings development of the Group
Compared with the forecast for the fiscal year 2013 (see also Group
company Antalya was stronger than expected, EBITDA and EBIT in the
management report 2012, beginning on page 72), the development
External Activities & Services segment were higher than the forecast
of the Fraport segments over the past fiscal year was as follows:
for the fiscal year 2013, which anticipated segment EBITDA and EBIT
remaining at approximately the same level as the previous year.
In the Aviation segment, both revenue and segment EBIT were slightly
higher than expected for the fiscal year 2013. This positive develop-
ment was due to the slightly better passenger development on the
Segment contributions to Group revenue
and EBITDA 2013
one hand and lower depreciation and amortization expenses on the
The significant increase in revenue in the External Activities & Services
other hand.
segment, which was among others also due to increased capacitive
capital expenditure in the Twin Star and Lima Group companies in
With a growth of 3.6 %, the increase in revenue in the Retail & Real
connection with the application of IFRIC 12, was also manifested in
Estate segment remained slightly below the expected “significant”
the fiscal year 2013 in the segment’s higher contribution to Group
increase that was forecasted for 2013. This more modest increase in
revenue (share 2013: 23.1 % compared to 2012: 21.2 %). Due to the
revenue was due to lower income from energy supply services on the
comparatively strong revenue development in the External Activities &
one hand and lower than expected revenue from the retail business
Services segment, the contribution to Group revenue in 2013 of the
on the other hand. Expenses resulting from land sales were also lower,
Aviation, Retail & Real Estate and Ground Handling segments was
meaning that both segment EBITDA and EBIT rose considerably, in
slightly lower (– 0.7, – 0.2 and – 1.0 percentage points, respectively).
line with the forecast.
The development of the Ground Handling segment was also in line
with the forecast, as a slightly more negative development in maximum
take-off weights was offset by a better passenger development.
Segment contribution to Group revenue 2013
Segment contribution to Group EBITDA 2013
in %
4
3
AVIATION
1 Aviation
1
2 Retail & Real Estate
3 Ground Handling
4 External Activities & Services
33.0
18.3
25.6
23.1
in %
4
3
2
2
1
AVIATION
1 Aviation
2 Retail & Real Estate
3 Ground Handling
4 External Activities & Services
23.3
39.9
4.3
32.5
Graphic 16
Graphic 17
Fraport Annual Report 2013
Group Management Report / Economic Report
53
With a share of 39.9 %, the Retail & Real Estate segment remained the
At €372.3 million, the greater part of capital expenditure for property,
driver behind the Group-wide EBITDA development in the fiscal year
plant and equipment related to Fraport AG (previous year: €578.4 million).
2013 (+0.3 percentage points). At 32.5 %, the External Activities &
Capital expenditure for property, plant and equipment was focused on
Services segment also increased its contribution to Group EBITDA (+0.2
expanding Frankfurt Airport’s capacity, settling the costs of Pier A-Plus
percentage points). Despite an absolute growth in EBITDA, the Aviation
and modernizing the terminals and taxiways. With regard to financial
and Ground Handling segments recorded a slightly lower contribution
assets, investments were primarily made in securities.
to Group EBITDA (– 0.5 and – 0.1 percentage points, respectively).
The following graphic shows capital expenditure for the fiscal year
2013 broken down by segment:
Asset and Financial Position
Capital expenditure
Capital expenditure by segments
The Fraport Group recorded capital expenditure of €661.9 million
during the fiscal year 2013 and thus €397.8 million less than in 2012
€ million
(previous year: €1,059.7 million). In the reporting period, €395.1 million
4
was used for property, plant and equipment (previous year: €602.9 mil-
lion), €186.6 million in financial assets (previous year: €400.1 million),
3
€14.4 million in capital expenditure for investment property
(previous year: €12.2 million) and €65.8 million in capital expenditure
for intangible assets and airport operating projects (previous year:
€44.5 million). Capitalized interest expenses related to construction
2
work amounted to €18.1 million in 2013 (previous year: €28.2 million).
AVIATION
1 Aviation
2 Retail & Real Estate
1
3 Ground Handling
297.5
192.7
66.3
4 External Activities & Services
105.4
Multi-year overview of capital expenditure
€ million
Airport operating projects
Intangible assets
Property, plant and equipment
Investment property
Financial assets
Total
2013
57.1
8.7
395.1
14.4
186.6
661.9
2012
39.1
5.4
602.9
12.2
400.1
2011
51.1
10.0
876.1
62.6
440.4
1,059.7
1,440.2
Graphic 18
2010
23.2
6.0
781.5
0.1
223.1
1,033.9
Table 24
Statement of cash flows
At €574.8 million, cash flow from operating activities (operating
cash flow) for the past fiscal year was up by €21.8 million compared
with the previous year (+3.9 %). This increase is primarily due to the
fact that less income tax was paid.
The lower cash outflow led to a positive free cash flow of €73.1 million.
Compared with the previous year, this represented an improvement
of €235.5 million (previous year: – €162.4 million).
Including cash outflows for investments in cash deposits and securities,
the cash flow used in investing activities in the past fiscal year was
Cash flow used in investing activities without investments in
€280.0 million (previous year: €779.2 million).
cash deposits and securities decreased from €736.2 million to
€492.8 million, primarily due to significantly lower capital expenditure
for property, plant and equipment.
Consolidated Financial StatementsGroup Management ReportFraport Annual Report 2013
5 4
Group Management Report / Economic Report
The cash flow used in financing activities of €255.1 million (previ-
In connection with the financing for the portion of the Antalya con-
ous year: cash inflow of €218.2 million) was mainly attributable to
cession attributable to Fraport, €105.3 million of bank deposits were
the change in loans. Loans taken up in 2012 resulted in a cash inflow,
subject to drawing restrictions as at December 31, 2013. Cash and
whereas in the past fiscal year loans were repaid, which resulted in
cash equivalents as at the statement of cash flows therefore came to
a cash outflow.
€167.4 million as at December 31, 2013 (previous year: €127.1 million).
The following table shows a reconciliation to the cash and cash equiva-
lents as shown on the consolidated statement of financial position:
Reconciliation to the cash and cash equivalents as at the consolidated statement of financial position
€ million
December 31, 2013
December 31, 2012
Cash and cash equivalents as at the consolidated statement of cash flows
Cash and cash equivalents with a duration of more than three months
Restricted cash
Cash and cash equivalents as at the consolidated statement of financial position
167.4
332.4
105.3
605.1
127.1
584.0
110.8
821.9
Table 25
Summary of the statement of cash flows and reconciliation to the Group liquidity (changes to the previous year)
€ million
127.1
(– 5.7)
574.8
(+21.8)
– 492.8
(+243.4)
212.8
(+255.8)
– 255.1
(– 473.3)
0.6
(– 1.7)
167.4 1)
(+40.3)
1,318.9
(– 217.1)
1,486.3
(– 176.8)
0
Cash and cash
equivalents as at
January 1, 2013
Cash flow
from operating
activities
Cash flow used in
investing activities
without investments
in cash deposits
and securities
Cash flow
from/used in
cash deposits
and securities
Cash flow used
in/from financing
activities
Foreign currency
translation effects
and change
in restricted cash
Cash and cash
equivalents as at
December 31, 2013
Short-term
realizable assets
Group liquidity
as at
December 31,
2013
1) The difference to cash and cash equivalents as at the consolidated financial position is due to the cash and cash equivalents
with a duration of more than three month and restricted cash.
Graphic 19
Asset and capital structure
mental protection requirements resulting from the zoning supplement
In comparison with December 31, 2012, total assets of the Fraport
decisions concerning commercial properties and wake turbulences
Group as at the 2013 balance sheet date decreased by €117.2 million
(see also the chapter titled “Significant Events” beginning on page 45).
to € 9,523.4 million (– 1.2 %), mainly due to lower current assets and
The increase in the item “other receivables and financial assets” was
non-current liabilities.
essentially the result of the capitalization of expenses in connection
with the obligation to make compensatory payments for outdoor
Non-current assets rose from € 8,140.8 million to € 8,220.9 million
living areas in the amount of € 48.3 million on the basis of the Act for
(+1.0 %) in particular as a result of the increase in the items “property,
Protection against Aircraft Noise (Gesetz zum Schutz gegen Fluglärm,
plant and equipment” and “other receivables and financial assets”.
FluLärmG). Current assets showed a significant decline of 13.2 % to
The increase in the item “property, plant and equipment” was mainly
€ 1,302.5 million. While the cash outflows for capital expenditure, the
due to capital expenditure activities at the Frankfurt site. The capital
dividend distribution and the payment of the annual Antalya conces-
expenditure at the Frankfurt site also included expenses in the amount
sion lowered the cash and cash equivalents, an increase in the item
of € 32.8 million, capitalized as production costs in connection with
“other receivables and financial assets”, due mainly to the reporting
the capacity expansion that was conducted on the basis of the supple-
date, caused an increase in current assets.
Fraport Annual Report 2013
Group Management Report / Economic Report
55
Structure of the consolidated financial position as at December 31
€ million
2013
2012
2011
2010
Assets
Liabilities
& Equity
Assets
Liabilities
& Equity
Assets
Liabilities
& Equity
Assets
Liabilities
& Equity
Non-current assets
Current assets
Shareholders’ equity
Non-current liabilities
Current liabilities
3,098.8
2,948.2
2,859.9
2,739.3
8,220.9
8,140.8
5,523.3
5,893.1
9,523.4
1,302.5
901.3
1,499.8
9,640.6
799.3
7,765.6
1,458.8
6,777.0
5,503.5
5,608.4
2,393.5
861.0
822.8
9,224.4
9,170.5
Graphic 20
Despite the dividend distribution, shareholders’ equity increased
Neither company acquisitions and disposals nor increases and de-
by € 150.6 million in comparison with the 2012 balance sheet date to
creases in shareholdings had a material effect on the development
€ 3,098.8 million (+5.1 %). The primary reason for the increase was the
of the asset and capital structure in the past fiscal year. Changes in
positive Group result of € 235.7 million. The equity ratio (shareholders’
inflation rates as well as the fair value of financial instruments also had
equity less non-controlling interests and profit earmarked for distribution)
no significant impact.
increased by 1.8 percentage points to 30.8 % (December 31, 2012:
29.0 %).
Financing analysis
Fraport’s finance management can basically be separated into that
Non-current liabilities fell from € 5,893.1 million to € 5,523.3 million
of Fraport AG, the Group companies in Germany and the Group
(– 6.3 %) in particular as a result of lower financial liabilities and other
companies abroad in which Fraport holds an interest of at least 50 %.
liabilities. While there was a drop in financial liabilities – despite a new
In 2013, financial management for Fraport AG continued to pursue
private placement in the amount of € 50.0 million – in connection with
balanced funding via operating cash flow and a broad diversified debt
the repayment of loans, other liabilities fell, essentially as a result of
financing base. At the end of the past fiscal year, the source of funds was
lower concession liabilities and lower negative market valuations of
split more or less equally across four financing sources: Bilateral loans
derivatives. In connection with the obligations resulting from the zoning
(24.5 %), bonds (23.3 %), loan financing from public loan institutions
supplement decisions and the obligation for compensatory payments
(21.1 %) and promissory note loans (31.1 %). Overall, the financing
of outdoor living areas, provisions were formed in the total amount
instruments at year-end 2013 had an average remaining term of 5.6 years
of € 81.1 million. Current liabilities increased by €102.0 million
with an average fixed interest period of 3.9 years.
to € 901.3 million (+12.8 %) mainly as a result of additional current
financial liabilities.
As at December 31, 2013, gross debt stood at € 4,461.7 million,
a €135.9 million decrease from the level on December 31, 2012
(– 3.0 %). After deducting the Group’s liquidity of € 1,486.3 million
(December 31, 2012: € 1,663.1 million), the net financial debt of
€ 2,975.4 million was 1.4 % higher in comparison with the 2012
balance sheet date. The gearing ratio attained a value of 101.3 %
(December 31, 2012: 104.9 %).
Consolidated Financial StatementsGroup Management ReportFraport Annual Report 2013 5 6
Group Management Report / Economic Report
To reduce interest rate risks from borrowing with floating interest rates,
The majority of the Group companies in Germany are integrated into
interest rate hedges were concluded in some cases for the financial
the Fraport AG cash pool, so that acquiring funding comparable to
liabilities relating to Fraport AG. The nominal value of these hedges
Fraport AG financial management is not necessary. The majority of
was around € 1,260 million at the end of the year 2013. Taking into
the foreign Group companies in which Fraport holds an interest of
account the hedged floating rate borrowing, the floating rate portion
at least 50 % mainly obtain standard market funding through project
of the gross debt of Fraport AG was nearly 40 % and the fixed portion
financing arrangements.
around 60 % (floating portion in the previous year: nearly 40 %, fixed
portion: around 60 %). The cost of debt after hedging measures was
The key features of the Group financing instruments with regard to
3.6 % (previous year: 3.6 %).
type, maturity, currency and interest rate structures are presented in
the following table:
Financial debt structure
Type
Promissory note loans
Public loans EIB/
WIBank
Bond issue
Private placement
Bilateral loans
Group companies abroad
in which an interest of at least 50 %
is held/project financing
Year of origin
Nominal volume
in € million
Maturity
Repayment
structure
Interest
Interest rate
2008
2009
2010
2012
2012
2013
2009
2009
2009
463
257
86
14
35
300
60
50
2015
2017
2014
2017
2020
2020
2022
2030
2020
2022
2028
860
2013 – 2019
end of term
end of term
floating
6-months-EURIBOR + margin
floating
6-months-EURIBOR + margin
end of term
mainly floating
6-months-EURIBOR + margin
end of term
mainly floating
6-months-EURIBOR + margin
end of term
end of term
floating
6-months-EURIBOR + margin
mainly fixed
6-months-EURIBOR + margin
end of term
end of term
ongoing repayment
during the term
of the loans
fixed
fixed
2.74 % p. a.
3.06 % p. a.
4.0 % p. a.
floating
6-months-EURIBOR + margin
800
150
2019
2029
end of term
end of term
fixed
fixed
2014 – 2028
mainly end of term
mainly floating
5.25 % p. a.
5.875 % p. a.
3/6/12-months-
EURIBOR + margin
2019 – 2022
ongoing repayment
during the term
of the loans
mainly floating
6-months-EURIBOR + margin,
6.88 % p. a.
Table 26
1993 – 2012
2007
1,046 (mainly
denominated
in €)
317
(mainly €,
also US-$)
The contractual agreements for the financial liabilities of Fraport AG
Independent project financing arrangements of Group companies with
included two customary non-financial covenants consisting of a
an interest of at least 50 % contain a series of credit clauses typical for
negative pledge and a pari passu clause. Only the loan financing
this type of financing. These clauses include inter alia regulations under
from public institutions included commonly accepted credit clauses
which certain debt coverage ratios and indicators for debt ratio and
regarding, among other things, changes in shareholder structure and
loan periods must be complied with. Failure to comply with the agreed
in the control of the company (so-called change-of-control clause).
credit clauses may lead to restrictions on the distribution of dividends
If these should have a proven negative effect on the borrowing capacity
and/or to the early redemption of loans or to the additional payment
of Fraport AG, the creditors have – above a certain threshold – the
of equity. Compliance with these criteria is examined on an ongoing
right to call the loans due ahead of time.
basis. As at the 2013 balance sheet date, these were complied with.
Fraport Annual Report 2013
Group Management Report / Economic Report
57
Liquidity analysis
Fraport AG has continued to pursue its strategy of broad diversifica-
As in the financing side, the liquidity analysis is to be separated into
tion of investments in corporate bonds in the fiscal year 2013. The key
the liquidity of Fraport AG, the Group companies in Germany and
characteristics of Fraport AG’s investment instruments in terms of type,
the foreign Group companies in which Fraport holds an interest of
maturity and interest structure are presented in the following table:
at least 50 %.
Asset structure of Fraport AG
Investment type
Promissory note loans
Overnight deposits
Time deposits
Bonds
thereof government bonds
thereof financials
thereof insurances
thereof industrials
Commercial paper
1) As a result of roundings, there can be discrepancies when summing-up.
Market value 1)
in € million
Maturity
in years
Interest rate
27.5
37.8
137.4
195.0
189.3
486.6
10.4
169.3
100.3
21.0
20.0
354.9
139.9
2.9
1.6
–
0.4
0.9
2.9
3.4
1.2
2.5
1.8
0.6
3.0
0.2
floating
fixed
fixed
fixed
floating
fixed
fixed
floating
fixed
fixed
floating
fixed
fixed
Table 27
As at December 31, 2013, industrial promissorry note loans, industrial
The ratings of all investment types used in financial management are
bonds and industrial commercial paper were distributed across the
presented in the graphic. Commercial paper is assigned to the long-
following industry sectors (market value: € 520.2 million):
term rating equivalent of the issuers.
Allocation of industrial assets
Rating structure of assets
0
20
40
60
in %
9
8
7
6
1
2
3
5
4
AVIATION
1 Food and beverages
2 Telecommunications
3 Automotives
4 Industrials
5 Chemicals
6 Transport and logistics
7 Infrastructure
8 Pharma and healthcare
9 Sectors < 5 %
13.6
12.5
12.2
10.5
10.3
9.7
5.8
5.4
20.0
in %
AAA
AA
A
BBB
Not rated
1.3
12.4
60.2
26.1
0.0
Graphic 21
Graphic 22
In 2013, no investments were made in non-rated bonds.
Consolidated Financial StatementsGroup Management ReportFraport Annual Report 2013
5 8
Group Management Report / Economic Report
As part of asset management, a yield of over 1 % was realized with the
As it is partly subject to drawing restrictions arising from the conditions
Fraport AG securities portfolio. The cost of carry, which is calculated
stipulated in the project financing agreements, it is not a part of the
using a (tiered-statement) maturity-matching principle, was 0.27 %
asset management at Fraport AG.
(€3.2 million) as at December 31, 2013. Those Group companies that
are included in the cash pool of Fraport AG do not require their own
Balanced finance structure at the balance sheet date
asset management strategy because any available liquidity is transfer-
The maturity profile of the Fraport Group’s financial debt showed a
red to Fraport AG and is therefore part of the asset management of
balanced medium-term repayment structure as at the balance sheet
Fraport AG. Liquidity in the foreign Group companies with an interest
date (debt in foreign currencies translated with the balance sheet
of at least 50 % is €250.7 million (previous year: €218.7 million).
date price).
Repayment profile as at December 31, 2013
€ million
1,486.3
294.1
507.3
499.3
413.4
561.1
1,172.9
234.7
19.2
411.3
323.8
0
Liquidity as at
December 31, 2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023++
Repayments (nominal value)
Graphic 23
The maturity profile of the floating financial debt taking into account
derivatives (nominal volume: about €1,430 million) is listed below:
Maturity profile of the floating financial debt and derivatives
121
79
489
246
401
229
381
235
501
166
563
261
137
185
0
0
263
0
0
30
€ million
0
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023++
Floating financial debt
Derivatives
Graphic 24
Based on the expected cash outflows as part of planned capital
still provides for these financial assets to be kept until the end of their
expenditure, liquid funds in the Fraport Group are invested mainly
term. If a temporary requirement for liquidity arises, Fraport AG can rely
on a short- to medium-term basis. Due to the delay in the start of
on different sources, such as available free credit lines or time deposits,
construction work on Terminal 3, an ongoing high level of liquidity is
among other things. Alternatively, the loan maturity can also be settled
expected. This liquidity will continue to be invested in accordance with
from the free cash flow from economic activity.
conservative investment requirements. The rolling liquidity planning
Fraport Annual Report 2013 Group Management Report / Economic Report
59
Significance of off-balance-sheet financial instruments
for the financial position
as forecasted, around €450 million. This was primarily due to the delay
in the start of construction of Terminal 3. As a result of the lower capital
Fraport focuses on the products presented in the “Financing analysis”
expenditure at the Frankfurt site and the volume of investments in air-
section for financing its activities. Off-balance-sheet financing instru-
port operating projects, which was at the lower end of the forecasted
ments are of no significance in Fraport’s financing mix.
range of €100 million to €150 million, the free cash flow developed
Rating
In light of Fraport’s always very healthy liquidity supply combined with
significantly better than expected (forecast 2013: improvement, but
still negative; value 2013: €73.1 million).
its comfortable portfolio of free, approved credit lines, there has not
Contrary to expectation, total assets also declined, mainly as a result
been a need for an external rating so far.
of higher loan repayments than planned. In connection with this, the
Comparison with the forecasted development
at the end of the fiscal year 2012. As a result of the positive develop-
Compared with the forecast for the fiscal year 2013 (see also Group
ment of the free cash flow, net financial debt rose more slowly than
Management Report 2012, beginning on page 72), the asset and
shareholders’ equity and not, as expected, more quickly. This meant
financial position showed the following deviations: Capital expenditure
that the gearing ratio was also lower than forecasted at the end of the
in the fiscal year at the Frankfurt site was below €400 million and not,
fiscal year (forecast 2013: approximately 110 %; value 2013: 101.3 %).
equity ratio was also above and not, as forecasted, below the value as
Value Management
Development of the value added 2013
€ million
Fraport Group
Aviation
Retail & Real Estate
Ground Handling
External Activities &
Services 1)
2013
2012
2013
2012
2013
2012
2013
2012
2013
2012
EBIT
Fraport assets
528.1
496.0
88.1
79.6
267.9
252.8
5,545.3
5,152.3
2,208.0
2,045.4
1,787.8
1,636.2
Costs of capital before taxes
Value added before taxes
ROFRA
526.8
1.3
9.5 %
489.5
6.6
9.6 %
209.8
194.3
– 121.7
– 114.7
169.8
98.1
155.4
97.4
– 2.3
584.1
55.5
– 57.8
– 1.1
549.0
52.2
– 53.3
159.9
175.2
1,143.2
1,118.6
108.6
51.3
106.3
68.9
4.0 %
3.9 %
15.0 %
15.5 %
– 0.4 %
– 0.2 %
14.0 %
15.7 %
1) EBIT and Fraport assets are adjusted by the results from associated and other investments allocated to the segment.
As a result of the adjustment on segment level, there can be discrepancies when summing-up to the Group level.
In the fiscal year 2013, the Fraport Group generated positive value
Group value added before taxes and ROFRA
added of €1.3 million (previous year: €6.6 million). The value added
€ million
of the Aviation segment declined from – €114.7 million to – €121.7 mil-
lion. This was due mainly to the significant increase in Fraport assets,
and a resulting increase in the cost of capital before taxes, which was
mainly related to the utilization of Pier A-Plus for an entire year for the
first time. The value added of the Ground Handling segment declined
from – €53.3 million to – €57.8 million due to the decline in EBIT de-
velopment. There was a decrease in the value added by the External
Activities & Services segment from €68.9 million to €51.3 million. This
0
49.0
10.7
74.1
11.2
6.6
9.6
1.3
9.5
Table 28
in %
9.5
was a result of negative foreign currency translation effects from the
2010
2011
2012
2013
Group company Pulkovo, which is accounted for using the equity
method. The Retail & Real Estate segment increased its value added
from €97.4 million to €98.1 million. This increase was due to the seg-
ment’s disproportionately higher EBIT development compared with
the cost of capital before taxes. At 9.5 %, the Fraport Group’s ROFRA
was equal to Fraport’s WACC of 9.5 %.
Group value added before taxes
ROFRA
Graphic 25
Consolidated Financial StatementsGroup Management ReportFraport Annual Report 2013
6 0
Group Management Report / Economic Report
Comparison with the forecasted development
Punctuality rate
There were no differences in the fiscal year 2013 compared with the
In the past fiscal year, the additional capacity from Runway Northwest
forecasted development of Group and segment value added (see
and terminal extension A-Plus continued to support the punctuality
also Group Management Report 2012, beginning on page 72). As
rate. With a punctuality rate of 82.3 %, the strong performance of the
expected, Group value added in 2013 was lower than in the fiscal year
previous year was exceeded by an additional 2.0 percentage points
2012. While the Retail & Real Estate and External Activities & Services
(previous year: 80.3 %). Compared to fiscal year 2012, virtually all
segments continued to make positive value added as forecasted, the
months showed a positive trend. Only the months of January and
Aviation and Ground Handling segments recorded negative value
March 2013, strongly affected by the weather, recorded a significantly
added.
lower punctuality rate of 76.8 % and 78.2 % respectively (previous year:
Non-financial Performance Indicators
Customer satisfaction and product quality
Global satisfaction
As a result of the measures of the “Great to have you here!” service
initiative taken in the past fiscal year (see also chapter titled “Strategy”
beginning on page 29) global satisfaction of passengers at the Frankfurt
site matched the previous year’s level of 80 %, with rising passenger
numbers. In this context, the perceived quality ratings for internet
availability developed in particular positively, even if potential still
exists for improvement. At the Antalya site, customer satisfaction was
0.7 percentage points above the previous year at 79.1 % (previous year:
78.4 %). The airport in Lima again achieved a high level of satisfied
passengers of 98.5 % (previous year: 95.0 %). The level of satisfaction
at the airports in Varna and Burgas improved from 83.7 % to 86.5 %.
84.0 % and 85.8 % respectively).
Punctuality rate at Frankfurt Airport 1)
in %
2013
2012
2011
2010
65.0
70.0
75.0
80.0
85.0
82.3
80.3
74.5
78.8
1) Figures according to IATA definition.
Graphic 27
Baggage connectivity
To ensure a high level of baggage connectivity, ongoing measures
Global satisfaction at Frankfurt Airport
were carried out together with airlines in Frankfurt in the past fiscal
65
70
75
80
85
in %
2013
2012
2011
2010
year. As part of the dialog campaigns, in which operating departments
of Deutsche Lufthansa, among others, were involved, ideas were
collated in order to achieve a further improvement of the high level
of connectivity. In the past fiscal year, connectivity at the Frankfurt site
amounted to 98.4 % and was therefore 0.2 percentage points above
the previous year’s figure.
80
80
77
Baggage connectivity at Frankfurt Airport
70
in %
Graphic 26
97.0
97.5
98.0
98.5
99.0
2013
2012
2011
2010
98.4
98.2
98.6
98.1
Graphic 28
Fraport Annual Report 2013 Group Management Report / Economic Report
61
Equipment availability rate
Employee safety and health management
At 94.8 %, the equipment availability rate in the past fiscal year was
In connection with employee safety measures taken, the total num-
lower than the previous year level of 95.0 %, primarily as a result of
ber of work accidents in the 2013 fiscal year fell from 1,445 to 1,346
the lower availability of elevators (average annual availability of 95.0 %
(– 6.9 %).
compared to 95.8 % in the previous year). In contrast, escalators avail-
ability improved considerably from 91.0 % in 2012 to 92.2 % in 2013.
Total number of work accidents
Equipment availability rate at Frankfurt Airport
0
500
1,000
1,500
in %
2013
2012
2011
2010
85.0
90.0
95.0
100.0
2013
94.8
2012
95.0
2011
97.7
2010
98.7
Graphic 29
1,346
1,445
1,475
1,601
Graphic 31
Attractiveness as an employer
Employee satisfaction
Comparison to the forecasted development
As Fraport has applied GAS 20 to the 2013 consolidated financial
statements for the first time, a forecast is made for the non-financial
performance indicators for the first time for fiscal year 2014.
The environment in which last year’s employee survey took place was
dominated by a high degree of uncertainty with regard to traffic devel-
opment at Frankfurt Airport and amendments to internal processes,
Employees
particularly at the Frankfurt site. Due to the unfavorable conditions,
overall employee satisfaction declined from the average grade of
Development of headcount
2.76 in the 2011 fiscal year to an average grade of 3.02 in 2013. The
Compared with the previous year, the average number of employees
negative trend was magnified due to a statistical effect: in 2013, two
(employees excluding apprentices and employees on leave) of the
additional Group companies participated in the survey, compared to
Fraport Group in 2013 remained largely constant at 20,947 (previ-
2011. Employee satisfaction at these companies received a comparably
ous year: 20,963). In Germany, there was an increased demand for
low rating. When adjusted for these, the index value would be at 2.93.
personnel at the Frankfurt site, in particular in the Group company
Employee satisfaction
Average grade
4.0
3.0
2.0
2013
2012 1)
2011
2010
APS Airport Personal Service (+223 employees). This was due to the
performance of winter services and the positive traffic development
in the second half of 2013. In addition, the number of employees in
the Group company FraCareServices also increased by 42 employees
due to an increase in client care as well as the fact that Pier A-Plus
was operated for an entire year for the first time. The reduction in
headcount at Fraport AG (– 310 employees) was attributable, among
other things, to the shifting of employees to the Group companies
FRA - Vorfeldkontrolle and FRA - Vorfeldaufsicht. As of July 1, 2013, the
employees of the Group company FRA - Vorfeldaufsicht were reinte-
grated into Fraport AG. Outside Germany, the headcount decreased,
in particular at the Group companies Lima (– 54 employees) and Twin
Star (– 42 employees).
3.02
2.76
2.94
1) In connection with evaluating the results of the 2011 employee survey
and implementing the resulting improvement proposals, no employee
satisfaction survey was carried out in the 2012 fiscal year.
Graphic 30
With regard to permanent staff, the staff turnover rate of 9.9 % was
slightly higher than the rate of 9.7 % in the previous fiscal year.
Consolidated Financial StatementsGroup Management ReportFraport Annual Report 2013 6 2
Group Management Report / Economic Report
Average number of employees
Fraport Group
thereof Fraport AG
thereof Group companies
thereof in Germany
thereof abroad
Employees as at the balance sheet date 1)
1) Figures according to Global Reporting Initiative (GRI).
Average number of employees per segment
Aviation
Retail & Real Estate
Ground Handling
External Activities & Services
2013
20,947
10,992
9,955
19,009
1,938
21,986
2013
6,194
648
9,017
5,088
2012
20,963
11,302
9,661
18,939
2,024
22,276
2012
6,298
629
8,924
5,112
Change
Change in %
– 16
– 310
294
70
– 86
– 290
– 0.1
– 2.7
3.0
0.4
– 4.2
– 1.3
Table 29
Change
Change in %
– 104
19
93
– 24
– 1.7
3.0
1.0
– 0.5
Table 30
Whereas the reduced number of employees in the Aviation segment
Additional key figures for diversity developed as follows in the fiscal
was due primarily to falling employment within Fraport AG, the slight
year 2013: The average age of Group employees increased from 41.2
growth in the Retail & Real Estate segment was essentially the result of
to 41.8 years, despite a high number of trainees which remained
an increase in the number of employees in Fraport AG. In the Ground
nearly constant at 359 (previous year: 381). 19.7 % of employees had
Handling segment, the number of employees increased in particular
foreign citizenship (excluding German citizens with an immigration
as a result of the previously mentioned demand for personnel in the
background) (previous year: 20.1 %). The percentage of persons with
Group companies APS Airport Personal Service and FraCareServices. In
major disabilities reached 7.5 % on a Group-wide basis (previous year:
the External Activities & Services segment, the number of employees
7.3 %). The number of training days fell considerably in the fiscal year
fell primarily because of decreased employment in the Group com-
2013 from an average of 5.7 days in the previous year to 3.8 days. The
panies Lima and Twin Star.
reason for the decline in training days was, among other things, lower
turnover and thus fewer newly-hired employees in training-intensive
Development in personnel structure
positions, such as aviation security.
Fraport values the diversity of its employees. This diversity helps the
Group to better understand the concerns of its customers, develop
innovative solutions and remain competitive in a global economy.
Employees and percentage of women as at December 31
Diversity management is therefore a central component of its personnel
strategy. It is based on a Group agreement that includes among others
the establishment of principles of anti-discrimination, advancement
of women into management positions and diversity. These principles
form part of recruitment decisions and training measures.
The percentage of women, one of the main key figures for diversity,
was at 23.2 % in fiscal year 2013 and was therefore virtually unchanged
to the previous year’s value of 23.4 %. The reason for the slight decline
in the percentage was, among other things, the lower number of
employees Group-wide with a simultaneous increase in headcount
0
20,905
23.2
21,445
23.3
22,276
23.4
21,986
23.2
2010
2011
2012
2013
in %
0
for the physically work-intensive Ground Handling segment. At a
Employees
Percentage of women
Graphic 32
level of 27.6 % (previous year: 29.4 %), the percentage of women in
management positions exceeded the aforementioned Group-wide
percentage of women again in 2013.
Fraport Annual Report 2013
Group Management Report / Economic Report
63
Research and Development
policy of the European and American central banks and the associated
low level of interest rate for savings also increased the attractiveness of
Fraport, as a service-sector group, does not engage in research and
shares as financial investments. In this market environment, the German
development in the strict sense, so further disclosures in accordance
leading index DAX showed notable growth of 25.5 %, ending the year
with IAS 38.8 does not apply. For Fraport, however, improvement
at 9,552 points and thus at the highest closing level in its history. The
proposals and innovations from employees serve as factors to improve
MDAX, in which the Fraport share is included, also closed the fiscal
the quality of the Group’s own products and thus to increase customer
year 2013 with a historical year-end level of 16,574 points, a rise of
satisfaction and retain competitiveness (see also chapter titled “Risk
39.1 % compared to the fiscal year 2012.
and Opportunities Report” beginning on page 67).
The Fraport share ended the fiscal year 2013 with a price of € 54.39
While Fraport consistently utilizes its own employees’ potential within
and an increase of 23.8 % compared to the previous year’s closing
the framework of its Group-wide idea management, the Group specifi-
price of € 43.94. Taking into account the dividend payment on June 3,
cally carries out networking within innovation management, among
2013 of €1.25 per share, the annual performance of the share was
other things, in the sense of “open innovation”, with companies in its
at 26.6 %. The Fraport share therefore developed at around the level
own value-added chain as well as “best practice” companies in other
of the DAX, but clearly underperformed the MDAX. While the share
sectors. In this way, Fraport ensures that trends are spotted early on
closed the first quarter almost unchanged at € 43.73 (– 0.5 %), the
and transferred to the company. Product potential outside the airport
price improved in the second quarter by 6.3 % to € 46.48 and by
site and the delivery of existing expertise to new customer groups is
another 11.6 % in the third quarter of 2013 to € 51.88. The reasons
also examined.
for the positive development in the second and third quarter were
mainly a more favorable market environment and the positive traffic
In the 2013 fiscal year, innovation management focused, in particular,
development at the Frankfurt site during the summer season. In the
on passenger services and mobility. Here, especially, Fraport was able
final quarter, the Fraport share reached its highest price in 2013 on
to set the tone by continuing the PASS project (Personalized Assistance
October 30 of € 57.41. Its lowest price was recorded on January 16
System and Services for Mobility into Advanced Age) and awarding the
at € 42.33. However, due to profit-taking and uncertainties related to
Group innovation prize. The “idea day”, which was hosted for the first
the coalition negotiations in Hesse, the Fraport share fell slightly as the
time in 2012, took place again in the past fiscal year and thus became a
fourth quarter continued and closed the fiscal year at € 54.39.
core component of Group idea management. Overall, 1,125 ideas were
submitted and 74 ideas implemented in the past fiscal year (previous
The market capitalization of Fraport at the end of the year was
year: 817 ideas, 85 implementations).
€ 5.0 billion (previous year: € 4.1 billion) and ranked 15th among the
Share and Investor Relations
50 MDAX shares (previous year: 12th place). Measured by traded stock
exchange volume (XETRA trade), the Fraport share was ranked 42nd
(previous year: 31st place). With an average daily trading volume of
118,554 shares, the trading volume of the Fraport share fell by 24.3 %
Share performance from January 1 to December 31, 2013
in 2013 compared to the previous year’s level of 156,604 shares. The
The stock exchange in 2013 was shaped by more positive economic
share was therefore less volatile than most of the MDAX securities and
development, compared to 2012, and a more optimistic assessment of
reflected the generally lower trading volume.
the future economic situation. The continued expansive money market
Consolidated Financial StatementsGroup Management ReportFraport Annual Report 2013 6 4
Group Management Report / Economic Report
Development of the share 2013
Opening price in €
Closing in €
Change 1)
Change in % 2)
Highest price in € (daily closing price)
Lowest price in € (daily closing price)
Average price in € (daily closing prices)
Q1 2013
Q2 2013
Q3 2013
Q4 2013
2013
2012
43.94
43.73
– 0.21
– 0.5
45.55
42.33
44.13
43.73
46.48
2.75
6.3
47.53
43.00
45.11
46.48
51.88
5.40
11.6
52.40
46.19
49.43
51.88
54.39
2.51
4.8
57.41
52.50
54.60
43.94
54.39
10.45
23.8
57.41
42.33
48.38
38.00
43.94
5.94
15.6
49.37
38.41
44.70
Average trading volume per day (number)
132,650
155,378
96,421
89,318
118,554
156,604
Market capitalization in € million
(Quarterly-/annual closing prices)
4,033
4,289
4,788
5,020
5,020
1) Change including dividend payment: Q2 2013: +€ 4.00, FY 2013: +€ 11.70, FY 2012: +€ 7.19.
2) Change including dividend payment: Q2 2013: +9.1%, FY 2013: +26.6 %, FY 2012: +18.9 %.
4,052
Table 31
The shares of the European competitors developed in 2013 as fol-
lows: Aéroports de Paris +41.3 %, Vienna Airport +41.9 % and Zurich
Airport +23.4 %.
Development of the Fraport share compared to the market and European competitors
in % (index base 100)
150
100
90
January 1, 2013
Fraport AG
DAX
MDAX
Aéroports de Paris
Vienna Airport
Zurich Airport
Source: Bloomberg
December 31, 2013
Graphic 33
Fraport Annual Report 2013
Group Management Report / Economic Report
65
Multi-year overview of the Fraport share
The following table shows the key information about the Fraport share:
Fraport share key figures and data
Fraport AG capital stock
Total number of shares as at December 31
Number of floating shares 1) as at December 31
Number of floating shares
(weighted average of period under review)
Absolute share of capital stock
Annual performance (including dividend)
Beta relative to the MDAX
Earnings per share (basic)
Earnings per share (diluted)
Price-earnings ratio
Dividend per share 2)
Profit earmarked for distribution
Dividend yield as at December 31 2)
ISIN
Security identification number (WKN)
Reuters ticker code
Bloomberg ticker code
€ million
number
number
number
per share, €
%
€
€
€
€ million
%
1) Total numbers of shares as at the balance sheet date less treasury shares.
2) Proposed dividend (2013).
2013
2012
2011
2010
922.9
92,289,654
92,212,289
922.1
92,211,756
92,134,391
919.6
91,955,867
91,878,502
919.2
91,915,588
91,838,223
92,173,637
92,012,909
91,858,474
91,808,388
10.00
26.6
0.80
2.40
2.39
22.7
1.25
115.4
2.3
10.00
18.9
0.95
2.59
2.58
17.0
1.25
115.5
2.8
10.00
– 16.8
0.88
2.62
2.60
14.5
1.25
115.4
3.3
10.00
33.2
0.82
2.86
2.85
16.5
1.25
115.6
2.7
DE 000 577 330 3
577330
FRAG.DE
FRA GR
Table 32
Development of the Fraport share compared to the market and European competitors as a multi-year overview
in % (index base 100)
240
100
60
January 1, 2010
January 1, 2011
January 1, 2012
January 1, 2013
December 31, 2013
Fraport AG
DAX
MDAX
Aéroports de Paris
Vienna Airport
Zurich Airport
Graphic 34
Source: Bloomberg
Consolidated Financial StatementsGroup Management ReportFraport Annual Report 2013
6 6
Group Management Report / Economic Report
Development in shareholder structure
There were no changes to Fraport AG’s shareholder structure in the
Dividend for the fiscal year 2013
(recommendation for the appropriation of profit)
past fiscal year. As at December 31, 2013, the shareholder structure
The Executive Board intends to recommend the same dividend as
adjusted to the current total number of voting rights was as follows:
the previous year of € 1.25 per share to the 2014 AGM. Compared to
Shareholder structure as at December 31, 2013 1)
for this purpose of € 115.4 million (previous year: € 115.5 million)
the share closing price in 2013 of €54.39, this would correspond to
a dividend yield of 2.3 % (previous year: 2.8 %). The profit earmarked
in %
6
5
4
3
1
2
would therefore – in relation to Fraport AG’s result for the year 2013 of
€1 73.8 million – correspond to a pay-out ratio of 66.4 % (previous year:
65.6 %) or – in relation to the Group result attributable to shareholders’
of Fraport AG of € 221.0 million – of 52.2 % (previous year: 48.5 %).
AVIATION
1 State of Hesse
31.37
2 Stadtwerke Frankfurt
am Main Holding GmbH 20.03
3 Deutsche Lufthansa AG
8.46
4 Lazard Asset
Management LLC
5 RARE Infrastructure
Limited
6 Free Float
Dividend per share and dividend yield 1)
in €
in %
1.25
2.7
1.25
3.3
1.25
2.8
1.25
2.3
3.16
3.06
33.92
Graphic 35
1) The relative ownership interests were adjusted to the current total
number of shares as at December 31, 2013, and therefore may
differ from the figures given at the time of reporting or from the
respective shareholders’ own disclosure. Interests below 3 %
are classified under “Free Float”.
As far as was known as at December 31, 2013, the Fraport shares held
2010
2011
2012
2013
0
0
in free float were distributed across the following countries:
Dividend per share
Dividend yield
Graphic 37
1) 2013: dividend proposal and thereof resulting yield.
Allocation of free float 1)
in %
9
1
AVIATION
1 Australia
2 USA
3 Canada
2
4 Germany
3
4
5
67
8
5 Great Britain
6 Norway
7 Denmark
8 Finland
18.8
10.3
4.5
4.0
3.5
1.8
1.7
1.3
9 Countries < 1 % and unknown
54.2
Investor Relations (IR)
In the 2013 fiscal year, Fraport’s IR activities again focused on proactive
communication with investors and analysts. In more than 300 one-on-
ones, the strategy and the current and forecasted business develop-
ment of the Fraport Group were explained to interested parties. The
focus remained on traffic developments at the Group sites as well as
the planning of Terminal 3 at the Frankfurt site. Other focal points
were Group capital expenditure, the development of free cash flow,
the impact on earnings connected to the at equity accounting of the
Group company Antalya from the 2014 fiscal year onwards and poten-
tial acquisition projects in the External Activities & Services segment.
1) Free float without shares of State of Hesse, Stadtwerke
Frankfurt am Main Holding GmbH and Deutsche Lufthansa AG.
Source: own estimates Fraport AG.
Graphic 36
The activities of the IR department in the past fiscal year were rounded
off by the AGM, an analyst conference on the publication of preliminary
full-year results, three conference calls regarding the additional quarterly
publications, the provision of current information on the IR homepage
www.meet-ir.com and investor meetings at the Frankfurt site.
Fraport Annual Report 2013
Group Management Report / Significant Events after the Balance Sheet Date / Outlook Report
67
Significant Events after the
Balance Sheet Date
Risk and Opportunities Report
The Fraport Group has a comprehensive, Group-wide risk management
and opportunities system, which makes it possible for Fraport to identify
There were no significant events for the Fraport Group after the balance
and analyze risks at an early stage, and to control and limit those risks
sheet date.
Outlook Report
using appropriate measures, as well as, take advantage of opportunities.
This results in the early identification of potential material risks that could
jeopardize the Fraport Group. Fraport regards risks as future develop-
ments or events that can have a negative impact on the achievement of
operational planning and strategic targets. Opportunities are regarded
as future developments or events that can lead to a positive forecast
General Statement of the Executive Board
deviation or strategic target deviation.
The expected growth of the global economy will have a positive impact
Risk strategy and targets
on Group-wide passenger development in the forecasted period. At
With the further development of Fraport, within the context of the
the Frankfurt site, the increase in airport and infrastructure charges in
integrated strategy and planning process, it is always ensured that
particular, as well as additional revenue in the Retail and Real Estate
the risks associated with the opportunities are in an appropriate
divisions, will also have a revenue-increasing effect. Furthermore, due
relationship to each other. This is ensured through comprehensive
to higher contributions from the Group companies Lima and Twin Star,
risks and opportunities management, which guarantees that risks and
the Executive Board is expecting a rise in Group EBITDA and EBIT. Due
opportunities are identified at an early stage, are evaluated, controlled
to a changed accounting standard, among others, the Group company
and monitored in a standardized manner and are transparently com-
Antalya, which has until now been proportionately consolidated in the
municated using systematic reporting.
Group, will as of the start of fiscal year 2014 be accounted for using
the equity method. Accordingly, this company’s result will only be
The following principles are derived from this objective:
recognized in the Group financial result, which will lead to a significant
1. Even as part of the strategic planning processes, a comparison is
change in the results for 2014.
made with the opportunities and risks strategy, which results from
the anticipated business development. This way, Fraport avoids
For the Group result, the Executive Board anticipates sustainable im-
risks that are not directly related to the original business purpose.
provement despite the difficulty in forecasting the financial result due
2. The centralized Risk Management unit is responsible for the imple-
to future changes in interest and currency exchange rates.
mentation and further development of the risk management system
and links this with the opportunities management process.
The Executive Board continues to examine opportunities for ongoing
3. Risks and opportunities management is a key function of the respective
optimization of the asset and financial position of Fraport Group. No
business, service and central units that are responsible for their business
significant risks that might jeopardize the Group as a going concern
processes; this involves material risks being managed using appropriate
are apparent. With regard to the external business, the objective of
measures and being reduced to an acceptable level, as well as actively
the Executive Board remains to expand this and to further improve
utilizing opportunities.
the existing portfolio with a focus on earnings. As they are difficult
4. Through standardized and comprehensive processes, early identi-
to predict, material acquisitions and disposals of businesses are not
fication, standardized analysis, centralized control and monitoring,
included in the forecasted period. The Executive Board continues to
as well as systematic and transparent reporting take place regarding
assess the financial situation in the forecasted period as stable.
all material risks and opportunities.
5. All employees are encouraged to actively become involved in risks
and opportunities management in their area of activity.
Consolidated Financial StatementsGroup Management ReportFraport Annual Report 2013 6 8
Group Management Report / Outlook Report
Risk managment system
Risk strategy
and objectives
Organization of risk management
Risk control and monitoring
Risk reporting
Risk analysis
Risk monitoring
> Definition of tasks and
responsibilities
> Monitoring by RMC and RMC office
Risk control
> Preventative and reactive measures
> Cost/benefit analysis
> Controlling of measures
> Internal risk reporting
> Risk reporting to Supervisory Board/
finance and audit committee
> Management report to capital market
Risk aggregation
> Qualitative determination of total
risk position (risk map)
> Reporting of material risks to
Executive Board
Documentation, risk management software
Risk identification
> Definition of risk areas
> Risk inventory: bottom-up and top-down
process
Risk evaluation
> Evaluation by impact level and
probability of occurrence (risk portfolio)
> Evaluation of scenarios
> Prioritization by material risks
Graphic 38
The Fraport Executive Board bears the overall responsibility for an
The risk management system is documented in a policy and closely
effective risk management system, through which comprehensive and
interlinked with the ICS. It follows the “COSO II” (Committee of the
standardized management of all material risks is ensured. In this con-
Sponsoring Organizations of the Treadway Commission) framework
text, it has approved the risk strategy and risk objectives for the Group.
and covers risks in the areas of strategy, operational business, financial
The Executive Board appoints the members of the Risk Management
reporting and compliance.
Committee (RMC), approves the rules of procedure for the RMC and
is the addressee for the quarterly reporting of relevance to the Group
Process-integrated and process-independent monitoring measures
and ad hoc reports in the risk management system.
form the elements of the internal monitoring system. The central Group
Internal Audit unit is integrated into the internal monitoring system of
The RMC is the highest executive body in the risk management system
the Fraport Group with process-independent audit activities.
below the Executive Board and is made up of Senior Managers from
the company’s operating and supporting units. The management of
PricewaterhouseCoopers Aktiengesellschaft Wirtschaftsprüfungsgesell-
the RMC has been transferred to the newly created Risk Management
schaft (PwC) has examined the risk early-warning system of Fraport AG
and Internal Control System department. The management of the RMC
within the context of the annual financial statement audit with regard
is responsible for the organization, maintenance and further develop-
to stock corporation law requirements. It fulfils all of the legal require-
ment of the Group-wide risk management and internal control system
ments that apply to such a system.
(ICS), as well as the regular updating and implementation of the risk
management and ICS policy in the Fraport Group. The RMC reports to
The Supervisory Board of Fraport AG has the function of supervising
the Executive Board on a quarterly basis immediately after its meetings.
the effectiveness of the internal control and risk management system
in accordance with Section 107 (3) of the AktG. This responsibility is
executed by the finance and audit committee of the Supervisory Board.
Fraport Annual Report 2013
Group Management Report / Outlook Report
69
Risk transfer through the purchase of insurance policies is controlled
rolling 24-month-period. However, this does not mean that the persons
by the Group company Airport Assekuranz Vermittlungs-GmbH.
responsible for assessing risks only analyze from a short-term perspec-
tive; possible infrastructural risks are in particular monitored in accord-
So far, the Fraport risk management system has only covered risks, not
ance with their long-term impact. During the evaluation process, the
opportunities. However, an opportunities consultation takes place
potential impact (= impact level) is divided into three categories: “low”,
quarterly within the context of the RMC meeting.
“medium” and “high”. The impact level is evaluated according to how
Risk management of Group companies
liquidity). Furthermore, qualitative factors, which could be important
The policy for the Fraport risk management system also includes rules
for Fraport’s reputation and which also determine the risks, are included
for Fraport Group companies, which are incorporated to a varying extent
in the analysis. The probability of occurrence for individual risks is also
in the risk management system depending on their importance for
divided into three categories: “low”, “possible” and “likely”.
the risks impact the relevant detection variable (EBIT, financial result or
the asset, financial and earnings position of Fraport. The separate
policy used for investments specifies the organizational structure and
The risk evaluation is conservative, i.e., the greatest possible impact for
process of the risk management system and commits the companies
Fraport is assessed. A distinction is made between a gross evaluation and
to the same risk reporting cycles and ad hoc reporting, as determined
net evaluation. The gross risk is the greatest possible negative (financial)
by Fraport AG.
impact prior to risk-minimizing measures. The net risk represents the
expected residual (financial) impact after initiation or implementation
Risk management process
of risk-minimizing measures.
The risk management process is comprised of the following steps. In
order to support the entire process, Fraport has introduced an integrated
Risks that jeopardize the company as an ongoing concern or risks that
risk management software solution.
exceed defined thresholds in relation to the potential level of (financial)
impact and the probability of their occurrence are considered to be
1) Identification and reporting of risks
“material” and these are reported to the finance and audit commitee,
Material risks are identified using various instruments primarily by the
the Executive Board as well as the RMC (see also the reporting matrix
operational business, service and central units of Fraport AG, as well
on page 70 of this report).
as the Group companies. The risk identification methods used range
from market and competition analysis, to the evaluation of customer
3) Risk control
surveys, information about suppliers and institutions, right through to
Risk officers are tasked with developing and implementing suitable
monitoring risk indicators from the regulatory, economic and political
measures to minimize and control risk. The risk officers must draft a
environment. Division Managers are responsible for the accuracy of
strategy and/or measures to deal with the risks identified, which can
the information received from their units, which is processed in the
also include the transfer of risk to a third party (through insurance poli-
risk management system. They are obligated to constantly monitor
cies, for example). The decision regarding the implementation of the
and manage risk areas and report on all risks in their divisions and their
relevant strategy and/or measures also considers the costs in relation
integrated investments to the Risk Management and Internal Control
to the effectiveness of potential risk-minimizing measures. The Risk
System department on a quarterly basis. Outside of regular quarterly
Management and Internal Control System department works closely
reporting, newly identified material risks must be immediately reported
with the risk officers in order to monitor the progress of risk-minimizing
on an ad hoc basis.
2) Evaluation of risks
measures and to evaluate their effectiveness from a Group perspective.
4) Risk aggregation and reporting
The systematic evaluation of risks determines the extent of the identi-
The risk management is intended to ensure a transparent presentation
fied risks and makes it possible to estimate the extent to which the
of the Fraport Group’s risk situation. For this, the Risk Management and
individual risks could jeopardize the corporate objectives and strategy
Internal Control System department aggregates the risk reports from
of the Fraport Group, or which risks will most likely, due to their nature,
the divisions and Group companies and provides these to the RMC
jeopardize the company’s existence. For this purpose, the financial
for assessing the risk situation using a “Risk Map”. Risks are reported to
impact (impact level or – if possible – a quantitative evaluation) and its
the Executive Board when they are classified from a net risk perspec-
probability of occurrence is ascertained by the responsible business,
tive as “material” according to systematic evaluation standards used
service and central units (= risk officers). The reference basis is the
Group-wide.
Consolidated Financial StatementsGroup Management ReportFraport Annual Report 2013 7 0
Group Management Report / Outlook Report
In the event of significant changes to previously reported risks or newly
Twice a year, the Executive Board reports the “material” risks, including
identified “material” risks, reporting also takes place outside of the
their changes, in the finance and audit committee of the Supervisory
regular quarterly reporting, as ad hoc reporting.
Board. The following graphic shows the addressees of the risk reporting
depending on the net evaluation of the risks:
Reporting matrix
Likely
≥ 50 %
Possible
≥ 10 % – 50 %
Low
up to 10 %
e
c
n
e
r
r
u
c
c
o
f
o
y
t
i
l
i
l
b
a
b
o
r
P
Strategic business,
service and central units/
Group companies
Finance and audit committee/
Executive Board, Risk Management
Committee
Finance and audit committee/
Executive Board, Risk Management
Committee
Strategic business,
service and central units/
Group companies
Strategic business,
service and central units/
Group companies
Low
≥ €0.5 million
Impact level
Risk Management Committee
Finance and audit committee/
Executive Board, Risk Management
Committee
Risk Management Committee
Finance and audit committee/
Executive Board, Risk Management
Committee
Medium
≥ €2.5 million
High
≥ €10.0 million
Graphic 39
This process ensures the early detection of risks that could jeopardize
Board and Supervisory Board. The relevant Group companies are
the Fraport Group as a going concern.
included on the basis of legal requirements, as well as on the basis of
qualitative and quantitative risk assessment criteria.
An integral component of Fraport’s risk management system is monitor-
ing financial risks, whereby the presentation of financial instruments
Furthermore, an integrated risk management software has been
overall and in particular hedging transactions in accounting, are moni-
introduced to record all event-related risks and material process risks.
tored and controlled. This process is described in the financial risks
This creates more comprehensive transparency regarding the material
section (“risk report”). At Fraport, this process represents a subsection
risks existing in the Group, and establishes a closed “risk workflow”.
of the accounting-related internal control system.
Further development of the risk management system
in 2013
ment area, particularly the conception of a refined Group-wide risk
catalog, the further development of the risk management and ICS
At the beginning of 2013, the existing risk management system was
policy and the further development of standardized Group evalua-
For 2014, further developments are also planned in the risk manage-
linked to the internal control system (ICS) and combined with the com-
tion methods.
pliance management system into an integrated system. Furthermore, a
centralized ICS organization was established, the primary tasks of which
include ensuring standardized methodology and reporting, as well as
Accounting-related internal control system in accordance
with Section 315 (2) no. 5 of the HGB
Group-wide standardization of the ICS. The central ICS organization
With regard to the Group accounting process, Fraport regards the
provides support with the implementation of the ICS and determines
internal control and risk management system as a process that is
annually, within the context of a scope procedure, which Group com-
embedded in the Group-wide internal control and risk management
panies should be included in a documentation and self-assessment
system. Fraport’s Group accounting system covers the processing of
process (Control Self-Assessment) regarding the effectiveness of the
transactions, records for the documentation of assets and liabilities and
main controls and the subsequent annual reporting to the Executive
processes for the consolidation of the separate financial statements of
Fraport Annual Report 2013
Group Management Report / Outlook Report
71
parent/subsidiary companies and joint ventures and for the inclusion
Quality assurance is carried out by Fraport Group Accounting for
of associated companies and the recording of the required information
complex accounting issues or basic questions, as well as at local com-
for the disclosures in the Group notes and Group management report.
panies included in the consolidated financial statements.
The company applies principles, processes and measures aimed at safe-
guarding the effectiveness and compliance of the Group’s accounting
The consolidated financial statements are prepared by Fraport AG
system, which Fraport designed to conform to “COSO” standards, in
Group Accounting. The reporting process for the consolidated financial
an effort to ensure that the recognition, measurement and presenta-
statements is laid down in a schedule detailing each individual step,
tion of assets and liabilities is in line with the legal guidelines and the
including deadlines and responsibilities. Group Accounting monitors
principles of proper accounting.
progress, reporting deadlines and the completeness of the Group
Group accounting at Fraport is generally organized on a local basis.
reporting process.
The reconciliation of the local individual financial statements of the
In the run-up to the preparation of the consolidated financial state-
parent company and subsidiaries (trade balance sheet I) to the indi-
ments, a Group questionnaire is sent to all consolidated companies
vidual financial statements prepared in accordance with Group-wide
in order to identify any issues relevant to the accounting process in
accounting and valuation methods (trade balance sheet II) is done
good time. The consolidated companies are also questioned about
locally at the respective companies. In individual cases, the bookkeeping
any events after the balance sheet date so that these can be recorded
and preparation of financial statements for Group companies at the
in detail.
Frankfurt site is carried out by the accountants of the Group parent
company Fraport AG within the framework of service agreements. In so
Liabilities, expenses and income are consolidated and information
doing, separation on an organizational and system level from the parent
relevant to segment reporting is processed in the SAP BPC system.
company Fraport AG is ensured. To ensure consistent Group-wide
Prior to consolidating liabilities, internal balances are reconciled. Capital
accounting policies, Fraport has developed a policy on IFRS Group-
consolidation, including the updating of the valuation of investments
accounting principles, on the basis of which the companies included
in associated companies, the elimination of intercompany profits and
in the consolidated financial statements perform the reconciliation
losses and the preparation of the statement of cash flows as well as the
of trade balance sheet I to trade balance sheet II. The effectiveness
statement of changes in equity are mainly carried out manually with
and compliance of the Group accounting process with the relevant
the help of the system. Capital consolidation is entered in SAP BPC
policies are confirmed by the companies included in the consolidated
after the system-supported manual implementation. Deferred and
financial statements within the framework of an internal statement of
accrued taxes are calculated and recognized by Group Accounting in
completeness.
coordination with the Group Tax department.
The SAP BPC system is primarily used for the accounting-related Group
Group policies, which are available to all consolidated companies,
reporting process between the companies included in the consoli-
ensure that consolidation processes and the reconciliation of internal
dated financial statements and the Group parent company, Fraport AG.
balances are carried out properly.
The accounts to be consolidated are recognized in this system, as is
required information for tax accruals and for the Group notes. Access
Assets and liabilities from the acquisition or sale of shares in compa-
authorization on the level of the consolidated companies is awarded
nies are generally measured on the basis of an external value analysis
and administered by Fraport on the basis of a user authorization con-
prepared by experts (e.g., calculation of acquisition costs or purchase
cept. Group reporting in SAP BPC is adapted by Group Accounting
price allocation).
on a regular basis to the changes in accounting-relevant legal regula-
tions. A Group chart of accounts in the SAP BPC system is set up and
Hidden reserves and liabilities (purchase price allocations) uncovered
administered by Group Accounting.
during initial consolidation are updated through Group Accounting
Accounting-related internal controls are, as far as possible, carried
out within the SAP BPC system. Manual application and monitoring
controls, especially regarding completeness and quality of the reported
data, are carried out in the context of the operating accounting pro-
cesses in Group Accounting.
centrally.
Consolidated Financial StatementsGroup Management ReportFraport Annual Report 2013 7 2
Group Management Report / Outlook Report
The Group notes are prepared by the Group Accounting as part of the
Functions in the departments involved in the accounting process
Group financial reporting process. Once the Group notes have been
are separated on a system, personnel and organizational level. A SAP
drawn up, the information given in them is verified by central or local
authorization concept is used for issuing and administering access
departments, where required.
authorization for accounting-related systems.
The central units Finance and Investor Relations, as well as, Corporate
The aim of the controls carried out within the framework of account-
Compliance, Risk and Values Management are generally responsible
ing is to ensure completeness, correctness, existence, ownership
for preparing the Group management report. They consolidate the
and presentation of the assets and liabilities and items in the income
information provided by the relevant departments. Consolidated
statement recorded in the accounting process.
information is verified by the relevant departments.
The Group parent company Fraport AG prepares its own individual
division, subsequent and mainly manual controls are carried out for
financial statements in accordance with German commercial and stock
the purpose of ensuring the completeness and correctness of items
market regulations. Fraport AG has developed an HGB accounting
recognized in the sub-ledgers. Preventative, system-aided controls and
policy to ensure that its financial statements are prepared consistently
a dual control (four eyes) principle are implemented as subsequent
and in accordance with the principles of compliant accounting.
controls of closing entries in order to achieve the purposes of the
During the preparation of the financial statements by the Accounting
monitoring mentioned.
Accounting at the Group parent company Fraport AG is, as far as
possible, kept local through sub-ledgers (for creditors, debtors, as-
In order to ensure that all financial statements are complete, the Group
set accounting, treasury, accounts of local departments). During the
parent company Fraport AG has implemented a contract management
preparation of financial statements, the Accounting division/Group
process that evaluates contracts recognized in the financial state-
Accounting creates any closing entries in the general ledger which
ments to obtain a complete and correct view of all facts relevant to
cannot be entered by local departments. The Accounting division also
the accounting process. In addition, the head of Group Accounting
performs internal controls in the framework of preparation of financial
is a member of the RMC. As a result it is generally ensured, that issues
statements for important local accounting processes.
identified during the risk management process are assessed for their
effect on the financial statements and reported, if applicable. The con-
In order to ensure standardized procedures, important operational
tract management and risk management processes are both regulated
processes of the sub- and general ledgers have been documented
in a separate policy.
(including policies, process descriptions, manuals and guidelines).
The effectiveness and compliance of the sub-ledger processes with the
A special process monitors risks associated with the recognition of
relevant policies are verified by the responsible departments, which
financial instruments in the accounting system, particularly hedging
issue an internal declaration of completeness.
transactions.
The Group parent company Fraport AG uses the SAP R3 system for
The reporting process for the financial statements of the Group parent
preparing its accounts. Accounting-related internal controls are car-
Fraport AG is laid down in a schedule detailing each individual step,
ried out where possible with the help of the SAP R3 system. Manual
including deadlines and responsibilities. Group Accounting monitors
application and monitoring controls are carried out during the opera-
the progress and schedule system-assisted.
tional accounting processes in the sub-ledgers and also during the
preparation of the financial statements by the Accounting division.
The major steps in the reporting process are the closing of the sub-
ledgers, which in the case of the receivables accounting process
includes the valuation of receivables, i.e., the creation of allowances.
In asset accounting, the closed sub-ledger reflects scheduled depre-
ciation and impairment losses on property, plant and equipment. The
Treasury department is responsible for the operational processes of its
own sub-ledger (including cash pooling) for providing the information
required for recognizing financial instruments in the general ledger.
Fraport Annual Report 2013 Group Management Report / Outlook Report
73
After the closing of the sub-ledgers, the Accounting division/Group
Despite positive economic forecasts overall for fiscal year 2014 (see also
Accounting of Fraport AG carries out the necessary closing entries,
the “Business Outlook” chapter beginning on page 84), the risks that
which also includes carrying out subsequent manual monitoring con-
could arise from the economic and financial policy conditions remain
trols. This mainly relates to other provisions and personnel provisions,
unchanged. Another flare-up of the European debt crisis, for example
financial assets and instruments, equity and expense and income
as a result of insolvency in the banking sector, an escalation of political
accruals. The Tax department calculates and posts income taxes and
protests against reform measures and the Euro, the abandonment of
performs manual application and monitoring controls.
deficit targets and reform measures introduced, turbulences in emerg-
ing countries or renewed general uncertainty among businesses or
Fraport regularly uses external service providers within the framework
consumers could halt the slight upward trend in Europe and trigger
of the preparation of the annual financial statements for evaluating
another recession in Europe. The global economy would also be
provisions, mainly personnel provisions as well as financial instruments
affected in this case, which would result in further weakened growth.
and assets.
The negative consequences for global and regional air traffic develop-
ment, including Fraport, would also be considerable.
The Internal Auditing department regularly assesses major sub-
processes of the accounting process, including accounting-related
The budget debate regarding debt limits in the USA that surfaces
internal controls.
Business risks
again in early 2014 (political stalemate; threat of expenditure freezes),
which led to uncertainty even outside of the USA in October 2013,
represents a risk, albeit a comparably lower one. The risks in China
The risks which could have a material effect on the business activities of
as well as various emerging countries discussed in the media could
Fraport are explained in the following description. In this description,
have a dampening effect on the global economy and, as a result,
they are aggregated more intensively than they are used for internal
Germany’s export-based economy, which would also affect Fraport’s
control; however, the risks are classified according to the same risk
airport business.
categories, which are also used in the internal risk management report-
ing system. Unless specified otherwise, the risks described relate to all
The economic risks may become more manifest, impairing develop-
segments, to varying extents (Aviation, Retail & Real Estate, Ground
ment in air traffic, which would have a negative effect on the asset,
Handling and External Activities & Services).
financial and earnings position of Fraport. For this reason, Fraport
closely monitors the development of supply and demand in air traffic
Fraport AG is the parent company of the Fraport Group and is com-
so that reasonable countermeasures can be introduced if required.
prised of all of the segments described. Therefore, it is also subject to
Particularly in the personnel area, Fraport has agreements with the
the risks described, directly or indirectly.
employee representative body in order to be able to intervene with
Strategic risks
General economic risks
countermeasures.
An increasingly unstable geopolitical situation in the Middle East and
The development of the global economy has yet to gather momentum,
North Africa in the form of new oil and kerosene price rises could
and the aftermath of the financial and debt crisis varies widely. Industrial
also have an impact on the supply and demand development of air
nations have expanded their production since the start of 2013, but
transport.
their economic activities remain burdened by structural problems.
Economic momentum in emerging countries is still comparably high
but has weakened significantly in recent years, which is particularly
important due to the increasing significance of China and India in the
global economy.
Consolidated Financial StatementsGroup Management ReportFraport Annual Report 2013
7 4
Group Management Report / Outlook Report
As an international air traffic hub, Frankfurt Airport benefited in the
The amount of transfer traffic also varies depending on the availability
past from the fact that airlines tended to return to their local bases and
and attractiveness of direct intercontinental flights offered.
concentrate their business on hubs in times of crisis. Fraport has been
able to at least compensate for the effects of crises in a relatively short
Due to the increasing market and competitive pressure, the potential
time. However, experiences with the most recent economic crises
risk also exists that future capital costs from planned capital expenditure
could indicate that it may take increasingly longer to return to a growth
may only be capable of being priced into the achievable charges to
path. Furthermore, structural changes in business travel (e.g. reduction
a limited extent.
in the number of business trips) could have a direct or indirect impact
on Fraport’s business. Currency rate fluctuations, unemployment and
Frankfurt Airport is not only in competition with established European
changes in consumer behavior which influence passengers’ shopping
competitors. It is also faced increasingly with a continuous stream
habits, can also impact the earnings of the Fraport Group, particularly
of new competitors. Political and regulatory decisions on regional,
in the retail business. The buildings and areas that Fraport currently
national and European level have an impact on the market and there-
lets are mainly used by airlines or companies whose business largely
depends on the development of air traffic at Frankfurt Airport. This sec-
tor of the real estate business is therefore not directly tied to general
real estate market developments.
fore competition in the form of taxes, fees and regulations, such as
aviation tax, EU emissions trading, CO2 regulations, noise protection
requirements and bans on nighttime flights. There is therefore the risk
of airlines using alternative sites and routes outside Frankfurt for the
medium-term. Fraport sees more medium-term risks in the form of a
Given the difficult situation described, Fraport estimates the potential
weaker competitive advantage among European airlines and conse-
impact level of the macroeconomic factors as still “high” overall. The
quently among European airports.
probability that negative macroeconomic developments can have such
an impact on Fraport’s asset, financial and earnings position is assessed
Moreover, the creation of new or the development of existing hub
as being “possible”.
systems in the Middle East may lead to a shift in the global flows of
Market, competitive and regulatory risks
transfer passengers.
In addition to an attractive infrastructure, the success of a world air-
Fraport counters these risks through continuous market monitoring for
port is dependent on its airline customer structure and the associ-
prompt identification of potential changes with negative consequences
ated global and dense route network, the fleet structure and the fares
for the business, the recruitment of appropriate compensation offers by
offered by the airlines.
Sales Management but also through a balanced, needs-based expan-
sion planning. In view of the dynamic market environment, Fraport
The dampened global economic development, high fuel costs and the
assesses the potential impact (impact level) of these risks as “high” and
increasing competitive pressure in all transport sectors, to which the
the probability of occurrence as “possible”. The traffic assumptions
European airlines are particularly exposed, have led to consolidations
underlying the 2014 Business Plan, with a growth assumption of only
and also some insolvencies in the past, which also cannot be ruled
1%, for example, for the passenger traffic, were thus conservative.
out in future. Changes to the alliance systems repeatedly modify the
customer and supply structure, also associated with the reorientation
Fraport has reported continually in recent years that the European
of the supply at other airport locations. Ticket price campaigns influ-
Commission plans to further liberalize ground handling services
ence the flow of transfer passengers. If these special fares were to be
and the legislative process. On November 30, 2011, the European
limited, passenger traffic would suffer.
Commission presented the draft regulation. This was adopted by
the European Parliament on April 16, 2013. The draft includes, inter
alia, that with a maximum transition period of six years, an additional
third-party ground handling company must be approved in the case
of airports with more than 15 million passengers. The possibility of
awarding sub-contracts for self-handlers is equivalent to unrestricted
opening-up of the market and is assessed negatively. Stricter social
Fraport Annual Report 2013
Group Management Report / Outlook Report
75
regulations, such as the requirement to transfer employees, are also
If additional restrictions of airport operation – demanded in some
included. The draft is currently with the European Council for voting.
cases in the political discussion – were implemented into law, a further
weakening of the competitive position of Frankfurt Airport could result,
For risk minimization, comprehensive lobbying and efficiency-increas-
which would have a considerable impact on traffic volume, as well as
ing measures are being carried out. Possible losses of market share are
traffic structure, at the Frankfurt site. However, it must be considered
being counteracted by Fraport through agreements concluded to
that these restrictions (for example, extended night flight ban, maxi-
safeguard competition. The potential impact (impact level) from this
mum noise limits) would have to overcome high legal hurdles.
risk is assessed as being “high” and the adoption of the regulations
continues to be “likely”.
The aforementioned rulings by the German Federal Administrative High
Court mean that legal recourse in the test cases is now concluded.
In relation to the operation of Take-off Runway West and the existing,
However, it is impossible to completely exclude the possibility of
parallel take-off and landing runway system, based on investigation
residual legal risks to the airport expansion, in light, inter alia, of the
results due to anticipated official orders, capital expenditure of up to
filed constitutional complaints and possible appeals to the European
€300 million (previous year: up to €130 million) may become neces-
Court of Justice and/or the European Court of Human Rights as well
sary in qualified drainage systems. A notification regarding the Take-
as the still outstanding decisions in the non-test-case proceedings,
off Runway West area from the Darmstadt Regional Council has been
which are now being continued. Fraport counters these risks through
available since November 19, 2013. Further conditions (for example,
comprehensively following the proceedings, in legal and technical
additional measuring points) were formulated in this, which make
aspects. Furthermore, Fraport is committed to active noise protection
the drainage of the northern section of Take-off Runway West likely in
and noise research.
the medium-term. The notification does not contain any conditions
for the realization of qualified drainage for the parallel runway system.
The total volume of capital expenditure in the airport expansion so far
An evaluation of the probability of occurrence for the described risks
has increased to approximately €2,270 million as at December 31, 2013
is not possible due to the status of the process currently under way
due to the advancing building and contract award activity, as well as
by the authorities.
the capital expenditure to be made due to the supplemental planning
zoning decisions dated April 30, 2013 (noise protection for commer-
Risks in connection with the airport expansion
cial property) and May 10, 2013 (protection requirements regarding
With its appellate decision, issued on April 4, 2012, the German Federal
wake turbulences).
Administrative High Court essentially confirmed that the zoning
decision and thus the airport expansion complied with legal require-
In view of the initiated and upcoming measures (for example, compre-
ments in several test cases. Insofar as it objected to the night flight
hensive roof reinforcement program, particularly in the municipalities
policy, the HMWVL, as the responsible zoning authority, adapted the
of Raunheim and Flörsheim) and the evaluation of the legal situation,
zoning decision on May 29, 2012, imposing a complete ban on all
Fraport estimates the probability of occurrence of the risk of a rescission
scheduled flights between 11 p. m. and 5 a. m. and for the hours im-
of the zoning decision regarding the expansion of Frankfurt Airport
mediately before and after the night flight ban, from 10 p. m. to 11 p. m.
as being “low”. However, if the risk should be realized, the impact
and from 5 a. m. to 6 a. m. the number of aircraft movements was
(impact level) of the risk would be “high”.
limited to an annual average of 133 take-offs and landings per night.
There is the risk that the existing night flight ban will have a long-
term impact on the conditions for the development of the site. It
cannot be ruled out that the momentum of the traffic development,
in particular in the cargo sector, will weaken, with the possibility of
reductions in cargo traffic. On the other hand, Deutsche Lufthansa/
Lufthansa Cargo, as the main cargo customer, has committed itself to
the Frankfurt site and intends to expand its cargo center, according
to the current state of affairs.
Consolidated Financial StatementsGroup Management ReportFraport Annual Report 2013 7 6
Group Management Report / Outlook Report
Financial risks
“Risk report” according to Section 315 (2) no. 2
of the HGB
Credit risks for Fraport stem on the one hand from primary financial
instruments. Such risks arise, for example, upon the purchase of securi-
ties in the framework of asset management and comprise the default
With regard to its balance sheet items and planned transactions, Fraport
risk of the issuer. On the other hand, credit risks arise in connection
is subject in particular to credit risks, interest rate and foreign exchange
with derivative financial instruments with a positive fair value and the
rate risks and other price risks. Fraport counters interest and foreign
current risk that the counterparty will not be able to meet the obliga-
exchange rate risks mainly by establishing naturally hedged positions,
tions that are advantageous for Fraport. This risk is generally countered
in which the values or cash flows of primary financial instruments off-
by using financial assets and concluding derivatives only with issuers
set each other in their timing and amount and/or by using derivative
and counterparties who have an investment-grade rating. Since the
financial instruments to hedge the business transactions. The scope,
beginning of 2013, investments without ratings have also been possible
responsibilities and controls for the use of derivatives are stipulated
in individual cases, within narrowly defined limits. If the credit rating
in a binding internal policy. The existence of a risk which needs to be
is downgraded to non-investment grade during the asset’s holding
hedged is the prerequisite for using derivatives. Derivatives are not
period or the term of the derivative, a decision is made on a case-by-
used for trading or speculative purposes. To monitor the risk posi-
case basis on the further progress of the asset or derivative, taking into
tions, simulations are regularly carried out by Risk Controlling using
account the remaining term.
various worst-case and market scenarios. The Chief Financial Officer is
regularly informed about the results. The Fraport AG Treasury depart-
The issuers’ ratings and those of issues are regularly monitored, as
ment is responsible for efficient market risk management. Generally,
are the credit default spreads (CDS) of the counterparties. Moreover,
only risks which affect the Group’s cash flows are managed. There
the upper limits are continually adjusted to the credit-rating develop-
can only be open derivative positions in connection with hedging
ment and where necessary reduced and financial assets are diversified
transactions in which the underlying transaction is cancelled or is not
further under risk considerations. In consideration of the previously
carried out as planned.
described measures, Fraport classifies the potential financial impact
(impact level) of credit risks as “low” and their probability of occurrence
Interest rate risks arise in particular from the capital requirements
as “possible”.
associated with capital expenditure and from existing floating inter-
est rate financial liabilities and assets. As part of the interest rate risk
Other price risks result from the fair value measurement of financial
management policy, in order to limit the interest rate risk for the ma-
assets. This, however, does not affect cash flows at the time of measure-
jority of the debt financing, interest derivatives were concluded and
ment. Financial assets with a fixed maturity are assumed to be subject
financing was concluded with fixed-interest rate agreements. Following
to temporary market fluctuations which reverse automatically by the
the commitment to these interest rate hedging positions, there is still
end of the products’ maturities, since a repayment in the full nominal
the risk that the market interest rate level will decrease and as a result
amount is expected.
there will be a negative fair value of the interest rate hedging instru-
ments or that a negative value will be intensified. These changes can
Even without specific measures, Fraport assesses the probability of
have an impact on the result, within the income statement, or also on
occurrence of other price risks as “low”, and the impact level as “low”.
the shareholders’ equity, depending on the classification of the deriva-
tive. Fraport assesses the probability of occurrence of the risk as being
Regarding further information about the nature of risks arising from
“low” and the potential impact (impact level) as “high”.
the use of financial instruments and the scope of risks from open risk
positions in the context of financial instruments, please see Group
Foreign currency risks mainly arise from revenue planned in foreign
notes 40 and 47.
currencies which is not covered by expenses in matching currencies.
Such risks are hedged, to the extent necessary, by entering into cur-
Other financial risks
rency forward transactions. Due to the hedging that has taken place
Risks for Fraport’s asset, financial and earnings position may arise from
or is planned, Fraport assesses the probability of occurrence of foreign
the current financial market situation and its effects on the overall
currency risks as “low” and their possible financial impact (impact
economy, particularly on liquidity and future bank lending practices.
level) as “medium”.
As a countermeasure, Fraport has as part of its “pre-financing” strategy
already secured a further portion of the planned borrowing for future
capital expenditure through external financing in the last few years,
most recently in the second half of 2012. This capital is still available.
Fraport Annual Report 2013 Group Management Report / Outlook Report
77
Legal risks and compliance risks
the demands of the Philippine government are unfounded. The oral pro-
As a Group that operates internationally, Fraport is subject to numer-
ceedings of the first stage of the process took place in September 2013
ous national and international laws and regulations, as well as their
in Washington D.C., which dealt with the jurisdiction of the arbitration
amendments, through which the future business success of Fraport
court, Fraport’s claims and counterclaims. The outcome of the pro-
could be negatively influenced. In addition to the industry-specific
ceedings remains to be seen. To protect its own interests, Fraport is
regulations of air traffic law, planning and environmental law and safety-
represented by two renowned law firms experienced in investment
related regulations, the general provisions of capital market law, cartel
disputes before the ICSID.
law and employment law are also of material importance. The Legal
Affairs departments of Fraport and its Group companies keep abreast
In the proceedings initiated by the Philippine government against
of the legal developments, including the relevant case law, inform
Philippine International Air Terminals Co., Inc. (PIATCO) in 2004 for
the affected business units about changes and are actively involved
the expropriation of the terminal, the Court of Appeals rejected the
in limiting any resulting risks.
appeal of all parties on October 29, 2013 and confirmed its decision
from August 2013 that the full compensation due to PIATCO for the
Furthermore, the risk exists that bodies and/or employees may violate
expropriation of Terminal 3 in Manila (including interest accrued by
laws, internal guidelines or standards of good corporate governance
July 31, 2013) should amount to US-$371.4 million. This decision is not
that are recognized by Fraport, with the consequence that Fraport
yet legally binding and was contested by all parties with appeals before
could suffer asset losses and/or reputational damage. Fraport is actively
the Supreme Court. Mediation proceedings carried out between the
working to counter these potential risks, through the establishment of
parties of the expropriation proceedings has not yet led to tangible
a Group-wide compliance organization, and the implementation of
results. Fraport is not a party in the expropriation proceedings nor a
a compliance program, inter alia through the code of conduct that is
party in the related mediation proceedings. However, a conclusive
binding for all employees, their training and constant further develop-
decision in the expropriation proceedings regarding the payment of
ment of the ICS. In addition to this, Fraport has implemented various
compensation also affects Fraport as a shareholder in PIATCO.
whistle-blower systems, which employees and external parties can turn
to confidentially and anonymously. In consideration of the previously
At the beginning of 2003, the shareholders and directors of PIATCO
described, implemented measures, the probability of occurrence of
– against Fraport’s votes and those of the PIATCO directors it ap-
a compliance violation having a “high” potential impact (impact level)
pointed – resolved to prepare a complaint for damages against Fraport
is assessed as being “low”.
and its directors for alleged improper and harmful action against the
company. Fraport denies these allegations. Moreover, it is disputed
Manila project (segment External Activities & Services)
whether these resolutions are legally valid. PIATCO has not further
The investment in Manila, the capital of the Philippines, to build and op-
pursued the claims asserted.
erate an airport terminal (NAIA IPT3 project) was written off completely
in the financial statements for the year ended December 31, 2002. The
As has already been reported in previous years, the Philippine Depart-
ongoing material risks and legal disputes in relation to the project are
ment of Justice ordered an arraignment in the suit against various
described in the following.
persons associated with the Fraport Group in 2011 due to a suspected
violation of the “Anti-Dummy Law”. The corresponding arraignment
As has already been reported in previous years, Fraport’s arbitration
took place in September 2013. Declarations of exemption were then
proceedings are continuing against the Republic of the Philippines
provided to affected persons. The outcome of these proceedings could
before the International Centre for Settlement of Investment Disputes
put the legality of Fraport’s investment in the Philippines in question
(ICSID) based on the investment protection treaty between the Federal
and could, in the case of conviction, serve as the basis for proceed-
Republic of Germany and the Republic of the Philippines. In these
ings to seize Fraport’s assets in the Philippines. With reference to the
arbitration proceedings, Fraport is claiming compensation for the ex-
allegations made in the proceedings, to the extent they are known,
propriation of the investment project at Manila Airport in the amount
Fraport is still of the opinion that these allegations are false.
of approximately US-$425 million plus interest. The Republic of the
Philippines disputes the competency of the court of arbitration and
The probabilities of occurrence of the risks described so far regarding
the merits of the complaint and furthermore has raised a contingent
the Manila investment are currently not assessable. However, if the risks
counterclaim against Fraport, which is partially in unstated amount.
should be realized, their impact would be “material”.
Fraport is of the opinion that the investments were lawfully made and
Consolidated Financial StatementsGroup Management ReportFraport Annual Report 2013 7 8
Group Management Report / Outlook Report
As reported, one Philippine law firm as well as one former Philippine
minister filed claims for damages against Fraport, two former board
Operating risks
Risks from capital expenditure projects
members and two Philippine attorneys of Fraport for alleged defama-
Fraport AG’s capital expenditure plan covers a period of ten years and
tion for PHP 100 million (around €1.6 million) each. Accordingly,
is subject to various risks. Increases in construction costs, suppliers
motions to seize Fraport assets on the Philippines were initially granted.
going out of business, changes in planning figures, or weather-related
To avoid the seizures, Fraport, as reported earlier, deposited guaran-
delays could all lead to extra costs. These risks are assessed by means
tees as collateral, whereupon the responsible courts revoked these.
of the clustering and weighting of the individual construction invest-
Furthermore, exemption declarations were issued to the Philippine
ments in three phases. In this respect, Fraport differentiates between
lawyers. In order to cover the existing risk, a provision in the amount of
projects in conception (requested), projects in planning and projects
€3.5 million was already formed in 2005. The main suits are still pending,
in implementation. A Fraport-specific percentage that represents the
but in the meantime the claim in one of the two suits has been rejected
risk assessment is applied to the construction investments as divided in
without possibility of appeal to the extent it was directed against the
this manner. Project-specific monitoring measures are implemented so
Philippine lawyers of Fraport. These complaints against Fraport were
that these potential risks can be confronted appropriately, thus assur-
rejected as well. The plaintiffs have filed appeals against these rulings,
ing that cost-reducing countermeasures can be introduced early on.
which have not yet been decided. In the same matter, the plaintiffs
filed a complaint leading to public charges in three proceedings. The
Fraport estimates the potential damage at around €300 million and,
court has already rejected the charges in all three proceedings, in two
taking the project-related monitoring measures into account, the
of the three cases in the court of appeal. In all the cases, appeals are
probability of the risk materializing as “possible”.
pending at various levels in which no final decisions have been made
to date. A fourth suit is still in preliminary proceedings. Fraport rejects
Risks attributable to investments and projects
these allegations. The probabilities of occurrence of the risk described
Investment companies and airport operating projects, like Fraport AG at
is currently not assessable.
the Frankfurt site itself, are subject to general economic and company-
specific risks as well as industry-specific market risks. In addition, there
All of the legal risks described are counteracted by Fraport appointing
are general political risks at individual locations abroad.
experienced law firms with its representation.
Other legal risks
In principle, Fraport‘s investments outside of the Frankfurt site can
be distinguished from one another as capital-intensive expenditure,
There is the risk of back tax payments in connection with tax audits
such as the acquisition of long-term concessions or the acquisition of
that are still to be carried out. The probabilities of occurrence of such
shares in airports, or in business models with no capital investment
potential back tax payments are currently not assessable.
or only a small amount, such as the conclusion of service contracts
(management contracts). Fraport is also active in countries, such as
China and Russia, which can basically hold higher risks for investors
than is the case for capital expenditure in Germany. These risks typi-
cally include country, market and foreign exchange risks, which can
lead to a significant impairment of the future earnings outlook, right
up to a total loss of the investment.
For reasons of bidding strategy, as well as risk minimization, Fraport
often works in cooperation with a local partner who has experience
with the relevant typical national regulations and customs. Within the
context of major capital expenditure, Fraport aims for project financing
that allows no recourse or only limited recourse to Fraport AG as the
capital provider. This type of project financing, which are also referred
to as non-recourse or limited-recourse, are used here for risk reduction.
Fraport Annual Report 2013 Group Management Report / Outlook Report
79
Notwithstanding this, the subscribed equity capital of the relevant pro-
In view of terrorist attacks against military and police establishments
ject company and shareholder loans granted by Fraport are exposed to
and political unrest in the past (mainly in the urban centers of Istanbul
a default risk. In order to minimize these risks, Fraport uses investment
and Ankara) and conflicts in the border area with Iraq and Syria, secu-
protection insurance, wherever possible and economically meaningful.
rity measures throughout the country remain at a high level. To this
extent there continues to be a latent risk of terrorist activity in all parts
Particularly in emerging countries, political instability and/or economic
of Turkey. So far, neither the conflicts in the Middle East or in North
fluctuations can occur at any time. Therefore, Fraport relies on long-
Africa, nor the political unrest in Turkey have had a noticeable negative
term growth with these investments, in order to participate in continu-
impact on the development of the country‘s tourism. Nevertheless,
ing positive performance. Overall, the countries in which Fraport is
it appears “possible” that such an escalation could influence tourism,
active show a significantly stronger long-term growth forecast for their
which would, in turn, imply “medium” negative consequences for the
economy than is the case for Central Europe, even if this is currently
business performance of Antalya Airport.
subject to uncertainties, for example, with Russia and Turkey.
On the basis of existing contracts between Fraport AG, Fraport Group
Risks in connection with the existing airport operating projects, which
companies and various principals, such as foreign airport operators and
are generally long-term, arise primarily in connection with the estima-
aviation authorities, guarantees exist from Fraport AG and respectively,
tion of future development of air traffic. A possible lack of growth and/
guarantees for operated airports. In the event of poor performance
or downturn in air traffic could have a significant negative effect on
or non-performance of contractually owed services, these guarantees
the earnings development of concessionary companies, which could
can be claimed upon. For risk minimization, these potential payment
also result in “material” risks to project financing. Unforeseen official
obligations are reduced in proportion to the service provided on a
interventions in the fare, tax and levy structure of the airports to the
regular basis, where possible. Nevertheless, depending on the circum-
detriment of the airport operators can also cause risks. Additional
stances of the respective project – the possibility exists that until the
risks, such as delays in connection with the construction of airport
end of the relevant contractual term, a claim under such collateral by
infrastructure, which as a rule adheres to a contractually stipulated
the contractor can be initiated to the detriment of Fraport AG.
schedule, may also implicitly occur from this.
Personnel risks
For the Jorge Chávez Airport in Lima, Peru, operated by Lima Airport
Fraport intends to continue utilizing the growth in global air traffic to
Partners (LAP), various risks currently exist regarding the planned ex-
create sustainable and attractive jobs at all Group sites. Fraport is aware
pansion of the airport: the handover of land by the government and
that the current demographic shift will intensify the competition for
the ground quality holds possible risks. Furthermore, the timetable for
high quality professionals and managers, particularly at the Frankfurt
relocating a main road is still uncertain. While the associated deviations
site. This relates to the acquisition of new professionals and managers,
regarding the expansion costs and/or the timetable can be classified as
as well as retaining existing employees. In order to deal with this risk
“likely”, if this occurs, this would result in a suspected “high” impact
adequately, Fraport has taken measures in the fields of qualification,
level. In order to adequately counter the risk, the management of LAP
commitment and work satisfaction. In the qualification field, airport-
is establishing a cost optimization approach for the implementation
specific and universal qualification programs for its employees and
of the expansion projects.
managers, trainee programs and short- and medium-term assign-
ments at Fraport’s foreign sites are offered. In the commitment field,
Fraport operates the airport in Antalya in Turkey, in cooperation with a
Fraport offers attractive company benefits, the material participation
Turkish partner. One of the main foundations of the Turkish economy
of employees in the company‘s success and concrete measures for
is the tourism sector, which has continuously been expanded in
good compatibility of work and family life. In the work satisfaction
recent years. This is particularly reflected in a relatively high share of
field, the training and sensitization of the managers to the reduction
high-quality hotel facilities at an attractive price-performance ratio. As
and minimization of work and health risks play an important role.
a result, Turkey has already become a serious competitor to traditional
Furthermore, in-depth employee surveys are conducted every one or
holiday destinations in the Mediterranean or the Canary Islands.
two years in all Group companies with a substantial workforce. They
provide Fraport with important insights and opportunities to improve
the working environment on all levels.
Consolidated Financial StatementsGroup Management ReportFraport Annual Report 2013 8 0
Group Management Report / Outlook Report
On the basis of the initiated measures, the potential impact (impact
Risks of unusual disruptions
level) of the risk is assessed as “low” and the probability of occurrence
Operations in Frankfurt and other Group airports may be impaired
as “possible”.
by local events such as accidents, terrorist attacks, fires or technical
malfunctions, as well as events that influence the operation of national
As a result of the change to the German Temporary Employment Act as
and international air traffic (such as natural disasters, extreme weather
of December 1, 2011 and the case law that has been cited in the mean-
events, armed conflicts and epidemics).
time, within the context of assigning employees through temporary
employment, the risk now exists that the number of employees to be
Fraport has taken a series of measures in order to minimize or counteract
used in future must be reduced. Furthermore, the coalition agreement
such negative effects. In order to protect the IT infrastructure and the
at the federal level includes the plan to limit temporary employment
critical operating systems from significant negative effects, Fraport and
contracts to a maximum of 18 months in future, in relation to the
the other Group airports have developed plans for maintaining critical
function, as well as the person performing temporary employment.
business and operating processes (business continuity and emergency
Therefore, the risk exists for Fraport that the use of personnel through
teams), as well as the restoration of the IT services. Furthermore, a
temporary employment contracts may not be admissible in some
central crisis team is established in Frankfurt which coordinates all of
cases in future, compared to the current situation. Without alterna-
the necessary processes airport-wide in the event of emergencies. In
tive solutions, the required scope of work would need to be covered
order to verify the adequacy of these plans and to continuously improve
with Fraport‘s own personnel, which would lead to additional costs
them, malfunction scenarios are set up and exercises are carried out
estimated at €16 million to €18 million per annum on a Group-wide
on a regular basis.
basis. In view of this situation, it is now already being investigated
whether adequate options can be found for an alternative structure.
In addition to these preventative measures, Fraport AG‘s insurance
The advantages and disadvantages of possible structuring options
protection covers the risks that are usually insurable with airport com-
are currently being examined and considered. On the basis of the
panies. It particularly includes loss events that result from the loss of or
initiated measures, Fraport assesses the probability of occurrence of
damage to assets, including resulting business interruptions, as well as
this risk as “possible”.
the statutory liability of Fraport AG from all business capacities, legal
situations and activities in relation to operating Frankfurt Airport, as well
Fraport AG has insured its employees for purposes of granting a
as all additional risks that are conventional or necessary in the business
company pension under the statutory insurance scheme based on
or industry, as well as in the operation. Insurance protection regularly
a collective bargaining agreement with the Zusatzversorgungskasse
also covers the risks from terrorism regarding property and third-party
(top-up provision insurance scheme) in Wiesbaden (ZVK). As with
liability. Fraport AG and the domestic Group companies in which an
the statutory insurance scheme, this is currently structured as a soli-
interest of at least 50% is held are covered against risks of environmental
darity model. In view of the demographic change, the ZVK has the
damage from accidents, for statutory and public-law claims.
problem that the current levies for financing the benefits are not suf-
ficient. Therefore, a so-called “restructuring fee” is now already being
Foreign Group companies generally cover the aforementioned risks
collected in addition to the levies. Furthermore, the ZVK‘s solidarity
using separate local insurance policies.
model provides for personnel who leave to be replaced by new levy
payers. If the requirement for work performance declines, in addition
In spite of possible insurance protection, if one of the described risks
to the demographic development, the number of employees for whom
should occur, this can have a “high” financial impact (impact level),
levies and restructuring charges are paid will fall. Because of this, the
depending on the seriousness. This assessment takes account of the
coverage gap grows continuously in the company pension plan.
far-reaching consequences for the Fraport business, for example, from
Therefore, it cannot be ruled out that the ZVK could charge further
natural disasters or terrorist attacks. As unusual disruptions tend to be
compensation amounts in order to cover the compensation coverage
rare, Fraport assesses the probability of occurrence as “low”.
gap. In order to counter this risk of financing capability of the company
pension plan, alternative solutions are being sought – also in discus-
sions with the ZVK – regarding how to switch the current structure of
the company pension plan to a capital-covered model at an accept-
able cost. In view of the high complexity of the issue and unclarified
legal questions, a precise assessment of the potential financial impact
(impact level) is not currently possible; the probability of occurrence
is assessed as “possible”.
Fraport Annual Report 2013 Group Management Report / Outlook Report
81
IT risks
Within the context of the planning process, Fraport assesses market and
All of Fraport‘s important business and operating processes require
competitive analysis, as well as environmental scenarios and deals with
IT systems and IT components. A serious system failure or material loss
the orientation of the product and service portfolio, the cost drivers
of data could lead to serious business disruptions and security risks. In
and the critical success factors of the industry. Furthermore, Fraport
addition to this, attacks by viruses and hackers could lead to system
monitors the identifiable trends at its competitors, customers – such
failure and ultimately to the loss of business-critical and/or confidential
as airlines, passengers and tenants – as well as in businesses outside of
data. All of the IT systems of critical importance to the company are
the industry, which have an impact on air transport in general and the
configured redundantly and are optionally housed at separate loca-
operation of airports in particular. Fraport aims to further develop and
tions. The possibility of residual risks resulting from the architecture
expand the value-creating business fields that are already part of its
and operation of the IT facilities cannot be completely ruled out due
operations. Furthermore, Fraport invests in business fields and business
to their nature.
ideas in which the company can establish sufficient expertise in order
to operate these to create value over the long-term.
Due to the ongoing development of new technologies and the
growing threat of cyber attacks, there is an underlying risk potential
In addition to the opportunities management by the business units
for IT systems. Fraport takes account of this situation with active and
and the Group‘s central units, Fraport also uses the expertise of the
preventative IT security management, which particularly focuses on the
entire workforce. With a variety of instruments, Fraport aims to identify
business-critical IT systems and their availability. The requirements for
opportunities that the employees develop. In addition to the tradi-
IT security are specified in the IT security policy and security guidelines
tional Group ideas management program, these include the “FRAnk”
which must be followed throughout the Group. Compliance with these
innovation prize, which awards particularly innovative ideas at Frankfurt
guidelines is monitored regularly. Furthermore, compliance with data
Airport and targeted creative workshops with employees, in which
protection regulations is ensured. In addition to this, residual risks from
new business ideas are sought.
failures that occur are additionally covered by specific IT insurance
policies, where this is economically meaningful.
Fraport basically aims for a balanced relationship between opportuni-
ties and risks, where its aim is to increase the added value for customers
IT systems are highly important to all of Fraport’s business and opera-
and shareholders by analyzing and using new market potential and
tional processes. Due to the preventative and proactive measures
opportunities.
introduced, the potential effects (impact level) of an IT failure lasting
several hours are assessed as “medium” and the probability of occur-
Where it is likely that the opportunities will occur, these have already
rence is “low”.
Opportunities report
The opportunities management system
The opportunities management system of the Fraport Group has the
been included in the 2014 forecast and respectively, in the medium-
term outlook. Therefore, the following section concentrates on future
developments or events that can lead to a positive deviation from the
outlook and medium-term prospects for Fraport.
aim of identifying and evaluating opportunities at the earliest pos-
Unless specified otherwise, the opportunities described relate to all
sible stage and initiating appropriate measures so that opportunities
segments, to varying extents (Aviation, Retail & Real Estate, Ground
are taken and lead to commercial success. Opportunities should be
Handling and External Activities & Services).
assessed for existing business, as well as from new business fields.
The identification and recording of opportunities takes place by the
prised of all of the described segments. Therefore, it is also subject to
operating units/segments and the supporting Group units throughout
the opportunities described, directly or indirectly.
Fraport AG is the parent company of the Fraport Group and is com-
the year, within the context of the company‘s operational management
and the annual revolving medium-term planning process. While the
Overall economic opportunities
short-term result monitoring is aimed at opportunities that mainly
Since early summer of 2011, the European debt crisis has led to the
relate to the current fiscal year, in the medium-term planning process,
growth momentum of the global economy and particularly also
opportunities which are of strategic importance for the Group are
worldwide air cargo transport declining and resulted in a recession
focused on.
in the Euro zone economy in the years 2012 and 2013. In contrast to
this, the German economy remained comparatively robust and was
able to achieve moderate growth in both years.
Consolidated Financial StatementsGroup Management ReportFraport Annual Report 2013 8 2
Group Management Report / Outlook Report
The debt crisis led to a considerable slow-down in demand for trans-
As an internationally operating airport operator that is represented in
port. The airlines, which were strongly impacted by this in some cases,
virtually all parts of the world, Fraport can take advantage of this region-
reacted to the excess capacities and financial imbalance with consolida-
ally varied growth potentials through investments and management
tion measures, which led, inter alia, to a significant reduction of services
agreements. Also in future, Fraport will continue to expand selectively
and lower volumes at the airports in general, as well as in Frankfurt.
and on a success-orientated basis in international business. Certain
signs of saturation in the demand for air transport in western countries,
Experience with the growth cycles has shown that market turbulences
which also affect the Frankfurt site, can be compensated with this.
can generally only interrupt the upward development of world air
traffic temporarily. The possibility of a degree of dragging out of the
Opportunities in corporate strategy
volume expectations cannot be ruled out, however catch-up effects
Through the completion of Runway Northwest and Pier A-Plus, Fraport
after times of crisis can also not be ruled out.
was able to significantly increase the airside as well as landside capaci-
ties at the Frankfurt site in the past two years and thus create the basis
The forecasted, economic momentum, which is picking up again (see
for a dynamic development of passenger volume. Fraport is therefore
also the chapter “Business Outlook”, beginning on page 84) could –
able to handle traffic volumes that go beyond the traffic forecasts used
in conjunction with an improved financial situation of the established
as the short-term planning basis. Frankfurt Airport is thus one of the
airlines – end the consolidation in the airline industry more quickly,
few large European passenger airports that has sufficient infrastructure
stop route reductions, create new airline services and exceed the
capacities over the longer term and can possibly make use of capac-
traffic forecasts that still tend to be conservative. The ACI forecast for
ity bottlenecks of other airports to its advantage at appropriate good
2014 from June 2013 is at 2.4% for all European airports and at 4.5%
market development.
worldwide. Fraport has deliberately estimated the business planning
conservatively with passenger growth of 1% for the Frankfurt site,
With the far-advanced planning for Terminal 3, Fraport also has the
but is currently assuming a volume increase in 2014 within a range
possibility of providing additional capacities for passenger traffic in
of 2% to 3%.
the foreseeable future. On the basis of the zoning decision, a building
application has already been submitted for the first construction level of
Largely independent of the current dampened economic situation, the
Terminal 3. This will be realized on the basis of the traffic development,
international integration of the globalized world economy continues
so that Fraport has the opportunity to provide sufficient capacity at
to increase. There is no foreseeable change in the trend of purchasing,
the appropriate time. The inauguration of Terminal 3 is not presently
production and sales being distributed across the entire globe. Global
planned within the medium-term planning period.
air traffic provides the key infrastructure required for continuing the
internationalization process. This trend is supported by development
The discontinuation of the regulatory measures that distorted com-
in various developing and emerging countries with lasting, favorable
growth potential. The rise in the standard of living in these countries is
key to the disproportionately high growth of air travel, not least because
ground-side transport infrastructure is often underdeveloped in these
petition, such as the aviation tax and a competition-neutral approach,
such as with the CO2 regulation or emissions trading, can result in
increased traffic.
areas. Compared to Central Europe and North America, economic de-
On top of that, Fraport has identified the following significant growth
velopment in these countries was far less impacted by the last financial
engines for the future:
and economic crises and the current debt crisis.
Airport retail
Extending and modernizing the retail, food and beverage and service
areas in the terminals, in particular on the airside, continue to be
central elements for increasing retail revenue. With the opening of
12,000m² of retail space in Pier A-Plus, Fraport created an essential
foundation in 2012 for further retail growth at Frankfurt Airport. The
focus in addition lies on the development and implementation of sales-
promoting measures for the passengers who have an extraordinarily
high purchasing power. In view of this, Fraport is intensively examining
the buying behavior of passengers, in order to increase the revenue
Fraport Annual Report 2013 Group Management Report / Outlook Report
83
per passenger over and above the planning estimates. Fraport is also
Opportunities for improving the processes not only result from within
monitoring general trends in the retail sector, in order to derive future
the Group, but also in cooperation with customers and suppliers.
new business opportunities for the company.
Therefore, Fraport also aims to review the processes at these junctures
External business
Fraport’s know-how is now represented on four continents. In addition
on a regular basis and leverage further potential, which will have a
positive impact on the corporate result and the quality delivered.
to Frankfurt, four further airports are operated or managed through
Overall, Fraport regards the potential impact of the organizational and
Group companies in which Fraport holds an interest of at least 50%.
process-related improvements as being material for the company’s
The Group rounds out its portfolio with minority-owned airports or
future development. Therefore, Fraport has focused specifically on
through management contracts in numerous airports. The profit contri-
setting additional impulses here during the past fiscal year. The aim
bution of external business to the overall profit of the Fraport Group is
is to take account of the specific challenges of an integrated business
set to continue to perform in the next years in the existing investment
model in the Group, as well as the importance of the Group in terms
portfolio. In addition, Fraport‘s clear objective is to expand the external
of social and regional policy.
business. Opportunities for expanding the external business present
themselves on a regular basis, through new airports and development
projects placed on the market. Also in future, Fraport will submit bids
Financial opportunities
Favorable changes on the financial markets
in attractive tenders which meet the internal return requirements and
Favorable exchange rate and interest developments can have a positive
offer adequate security for the investment.
impact on the Group’s financial result. The Financing department is
Airport city
monitoring the development on the financial markets in order to iden-
tify and utilize opportunities. Exchange rate effects from the conversion
Around the world, hub airports are developing into airport cities.
of results that are not denominated in €, into the functional currency of
Fraport recognized this trend at an early stage and identified sites that
the Group, the €, can have a positive impact on the Group’s financial
are worth considering for real estate development. For instance, Fraport
result. Overall, Fraport holds the view that advantageous changes on
is intensively developing and marketing attractive commercial space
the financial markets could have a material impact and in view of the
in direct proximity to Frankfurt Airport (such as the Mönchhof site or
volatility of the financial markets and the exchange rate developments,
Gateway Gardens). Another project involves an expansion of CargoCity
Fraport regards it as “possible” to profit from it.
South to meet the high demand for additional logistics space at the
Frankfurt site. Depending on the particular project, Fraport decides
if and to what extent the Group will participate in the development
of the real estate.
Overall assessment of the opportunities and risks
by the company management
Fraport consolidates and aggregates all of the risks and opportunities
reported by the various company units and Group companies, which
Through the complete acquisition of the Ticona site as at Decem-
are reported within the context of the quarterly risk analysis process.
ber 31, 2013, Fraport has an additional area, which can be developed
Furthermore, the risks and opportunities are discussed within the con-
within the context of the airport city and is available for airport-affiliated
text of the regular planning processes. In the opinion of the Executive
services.
Board, the risks described before are not of a nature, individually or in
their entirety, that might jeopardize the company as a going concern in
Opportunities in conjunction with organizational and
process-related improvements
consideration of their respective risks of occurrence and their financial
impact, as well as in view of the stable balance sheet structure and
A continuous optimization of key business processes and constant cost
anticipated business development. The Executive Board continues to
control are of essential importance for ensuring stable profitability and
be optimistic that the Group‘s financial strength forms a solid basis for
capital return. Fraport holds the view that the possibilities for further
future business development and provides the necessary resources to
optimization of the cost structures within the Group are not yet fully
effectively pursue and utilize opportunities that present themselves
utilized. The functions of good corporate management include con-
to the Group.
tinuously investigating the organization to determine how it can be
structured more effectively and efficiently. In individual cases, projects
are initiated to use the identified optimization potential. Through this
continuous process, it should be possible to achieve additional earn-
ings potential over and above the planning.
Consolidated Financial StatementsGroup Management ReportFraport Annual Report 2013 8 4
Group Management Report / Outlook Report
In comparison to the previous year, the estimate of probability of
Risks and opportunities that do not form part of the business out-
occurrence and/or financial impact of individual risk classes has not
look and may lead to significant negative or positive changes to the
changed significantly. This is also reflected in the negligible percentage
forecasted development can be found in the chapter titled “Risk and
change of the risks classified as being “material” or “moderate” in the
Opportunities Report” starting on page 67.
risk matrix. In relation to the total number of all identified risks, the risks
at the “material” risk level were at 20.7 % at year-end (previous year:
23.8 %), the risks of the “moderate” risk level were at 17.1 % (previous
Forecasted situation of the Group for 2014
Development of Group structure
year: 21.1 %). The Executive Board is convinced that the change of the
Compared with the 2013 fiscal year, the Executive Board does not
individual risks has no significant impact on the overall risk profile of
expect any fundamental changes to the legal and organizational
Fraport, which essentially remains unchanged in comparison to the
Group structure in 2014. Furthermore, the Executive Board expects
previous year.
Business Outlook
the competitive situation at the key Group sites to remain unchanged
in comparison with 2013. Efforts will still be made to expand the
external business with new airport investments. These will generally
be acquired as part of a public tender procedure and cannot therefore
be forecasted. Similarly, the disposals of companies are just as difficult
Information about reporting
to predict and thus do not form part of the forecast.
The business outlook is based on the assumption that the international
economy and air traffic will not be impaired by external shocks such as
Development of Group control
terrorist attacks, wars, epidemics, natural catastrophes, or additional
Compared with the 2013 fiscal year, the Executive Board does not
turbulences on the financial markets.
expect any fundamental changes in 2014 to the financial and non-
Moreover, statements concerning the anticipated asset, financial and
derived from the Group strategy. Furthermore, the Executive Board
earnings position reflect the accounting standards to be applied in the
does not expect any fundamental changes to the Group strategy and
EU at the start of the 2014 fiscal year. Deviations from the standards
the strategic focus of finance management in 2014.
financial performance indicators, which are used for Group control and
used in the 2013 fiscal year arise as a result of the first-time application
of IFRS 11 “Joint arrangements”, which stipulates that joint ventures that
have until now been proportionately consolidated in the consolidated
financial statements must be valued and consolidated using the equity
Forecasted economic and industry-specific
conditions for 2014
Development of economic conditions
method as of January 1, 2014. For Fraport, this has a particular impact
Based on the improved economic development during 2013, financial
on the Group companies Antalya as well as N*ICE Aircraft Services &
institutions and leading economic institutes expect the global economy
Support GmbH, Medical Airport Service GmbH and AirIT Systems
to expand further in the 2014 fiscal year. With growth of 3.4 % to
GmbH. An overview of all joint ventures that were proportionately
3.8 %, the pace of the global economic development is forecasted to
included in the consolidated financial statements of the 2013 fiscal
exceed the level of 2013 significantly (2013 figure: about 3 %). Global
year can be found in the Group notes to this report in Group note 55.
trade will rise by around 4.5 % in 2014, according to current forecasts.
To compare the 2014 forecasted asset, financial and earnings position
US-$ exchange rate, it is presumed that the € in 2014 will on average
with the figures in the 2013 financial statements, Fraport has prepared
remain broadly unchanged with a value of US-$1.34.
Overall, inflation is expected to be moderate. With regard to the € to
“pro forma” figures which adjust the 2013 financial statements to
the new accounting standard. A reconciliation of the 2013 figures
For 2014, relatively stable global oil prices at an average of US-$105
is provided before the respective chapters of the business outlook.
to 110 per barrel are expected, which is a forecast at the level of the
last three years. On the one hand, the oil production boom in the USA
will put pressure on prices. On the other hand, due to the economic
momentum, a rise in demand for raw materials is also anticipated.
Fraport Annual Report 2013 Group Management Report / Outlook Report
85
Regionally, due to a lower debt burden on private households and an
Development of the global aviation market
improving real-estate sector, positive economic development (about
On the basis of the expected development of economic conditions
2.5 % to 3 %) is expected, among others, in the USA. In general, only
as well as taking into account the financial situation of the airlines, the
a recovery and not an upturn is anticipated in the Euro zone, which
ACI anticipates growth in passenger volume of 3.2 % for European
will still be burdened with increased uncertainty regarding financial
airports and 1.5 % in freight tonnage for 2014. Conversely – based on
policy. Following – 0.4 % in the 2013 fiscal year, this figure is expected
passenger kilometers – IATA forecasts an increase in the global aviation
to be about 1 % in 2014. Germany should continue to develop more
market of 6 % in 2014 under very different growth rates in the regions,
positively. After achieving growth of 0.4 % in the 2013 fiscal year, it is
with Europe seeing 4.7 %. The unchanged high crude oil price that
expected to achieve growth of 1.7 % in 2014.
is forecasted will have neither a positive nor negative impact on the
The good development should be supported primarily by domestic
demand, the improving global economic environment and a higher
volume of investments. Positive stimulus continues to be expected from
growth rate in comparison with the previous year.
Source: ACI Press Release February 6, 2014, IATA Industry Financial Forecast,
December 2013.
private consumption. While a slight decline in economic momentum
Forecasted business development 2014
is anticipated in Japan due to lower economic policy stimulus and
Taking the economic and industry-specific conditions into account,
the consolidation of public finances, the growth rates for emerging
the Executive Board expects better development for fiscal year 2014
countries are again expected to significantly exceed those for industrial
at the Frankfurt site than in the previous year. It forecasts a growth
countries. For countries with Group airports in which Fraport has an
rate in passenger traffic of between 2 % and 3 %. While the generally
interest of at least 50 %, the following growth rates are expected: Peru
more favorable economic environment will have a positive impact on
+5.5 %, Turkey +3.5 %, Bulgaria +1.7 %.
passenger business, there will be further uncertainty from the airlines’
Sources: Consensus of the leading German economic research institutions (October 2013),
IMF (October 2013), OECD (November 2013), Deutsche Bank Research (January 2014),
DekaBank (January 2014), World Bank (January 2014).
short-term yield and capacity management. With regard to cargo ton-
nage handled, the Executive Board expects rather a moderate growth
rate for the Frankfurt site within the context of market growth. Based
on the still high proportion of cargo handled on North American and
Development of the legal environment
Asian connections and the volatile economic prospects of both regions,
The following changes to the legal environment will come into effect
the cargo outlook is subject to increased uncertainty.
in the 2014 fiscal year:
On the basis of positive economic assumptions and a sustained opti-
In September 2009, the European Commission adopted a resolution
mistic outlook for tourism, an increase in passenger numbers over the
expanding its influence on airports and aircraft movements/air traffic
coming years is expected for the Group airports with a Fraport share
control. Based on this resolution, the competence to develop the
of at least 50 %: Antalya, Lima, Varna and Burgas. It is anticipated
legal foundation for the certification of airports was transferred to
that growth rates will be around 5 % on average. As in past fiscal years,
the European Aviation Safety Agency (EASA). From 2014, the EASA
the political situation in North Africa and the Gulf Region can affect
is responsible for the safety supervision of the licensing authorities
Antalya, Varna and Burgas over and above their organic growth. In
for all European airports. In order to guarantee uniformly high safety
Lima, in addition to the international traffic, the increase in domestic
standards in all EU member states and thus realize a partial aspect of
traffic will also have an impact on the increase in volume.
the Single European Sky (SES) program, national legislation and regula-
tions with regard to the operation and licensing of airports, air traffic
management and air traffic controlling services shall be supplemented
or replaced in part by unified EU legislation. To ensure that general legal
conditions build on one another and a functioning European air traffic
system can be created, the European Commission plans to create new
principles for the harmonization and better meshing of the legislative
projects with the SES II+ program. The resulting changes do not have
a significant impact on the forecasted business development for the
Fraport Group in the 2014 fiscal year.
Consolidated Financial StatementsGroup Management ReportFraport Annual Report 2013 8 6
Group Management Report / Outlook Report
Forecasted results of operations for 2014
Reconciliation of the 2013 business figures to IFRS 11:
Group
€ million
Revenue
EBITDA
EBIT
EBT
Group result
Value added
2013 reported figures
Figures adjusted to IFRS 11
Change
Change in %
2,561.4
2,378.2
880.2
528.1
340.7
235.7
1.3
733.3
439.0
331.6
235.7
– 41.5
– 183.2
– 146.9
– 89.1
– 9.1
0.0
– 42.8
– 7.2
– 16.7
– 16.9
– 2.7
–
–
Table 33
The expected positive business development will be reflected in an
between approximately € 780 million and some € 800 million. With
increase in Group revenue in 2014. At the Frankfurt site, the increase
slightly higher depreciation and amortization, growth of up to around
in airport and infrastructure charges in particular, as well as additional
€ 500 million is forecasted for the Group EBIT.
revenue in the Retail and Real Estate divisions, will also have a revenue-
increasing effect over and above the traffic development. Conversely,
Primarily due to the difficulty in predicting interest and exchange rates
particularly lower capacitive capital expenditure in the Group company
effects, the forecast for the Group EBT and result for fiscal year 2014
Twin Star in connection with the application of IFRIC 12 will lead to
is subject to uncertainty. The Executive Board currently assumes that
a reduction in reported Group revenue. Due to a correspondingly
the Group financial result will deteriorate in comparison with 2013,
lower cost of materials, however, this effect will not have any impact
resulting in values forecasted for the Group EBT and Group result that
on Group EBITDA. In total, the Executive Board expects an increase in
are slightly above the previous year.
revenue up to a level of approximately € 2.45 billion.
Adjusted for the effects of the application of IFRIC 12, the Executive
Board intends to hold the dividend per share at least stable for the
Board expects growing expenses in fiscal year 2014, which will result
fiscal year 2014 at € 1.25. The 2014 Group value added will be slightly
from higher traffic-related concessions payments in the Group company
above that of 2013, but remain negative.
In view of the long-term positive outlook for earnings, the Executive
Lima and an expected tariff increase in wages and salaries. In summary,
the Executive Board expects the increase in revenue will be above
Forecasted segment development for 2014
the expense development, meaning that the Group EBITDA will lie
Reconciliation of 2013 segment figures to IFRS 11:
Aviation
€ million
Revenue
EBITDA
EBIT
Value added
Retail & Real Estate
€ million
Revenue
EBITDA
EBIT
Value added
2013 reported figures
Figures adjusted to IFRS 11
Change
Change in %
845.2
205.4
88.1
– 121.7
845.6
205.4
88.1
– 121.7
0.4
0.0
0.0
0.0
0.0
–
–
–
Table 34
2013 reported figures
Figures adjusted to IFRS 11
Change
Change in %
469.0
350.7
267.9
98.1
467.9
350.6
267.8
101.0
– 1.1
– 0.1
– 0.1
2.9
– 0.2
0.0
0.0
3.0
Table 35
Fraport Annual Report 2013
Group Management Report / Outlook Report
87
Ground Handling
€ million
Revenue
EBITDA
EBIT
Value added
External Activities & Services
€ million
Revenue
EBITDA
EBIT
Value added
2013 reported figures
Figures adjusted to IFRS 11
Change
Change in %
656.2
38.2
– 2.3
– 57.8
649.0
32.6
– 6.0
– 60.2
– 7.2
– 5.6
– 3.7
– 2.4
– 1.1
– 14.7
–
–
Table 36
2013 reported figures
Figures adjusted to IFRS 11
Change
Change in %
591.0
285.9
174.4
51.3
415.7
144.7
89.1
30.1
– 175.3
– 141.2
– 85.3
– 21.2
– 29.7
– 49.4
– 48.9
– 41.3
Table 37
The positive passenger development at the Frankfurt site will be
well as price increases for infrastructure charges. The Executive Board
reflected in an increase of up to 5 % in revenue in the Aviation seg-
anticipates that segment EBITDA and EBIT will remain at approximately
ment in 2014. The increase in airport charges by an average of 2.9 %
the same level as the previous year. The value added of the segment will
on January 1, 2014 in particular will have a revenue-increasing effect
be on the previous year’s level and thus remain once again negative.
over and above the traffic development. The higher revenue will impact
the EBITDA and EBIT of the segment, for which growth of up to about
In connection with the positive anticipated business developments
€20 million is forecasted. In 2014, the value added of the segment
at the Group sites outside Frankfurt, an organic growth in revenue is
will be slightly above the previous year’s level, but remain negative.
expected in 2014 for the segment External Activities & Services.
Conversely, lower capacitive capital expenditure in the Group com-
The Retail & Real Estate segment will also benefit in 2014 from the
pany Twin Star in connection with the application of IFRIC 12 will have
higher passenger number, which will primarily impact the develop-
a particular impact and lead to a decline in the reported segment
ment of revenue in the Retail division. Over and above this, the higher
revenue of up to 5 %. Due to the corresponding lower cost of materi-
parking revenue will have a revenue-increasing effect. Conversely,
als, however, this effect will not have any impact on segment EBITDA.
lower proceeds are planned from the realization of land sales. In total,
As a result of the positive organic development of revenue, increases in
a slight increase is expected in revenue, EBITDA and EBIT in 2014.
the single digit million € range are expected for the segment’s EBITDA
In 2014, the value added of the segment will remain at approximately
and EBIT in 2014. The 2014 value added is anticipated to be slightly
the same level as the previous year.
lower than the level of 2013.
There will be a slight increase in revenue in 2014 in the Ground
Forecasted asset and financial position for 2014
Handling segment as a result of the expected traffic development as
Reconciliation of 2013 asset and financial position to IFRS 11:
Asset and financial position
€ million
2013 reported figures
Figures adjusted to IFRS 11
Change
Change in %
Cash flow used in airport operating projects,
other intangible assets, property,
plant and equipment and investment property
Operating cash flow
Free cash flow
Total assets
Shareholders’ equity
Net financial debt
Gearing ratio
501.7
574.8
73.1
9,523.4
3,098.8
2,975.4
101.3 %
437.0
454.1
17.1
8,835.8
3,116.7
2,870.6
97.1 %
– 64.7
– 120.7
– 56.0
– 687.6
17.9
– 104.8
–
– 12.9
– 21.0
– 76.6
– 7.2
0.6
– 3.5
–
Table 38
Consolidated Financial StatementsGroup Management ReportFraport Annual Report 2013
8 8
Group Management Report / Outlook Report
The asset and financial position of the Fraport Group in the 2014 fiscal
In the 2014 fiscal year, the Executive Board again aims to enhance
year will be characterized by a slight decline in capital expenditure
employee satisfaction in the attractiveness as an employer category.
volume as well as the repayment of long-term financial liabilities. The
The objective is to achieve an average grade of better than 3.0. In
capital expenditure focus will continue to be on modernization and
addition, the Executive Board aims to further reduce the number of
maintenance measures as well as preparations for Terminal 3. The
work accidents.
Executive Board continues to examine opportunities for ongoing
improvement of the asset and financial position of Fraport Group.
Medium-term outlook
Fraport expects a sustained recovery of the global economy in the
As a result of the expected positive business development and lower
medium-term as well as an improvement in the economic situation in
cash flow used in investing activities, a slightly improved free cash
the Euro zone in particular. Positive development is also anticipated in
flow is expected in 2014 compared with 2013. Despite the positive
the aviation market, which will also be positive for the Fraport Group’s
development of the free cash flow, the Group’s liquidity in 2014 –
airports. Correspondingly, the Executive Board forecasts positive
due to the dividend distribution for the 2013 fiscal year – is expected
operating performance in all segments in the medium-term. In the
to decline slightly, which will lead to a slight increase in net financial
long-term, the situation in the Ground Handling segment must be
debt. The gearing ratio, however, is forecasted to be slightly below
closely monitored in connection with plans for the further liberali-
the level of 2013. This will be due to the increase in shareholders’
zation of ground handling services (see also the chapter “Risk and
equity as a result of additions to revenue reserves. The total assets in
Opportunities Report” beginning on page 67).
2014 are expected to be slightly lower than the 2013 figure primarily
owing to the repayment of long-term financial liabilities.
The Group interest expenses are expected to fall in connection with
If, in the course of its efforts, Fraport should expand external business
term, the Executive Board therefore anticipates an increase in the
in fiscal year 2014 and carry out relatively large acquisitions, the actual
Group EBT, Group result and value added, in addition to the positive
development of the asset, financial and earnings position could deviate
development of EBITDA and EBIT.
the planned decrease in long-term financial liabilities. In the medium-
significantly from the aforementioned forecast.
In connection with the forecasted business development, the Executive
Forecasted non-financial performance indicators for 2014
Board expects a positive development of the free cash flow at least until
In the 2014 fiscal year, Fraport will continue to focus on the devel-
the start of the construction work on Terminal 3 from around 2015. The
opment of non-financial performance indicators as well as financial
additional liquidity from the free cash flow will first be used to repay
development. In the area of customer satisfaction and product
long-term financial liabilities. In connection with the Group result ris-
quality, the expectation of the Executive Board is still to achieve global
ing in the medium-term and the resulting additions to shareholders’
satisfaction of at least 80 % at the Frankfurt site. While the punctuality
equity, the Executive Board expects a reduction in the gearing ratio
rate is forecasted at an unchanged, high level, the Executive Board
to a value between 80 % and 100 %.
projects baggage connectivity of above 98.5 %. The goal is to achieve
sustainable baggage connectivity of over 98.5 %. A value significantly
The Executive Board aims on the one hand to achieve dividend conti-
above 90 % is expected for equipment availability.
nuity for the dividend payment, in the sense of a minimum dividend,
and on the other hand a participation in Fraport AG’s growing results
for the years.
Furthermore, the focus remains on the development of non-financial
performance indicators. The objective is still to achieve a high level
of customer satisfaction and product quality as well as attractiveness
as an employer.
The aforementioned medium-term outlook is subject to relatively large
acquisition projects in external business.
Fraport Annual Report 2013 Group Management Report / Outlook Report
89
Aggregation of key figures of the business outlook
Value 2013 1)
Outlook 2014
Medium-term outlook
Passengers
Frankfurt: 58.0 million
Increase between 2 % and 3 %
Positive development
Antalya: 26.7 million, Lima: 14.9 million,
Burgas: 2.5 million, Varna: 1.3 million
Growth in Antalya, Lima, Burgas
and Varna
Growth in Antalya, Lima, Burgas and Varna
compared with 2014
Group earnings
Revenue: €2.38 billion
EBITDA: €733.3 million
EBIT: €439.0 million
Result: €235.7 million
Increase up to a level of approximately
€2.45 billion
Between approximately €780 million
and some €800 million
Growth compared with 2014
Growth compared with 2014
Growth up to around €500 million
Growth compared with 2014
Slightly above the previous year
Growth compared with 2014
Fraport segments
Asset and financial position
Value added: –€41.5 million
Slight increase, but still negative
Growth compared with 2014
Aviation: Revenue: €845.6 million,
EBITDA: €205.4 million,
EBIT: €88.1 million
Increase in revenue of up to 5 %, EBITDA
and EBIT increase of up to approximately
€20 million
Growth in revenue, EBITDA and
EBIT in comparison with 2014
Retail & Real Estate: Revenue:
€467.9 million, EBITDA: €350.6 million,
EBIT: €267.8 million
Revenue, EBITDA and EBIT each with
slight increase compared with 2013
Growth in revenue, EBITDA and
EBIT in comparison with 2014
Ground handling: Revenue:
€649.0 million, EBITDA: €32.6 million,
EBIT: –€6.0 million
Slight increase in revenue, EBITDA
and EBIT each approximately
on previous year’s level
Growth in revenue, EBITDA and
EBIT in comparison with 2014
External Activities & Services: Revenue:
€415.7 million, EBITDA: €144.7 million,
EBIT: €89.1 million
Organic growth in revenue and increase
in EBITDA and EBIT in the single digit
million € range
Organic growth in revenue, EBITDA
and EBIT in comparison with 2014
Cash flow used in airport operating
projects, other intangible assets, property,
plant and equipment and investment
property: €437.0 million
Decline in capital expenditure volume
Free cash flow: €17.1 million
Slight improvement
Gearing ratio: 97.1 %
Slight decline
Moderate development until the start
of construction work on Terminal 3
from around 2015
Improvement until the start of construction
work on Terminal 3 from around 2015
Decline at least until the start of construction
work on Terminal 3
Non-financial performance indicators
Global satisfaction of 80 %
At least 80 %
At least 80 %
Punctuality rate of 82.3 %
Aim to remain at a high level
Remain at a high level
Baggage connectivity of 98.4 %
Over 98.5 %
Over 98.5 %
Equipment availability of 94.8 %
Significantly above 90 %
Significantly above 90 %
Employee satisfaction of 3.02
Better than 3.0
Better than 3.0
1,346 work accidents
Further reduction aimed for
Further reduction aimed for
1) In connection with the first-time application of IFRS 11 from January 1, 2014 onwards, the values of the asset,
financial and earnings position in 2013 were adjusted to the new accounting regulation on a pro forma basis.
Table 39
Frankfurt am Main, March 4, 2014
Fraport AG
Frankfurt Airport Services Worldwide
The Executive Board
Dr Schulte
Giesen
Müller
Schmitz
Dr Zieschang
Where the statements made in this document relate to the future rather than the past, these statements are based on a number of assumptions about future events and are subject
to a number of uncertainties and other factors, many of which are beyond the control of Fraport AG Frankfurt Airport Services Worldwide and which could have the effect that the
actual results will differ materially from these statements. These factors include, among others, but are not limited to, the competitive environment in deregulated markets, regula-
tory changes, the success of business operations and a substantial deterioration in basic economic conditions in the markets in which Fraport AG Frankfurt Airport Services Worldwide
and its Group companies operate. Readers are cautioned not to rely to an inappropriately large extent on statements made about the future.
Consolidated Financial StatementsGroup Management ReportFraport Annual Report 2013
9 09 0
Fraport Annual Report 2013
Consolidated Financial Statements
Fraport Annual Report 2013
Consolidated Financial Statements
91
91
Ground Handling
About 27,500,000 baggage items...
Almost every passenger travels with a suitcase. If Fraport takes only departing and transferring passengers into
consideration, this amounted to about 27,500,000 baggage items at Frankfurt in 2013. Once passengers have
checked in their baggage at one of the some 420 check-in desks or baggage drop-off machines, or transfer baggage
has been sent to the baggage conveyor system, the suitcases are screened completely automatically and transported
to the departure loading point via the 81-kilometer baggage conveyor system. Baggage already checked in the
evening before or belonging to passengers who do not have an immediate connecting flight is stored temporarily
in the early bag storage area.
s
t
n
e
m
e
t
a
t
S
l
a
i
c
n
a
n
i
F
d
e
t
a
d
i
l
o
s
n
o
C
Further Information
9 09 0
Fraport Annual Report 2013
Consolidated Financial Statements
...loaded minute by minute
Once the suitcases and bags to be loaded have reached the departure loading point near the respective aircraft
positions, they are removed from the baggage containers by Fraport employees. Thereby the employees sort
first and priority class baggage, as well as transfer baggage and baggage of passengers, who have reached their
destination after the flight, into separate loading units. Fraport loads about 75 baggage items a minute, calculated
on the basis of an average day and the operating times of the airport. On busy days during the summer months,
the figure increases to about 100.
Fraport Annual Report 2013
Consolidated Financial Statements
91
91
Further InformationConsolidated Financial Statements 9 2
Consolidated Financial Statements / Consolidated Income Statement
Consolidated Financial Statements
for the Fiscal Year 2013
Consolidated Income Statement
€ million
Revenue
Change in work-in-process
Other internal work capitalized
Other operating income
Total revenue
Cost of materials
Personnel expenses
Depreciation and amortization
Other operating expenses
Operating result
Interest income
Interest expenses
Result from associated companies
Other financial result
Financial result
Result from ordinary operations
Taxes on income
Group result
thereof profit attributable to non-controlling interests
thereof profit attributable to shareholders of Fraport AG
Earnings per € 10 share in €
basic
diluted
EBIT ( = Operating result)
EBITDA ( = EBIT + Depreciation and amortization)
Notes
2013
2012
adjusted
(5)
(6)
(7)
(8)
(9)
(10)
(11)
(12)
(13)
(13)
(14)
(15)
(16)
(17)
2,561.4
2,442.0
0.6
35.1
34.3
0.5
44.0
55.8
2,631.4
2,542.3
– 613.0
– 946.8
– 352.1
–191.4
528.1
38.8
– 215.8
–13.6
3.2
–187.4
340.7
–105.0
235.7
14.7
221.0
2.40
2.39
528.1
880.2
– 558.1
– 942.9
– 352.7
–192.6
496.0
52.6
– 226.7
11.7
30.5
–131.9
364.1
–112.6
251.5
13.3
238.2
2.59
2.58
496.0
848.7
Table 40
Fraport Annual Report 2013
Consolidated Financial Statements / Consolidated Statement of Comprehensive Income
93
Consolidated Statement of Comprehensive Income
€ million
Group result
Remeasurements of defined benefit pension plans
(Deferred taxes related to those items
Items that will not be reclassified subsequently to profit or loss
Fair value changes of derivatives
Changes directly recognized in equity
thereof realized gains (+)/losses (–)
(Deferred taxes related to those items
Fair value changes of financial instruments held for sale
Changes directly recognized in equity
thereof realized gains (+)/losses (–)
(Deferred taxes related to those items
Currency translation of foreign Group companies
Income and expenses from associated companies accounted
for using the equity method directly recognized in equity
(Deferred taxes related to those items
Items that will be reclassified subsequently to profit or loss
Other result after deferred taxes
Comprehensive income
thereof attributable to non-controlling interests
thereof attributable to shareholders of Fraport AG
2013
235.7
1.9
–1.2
0.7
17.0
– 38.1
55.1
–16.2
– 6.8
0.0
– 6.8
1.0
– 4.1
1.7
– 0.6
30.1
30.8
266.5
14.1
252.4
2012
adjusted
251.5
– 7.1
0.8)
– 6.3
– 62.0
– 29.7
– 32.3
9.6)
14.8
26.6
–11.8
2.4)
– 3.1
– 8.2
1.5)
– 41.9
– 48.2
203.3
13.0
190.3
Table 41
Further InformationConsolidated Financial StatementsFraport Annual Report 2013
9 4
Consolidated Financial Statements / Consolidated Statement of Financial Position
Consolidated Statement of Financial Position as at December 31, 2013
Assets
€ million
Non-current assets
Goodwill
Investments in airport operating projects
Other intangible assets
Property, plant and equipment
Investment property
Investments in associated companies
Other financial assets
Other receivables and financial assets
Income tax receivables
Deferred tax assets
Current assets
Inventories
Trade accounts receivable
Other receivables and financial assets
Income tax receivables
Cash and cash equivalents
Total
Liabilities and Equity
€ million
Shareholders’ equity
Issued capital
Capital reserve
Revenue reserves
Equity attributable to shareholders of Fraport AG
Non-controlling interests
Non-current liabilities
Financial liabilities
Trade accounts payable
Other liabilities
Deferred tax liabilities
Provisions for pensions and similar obligations
Provisions for income taxes
Other provisions
Current liabilities
Financial liabilities
Trade accounts payable
Other liabilities
Provisions for income taxes
Other provisions
Notes
December 31, 2013 December 31, 2012
adjusted
January 1, 2012
adjusted
(18)
(19)
(20)
(21)
(22)
(23)
(24)
(25)
(26)
(27)
(28)
(29)
(25)
(26)
(30)
38.6
1,006.1
57.8
5,988.1
47.7
121.2
727.6
169.8
20.3
43.7
38.6
1,031.2
44.2
5,927.3
34.4
136.6
742.7
117.1
19.5
49.2
38.6
1,067.1
43.6
5,643.8
74.6
138.0
648.6
33.5
29.6
48.2
8,220.9
8,140.8
7,765.6
75.3
181.6
438.4
2.1
605.1
1,302.5
9,523.4
77.7
180.0
385.2
35.0
821.9
1,499.8
9,640.6
81.4
163.9
280.2
6.2
927.1
1,458.8
9,224.4
Notes
December 31, 2013 December 31, 2012
adjusted
January 1, 2012
adjusted
(31)
(31)
(31)
(31)
(32)
(33)
(34)
(35)
(36)
(37)
(38)
(39)
(33)
(34)
(35)
(38)
(39)
922.1
590.2
1,540.8
3,053.1
45.7
3,098.8
4,146.8
50.8
889.4
120.4
26.7
54.1
235.1
921.3
588.0
1,403.2
2,912.5
35.7
2,948.2
4,401.0
64.4
1,006.4
102.5
27.4
80.2
211.2
918.8
584.7
1,327.0
2,830.5
29.4
2,859.9
4,034.0
64.9
1,001.0
110.8
22.9
68.1
201.8
5,523.3
5,893.1
5,503.5
314.9
162.4
178.4
8.1
237.5
901.3
196.6
214.4
163.2
5.3
219.8
799.3
219.9
228.9
187.4
2.4
222.4
861.0
9,224.4
Table 42
Total
9,523.4
9,640.6
Fraport Annual Report 2013
Consolidated Financial Statements / Consolidated Statement of Cash Flows
95
Consolidated Statement of Cash Flows
€ million
Notes
2013
2012
adjusted
Profit attributable to shareholders of Fraport AG
Profit attributable to non-controlling interests
Adjustments for
Taxes on income
Depreciation and amortization
Interest result
Gains/losses from disposal of non-current assets
Others
Fair value changes in associated companies
Changes in inventories
Changes in receivables and financial assets
Changes in liabilities
Changes in provisions
Operating activities
Financial activities
Interest paid
Interest received
Taxes on income paid
Cash flow from operating activities
Investments in airport operating projects
Capital expenditure for other intangible assets
Capital expenditure for property, plant, and equipment
Investment property
Dividends from associated companies
Loans to affiliated companies 1)
Proceeds from disposal of non-current assets
Cash flow used in investing activities
without investments in cash deposits and securities
Financial investments in securities and promissory note loans
Proceeds from disposal of securities and promissory note loans
Decrease of time deposits with a duration of more than three months
Cash flow used in investing activities
Dividends paid to shareholders of Fraport AG
Dividends paid to non-controlling interests
Capital increase
Cash inflow from long-term financial liabilities
Repayment of long-term financial liabilities
Changes in short-term financial liabilities
Cash flow used in/from financing activities
Change in restricted cash
Change in cash and cash equivalents
Cash and cash equivalents as at January 1
(16)
(11)
(13)
(14)
(28)
(25)
(34 – 35)
(37 – 39)
(42)
(19)
(20)
(21)
(22)
(23)
(23)
(24)
(30)
(42)
(31)
(31)
(33)
(42)
(30)
Foreign currency translation effects on cash and cash equivalents
Cash and cash equivalents as at December 31
(42)(30)
1) This refers to joint ventures, associated companies and investments.
221.0
14.7
105.0
352.1
177.0
5.1
5.8
13.6
2.4
25.0
– 87.3
– 27.3
807.1
– 167.3
21.0
– 86.0
574.8
– 107.4
– 8.7
– 362.3
– 23.3
3.0
0.0
5.9
238.2
13.3
112.6
352.7
174.1
– 33.2
1.7
– 11.7
3.7
– 20.6
– 42.7
21.7
809.8
– 167.3
31.8
– 121.3
553.0
– 89.4
– 5.4
– 598.6
– 22.0
6.4
– 31.2
4.0
– 492.8
– 736.2
– 484.6
445.8
251.6
– 280.0
– 563.0
424.0
96.0
– 779.2
– 115.2
– 114.8
– 4.1
2.5
55.1
– 189.4
– 4.0
– 255.1
5.5
45.2
127.1
– 4.9
167.4
– 6.7
2.3
652.7
– 163.7
– 151.6
218.2
3.5
– 4.5
132.8
– 1.2
127.1
Table 43
Further InformationConsolidated Financial StatementsFraport Annual Report 2013
9 6
Consolidated Financial Statements / Consolidated Statement of Changes in Equity
Consolidated Statement of Changes in Equity
€ million
Notes
Issued capital
Capital reserve
Balance as at January 1, 2013 adjusted
Foreign currency translation effects
Income and expenses from associated companies directly recognized in equity
Remeasurements of defined benefit plans
Fair value changes of financial assets held for sale
Fair value changes of derivatives
Other result
Issue of shares for employee investment plan
Management Stock Options Plan
Capital increase for exercise of subscription rights
Distributions
Group result
Consolidation activities/other changes
Balance as at December 31, 2013
Balance as at December 31, 2011
Effects of retrospectively adopting IAS 19R
Balance as at January 1, 2012 adjusted
Foreign currency translation effects
Income and expenses from associated companies directly recognized in equity
Remeasurements of defined benefit plans
Fair value changes of financial assets held for sale
Fair value changes of derivatives
Other result
Issue of shares for employee investment plan
Management Stock Options Plan
Capital increase for exercise of subscription rights
Value of performed services (fair value)
Distributions
Group result
Consolidation activities/other changes
Balance as at December 31, 2012
921.3
588.0
–117.0
1,403.2
2,912.5
2,948.2
–
–
–
–
–
0.0
0.6
0.2
–
–
–
–
–
–
–
–
0.0
1.9
0.3
–
–
–
(31), (32)
922.1
590.2
3.7
– 81.3
918.8
–
584.7
–
918.8
584.7
–
–
–
–
–
0.0
0.5
2.0
–
–
–
–
–
–
–
–
–
0.0
1.8
1.3
0.2
–
–
–
(31), (32)
921.3
588.0
8.4
–117.0
Revenue reserves
Foreign currency
Financial
Revenue reserves
Equity
Non-controlling
Equity (total)
reserve
instruments
(total)
interests
attributable to
shareholders of
Fraport AG
0.4
– 4.7
– 6.3
– 3.1
8.4
– 3.6
–1.1
11.5
–
11.5
– 2.8
– 0.3
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
1,511.8
– 0.4
0.8
–115.2
221.0
0.4
1,618.4
1,384.9
9.1
1,394.0
– 6.3
–
–
–
–
–
–
–
–
–
–
–
–
–114.8
238.2
0.7
1,511.8
2.6
–
–
– 5.8
38.9
35.7
– 78.5
–
– 6.4
– 9.4
– 22.7
– 38.5
–
–
–
–
–
–
–
–
–
–
–
–
–
– 3.6
1.1
0.8
– 5.8
38.9
31.4
–
–
–115.2
221.0
0.4
1,540.8
1,317.9
9.1
– 2.8
– 6.7
– 6.3
– 9.4
– 22.7
– 47.9
–
–
–
–114.8
238.2
0.7
1,403.2
– 3.6
1.1
0.8
– 5.8
38.9
31.4
2.5
0.5
–115.2
221.0
0.4
3,053.1
2,821.4
9.1
– 2.8
– 6.7
– 6.3
– 9.4
– 22.7
– 47.9
2.3
3.3
0.2
– 114.8
238.2
0.7
2,912.5
– 78.5
1,327.0
2,830.5
35.7
– 0.5
– 0.1
– 0.6
– 4.1
14.7
45.7
29.4
–
29.4
– 0.3
– 0.3
– 6.7
13.3
35.7
–
–
–
–
–
–
–
–
–
–
–
–
–
–
– 4.1
1.1
0.7
– 5.8
38.9
30.8
2.5
0.5
–119.3
235.7
0.4
3,098.8
2,850.8
9.1
2,859.9
– 3.1
– 6.7
– 6.3
– 9.4
– 22.7
– 48.2
2.3
3.3
0.2
–121.5
251.5
0.7
2,948.2
Table 44
Fraport Annual Report 2013
Consolidated Statement of Changes in Equity
€ million
Notes
Issued capital
Capital reserve
Income and expenses from associated companies directly recognized in equity
921.3
588.0
Balance as at January 1, 2013 adjusted
Foreign currency translation effects
Remeasurements of defined benefit plans
Fair value changes of financial assets held for sale
Fair value changes of derivatives
Other result
Issue of shares for employee investment plan
Management Stock Options Plan
Capital increase for exercise of subscription rights
Distributions
Group result
Consolidation activities/other changes
Balance as at December 31, 2013
Balance as at December 31, 2011
Effects of retrospectively adopting IAS 19R
Balance as at January 1, 2012 adjusted
Foreign currency translation effects
Remeasurements of defined benefit plans
Fair value changes of financial assets held for sale
Fair value changes of derivatives
Other result
Issue of shares for employee investment plan
Management Stock Options Plan
Capital increase for exercise of subscription rights
Value of performed services (fair value)
Distributions
Group result
Consolidation activities/other changes
Balance as at December 31, 2012
Income and expenses from associated companies directly recognized in equity
(31), (32)
922.1
590.2
918.8
584.7
918.8
584.7
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
0.0
0.6
0.2
0.0
0.5
2.0
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
0.0
1.9
0.3
0.0
1.8
1.3
0.2
(31), (32)
921.3
588.0
Consolidated Financial Statements / Consolidated Statement of Changes in Equity
97
Revenue reserves
Foreign currency
reserve
Financial
instruments
Revenue reserves
(total)
Equity
attributable to
shareholders of
Fraport AG
Non-controlling
interests
Equity (total)
–117.0
1,403.2
2,912.5
1,511.8
–
– 0.4
0.8
–
–
0.4
–
–
–115.2
221.0
0.4
1,618.4
1,384.9
9.1
1,394.0
–
–
– 6.3
–
–
– 6.3
–
–
–
–114.8
238.2
0.7
1,511.8
8.4
– 3.6
–1.1
–
–
–
– 4.7
–
–
–
–
–
–
2.6
–
– 5.8
38.9
35.7
–
–
–
–
–
3.7
– 81.3
11.5
–
11.5
– 2.8
– 0.3
–
–
–
– 3.1
–
–
–
–
–
–
– 78.5
–
– 78.5
–
– 6.4
–
– 9.4
– 22.7
– 38.5
–
–
–
–
–
–
8.4
–117.0
– 3.6
1.1
0.8
– 5.8
38.9
31.4
–
–
–115.2
221.0
0.4
1,540.8
1,317.9
9.1
– 3.6
1.1
0.8
– 5.8
38.9
31.4
2.5
0.5
–115.2
221.0
0.4
3,053.1
2,821.4
9.1
1,327.0
2,830.5
– 2.8
– 6.7
– 6.3
– 9.4
– 22.7
– 47.9
–
–
–
–114.8
238.2
0.7
1,403.2
– 2.8
– 6.7
– 6.3
– 9.4
– 22.7
– 47.9
2.3
3.3
0.2
– 114.8
238.2
0.7
2,912.5
35.7
– 0.5
–
– 0.1
–
–
– 0.6
–
–
– 4.1
14.7
–
45.7
29.4
–
29.4
– 0.3
–
–
–
–
– 0.3
–
–
–
– 6.7
13.3
–
35.7
2,948.2
– 4.1
1.1
0.7
– 5.8
38.9
30.8
2.5
0.5
–119.3
235.7
0.4
3,098.8
2,850.8
9.1
2,859.9
– 3.1
– 6.7
– 6.3
– 9.4
– 22.7
– 48.2
2.3
3.3
0.2
–121.5
251.5
0.7
2,948.2
Table 44
Further InformationConsolidated Financial StatementsFraport Annual Report 2013
9 8
Consolidated Financial Statements / Consolidated Statement of Changes in non-current Assets
Consolidated Statement of Changes in non-current Assets
(Notes 18 to 24)
€ million
Goodwill
Investments
in aiport
operating
projects
Other
intangible
assets
Lands, land
rights and
buildings,
including
buildings on
leased lands
Technical
equipment
and
machinery
Other
equipment,
operating
and office
equipment
Aquisition/production costs
Balance as at January 1, 2013
135.2
1,354.5
140.3
5,699.5
2,939.6
Foreign currency translation effects
Additions
Disposals
Reclassifications
– 15.0
57.1
Balance as at December 31, 2013
135.2
1,396.6
Accumulated depreciation and amortization
Balance as at January 1, 2013
96.6
Foreign currency translation effects
Impairment losses in accordance with IAS 36
Additions
Disposals
Reclassifications
Write-ups
323.3
– 5.6
72.8
– 0.3
8.7
– 20.3
16.0
144.4
96.1
– 0.3
10.9
– 20.1
113.9
– 62.0
106.0
103.4
– 131.8
98.3
5,857.4
3,009.5
2,132.8
1,416.1
148.5
– 52.9
86.7
– 109.1
436.6
– 0.6
27.3
– 50.7
3.8
416.4
274.1
– 0.5
32.4
– 46.6
Balance as at December 31, 2013
96.6
390.5
86.6
2,228.4
1,393.7
259.4
1.1
3,882.6
6.9
70.7
0.0
61.5
Carrying amounts
Balance as at December 31, 2013
38.6
1,006.1
57.8
3,629.0
1,615.8
157.0
586.3
5,988.1
47.7
121.2
59.5
517.3
0.0
123.2
27.6
727.6
Aquisition/production costs
Balance as at January 1, 2012
135.2
1,322.3
136.4
5,273.4
2,567.7
Foreign currency translation effects
Additions
Disposals
Reclassifications
– 6.9
39.1
– 0.1
5.4
– 5.4
4.0
232.8
– 5.1
198.4
86.3
– 40.8
326.4
Balance as at December 31, 2012
135.2
1,354.5
140.3
5,699.5
2,939.6
Accumulated depreciation and amortization
Balance as at January 1, 2012
96.6
Foreign currency translation effects
Impairment losses in accordance with IAS 36
Additions
Disposals
Reclassifications
Write-ups
255.2
– 2.9
71.0
92.8
1,975.0
1,367.2
8.6
– 5.3
154.5
– 2.7
6.0
85.2
– 37.2
0.9
395.7
– 0.2
53.5
– 24.7
12.3
436.6
265.6
– 0.1
32.9
– 24.3
Balance as at December 31, 2012
96.6
323.3
96.1
2,132.8
1,416.1
274.1
1.1
3,824.1
70.7
0.0
61.5
Carrying amounts
Balance as at December 31, 2012
38.6
1,031.2
44.2
3,566.7
1,523.5
162.5
674.6
5,927.3
34.4
136.6
63.0
497.0
0.9
128.4
53.4
742.7
1) This refers to joint ventures, associated companies and investments.
Construc-
tion in
progress
Property,
plant and
equipment
(total)
Investment
Investments
Other
Available
At fair value
Loans to
Other loans
property
in associated
investments
companies
for sale
securities
securities
affiliated
companies 1)
Other
financial
assets
(total)
675.7
9,751.4
40.5
52.4
486.1
0.9
189.9
71.8
207.3
– 1.1
3.4
– 17.7
– 0.1
191.9
52.3
168.2
– 149.0
505.3
– 0.9
0.0
– 5.2
184.7
1.1
3,824.1
70.7
–10.6
–10.9
0.0
61.5
18.4
58.4
150.5
–15.0
– 223.8
587.4
230.3
– 11.5
– 559.0
675.7
– 0.6
395.1
– 259.5
–15.7
9,870.7
– 0.5
0.0
267.6
– 208.6
0.0
0.0
– 0.2
602.9
– 82.1
– 21.9
9,751.4
– 0.1
0.0
272.6
– 64.2
6.9
0.0
14.4
– 0.3
54.6
6.1
0.5
0.3
12.2
– 59.2
40.5
0.3
0.2
– 6.9
– 0.4
6.1
3.4
– 7.2
0.8
–1.9
– 12.0
34.2
1.4
– 19.2
– 10.9
– 2.7
– 10.6
1,015.9
9,252.7
87.5
208.7
52.4
418.9
0.9
161.8
62.1
– 0.3
12.1
– 6.8
– 6.4
318.1
–101.5
–149.4
486.1
207.3
52.4
0.9
189.9
1.1
3,608.9
12.9
70.7
– 7.9
– 27.3
0.0
64.2
18.5
15.0
– 2.1
– 40.2
44.5
– 1.5
16.9
38.7
– 0.8
– 28.2
71.8
– 0.1
18.4
31.2
– 3.1
– 2.7
801.1
0.0
183.2
– 7.4
– 190.1
786.8
0.0
0.0
0.0
0.0
0.8
0.0
59.2
696.1
0.0
388.0
– 105.4
– 177.6
801.1
47.5
0.0
0.0
0.0
31.5
1.4
– 22.0
58.4
Table 45
Fraport Annual Report 2013
Consolidated Financial Statements / Consolidated Statement of Changes in non-current Assets
99
Other
financial
assets
(total)
801.1
0.0
183.2
– 7.4
– 190.1
786.8
Consolidated Statement of Changes in non-current Assets
(Notes 18 to 24)
€ million
Goodwill
Investments
Other
Lands, land
Technical
Other
in aiport
operating
projects
intangible
assets
rights and
buildings,
including
buildings on
leased lands
equipment
equipment,
and
machinery
operating
and office
equipment
Construc-
tion in
progress
Property,
plant and
equipment
(total)
Investment
property
Investments
in associated
companies
Other
investments
Available
for sale
securities
At fair value
securities
Loans to
affiliated
companies 1)
Other loans
Aquisition/production costs
Foreign currency translation effects
Additions
Disposals
Reclassifications
Accumulated depreciation and amortization
Foreign currency translation effects
Impairment losses in accordance with IAS 36
Additions
Disposals
Reclassifications
Write-ups
Carrying amounts
Aquisition/production costs
Foreign currency translation effects
Additions
Disposals
Reclassifications
Accumulated depreciation and amortization
Foreign currency translation effects
Impairment losses in accordance with IAS 36
Additions
Disposals
Reclassifications
Write-ups
Carrying amounts
– 15.0
57.1
323.3
– 5.6
72.8
– 6.9
39.1
255.2
– 2.9
71.0
– 0.3
8.7
– 20.3
16.0
144.4
96.1
– 0.3
10.9
– 20.1
– 0.1
5.4
– 5.4
4.0
8.6
– 5.3
113.9
– 62.0
106.0
103.4
– 131.8
98.3
148.5
– 52.9
86.7
– 109.1
232.8
– 5.1
198.4
86.3
– 40.8
326.4
154.5
– 2.7
6.0
85.2
– 37.2
0.9
436.6
– 0.6
27.3
– 50.7
3.8
416.4
274.1
– 0.5
32.4
– 46.6
395.7
– 0.2
53.5
– 24.7
12.3
436.6
265.6
– 0.1
32.9
– 24.3
Balance as at January 1, 2013
135.2
1,354.5
140.3
5,699.5
2,939.6
675.7
9,751.4
40.5
Balance as at December 31, 2013
135.2
1,396.6
5,857.4
3,009.5
150.5
–15.0
– 223.8
587.4
– 0.6
395.1
– 259.5
–15.7
9,870.7
Balance as at January 1, 2013
96.6
2,132.8
1,416.1
1.1
3,824.1
– 0.5
0.0
267.6
– 208.6
0.0
0.0
14.4
– 0.3
54.6
6.1
0.5
0.3
Balance as at December 31, 2013
96.6
390.5
86.6
2,228.4
1,393.7
259.4
1.1
3,882.6
6.9
70.7
207.3
– 1.1
3.4
– 17.7
– 0.1
191.9
52.3
52.4
486.1
0.9
189.9
71.8
168.2
– 149.0
505.3
– 0.9
0.0
– 5.2
184.7
15.0
– 2.1
– 40.2
44.5
70.7
–10.6
–10.9
0.0
61.5
18.4
58.4
3.4
– 7.2
0.8
–1.9
– 12.0
0.0
61.5
– 1.5
16.9
0.0
0.0
0.0
0.0
0.8
0.0
59.2
Balance as at December 31, 2013
38.6
1,006.1
57.8
3,629.0
1,615.8
157.0
586.3
5,988.1
47.7
121.2
59.5
517.3
0.0
123.2
27.6
727.6
Balance as at January 1, 2012
135.2
1,322.3
136.4
5,273.4
2,567.7
1,015.9
9,252.7
87.5
208.7
52.4
418.9
0.9
161.8
62.1
Balance as at December 31, 2012
135.2
1,354.5
140.3
5,699.5
2,939.6
230.3
– 11.5
– 559.0
675.7
– 0.2
602.9
– 82.1
– 21.9
9,751.4
12.2
– 59.2
40.5
– 0.3
12.1
– 6.8
– 6.4
207.3
52.4
318.1
–101.5
–149.4
486.1
31.2
– 3.1
0.9
189.9
38.7
– 0.8
– 28.2
71.8
Balance as at January 1, 2012
96.6
92.8
1,975.0
1,367.2
1.1
3,608.9
12.9
70.7
– 7.9
– 27.3
0.0
64.2
18.5
Balance as at December 31, 2012
96.6
323.3
96.1
2,132.8
1,416.1
274.1
1.1
3,824.1
– 0.1
0.0
272.6
– 64.2
6.9
0.0
0.3
0.2
– 6.9
– 0.4
6.1
70.7
– 2.7
– 10.6
34.2
1.4
– 19.2
– 10.9
– 2.7
0.0
61.5
– 0.1
18.4
696.1
0.0
388.0
– 105.4
– 177.6
801.1
47.5
0.0
0.0
0.0
31.5
1.4
– 22.0
58.4
Balance as at December 31, 2012
38.6
1,031.2
44.2
3,566.7
1,523.5
162.5
674.6
5,927.3
34.4
136.6
63.0
497.0
0.9
128.4
53.4
742.7
1) This refers to joint ventures, associated companies and investments.
Table 45
Further InformationConsolidated Financial StatementsFraport Annual Report 2013
1 0 0
Consolidated Financial Statements / Segment Reporting
Aviation
Retail &
Real Estate
Ground
Handling
External
Activities &
Services
Adjust-
ments
Segment Reporting
(Note 41)
€ million
Revenue
2013
2012
2013
Other income
2012 adjusted
Third-party revenue
2012 adjusted
2013
Inter-segment revenue
2013
2012
2013
Total revenue
2012 adjusted
Segment result EBIT
2012 adjusted
2013
Depreciation and amortization of
segment assets
2013
2012
2013
EBITDA
2012 adjusted
Share of result from associated
companies accounted for using
the equity method
Book value of segments assets
2013
2012
2013
2012
845.2
823.4
28.0
40.4
873.2
863.8
76.2
73.1
949.4
936.9
88.1
79.6
117.3
122.3
205.4
201.9
0.0
0.0
469.0
452.9
13.0
14.4
482.0
467.3
235.6
217.3
717.6
684.6
267.9
252.8
82.8
82.4
350.7
335.2
0.0
0.0
4,083.5
2,678.5
4,142.0
2,670.9
Segment liabilities
2012 adjusted
2,678.9
1,857.2
2013
2,598.4
1,770.7
Acquisition cost of additions to
property, plant and equipment,
investments in airport operating
projects, goodwill, intangible
assets and investment property
Other significant non-cash
effective expenses
Share of associated
companies accounted for
using the equity method
2013
2012
2013
2012
2013
2012
207.3
290.6
131.4
64.2
0.0
0.0
127.2
199.4
31.3
32.7
0.0
0.0
656.2
649.3
13.0
18.0
669.2
667.3
34.6
31.4
703.8
698.7
– 2.3
– 1.1
40.5
38.9
38.2
37.8
0.9
1.2
744.0
777.6
550.0
566.9
45.4
86.5
11.2
8.3
2.6
2.6
591.0
516.4
16.0
27.5
607.0
543.9
347.3
338.6
954.3
882.5
174.4
164.7
111.5
109.1
285.9
273.8
– 14.5
10.5
1,951.3
1,946.4
1,322.9
1,401.4
95.4
83.1
6.0
3.7
118.6
134.0
–
–
–
–
–
–
– 693.7
– 660.4
– 693.7
– 660.4
0.0
0.0
–
–
–
–
–
–
66.1
103.7
182.6
188.0
–
–
–
–
–
–
Group
2,561.4
2,442.0
70.0
100.3
2,631.4
2,542.3
–
–
2,631.4
2,542.3
528.1
496.0
352.1
352.7
880.2
848.7
– 13.6
11.7
9,523.4
9,640.6
6,424.6
6,692.4
475.3
659.6
179.9
108.9
121.2
136.6
Table 46
Fraport Annual Report 2013
Consolidated Financial Statements / Segment Reporting
101
Geographical information
€ million
Revenue
2013
2012
2013
Other income
2012 adjusted
Third-party revenue
2012 adjusted
2013
Book value of segment assets
Acquisition cost of additions to
property, plant and equipment,
investments in airport operating
projects, goodwill, intangible
assets and investment property
2013
2012
2013
2012
Germany
Rest
of Europe
Asia
Rest
of World
Adjust-
ments
Group
2,037.9
2,000.9
68.2
89.5
2,106.1
2,090.4
7,813.7
7,889.6
110.2
69.8
0.6
0.3
110.8
70.1
410.8
377.9
188.7
164.8
1.0
6.6
189.7
171.4
893.9
926.4
224.6
206.5
0.2
3.9
224.8
210.4
338.9
343.0
–
–
–
–
–
–
66.1
103.7
411.8
614.6
44.4
27.9
6.0
6.3
13.1
10.8
–
–
2,561.4
2,442.0
70.0
100.3
2,631.4
2,542.3
9,523.4
9,640.6
475.3
659.6
Table 47
Further InformationConsolidated Financial StatementsFraport Annual Report 2013
1 0 2
Group Notes / Notes to the Consolidation and Accounting Policies
Group Notes for the Fiscal Year 2013
Notes to the Consolidation and Accounting Policies
1
Basis for the preparation of the consolidated financial statements
Fraport AG Frankfurt Airport Services Worldwide, Frankfurt am Main (hereinafter: Fraport AG), has prepared its con-
solidated financial statements as at December 31, 2013 in accordance with the standards issued by the International
Accounting Standards Board (IASB).
Fraport AG applied the International Financial Reporting Standards (IFRS) for the consolidated financial statements
and the interpretations about them issued by the International Financial Reporting Committee (IFRC) as adopted in
the European Union (EU), in force on the balance sheet date, completely and without any restriction in accounting,
measurement and disclosure in the 2013 consolidated financial statements. Pursuant to Section 315a (1) of the
German Commercial Code (HGB), the supplementary disclosures in the notes to the financial statements were provided
applying Sections 313, 314 of the HGB.
As the capital market-oriented parent company of the Fraport Group, Fraport AG must prepare its consolidated financial
statements in accordance with IFRS pursuant to Directive (EC) No. 1606/2002 of the European Parliament and the
Council dated July 19, 2002 (new version dated April 9, 2008), regarding the application of IFRS.
The consolidated income statement is prepared according to the nature of expenditure method.
The consolidated financial statements are prepared in Euros (€). All figures are in € million unless stated otherwise.
The business activities and the organization of the Fraport Group are presented in the management report.
The consolidated financial statements of Fraport AG for the 2013 fiscal year were approved for publication by the
Executive Board on March 4, 2014.
2
Companies included in consolidation and balance sheet date
Companies included in consolidation and balance sheet date
Fraport AG and all affiliated companies are included in the consolidated financial statements in full and joint ventures are
consolidated on a proportionate basis. Associated companies are in the consolidated financial statements accounted
for using the equity method.
Companies whose financial and business policies can be determined by Fraport AG are considered as affiliated com-
panies. Inclusion in the consolidated financial statements commences on the date when control is obtained. Joint
ventures are directly or indirectly managed by Fraport AG in conjunction with other partners. Associated companies
are Group companies in which Fraport AG has invested and where it is able to exercise major influence on financial
and business policies.
The fiscal year of Fraport AG and all consolidated companies is the calendar year.
Fraport Annual Report 2013 Group Notes / Notes to the Consolidation and Accounting Policies
103
The consolidated financial statements of Fraport AG are dominated by the parent company. The companies included
in the consolidated financial statements changed as follows during the fiscal year 2013:
Companies included in consolidation
Fraport AG
Fully consolidated subsidiaries
Dec. 31, 2012
Additions
Disposals
Dec. 31, 2013
Joint ventures using proportionate consolidation
Dec. 31, 2012
Additions
Disposals
Dec. 31, 2013
Companies consolidated excluding associates on Dec. 31, 2012
Companies consolidated excluding associates on Dec. 31, 2013
Investments in associated companies accounted for using the equity method
Dec. 31, 2012
Additions
Disposals
Dec. 31, 2013
Companies consolidated including associates on Dec. 31, 2012
Companies consolidated including associates on Dec. 31, 2013
Germany
Other countries
Total
1
24
0
0
24
7
0
0
7
32
32
3
0
0
3
35
35
0
13
2
0
15
6
0
– 1
5
19
20
3
0
0
3
22
23
1
37
2
0
39
13
0
– 1
12
51
52
6
0
0
6
57
58
Table 48
The additions to subsidiaries relate to the acquisition of an additional 90 % of the shares in Afriport S.A. and its sub-
sidiary, Daport S.A., which in future will operate Dakar Airport in Senegal. The acquisition and inclusion in the Group
of the capital shares of the companies took place in two steps: as at January 8, 2013, 50 % had been acquired and as
at July 16, 2013, the remaining 40 % had been acquired. The total purchase price of €90 thousand equated to the fair
value of the shares. The inclusion of the companies that are still inactive into the Fraport Group has no material impact
on the consolidated financial statements.
The disposal in the consolidation of the joint ventures relates to the merger, which took place in December 2013, of
IC Ictas Uluslararasi Insaat Sanayi ve Ticaret Anonim Sirketi, Ankara/Turkey, into Fraport IC Ictas Havalimani Isletme
Anonim Sirketi, Antalya/Turkey. The Group-internal process has no impact on the consolidated financial statements.
The companies GCS Gesellschaft für Cleaning Service mbH & Co. Airport Frankfurt/Main KG, Frankfurt am Main, and
FSG Flughafen-Service GmbH, Frankfurt am Main, in which Fraport AG holds 40 % and 33.33 %, respectively, have been
included in the consolidated financial statements as affiliated companies. Due to contractual stipulations, Fraport AG
has actual control over these companies.
Further InformationConsolidated Financial StatementsFraport Annual Report 2013
1 0 4
Group Notes / Notes to the Consolidation and Accounting Policies
Fraport AG holds a 52 % capital share of the company N*ICE Aircraft Services & Support GmbH, Frankfurt am Main.
The company is only included in the consolidated financial statements on a proportionate basis of 52 % due to joint
management and control, which were contractually agreed.
A complete list of shareholdings for the Fraport Group pursuant to Section 313 (2) of the HGB is found at the end
of the Group notes.
The joint ventures have the following proportional impact on the consolidated financial position and the consolidated
income statement (before consolidation adjustments):
Joint ventures
€ million
Non-current assets
Current assets
Shareholders’ equity
Non-current liabilities
Current liabilities
Income
Expenses
2013
2012
551.7
187.1
34.6
612.8
91.4
237.4
172.0
599.8
152.9
–7.2
667.1
92.8
191.0
161.6
Table 49
3
Consolidation principles
Capital consolidation of all business combinations uses the purchase method.
All identifiable acquired assets and the acquired liabilities, including contingent liabilities, are recorded at fair value
on the acquisition date. The acquisition costs for corporate acquisitions correspond to the fair value of the transferred
assets and liabilities. Incidental acquisition costs are recorded as expenses as they are incurred. Conditional purchase
price payments are recorded at fair value on the acquisition date. Subsequent changes in the fair value of a conditional
consideration which is deemed to be an asset or a liability will be recognized either through profit or loss or as a change
in other income. Non-controlling interests are valued at fair value or the corresponding proportion of the identifiable
net assets of the acquired company. In the case of step-by-step company acquisitions, the shares already held in the
acquired company are revalued through profit or loss at fair value on the date that control is obtained.
Goodwill is recorded insofar as the sum of the consideration that is transferred, the amount of all non-controlling interests
in the acquired company and an equity that was previously held and revalued on the acquisition date is higher than the
balance of the acquired and revalued identifiable assets and the revalued acquired liabilities. If the comparison results in
a lower amount, a gain on acquisition at a price below the fair value is recorded after the assigned values are reviewed.
Fraport has included its share of the assets, liabilities and shareholders’ equity (after consolidation) and the income and
expense items of joint ventures using proportionate consolidation in the consolidated financial statements.
Associated companies are in the consolidated financial statements accounted for using the equity method. Initial meas-
urements of associated companies are carried out at fair value at the time of acquisition, similarly to capital consolidation
for subsidiaries and joint ventures. Subsequent changes in the shareholders’ equity of the associated companies and
the follow-up of the difference from initial valuation change the amount accounted for at equity.
Fraport Annual Report 2013
Group Notes / Notes to the Consolidation and Accounting Policies
105
Inter-company profits and losses on trade accounts payable between companies included in the consolidated financial
statements were minimal. Elimination was waived based on immateriality, since the impact on the asset and earnings
position of the Group would have been negligible.
Loans, receivables and liabilities, contingencies and other financial commitments between companies included in
the consolidated financial statements, internal expenses and income as well as income from Group investments are
eliminated.
Currency translation
Annual financial statements of companies outside Germany denominated in foreign currencies are translated on the
basis of the functional currency concept in accordance with IAS 21. The assets and liabilities of the consolidated
companies are translated at the exchange rate on the balance sheet date and equity at the historical exchange rate,
whereas simplifying the expenses and income are translated at annual average exchange rates, since the companies
are financially, economically and organizationally independent. Foreign currency translation differences are included
directly in equity without affecting profit or loss.
The following material exchange rates were used for the currency translation:
Exchange rates
Unit/Currency in €
1 US Dollar (US-$)
1 Turkish New Lira (TRY)
1 Renminbi Yuan (CNY)
1 Hong Kong Dollar (HKD)
1 New Sol (PEN)
100 Russian Roubels (RUB)
Exchange rate
Dec. 31, 2013
Average exchange
rate 2013
Exchange rate
Dec. 31, 2012
Average exchange
rate 2012
0.7264
0.3395
0.1198
0.0937
0.2597
2.2093
0.7530
0.3947
0.1225
0.0971
0.2785
2.3620
0.7579
0.4246
0.1216
0.0978
0.2971
2.4796
0.7783
0.4322
0.1234
0.1003
0.2948
2.5046
Table 50
Business transactions in foreign currencies are accounted at the exchange rate on the date of the business transaction.
Measurement of the resulting assets and liabilities that are nominally bound in the foreign currency on the balance
sheet date takes place at the exchange rate on the balance sheet date. Translation differences were generally recorded
through profit or loss.
4
Accounting principles
Uniform accounting measurement policies
The financial statements of the Fraport Group are based on accounting and measurement policies that are applied
consistently throughout the Group.
The consolidated financial statements are drafted on the basis of historic acquisition and production costs, with the
exception of the fair value of financial assets available for sale and the recognition through profit and loss of the fair
value of original and derivative financial instruments.
Recognition of income and expenses
Revenue and other income are recognized in accordance with IAS 18 when the goods have been delivered or the
service rendered, when it is reasonably probable that an economic benefit will be received and when this benefit
can be quantified reliably. In addition, the significant opportunities and risks must have been transferred to the buyer.
Income and expenses from the same transactions and/or events are recognized in the same period.
Further InformationConsolidated Financial StatementsFraport Annual Report 2013
1 0 6
Group Notes / Notes to the Consolidation and Accounting Policies
Traffic charges for the provision of the airport infrastructure are divided into those subject to regulation (according to
Section 19b (1) of the German Air Traffic Act [LuftVG]), which include, among others, landing and take-off charges,
parking charges, passenger and security charges and other charges not subject to regulation, such as ground handling
services and ground handling infrastructure.
In addition, the Fraport Group mainly generates revenue from revenue-based payments, renting, parking and security
services.
In the context of the airport operating projects in other countries (see also note 49), income and expenses from the
operation of airport infrastructure and the provision of construction and expansion services are generated.
Revenue from the operation of airport infrastructure is recognized in accordance with IAS 18 when the services have
been rendered, when it is reasonably probable that an economic benefit will be received and when this benefit can
be quantified reliably.
Income and expenses from the provision of construction and expansion services are recorded pursuant to IAS 11. The
order costs are expensed as incurred according to IAS 11.32, since the result of production orders cannot be estimated
reliably. Proceeds from production are recorded in the amount of the incurred order costs expected to be recovered.
Judgment and uncertainty of estimates
The presentation of the asset, financial and earnings position in the consolidated financial statements depends on
accounting and valuation methods as well as assumptions and estimates. Actual amounts may deviate from the estimates.
The listed material estimates as well as the uncertainties associated with the accounting and valuation methods selected
are essential in order to understand the underlying risks of financial reporting as well as the impacts these estimates,
assumptions and uncertainties may have on the consolidated financial statements.
These assumptions and estimates relate, among other things, to accounting policies and the measurement of provi-
sions. Material valuation parameters for the measurement of provisions for pensions and similar obligations are the
discount factor as well as trend factors (see also note 37).
When an acquired company is consolidated for the first time, all identifiable assets, liabilities and contingent liabilities
are to be recognized at their fair value at the time of acquisition. One of the main estimates relates to the determina-
tion of the fair value of these assets and liabilities at the time of acquisition. The measurement is usually based on
independent expert reports. Marketable assets are recognized at market or stock exchange prices. If intangible assets
are identified, the fair value is usually measured by an independent external expert using appropriate measurement
methods which are primarily based on future expected cash flows. These measurements are considerably influenced
by assumptions about the developments of future cash flows as well as the applied discount rates.
The impairment test for goodwill and other assets within the scope of IAS 36 is based on assumptions about future
developments. Fraport AG carries out these tests annually as well as when there are reasons to believe that goodwill
has been impaired. In the case of cash generating units, the recoverable amount is determined. This corresponds to the
higher of fair value less costs to sell and value in use. The measurement of the value in use includes adjustments and
estimates regarding the forecasting and discounting of future cash flows. The underlying assumptions could change
on account of unforeseeable events and may therefore impact the asset, financial and earnings positions.
Fraport Annual Report 2013 Group Notes / Notes to the Consolidation and Accounting Policies
107
In connection with the write-down on items of property, plant and equipment in the Ground Handling segment carried
out in previous years (in the amount of € 20.0 million), it may be possible for the underlying assumptions to change in
the future, which would make it necessary to considerably adjust the carrying amounts of these assets.
Deferred tax assets are recognized if it is probable that future tax benefits can be realized. The actual tax earnings
situation in future fiscal years and therefore the actual usability of deferred tax assets could differ from the forecasts at
the time the deferred tax assets are recognized.
In addition, material estimates and assumptions are each presented in relation to the accounting and valuation methods
for specific end-of-year items listed subsequently.
Goodwill
After the initial recognition of goodwill acquired in the course of a business merger (see also note 3), it is measured
at acquisition costs less any accumulated impairment losses.
For the purpose of impairment testing, goodwill acquired in the course of a business merger is assigned to the cash
generating units of the Group on the acquisition date. The Group companies within the Fraport Group constitute inde-
pendent cash generating units to which goodwill is allocated. Goodwill impairment testing is performed by comparing
the recoverable amount of a cash generating unit to its carrying amount, including goodwill. The recoverable amount
corresponds to the higher amount of the fair value less costs to sell and the value in use. Since net selling prices for
the cash generating units in the Fraport Group cannot be reliably determined, the value in use is based on a company
valuation model (discounted cash flow method). All goodwill items are tested for impairment at least once a year in
accordance with IAS 36.88 – 99. In case of an impairment, an impairment loss is recognized. Goodwill is not written
up when the reasons for impairment are eliminated. Goodwill is not subject to regular depreciation and amortization.
Investments in airport operating projects
To allow for better transparency, investments in airport operating projects are presented separately. These consist of
concessions for the operations of the airports in Varna and Burgas (Bulgaria), Lima (Peru) and Antalya (Turkey) acquired
within the scope of service concession agreements (see also note 49). The service concession agreements for the
airport and/or terminal operating projects fall under IFRIC 12.17 and are recognized according to the intangible asset
model, since Fraport receives the right in each case to charge airport users a charge in exchange for the obligation to
pay concession fees and provide construction and expansion services. The contractual obligations to pay concession
fees that are not variable but are fixed in the amount based on the contract are recorded as financial liabilities. These
liabilities are initially recognized at fair value using a risk-adjusted discount rate. Airport operation rights received as
consideration are recorded as intangible assets at the same amount and reported under investments in airport operat-
ing projects. The rights received as consideration for construction and expansion services are recognized at the cost
of productions for the period in which the production costs are incurred. Income and expenses from construction and
expansion services are generally recorded pursuant to IFRIC 12.14 and in accordance with IAS 11.
The recognized financial liabilities are subsequently measured at amortized cost using the effective interest method.
Subsequent measurement of the capitalized rights is at the cost of acquisition or production less cumulative regular
depreciation and amortization over the term of the concessions.
Where necessary, impairment losses are recognized in accordance with IAS 36.
Further InformationConsolidated Financial StatementsFraport Annual Report 2013 1 0 8
Group Notes / Notes to the Consolidation and Accounting Policies
Intangible assets
Acquired intangible assets (IAS 38) are recognized at acquisition cost. Their useful life is limited. They are amortized
over their useful lives using straight-line depreciation and amortization. Where necessary, impairment losses are
recognized in accordance with IAS 36. If the recoverable amount of the asset later exceeds the carrying amount after an
impairment loss has been recognized, the asset is written up to a maximum of the recoverable amount. The write-up
through profit or loss is limited to the amortized carrying amount that would have resulted if no impairment loss had
been recognized in the past.
Property, plant and equipment
Property, plant and equipment (IAS 16) are recognized at the cost of acquisition or production less straight-line
depreciation and amortization and any impairment losses according to IAS 36, where applicable. If the recoverable
amount of the asset later exceeds the carrying amount after an impairment loss has been recognized pursuant to IAS 36,
the asset is written up to a maximum of the recoverable amount. The write-up through profit or loss is limited to
the amortized carrying amount that would have resulted if no impairment losses had been recognized in the past.
Subsequent acquisition costs are capitalized. Production costs essentially include all direct costs including appropri-
ate overheads. Borrowing costs of property, plant and equipment that constitute qualifying assets are recognized
(see “borrowing costs”).
Each part of an item of property, plant and equipment with an acquisition cost that is significant in relation to the total
value of the item is measured and depreciated separately with regard to its useful life and the appropriate deprecia-
tion method.
Government grants and third-party grants related to assets are included in liabilities and are released straight-line over
the useful life of the asset for which the grant has been given. Grants related to income are included as other operating
income through profit or loss (IAS 20).
Investment property
Investment property (IAS 40) includes property held to earn long-term lease revenue or capital appreciation, which
is not owner-occupied; it also consists of land held for a currently undetermined future use.
If land as yet held for an undetermined use is now defined as being held for sale and development has begun, it is
transferred to inventories; if it is intended for owner-occupation, it is transferred to property, plant and equipment.
Investment property is measured initially at the cost of acquisition or production. Subsequent measurement is at the cost
of acquisition or production less regular straight-line depreciation and amortization and impairment losses according
to IAS 36, where applicable. Borrowing costs of investment properties that constitute qualifying assets are recognized
(see “borrowing costs”).
Borrowing costs
Borrowing costs (IAS 23) that relate to the acquisition, construction or production of a qualifying asset are required to
be capitalized as part of the acquisition/production cost of such assets. Due to the scope of Fraport’s capital expendi-
ture, qualifying assets are determined on the basis of planned investment measures. If the volume of the planned
measures exceeds €25 million and if the construction period is more than one year, all assets produced as part of the
measure are recognized as qualifying assets. Fraport includes interest, financing charges in respect to finance leases
and currency differences in borrowing costs to the extent that they are regarded as an adjustment to interest costs.
Fraport Annual Report 2013 Group Notes / Notes to the Consolidation and Accounting Policies
109
Regular depreciation and amortization
Regular depreciation and amortization is determined by the straight-line method on the basis of the following useful
lives, which apply throughout the Group:
Regular depreciation and amortization
Years
Investments in aiport operating projects
Other intangible assets
Buildings (structural sections)
Technical buildings
Building equipment
Ground equipment
Flight operating areas
Take-off/landing runways
Aprons
Taxiway bridges
Taxiways
Other technical equipment and machinery
Vehicles
Other equipment, operating and office equipment
17 – 35
3 – 25
30 – 80
20 – 40
12 – 38
5 – 50
20
50
80
20
3 – 33
4 – 20
4 – 25
Table 51
The expected useful life of investment property corresponds to the expected useful life of the property which is part
of property, plant and equipment.
Impairment losses according to IAS 36
Impairment losses on assets are recognized according to IAS 36. Assets are tested for impairment in case of indica-
tions of an impairment loss. An impairment loss is recognized for assets when the recoverable amount of the asset has
fallen below its carrying amount. The recoverable amount is the higher of an asset’s fair value less costs to sell and its
value in use. The value in use is the present value of the estimated future cash inflows and outflows from the use and
subsequent disposal of the asset.
Regardless of indicators for possible impairment losses, assets are subject to an annual impairment test pursuant to IAS 36.
Since it is not generally possible in the Fraport Group to allocate cash flows to individual assets, so-called cash generating
units are recognized. A cash generating unit is defined as the smallest identifiable group of assets that generates
seperate cash inflows and outflows.
Leasing
Agreements that transfer the right to use a specific asset for a specified period of time in exchange for compensation
are deemed to be leases. Fraport is both a lessor and a lessee. A decision as to whether economic ownership is assigned
to the lessor (operate lease) or the lessee (finance lease) is made based on which party bears the opportunities and
risks associated with the respective leased asset.
Further InformationConsolidated Financial StatementsFraport Annual Report 2013
1 1 0
Group Notes / Notes to the Consolidation and Accounting Policies
Finance lease
If economic ownership can be attributed to the Fraport Group as lessee, the lease is capitalized at the inception of the
lease at the present value of the minimum lease payments plus any incidental costs that are paid or at the fair value of
the lease object if this value is lower. This asset is depreciated straight-line over its useful life or the lease term, if this
is shorter. Impairment losses are recorded against the carrying amount of the capitalized leased asset. If economic
ownership cannot be attributed to the Fraport Group as the lessor, a receivable equivalent to the present value of the
lease payments is recognized.
Operate lease
If economic ownership of the leased assets remains with the lessor and Fraport AG assumes the role of the lessee,
lease payments are considered on a linear basis over the lease term. If Fraport assumes the role of the lessor, leased
assets are capitalized at the cost of acquisition or production and amortized accordingly. Lease revenue is generally
recognized on a linear basis over the lease term.
Investments in associated companies
Investments in associated companies are recognized at the pro rata share of equity, including goodwill.
Other financial assets
Other financial assets include securities, loans with a remaining maturity of more than one year and other investments.
Other financial assets are recognized at fair value on the settlement date, i.e. at the time the asset is created or trans-
ferred plus transaction costs. Non-current low interest or interest-free loans are recognized at their present value. The
securities virtually exclusively constitute debt instruments.
The subsequent measurement of financial assets depends on the respective category according to IAS 39 (see also
note 40).
Loans are assigned to the “loans and receivables” category. These financial instruments are measured at amortized
costs using the effective interest method.
Other investments are assigned to the “available for sale” category on the balance sheet date. Due to a lack of an
active market, they are generally measured at acquisition cost. They will be assigned at fair values as long as they can
be reliably calculated and the gains or losses are included directly in equity without affecting profit or loss.
Other securities are assigned to the “available for sale” category. Subsequent measurement is at fair value, taking into
account the effective interest method and changes in value are included directly in equity without affecting profit or loss.
Inventories
Inventories include work-in-process, raw materials, consumables and supplies and property held for sale within the
normal operating cycle.
Work-in-process and raw materials, consumables and supplies are measured at the lower of acquisition or production
cost or net realizable value. Acquisition or production costs are generally calculated using the average cost method.
Production costs include direct costs and adequate overheads.
Property held for sale within the ordinary course of business is also measured at the lower of acquisition or production
cost or net realizable value.
Fraport Annual Report 2013 Group Notes / Notes to the Consolidation and Accounting Policies
111
The subsequent production cost required for land development is estimated for the entire marketable land area on
the basis of specific cost unit rates for individual development measures. Depending on the land sales recognized in
the respective reporting year, the development costs are allocated on a pro rata basis to the remaining land area to
be sold. Net realizable value is the estimated selling price less the costs incurred until the time of sale, discounted
over the planned selling period.
The opinion of an external expert regarding the fair value of the land being sold, as well as information about previous
land sales, forms the basis for the calculation of the estimated selling price.
Where the inventories constitute qualifying assets (see “borrowing costs”), the borrowing costs are recognized.
If a write-down made in previous periods is no longer necessary, a write-up is recognized (IAS 2).
Receivables and other assets
Receivables and other assets mainly consist of trade accounts receivable, receivables from banks, other receivables,
derivatives and marketable short-term securities. These assets are initially recognized at aqcuistion cost, which is
usually the same as fair value, on the settlement date, i.e. at the time the asset is created or economic ownership is
transferred. Non-current low interest or non-interest bearing receivables are recognized at their present value at the
time of origination or acquisition.
Trade accounts receivable, receivables from banks and all other financial receivables with fixed or ascertainable payments
that are not listed in an active market are assigned to the “loans and receivables” category. Subsequent measurement
is carried out at amortized cost, based on the effective interest method. Receivables in foreign currencies are translated
at the exchange rate on the balance sheet date.
Securities are allocated to the “available for sale” category. The financial debt instruments are measured at fair value,
according to the effective interest method. Changes of value are included directly in equity without affecting profit or loss.
Impairment losses of financial assets
On each balance sheet date, the carrying amounts of financial assets which are not measured at fair value through
profit or loss are assessed to see whether there is any objective evidence (such as considerable financial difficulties of
the debtor, high probability of insolvency proceedings against the debtor, a permanent decline of the fair value below
amortized cost) that the asset may be impaired.
In general, impairment losses are recognized by directly reducing the carrying amount of the receivable or the financial
asset.
The impairment loss of trade accounts receivable is recognized in an item-by-item allowance account through profit
or loss. If there is an indication in subsequent periods that the reasons for an impairment loss no longer exist, a write-
up is recognized through profit or loss. If a receivable already impaired is designated as non-recoverable, the asset is
derecognized.
Cash and cash equivalents
Cash and cash equivalents basically include cash, cash accounts and short-term cash assets with banks maturing in three
months or less. Cash and cash equivalents with a maturity of more than three months from the time of acquisition
are recorded in this item if their values do not fluctuate significantly and they can be liquidated at any time without
deduction for risk. Cash and cash equivalents are recognized at nominal value. Cash in foreign currencies is translated
at the exchange rate on the balance sheet date.
Further InformationConsolidated Financial StatementsFraport Annual Report 2013 1 1 2
Group Notes / Notes to the Consolidation and Accounting Policies
Treasury shares
Repurchased treasury shares are deducted from the issued capital and the capital reserve (IAS 32).
Recognition of income taxes
Income taxes are recognized using the liability method according to IAS 12. All tax expenses and refunds directly
related to income are recorded as income taxes. These also include penalties and interest on arrears from the date it
appears probable that a reduction of taxes will be denied.
Current taxes are recognized on the date when the liability for income taxes is incurred.
Deferred taxes are accounted according to IAS 12 using the liability method based on temporary differences on a case
by case basis. Deferred taxes are recognized for temporary differences between the IFRS and tax financial positions of the
single entities and differences arising from unused loss carry-forwards and consolidation transactions. The recognition
of goodwill that is not deductible for tax purposes does not lead to deferred taxes.
If the carrying amount of an asset in the IFRS financial position exceeds its tax base (e.g. non-current assets depreciated
on a linear basis) and if the difference is temporary, a deferred tax liability is recognized. According to the IFRS deferred
tax assets are recognized for financial position differences and for unused tax loss carry-forwards, to the extent that it is
probable that taxable profit will be available against which the unused tax losses and unused tax credits can be utilized.
Deferred taxes are calculated at future tax rates insofar as these have already been legally established and/or the legis-
lative process is largely completed. Changes in deferred taxes on the financial position generally lead to deferred tax
income or expense. When transactions resulting in a change to deferred taxes are recorded directly in equity without
affecting profit or loss, the change to deferred taxes is also included directly in equity without affecting profit or loss.
Provisions for pensions and similar obligations
The provisions for pensions relate to defined benefit plans and have been calculated in accordance with IAS 19 under
the application of actuarial methods and an interest rate of 3.60 % (previous year: 3.17 %). For the calculation of the
interest expense from the defined benefit plans and the income from plan assets, the same interest rate is used as a
basis. In comparison to the previous year, changes occurred to the standard due to IAS 19 (revised 2011). Net interest
expense/income was introduced, which prescribes the use of the same interest rate for the interest expense and for
income from plan assets. At Fraport, the same interest rate was already used for calculating the interest expense and
income from plan assets in previous years.
Remeasurements, which result from the change of the discount factor or from the difference between actual and com-
puted income from plan assets, for example, are recognized in other comprehensive income (OCI) as non-reclassifiable.
The present value of the defined benefit obligation (DBO) is calculated annually by an independent actuary using the
projected unit credit method. The calculation takes place by discounting the future estimated cash outflows with the
interest rate from industry bonds of the highest creditworthiness. The industry bonds are denominated in the currency
of the distribution amounts and show the relevant maturities of the pension liabilities. If benefit claims from the defined
benefit plans are covered by plan assets in the form of reinsurance, the fair value of the plan assets is netted with the
DBO. Benefit claims that are not covered by plan assets are recognized as a pension obligation.
Fraport Annual Report 2013 Group Notes / Notes to the Consolidation and Accounting Policies
113
As in the previous year, the calculations did not include salary increases for the active members of the Executive Board.
For former members of the Executive Board pensions are valued in accordance of the “Gesetz über die Anpassung
von Dienst- und Versorgungsbezügen in Bund und Ländern 2003/2004” (BBVAnpG). The calculation of provisions for
pensions was based on the 2005G mortality tables of Professor Heubeck.
The service cost and net interest are recognized in personnel expense.
With regard to the description of the various plans, reference is made to note 37 and note 52.
Provisions for taxes
Provisions for current taxes are recognized for tax expected to be payable in the reporting year and/or previous years
taking into account anticipated risks.
Other provisions
Other provisions are recognized in the amount required to settle the obligations. They are recognized to the extent
that there is a current commitment to third parties. In addition, they must be the result of a past event, lead to a future
cash outflow and more likely than not be needed to settle the obligation (IAS 37).
Refund claims towards third parties are capitalized separately from the provisions as “other receivables”, provided that
their realization is virtually certain.
Non-current provisions with terms of more than one year are discounted at a capital market interest rate with a matching
maturity, taking future cost increases into account, provided that the interest effect is material.
The provision for partial retirement is recognized according to IAS 19R. The recognition of the liability from step-ups
starts at the time when Fraport can legally and factually no longer withdraw from the liability. The step-up amounts are
added to the obligation in installments until the end of the active phase. The utilization begins with the passive phase.
Liabilities
Liabilities are recognized in the amount of the consideration received and the received consideration, respectively.
Liabilities in foreign currencies are translated at the exchange rate on the balance sheet date. Non-current low interest
or non-interest-bearing liabilities are carried at their present value at the time of addition.
Finance lease liabilities are reported at the lower value of the present value of the minimum lease payments and the
fair value of the leased asset.
Subsequent measurement of financial liabilities is based on the effective interest method at amortized cost.
Derivative financial instruments, hedging transactions
The Fraport Group basically uses derivative financial instruments to hedge existing and future interest and exchange
rate risks. Derivative financial instruments with positive or negative market values are measured at fair value in accord-
ance with IAS 39. Changes of value on cash flow hedges are recorded in the reserve for financial instruments without
affecting profit or loss. Corresponding to this, deferred taxes on the fair values of cash flow hedges are also included in
shareholders’ equity without affecting profit or loss. The effectiveness of the cash flow hedges is assessed on a regular
basis. Ineffective cash flow hedges are recorded in the income statement through profit or loss.
Further InformationConsolidated Financial StatementsFraport Annual Report 2013 1 1 4
Group Notes / Notes to the Consolidation and Accounting Policies
If the criteria for a cash flow hedge are not met, the derivative financial instruments are allocated to the “held for trading”
category. In this case, the changes in the fair value and the related deferred taxes are recognized through profit or
loss in the income statement.
Derivative financial instruments are recognized at the trade date.
Stock options
The subscription rights issued on shares of Fraport AG in connection with the contingent capital have been recog-
nized and measured in accordance with IFRS 2. Performance takes place by issuing shares. The measurement of the
share-based payments is based on fair value on the date the option is granted. The cost of the payment is allocated as
personnel expense over the period during which employees have an unrestricted claim to the instruments.
Virtual stock options
Virtual stock options are being issued since January 1, 2010 as part of compensation for the Executive Board and Senior
Managers. This virtual stock options program (“Long-term Incentive Program”) replaces the previous stock options
program (Fraport Management Stock Options Plan 2005). They are paid out in cash immediately at the end of the
performance period of four years. The measurement of virtual shares is at fair value according to IFRS 2. Up to the end
of the performance period, the fair value is determined on each reporting date and on the date of performance and
is recorded in personnel expense on a pro rata basis.
New standards, interpretations and changes
Of the new standards, interpretations and changes, Fraport generally applies those for which application was man-
datory; i.e. those applicable to fiscal years beginning on or before January 1, 2013.
On June 16, 2011, the IASB published changes to IAS 1 “Presentation of Financial Statements”. Therefore, the way
other result is presented in the statement of comprehensive income is to be changed. Going forward, the other result
items that will be subsequently reclassified to profit and loss (recycling) should be kept separate from the other result
items that will not be reclassified. If the items are shown gross i.e., without netting with an effect on deferred taxes,
the deferred taxes may no longer be shown as one total; instead, they should be allocated to both groups of items.
The amendment was adopted under EU law on June 6, 2012 and is applicable for the first time for fiscal years starting
on or after July 1, 2012.
On June 16, 2011, the IASB published a revised version of IAS 19 “Employee Benefits”. The amendments were adopted
under EU law on June 6, 2012 and are applicable for the first time for fiscal years starting on or after January 1, 2013.
The previous option of recognizing actuarial gains and losses between immediate recognition in the profit and loss
statement, in other income or delayed recognition according to the corridor approach, was abolished. With the
revision of IAS 19, the actuarial gains and losses must be reported directly under other comprehensive income (OCI)
as remeasurements.
According to the amended standard, return on plan assets is recognized on the basis of standardized interest on the
plan assets at the level of the current discount rate of the pension obligations and recognized together as net interest
expense/net interest income. The calculation of the interest expense and interest income from the plan assets with
the same interest rate was already applied at Fraport AG.
Fraport Annual Report 2013 Group Notes / Notes to the Consolidation and Accounting Policies
115
Furthermore, on the basis of the amendments to IAS 19, the step-up payments of the partial retirement provisions may
no longer be recognized as “Termination Benefits”, but as “Long-Term Employee Benefits”. The recognition of the
liability from step-ups starts at the time when Fraport can legally and factually no longer withdraw from the liability.
The step-up amounts are added to the liability in installments until the end of the active phase.
With regard to the comprehensive additional disclosure duties of the new IAS 19, see note 37.
The adjustments to the opening financial position and the previous year’s financial statement resulting from the retro-
active initial application of IAS 19 are shown in the table below. The initial application of the revised version of IAS 19
takes place in compliance with the transition regulations.
Effects of the retrospective application of IAS 19R
€ million
Dec. 31,
2012
Dec. 31,
2012
Adjustment
Jan. 1,
2012
Jan. 1,
2012
Adjustment
reported
adjusted
reported
adjusted
214.8
106.9
1,317.9
2,821.4
201.8
110.8
1,327.0
2,830.5
– 13.0
3.9
9.1
9.1
Adjustments in consolidated financial position
Other provisions
non-current
Deferred tax liabilities
Revenue reserves
Equity attributable to shareholders of Fraport AG
Adjustments in consolidated income statement
Other operating income
Personnel expenses
Taxes on income
Group result
215.1
101.3
1,400.5
2,909.8
62.7
– 947.8
– 114.5
251.6
211.2
102.5
1,403.2
2,912.5
55.8
– 942.9
– 112.6
251.5
thereof profit attributable to shareholders
of Fraport AG
238.3
238.2
Earnings per €10 share in €
basic
diluted
Adjustments in consolidated statement
of comprehensive income
Remeasurements of defined benefit plans
thereof deferred taxes
Items that will not be reclassified subsequently
to profit or loss
Comprehensive income
thereof attributable to shareholders of Fraport AG
2.59
2.58
2.59
2.58
0.0
0.0
0.0
209.7
196.7
– 7.1
0.8
– 6.3
203.3
190.3
– 3.9
1.2
2.7
2.7
– 6.9
4.9
1.9
– 0.1
– 0.1
0.0
0.0
– 7.1
0.8
– 6.3
– 6.4
– 6.4
For fiscal year 2013, the differences between IAS 19R and the old version of IAS 19, which is no longer used, are of
subordinated significance. The remeasurements of performance-based pension plans that are presented in the state-
ment of comprehensive income would have continued to be recognized in the profit and loss statement according
to the old version.
Table 52
Further InformationConsolidated Financial StatementsFraport Annual Report 2013
1 1 6
Group Notes / Notes to the Consolidation and Accounting Policies
On December 16, 2011, the IASB published amendments to IAS 32 and IFRS 7. The amendment to IAS 32 clarified the
requirements for the offsetting of financial instruments. The definition of the current legal right to offsetting has been
explained and clarified by the amendment. It sets out which gross settlement procedures (in relation to standards)
can be accounted for as net settlements. Given this clarification, the regulations regarding the disclosures in notes
have also been expanded in IFRS 7. The amendments to IAS 32 are to be first applied to fiscal years starting on or after
January 1, 2014. The amendment to IAS 32 will not have a material impact on the reporting of the asset, financial and
earnings position of the Fraport Group. The amendments to IFRS 7 are to be first applied to fiscal years starting on
or after January 1, 2013. The adoption of both amendments under EU law took place on December 29, 2012. The
application of the amendments to IFRS 7 did not have an impact on the reporting of the asset, financial and earnings
position of the Fraport Group.
The standard IFRS 13 “Fair Value Measurement” was published on May 12, 2011. IFRS 13 sets out, in a single standard,
uniform measurement bases to measure fair value. There will be further regulations only for IAS 17 and IFRS 2. According
to IFRS 13, fair value is defined as the price that would be received through selling an asset or the price paid to transfer
a liability. As currently known from the fair value hierarchy of IFRS 7, a three-tiered hierarchy system will be introduced,
that will be ranked according to observable market prices. The new fair value measurement may lead to different values
compared to the previous system. The new standard is to be first applied to fiscal years starting on or after January 1, 2013.
The application of IFRS 13 did not have a material impact on the reporting of the asset, financial and earnings position
of the Fraport Group.
On May 17, 2012, the IASB published the “Improvements to IFRS 2009 – 2011” (Annual Improvements), which amended
five International Financial Reporting Standards (IFRSs). These changes affect the following regulations: IFRS 1 relating
to borrowing costs, IAS 1 for details of comparative information from previous years, IAS 16 regarding the accounting
principles for spare parts and maintenance equipment, IAS 32 regarding the accounting principles for tax effects on
distributions to equity shareholders and transaction costs of an equity transaction and IAS 34 regarding segment
information for the total assets and liabilities within the interim financial reporting. The amendments came into force
for the reporting year that begins on or after January 1, 2013. The Improvements to IFRS 2009 – 2011 did not have a
material impact on the reporting of the asset, financial and earnings position of the Fraport Group.
On December 20, 2010, the IASB published amendments to IAS 12 “Income Taxes”. This is an amendment in regard
to calculating deferred taxes on investment property recognized at fair value (IAS 40.33). The amendments are to be
first applied in fiscal years starting on or after January 1, 2013. In the Fraport Group, investment property is recognized
according to the acquisition cost model (IAS 40.56). The amendments to IAS 12 do not impact the asset, financial and
earning position of the Fraport Group.
On May 29, 2013, the IASB published “Recoverable Amount Disclosures for Non-Financial Assets (Amendments
to IAS 36)”. With the amendments, on the one hand, with IFRS 13, fair value measurement, recently introduced
disclosure requirements in IAS 36 will be corrected, while on the other hand, minor adjustments will take place to the
disclosures required when an impairment loss or write-up exists and the recoverable amount has been determined on
the basis of the fair value less disposal costs. The amendments to IAS 36 are to be first applied on a mandatory basis
in fiscal years starting on or after January 1, 2014, however earlier application is permitted. The application must take
place retrospectively, however, only for reporting periods in which IFRS 13 already applies. The amendment was first
adopted into EU law on December 20, 2013. The amendments will not have a material impact on the reporting of
the net asset, financial and earnings position of the Fraport Group. The change was voluntarily applied in the Fraport
Group as at January 1, 2013. The amendments have not had an impact on the reporting of the asset, financial and
earnings position of the Fraport Group.
Fraport Annual Report 2013 Group Notes / Notes to the Consolidation and Accounting Policies
117
Standards which have not been applied prematurely
For the following new or amended standards and interpretations, which the Fraport Group is not obliged to adopt
until future fiscal years, there will be no early application. Unless otherwise specified, the effects on the Fraport Group’s
financial statements are assessed presently.
Standards, interpretations and amendments published and accepted
into European law by the EU Commission
On May 12, 2011, the IASB published five new and revised standards that amend the regulations on the consolidation
and accounting of associated companies and joint venture investments and the associated disclosures. These are as
follows: IFRS 10 “Consolidated Financial Statements”, IFRS 11 “Joint Arrangements”, IFRS 12 “Disclosure of Interests
in Other Entities”, IAS 27 “Separate Financial Statements” (revised 2011) and IAS 28 “Investments in Associates and
Joint Ventures” (revised 2011).
On December 29, 2012, the EU Commission adopted IFRS 10 “Consolidated Financial Statements”, IFRS 11 “Joint
Arrangements”, IFRS 12 “Disclosure of Interests in Other Entities”, IAS 27 “Separate Financial Statements” and IAS 28
“Investments in Associates and Joint Ventures” into EU law. The standards are to be first applied in fiscal years starting
on or after January 1, 2014. (Voluntary) Early application would be permitted for these new consolidation standards
after EU endorsement. The mandatory initial application for EU IFRS adopters therefore deviates from the IASB effective
date of January 1, 2013.
IFRS 10 replaces the consolidation guidelines in the IAS 27 “Consolidated and Separate Financial Statements” and SIC 12
“Consolidation – Special Purpose Entities”. In the future, the new IAS 27 “Separate Financial Statements” (revised 2011)
will only contain the regulations on accounting for subsidiaries, joint ventures and associated companies in separate
financial statements under IFRS. In the revised IFRS 10, the term “control” has been comprehensively redefined. It now
states that control is given if the potential parent company holds the decision-making power over the subsidiary, based
on voting or other rights, it participates from positive or negative variable returns from the subsidiary and can influence
these returns with its decision-making powers. From this standard, effects on the extent of the scope of consolidation
including, among other things, special purpose entities can arise. In the Fraport Group, no changes to the scope of
consolidation will result from the future application of IFRS 10. While adopting IFRS 11 “Joint Arrangements”, adjustments
were also made to IAS 28. Like before, IAS 28 continues to regulate the application of the equity method. However,
the adoption of IFRS 11 will significantly increase its scope, as in the future all joint ventures and not just investments in
associated companies will have to be accounted for using the equity method. The use of proportionate consolidation
for joint ventures is therefore inapplicable. There are specific transition rules for the transition from proportionate con-
solidation to the equity method. Currently, all joint ventures have been included proportionally in the Fraport Group.
The abolishment of proportionate consolidation and the compulsory use of the equity method for joint ventures will
have a significant impact on the future reporting of the asset, financial and earnings position. The effects of the future
application of IFRS 11 are covered in the report “influence of joint ventures on the consolidated financial statements”
(see note 2) as well as in the business outlook in the management report’s Outlook Report.
IFRS 12 “Disclosure of Interests in Other Entities” summarizes the disclosure regulations for subsidiaries, joint ventures
and associated companies as well as unconsolidated structured entities. The required disclosures are considerably
more extensive compared to the previous requirements of IAS 27, IAS 28 and IAS 31. The objective of IFRS 12 is to
allow the users of financial statements to find the quantitative and qualitative information they require to evaluate the
nature of and risks associated with and the interests in other entities as well as the effects of those interests on the
asset, financial and earnings position.
Further InformationConsolidated Financial StatementsFraport Annual Report 2013 1 1 8
Group Notes / Notes to the Consolidation and Accounting Policies
On June 28, 2012, IASB published amendments to the transitional provisions of IFRS 10, 11 and 12. The amendment
clarifies that the date of the initial application of IFRS 10 is the start of the reporting period in which the standard is first
applied. In addition, the mandatory disclosures of IFRS 12 are only applicable to the immediately preceding period.
Structured companies that are not consolidated are released from the obligation to disclose comparative information
for periods prior to the first application of IFRS 12. The amendments are to be applied in fiscal years starting on or after
January 1, 2014. The amendments were first adopted into EU law on April 5, 2013.
On October 31, 2012, the IASB published the standard “Investment Entities” as a further amendment to IFRS 10, IFRS 12
and IAS 27. The amendments include the definition of terms for investment entities, exempt these investment companies
from the scope of IFRS 10 and provide for mandatory disclosures for investment entities. Investment companies are
exempted from the mandatory inclusion of the companies controlled by them in their consolidated financial statements.
Instead, the shareholdings held for investment purposes shall be valued at fair value through profit and loss. The new
regulations are to be first applied in fiscal years starting on or after January 1, 2014. Earlier application is permitted.
The amendments were first adopted into EU law on November 21, 2013. The amendments will not have an impact
on the reporting of the asset, financial and earnings position of the Fraport Group.
On June 27, 2013, the IASB published amendments to IAS 39 “Novation of Derivatives and Continuation of Hedge
Accounting”. The new regulations envisage that a change of the contracting party of a hedging instrument to a central
counterparty or a member of a central counterparty does not lead to a termination of the hedge accounting under
certain circumstances. Therefore, the hedging relationship can now also be maintained in the event of novation as
a result of the introduction of laws. The application of the new regulations is mandatory for fiscal years beginning
on or after January 1, 2014, retrospectively. Earlier application is permitted. The amendment was first adopted into
EU law on December 20, 2013. The amendments will not have an impact on the reporting of the asset, financial and
earnings position of the Fraport Group.
Standards, interpretations and amendments that have been published
but not yet adopted into European law by the EU Commission
On November 12, 2009, the IASB published IFRS 9 “Financial Instruments: Classification and Measurement” and on
October 28, 2010, it released amendments to the standard. The accounting and measurement of financial instruments
according to IFRS 9 will replace IAS 39. In the future, financial assets will be categorized and measured in two groups
only: at amortized cost and fair value. The amortized cost group of financial assets comprises those financial assets that
are only expected to give rise to interest and redemption payments on specified dates and that will, in addition, be
held in the context of a business model with the objective of retaining assets. All other financial assets will form the fair
value group. Under certain circumstances, financial assets in the first category may – as before – instead be designated
as fair value (fair value option). Value changes of financial assets in the fair value group are to be generally recognized
in profit or loss. For particular equity instruments, it is possible to exercise the right to recognize value changes under
other income. Claims for dividends from these financial assets are, however, to be recognized in profit or loss. The
regulations for financial liabilities are covered principally by IAS 39. The most significant difference concerns the reco-
gnition of value changes in designated financial liabilities measured at fair value. In the future, these will be divided as
follows: The part apportionable to own credit risk is to be recognized under other income, while the remaining part
of value changes is to be recognized in profit or loss. Subject to its adoption into EU law, IFRS 9 is to be first applied
in fiscal years starting on or after January 1, 2015.
Fraport Annual Report 2013 Group Notes / Notes to the Consolidation and Accounting Policies
119
On December 16, 2011, the IASB published the amendments to IFRS 9 and IFRS 7 “Mandatory Effective Date and
Transition Disclosures”. There are to be no adjustments to previous year figures in the first-time application of IFRS 9.
The simplification leads to additional disclosures having to be made in the notes to the annual financial statements in
accordance with IFRS 7 at the time of transition. This should make it possible for investors to assess the effects of the
first-time application of IFRS 9 to the recognition and valuation of financial instruments. Subject to their adoption into
EU law, the amendments are to be first applied to fiscal years starting on or after January 1, 2015.
On November 19, 2013, the IASB published changes to IFRS 9 “Financial Instruments”. The amendments in IFRS 9
contain new regulations regarding hedge accounting in the form of a new general model for accounting for hedging
relationships. Furthermore, IASB has revoked the point in time previously contained in IFRS 9 for its initial application
starting on or after January 1, 2015. A new time for initial application will only be defined once the full standard is
available. An endorsement by the EU is also only anticipated at that time.
The effects of the new IFRS 9 regulation on the consolidated financial statements of Fraport AG are currently still being
assessed.
On May 20, 2013, the IASB published an interpretation on accounting for public levies, IFRIC 21. The interpretation
regulates accounting for payment liabilities for public levies, which are not levies in the sense of IAS 12 “Income Taxes”.
According to IFRIC 21, a liability is recognized in the annual financial statements as soon as the event occurs, which
gives rise to the payment liability. Subject to its adoption into EU law, IFRIC 21 is to be first applied to fiscal years
starting on or after January 1, 2014. The amendments will not have an impact on the reporting of the asset, financial
and earnings position of the Fraport Group.
On November 21, 2013, the IASB published changes to IFRS 19 “Defined Benefit Plans: Employee Contributions”. This
clarifies how contributions that are paid by the employees (or third parties) themselves for the service components
are recorded in the accounting by the company issuing the commitment. In the past, with the application of IAS 19
(old version), the nominal amount of employee contributions was frequently deducted in the period from the service
cost that was rendered in the respective period of service. This accounting practice can be maintained if the amount
of the contributions is independent from the number of years of service. For example, these include amounts that are
defined as a fixed percentage rate of annual salary. The amendments are to be applied to fiscal years starting on or
after July 1, 2014. Earlier application is permitted. The amendments will not have a material impact on the reporting
of the asset, financial and earnings position of the Fraport Group.
On December 12, 2013, the IASB published the “Improvements to IFRS 2010 – 2012” and “Improvements to IFRS
2011 – 2013” (Annual Improvements), which will amend a total of eleven IFRSs. The amendments to the “Improvement
of the IFRS 2010 – 2012” relate to the following in detail: IFRS 1 regarding the definition of “vesting conditions”, IFRS 3
regarding the accounting of conditional purchase price payments for company acquisitions, IFRS 8 regarding notes
disclosures in relation to the merger of business segments and regarding the reconciliation of segment assets to Group
assets, IFRS 13 regarding the omission of discounting current receivables and liabilities, IAS 16 regarding the proporti-
onal adjustment of cumulative depreciation when using the remeasurement method, IAS 24 regarding the definition
of “related companies” and its influence on the interpretation of the term “members of management in key positions”
and IAS 38 regarding the proportional adjustment of cumulative depreciation when using the remeasurement method.
The amendments to the “Improvement of the IFRS 2011 – 2013” relate to the following in detail: IFRS 1 regarding the
definition in IFRS 1.7 of “all IFRS that are valid at the end of the reporting period”, IFRS 3 in respect of the exception
from the application scope for joint ventures, IFRS 13 in relation to the application scope of what is known as the
portfolio exception, and IFRS 40 regarding answering the question of whether the acquisition of investment property
constitutes a merger combination, with the regulations of IFRS 3 being relevant. The amendments come into force
for the reporting years that begin on or after January 1, 2014. The impact of the new regulations on the consolidated
financial statements of Fraport AG are currently being assessed.
Further InformationConsolidated Financial StatementsFraport Annual Report 2013 1 2 0
Group Notes / Notes to the Consolidated Income Statement
Notes to the Consolidated Income Statement
5
Revenue
Revenue
€ million
Aviation
Aiport charges
Security services
Other revenue
Total
Retail & Real Estate
Real Estate
Retail
Parking
Other revenue
Total
Ground Handling
Ground handling services
Infrastructure charges
Total
External Activities & Services
Total
2013
2012
697.2
97.9
50.1
845.2
180.2
198.5
75.1
15.2
469.0
393.7
262.5
656.2
591.0
673.6
98.3
51.5
823.4
175.2
179.8
73.5
24.4
452.9
393.3
256.0
649.3
516.4
2,561.4
2,442.0
Table 53
Information on revenue can be found in the management report under chapter “Results of Operations” as well as the
segment reporting (see also note 41).
The segment Retail & Real Estate includes revenue from operate leases. The revenue-related surface rentals recognized
in the fiscal year amount to € 167.6 million (previous year: € 175.5 million).
The operate leases mainly relate to the leasing of buildings, land, terminal areas and offices. The contract periods end
in 2070 or earlier. No purchase options have been agreed upon. As in the previous year, the residual term of hereditary
building rights contracts was 46 years on average. No purchase options exist for these, either.
The acquisition and production costs of the leased buildings and land amount to € 418.7 million (previous year:
€ 423.2 million). Accumulated depreciation and amortization total € 285.1 million (previous year: € 275.7 million)
and the depreciation and amortization for the 2013 fiscal year amount to € 9.4 million (previous year: € 6.8 million).
Revenue in the External Activities & Services segment includes contract revenue from construction and expansion
services related to airport operating projects abroad in the amount of € 65.7 million (previous year: € 28.7 million).
Fraport Annual Report 2013
Group Notes / Notes to the Consolidated Income Statement
121
The total amount of future income from minimum lease payments arising from non-cancellable leases was as follows:
Minimum lease payments
€ million
< 1 year
1 – 5 years
> 5 years
Residual term
Total
2013
Minimum lease payments
85.6
186.3
856.4
1,128.3
€ million
< 1 year
1 – 5 years
> 5 years
Residual term
Minimum lease payments
76.3
157.4
861.6
Total
2012
1,095.3
Table 54
6
Change in work-in-process
Change in work-in-process
€ million
Change in work-in-process
7
Other internal work capitalized
Other internal work capitalized
€ million
Other internal work capitalized
2013
2012
0.6
0.5
Table 55
2013
2012
35.1
44.0
Table 56
The other internal work capitalized primarily relates to engineering, planning and construction services, procured
services of employees and services of commercial project managers, as well as other performance work. The other
internal work capitalized was incurred essentially in connection with the extension, remodeling and modernization
of the terminal buildings at Frankfurt Airport and their fire protection systems. Other internal work also related to the
airport expansion program and the expansion of the airport infrastructure at Frankfurt Airport.
8
Other operating income
Other operating income
€ million
Release of provisions
Gains from disposal of non-current assets
Income from compensation payments
Release of allowances
Release of special items for investment grants
Passive noise abatement
Other items
Total
2013
2012 adjusted
8.5
3.6
2.6
2.3
1.3
0.0
16.0
34.3
23.4
1.1
1.7
0.8
2.2
8.1
18.5
55.8
Table 57
Further InformationConsolidated Financial StatementsFraport Annual Report 2013
1 2 2
Group Notes / Notes to the Consolidated Income Statement
The release of provisions mainly relates to current provisions for rebates and refunds as well as personnel-related
provisions.
The income from compensation payments mainly relates to proceeds from insurance claims.
9
Cost of materials
Cost of materials
€ million
Cost of raw materials, consumables, supplies and properties held as inventories
Cost of purchased services
Total
2013
2012
– 100.4
– 512.6
– 613.0
– 103.4
– 454.7
– 558.1
Table 58
Among other things, the cost of raw materials, consumables and supplies and properties held as inventories includes
production costs for finished property. The already realized proceeds are included under the real estate revenue.
In connection with the airport operating projects abroad (see also note 49), the expenses of purchased services includes
revenue-related concession fees incurred of € 96.1 million (previous year: € 87.7 million), as well as order costs for
construction and expansion services in the amount of € 65.7 million (previous year: € 28.7 million).
10
Personnel expenses and average number of employees
Personnel expenses and average number of employees
€ million
Wages and salaries
Social security and welfare expenses
Pension expenses
Total
2013
2012 adjusted
–766.7
–137.3
–42.8
–946.8
–764.2
–137.1
–41.6
–942.9
Average number of employees
2013
2012
Permanent staff
Temporary staff (interns, students and scholars)
Total
19,766
1,181
20,947
19,793
1,170
20,963
Table 59
The average number of staff employed during the 2013 fiscal year (excluding apprentices and employees on leave)
was 20,481 in the fully consolidated companies (previous year: 20,535) and 466 in the companies accounted for using
proportionate consolidation (previous year: 428).
Additions to pension provisions and additions to obligations arising from time-account models are included in
personnel expenses.
Fraport Annual Report 2013
11
Depreciation and amortization
Depreciation and amortization
€ million
Composition of depreciation and amortization
Investments in airport operating projects
Other intangible assets
Property, plant and equipment
Investment property
regular
non-regular
Total
Group Notes / Notes to the Consolidated Income Statement
123
2013
2012
– 72.8
– 10.9
– 267.6
– 0.3
– 0.5
– 352.1
– 71.0
– 8.6
– 272.6
– 0.2
– 0.3
– 352.7
Table 60
Regular depreciation and amortization
The useful lives of some assets were remeasured in the year under review, resulting in net reduced depreciation and
amortization of € 0.4 million (previous year: increased depreciation and amortization of € 15.5 million).
Impairment losses according to IAS 36
Impairment tests according to IAS 36 conducted during the year under review resulted in an impairment loss of
€ 0.5 million (previous year: € 0.3 million). All of this is related to investment property. Please refer to note 22 for
more information.
The valuation of assets reflects future earnings expectations. The recoverable amount is the higher of the value in use or
the fair value less cost to sell. Only the value in use was applied in the year under review. The value in use is determined
by the entity applying the discounted cash flow method, as the fair value less cost to sell cannot be reliably determined.
Determination of the future cash flows of the cash generating units is based on the planning figures. The value in use
is generally determined based on the future cash flows estimated on the basis of the current planning figures for the
years between 2014 to 2019 as approved by the Executive Board and in effect at the time the impairment tests are
made (in December of the year under review), and on the basis of the current long-term plans until 2025 or over
the respective contractual periods in the case of investments in airport operating projects. These forecasts are based
on past experiences and the expected market performance. A growth rate (of between 0.0 % and 2.0 %) based on
the planning assumptions is taken into account in the perpetual annuity. The discount factor was a country-specific,
weighted average cost of capital (WACC) of between 6.43 % and 11.33 % (previous year: between 6.2 % and 10.18 %).
Further InformationConsolidated Financial StatementsFraport Annual Report 2013
1 2 4
Group Notes / Notes to the Consolidated Income Statement
12
Other operating expenses
Other operating expenses
€ million
Insurances
Consulting, legal and auditing expenses
Rental and lease expenses
Costs for advertising and representation
Write-downs of trade accounts receivable
Losses from disposal of non-current assets
Other taxes
Expenses from obligations to environmental and local areas
Other items
Total
2013
2012
– 25.5
– 23.7
– 21.4
– 17.0
– 12.3
– 7.0
– 9.7
– 3.8
– 71.0
– 191.4
– 26.1
– 18.9
– 24.7
– 18.5
– 2.0
– 5.5
– 5.8
– 21.0
– 70.1
– 192.6
Table 61
Rental and lease expenses include minimum lease payments in the amount of € 14.9 million (previous year: € 14.6 million).
There were no conditional lease payments in the 2013 fiscal year (previous year: € 3.0 million).
The obligations to environmental and local areas during the previous year included, in particular, provisions for the
financial involvement of Fraport AG in the regional fund launched as part of the Alliance for Noise Abatement 2012,
as well as provisions for promoting environmental projects.
The remaining other operating expenses include travel costs, office supplies, course and seminar fees, entertainment
expenses, administration fees, postage and costs for additions to various provisions.
The consulting, legal and auditing expenses include for the respective Group auditor’s (disclosed in accordance with
Section 314 (1) no. 9 of the HGB) fees amounting to € 2.3 million (previous year: € 1.9 million). They are comprised
as follows:
Group auditor fees
€ million
Audit services
Other certification services
Tax audit services
Other services
Total
2013
Consolidated
companies
2012
Consolidated
companies
Fraport AG
Fraport AG
1.1
0.4
0.0
0.4
1.9
0.4
0.0
0.0
0.0
0.4
1.1
0.2
0.1
0.1
1.5
0.4
0.0
0.0
0.0
0.4
Table 62
13
Interest income and interest expenses
Interest income and interest expenses
€ million
Other interest and similar income
Other interest and similar expenses
2013
2012
38.8
–215.8
52.6
–226.7
Table 63
Fraport Annual Report 2013
Group Notes / Notes to the Consolidated Income Statement
125
Interest income and interest expenses include interest from non-current loans and time deposits as well as interest
expenses and interest income from interest cost added back on non-current liabilities and provisions and on non-
current assets. The net interest payments of derivative financial instruments as well as interest income from securities
are recorded as interest result.
Interest from financial instruments measured at fair value directly recognized in equity
€ million
Interest income from financial instruments
Interest expenses from financial instruments
14
Result from associated companies
The result from associated companies breaks down as follows:
Result from associated companies
€ million
Thalita Trading Ltd./Northern Capital Gateway LLC
Xi’an Xianyang International Airport Co., Ltd.
Airmail Center Frankfurt GmbH
ASG Airport Service Gesellschaft mbH
Flughafen Hannover-Langenhagen GmbH
Total
15
Other financial result
The other financial result breaks down as follows:
Other financial result
€ million
Income
Foreign currency rate gains, unrealized
Foreign currency rate gains, realized
Valuation of derivatives
Gains from disposal of financial assets
Others
Total
Expenses
Foreign currency rate losses, unrealized
Foreign currency rate losses, realized
Valuation of derivatives
Others
Total
Total other financial result
2013
2012
35.9
– 207.6
49.7
– 218.5
Table 64
2013
2012
– 16.4
2.5
0.6
0.3
– 0.6
– 13.6
8.1
2.8
0.7
0.5
– 0.4
11.7
Table 65
2013
2012
2.6
0.8
11.7
0.0
0.5
15.6
– 8.4
– 2.4
0.0
– 1.6
– 12.4
3.2
1.1
15.1
0.4
23.2
4.9
44.7
– 2.8
– 1.1
– 10.0
– 0.3
– 14.2
30.5
Table 66
Further InformationConsolidated Financial StatementsFraport Annual Report 2013
1 2 6
Group Notes / Notes to the Consolidated Income Statement
16
Taxes on income
Income tax expense breaks down as follows:
Taxes on income
€ million
Current taxes on income
Deferred taxes on income
Total
2013
2012 adjusted
– 98.9
– 6.1
– 105.0
– 109.6
– 3.0
– 112.6
Table 67
Current income tax expense consists of current income tax for the year under review and income tax for previous years.
Most of the income tax expense results from the activities of Fraport AG.
Current income tax expense for Fraport AG for the 2013 fiscal year amounts to € 70.6 million (previous year:
€ 80.4 million). This includes the item “taxes relating to previous years” in the amount of € 0.1 million (previous year:
gain of € 6.8 million).
The tax expenses include the corporation and trade income taxes as well as the solidarity surcharge of the companies
in Germany and comparable taxes on income of the foreign companies. The actual taxes result from the taxable results
of the fiscal year and any revisions to previous assessment periods, to which the local tax rates of the respective Group
company are applied.
Deferred taxes are generally measured on the basis of the tax rate applicable in the respective country. A combined
income tax rate of around 31 % including trade tax has been applied to German companies.
Deferred taxes are recognized for all temporary differences between the tax and IFRS financial statements and for the
carry-forwards of unused tax losses.
The Fraport Group had unused tax losses carried forward in the amount of some € 7.9 million as at December 31, 2013,
based on current information, cannot be used (previous year: € 4.8 million). Loss carry-forwards that are not expected
to be utilizable are mainly due to Fraport Immobilienservice und -entwicklungs GmbH & Co. KG and Fraport Cargo
Services GmbH and can be carried forward indefinitely. Essentially for the evaluation of the recoverability of deferred
tax assets is the probability of the future use of the losses carried forward. This depends on whether future taxable
profits will be available in the periods in which the carry forward of unused tax losses can be utilized.
No deferred tax liabilities were recognized for temporary differences in connection with shares in subsidiaries, joint
ventures and associated companies in the amount of € 145.2 million (previous year: € 144.0 million), as Fraport can
control the timing of the reversal and it is not expected that these differences will reverse in the foreseeable future.
These deferred tax liabilities are, however, limited to 1.55 % of the difference as well as local withholding taxes in the
case of future dividend payments from certain foreign subsidiaries. The amounts are not material from the Group’s
point of view.
In addition, deferred taxes also result from consolidation measures. Pursuant to IAS 12, no deferred tax is recognized
with respect to goodwill capitalized or any impairment loss of goodwill.
Deferred tax assets and liabilities are netted insofar as these tax claims and liabilities relate to the same tax authority
and to the same taxable entity or a group of different taxable entities that, however, are assessed jointly for income
tax purposes.
Fraport Annual Report 2013
Group Notes / Notes to the Consolidated Income Statement
127
Deferred taxes resulting from temporary differences between tax bases and assets/liabilities accounted according
to IFRS are assigned to the following financial position items:
Allocation of deferred taxes
€ million
2013
Deferred tax
assets
Deferred tax
liabilities
Deferred tax
assets
Property, plant and equipment including investments
in airport operating projects
Financial assets
Receivables and other assets
Accruals
Provisions for pensions and similar obligations
Other provisions
Liabilities
Derivatives
Losses carried forward
Total individual financial statements
Offsetting
Consolidation measures
Consolidated statement of financial position
2.0
0.2
34.0
31.1
4.6
58.3
156.9
36.7
1.1
324.9
– 281.4
0.2
43.7
– 280.5
– 0.8
– 29.3
– 2.1
0.0
– 53.9
– 15.1
– 2.9
0.0
– 384.6
281.4
– 17.2
– 120.4
2.4
0.0
22.8
31.3
3.9
49.1
165.6
51.5
1.3
327.9
– 278.7
0.0
49.2
2012
Deferred tax
liabilities
(adjusted)
– 282.0
0.0
– 18.9
– 0.7
0.0
– 41.7
– 14.1
– 4.2
0.0
– 361.6
278.7
– 19.6
– 102.5
Table 68
In the fiscal year, deferred taxes decreasing equity in the amount of € 15.2 million (previous year: deferred taxes
increasing equity in the amount of € 12.0 million) from the change in the fair values of derivatives and securities were
recognized directly in equity without affecting profit or loss. Further equity-decreasing deferred taxes amounting to
€ 1.2 million (previous year: equity-increasing deferred taxes amounting to € 0.8 million) resulted from the remeasure-
ment of defined benefit plans.
The following reconciliation shows the relationship between expected tax expense and tax expense in the consolidated
income statement:
Tax reconciliation
€ million
Earnings before taxes on income
Expected tax income/expense 1)
Tax effects from differences in foreign tax rates
Taxes on non-deductible operating expenses
Taxes relating to previous years
Permanent differences including non-deductible tax provisions
Tax effects on tax-free and taxable income from other periods
First-time application of deferred taxes on losses carried forward
Trade tax and other effects from local taxes
Others
Taxes on income according to the income statement
1) Expected tax rate around 31 %, for corporation tax 15.0 % plus solidarity surcharge 5.5 % and trade tax
of around 15.5 %.
The consolidated tax rate for the 2013 fiscal year is 30.8 % (previous year: 30.9 %).
2013
2012 adjusted
340.7
– 105.6
12.7
– 1.5
0.0
– 6.0
– 1.7
0.0
– 5.3
2.4
– 105.0
364.1
– 112.9
11.0
– 2.4
– 6.8
– 12.2
15.2
– 0.1
– 5.2
0.8
– 112.6
Table 69
Further InformationConsolidated Financial StatementsFraport Annual Report 2013
1 2 8
Group Notes / Notes to the Consolidated Income Statement / Notes to the Consolidated Financial Position
17
Earnings per share
Earnings per share
2013
2012
adjusted
2012
reported
Basic
Diluted
Basic
Diluted
Basic
Diluted
Group result attributable to
shareholders of Fraport AG (€ million)
221.0
221.0
238.2
238.2
238.3
238.3
Weighted average number of shares
92,173,637
92,532,887
92,012,909
92,443,382
92,012,909
92,443,382
Earnings per €10 share in €
2.40
2.39
2.59
2.58
2.59
2.58
Table 70
The basic earnings per share for the 2013 fiscal year were calculated using the weighted average number of floating
shares corresponding to a € 10 share of the capital stock each. Due to the capital increase, the number of floating shares
during the period rose from 92,134,391 to 92,212,289 as at December 31, 2013. With a weighted average number
of 92,173,637 shares, the basic earnings per € 10 share amounted to € 2.40.
As a result of the rights granted to employees to buy shares (authorized capital) within the scope of the employee
investment plan and of the issue of subscription rights in connection with the stock options plan (contingent capital),
the diluted number of shares amounts to 92,532,887 (weighted average) and the diluted earnings per € 10 share are
therefore € 2.39.
Notes to the Consolidated Financial Position
A breakdown and the development of the individual non-current asset items can be found in the consolidated statement
of changes in non-current assets.
18
Goodwill
Goodwill arising from consolidation developed as follows:
Goodwill
€ million
Antalya Group
FraSec
Media
Total
Carrying amount
Dec. 31, 2013
Carrying amount
Dec. 31, 2012
15.9
22.4
0.3
38.6
15.9
22.4
0.3
38.6
Table 71
Fraport Annual Report 2013
Group Notes / Notes to the Consolidated Financial Position
129
19
Investments in airport operating projects
Investments in airport operating projects
€ million
Dec. 31, 2013
Dec. 31, 2012
Investments in airport operating projects
1,006.1
1,031.2
Table 72
Investments in airport operating projects comprise concession payments capitalized due to the application of IFRIC 12
(see also note 4 and note 49) of € 807.0 million (previous year: € 785.0 million) and incurred capital expenditure
of € 199.1 million (previous year: € 246.2 million). They relate to the terminal operation at Antalya Airport at
€ 548.0 million (previous year: € 597.8 million) and the concession airports in Lima at €2 62.8 million (previous year:
€ 274.7 million) and in Varna and Burgas at € 195.3 million (previous year: € 158.7 million).
20
Other intangible assets
Other intangible assets
€ million
Other intangible assets
Other intangible assets essentially relate to software.
21
Property, plant and equipment
Property, plant and equipment
€ million
Land, land rights and buildings, including buildings on leased lands
Technical equipment and machinery
Other equipment, operating and office equipment
Construction in progress
Total
Dec. 31, 2013
Dec. 31, 2012
57.8
44.2
Table 73
Dec. 31, 2013
Dec. 31, 2012
3,629.0
1,615.8
157.0
586.3
5,988.1
3,566.7
1,523.5
162.5
674.6
5,927.3
Table 74
Additions to property, plant and equipment in the 2013 fiscal year amounted to € 395.1 million, of which €179.5 million
was from projects related to the capacitive expansion of Frankfurt Airport and € 56.9 million related to Pier A-Plus, which
opened in October 2012, and its associated infrastructure.
Borrowing costs totaling € 17.5 million were capitalized (previous year: € 27.4 million). Of this amount, € 15.6 million
was used for capital expenditure whose financing could not be clearly classified for the purpose of creating a specific
qualifying asset (previous year: € 18.2 million). The cost of debt for general project financing was approximately 4.3 %
on average (previous year: approximately 4.7 %). Borrowing costs were mainly incurred for projects relating to the
capacitive expansion of Frankfurt Airport.
Borrowing costs of € 1.9 million were recognized for the specific financing of the New Passenger Terminals and the
runways in Varna and Burgas (previous year: € 1.0 million). The average cost of debt for this project was around 4.2 %
(previous year: 3.8 %).
Further InformationConsolidated Financial StatementsFraport Annual Report 2013
1 3 0
Group Notes / Notes to the Consolidated Financial Position
As at the balance sheet date, property, plant and equipment with a carrying amount totaling € 18.7 million carry
mortgages (previous year: € 22.9 million).
Assets from finance lease contracts amounting to € 57.0 million were recognized in property, plant and equipment,
as well as other intangible assets, in the year under review (previous year: € 69.5 million):
Finance lease contracts (2013)
€ million
Carrying amount
Jan. 1, 2013
Additions
Disposals Depreciation and
amortization
Carrying amount
Dec. 31, 2013
Other intangible assets
Land, land rights and buildings,
including buildings on leased lands
Technical equipment and machinery
Other equipment, operating
and office equipment
Total
Finance lease contracts (2012)
0.1
24.9
44.2
0.3
69.5
0.0
0.3
0.0
3.6
3.9
0.0
0.0
6.4
0.0
6.4
0.1
2.6
7.1
0.2
10.0
0.0
22.6
30.7
3.7
57.0
Table 75
€ million
Carrying amount
Jan. 1, 2012
Additions
Disposals Depreciation and
amortization
Carrying amount
Dec. 31, 2012
Other intangible assets
Land, land rights and buildings,
including buildings on leased lands
Technical equipment and machinery
Other equipment, operating
and office equipment
Total
0.2
27.4
47.1
0.4
75.1
0.0
0.0
4.3
0.0
4.3
0.0
0.0
0.0
0.0
0.0
0.1
2.5
7.2
0.1
9.9
0.1
24.9
44.2
0.3
69.5
Table 76
Other intangible assets include an agreement on the use of software licenses which become the property of Fraport AG
after the contract expires. The contract expired in 2013.
Land, land rights and buildings, including buildings on leased lands, include an energy plant located on the premises
of Fraport AG. Given the exclusive use by Fraport AG and the existence of a special lease contract, Fraport AG is considered
to be the beneficial owner of the plant. The contract expires in 2020.
This item also includes a cargo handling and office building leased by Fraport Cargo Services GmbH to the end of
the year 2023. The contract includes two options to extend the term of the lease for five additional years each. Since
virtually all economic rights and obligations have been transferred and the contract term exceeds the material portion
of the useful life, beneficial ownership of the building is assigned to the tenant.
Technical equipment and machinery includes an IT service agreement with the operational services GmbH & Co. KG
for the provision of an IT structure on the Frankfurt Airport site and related services. As the network is located on the
premises of Fraport AG and is of no reasonable commercial use to any other party, Fraport AG is considered to be the
beneficial owner. Technical equipment and machinery also includes another IT service agreement with operational
services GmbH & Co. KG for the provision of server and data storage capacities. The computer center required for this
purpose is located on the premises of Fraport AG and Fraport AG is the sole recipient of the server and data storage
services. Both contracts run until 2018. After an inventory taken at the lessor in the 2013 fiscal year, the quantity of
infrastructure supplied during the year under review declined, so the leases were adjusted accordingly.
Fraport Annual Report 2013
Group Notes / Notes to the Consolidated Financial Position
131
Most of the remaining lease contracts relate to special vehicles. They expire between 2014 and 2015. In the fiscal
year, outstanding liabilities of some special vehicles were repaid early, which led to a disposal of € 2.8 million, as it was
contractually agreed that the transfer of the property would take place on full settlement.
The additions of € 3.6 million in other equipment, operating and office equipment result from a sale and lease back
transaction with nine special vehicles with SüdLeasing GmbH, Stuttgart, in the fiscal year. Upon the sale of the special
vehicles acquired in 2012 to SüdLeasing GmbH, they are leased back until April 30, 2023. As the minimum lease term
covers the most of the remaining useful life, the agreement has been classified as a finance lease.
22
Investment property
Investment property includes land and buildings situated in direct vicinity to the airport, which are classified as follows:
Investment property
€ million
Undeveloped land – Level 2
Undeveloped land – Level 3
Developed land – Level 3
Total
Carrying amount
Dec. 31, 2013
Carrying amount
Dec. 31, 2012
Fair value
Dec. 31, 2013
Fair value
Dec. 31, 2012
3.0
8.1
36.6
47.7
3.0
8.1
23.3
34.4
3.0
9.3
43.0
55.3
3.0
9.0
29.7
41.7
Table 77
Undeveloped land – level 2 is agricultural land in the Kelsterbach district which is partly located in a bird sanctuary.
The fair value of the land is calculated internally using the comparative value procedure pursuant to the Real Estate
Valuation Regulation of May 19, 2010 (ImmoWertV) applicable in Germany based on the standard ground values
published by a committee of experts.
The fair value of the undeveloped land – level 3 is also calculated internally using the comparative value procedure.
The square meter prices of real estate transactions currently being carried out in the same land-use area are, however,
not observable on the market. The land is in the immediate vicinity of Frankfurt Airport.
The developed land – level 3 comprises real estate leased for residential purposes from the voluntary purchase pro-
gram for real estate in Flörsheim in the flight zone of Runway Northwest and commercially leased real estate with low
flight altitude in Kelsterbach. In addition, this class includes commercially used real estate with third-party hereditary
building rights.
The fair values are calculated by independent assessors partly using the capitalization of earnings method pursuant to
ImmoWertV and partly using the discounted cash flow method. As key input parameters in the capitalization of earn-
ings method can be mentioned the multiplier, depending on the useful life and property yields, and the underlying
annual rent. The fair value of two buildings was below their carrying amount in the fiscal year, meaning that impairment
losses totaling € 0.5 million were recognized (previous year: € 0.3 million).
With regard to the valuation of the purchase program for real estate, the discounted cash flow method is used based
on a perpetual annuity. The key input parameters here are the discount rate, the sustainable market rent, the assumed
remaining useful life, predicted maintenance costs and the anticipated development in rents.
Further InformationConsolidated Financial StatementsFraport Annual Report 2013
1 3 2
Group Notes / Notes to the Consolidated Financial Position
The additions for the year under review were primarily from the voluntary purchase program for real estate in Flörsheim
at € 14.4 million.
Foreseeable restrictions on the disposal of major parts of the investment property arise from the fact that these areas
are located in the immediate vicinity of Runway Northwest.
Lease revenue from investment property during the 2013 fiscal year amounted to € 2.1 million (previous year:
€ 1.2 million). The total costs incurred for the maintenance of investment property totaled € 0.9 million (previous year:
€ 0.6 million), of which € 0.2 million (previous year: € 0.2 million) was incurred for property for which no lease revenue
was earned during the fiscal year.
Obligations for the acquisition of investment property amounted to € 1.4 million at the balance sheet date (previous year:
€ 1.5 million).
23
Investments in associated companies
Investments in associated companies
€ million
Dec. 31, 2013
Dec. 31, 2012
Xi’an Xianyang International Airport Co., Ltd.
Flughafen Hannover-Langenhagen GmbH
Airmail Center Frankfurt GmbH (ACF)
ASG Airport Service Gesellschaft mbH
Thalita Trading Ltd./Northern Capital Gateway LLC
Tradeport Hong Kong Ltd.
Total
104.2
14.4
1.8
0.8
0.0
0.0
121.2
104.8
15.2
1.7
0.9
14.0
0.0
136.6
Table 78
The additions in the consolidated statement of changes in non-current assets include not only shareholdings acquired,
but also positive results of Group companies; the disposals include dividend distributions (in 2013: Xi’an with € 2.0 million,
ASG with € 0.5 million and ACF with € 0.5 million) and negative results.
For Tradeport Hong Kong Ltd., Hong Kong, the cumulative amount of unrecorded pro-rata losses was – € 1.8 million
as at December 31, 2013 (previous year: – € 2.4 million). The proportionate result in the reporting period total
+ € 0.5 million (previous year: + € 0.5 million). At Northern Capital Gateway LLC, further proportionate losses of € 0.6 million
were no longer recognized in the reporting year.
Additional summarized financial information regarding the associated companies is found in the following table. This
information refers to 100 % of the shares in associated companies.
Financial information regarding associated companies
€ million
Assets
Shareholders’ equity
Liabilities
Total income
Result of the period
Dec. 31, 2013
Dec. 31, 2012
2,389.8
552.2
1,837.6
938.1
– 35.0
2,163.3
596.5
1,566.8
910.5
37.8
Table 79
Fraport Annual Report 2013
24
Other financial assets
Other financial assets
€ million
Available for sale financial assets
Securities of non-current assets
Other investments
Fair value option
Securities
Loans
Loans to affiliated companies
Other loans
Total
Group Notes / Notes to the Consolidated Financial Position
133
Dec. 31, 2013
Dec. 31, 2012
517.3
59.5
497.0
63.0
0.0
0.9
123.2
27.6
727.6
128.4
53.4
742.7
Table 80
Financial investments of € 168.2 million in securities which were classified as available for sale were made in the year
under review. Other changes resulted from reclassifications to current other financial assets due to securities of
€ 149.1 million maturing in 2014 and changes arising from measurement of – € 1.9 million.
Investment securities include fund units that have been acquired exclusively for the insolvency protection of credits
from the time-account models and partial retirement claims in particular of employees of Fraport AG. In fiscal year 2013,
fund units were decreased by € 7.1 million (previous year: increase of € 5.7 million), bringing the total acquisition cost
to € 57.6 million (previous year: € 64.0 million). These securities are measured at fair value and credited against the
corresponding provisions in the amount of € 54.2 million (previous year: € 65.9 million) (see also note 39). At year end,
there was an overfunding from fund units of € 4.6 million (previous year: € 2.5 million).
The change in other investments of the “available for sale” category relates to shares in Delhi International Airport
Private Ltd., New Delhi, India, for which there was a newly derived price as fair value in the year under review.
Changes in other loans mainly relate in the amount of € 15.0 million to additions resulting from financial investments
in promissory note loans. Maturing promissory note loans in the amount of € 40.2 million were reclassified under
current other financial assets.
As in the previous year, loans to affiliated companies of € 120.3 million relate to a shareholder loan to Northern Capital
Gateway LLC (NCG), St. Petersburg, Russia. The Federal Republic of Germany has assumed a guarantee for direct invest-
ments abroad for this shareholder loan. Should the loan be canceled prior to maturity, the interests of the Federal
Republic of Germany must be considered in order to protect the guarantee claims.
Further InformationConsolidated Financial StatementsFraport Annual Report 2013
1 3 4
Group Notes / Notes to the Consolidated Financial Position
25
Non-current and current other receivables and financial assets
Non-current and current other receivables and financial assets
€ million
Residual term
Total
Residual term
Total
up to 1 year
over 1 year
Dec. 31,
2013
up to 1 year
over 1 year
Dec. 31,
2012
Receivables from joint ventures
Receivables from associated companies
Receivables from other investments
Financial assets available for sale
Refunds from “Passive noise abatement”
Other assets
Accruals
Total
thereof financial assets
0.3
0.7
0.6
304.0
12.7
107.0
13.1
438.4
376.4
4.7
29.6
–
–
109.5
1.7
24.3
169.8
36.0
5.0
30.3
0.6
304.0
122.2
108.7
37.4
608.2
412.4
3.6
0.8
2.2
265.4
12.0
90.7
10.5
385.2
328.7
–
18.1
–
–
73.5
–
25.5
117.1
18.1
3.6
18.9
2.2
265.4
85.5
90.7
36.0
502.3
346.8
Table 81
Accruals essentially relate to grants given for construction costs. At Fraport AG, grants given for construction costs are
mainly awarded to utility companies installing facilities to meet the specialized requirements of Fraport AG. The utility
companies own the utility equipment.
The financial assets in the available for sale category include securities with a remaining maturity of up to one year. The
change resulted both from reclassification from other financial assets based on maturity and from additions amount-
ing to around € 448.0 million as well as disposals of the securities which matured in the reporting year amounting to
around € 390.0 million.
Other assets include promissory note loans with a remaining maturity of up to one year amounting to around
€ 40.1 million (previous year: € 28.1 million).
No effects arose from changes in credit ratings as the credit ratings of the issuers and issues did not change.
The item refunds from “Passive noise abatement” includes the expected full reimbursement amount from noise abate-
ment charges from the airlines, which was recognized as other assets in compliance with IAS 37.53 in connection
with the provisions created for the obligation of Fraport AG to reimburse costs for noise abatement construction
measures. The value was determined based on the estimated expenses for reimbursing the costs of noise abatement
construction measures. In fiscal year 2013, due to the adoption of the draft of the third regulation for the execution of
the Act for Protection against Aircraft Noise (Außenwohnbereichsentschädigungs-Verordnung), there was a present
value increase in the refund claim of € 48.3 million. More information about the corresponding present value increase
in other provisions can be found in note 39.
Where applicable, the appropriate allowance was recognized for other receivables and financial assets as at the reporting
date. The allowance made in this fiscal year was € 5.7 million (previous year: € 0.1 million). There are no other material
past due items.
26
Income tax receivables
Income tax receivables
€ million
Residual term
Total
Residual term
Total
up to 1 year
over 1 year
Dec. 31,
2013
up to 1 year
over 1 year
Dec. 31,
2012
Income tax receivables
2.1
20.3
22.4
35.0
19.5
54.5
Table 82
Fraport Annual Report 2013
Group Notes / Notes to the Consolidated Financial Position
135
The major item in income tax receivables relates to the corporation tax credit capitalized in the 2006 fiscal year.
On December 12, 2006, the revised Section 37 of the German Corporation Tax Act (KStG) became legally effective in
connection with amendments to the law based upon the departmental draft of SE-Introductory Legislation (SEStEG).
According to Section 37 (4) of the KStG (new version), the corporation tax credit of Fraport AG had last to be estab-
lished on December 31, 2006. In accordance with Section 37 (5) of the KStG (new version), Fraport AG is entitled
to a refund of its corporation tax credit in ten equal annual installments during a payout period from 2008 to 2017.
The refund claim accrued after the end of December 31, 2006 and is non-interest bearing. The first installment was
refunded in 2008 and is payable on September 30 of each year.
The corporation tax credit totaled € 24.4 million as at December 31, 2013 (previous year: € 30.5 million), which was
discounted at a rate of 3.75 % due to its long-term nature. The present value of this claim to a tax refund amounts to
€ 20.3 million as at the balance sheet date (previous year: € 24.9 million). Economically, this refund claim is an overpay-
ment within the meaning of IAS 12.12.
27
Deferred tax assets
Deferred tax assets
€ million
Deferred tax assets
Dec. 31, 2013
Dec. 31, 2012
43.7
49.2
Table 83
Deferred tax assets are recognized in accordance with IAS 12. Further explanations are given in the “taxes on income”
section (see note 16).
28
Inventories
Inventories
€ million
Land and buildings for sale
Raw materials, consumables and supplies
Work-in-process
Other
Total
Dec. 31, 2013
Dec. 31, 2012
55.1
17.0
2.6
0.6
75.3
57.4
17.3
2.0
1.0
77.7
Table 84
Land and buildings includes properties at the Gateway Gardens site in the immediate vicinity of Frankfurt Airport, which
are intended for sale, amounting to € 31.0 million (previous year: € 30.3 million) and at the Mönchhof site amounting
to € 24.1 million (previous year: € 27.1 million).
Based on the ongoing development of the property held for sale, € 2.3 million was capitalized in the year under review
(previous year: € 3.6 million). Carrying amount reductions of €4.6 million (previous year: € 7.6 million) were the result
of property sale transactions. Borrowing costs totaling € 0.6 million were recognized (previous year: € 0.7 million). The
cost of debt was between around 1.3 % and 2.8 % (previous year: between around 1.7 % and 3.1 %).
Further InformationConsolidated Financial StatementsFraport Annual Report 2013
1 3 6
Group Notes / Notes to the Consolidated Financial Position
The net realizable value of the property held for sale was calculated using the discounted cash flow method over the
remaining planned selling period, with a discount rate adequate for the risk and related to the term. This ranged from
4.5 % (Gateway Gardens site) to 5.3 % for the Mönchhof site after tax (previous year: 5 % in each case). When calculating
the discount rate, further discounts were applied in addition to the general sector risk premium, particularly for as yet
unknown environmental and selling risks. When calculating the net realizable value, the selling prices of sales which
have already taken place and expenses planned for further development and selling are taken into account. As was
the case last year, the net realizable values were higher than the carrying amounts.
Additional costs incurring up to the date of sale mainly relate to expenses for the further development of the property
held for sale comprising the Mönchhof and the Gateway Gardens sites.
Sales of property with a carrying amount of around € 7.3 million are planned for 2014 (previous year: around
€ 8.1 million). The sale of other land and buildings for sale (€ 47.8 million) shall be realized in 2015 and later.
The development areas of Grundstücksgesellschaft Gateway Gardens GmbH carry mortgages.
Expenses for the maintenance of real estate inventories during the year under review were minor. Selling costs mainly
consist of personnel expenses incurred by Fraport Immobilienservice und -entwicklungs GmbH & Co. KG and
Grundstücksgesellschaft Gateway Gardens GmbH.
Raw materials, consumables and supplies mainly relate to consumables for the airport operation.
29
Trade accounts receivable
Trade accounts receivable
€ million
From third parties
Dec. 31, 2013
Dec. 31, 2012
181.6
180.0
Table 85
For 2013, the maximum default risk without taking guarantees into account equaled the carrying amount of € 181.6 million
as at the reporting date. The following table provides information on the extent of the default risk.
Default risk analysis
€ million
Carrying amount
Thereof not
overdue
or impaired
Thereof in stated term overdue and not impaired
< 30 days
30 – 180 days
> 180 days
Dec. 31, 2013
Dec. 31, 2012
181.6
180.0
91.4
95.4
36.7
44.9
19.2
9.7
34.3
30.0
Table 86
With regard to trade accounts receivable which are neither impaired nor in default, there is no indication as at the
reporting date for 2013 that the debtors will not meet their payment obligations. There are no risk concentrations of
open trade accounts receivable.
Cash security in the amount of € 6.5 million (previous year: € 8.8 million) and non-cash guarantee (mainly loan guaran-
tees) in the nominal amount of € 24.8 million (previous year: € 22.7 million) were accepted as guarantee for unsettled
trade accounts receivable. The guarantee received until the reporting date was neither sold nor passed on as security
Fraport Annual Report 2013
Group Notes / Notes to the Consolidated Financial Position
137
and will be returned to the respective debtor after termination of the business relationship. The guarantee received
will be used only in the event of the debtor’s default.
As at the balance sheet date, trade accounts receivable of € 1.6 million were pledged as securities for financial liabilities
(previous year: € 6.8 million).
Allowances for trade accounts receivable developed as follows in the fiscal year:
Allowances
€ million
Balance as at January 1
Expenses from allowances
Releases
Availments
Exchange rate differences
Balance as at December 31
2013
2012
35.1
12.3
– 2.3
– 10.1
0.0
35.0
31.9
9.3
– 0.7
– 5.4
0.0
35.1
Table 87
Net additions include expenses from allowances amounting to € 12.3 million (previous year: € 2.0 million) shown in
other operating expenses, as well as revenue-reducing individual allowances and reversals.
30
Cash and cash equivalents
Cash and cash equivalents
€ million
Cash in hand, bank balances and checks
Dec. 31, 2013
Dec. 31, 2012
605.1
821.9
Table 88
The bank balances mainly include short-term time deposits as well as overnight deposits.
Cash and cash equivalents include time deposits of € 332.4 million (previous year: € 584.0 million) with a term of more
than three months from the time of acquisition. These funds are not subject to any significant fluctuations in value
and can be realized at any time.
In connection with financing the concession in Antalya, € 105.3 million of bank balances are subject to a drawing
restriction (previous year: € 110.8 million).
31
Equity attributable to shareholders of Fraport AG
Equity attributable to shareholders of Fraport AG
€ million
Issued capital
Capital reserve
Revenue reserves
Total
Dec. 31, 2013
Dec. 31, 2012
adjusted
922.1
590.2
1,540.8
3,053.1
921.3
588.0
1,403.2
2,912.5
Table 89
Further InformationConsolidated Financial StatementsFraport Annual Report 2013
1 3 8
Group Notes / Notes to the Consolidated Financial Position
Issued capital
Issued capital (less treasury shares) increased by € 0.8 million in fiscal year 2013 and is fully paid up as at the balance
sheet date. At € 0.6 million, this increase relates to the partial use of the authorized capital – following the capital increase
in exchange for cash contributions – to issue shares in connection with the employee investment plan.
Furthermore, contingent capital was used to acquire additional shares totaling € 0.2 million during the fiscal year to
serve stock options from the Fraport Management Stock Options Plan 2005 (MSOP 2005).
Number of floating shares and treasury shares
The issued capital consisted of 92,289,654 (previous year: 92,211,756) bearer shares with no par value, each of which
accounts for € 10.00 of the capital stock.
Development of the floating and treasury shares according to Section 160 of the AktG
Issued capital
Number
Floating shares
Number
Number
Treasury shares
Amount of
capital stock
in €
Share in
capital stock
in %
Balance as at Jan. 1, 2013
92,211,756
92,134,391
77,365
773,650
0.0839
Management Stock Options Plan 2005
Capital increases 2013
22,600
22,600
Employee investment plan
Capital increase (June 27, 2013)
55,298
55,298
Balance as at Dec. 31, 2013
92,289,654
92,212,289
77,365
773,650
0.0838
Issued capital
Number
Floating shares
Number
Number
Treasury shares
Amount of
capital stock
in €
Share in
capital stock
in %
Balance as at Jan. 1, 2012
91,955,867
91,878,502
77,365
773,650
0.0841
Management Stock Options Plan 2005
Capital increases in 2012
201,650
201,650
Employee investment plan
Capital increase (June 28, 2012)
54,239
54,239
Balance as at Dec. 31, 2012
92,211,756
92,134,391
77,365
773,650
0.0839
Table 90
The new shares created under the employee investment plan were issued to the employees at a price of € 45.00 each
on June 27, 2013.
Authorized capital
Pursuant to Sections 202 et seqq. of the AktG, the Executive Board was authorized by resolution of the AGM held on
May 27, 2009 to increase the capital stock by up to €5.5 million on one or more occasions until May 26, 2014 with
the approval of the Supervisory Board. It was possible to exclude the statutory subscription rights of the shareholders.
In 2013, a total of € 552,980 of authorized capital was used for issuing shares within the scope of the employee invest-
ment plan. At the AGM of May 31, 2013, the existing authorized capital was canceled and new authorized capital of
€ 3.5 million was approved, which can be used for issuing shares to employees of Fraport AG and companies controlled
by Fraport AG. The Executive Board is now entitled, with the approval of the Supervisory Board, to increase the capital
stock on one or more occasions by up to a total of € 3.5 million until May 30, 2018, by issuing new shares in return for
cash. The statutory subscription rights of the shareholders may be excluded.
Fraport Annual Report 2013
Group Notes / Notes to the Consolidated Financial Position
139
Therefore, € 3.5 million of authorized capital remained as at December 31, 2013, which can be used for issuing shares
to employees of Fraport AG and companies controlled by the Fraport AG. The subscription rights of the shareholders
may be excluded.
Contingent capital
A contingent capital increase of € 13.9 million was approved according to the Sections 192 et seqq. of the AktG at
the AGM held on March 14, 2001. The purpose of the contingent capital was expanded at the AGM on June 1, 2005.
The contingent capital increase also serves to fulfill subscription rights under the approved Fraport MSOP 2005. The
Executive Board and Supervisory Board were authorized to issue up to a total of 1,515,000 stock options to beneficiaries
entitled to subscribe until August 31, 2009, in accordance with more detailed provisions in this regard. Some of the
shares which were issued to members of the Executive Board as part of performance-related remuneration until 2010
are subject to a vesting period of twelve or 24 months.
Contingent capital total € 3.4 million as at December 31, 2013. In 2013, € 0.2 million (22,600 options) of the options
granted in the fifth tranche of the MSOP 2005 were exercised.
The capital increase within the framework of the MSOP 2005 is only carried out to the extent that the holders of
subscription rights exercise their subscription rights granted under the MSOP 2005 on the basis of the authorization
referred to above and the company does not serve the stock options using treasury shares, the transfer of shares by
a third party, or a cash payment.
A total of 2,016,150 subscription rights had been issued under the MSOP 2001 and 2005 until the balance sheet date.
Capital reserve
The capital reserve contains the premium from the issuing of Fraport AG shares. Of the € 2.2 million increase in the
capital reserve, € 1.9 million results from the excess in the issue amount (€ 35.00 per share) of new shares issued under
the employee investment plan (55,298 shares in total) and € 0.3 million resulted from the excess in the issue amount
(€ 13.59) of new shares issued from contingent capital to serve stock options (22,600 shares).
Revenue reserves
The revenue reserves consist not only of the reserves of Fraport AG (including the statutory reserve of € 36.5 million),
but also the revenue reserves and retained earnings of the Group companies included in the consolidated financial
statements, as well as effects of consolidation adjustments.
Currency translation differences total € 3.7 million (previous year: € 8.4 million). This figure includes currency transla-
tion differences of – € 9.2 million for the Philippine companies accounted for using the equity method, which are not
charged to the Group result until the companies are disposed of in accordance with IAS 21.
The derivative valuation reserve was – € 103.2 million as at the balance sheet date (previous year: – € 144.7 million). The
reserve for the fair value valuation of financial assets available for sale total € 21.9 million (previous year: € 27.7 million).
The Executive Board and the Supervisory Board of Fraport AG will propose the distribution of € 115.4 million out of
the profit earmarked for distribution of Fraport AG to the AGM. This equates to € 1.25 per share.
In the 2013 fiscal year, the AGM of May 31, 2013 decided to pay a dividend of € 1.25 per no-par value share entitled
to dividend. The distributed amount thus came to € 115.2 million (previous year: € 114.8 million).
Further InformationConsolidated Financial StatementsFraport Annual Report 2013 1 4 0
Group Notes / Notes to the Consolidated Financial Position
32
Non-controlling interests
Non-controlling interests
€ million
Non-controlling interests (excluding the attributable Group result)
Group result attributable to non-controlling interests
Total
Dec. 31, 2013
Dec. 31, 2012
31.0
14.7
45.7
22.4
13.3
35.7
Table 91
The non-controlling interests comprise allocated equity and earnings of Fraport Twin Star Airport Management AD,
FraCareServices GmbH, Fraport Peru S.A.C., FSG Flughafen-Service GmbH, FPS Frankfurt Passenger Services GmbH,
Media Frankfurt GmbH and Lima Airport Partners S.R.L.
33
Non-current and current financial liabilities
Non-current and current financial liabilities
€ million
Residual term
Total
Residual term
Total
up to 1 year
over 1 year
Dec. 31,
2013
up to 1 year
over 1 year
Dec. 31,
2012
Financial liabilities
314.9
4,146.8
4,461.7
196.6
4,401.0
4,597.6
Table 92
There is a general interest rate risk for fixed-interest loans that are extended on expiry.
The fixed-rate loans include also those floating-interest rate loans whose interest rate was fixed by contracting an
interest rate hedge.
Please refer to the presentation of the finance management and the asset and financial position in the Group management
report for additional explanations regarding the financial liabilities.
34
Trade accounts payable
Trade accounts payable
€ million
Residual term
Total
Residual term
Total
up to 1 year
over 1 year
Dec. 31,
2013
up to 1 year
over 1 year
Dec. 31,
2012
To third parties
162.4
50.8
213.2
214.4
64.4
278.8
Table 93
Trade accounts payable include liabilities in connection with compensation measures according to the nature protection
law in the amount of € 30.6 million (previous year: € 32.5 million). The liabilities relate to the contractual obligations to
carry out environmental compensation measures based on the finished work to clear the forrest south of the airport
and near the Northwest Runway as was necessary for the airport expansion.
Fraport Annual Report 2013
Group Notes / Notes to the Consolidated Financial Position
141
35
Non-current and current other liabilities
Non-current and current other liabilities
€ million
Residual term
Total
Residual term
Total
up to 1 year
over 1 year
Dec. 31,
2013
up to 1 year
over 1 year
Dec. 31,
2012
Prepayment for orders
To joint ventures
To associated companies
To investments
Investment grants for non-current assets
Other accruals
2.1
4.3
0.9
2.1
1.3
7.6
Liabilities in connection with concession obligations
72.4
Negative fair values of derivative
financial instruments
Other liabilities
Total
thereof primary financial liabilities
–
87.7
178.4
109.2
–
–
–
–
13.4
60.4
570.0
176.5
69.1
889.4
578.2
2.1
4.3
0.9
2.1
14.7
68.0
642.4
176.5
156.8
1,067.8
687.4
2.1
2.4
0.8
1.7
2.2
7.3
76.5
–
70.2
163.2
104.5
–
–
–
–
13.4
65.0
598.3
244.2
85.5
2.1
2.4
0.8
1.7
15.6
72.3
674.8
244.2
155.7
1,006.4
1,169.6
614.1
718.6
Table 94
Investment grants to the non-current assets include, in particular, investments grants for additional services provided by
Fraport AG, which are billed to the users. Investment grants include government grants of € 8.7 million (previous year:
€ 9.2 million) and other grantors of € 6.0 million (previous year: € 6.4 million). The government grants relate, in particular,
to capital expenditure incurred for baggage controls at Frankfurt Airport. The special items are linearly released according
to the useful life of the granted assets.
Other accruals are income received and relating to future periods.
The liabilities in connection with concession obligations relate to obligations to pay fixed and variable airport operation
concession fees for the airport operating projects in Antalya, Lima, Varna and Burgas.
The remaining other liabilities consist essentially of lease liabilities, wage and church taxes, outstanding social security
contributions, liabilities from accrued interest and liabilities to company employees.
The following lease payments are due from the lease contracts:
Maturity of lease payments
€ million
Lease payments
Discount amounts
Present value
€ million
Lease payments
Discount amounts
Present value
up to 1 year
1 – 5 years
over 5 years
Dec. 31, 2013
Residual term
Total
12.4
3.2
9.1
45.3
7.3
38.0
18.9
4.1
14.9
76.6
14.6
62.0
up to 1 year
1 – 5 years
over 5 years
Dec. 31, 2012
Residual term
Total
13.9
4.0
9.9
53.0
9.9
43.2
25.0
4.5
20.5
91.9
18.4
73.6
Table 95
Discount rates are between 3.0 % and 8.6 % (previous year: between 5.0 % and 8.6 %).
Further InformationConsolidated Financial StatementsFraport Annual Report 2013
1 4 2
Group Notes / Notes to the Consolidated Financial Position
36
Deferred tax liabilities
Deferred tax liabilities
€ million
Deferred tax liabilities
Dec. 31, 2013
Dec. 31, 2012
adjusted
120.4
102.5
Table 96
Deferred tax liabilities were recognized in compliance with IAS 12 using the temporary concept. Further explanations
of deferred tax liabilities can be found in note 16 “taxes on income”.
37
Provisions for pensions and similar obligations
Defined benefit plans
Within the Fraport Group, there are pension obligations for the members of the Executive Board of Fraport AG and
their surviving dependents as well as obligations for Senior Managers and employees not covered by collective
bargaining agreements.
The pension obligations essentially include 20 (previous year: 20) vested pension benefits promised in individual
contractual pension commitments to the members of the Fraport AG Executive Board and their surviving dependents.
A reinsurance policy was already obtained in 2005 to reduce actuarial risks and to protect pension obligations for
the former and current (in some cases still active) members of the Executive Board against insolvency. This is a group
insurance policy with an annual, constant minimum insurance amount for the entire group. The pension benefits from
the reinsurance policy correspond to the total achievable retirement, disability and widow’s benefits in accordance
with the pension commitments. The reinsurance benefits are recognized at the active value reported by the insurance
company in the amount of € 19.3 million (previous year: € 18.3 million). The reinsurance is not traded on an active
market (see also note 52). Reinsurance installments of € 1.2 million have been paid for 2013 (previous year: € 1.2 million)
and € 1.2 million is expected for the next year. The average weighted duration of the members of the Executive Board’s
defined benefit plans is 15.7 years for pensions with reinsurance and 8.7 years for pensions without reinsurance.
Offsetting
€ million
Reconciliation to assets and liabilities recognized in the financial position
Present value of obligations funded through a reinsurance policy
Fair value of plan assets
Overfunding (not included in the net liability)/underfunding
Present value of obligations not funded through a reinsurance policy
(Net) liabilities recognized in the financial position
2013
2012
18.5
– 19.3
– 0.8
26.7
26.7
18.9
– 18.3
0.6
26.8
27.4
Table 97
For Senior Managers and employees not covered by collective bargaining agreements who joined the company as
Senior Managers or employees not covered by collective bargaining agreements after December 31, 1997 or who
will join in future, the pension benefits and provision for surviving dependents on the monthly compensation liable
to top-up pension payments, for which contributions are payable, are restricted to the upper limit defined in Section
38 of the ATV-K in the amount of 1.133 times of the payment group 15 level 6 of the collective bargaining agreement
for civil servants (TVöD). In addition to the said limited pension benefits and provision for surviving dependents, there
exists a supplementary operational pension for these persons. Hereafter, Fraport AG makes an annual contribution
in the amount of 13 % of the eligible income as capital components into an individually managed pension account.
Fraport Annual Report 2013
Group Notes / Notes to the Consolidated Financial Position
143
The period of contribution began on January 1, 1998 for employees who entered into an employment relationship
not covered by a collective bargaining agreement before January 1, 2000. Furthermore, this applies for employees
who changed from an employment relationship covered by collective bargaining agreements to one not covered
by collective bargaining agreements after December 31, 1997 or who entered into a relationship not covered by
collective bargaining agreements after December 31, 1997, effective as of the time of the change in status. There were
366 benefits (of which 196 vested) as at the end of the year. The present value of the non-vested benefits amounts
to € 0.7 million (previous year: €0.8 million); the present value of the vested benefits amounted to € 5.6 million in the
2013 annual financial statements. Future obligations amount to € 5.3 million for active employees and € 1.0 million
for former and retired employees. No significant provision amounts were paid this fiscal year due to the young age
structure. The obligations for Senior Managers and employees not covered by collective bargaining agreements had
an average weighted duration of 10.2 years.
Furthermore, Senior Managers have had the opportunity to participate in an employee-financed company pension
scheme (“deferred compensation”) since 1996. The employee portion is generated through converting a portion
that can be chosen freely each year. This portion is converted into an insured sum and is accumulated by Fraport AG
and accrues interest. At the end of the fiscal year, there were 15 vested pension commitments totaling € 4.0 million
(previous year: € 4.0 million). Obligations amount to € 3.5 million for active employees and € 0.5 million for former
and retired employees. The average weighted duration of the employee-financed company pension scheme was
6.6 years in fiscal year 2013.
The valuation of pension obligations is based on the provisions according to IAS 19. The pension obligations as
at December 31, 2013, were calculated on the basis of actuarial opinions of December 17 and 23, 2013. Changes
in obligations were as follows:
Pension obligations (2013)
€ million
As at January 1, 2013
Service cost
Current service cost
Past service cost
Gains and losses on settlement
Total service cost
Net interest income/expense
Interest income and interest expenses
Remeasurements
Return on plan assets, excluding interest
Actuarial gains and losses from changes in demographic assumptions
Actuarial gains and losses from the adjustment of the obligation
based on experience
Actuarial gains and losses from changes in financial assumptions
Total remeasurements
Impacts of exchange rate differences
Contributions of the employer to the plan
Contributions of the employee to the plan
Payments from the plan
Overfunding
As at December 31, 2013
Present value of
the obligation
Plan assets
Total
45.8
– 18.3
27.4
2.2
0.0
0.0
2.2
1.4
0.0
0.0
0.1
– 2.2
– 2.1
0.0
0.0
0.0
– 2.0
0.0
45.3
0.0
0.0
0.0
0.0
– 0.6
0.2
0.0
0.0
0.0
0.2
0.0
– 1.2
0.0
0.6
0.0
– 19.3
2.2
0.0
0.0
2.2
0.8
0.2
0.0
0.1
– 2.2
– 1.9
0.0
– 1.2
0.0
– 1.4
0.8
26.7
Table 98
Further InformationConsolidated Financial StatementsFraport Annual Report 2013
1 4 4
Group Notes / Notes to the Consolidated Financial Position
Pension obligations (2012)
€ million
As at January 1, 2012
Service cost
Current service cost
Past service cost
Gains and losses on settlement
Total service cost
Net interest income/expense
Interest income and interest expenses
Remeasurements
Return on plan assets excluding interest
Actuarial gains and losses from changes in demographic assumptions
Actuarial gains and losses from the adjustment of the obligation
based on experience
Actuarial gains and losses from changes in financial assumptions
Total remeasurements
Impacts of exchange rate differences
Contributions of the employer to the plan
Contributions of the employee to the plan
Payments from the plan
Overfunding
As at December 31, 2012
Significant actuarial assumptions
Interest rate
Adjustment of pensions
Retirement age
Present value of
the obligation
Plan assets
Total
37.6
–16.9
20.7
0.0
0.0
0.0
0.0
– 0.4
0.1
0.0
0.0
0.0
0.1
0.0
– 1.1
0.0
0.0
0.0
–18.3
1.7
0.0
0.0
1.7
1.7
0.0
0.0
0.7
6.3
7.0
0.0
0.0
0.0
– 2.2
0.0
45.8
2013
3.60 %
2.50 %
1.7
0.0
0.0
1.7
1.3
0.1
0.0
0.7
6.3
7.1
0.0
–1.1
0.0
–2.2
0.0
27.4
Table 99
2012
3.17 %
2.50 %
Termination of contract period,
earliest pensionable age in
pension commitments
Termination of contract period,
earliest pensionable age in
pension commitments
Table 100
The significant actuarial assumptions refer to the pension obligations of the members of the Executive Board, because
these are the major obligations. All other pension obligations largely have the same assumptions.
Sensitivity analysis
The sensitivity analysis is based on changes in the assumptions while the other factors remained constant. In practice,
it is unlikely that only one actuarial assumption would change. Changes in actuarial assumptions may correlate with
other actuarial assumptions. The pension provision would vary by the following amounts in the event of a change
in assumptions:
Fraport Annual Report 2013
Group Notes / Notes to the Consolidated Financial Position
145
Sensitivity analysis as at December 31, 2013
€ million
Interest rate
Inflation
Mortality
Retirement age
Decrease of interest rate by 0.5 %
Increase of interest rate by 0.5 %
2.6
– 2.4
Decrease of inflation by 0.25 %
Increase of inflation by 0.25 %
– 0.8
0.8
Reduction by one year
1.3
Increase by one year
0.1
Table 101
The analysis of inflation includes both the change in amounts and pension trends. The retirement age has no influence
on the pensions received by members of the Executive Board and was only calculated for other pensions.
In connection with defined benefit plans, the Group is exposed to general actuarial risks as well as the interest rate
risk. Some pension benefits are tied to inflation and higher inflation will lead to higher obligations. Due to the liquidity
available in the Group, there is no risk with regard to fulfillment for non-reinsured obligations.
Multi-employer plans
Fraport AG has insured its employees for purposes of granting a defined-benefit company pension under the statutory
insurance scheme based on a collective bargaining agreement (Altersvorsorge-TV-Kommunal [ATV-K]) with the
Zusatzversorgungskasse for local authority and municipal employers in Wiesbaden (ZVK). The contributions are collected
based on a pay-as-you-go model. As in the previous year, the contribution rate of the ZVK is 6.2 % on compensation
liable to top-up pension payments; thereof, the employer pays 5.7 %, with the contribution paid by the employee
amounting to 0.5 %. In addition, a tax-free restructuring charge of 2.3 % of the compensation liable to top-up pension
payments is levied by the employer in accordance with Section 63 of the ZVK Statutes (ZVKS). An additional contribution
of 9 % is paid for some employees included in the statutory social security insurance scheme (generally employees
not covered by collective bargaining agreements and Senior Managers) for the consideration subject to ZVK that,
according to Section 38 of the ATV-K, exceeds the upper limit defined in the collective bargaining agreement.
This plan is a multi-employer plan (IAS 19.8), since the companies involved share the risk of the investment and also
the biometric risk.
The ZVK insurance is generally to be classified as a defined benefit plan (IAS 19.30). Since the plan is a defined benefit
plan, the company has to account for its proportionate share of its benefit obligations in the total obligations and
for the exact share in the total assets of ZVK according to IAS 19.32. If there is not sufficient information on the plan
and a company also covers the risks of other insuring companies with its contributions (IAS 19.34b), only the current
contributions are accounted for as if it was a defined contribution plan. Due to its structure, the ZVK does not pro-
vide any information to participating companies that would allow the allocation of obligations, plan assets, service
costs and, if applicable, over- or underfunding or the extent of Fraport’s participation in the plan. In the consolidated
financial statements of Fraport, the consideration of contributions corresponds to defined-contribution pension
commitments. Along with the remaining member companies, Fraport AG is obliged to finance accrued obligations not
Further InformationConsolidated Financial StatementsFraport Annual Report 2013
1 4 6
Group Notes / Notes to the Consolidated Financial Position
covered by assets as well as future obligations. The precise share of the remaining extent of the obligation cannot be
determined. In the event of Fraport AG withdrawing from the multi-employer plan (for example through terminating
the agreement), compensation in the amount of the present value of the obligation at the point of the membership
being terminated is to be paid to the ZVK. This amount cannot be determined due to only insufficient information
being available. Should the multi-employer plan be dissolved by a resolution of the administrative committee, no share
in any possible remaining overfunding will be due to Fraport.
In the fiscal year, € 28.1 million (previous year: € 26.8 million) was recorded as contributions to defined contribution
plans. Contributions of €29.4 million are expected for the next fiscal year.
Furthermore, due to statutory provisions, contributions are also made to state-administered pension funds in Germany. The
current contributions are shown as expense for the respective year. Employer contributions made by the Fraport Group
to state-administered pension funds totaled € 66.0 million (previous year: € 71.7 million).
38
Non-current and current income tax provisions
Non-current and current income tax provisions
€ million
Residual term
Total
Residual term
Total
up to 1 year
over 1 year
Dec. 31,
2013
up to 1 year
over 1 year
Dec. 31,
2012
Income tax provisions
8.1
54.1
62.2
5.3
80.2
85.5
Table 102
Tax provisions amounting to € 62.2 million (previous year: € 85.5 million) were accrued for unassessed corporation
tax and trade tax, as well as for tax audit risks. The decline in income tax provisions is the result of the cessation of the
2003 – 2005 audit at Fraport AG in 2013.
39
Non-current and current other provisions
The development in the non-current and current provisions are shown in the following tables:
Non-current and current personnel-related provisions
€ million
Personnel
thereof non-current
thereof current
Jan. 1, 2013
adjusted
75.8
12.1
63.7
Use
Release
Additions
Dec. 31, 2013
– 49.7
– 3.2
62.2
85.1
8.9
76.2
Table 103
A large part of the personnel-related provisions were recognized for partial retirement, incentive schemes for the
employees of Fraport AG, as well as for time account credits. The partial retirement provisions have been recognized
according to IAS 19R since January 1, 2013. Retroactive application was implemented in accordance with IAS 8 (see note 4).
The credit for partial retirement and claims from time account credits are offset against the fund units (see also note 24).
Fraport Annual Report 2013
Group Notes / Notes to the Consolidated Financial Position
147
Other provisions
€ million
Jan. 1, 2013
Use
Release
Additions
Interest
effect
Dec. 31,
2013
Environment
Passive noise abatement
Nature protection law compensation
Other
Total
thereof non-current
thereof current
37.6
91.0
57.9
168.7
355.2
199.1
156.1
– 5.1
– 4.3
– 0.3
– 43.5
– 53.2
0.0
0.0
– 23.8
– 5.3
– 29.1
3.3
57.6
0.0
56.8
117.7
– 0.7
– 1.2
– 0.6
– 0.6
– 3.1
35.1
143.1
33.2
176.1
387.5
226.2
161.3
Table 104
The environmental provisions have been formed largely for probable restructuring costs for the elimination of
groundwater contamination on the Frankfurt Airport site in Frankfurt/Main, as well as for environmental pollution in
the southern section of the airport.
The present value of the provision formed in 2011 for the obligation to compensate passive noise abatement expenses
for privately used properties was increased by € 57.6 million in fiscal year 2013. Of this, € 48.3 million was accounted
for by the adoption of the draft of the third regulation for the execution of the Act for Protection against Aircraft Noise
(Fluglärm-Außenwohnbereichsentschädigungs-Verordnung). The obligation results from the zoning decision of
December 18, 2007 and was made specific through the enactment of the regulation above in the fiscal year. There is
a refund claim for this amount indicated under other receivables (see also note 25). The remaining € 9.3 million is due
to the HMWVL zoning supplement decision of April 30, 2013, according to which Fraport AG is obliged to refund
passive noise abatement expenses for commercially used properties. This amount was recognized as production costs
in connection with the capacity expansion accounted for under property, plant and equipment.
A provision for environmental protection compensating measures was created in the previous years due to the long-
term obligation to implement ecological compensating measures resulting from the work performed to clear the land
in the southern part of the airport and in the area of Runway Northwest required for the airport expansion.
Other provisions include the provision of € 9.6 million (previous year: € 19.4 million) for the purchase and compensa-
tion program for residential properties (Fraport Casa) as well as additions for obligations from the zoning supplement
decision of May 10, 2013 regarding wake turbulences in the amount of € 23.5 million, which was recognized in the
same amount as production costs in connection with the capacity expansion accounted for under property, plant
and equipment.
In addition, other provisions include provisions established mainly for rebates and refunds, legal disputes and claim events.
Further InformationConsolidated Financial StatementsFraport Annual Report 2013
1 4 8
Group Notes / Notes to the Consolidated Financial Position
40
Financial instruments
Disclosures on carrying amounts and fair values
The following tables present the carrying amounts and fair values of the financial instruments as at December 31, 2013
and December 31, 2012, respectively:
Financial instruments as at December 31, 2013
€ million
Measured
at amortized
cost
Measured at fair value
Dec. 31,
2013
Recognized
in profit or loss
Measurement category
according to IAS 39
Nominal
volume
Loans and receivables
Fair value
option
Held for
trading
Available
for sale
Hedging
derivative
Total
fair value
Liquid
funds
Carrying
amount
Fair value
Carrying
amount 1)
Carrying
amount 1)
Carrying
amount 1)
Carrying
amount 1)
Assets
Cash and cash equivalents
605.1
Trade accounts receivable
Other financial receivables
and assets
Other financial assets
Securities
Other investments
Loans to investments
Other loans
Derivative financial assets
Hedging derivative
Other derivatives
181.6
181.6
108.4
108.4
123.2
27.6
123.2
27.6
304.0
517.3
59.5
605.1
181.6
412.4
517.3
59.5
123.2
27.6
0.0
0.0
Total assets
605.1
440.8
440.8
0.0
0.0
880.8
0.0
1,926.7
Other financial
liabilities
Fair value
option
Held for
trading
IAS 17 liability Hedging
derivative
Total
fair value
Carrying
amount
Fair value
Carrying
amount 1)
Carrying
amount 1)
Carrying
amount
Fair value
Carrying
amount 1)
Liabilities and equity
Trade accounts payable
Other financial liabilities
213.2
687.4
217.0
764.4
Financial liabilities
4,461.7
4,541.1
Liabilities from finance leases
Derivative financial liabilities
Hedging derivative
Other derivatives
Total liabilities and equity
5,362.3
5,522.5
0.0
33.5
33.5
62.0
67.5
143.0
217.0
764.4
4,541.1
67.5
143.0
33.5
62.0
67.5
143.0
5,766.5
1) The carrying amount equals the fair value of the financial instruments.
Table 105
Fraport Annual Report 2013
Group Notes / Notes to the Consolidated Financial Position
149
Financial instruments as at December 31, 2012
€ million
Measured
at amortized
cost
Measured at fair value
Dec. 31,
2012
Recognized
in profit or loss
Measurment category
according to IAS 39
Nominal
volume
Loans and receivables
Fair value
option
Held for
trading
Available
for sale
Hedging
derivative
Total
fair value
Liquid
funds
Carrying
amount
Fair value
Carrying
amount 1)
Carrying
amount 1)
Carrying
amount 1)
Carrying
amount 1)
Assets
Cash and cash equivalents
821.9
Trade accounts receivable
Other financial receivables
and assets
Other financial assets
Securities
Other investments
Loans to investments
Other loans
Derivative financial assets
Hedging derivative
Other derivatives
180.0
180.0
81.4
81.4
128.4
53.4
128.4
53.4
0.9
265.4
497.0
63.0
821.9
180.0
346.8
497.9
63.0
128.4
53.4
0.0
0.0
Total assets
821.9
443.2
443.2
0.9
0.0
825.4
0.0
2,091.4
Other financial
liabilities
Fair value
option
Held for
trading
IAS 17 liability
Carrying
amount
Fair value
Carrying
amount 1)
Carrying
amount 1)
Carrying
amount
Fair value
Total
fair value
Hedging
derivative
Carrying
amount 1)
Liabilities and equity
Trade accounts payable
Other financial liabilities
278.8
718.6
284.8
752.7
Financial liabilities
4,597.6
4,791.3
Liabilities from financial leases
Derivative financial liabilities
Hedging derivative
Other derivatives
Total liabilities and equity
5,595.0
5,828.8
0.0
45.2
45.2
73.6
85.1
199.0
284.8
752.7
4,791.3
85.1
199.0
45.2
73.6
85.1
199.0
6,158.1
1) The carrying amount equals the fair value of the financial instruments.
Table 106
Given the short maturities for cash and cash equivalents, trade accounts receivable and other financial receivables and
assets, the carrying amounts as at the reporting date correspond to the fair value.
The valuation of unlisted securities was based on market data applicable on the valuation date using reliable and
specialized sources and data providers. The values are determined using established valuation models.
The derivative financial instruments mainly relate to interest rate hedging transactions. The fair values of these financial
instruments are determined on the basis of discounted future expected cash flows, using market interest rates cor-
responding to the terms to maturity.
Further InformationConsolidated Financial StatementsFraport Annual Report 2013
1 5 0
Group Notes / Notes to the Consolidated Financial Position
In order to determine the fair value of financial liabilities, the future expected cash flows are determined and discounted
based on the yield curve on the reporting date. The market risk premium for the term and respective borrower on the
reporting date is added to the cash flows.
The fair values of listed securities are identical to the stock market prices on the reporting date.
There is no price quotation or market price for shares in partnerships and other unlisted investments, as there is no active
market for them. The carrying amount is assumed to equal the fair value, since the fair value cannot be determined
reliably. These assets are not intended for sale as at the 2013 balance sheet date.
The carrying amounts of other loans and loans to affiliated companies correspond to the respective fair values. Some
of the other loans are subject to a market interest rate and their carrying amounts therefore represent a reliable valua-
tion for their fair values. Another part of the other loans is reported at present value on the balance sheet date. Here,
it is also assumed that the present value corresponds to the fair value. The other remaining loans are promissory note
loans with a remaining term of less than four years. Due to the lack of an active market, no information is available on
the risk premiums of their respective issuers. As a result, their carrying amounts were used as the most reliable value
for their fair values. These are not intended for sale as at the 2013 balance sheet date.
Non-current liabilities are recognized at their present value. Interest rates with similar terms on the date of addition are
used as a basis for discounting future cash outflows. To determine fair value, the respective cash outflows are discounted
at interest rates with similar terms and with the Fraport credit risk on the reporting date. The carrying amounts of
current liabilities are equal to the fair value.
The fair values of financial instruments belong to the measurement categories of the hierarchy within the meaning
of IFRS 7.27A:
Measurement categories according to IFRS 7.27A (2013)
€ million
Assets
Other financial receivables and financial assets
Dec. 31, 2013
Level 1
Level 2
Level 3
Quoted prices
Derived prices
Prices that
cannot be
derived
Available for sale
Loans and receivables
Other financial assets
Securities available for sale
Other investments
Loans to investments
Other loans
Total assets
Liabilities and equity
Trade accounts payable
Other financial liabilities
Financial liabilities
Liabilities from finance leases
Derivative financial liabilities
Derivatives without hedging relationships
Derivatives with hedging relationships
Total liabilities and equity
304.0
108.4
517.3
59.5
123.2
27.6
304.0
0.0
517.3
0.0
0.0
0.0
1,140.0
821.3
217.0
764.4
4,541.1
67.5
33.5
143.0
5,766.5
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
108.4
0.0
59.5
123.2
27.6
318.7
217.0
764.4
4,541.1
67.5
33.5
143.0
5,766.5
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
Table 107
Fraport Annual Report 2013
Group Notes / Notes to the Consolidated Financial Position
151
As at December 31, 2012, the financial instruments recognized at fair value in the statement of financial position
belonged to the following measurement categories of the hierarchy within the meaning of IFRS 7.27A:
Measurement categories according to IFRS 7.27A (2012)
€ million
Assets
Other financial receivables and financial assets
Dec. 31, 2012
Level 1
Level 2
Level 3
Quoted prices
Derived prices
Prices that
cannot be
derived
Available for sale
Loans and receivables
Other financial assets
Securities available for sale
Securities fair value option
Other investments
Loans to investments
Other loans
Total assets
Liabilities and equity
Trade accounts payable
Other financial liabilities
Financial liabilities
Liabilities from finance lease
Derivative financial liabilities
Derivatives without hedging relationships
Derivatives with hedging relationships
Total liabilities and equity
Net results of the measurement categories
€ million
Financial assets
Loans and receivables
Fair value option
Held for trading
Available for sale
Financial liabilities
At amortized cost
Held for trading
265.4
81.4
497.0
0.9
63.0
128.4
53.4
265.4
0.0
497.0
0.0
0.0
0.0
0.0
1,089.5
762.4
284.8
752.7
4,791.3
85.1
45.2
199.0
6,158.1
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
81.4
0.0
0.9
63.0
128.4
53.4
327.1
284.8
752.7
4,791.3
85.1
45.2
199.0
6,158.1
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
Table 108
2013
2012
– 7.1
0.0
0.0
4.0
– 9.3
11.7
1.1
0.0
0.0
49.3
– 2.8
– 10.0
Table 109
The net result consists of changes in fair values, impairment losses and write-ups recognized through profit or loss,
foreign currency translation changes and gains and losses of disposals.
Interest and dividend income to which the fair value option applies, or which are available for sale, are also included
in the computation of the net result. Interest and dividend income of the other categories are not included in the net
result disclosed. Gains from the valuation at fair value of financial instruments in the “available for sale” category in
the amount of – € 6.8 million (previous year: € 14.8 million) were recorded directly in equity without affecting profit
or loss during the year under review.
Further InformationConsolidated Financial StatementsFraport Annual Report 2013
1 5 2
Group Notes / Notes to the Consolidated Financial Position
In addition to the recognized fair value changes, losses on financial liabilities in the “held for trading” category also in-
clude the fair values of two interest rate swaps for which there were no hedged items in the course of the 2013 fiscal year.
Derivative financial instruments
With regard to the items in its statement of financial position and planned transactions, Fraport is, in particular, subject
to interest rate and currency exchange risks. Fraport covers interest rate and currency risks by establishing naturally
hedged positions, in which the values or cash flows of primary financial instruments offset each other in their timing
and amount and/or by using derivative financial instruments to hedge the business transactions. Derivatives are not
used for trading or speculative purposes.
Interest rate risks arise in particular from the capital requirements associated with capital expenditure and from exist-
ing floating interest rate financial liabilities and assets. As part of the interest rate risk management policy, interest rate
derivatives were concluded in order to limit the interest rate risk arising from financial instruments with floating interest
rates and assure planning security.
Within the Group, foreign currency risks mainly arise from revenue in foreign currencies, which are not covered by
expenses in matching currencies. This results in a cash flow risk between foreign currency revenue and the functional
currency. Fraport hedges such risks by entering into currency forwards.
As was the case in the previous year, the Group holds 50 interest rate swaps as at the reporting date. Furthermore, as
was the case in the previous year, options were sold on five interest rate swaps in order to optimize financing costs.
The value of the options was taken into account in the fair value of the interest rate swaps. Furthermore, there are four
(previous year: nine) currency forwards.
Derivative financial instruments
€ million
Nominal volume
Fair value
Credit risk
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2013
Dec. 31, 2012
Interest rate swaps
1,430.2
1,447.5
–176.2
–243.9
thereof hedge
accounting
thereof trading
Interest rate/
currency swap
Currency forwards
1,205.2
225.0
0.0
1.5
1,222.5
225.0
15.0
3.9
–142.7
–33.5
0.0
–0.3
–198.7
–45.2
–0.3
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
Table 110
A credit risk (counterparty risk) arises from positive fair values of derivative transactions that have been concluded.
The total of all the positive fair values of the derivatives is also simultaneously equal to the maximum default risk of
these business transactions. In accordance with financial risk guidelines, derivative contracts are only concluded with
counterparties that have an investment grade rating in order to minimize the default and credit risks.
The fair values of the derivative financial instruments are recorded as follows in the statement of financial position:
Fair values of derivative financial instruments
€ million
Other assets
Other liabilities
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2013
Dec. 31, 2012
Interest rate swaps – cash flow hedges
Interest rate swaps – trading
Interest rate/currency swap – cash flow hedges
Currency forwards – cash flow hedges
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
142.7
33.5
0.0
0.3
198.7
45.2
0.3
0.0
Table 111
Fraport Annual Report 2013
Group Notes / Notes to the Consolidated Financial Position
153
43 of the interest rate swaps are still assigned to existing floating-interest-rate liabilities.
As was the case in the previous year, a total of 43 interest rate swaps and the currency forwards are accounted for as
cash flow hedges in accordance with IAS 39. Changes in the fair values of these instruments are recorded in an equity
sub-account without affecting profit or loss. The effectiveness of these cash flow hedges has been verified and is
confirmed and documented at regular intervals. As was the case in the previous year, seven interest rate swaps were
classified as “held for trading”. All gains or losses resulting from this classification are recorded through profit or loss.
The payments under the cash flow hedges become due in the following years. This is also the time when the respective
hedged item affects profit or loss.
Interest rate swaps (hedge accounting)
€ million
Beginning of term
2005
2006
2007
2007
2007
2007
2007
2007
2008
2009
2009
2009
2009
2010
2010
2010
2011
Total
Currency forwards
€ million
Maturity
2014
End of term Nominal volume
Fair value
2014
2016
2014
2015
2016
2017
2018
2019
2018
2015
2016
2017
2019
2015
2017
2020
2015
60.0
70.0
18.8
16.1
28.6
89.9
36.0
40.8
115.0
45.0
100.0
25.0
220.0
85.0
100.0
85.0
70.0
– 0.1
– 6.1
– 2.5
– 2.2
– 3.9
– 11.5
– 4.9
– 5.5
– 16.3
– 2.7
– 8.8
– 3.1
– 36.6
– 5.2
– 12.9
– 16.6
– 3.8
1,205.2
– 142.7
Table 112
Nominal volume
Fair value
1.5
– 0.3
Table 113
Unrealized gains of € 17.0 million were recorded in equity from the change in fair value of derivatives in the 2013 fiscal
year (previous year: losses of € 62.0 million). During the year under review, losses of € 38.1 million were transferred
from equity to the financial result. In the previous year, losses of € 30.7 million were transferred to the financial result
and € 1.0 million of gains were transferred to the operating result. In addition, the ineffectiveness of the interest rate
swaps amounting to € 0.1 million was recorded through profit and loss as in the previous year.
The interest rate and currency swap, included in the previous year, expired and came off in December 2013.
Further InformationConsolidated Financial StatementsFraport Annual Report 2013
1 5 4
Group Notes / Notes to the Segment Reporting
Notes to the Segment Reporting
41
Notes to the segment reporting
Segment reporting in the Fraport Group according to IFRS 8 is based on internal reporting to the Executive Board
as the primary decision-maker.
The same accounting principles as those used in the consolidated financial statements underlie segment reporting.
The strategic business units of Fraport AG in Frankfurt are clearly assigned to the Aviation, Retail & Real Estate and
Ground Handling segments. In addition, these segments include Group companies integrated in the business
processes at the Frankfurt site.
The Aviation segment incorporates the strategic business units “Airside and Terminal Management, Corporate Safety and
Security” and “Airport Security Management” at the Frankfurt site. Furthermore, FraSec Fraport Security Services GmbH
and FRA - Vorfeldkontrolle GmbH are assigned to this segment.
The Retail & Real Estate segment consists of the strategic business unit “Retail and Properties”, comprising the retailing
activities, parking facility management and the rental and marketing of real estate at the Frankfurt site. In addition, the
Group companies integrated into these activities on the Frankfurt site are allocated to the segment.
The Ground Handling segment combines the “Ground Services” strategic business unit and the Group companies
involved in these operations at the Frankfurt site.
The External Activities & Services segment encompasses the internal service units of “Facility Management” and
“Central Infrastructure Management”, as well as “Information and Telecommunications” and their Group companies.
Group companies that are not integrated in the processes at the Frankfurt site and Group companies that carry out
their business operations outside of Frankfurt are also allocated to the External Activities & Services segment.
Corporate data at Fraport AG is divided into market-oriented business and service units on the one hand and into
central units on the other hand. All the business and service units are allocated clearly to one segment each. The
central units are categorized appropriately.
The data about the Group companies that are not integrated in the processes at the Frankfurt site and Group companies
that carry out their business operations outside the Frankfurt site are allocated to the External Activities & Services
segment during reporting. The Group companies that are integrated in the processes at the Frankfurt site are allocated
to the relevant segment according to their business operations.
Inter-segment revenue is primarily generated by the inter-company allocation of rent for land, buildings and space, as
well as maintenance services and energy supply by Fraport AG. The corresponding assets are allocated to the Retail
& Real Estate segment. The relevant units are charged on the basis of the costs incurred, including imputed interest.
Inter-segment revenue also reflects revenue that has been generated between the companies included from different
segments.
Goodwill from business mergers and the appropriate impairment losses, where applicable, have been allocated clearly
to a segment according to the segment structure.
Fraport Annual Report 2013 Group Notes / Notes to the Segment Reporting / Notes to the Consolidated Statement of Cash Flows
155
The “adjustment” column of the segment assets/segment liabilities includes the income tax assets/liabilities (including
the deferred tax assets/liabilities) of the Group.
In the additional disclosures “Geographical Information”, allocation is according to the current main areas of operation:
Germany, rest of Europe, Asia and rest of the world. The figures shown under Asia relate mainly to Turkey and the
People’s Republic of China. The figures shown under rest of the world relate mainly to the USA and Peru.
Depreciation and amortization for the segment assets include impairment losses according to IAS 36 in the amount
of € 0.5 million (previous year: €0.3 million). Impairment losses are charged to the Aviation segment (previous year:
Retail & Real Estate segment).
Segment assets of the Retail & Real Estate segment include real estate inventories of € 55.1 million (previous year:
€ 57.4 million).
During the fiscal year 2013, revenue of € 871.4 million was generated in all four segments from one customer
(previous year: € 861.0 million). Further explanations about segment reporting can be found in the management report.
Notes to the Consolidated Statement of Cash Flows
42
Notes to the consolidated statement of cash flows
Cash flow from operating activities
Cash flow from operating activities of € 574.8 million (previous year: € 553.0 million) resulted with € 807.1 million
(previous year: € 809.8 million) from operating activities, with € 146.3 million (previous year: € 135.5 million) from
financial activities and with € 86.0 million (previous year: € 121.3 million) from cash outflows for income taxes.
Cash flow used in investing activities
Cash flow used in investing activities without investments in cash deposits and securities amounted to € 492.8 million
in the reporting period, a decrease of € 243.4 million year-on-year. Major capital expenditure on property, plant and
equipment was made as part of the airport expansion program and the extension projects at Frankfurt Airport.
The proceeds from the disposal of non-current and current securities and promissory note loans, investment of the free
liquid funds in new financial assets and changes to cash and cash equivalents with a duration of more than three months
resulted in cash flow used in investing activities of € 280.0 million, which was considerably below the previous year
(€ 779.2 million).
Cash flow used in (from) financing activities
Cash outflow from financing activities of € 255.1 million mainly resulted from the repayment of non-current financial
liabilities (previous year: cash inflow in the amount of € 218.2 million).
Reconciliation to the cash and cash equivalents as at the consolidated statement of financial position
€ million
Dec. 31, 2013
Dec. 31, 2012
Cash and cash equivalents as at the consolidated statement of cash flows
Cash and cash equivalents with a duration of more than three months
Restricted cash
Cash and cash equivalents as at the consolidated statement of financial position
167.4
332.4
105.3
605.1
127.1
584.0
110.8
821.9
Table 114
Further InformationConsolidated Financial StatementsFraport Annual Report 2013
1 5 6
Group Notes / Other Disclosures
Other Disclosures
43
Guarantees and other commitments
Guarantees and other commitments
€ million
Guarantees
Warranty contracts
thereof performance guarantees
Others
Total
Dec. 31, 2013
Dec. 31, 2012
26.4
175.0
113.3
12.2
213.6
4.7
186.0
127.3
13.4
204.1
Table 115
The primary warranties and performance guarantees are explained below.
A performance guarantee, excluding recourse against Fraport AG, was signed between GMR Holdings Private Ltd.,
Fraport AG and ICICI Bank Ltd. to the amount of € 35.1 million (INR 3,000 million) to modernize, expand and operate
Delhi Airport (India). If, however, the party to the contract, GMR Holdings Private Ltd., fails to meet its contractual
obligations, Fraport AG’s liability may not be excluded given the fact that Fraport AG is party to the contract.
In connection with the terminal operation at Antalya Airport (Turkey), Fraport AG assumed a contract performance
guarantee of € 35.6 million for the investment in the Antalya operating company.
In the context of operating the airports in Varna and Burgas (Bulgaria), Fraport AG guaranteed the contractual per-
formance of its Group company Fraport Twin Star Airport Management AD, established in 2006, to the amount of
€ 9.0 million.
The existing performance guarantee related to the concession agreement for the operation of the airport in Lima, Peru,
amounts to € 8.2 million (US-$11.3 million) as at the 2013 balance sheet date.
The performance guarantees include a joint and several liability to the Hong Kong Airport Authority in connection with
the Tradeport Hong Kong Ltd. investment project amounting to € 3.8 million (US-$5.2 million).
The other warranties mainly include guarantees assumed by Fraport AG in connection with the contractual financing
arrangements signed by the Antalya operating company. As a result, the Fraport Group incurred other commitments
to the amount of € 29.5 million.
The other commitments include that Fraport AG is held liable to the amount of € 12.2 million for rentals payable by
Lufthansa Cargo Aktiengesellschaft to Tectum 26. Vermögensverwaltungs GmbH, if Lufthansa Cargo Aktiengesellschaft
exercises an extraordinary right to terminate the contract.
Fraport Annual Report 2013
44
Other financial obligations and contingent liabilities
Order commitments
€ million
Orders for capital expenditure in property, plant and equipment, intangible assets and investment
property/others
Orders for energy supply
Total
Operate leases
€ million
Rental and leasing contracts
up to 1 year
more than 1 up to 5 years
more than 5 years
Total
Group Notes / Other Disclosures
157
Dec. 31, 2013
Dec. 31, 2012
222.2
65.4
287.6
359.3
83.0
442.3
Table 116
Dec. 31, 2013
Dec. 31, 2012
9.4
8.7
28.9
47.0
10.4
10.6
26.3
47.3
Table 117
Other financial obligations include future expenses arising from rental agreements and leases. The contracts entered into
relate to building rental agreements and the lease of equipment. The equipment leases showed an average remaining
term of one year on the 2013 reporting date. The building rental agreements can generally be terminated at short notice.
In view of their economical content, the relevant leases qualify as operate leases, i.e. the leased asset is attributable
to the lessor.
In addition, there are other financial obligations in the amount of € 159.1 million (previous year: € 181.7 million).
In addition to obligations from a long-term supply contract for the provision of cooling and heating (€ 84.8 million),
these mainly consist of other financial obligations from a loan commitment to Northern Capital Gateway LCC to finance
the development and modernization of Pulkovo Airport in St. Petersburg to the amount of € 45.4 million, as well as
capital contribution obligations to finance capital expenditure for Delhi Indira Gandhi International Airport in India
to the amount of € 17.6 million.
As at the balance sheet date, there were contingent liabilities at Lima from tax risks in the amount of € 11.0 million
(previous year: € 10.7 million) as well as at Twin Star from penalties for obligations for capital expenditure in arrears in
the amount of € 10.1 million (previous year: € 10.3 million).
Revenue-related concession fees and additional obligations for capital expenditure of unspecified amounts on airport
infrastructure have been agreed based on the existing concession agreements related to the operation of the airports
in Varna and Burgas, Bulgaria (term until 2041) and Lima, Peru (minimum term until 2031) (see also note 49).
45
Stock options
Fraport Management Stock Options Plan 2005
In order to meet the requirements for variable compensation paid to Senior Managers, the Supervisory Board and
the Executive Board resolved during fiscal year 2005 to submit a proposal to the AGM of Fraport AG for a new stock
options plan (“Fraport Management Stock Options Plan 2005”, “MSOP 2005”).
Further InformationConsolidated Financial StatementsFraport Annual Report 2013
1 5 8
Group Notes / Other Disclosures
On June 1, 2005, the AGM of Fraport AG passed a resolution to adopt the main points of this MSOP 2005 proposal
and the necessary capital measures to implement the plan. On the whole, it was possible to issue a total volume
not exceeding 1,515,000 stock options to all eligible employees until August 31, 2009 within the scope of the
MSOP 2005.
The stock options could be granted to eligible beneficiaries once a year in up to five annual tranches. The prerequisite
for participation in the MSOP 2005 was the direct investment in shares by employees entitled to participate (blocked
deposit).
In accordance with the aforementioned resolution, the subscription rights can be satisfied either with shares issued
on the basis of contingent capital or with treasury shares or by cash settlement.
The subscription rights for the MSOP 2005 can only be exercised after a vesting period of three years within a further
period of two years.
The stock options under the MSOP 2005 can only be exercised if the closing price of the Fraport share on the trading
day that immediately precedes the day of exercise (“valuation day”) exceeds the original exercise price by at least 20 %.
In contrast to the previous plan, the new plan not only includes an absolute exercise limit but also a relative exercise
limit linked to the performance of a specific stock basket. The amount of the resulting profit attributable to the benefi-
ciary arising from the exercise of stock options is also limited. Thus, 150 % of the original exercise price for each stock
option must not be exceeded.
The conditions to exercise the first tranche of the MSOP 2005 were first met in the 2008 fiscal year, when
44,700 options were drawn. In fiscal year 2010, 132,700 options expired because the exercise limit was not reached,
while 20,900 options expired during the entire exercise period due to job terminations.
The vesting period for the second tranche of the MSOP 2005 ended on April 18, 2009. However, the requirements for
exercising this tranche were not met, also as a result of the exercise limit. 148,300 options therefore expired in fiscal
year 2011. Another 68,100 options expired in the exercise period due to job terminations.
The vesting period for the third tranche of the MSOP 2005 ended on April 17, 2010. However, in common with
the previous tranche, the requirements for exercising this tranche were not met, also as a result of the exercise limit.
187,150 options therefore expired in fiscal year 2012. Another 32,800 options expired in the exercise period due to
job terminations.
The vesting period for the fourth tranche of the MSOP 2005 ended on June 3, 2011. The requirements for exercising
this tranche were not met, also as a result of the exercise limit. 188,350 options therefore expired in fiscal year 2013.
Another 61,600 options already expired in the exercise period in the previous year due to job terminations.
The vesting period for the fifth tranche of the MSOP 2005 ended on April 10, 2012. The requirements for exercising
this tranche were met. 224,250 options have been exercised so far, of which 22,600 in fiscal year 2013. 25,000 options
have already expired in previous years due to job terminations and so there are currently 9,250 options left. This is
approximately 3.6 % of the options originally issued.
As the authorization to issue subscription rights expired in 2009, no further stock options were issued in the
years 2010 to 2013.
For more information on contingent capital, see note 31.
Fraport Annual Report 2013 Group Notes / Other Disclosures
159
Development of the subscription rights issued
Total number
Weighted
average of
exercise price
in €
Thereof to
Executive Board
members
Thereof to
Directors of
affiliated
companies
Thereof to
Senior Managers
of Fraport AG
Rights issued as at January 1, 2013
Exercised in 2013
Expired in 2013
Rights issued as at December 31, 2013
220,200
–22,600
–188,350
9,250
30.87
23.59
40.81
24.35
54,000
–1,800
–52,200
0
29,350
–5,000
–23,100
1,250
136,850
–15,800
–113,050
8,000
Table 118
Since the exercise period of the fourth tranche from MSOP 2005 ended in 2013, the remaining 188,350 subscription
rights that have not been exercised have expired. Of these, 52,200 subscription rights relate to the Executive Board,
113,050 to Senior Managers and 23,100 to Directors of affiliated companies.
9,250 of the outstanding options can be exercised in the fifth tranche (previous year: 31,850). The weighted average
share price for fiscal year 2013 was € 48.38 (previous year: € 44.67). The key conditions for the MSOP tranches issued
in the years 2005 to 2009 are shown in the table below:
Conditions of the MSOP tranches
Grant date
End of
vesting period
End of
exercise period
Exercise threshold
in €
Exercise price
in €
Fair value 2)
in €
Tranche 2005
June 6, 2005
June 6, 2008
March 25, 2010
Tranche 2006
April 18, 2006
April 18, 2009
March 26, 2011
Tranche 2007
April 17, 2007
April 17, 2010
March 24, 2012
Tranche 2008
June 3, 2008
June 3, 2011
June 3, 2013
Tranche 2009
April 10, 2009
April 10, 2012
March 28, 2014
39.49
75.60
66.12
54.30
30.20
32.91 1)
63.00 1)
55.10 1)
45.25 1)
25.17 1)
1) Original exercise price at the grant date, subject to an adjustment by the relative performance target.
2) At the grant date.
10.96
19.27
18.42
13.40
8.55
Table 119
Personnel expenses in the amount of € 0.2 million were ultimately incurred through the MSOP 2005 in 2012. This amount
was recognized in the capital reserve.
Recognition of the stock options through profit or loss is based on the fair value of each option of a tranche. A Monte Carlo
simulation is used to determine fair value. In the process, the log-normal distributed processes of the Fraport share price
and the MSOP basket price are simulated to mirror, based on the performance targets, the respective performance of
the Fraport share and the comparative index and the increase in the closing price of the Fraport share by at least 20 %
versus the original exercise price.
The computation of whether the Fraport share outperforms or underperforms the index is made on the basis of a total
shareholder return; i.e. on the basis of the respective share performance, taking into account cash dividends, subscription
rights, capital adjustments and other exceptional rights. In addition, the Monte Carlo simulation allows for taking into
account, an early exercise, taking into account the blocked periods and the early exercise procedure for those entitled.
The fair value of all options to be measured in fiscal year 2013 was computed on the following basis.
Further InformationConsolidated Financial StatementsFraport Annual Report 2013
1 6 0
Group Notes / Other Disclosures
Interest rate
The basis of the computations on the valuation date was a continuous zero interest rate. The interest rates were
computed from the interest rate structures of government bonds maturing between one and ten years.
Dividends
Discrete dividends are used in the Monte Carlo simulation. The computation basis for future dividend payments
is public estimates made by ten banks. The arithmetic mean of these estimates is taken to determine the dividends.
Volatilities and correlation
To ensure an objective procedure, historic data is used to measure volatilities and correlations. They are determined
on the basis of the daily XETRA closing prices of the Fraport share and the daily prices of the MSOP basket index. The
price history of the index was computed using the current weighting of the index as at the grant date and taking into
consideration the historical closing prices of the index components.
The time frame for determining volatilities and correlations is the remaining maturity of the options.
The fair values at the time of issue are as follows:
Fair value of the MSOP tranches
Tranche 2005
Tranche 2006
Tranche 2007
Tranche 2008
Tranche 2009
Grant date
Fair value in € Closing price in €
June 6, 2005
April 18, 2006
April 17, 2007
June 3, 2008
April 10, 2009
10.96
19.27
18.42
13.40
8.55
33.00
58.15
55.92
43.40
27.93
Table 120
The following volatilities and correlations were used for the computation as at the respective issue date:
Volatilities and correlations
Tranche 2005
Tranche 2006
Tranche 2007
Tranche 2008
Tranche 2009
Grant date
Volatility Fraport
Volatility
MSOP basket
Correlation
Fraport/
MSOP basket
June 6, 2005
April 18, 2006
April 17, 2007
June 3, 2008
April 10, 2009
34.04 %
32.34 %
29.69 %
27.69 %
33.75 %
22.55 %
20.78 %
21.18 %
15.03 %
20.38 %
0.2880
0.2925
0.3095
0.4215
0.5382
Table 121
The computation for measuring the first tranche of the MSOP 2005 was made using a continuous zero interest rate
of 2.57 % as at the issue date. Dividends were estimated to be € 0.86 in 2006 and € 0.94 in 2007.
The computation for measuring the second tranche of the MSOP 2005 was made using a continuous zero interest rate
of 3.65 % as at the issue date. Dividend estimates were € 1.00 for 2007 and € 1.10 for 2008.
Fraport Annual Report 2013
Group Notes / Other Disclosures
161
The computation for measuring the third tranche of the MSOP 2005 was made using a continuous zero interest rate
of 4.06 % as at the issue date. Dividend estimates were € 1.16 for 2008 and €1.17 for 2009.
The computation for measuring the fourth tranche of the MSOP 2005 was made using a continuous zero interest rate
of 4.25 % as at the issue date. Dividend estimates were € 1.14 for 2009 and €1.15 for 2010.
The computation for measuring the fifth tranche of the MSOP 2005 was made using a continuous zero interest rate
of 2.51 % as at the issue date. Dividend estimates were € 1.15 for 2010 and €1.18 for 2011.
An annual increase of € 0.01 was expected for the years to come.
46
Long-Term Incentive Program (LTIP)
The LTIP for the Executive Board and Senior Managers was introduced effective January 1, 2010, to replace the previous
MSOP 2005.
A certain number of virtual shares (so-called performance shares) is allocated annually depending on certain perfor-
mance objectives. Target achievement is measured over four years (performance period); payment in cash takes place
immediately at the end of the four year performance period.
The number of virtual shares actually allocated depends on the extent to which the performance targets are met:
> Earnings per share (EPS) (target weighting 70%)
This internal performance target is determined by comparing the actual average EPS in the performance period with
the weighted average plan EPS at the time of awarding.
> Rank total shareholder return MDAX (TSR) (target weighting 30 %)
The TSR measures the development of shares over a certain period of time subject to dividends and share price
developments. Therefore, it constitutes a market-dependent performance target.
The amount of the actual tranche is limited to 150 % of the target tranche (virtual shares awarded).
A total of 82,850 virtual shares were issued in the 2013 fiscal year. A provision for the LTIP in the amount of
€ 12.0 million (previous year: € 5.9 million) is reported as at December 31, 2013.
Expense reported in fiscal year 2013 amount to €6.1 million (previous year: € 3.0 million).
Development of virtual shares issued
Tranche
Issued
Thereof
Executive
Board
Thereof
Senior
Managers of
Fraport AG
Thereof
Directors
of affiliated
companies
Thereof
expired
Additional
options
issued
Balance at
Dec. 31,
2013
Fair value
Dec. 31,
2013
Fiscal year 2010
Fiscal year 2011
Fiscal year 2012
Fiscal year 2013
Amount of
issued virtual
shares as at
Dec. 31, 2013
94,185
77,825
79,225
82,850
29,550
29,550
29,550
33,100
51,585
37,650
38,800
38,250
13,050
10,625
10,875
11,500
14,216
14,451
14,792
3,450
4,250
12,051
13,547
3,164
84,219
75,425
77,980
82,564
73.01
56.51
45.07
50.12
334,085
121,750
166,285
46,050
46,909
33,012
320,188
Table 122
Further InformationConsolidated Financial StatementsFraport Annual Report 2013
1 6 2
Group Notes / Other Disclosures
Virtual share conditions
The virtual shares in the 2013 tranche were issued on January 1, 2013. Their term is four years up to December 31, 2016.
The payout per virtual share corresponds to the weighted average closing price of the Fraport share in XETRA trading
on the first 30 stock market trading days immediately following the last day of the performance period.
Entitlement to LTIP payments is established by the approval by the Supervisory Board of the consolidated financial
statements for the last fiscal year of the performance period. Payments are then made within one month.
The valuation of the virtual shares takes place on the basis of the fair value per share for a tranche. A Monte Carlo
simulation is used to determine the fair value. In the process, the log-normal distributed processes of the Fraport share
price are simulated to determine the relevant payment according to the respective performance targets.
The fair value of virtual shares to be measured in the 2010 to 2013 fiscal years was calculated based on the following
assumptions:
The basis of the computations on the respective valuation date was a continuous zero interest rate. The interest rates
were computed from the interest rate structures of government bonds maturing between one and ten years.
The computation basis for future dividend payments is public estimates made by ten banks. The arithmetic mean
of these estimates is taken to determine the dividends.
Historic volatility is used for the calculations. The calculations are based on the daily XETRA closing price for Fraport AG.
The remaining term of the LTIP is used as the time horizon to determine volatility.
Measurement parameters (LTIP)
Tranche 2013
Tranche 2012
Tranche 2011
Tranche 2010
Jan. 1,
2013
Dec. 31,
2013
Jan. 1,
2012
Dec. 31,
2013
Jan.1,
2011
Dec. 31,
2013
Jan. 1,
2010
Dec. 31,
2013
Fair value
€38.52
€50.12
€32.42
€45.07
€42.34
€56.51
€31.68
€73.01
Target
achievement
earnings per share
Rank total
shareholder
return MDAX
Interest rate
end of period
share price
Interest rate at
time of payment
Dividend 2011
Dividend 2012
Dividend 2013
Dividend 2014
Dividend 2015
Dividend 2016
Dividend 2017
100.00 %
99.65 %
100.00 %
91.75 %
100.00 %
105.54 %
100.00 %
200.59 %
25.0
25.0
25.0
27.0
25.0
26.5
25.0
26.0
0.19 %
0.44 %
0.59 %
0.23 %
1.60 %
0.14 %
2.23 %
0.03 %
0.21 %
0.47 %
0.63 %
0.25 %
1.65 %
0.15 %
2.28 %
0.07 %
€1.26
€1.31
€1.41
€1.26
€1.25
€1.33
€1.43
€1.50
€1.27
€1.31
€1.49
€1.56
€1.56
€1.56
€1.26
€1.25
€1.33
€1.43
€1.50
€1.15
€1.17
€1.18
€1.15
€1.18
€1.23
€1.24
€1.26
€1.25
€1.33
€1.43
€1.50
€1.26
€1.25
€1.33
€1.43
€1.50
Volatility Fraport
31.55 %
25.43 %
37.66 %
22.00 %
37.83 %
17.89 %
38.55 %
13.84 %
Table 123
Fraport Annual Report 2013
Group Notes / Other Disclosures
163
47
Risk management
Fraport is exposed to market price risks mainly due to changes in exchange rates and interest rates. The Group is
additionally exposed to credit risks. There are also liquidity risks arising in connection with credit and market price risks
or resulting from a worsening of the operating business or disturbances on the financial markets. It is the objective of
financial risk management to limit these risks by current operating and finance-related activities. Depending on a risk
assessment, selected hedging instruments are used. In general, Fraport hedges only those risks that affect the Group’s
cash flows. Derivative financial instruments are used as hedging instruments; i.e. they are not used for trading purposes.
Reporting to the Executive Board of risk positions is made once per quarter as part of the early risk recognition system.
In addition, updated reporting of all material financial risk positions is provided in the monthly finance report to the
Chief Financial Officer (CFO) and in the monthly Treasury Committee Meeting held between the Treasury, Financial
Risk Controlling and the CFO.
Fraport has prepared internal guidelines that deal with the processes of risk control and regulate the use of financial
instruments; they include the unambiguous segregation of functions in respect of operating financial activities, their
settlement and accounting and the controlling of the financial instruments. The guidelines, which are the basis of the
risk management processes, aim to limit and control the risks appropriately and monitor them. Both the guidelines
and the systems are regularly reviewed and adjusted to current market and product developments.
Credit risk
Fraport is subject to default risks from its operating business and certain financial positions. The default risks arising from
financial positions are controlled by a broad diversification of counterparties and issuers, as well as regular verification
of their credit ratings. It is Fraport’s risk policy that financial assets and derivative transactions are only carried out with
issuers and counterparties with an investment grade credit rating. If the credit rating is downgraded to non-investment
grade during the asset’s holding period or the term of the derivative, a decision will be made on a case-by-case basis
on how to deal with the asset or derivative in future, taking into account the remaining term.
The maximum credit risk on the balance sheet date is mainly reflected by the carrying amounts of the assets reported in
the financial position. The credit risk on securities and promissory note loans in non-current and current assets is equal
to the amount of debt instruments. As at the 2013 balance sheet date, the breakdown of the securities was as follows:
Classification of securities
€ million
Equity instruments
Debt instruments
Dec. 31, 2013
Dec. 31, 2012
0.0
883.9
0.0
841.1
Table 124
Further InformationConsolidated Financial StatementsFraport Annual Report 2013
1 6 4
Group Notes / Other Disclosures
Securities and promissory note loans have the following long-term issuer ratings:
Issuer ratings of securities (2013)
€ million
AAA
AA +
AA
AA –
A +
A
A –
BBB +
BBB
BBB –
Total
In 2012, the securities and promissory note loans had the following issuer ratings:
Issuer ratings of securities (2012)
€ million
AAA
AA +
AA
AA –
A +
A
A –
BBB +
BBB
BBB –
BB+
Total
Dec. 31, 2013
15.6
22.2
30.1
70.0
192.4
141.3
191.3
62.0
92.9
66.1
883.9
Table 125
Dec. 31, 2012
15.7
48.5
0.0
29.0
165.1
140.5
158.3
91.5
97.2
85.3
10.0
841.1
Table 126
Fraport Annual Report 2013
Group Notes / Other Disclosures
165
The credit risk on liquid funds applies solely with regard to banks. Current cash investments are maintained with banks.
The banks where liquid funds are deposited have the following long-term issuer ratings:
Issuer ratings liquid funds (2013)
€ million
AAA
AA +
AA
AA –
A +
A
A –
BBB +
BBB
BBB –
BB +
Not rated
Total
Dec. 31, 2013
0.0
0.0
0.0
55.2
5.5
141.2
135.9
100.6
18.7
4.9
138.8
4.3
605.1
Table 127
In 2012, the banks where liquid funds were deposited had the following issuer ratings (based on short-term issuer
ratings):
Issuer ratings liquid funds (2012)
€ million
A –1+
A –1
A – 2
A – 3
P –1
P – 2
P – 3
F –1+
Not rated
Total
Dec. 31, 2012
113.6
314.0
3.4
0.0
132.3
229.5
2.3
1.0
25.8
821.9
Table 128
Liquidity risk
Fraport generates financial funds mainly through its operating business and external financing. The funds are primarily
used to finance capital expenditure for items of property, plant and equipment.
The operating cash flows, the available liquid funds (including cash and cash equivalents and short-term realizable
securities and other financial instruments), as well as current and non-current credit lines and loan commitments, give
sufficient flexibility to ensure the liquidity of the Fraport Group.
Given the diversity both of the financing sources and the liquid funds and financial assets, there is no risk of concentration
in the liquidity.
Further InformationConsolidated Financial StatementsFraport Annual Report 2013
1 6 6
Group Notes / Other Disclosures
The operating liquidity management comprises a cash concentration process, which, on a daily basis, combines the
liquid funds of most of the Group companies headquartered in Germany. This allows optimum control of liquidity
surpluses and requirements in line with the needs of individual Group companies. Short and medium-term liquidity
management includes the maturities of financial assets and financial liabilities and estimates of the operating cash flow.
The following list of maturities shows how the liability cash flows as at December 31, 2013 influence the Group’s
future liquidity.
Liquidity profile as at December 31, 2013
€ million
Total 1)
Interest
2014
Repay-
ment
2015
2016 – 2020
2021 – 2025
2026 et seqq.
Interest
Repay-
ment
Interest
Repay-
ment
Interest
Repay-
ment
Interest
Repay-
ment
Primary financial
instruments
Financial liabilities
5,294.8
117.3
294.1
111.9
507.3
465.7
2,879.0
103.0
438.5
62.1
315.9
Finance leases
Concessions payable
76.6
1,159.0
3.3
42.8
9.1
29.7
Trade accounts payable
223.4
0.9
184.1
Derivative financial
instruments
Interest rate swaps
thereof trading
185.1
33.9
thereof hedge accounting
151.2
55.7
8.4
47.3
2.7
41.0
0.9
47.4
7.6
39.8
9.7
5.8
35.2
1.7
3.2
1.1
4.8
27.5
172.4
173.8
103.1
199.9
154.4
214.4
5.4
4.2
12.3
2.4
7.5
0.6
5.1
80.9
16.8
64.1
1.1
1.1
0.0
0.0
0.0
0.0
Currency forwards
Incoming payments
Outgoing payments
1) Total of interest and repayments.
1.9
1.5
1.9
1.5
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
Table 129
The liquidity profile as at December 31, 2012 was as follows:
Liquidity profile as at December 31, 2012
€ million
Total 1)
Interest
2013
Repay-
ment
2014
2015 – 2019
2020 – 2024
2025 et seqq.
Interest
Repay-
ment
Interest
Repay-
ment
Interest
Repay-
ment
Interest
Repay-
ment
Primary financial
instruments
Financial liabilities
5,505.8
117.5
157.8
114.6
284.9
519.1
3,185.1
114.3
673.4
70.0
269.0
Finance leases
92.0
4.0
9.9
3.4
Concessions payable
1,242.4
45.0
31.5
Trade accounts payable
288.1
1.1
214.4
Loan commitments
45.5
35.5
Derivative financial
instruments
Interest rate swaps
thereof trading
253.1
45.3
thereof hedge accounting
207.8
58.3
8.5
49.8
43.4
1.0
56.4
8.5
47.9
10.1
29.2
38.8
10.0
8.0
43.5
1.8
4.9
1.2
5.2
186.8
161.0
118.9
235.5
173.5
217.6
4.1
12.4
2.4
0.0
0.6
8.2
0.0
5.1
0.0
133.6
24.9
108.7
4.6
3.2
1.4
0.2
0.2
0.0
Currency forwards
Incoming payments
Outgoing payments
1) Total of interest and repayments.
3.9
3.8
3.9
3.8
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
Table 130
Fraport Annual Report 2013
Group Notes / Other Disclosures
167
All financial instruments that are subject to contractual agreements as at the 2013 reporting date were included to
determine the undiscounted payments. If a contractual partner can release a payment at different points of time, the
earliest deadline was taken into account. The respective forward interest rates derived from the interest rate as at the
balance sheet date were used to determine the interest payments on primary financial liabilities bearing interest at
floating rates and the net payments on derivative financial instruments. Interest and redemption payments in foreign
currency are converted into the respective forward rate valid as at the balance sheet date. For payments in connection
with currency forwards, the corresponding fixed reference prices as at the balance sheet date were used.
Financial liabilities of certain Group companies abroad arising from independent project financing with a nominal value
of € 317.3 million include numerous of credit clauses that are typical for this type of financing. These clauses include
inter alia regulations under which certain debt service coverage ratios and key figures for debt ratios and credit periods
must be complied with. Failure to comply with the agreed credit clauses may lead to restrictions on the distribution
of dividends and/or to the early redemption of loans or to the additional payment of equity. Additionally, there are
contractually agreed credit clauses for specific earmarked and/or project-related public loans issued by public business
development banks and taken out by Fraport AG in the amount of € 1,110.0 million. These clauses relate, among other
things, to changes in the shareholder structure and control of the company. If these have a proven effect on the borrowing
capacity of Fraport AG, the creditors have the right to recall the loans early.
There are currently no indications of any failure to comply with the essential agreed borrowing terms and conditions.
Currency risk
The international focus of the Fraport Group makes its operating business, the financial results reported and the cash
flows subject to foreign currency fluctuation risks. Only the transaction risks affecting cash flows are actively controlled.
These mainly apply between the € and Turkish New Lira (TRY) or Saudi Riyal (SAR), as well as between the US Dollar
(US-$) and Peruvian New Sol (PEN). Transaction risks primarily originate from business operations when cash receipts
from revenue are not offset by expenditure in matching currencies. To reduce the foreign currency effects in the op-
erating business, the transaction risk is assessed on an ongoing basis and hedged in part by using derivative financial
instruments. Entering into financial instrument transactions is the responsibility of the Group companies in close
coordination with the Treasury of Fraport AG. Hedging mainly involves the use of currency forwards.
Transaction risks are assessed by means of sensitivity analysis. The calculation rates on which the analysis are based
are the result of the mean value for the respective exchange rate in the period under review, less or in addition to a
standard deviation. Taking these assumptions as a basis, the profit for the period would have been affected in the year
under review as follows:
Currency rate sensitivity
€ million
€/TRY
US-$/PEN
€/SAR
Dec. 31, 2013
Dec. 31, 2012
Gain
0.50
0.55
0.07
Loss
0.57
0.59
0.07
Gain
0.15
0.27
0.07
Loss
0.16
0.28
0.07
Table 131
There are no essential sensitivities in relation to shareholders’ equity.
In addition, there are effects in the Group from the translation of foreign currency assets or liabilities in € and/or from
the consolidation of Group companies not accounted for in €. These translational risks are met as far as possible by
applying natural hedging.
Further InformationConsolidated Financial StatementsFraport Annual Report 2013
1 6 8
Group Notes / Other Disclosures
Interest rate risk
The Fraport Group is exposed to interest rate risks on a variety of primary and derivative financial assets and liabilities,
as well as future planned capital requirements.
In regard to assets and liabilities that are currently held, the objective of refinancing at matching maturities is generally
pursued. The interest rate risk arising in the next twelve months is relevant for control. Therefore, it is assessed every
quarter and reported to the financial risk committee. Sensitivity analyses are prepared to determine the risk. These
show the effects of changes in market interest rates on interest payments, interest income and expenses, other profit
or loss portions and shareholders’ equity. Interest rate changes are defined to be the maximum fluctuation of the key
interest rate in the past for the respective currency and the respective period of time and/or the maximum fluctuation
of the ten year swap rate in the past. The deviation in absolute terms is taken into consideration.
To limit the interest rate risks, derivative financial instruments, such as interest rate swaps and swaptions, are used.
The sensitivity analyses are based on the following assumptions:
Changes in market interest rates of primary financial instruments with fixed interest rates affect profit or loss, or equity,
only if the instruments are measured at fair value. The sensitivity analysis for these financial instruments assumes
a parallel shift of the interest rate by 169 basis points over a period of twelve months.
The financial instruments measured at amortized cost with fixed interest rates do not affect profit or loss for the period
or the equity of the Fraport Group.
Market interest rate changes of primary floating-rate financial instruments, which are not designated hedged items
in a cash flow hedge of interest rate exposures, affect the interest result and are therefore included in the calculation
of profit or loss related sensitivities. The respective net financial position for each currency is taken into account in
the process. The interest rate sensitivity analyses are based on the following assumptions: €: 3.25 percentage points;
US-$: 4.75 percentage points; TRY: 10.25 percentage points; Swiss francs (CHF): 2.50 percentage points; PEN:
7.10 percentage points; SAR: 4.50 percentage points; Canadian Dollar (CAD): 3.75 percentage points; Bulgarian Lew
(BGN): 5.22 percentage points. The individual sensitivities are then aggregated to become one profit or loss related
sensitivity in €.
Changes in market interest rates of financial instruments which were designated as hedging instruments in an interest
rate related cash flow hedge affect equity and are therefore included in the equity-related sensitivity computations.
The maximum variability is taken to be a parallel shift of the interest rate curve by 169 basis points over a period of
twelve months.
Changes in market interest rates of interest rate derivatives, which are not part of a hedging relationship according to
IAS 39, affect the other financial result and are therefore included in the profit or loss related sensitivities. The maximum
variability is taken to be a parallel shift of the interest rate curve by 169 basis points over a period of twelve months.
Based on the portfolios and the structure of the consolidated financial position as at December 31, 2013 and the
assumptions made, the profit or loss related sensitivity is €0.4 million in the event of an increase (decrease) in the market
interest rate (previous year: € 8.1 million). This means that the financial result could hypothetically have increased
(decreased) by € 0.4 million. This hypothetical effect on profit or loss would have resulted from the potential effects of
interest rate derivatives of € 20.2 million (previous year: € 25.3 million) and an increase (decrease) in the interest result
from primary floating-rate net financial positions of – € 19.8 million (previous year: –€ 17.2 million).
Fraport Annual Report 2013 Interest sensitivity
€ million
Interest sensitivity
thereof derivative financial instruments
thereof primary financial instruments
Group Notes / Other Disclosures
169
Dec. 31, 2013
Dec. 31, 2012
0.4
20.2
– 19.8
8.1
25.3
– 17.2
Table 132
The equity-related sensitivity is € 46.2 million (previous year: € 73.3 million). By applying the assumptions made,
an increase (decrease) in interest rates would have resulted in an increase (decrease) in equity of € 46.2 million.
Capital management
The Group’s objectives with a view to capital management are ensuring the company’s continued existence and a
sustained increase in the company’s value. As a capital market-oriented company with continuing capital expenditure
requirements, Fraport monitors the development of its financial debt using ratios, which relate EBITDA to net financial
debt and/or interest expense. As long as the company remains within the following margins, Fraport’s present view is
that there is sufficient access to debt capital sources at reasonable costs.
The components of the control indicators are defined as follows:
Components of the control indicators
Net financial debt
EBITDA
Interest expense
Current financial liabilities
+ Non-current financial liabilities
– Liquid funds
– Current realizable assets in “other financial assets” and
“other receivables and financial assets”
Operating result + depreciation and amortization
Interest expense
Table 133
The financial ratios developed as follows in the period under review:
Financial debt ratios
Net financial debt/EBITDA
EBITDA/interest expense
48
Related party disclosures
Corridor
Dec. 31, 2013
Dec. 31, 2012
max. 4 – 6 x
min. 3 – 4 x
3.4
4.1
3.4
3.8
Table 134
According to IAS 24 (related party disclosures), Fraport must disclose relationships with related parties, unless they are
already included as consolidated companies in the consolidated financial statements of Fraport AG.
Relationships with related parties and the State of Hesse
Alongside the Group companies included in the consolidated financial statements, in the context of the course of
ordinary business operations, the Group is also related to parties that are not included as well as associated companies
and joint ventures, which are parties related to the Group according to IAS 24. Thus, Fraport AG has numerous business
relationships with the state of Hesse and the City of Frankfurt and their majority-owned investments. Related companies
and authorities with which major business relationships are maintained include Landesbetrieb Hessen-Forst, Mainova
AG and Messe Frankfurt Venue GmbH & Co. KG.
Further InformationConsolidated Financial StatementsFraport Annual Report 2013
1 7 0
Group Notes / Other Disclosures
All transactions with related parties have been concluded under conditions customary in the market as between
unrelated third parties. The services rendered to authorities are generally based on cost prices. The following table
shows the scope of the respective business relationships:
Relationships with related parties and the State of Hesse
€ million
Majority shareholders
Stadtwerke
Frankfurt am
Main Holding
GmbH
State of Hesse
Joint ventures
Associated
companies
Companies
controlled and
significantly
influenced
by majority
shareholders
Revenue
Purchased goods and services
Interest
Accounts receivable
Loans
Accounts payable
2013
2012
2013
2012
2013
2012
2013
2012
2013
2012
2013
2012
1.6
1.6
14.6
2.4
– 0.9
– 0.9
0.4
–
–
–
24.9
26.3
0.2
0.2
9.3
8.2
–
–
–
–
–
–
–
–
3.6
3.1
8.3
7.9
0.2
0.3
0.3
0.2
2.8
8.0
4.3
2.5
5.9
6.1
13.2
13.5
11.5
10.4
30.3
19.0
120.3
120.3
9.1
0.8
14.7
13.3
102.8
92.5
–
–
0.1
0.5
–
–
40.1
26.6
Table 135
Relationships with related persons
In accordance with IAS 24, Fraport AG also reports business transactions with persons related to it and their family
members. The Executive Board, Supervisory Board and their family members are defined as related persons pursuant
to IAS 24.
Remuneration for management in key positions in accordance with IAS 24 comprises the remuneration of the active
Executive Board and Supervisory Board.
These were compensated as follows:
Remuneration of management
€ million
Salaries and other short-term employee benefits
Termination benefits
Post-employment benefits
Other long-term benefits
Share-based remuneration
Total
2013
2012
5.1
0.0
1.0
0.2
2.3
8.6
4.4
0.0
1.1
0.2
1.0
6.7
Table 136
Information regarding salaries and other short-term employee benefits for employee representatives on the Supervisory
Board exclusively includes remuneration for their Supervisory Board activities.
Services following the end of the employment include service costs from pension provisions for the active members
of the Executive Board.
Fraport Annual Report 2013
Group Notes / Other Disclosures
171
The expense for the Long-Term Strategy Award (LSA, see also note 52) is accounted for as other long-term employee
benefits in fiscal year 2013.
The statement of share-based remuneration includes the expense for the Long-Term Incentive Program (LTIP, see also
note 52) realized in the fiscal year.
49
Operating permit and service concession agreements
The following Group companies in the Fraport Group have been granted service concessions or similar permits, which
give the public access to important economic and social facilities:
Fraport AG
In agreement with the German Federal Minister of Transport, the Minister of Labor, Economics and Transport for
the State of Hesse approved operations at Frankfurt am Main Airport in accordance with Section 7 as amended on
August 21, 1936, of the German Air Traffic Act on December 20, 1957. This permit does not expire at any specific time
and was last amended by the decision of October 29, 2012 based on the outcome of the zoning decision process for
the expansion of the airport, in particular regarding the Northwest Landing Runway, taking into account the relevant
ruling of the German Federal Administrative High Court.
The right to operate the airport is linked to various obligations that are specified in the permit. Fraport AG is required,
among other things, to keep the airport in good operating condition at all times, to provide and maintain the equipment
and signs needed to monitor and control air traffic at the airport and to guarantee the availability of fire prevention
and protection systems that take account of the special operating conditions. The restrictions on night flights that
were initially imposed in 1971 and subsequently updated have been tightened by the aforementioned amendment
and extension to the permit. Daytime operational restrictions on aircraft for civil aviation purposes at Frankfurt Main
Airport that do not comply with the International Civil Aviation Organization (ICAO) noise protection regulations have
been further tightened. Furthermore, there are statutory requirements for passive noise abatement and outdoor living
area compensation as a result of the construction work for the airport expansion and the Northwest Landing Runway.
The company charges airlines that fly to Frankfurt Main Airport what are known as “traffic charges” for provision of the
transport infrastructure. These traffic charges are broken down into airport charges that require approval and other
charges that do not require approval.
> The airport charges that require approval according to Section 19b of the German Air Traffic Law (LuftVG) are divided
into take-off and landing charges, including noise components and emission charges, parking charges and passenger
and security charges as well as charges for the financing of passive noise abatement measures (noise surcharges).
The amount of the charges is specified in a related charge table.
Already on February 19, 2010, an agreement was reached on airport charges for 2012 to 2015 by Fraport AG and
airline representatives. The contract stipulates an annual charge increase by 2.9 % for each year until 2015. If passenger
development exceeds or falls below the forecasted figures, the contract calls for a bonus/malus approach to be used.
The charge table effective January 1, 2013 was approved by the HMWVL and published in the Air Transport Bulletin
(NfL). In addition, charges for the financing of passive noise abatement measures (noise surcharges) have been levied
since July 1, 2012 (see also note 25). Airport charges accounted for 35.67 % (previous year: 35.48 %) of Fraport AG’s
revenue in the year under review.
Furthermore, Fraport proposed an incentive program for the years 2014 and 2015, which was approved by the
HMWVL on December 4, 2013. It provides for retroactive discounts per departing passenger when the airlines have
reached a minimum passenger quantity as well as a minimum level of growth and when the passenger travels via
low-noise aircraft.
Further InformationConsolidated Financial StatementsFraport Annual Report 2013 1 7 2
Group Notes / Other Disclosures
> The remaining charges not subject to approval are classified as charges for central ground handling infrastructure
facilities and ground handling charges. In accordance with EU regulations, ground services on the apron were
opened up to competition on November 1, 1999 (opened up in practice on April 15, 2000), by issuing a permit
to another third-party ground handling company along with Fraport AG. The services in the area of central ground
handling infrastructure facilities continue to be excluded from competition (monopoly sector) and are completely
segregated from the ground handling services when they are offset with the airlines. Of Fraport AG’s revenue in
2013, 16.52 % (previous year: 17.18 %) was generated by ground handling services and 13.51 % (previous year:
13.53 %) by infrastructure charges.
Above and beyond the traffic charges, Fraport AG generates revenue essentially from revenue-based payments, renting
and parking and security services. The proceeds from these operations – which do not require approval – accounted
for 34.30 % (previous year: 33.81 %) of Fraport AG’s entire revenue in the year under review.
Fraport IC Ictas Antalya Airport Terminal Investment and Management Inc. (franchisee)
In April 2007, the consortium in which Fraport AG holds an interest won the bidding procedure to operate the ter-
minals at Antalya Airport for 17 years. The consortium and the Turkish airport authority (DHMI – franchisor) signed
the concession agreement on May 22, 2007. Since September 14, 2007, Fraport AG and IC Yatirim Holding A.S. have
been jointly managing the International Terminal 1 previously managed by Fraport AG, as well as the domestic and
CIP terminals. On September 23, 2009, the Fraport consortium also took over operation of the second international
terminal previously operated by IC Holding and Celebi Holding. The concession for the operation of all three terminals
and the right to use all assets listed in the concession agreement extends to the end of 2024.
The franchisee is obliged in this context to provide terminal services in compliance with international standards, as
well as the procedures and principles specified in the concession agreement. With regard to the authorized use of
infrastructure, the franchisee is obligated to perform maintenance and capacity expansions (as required). Distributed
over the term of the concession agreement, the franchisee also pays a concession fee of € 2.01 billion net.
In exchange, the franchisee receives the right to use the existing and future terminal infrastructure to operate the
airport and the right to generate revenue from passenger charges paid by the airlines and from other services related
to terminal operations. Passenger charges are regulated by the franchisor.
At the end of the concession term, the franchisee is required to return all assets specified in the concession agreement
to the franchisor in proper operating condition.
In accordance with the concession agreement, the franchisee deposited a performance bond amounting to
€ 142.8 million at the beginning of the concession period for the benefit of the franchisor. This performance bond was
issued by a Turkish bank, secured in part by corporate guarantees given by the shareholders. The proportion guaran-
teed to the bank by Fraport AG in the form of a corporate guarantee was € 35.7 million. Following official approval of
the new domestic terminal (Terminal 3) by the franchisor, the performance bond was reduced to € 142.3 million as
agreed. The proportion guaranteed by Fraport AG thus amounts to € 35.6 million.
Fraport Twin Star Airport Management AD
Fraport Twin Star Airport Management AD (franchisee) and the Republic of Bulgaria (franchisor), represented by its
Minister of Transport, signed a concession agreement on September 10, 2006, for the operation and management of
the Bulgarian airports in Varna and Burgas on the Black Sea.
According to the concession agreement, the franchisee is obligated to render various airport services and to improve
services in line with international standards, national laws and the provisions stipulated in the concession agreement.
In addition, the franchisee is obligated to invest € 243.3 million in the expansion and a capacity increase of the airports
in Varna and Burgas and to maintain the assets ceded for use. In addition, the franchisee pays an annual concession
fee of 19.2 % of total revenue, at least 19.2 % of BGN 57 million (€ 29.1 million), adjusted for the development of the
Fraport Annual Report 2013 Group Notes / Other Disclosures
173
national inflation rate, to the franchisor. The franchisee paid an additional non-recurring concession fee in the amount
of € 3.0 million to the franchisor after the agreement was signed. In return, the franchisee receives the right to use the
existing and future infrastructure for airport operations and the right to generate revenue, in particular through airport
charges (passenger, landing and parking charges) and for ground handling services. Airport charges are regulated
by the franchisor.
The concession agreement started on November 10, 2006 and has a duration of 35 years.
The franchisee is obligated to furnish the franchisor with a performance bond issued by a bank rated BB – or higher, in
the annual amount of € 15.0 million in the first ten years and in the annual amount of € 7.5 million during the remaining
term of the agreement.
At the end of the concession term, the infrastructure pursuant to the contract that is essential for airport operations
must be returned to the franchisor in proper operating condition without receiving any consideration in return.
Lima Airport Partners S.R.L. (LAP)
On February 14, 2001, LAP (franchisee) and the Peruvian Government (franchisor), represented by its Minister of
Transportation (MTC), signed the concession agreement for Jorge Chávez International Airport for the operation,
expansion, maintenance and use of the Jorge Chávez International Airport in Lima (Peru).
The term of the concession agreement is 30 years. The contract may be renewed for another ten years. Further renewals
are possible under certain conditions; the overall concession term must not exceed 60 years, however.
In addition to operating and maintaining the airport infrastructure, the franchisee is obligated vis-a-vis the franchisor
to invest at least US-$100 million for the remodeling of the airport, in particular, the terminal and to build a second
landing runway. The contractual amount of US-$100 million has been invested already. Construction work on the
second landing runway has not yet begun.
The franchisee is also obligated to pay concession fees. The concession fee is the higher of two amounts: either the
contractually fixed minimum payment (basic payment of US-$15 million per year, adjusted for inflation by US CPI) or
46.511 % of total revenue after deduction and transfer to Corpac (Aviation Regulatory Authority) of 50 % of the landing
charges and 20 % of the international passenger charges (TUUA). In addition, a regulatory charge of 1 % of the same
assessment basis is payable. In return, the franchisee receives the right to use the existing and future infrastructure for
airport operations and the right to generate revenue, in particular through airport charges (passenger, landing and
parking charges) and for ground handling and other services. Airport charges are regulated by the franchisor.
At the end of the contract term, the infrastructure pursuant to the contract that is essential for airport operations must
be returned to the franchisor by the franchisee in the contractually defined operational condition. The franchisee has
the right to have the residual carrying amount of said infrastructure reimbursed by the franchisor for a limited period
of time. This does not apply if the concession agreement is terminated early.
50
Information on shareholdings pursuant to the German Securities Trading Act (WpHG)
Fraport AG did not receive any notifications pursuant to Section 21 (1) of the WpHG in fiscal year 2013.
As at December 31, 2013, the shareholder structure of Fraport AG was as follows:
The total voting rights in Fraport AG held by the State of Hesse and Stadtwerke Frankfurt am Main Holding GmbH calculated
in accordance with Section 22 (2) of the WpHG amounted to 51.40 % as at December 31, 2013. At that time, they were
attributed as follows: State of Hesse 31.37 % and Stadtwerke Frankfurt am Main Holding GmbH 20.03 %.
Further InformationConsolidated Financial StatementsFraport Annual Report 2013 1 7 4
Group Notes / Other Disclosures
The voting rights in Fraport AG owned by the City of Frankfurt am Main are held indirectly via the Stadtwerke Frankfurt
am Main Holding GmbH subsidiary.
According to the last official report in accordance with the WpHG or individual disclosures by the shareholders, the
other voting rights in Fraport AG were attributable as follows (as at December 31, 2013): Deutsche Lufthansa AG 8.46 %
Lazard Asset Management LLC 3.16 % and RARE Infrastructure Limited 3.06 %. The relative ownership interests were
adjusted to the current total number of shares as at the balance sheet date and may therefore differ from the figures
given at the time of reporting or from the respective shareholders’ own disclosures.
There are no reports for the remaining 33.92 % (free float).
51
Statement issued by the Executive Board and the Supervisory Board of Fraport AG
pursuant to Section 161 of the AktG
On December 17, 2013, the Executive Board and the Supervisory Board of Fraport AG issued the Statement of
Compliance with the Corporate Governance Code pursuant to Section 161 of the AktG and made it available to
the public on a permanent basis on the Group’s website www.fraport.com in the The Fraport Group/Corporate
Compliance section.
52
Information concerning the Executive Board, Supervisory Board and
Economic Advisory Board
Remuneration Report
The following remuneration report describes the main features of the remuneration system for the Executive Board
and Supervisory Board of Fraport AG in accordance with the statutory regulations and the recommendations of the
German Corporate Governance Code (GCGC) as amended on May 13, 2013. It summarizes which principles apply
in determining the total compensation of the members of the Executive Board and explains the structure and amount
of the remuneration of the Executive Board and Supervisory Board members.
Remuneration of the Executive Board members in fiscal year 2013
Remuneration system
Executive Board remuneration is set by the Supervisory Board upon the recommendation of its executive committee
and is reviewed on a regular basis. The remuneration of the Executive Board members of Fraport AG shall be in propor-
tion to the tasks of the position and the company’s situation and in line with a transparent and sustainable corporate
governance approach which focuses on the long-term.
Compensation is comprised as follows:
> Non-performance-related components (fixed salary and compensation in kind)
> Performance-related components with a short- and mid-term incentive effect (bonus)
> Performance-related components with a long-term incentive effect
(Long-Term Strategy Award and Long-Term Incentive Program)
Generally, the Supervisory Board has been guided by the principle that in the ordinary course of business, members of
the Executive Board shall receive a fixed annual salary, which makes up approximately 35 % of total compensation. The
bonus payment should also amount to approximately 35 % of total compensation. The Long-Term Strategy Award should
account for approximately 10 % of total compensation and the share of the Long-Term Incentive Program about 20 %.
In order to comply with the remuneration-related amendments of the GCGC in the version dated May 13, 2013, with
effect starting in fiscal year 2014, a maximum limit was defined with each Executive Board member for the sum of
the aforementioned respective remuneration components. For the Chairman of the Executive Board this amounts to
€ 2.3 million and € 1.65 million for the other members of the Executive Board. This maximum limit also applies in relation
Fraport Annual Report 2013 Group Notes / Other Disclosures
175
to the remuneration that was granted during the previous fiscal years 2010 to 2013, the components of which have
not yet been fully paid out.
In addition to the aforementioned remuneration components, there are still stock options outstanding, issued in
previous years, that have a long-term incentive effect as part of the stock options plan still running (see also note 45).
The last time stock options were issued was in 2009. In addition, Executive Board members received contributions
for pension benefit commitments. The pension commitments, including performance-related contributions, are in
a fixed proportion to the respective fixed gross annual salary and are therefore subject to implicit maximum limits.
Non-performance-related components
During the term of their employment agreement (generally five years), Executive Board members, as a rule, receive
a fixed annual salary for the entire period.
The amount of the fixed annual salary is reviewed on a regular basis, generally annually, to ensure that it is appropriate.
The fixed annual compensation also covers any activity performed by an Executive Board member for companies in
which Fraport AG holds an indirect or a direct interest of more than 25 % (so-called “other board mandates related
to Group companies”).
If an Executive Board member has such other board mandates at Group companies, the compensation he or she
receives from such companies is credited against the remuneration. The compensation received by Dr Zieschang
for his activities performed as a member of the Supervisory Board of Flughafen Hannover-Langenhagen GmbH was
credited against his remuneration of 2013 from Fraport AG.
In addition, the compensation for Executive Board members includes compensation in kind and other payments
(ancillary benefits). Compensation in kind is the pecuniary benefit subject to income tax from using a company car with
driver. This compensation in kind is generally available to all Executive Board members in the same way; the amount
of compensation depends on the personal situation.
Executive Board members also receive half of the total contributions toward their pension insurance in the case of
voluntary insurance and in the case of statutory insurance, half of the total statutory contributions.
Performance-related components
Without a long-term incentive effect (bonus)
The bonus is dependent on EBITDA and ROFRA of the Fraport Group for the respective fiscal year. EBITDA is the Group
operating result, ROFRA the interest on Group assets; i.e. the total return on capital (“return on Fraport assets”). Both key
figures (EBITDA and ROFRA) are recognized business management parameters for measuring the success of a company.
The actual bonus for an Executive Board member is calculated by multiplying EBITDA and ROFRA, each minus a basic
allowance, by an individual multiplier for each Executive Board member, stipulated in each employment contract and
adding the aforementioned parameters. The bonus amount for one fiscal year is capped at 175 % of the bonus paid for
2009 or if the member was appointed during the year or the employment contract was amended in 2009, an amount
extrapolated for the entire year. For Executive Board members appointed as of 2012 the maximum bonus amount
for a fiscal year is limited to 140 % of the bonus calculated pro forma for fiscal year 2011. 50 % of anticipated bonus
payments are paid out monthly during the fiscal year. The remaining bonus payments are payable within one month
after the Supervisory Board has approved the respective consolidated financial statements.
50 % of the calculated bonus payments have a conditional payback provision. If EBITDA and ROFRA in the following year
do not reach at least an average of 70 % of the corresponding key figure for the fiscal year in question, the Executive
Board member has to pay back 30 % of the bonus to Fraport AG. Should the same apply to the second year after the
relevant fiscal year, 20 % of the bonus has to be repaid. A possible repayment obligation exists for each following year
separately and must be individually reviewed each year for compliance.
Further InformationConsolidated Financial StatementsFraport Annual Report 2013 1 7 6
Group Notes / Other Disclosures
If the Supervisory Board is of the opinion that the relevant business figures have decreased due to influences outside
of the Executive Board’s control, it can grant a bonus at its discretion or waive the full or partial repayment, based on
the Executive Board member’s performance. If an Executive Board member holds an active position for less than one
fiscal year, a pro rata bonus payment is made.
With a long-term incentive effect (Long-Term Strategy Award, LSA)
The LSA creates an additional long-term incentive effect that takes into reasonable consideration the long-term interests
of the main stakeholders of Fraport AG, specifically employees, customers and shareholders.
As part of the LSA, each Executive Board member is promised a prospective financial reward for one fiscal year – the
first being in 2010 for the year 2013. After three fiscal years have expired (the fiscal year in question and the two
following years), the extent to which the targets have been met is determined and the actual payment is calculated
based on these results. The paid amount can exceed or fall below the prospective amount but is capped at 125 % of
the originally stated amount. Performance targets are customer satisfaction, sustained employee development and
share performance. All three targets are equally important under the LSA. As in the previous year, for 2016 a prospec-
tive sum of € 120 thousand has been promised to the Chairman of the Executive Board, while a prospective sum of
€ 90 thousand each has been promised to the other members of the Executive Board. Michael Müller and Anke Giesen
participate in the Plan Award for 2011 and 2012 on a pro rata basis.
Customer satisfaction is evaluated on an annual basis using an established assessment system for airlines, real estate
management, retail properties and passengers. Whether or not a target has been met is determined by comparing
the corresponding data (in percentage points) at the beginning of the three-year period with the average achieved
over the same period. If the actual result exceeds or falls below the target by two full percentage points, the bonus
paid for customer satisfaction is increased or decreased correspondingly.
Sustained employee development relates to employee satisfaction and the changes in headcount. The Supervisory
Board decides the extent to which the target has been met. Its decision is based on the results of the employee satisfaction
barometer (a survey among Fraport AG employees carried out annually or at least every two years) and the responsible
development of headcount in view of the economic situation of the Group.
For the share performance target, the Fraport share price development over the corresponding three-year period is
compared with the average development of the MDAX and a share basket, which includes the shares of the opera-
tors of the Paris, Zurich and Vienna airports. The payment for this share performance target is again determined by
comparing the reference value calculated at the beginning of the three-year period with the actual development.
Positive or negative deviations increase or decrease the prospective bonus correspondingly.
Entitlement to LSA payments is established by approval by the Supervisory Board of the consolidated financial state-
ments for the last fiscal year of the performance period.
If an Executive Board member leaves Fraport AG before the end of a three-year period, the performance targets for
such an Executive Board member are not calculated until after this period has expired. The award for the entire period
is then paid on a pro rata basis for the amount of time the Executive Board member actually worked for the company.
There is no right to payment for a three-year period which has not yet expired at the time the employment contract has
been legally terminated due to extraordinary circumstances that are within the control of the Executive Board member
(termination by request of the Executive Board member without cause pursuant to Section 626 of the German Civil
Code (BGB), termination for cause within the control of the Executive Board member in accordance with Section 626
(BGB) or if the Executive Board member has been removed from his or her office for cause pursuant to Section 84 (3)
of the AktG. If an Executive Board member joins the company during the course of a fiscal year, the Supervisory Board
decides if and to what extent the Executive Board member is entitled to participate in the LSA program for this fiscal year.
Fraport Annual Report 2013
Group Notes / Other Disclosures
177
Long-Term Incentive Program (LTIP)
The LTIP is a virtual stock options program. Beginning in fiscal year 2010, the Executive Board members of Fraport AG
are promised each fiscal year a contractually stipulated amount of virtual shares within their employment agreements,
so-called performance shares, on the condition that and depending on whether they meet pre-defined performance
targets (the so-called “target tranche”). After four fiscal years – the performance period – it will be determined to
what extent these performance targets have been met and the number of performance shares actually due to the
Executive Board member, the so-called actual tranche. The actual tranche can exceed or fall below the target tranche
but is capped at 150 % of the target tranche.
The two performance targets “earnings per share” (EPS) and “rank total shareholder return MDAX” are relevant for
deriving the actual tranche from the target tranche, with earnings per share (EPS) being weighted at 70 % and rank
total shareholder return MDAX at 30 %. For the fiscal year 2013, as in the previous year, 9,000 performance shares
were allocated to Dr Stefan Schulte as a target tranche, while Peter Schmitz and Dr Matthias Zieschang each received
6,850 performance shares. For the fiscal year 2013, 6,850 performance shares were allocated to Anke Giesen and
3,550 were allocated to Michael Müller.
In order to determine to what extent the EPS performance target has been met, the weighted average target EPS during
the performance period, based on the strategic development planning applicable at the time of the award, is compared
with the average EPS actually achieved during the performance period. For the evaluation to what extent the target
has been met, the target EPS for the first fiscal year accounts for 40 %, the second for 30 %, the third for 20 % and the
fourth for 10 %. If targets have been met 100 % over the performance period, the actual tranche corresponds to the
target tranche. If the actual EPS differs from the target EPS, the number of allocated performance shares is adjusted
accordingly. If the actual EPS falls below the target EPS by more than 25 percentage points, no performance shares
are issued for the EPS performance target. If the actual EPS falls below the target EPS by 25 percentage points, the
actual tranche amounts to 50 % of the target tranche. If the actual EPS exceeds the target EPS by 25 percentage points,
the actual tranche amounts to 150 % of the target tranche. Intermediate values can be calculated using a straight-line
method. Any performance exceeding the targets by more than 25 percentage points is not taken into account.
The extent to which the rank total shareholder return MDAX performance target has been met is calculated by
determining the weighted average rank of Fraport AG amongst all companies listed in the MDAX in relation to the
total shareholder return (share price development and dividends) over the performance period. Just as with the EPS
performance target, the four relevant fiscal years will be weighted downwards. The actual tranche shall equal the
target tranche if Fraport AG, during the performance period, ranks number 25 among total shareholder return MDAX
with its weighted average. For each rank exceeding or falling below 25, the actual tranche is increased or reduced
by 2.5 percentage points. If Fraport AG ranks worse than 45, no performance shares will be issued for the rank total
shareholder return MDAX performance target; if Fraport AG ranks better than five, there will not be a further increase
in the number of performance shares issued over fifth place.
The relevant share price used for calculating the LTIP payment shall correspond to the weighted average of the
company’s closing share prices in XETRA or a similarly situated trading system at the Frankfurt Stock Exchange dur-
ing the first 30 trading days immediately subsequent to the last day of the performance period. For the performance
shares issued in 2013 and in previous fiscal years, the relevant share price for calculating the LTIP payment is limited to
€ 60 per performance share. Entitlement to LTIP payments is established by the approval by the Supervisory Board of
the consolidated financial statements for the last fiscal year of the performance period.
Further InformationConsolidated Financial StatementsFraport Annual Report 2013 1 7 8
Group Notes / Other Disclosures
For all performance shares allocated from the fiscal year 2014 onwards, the LTIP payment is limited to 150 % of the
product from the performance shares of the actual tranche multiplied by the “relevant share price at the time of
issuance”. The “relevant share price at the time of issuance” corresponds to the weighted average of the company’s
closing share prices in XETRA or a similarly situated trading system at the Frankfurt Stock Exchange during the month
of January of the fiscal year, in which the relevant performance period begins.
Furthermore, for all LTIP performance share tranches that have already been allocated and will be in future, maximum
payment amounts have been defined, which amounts to a maximum of € 810.0 thousand for Dr Schulte and for the
other Executive Board members € 616.5 thousand per performance share tranche.
The rules for LTIP entitlements of former Executive Board members are largely the same as for the LSA. In addition,
a former Executive Board member is not entitled to any performance shares for a target tranche whose performance
period has lasted less than twelve months at the time the employment contract was legally terminated. The LTIP
fair value accrual allocation resulted in the following expenses for the fiscal year: Dr Stefan Schulte € 648.8 thousand
(previous year: € 370.5 thousand), Anke Giesen €233.3 thousand, Michael Müller € 128.7 thousand (previous year:
€ 50.2 thousand), Peter Schmitz € 532.6 thousand (previous year: € 256.3 thousand), Dr Matthias Zieschang
€ 532.6 thousand (previous year: € 256.3 thousand), Herbert Mai € 200.1 thousand (previous year: € 112.8 thousand).
Pension commitments
The Executive Board members are entitled to pension benefits and provision for surviving dependents. An Executive
Board member is generally entitled to retirement benefits if he or she becomes permanently unable to work or retires
from office during the duration of, or upon expiry of, his or her employment agreement. If an Executive Board member
dies, benefits are paid to his or her surviving dependents. These amount to 60 % of the retirement pension for the
widow or widower; children entitled to receive benefits receive 12 % each. If no widow’s pension is paid, the children
each receive 20 % of the retirement pension.
Upon retirement, income from active employment as well as retirement pension payments from previous or, where
applicable, later employment relationships shall be credited against accrued retirement pay up until reaching 60 years
of age, insofar as without such credit the total of these emoluments and the retirement pension would exceed 75 % of
the fixed salary (100 % of the fixed salary if Fraport AG wishes the employment to be terminated or not be extended).
Effective January 1 of each year, the pensions are adjusted at discretion, taking into account the interests of the former
Executive Board member and the company’s economic situation. The adjustment obligation shall be considered to
be satisfied if the adjustment does not fall below the increase in the consumer price index for the cost of living for
private households in Germany.
The retirement pension of an Executive Board member is defined by the percentage of a contractually agreed basis
of assessment, with the percentage rising annually by 2.0 % up to a limit of 75 %, dependent on the duration of time
an Executive Board member is appointed.
As at December 31, 2013, Dr Schulte is entitled to 58.0 % of his fixed annual gross salary. Mr. Schmitz is entitled to
38.0 % of his fixed annual gross salary as at December 31, 2013. The basic account commitment (guideline 2 of the
Fraport capital account plan – “Kapitalkontenplan Fraport” – concerning the company benefit plan for Senior Managers,
dated February 26, 2002), to which Mr. Schmitz is entitled under Fraport AG’s company benefit plan up to
December 31, 2008, shall be credited pro rata temporis against pension payments over a period of eight years after
the employment contract has been terminated or expires. As at December 31, 2013, Dr Zieschang is entitled to
42.0 % of his fixed annual gross salary.
In the event of occupational disability, the pension rate for Dr Schulte, Mr. Schmitz and Dr Zieschang amounts to
at least 55 % of their respective fixed annual gross salaries or of the contractually agreed basis of assessment.
Fraport Annual Report 2013 Group Notes / Other Disclosures
179
For Executive Board members appointed as of 2012, the pension benefits and provision for surviving dependents
as well as provision for long-term occupational disability are governed by a separate benefit agreement. This calls
for a one-time pension capital or life-long retirement payments after the insured event become due. The pension
capital is generated when Fraport AG annually credits 40 % of the fixed annual gross salary paid to a pension account.
The pension capital accumulated at the end of the previous year pays interest annually at the interest rate used for
the valuation of the pension obligations in the German commercial balance sheet of Fraport AG at the end of the
previous year pursuant to Section 253 (2) of the HGB, which is at least 3 % and at most 6 %. This is increased by 1 % on
January 1 of each year for life-long retirement payments. No further adjustment is made. If the pension capital reached
is less than € 600 thousand when retirement benefits fall due as a result of long-term occupational disability, Fraport AG
will increase it to this amount. In the event of long-term occupational disability within the first five years of their
activities performed as members of the Executive Board, it is foreseen that Executive Board members can postpone
the receipt of a monthly pension of to a maximum of five years since the start of the employment contract. Until the
postponed start of the pension benefit payments, they will receive a monthly benefit of € 2.5 thousand. This risk of
pension payments in the increase phase and of payments for the increase has been covered by an occupational
disability insurance policy. The full amount of all income within the meaning of the Income Tax Act from employment
or self-employment is credited against the retirement benefits paid until the end of the month in which the Executive
Board member reaches the age of 62.
The surviving dependents of Executive Board members appointed from 2012 receive the following benefits: If there
is no prior event giving rise to retirement benefits, the benefits for the widow or widower is the pension capital gen-
erated so far. If there is no eligible widow or widower, each half-orphan will receive 10 % and each full-orphan will
receive 25 % of the pension capital generated so far as a one-time payment. If the pension capital reached is less than
€ 600 thousand upon death, Fraport will increase it to this amount. The payment risk of this increase has been covered
by a term life insurance policy. If an Executive Board member dies while collecting retirement benefits, the widow or
widower is entitled to 60 % of the last retirement benefits granted. Each half-orphan receives 10 % and each full-orphan
receives 25 % of the last retirement benefits granted. If there are no surviving dependents as set forth above, the heirs
receive a one-time death grant in the amount of € 8.0 thousand.
Moreover, each member of the Executive Board has entered into a two-year restrictive covenant. During this term,
reasonable compensation in the form of an annual gross salary (fixed salary) pursuant to Section 90a of the HGB shall
be paid. Partly payments shall be made monthly. The compensation shall be generally credited against any retire-
ment payments owed by Fraport AG, inasmuch as the compensation together with the retirement payments and other
generated income exceed 100 % of the last fixed salary received.
No other benefits have been promised to Executive Board members, should their employment be terminated.
The retirement pension entitlement of former Executive Board members is determined by a percentage of a contractually
agreed fixed basis of assessment.
Detailed information on the compensation components and amount of compensation of the Executive Board members
of Fraport AG in 2013 is shown in the following tables.
Further InformationConsolidated Financial StatementsFraport Annual Report 2013
1 8 0
Group Notes / Other Disclosures
Remuneration of the Executive Board 2013
The following remuneration was paid to the members of the Executive Board:
Remuneration of the Executive Board 2013
in €´000
Remuneration paid out in cash
Total
Non-performance-related
components
Fixed salary
In kind
and other
Performance-
related
component with-
out long-term
incentive effect
Performance-
related
component
with long-term
incentive effect
Bonus
LSA
Dr Stefan Schulte
Anke Giesen
Michael Müller
Peter Schmitz
Dr Matthias Zieschang
Total
100.0
1,212.3
415.0
300.0
300.0
300.0
320.0
22.5
43.9
47.0
33.1
43.9
674.8
476.3
296.4
476.3
523.9
0.0
0.0
70.0
70.0
1,635.0
190.4
2,447.7
240.0
820.2
643.4
879.4
957.8
4,513.1
Table 137
Remuneration of the Executive Board 2013
in €´000
Performance-related component with long-term incentive effect
Share-related remuneration
Dr Stefan Schulte
Anke Giesen from Jan. 1, 2013
Michael Müller
Peter Schmitz
Dr Matthias Zieschang
Total
LTIP
346.7
263.9
136.7
263.9
263.9
1,275.1
Table 138
The bonus includes the payments on account for the fiscal year 2013 and the addition to the bonus provision in 2013.
The Supervisory Board will decide on the final bonus for 2013 in fiscal year 2014.
LTIP is carried at fair value as at the time of offer.
The following total remuneration was paid to the members of the Executive Board in 2012:
Remuneration of the Executive Board 2012
in €´000
Remuneration paid out in cash
Total
Non-performance-related components
Fixed Salary
In kind
and other
415.0
75.0
300.0
320.0
225.0
22.3
10.3
37.5
40.1
30.2
Performance-
related compo-
nent without
long-term incen-
tive effect
Bonus
662.4
72.7
467.5
514.3
350.6
1,335.0
140.4
2,067.5
1,099.7
158.0
805.0
874.4
605.8
3,542.9
Table 139
Dr Stefan Schulte
Michael Müller from Oct. 1, 2012
Peter Schmitz
Dr Matthias Zieschang
Herbert Mai until Sept. 30, 2012
Total
Fraport Annual Report 2013
Group Notes / Other Disclosures
181
Remuneration of the Executive Board 2012
in €´000
Performance-related component with long-term incentive effect
Share-related remuneration
Dr Stefan Schulte
Michael Müller from Oct. 1, 2012
Peter Schmitz
Dr Matthias Zieschang
Herbert Mai until Sept. 30, 2012
Total
LTIP
291.8
201.8
222.1
222.1
0.0
937.8
Table 140
In accordance with IFRS 2, the stock option programs are recorded through profit and loss and lead to an expense
in the fiscal year from the period-appropriate distribution of the option value: In fiscal year 2013, only Michael Müller
owned 1,800 stock options from MSOP 2005, tranche 2009. These stock options were fully exercised by Michael Müller
in 2013, which resulted in an expense of € 12.6 thousand. In the previous year, the expense for the Executive Board
members amounted to € 42.2 thousand.
Provisions for pensions and similar obligations
Of the future pension obligations of € 32,105 thousand, €24,035 thousand relates to pension obligations owed to former
Executive Board members and their dependents. Current pension payments amounted to € 1,740 thousand in 2013.
Pension obligations to currently active Executive Board members were as follows:
Pension obligations to currently active members of the Executive Board
in €´000
Dr Stefan Schulte
Michael Müller
Peter Schmitz
Dr Matthias Zieschang
Anke Giesen from Jan. 1, 2013
Total
Other agreements
Obligation
Dec. 31, 2012
Change
2013
Obligation
Dec. 31, 2013
4,019
33
1,799
1,654
0
7,505
118
128
39
143
136
564
4,137
161
1,838
1,797
136
8,069
Table 141
Each member of the Executive Board has entered into an obligation to purchase shares in Fraport AG amounting to
at least half a year’s fixed gross salary (cumulative cost at the time of purchase) and hold them for the duration of the
respective contract of employment. Already existing holdings of Fraport AG shares are taken into account. The obli-
gation to purchase and hold shares is reduced pro rata if the employment contract has a term of less than five years.
If the Executive Board member is reappointed, the equivalent value of the shares an Executive Board member is obliged
to hold is increased to at least a full year’s gross salary.
Within the context of her additional expenses for maintaining two households, Anke Giesen was granted a monthly
gross allowance of € 2 thousand for twelve months after the start of the employment contract. Accordingly, she was
granted a total of € 24.0 thousand for 2013. In addition, relocation costs were covered by Fraport AG upon submission
of relevant invoices in a total amount of € 9.5 thousand.
Further InformationConsolidated Financial StatementsFraport Annual Report 2013
1 8 2
Group Notes / Other Disclosures
The employment contract of Herbert Mai provides for a two-year post-employment restrictive covenant following the
end of his employment on September 30, 2012. The compensation to be paid to Mr. Mai by Fraport AG as set out in
Section 90a of the HGB was € 150.0 thousand for 2013. Pursuant to the employment contract, the above-mentioned
compensation shall be credited against the retirement payments inasmuch as the compensation together with other
generated income received exceeds 100 % of the last fixed annual gross payment received. Furthermore, Mr. Mai received
pension benefit payments of € 135.0 thousand, a proportional bonus for the fiscal year 2012 of € 350.6 thousand and
a proportional payment of the LSA for the fiscal year 2010 of € 64.2 thousand.
The former Chairman of the Executive Board, Prof Dr Wilhelm Bender, continued to render consulting services to
Fraport AG even after his departure from the company. The consulting agreement, which ended in 2011, was extended
for another two years and ended on August 31, 2013. For this and other tasks, Fraport AG supplied Prof Dr Bender
with offices, office equipment and supplies and an assistant until August 31, 2013. Prof Dr Bender did not receive
any compensation from Fraport AG for his activities. Until August 31, 2011, travel expenses were reimbursed upon
authorization and approval of the trip according to the applicable company guidelines. After this time, travel expenses
were no longer reimbursed.
Prof Dr Bender also received pension payments of € 252.4 thousand. Prof Dr Bender has agreed that the post-employment
restrictive covenant, which applies for two years after the employment agreement ends, was extended for an additional
two years up to August 31, 2013. Prof Dr Bender waived the right to compensation as set out in Section 90a of the
HGB payable by Fraport AG from January 2011.
Other benefits
Executive Board members have as other benefits the option of private use of a company vehicle with a driver, private
use of a company cell phone, a D & O liability insurance with a deductible pursuant to Section 93 (2) sentence 3 of
the AktG, an accident insurance and a life-time entitlement to use the VIP service of Fraport AG, as well as access to a
parking spot at Frankfurt Airport. Fraport AG reimburses travel costs for company trips and other business expenses in
line with the regulations in general use at Fraport AG.
Disclosures pursuant to Section 15a of the WpHG
Pursuant to Section 15a of the WpHG, members of the Fraport Executive Board and Supervisory Board are required to
disclose transactions with shares of Fraport AG or any related financial instruments to the company and the German
Federal Financial Supervisory Authority (BaFin) within five business days. This also applies to persons who are closely
related to members of the Executive Board and Supervisory Board as defined in Section 15a (3) of the WpHG. These
transactions have been published by Fraport in accordance with the deadlines under Section 15a of the WpHG.
Remuneration of the Supervisory Board in fiscal year 2013
The remuneration of the Supervisory Board is laid down in Section 12 of the Statutes of Fraport AG. It is provided solely
as fixed remuneration. According to this, every member of the Supervisory Board shall receive a fixed compensation
of € 22.5 thousand for each full fiscal year payable at the end of the fiscal year, the Chairman and the Chairman of
the finance and audit committee shall receive twice that amount, the Vice Chairman and the Chairmen of the other
committees shall each receive one and a half times this amount. For their membership on a committee, Supervisory
Board members receive an additional, fixed compensation of € 5 thousand per committee for each full fiscal year. This
additional compensation is paid for a maximum of two committee memberships. Supervisory Board members that
become members of or leave the Supervisory Board during the current fiscal year receive pro rata compensation. The
same holds true in the case of any change in the membership of committees. Each Supervisory Board member receives
€ 800 for every Supervisory Board meeting he or she attends and every committee meeting attended of which he or
she is a member. Accrued expenses will also be reimbursed.
Fraport Annual Report 2013 Group Notes / Other Disclosures
183
All active members of the Supervisory Board received an aggregate compensation of € 889.5 thousand in 2013
(previous year: € 853.4 thousand).
The following remuneration was paid to the members of the Supervisory Board for fiscal year 2013:
Remuneration of the Supervisory Board 2013
in €
Supervisory Board Member
Fixed salary
Committee
remuneration
Attendance
fees
Ismail
Claudia
Devrim
Mario A.
Uwe
Hakan
Kathrin
Detlef
Peter
Dr Margarete
Jörg-Uwe
Erdal
Lothar
Dr Roland
Stefan H.
Michael
Mehmet
Arno
Gabriele
Dr h c Petra
Gerold
Hans-Jürgen
Werner
Edgar
Christian
Karlheinz
Aydin
Amier
Arslan
Bach
Becker
Cicek
Dahnke
Draths
Feldmann
Haase
Hahn
Kina
Klemm
Krieg
Lauer
Odenwald
Özdemir
Prangenberg
Rieken
Roth
Schaub
Schmidt
Schmidt
Stejskal
Strenger
Weimar
Prof Dr-Ing Katja
Windt
9,375.00
19,687.50
13,125.00
9,375.00
13,125.00
13,125.00
13,125.00
7,500.00
22,500.00
35,625.00
33,750.00
9,375.00
22,500.00
22,500.00
22,500.00
22,500.00
13,125.00
22,500.00
1,875.00
9,375.00
33,750.00
22,500.00
22,500.00
22,500.00
18,750.00
45,000.00
22,500.00
2,083.33
5,833.33
5,833.33
2,083.33
5,597.23
2,916.67
2,916.67
3,333.33
4,763.90
2,400.00
11,200.00
6,400.00
2,400.00
7,200.00
6,400.00
5,600.00
4,000.00
6,400.00
10,000.00
12,000.00
10,000.00
13,600.00
2,083.33
2,400,00
10,000.00
16,800.00
5,000.00
11,200.00
0.00
5,000.00
2,916.67
5,000.00
833.33
4,166.67
4,000.00
5,600.00
6,400.00
11,200.00
0.00
2,400.00
10,000.00
12,800.00
5,000.00
6,666.67
11,200.00
10,400.00
10,000.00
19,200.00
4,166.67
10,000.00
5,600.00
9,600.00
10,000.00
12,800.00
Total
13,858.33
36,720.83
25,358.33
13,858.33
25,922.23
22,441.67
21,641.67
14,833.33
33,663.90
57,625.00
57,350.00
13,858.33
49,300.00
38,700.00
26,500.00
33,100.00
22,441.67
38,700.00
2,708.33
15,941.67
56,550.00
38,700.00
39,566.67
51,700.00
28,516.67
64,600.00
45,300.00
Table 142
Compensation of the Economic Advisory Board in fiscal year 2013
For membership on the Economic Advisory Board, a compensation of € 2,500 is paid for every year of membership
and € 2,000 per meeting attended, with the Chairman receiving twice that amount. Travel expenses are reimbursed
independently.
In fiscal year 2013, aggregate compensation of the Economic Advisory Board amounted to € 90.5 thousand
(previous year: € 93.0 thousand).
Further InformationConsolidated Financial StatementsFraport Annual Report 2013
1 8 4
Group Notes / Other Disclosures
53
Executive Board
Mandates of the Executive Board
Members of the Executive Board
Chairman of the Executive Board
Dr Stefan Schulte
Executive Director Ground Handling
Anke Giesen
Executive Director Labor Relations
Michael Müller
Executive Director Operations
Peter Schmitz
Executive Director Controlling & Finance
Dr Matthias Zieschang
54
Supervisory Board
Mandates of the Supervisory Board
Members of the Supervisory Board
Chairman
Karlheinz Weimar
Former Finance Minister of the State of Hesse
Head of the Bundesanstalt
für Finanzmarktstabilisierung
(Compensation 2013: €64,600; 2012: €64,600)
Vice Chairman
Gerold Schaub
Regional Director Traffic ver.di Hessen
(Compensation 2013: €56,550; 2012: €54,950)
Claudia Amier
Chairperson of the Works Council
(from May 31, 2013)
(Compensation 2013: €36,720.83)
Memberships in mandatory Supervisory Boards and
comparable control bodies
Member of the Supervisory Board:
> Deutsche Post AG
Chairman of the Supervisory Board:
> APS Airport Personal Service GmbH (until March 19, 2013)
> FraSec Fraport Security Services GmbH
Member of the Shareholders’ Meeting:
> Airport Cater Service GmbH
> Medical Airport Service GmbH
> Terminal for Kids gGmbH (from May 6, 2013)
Chairman of the Supervisory Board:
> Flughafen Hannover-Langenhagen GmbH
Vice Chairman of the Supervisory Board:
> Shanghai Frankfurt Airport Consulting Services Co., Ltd.
Member of the Supervisory Board:
> Fraport IC Ictas Antalya Havalimani Terminal Yatirim
ve Isletmeciligi Anonim Sirketi
Member of the Shareholders’ Meeting:
> Flughafen Hannover-Langenhagen GmbH
Member of the Administrative Board:
> Frankfurter Sparkasse
Table 143
Memberships in mandatory Supervisory Boards and
comparable control bodies
Member of the Advisory Board:
> Höchster Porzellan-Manufaktur GmbH
Member of the University Council:
> University Frankfurt am Main
Vice Chairman of the Supervisory Board:
> LSG Lufthansa Service Holding AG
> APS Airport Personal Service GmbH
> LSG Sky Chefs Frankfurt ZD GmbH
Devrim Arslan
Chairman of the Works Council APS Airport Personal Service GmbH
(from May 31, 2013)
Member of the Supervisory Board:
> APS Airport Personal Service GmbH
(Compensation 2013: €25,358.33)
Ismail Aydin
Vice Chairman of the Works Council
(until May 31, 2013)
(Compensation 2013: €13,858.33; 2012: €35,500)
Fraport Annual Report 2013
Mandates of the Supervisory Board
Members of the Supervisory Board
Uwe Becker
City Treasurer of the City of Frankfurt am Main
(from May 31, 2013)
(Compensation 2013: €25,922.23)
Mario A. Bach
Team Leader of Group Idea Management Fraport AG
(until May 31, 2013)
(Compensation 2013: €13,858.33; 2012: €7,225)
Hakan Cicek
Member of the Works Council
(from May 31, 2013)
(Compensation 2013: €22,441.67)
Kathrin Dahnke
Member of the Executive Board
Wilh. Werhahn KG
(from May 31, 2013)
(Compensation 2013: €21,641.67)
Detlev Draths
Member of the Works Council relieved of duty
(from February 1, 2013 until May 31, 2013)
(Compensation 2013: €14,833.33)
Peter Feldmann
Lord Mayor of the City of Frankfurt am Main
(Compensation 2013: €33,663.90; 2012: €9,900)
Group Notes / Other Disclosures
185
Memberships in mandatory Supervisory Boards and
comparable control bodies
Membership in mandatory control bodies:
> Stadtwerke Verkehrsgesellschaft Frankfurt am Main mbH (Chairman)
> ABG FRANKFURT HOLDING Wohnungsbau-
und Beteiligungsgesellschaft mbH
> Frankfurter Aufbau-Aktiengesellschaft
> Mainova AG (Chairman)
> Messe Frankfurt GmbH
> Stadtwerke Frankfurt am Main Holding GmbH
> Süwag Energie AG
Membership in comparable control bodies:
> AVA Abfallverbrennungsanlage Nordweststadt Gesellschaft
mit beschränkter Haftung
> Hafenbetriebe der Stadt Frankfurt am Main
> Kommunale Kinder-, Jugend- und Familienhilfe Frankfurt am Main
> Marktbetriebe der Stadt Frankfurt am Main
> Stadtentwässerung Frankfurt am Main
> Kita Frankfurt
> Städtische Kliniken Frankfurt am Main-Höchst
> Volkshochschule Frankfurt am Main
> Dom Römer GmbH
> Erdgas Westthüringen Beteiligungsgesellschaft mbH
> Gas-Union GmbH (Chairman)
> Gateway Gardens Projektentwicklungs-GmbH
> Gemeinnützige Kulturfonds Frankfurt RheinMain GmbH
> Nassauische Sparkasse
> Klinikum Frankfurt Höchst GmbH
> Sparkassenzweckverband Nassau
> Sportpark Stadion Frankfurt am Main Gesellschaft
für Projektentwicklungen mbH
> Tourismus- und Congress GmbH Frankfurt am Main
> Wirtschaftsförderung Frankfurt – Frankfurt Economic
Development – GmbH
> Zentrale Errichtungsgesellschaft mit beschränkter Haftung
Member of the Works Commission:
> Kommunale Wohnungsgesellschaft Ginsheim-Gustavsburg
Member of the Supervisory Board:
> Younicos AG
Chairman of the Supervisory Board:
> ABG FRANKFURT HOLDING Wohnungsbau-
und Beteiligungsgesellschaft mbH
> Messe Frankfurt GmbH
> Stadtwerke Frankfurt am Main Holding GmbH
Membership in Supervisory Boards and comparable control bodies
of business enterprises:
> Alte Oper Frankfurt Konzert- und Kongresszentrum GmbH
> FrankfurtRheinMain GmbH International Marketing of the Region
> Gas Union GmbH (from November 6, 2013)
> Nassauische Heimstätte Wohnungsbau-
und Entwicklungsgesellschaft mbH
> Rhein-Main-Verkehrsverbund GmbH (from April 30, 2013)
> Schirn Kunsthalle Frankfurt am Main GmbH
> Tourismus- und Congress GmbH Frankfurt am Main
(from November 1, 2013)
> Wirtschaftsförderung Frankfurt –
Frankfurt Economic Development – GmbH
> Landesbank Hessen Thüringen (Helaba) (from March 13, 2013)
Member of the Executive Board:
> Sparkassenzweckverband Nassau
Member of the Advisory Board:
> Thüga AG
Table 144
Further InformationConsolidated Financial StatementsFraport Annual Report 2013
1 8 6
Group Notes / Other Disclosures
Mandates of the Supervisory Board
Members of the Supervisory Board
Karl Ulrich Garnadt
Chairman of the Executive Board Lufthansa Cargo AG
(from February 13, 2014)
Dr Margarete Haase
Member of the Executive Board DEUTZ AG
(Compensation 2013: €57,625; 2012: €42,698.91)
Memberships in mandatory Supervisory Boards and
comparable control bodies
Vice Chairman of the Supervisory Board:
> Österreichische Luftverkehrs-Holding GmbH
Member of the Supervisory Board:
> Austrian Airlines AG
Membership in comparable control bodies within the meaning
of Section 125 of the AktG:
> DEUTZ (Dalian) Engine Co. Ltd.
> Deutz Engines (Shandong) Co. Ltd. (Chairperson)
> Deutz Engines (China) Ltd. Co. (Chairperson)
(from November 21, 2013)
Member of the Supervisory Board:
> ElringKlinger AG
> ZF Friedrichshafen AG
Jörg-Uwe Hahn
Former Hessian Minister of Justice, for Integration and Europe
Vice Chairman of the Supervisory Board:
> ALEA Hoch- und Industriebau AG
(Compensation 2013: €57,350; 2012: €54,150)
Erdal Kina
Member of the Works Council
(until May 31, 2013)
(Compensation 2013: €13,858.33; 2012: 35,500)
Lothar Klemm
Former Hessian State Minister
(Compensation 2013: €49,300; 2012: €49,300)
Dr Roland Krieg
Head of the service unit Information and Telecommunications
(Compensation 2013: €38,700; 2012: €15,758.35)
Member of the Supervisory Board:
> HA Hessen Agentur GmbH
> hr-Senderservice GmbH
> WV Energie AG
Member of the Advisory Board:
> ÖD-Beirat DBV-Winterthur
Chairman of the Supervisory Board:
> Dietz AG
> Variolog AG
Member of the Supervisory Board:
> IQB Career Services AG
Chairman of the Supervisory Board:
> AirIT Services AG
> operational services GmbH & Co. KG
Stefan H. Lauer
(until December 31, 2013)
(Compensation 2013: €26,500; 2012: €25,700)
Member of the Supervisory Board:
> FraSec Fraport Security Services GmbH (from September 1, 2013)
Member of the Shareholders’ Meeting:
> AirITSystems GmbH
> operational services GmbH & Co. KG
Chairman of the Board (BoD):
> Air-Transport IT Services, Inc. (USA) (until August 31, 2013)
Chairman of the Supervisory Board:
> Austrian Airlines AG (until June 27, 2013)
> Lufthansa Flight Training GmbH (until June 30, 2013)
Member of the Supervisory Board:
> LSG Lufthansa Service Holding AG (until June 30, 2013)
> Lufthansa Cargo AG
> Pensions-Sicherungs-Verein VVaG (until June 30, 2013)
> ESMT European School of Management and Technology GmbH
(until May 28, 2013)
Member of the Administrative Board:
> Landesbank Hessen-Thüringen Girozentrale
Vice Chairman of the Administrative Board:
> Swiss International Air Lines AG (until September 30, 2013)
Member of the Board of Directors:
> Aircraft Maintenance and Engineering Corp. (Vice Chairman)
> SN Airholding SA/NV (until July 1, 2013)
> Günes Ekspres Havacilik A.S. (Sun Express) (Vice Chairman)
Michael Odenwald
State Secretary of the German Federal Ministry for Transport
and Digital Infrastructure
(Compensation 2013: €33,100; 2012: €2,312.10)
Chairman of the Supervisory Board:
> DFS Deutsche Flugsicherung GmbH
Member of the Supervisory Board:
> Deutsche Bahn AG
> DB Mobility Logistics AG
Fraport Annual Report 2013 Group Notes / Other Disclosures
187
Mandates of the Supervisory Board
Members of the Supervisory Board
Mehmet Özdemir
Member of the Works Council
(from May 31, 2013)
(Compensation 2013: €22,441.67)
Arno Prangenberg
Auditor, Tax Consultant
(Compensation 2013: €38,700; 2012: €37,900)
Gabriele Rieken
Member of the Works Council
(until January 31, 2013)
(Compensation 2013: €2,708.33; 2012: €43,700)
Dr h c Petra Roth
Former Lord Mayor of the City of Frankfurt am Main
(until May 31, 2013)
(Compensation 2013: €15,941.67; 2012: €42,900)
Memberships in mandatory Supervisory Boards and
comparable control bodies
Chairperson of the Supervisory Board:
> Mainova AG (Group mandate) (until May 30, 2013)
Member of the Supervisory Board:
> Thüga Holding GmbH & Co. KGaA
> AXA Konzern AG, Köln
Membership in comparable control bodies
of business enterprises:
> Gas-Union GmbH
> Grontmij A & T GmbH
> Eurex Zürich AG (from February 5, 2013)
Member of the Advisory Board:
> Deutsche Vermögensberatung AG
> Thüga AG
Hans-Jürgen Schmidt
1. State Vice Chairman komba gewerkschaft Hessen
Chairman komba gewerkschaft Kreisverband Flughafen Frankfurt/Main
(Compensation 2013: €38,700; 2012: €37,900)
Werner Schmidt
Member of the Works Council
(Compensation 2013: €39,566.67; 2012: €35,500)
Chairman of the Executive Board:
> Arbeitsgemeinschaft unabhängiger Flughafenbeschäftigter (AUF e. V.)
Vice Chairman of the Executive Board:
> komba gewerkschaft, Kreisverband Flughafen Frankfurt/Main
Edgar Stejskal
Chairman of the Group Works Council
(Compensation 2013: €51,700; 2012: €48,500)
Christian Strenger
(until May 31, 2013)
(Compensation 2013: €28,516.67; 2012: €67,800)
Prof Dr-Ing Katja Windt
Professor of Global Production Logistics
Jacobs University Bremen gGmbH
(Compensation 2013: €45,300; 2012: €17,837.02)
Member of the Supervisory Board:
> FraSec Fraport Security Services GmbH
Member of the Supervisory Board:
> Airmail Center Frankfurt GmbH
Chairman of the Supervisory Board:
> The Germany Funds (USA)
Member of the Supervisory Board:
> DWS Investment GmbH
> Evonik Industries AG (until March 11, 2013)
> TUI AG
Member of the Executive Board:
> Bundesvereinigung Logistik (BVL) e. V.
Member of the Supervisory Board:
> Deutsche Post AG
Member of the Advisory Board:
> BLG LOGISTICS GROUP AG & Co. KG
Member of the Scientific Board:
> Bundesvereinigung Logistik (BVL) e. V.
Table 144
Further InformationConsolidated Financial StatementsFraport Annual Report 2013
1 8 8
Group Notes / Other Disclosures
55
Disclosure of shareholding according to Section 313 (2) of the HGB
Subsidiaries
Name and registered office
Shareholding
in %
Equity
(according
to IFRS)
in €’000
Result
(according
to IFRS)
in €’000
Afriport S.A., Luxemburg/Luxemburg
AirlT Services AG, Lautzenhausen
Airport Assekuranz Vermittlungs-GmbH,
Frankfurt am Main
Airport Cater Service GmbH, Frankfurt am Main
Air-Transport IT Services, Inc., Orlando/USA
Antalya Havalimani Uluslararasi Terminal Isletmeciligi
Anonim Sirketi, Istanbul/Turkey
APS Airport Personal Service GmbH, Frankfurt am Main
Daport S.A., Dakar/Senegal
Energy Air GmbH, Frankfurt am Main
Flughafen Frankfurt Main (Greece) Monoprosopi EPE,
Athens/Greece
FraCareServices GmbH, Frankfurt am Main
Fraport Asia Ltd., Hong Kong/China
Fraport Cargo Services GmbH, Frankfurt am Main
Fraport Casa GmbH, Neu-Isenburg
Fraport Casa Commercial GmbH, Neu-Isenburg
Fraport Immobilienservice und
-entwicklungs GmbH & Co. KG, Flörsheim am Main
Fraport Malta Business Services Ltd., St. Julians/Malta
Fraport Malta Ltd., St. Julians/Malta
Fraport Objekte 162 163 GmbH, Flörsheim am Main
Fraport (Philippines) Services, Inc., Manila/Philippines
Fraport Peru S.A.C., Lima/Peru
FPS Frankfurt Passenger Services GmbH,
Frankfurt am Main
2013
2012
2013
2012
2013
2012
2013
2012
2013
2012
2013
2012
2013
2012
2013
2012
2013
2012
2013
2012
2013
2012
2013
2012
2013
2012
2013
2012
2013
2012
2013
2012
2013
2012
2013
2012
2013
2012
2013
2012
2013
2012
2013
2012
100
3.24
100
100
100
100
100
100
100
100
100
100
100
100
100
3.24
100
100
100
100
51
51
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
99.99
99.99
99.99
99.99
51
51
1,436
1,476
2,233
2,019
144,015
135,703
26
26
5,873
5,673
40,478
47,028
1,401
1,276
591
1,010
2,060
3,485
54
66
1,262
1,343
87,503
89,017
17,265
31,753
40,531
20,824
1,251
28
11,535
11,863
100,757
77,243
103,569
80,450
25
24
– 3,180
– 3,494
368
424
657
443
– 40
– 39
355
326
8,301
8,461
0
0
438
744
3,339
– 226
851
726
– 103 1)
– 265 1)
1,961
3,387
– 11 1)
– 12 1)
119
116
1,696
4,394
– 3,542
3,963
300
– 155
– 1 11)
0
4,030 2) 3)
5,718 2) 3)
1,875
1,745
3,080
3,489
1
1
0 1)
0 1)
212
165
307
210
Fraport Annual Report 2013
Group Notes / Other Disclosures
189
Subsidiaries
Name and registered office
Fraport Objekt Mönchhof GmbH, Flörsheim am Main
Fraport Real Estate Mönchhof GmbH & Co. KG,
Flörsheim am Main
Fraport Real Estate Verwaltungs GmbH,
Flörsheim am Main
Fraport Real Estate 162 163 GmbH & Co. KG,
Flörsheim am Main
Fraport Saudi Arabia for Airport Management and De-
velopment Services Company Ltd., Riyadh/Saudi Arabia
FraSec Fraport Security Services GmbH,
Frankfurt am Main
FRA - Verkehrszentrale GmbH, Neu-Isenburg
FRA - Vorfeldaufsicht GmbH, Neu-Isenburg
FRA - Vorfeldkontrolle GmbH, Neu-Isenburg
Fraport Twin Star Airport Management AD,
Varna/Bulgaria
FSG Flughafen-Service GmbH, Frankfurt am Main
GCS Gesellschaft für Cleaning Service mbH & Co.
Airport Frankfurt/Main KG, Frankfurt am Main
International Aviation Security (UK) Ltd.,
London/Great Britain
International Aviation Security, Lda., Lisbon/Portugal
Lima Airport Partners S.R.L., Lima/Peru
Media Frankfurt GmbH, Frankfurt am Main
VCS Verwaltungsgesellschaft für Cleaning Service mbH,
Frankfurt am Main
Shareholding
in %
Equity
(according
to IFRS)
in €’000
Result
(according
to IFRS)
in €’000
2013
2012
2013
2012
2013
2012
2013
2012
2013
2012
2013
2012
2013
2012
2013
2012
2013
2012
2013
2012
2013
2012
2013
2012
2013
2012
2013
2012
2013
2012
2013
2012
2013
2012
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
60
60
33.33
33.33
40
40
100
100
100
100
70.01
70.01
51
51
100
100
25
24
4,389
4,698
29
27
5,094
4,903
9,059
8,419
6,718
6,584
28
28
89
42
350
13
68,278
54,623
148
155
3,597
3,231
0
0
0
0
46,131
32,277
7,249
6,603
39
38
1
1
2,116 2) 3)
4,115 2) 3)
2
2
2,020 2) 3)
1,715 2) 3)
4,775
4,148
133
1,203
0 1)
0 1)
47
15
97
– 15
13,668
12,424
73
80
2,469 3)
2,083 3)
0 1)
0 1)
0 1)
0 1)
26,378
24,523
2,195
1,544
1
0
Table 145
Further InformationConsolidated Financial StatementsFraport Annual Report 2013
1 9 0
Group Notes / Other Disclosures
Joint ventures
Name and registered office
AirITSystems GmbH, Hanover
Fraport IC Ictas Havalimani Isletme Anonim Sirketi,
Antalya/Turkey
Fraport IC Ictas Antalya Havalimani Terminal Yatirim ve
Isletmeciligi Anonim Sirketi, Antalya/Turkey
Fraport IC Ictas Havalimani Yer Hizmetleri Anonim
Sirketi, Antalya/Turkey
Gateway Gardens Projektentwicklungs-GmbH,
Frankfurt am Main
Grundstücksgesellschaft Gateway Gardens GmbH,
Frankfurt am Main
Medical Airport Service GmbH, Kelsterbach
Multi Park II Mönchhof GmbH, Walldorf (Baden)
N*ICE Aircraft Services & Support GmbH,
Frankfurt am Main
Pantares Tradeport Asia Ltd., Hong Kong/China
Shanghai Frankfurt Airport Consulting Services Co.,
Ltd., Shanghai/China
Terminal for Kids gGmbH, Frankfurt am Main
Associated companies
Name and registered office
Airmail Center Frankfurt GmbH, Frankfurt am Main
ASG Airport Service Gesellschaft mbH,
Frankfurt am Main
Flughafen Hannover-Langenhagen GmbH, Hanover
Xi’an Xianyang International Airport Co., Ltd.,
Xianyang City/China
Thalita Trading Ltd., Lakatamia/Cyprus;
Northern Capital Gateway LLC, St. Petersburg/Russia
Tradeport Hong Kong Ltd., Hong Kong/China
Shareholding
in %
Equity
(according
to IFRS)
in €’000
Result
(according
to IFRS)
in €’000
50
50
50
50
50
50
50
50
16.66
16.66
33.33
33.33
50
50
50
50
52
52
50
50
50
50
50
50
2,995
3,214
78,998
23,050
– 51,699
– 74,400
231
275
262
211
4,119
3,312
6,090
5,381
80
761
19,937
17,031
6,438
5,713
310
299
1,951
1,460
794
999
55,627
– 39
66,338
54,436
– 40 1)
– 89 1)
51
– 19
801
– 256
1,169
1,054
599
– 34
4,311
1,404
962
964
15
13
491
322
Table 146
Shareholding
in %
Equity
(according
to IFRS)
in €’000
Result
(according
to IFRS)
in €’000
40
40
49
49
30
30
24.5
24.5
35.5
35.5
18.75
18.75
4,535
4,274
1,573
1,946
133,306
136,166
425,437
427,634
– 2,912
39,391
– 9,725
– 12,781
1,402
1,683
700
1,073
– 2,084
– 1,344
10,273
11,417
– 47,893
22,293
2,592 10)
2,606 10)
Table 147
2013
2012
2013
2012
2013
2012
2013
2012
2013
2012
2013
2012
2013
2012
2013
2012
2013
2012
2013
2012
2013
2012
2013
2012
2013
2012
2013
2012
2013
2012
2013
2012
2013
2012
2013
2012
Fraport Annual Report 2013
Group Notes / Other Disclosures
191
Shareholding
in %
Equity
(according to
local regulation)
in €’000
Result
(according to
local regulation)
in €’000
2013
2012
2013
2012
2013
2012
2013
2007
2013
2007
2013
2007
2013
2007
2013
2012
2013
2012
2013
2012
2013
2012
2013
2005
2013
2005
2013
2005
2013
2005
2013
2012
35
35
10
10
13.51
13.51
20
20
20
20
20
20
20
20
50
50
0
0
10
10
4
4
40
40
40
40
40
40
30
30
2.2
2.4
–
–
153,498
144,130
2
2
–
– 575
–
– 1,282
–
871
–
1,642
12,941
9,364
–
1,510
–
1,186
–
1,341
–
– 1,590
–
– 2,937
–
4,533
–
98,747
–
– 1) 4) 5)
– 1) 4) 5)
1,037 6)
– 156,948 6)
– 1)
– 1)
– 1) 7)
– 786 1) 4) 5)
– 1) 5) 7)
– 2,604 1) 4) 5)
– 1) 5) 7)
270 1) 4) 5)
– 1) 5) 7)
– 762 1) 4) 5)
3,577 8)
2,668 8)
– 4) 9)
1,382
– 4)
214 4)
– 4)
456 4)
– 1) 4) 5)
833
– 1) 4) 5)
1,390
– 1) 4) 5)
9
– 1) 4) 5)
4,761
– 3) 4)
– 565,131
– 67,812 3)
Table 148
Other investments
Name and registered office
Compañía de Economia Mixta de Valor y Seguridad
CIVAS EQUADOR, Quito/Ecuador
Delhi International Airport Private Ltd., New Delhi/India
Gateways for India Airports Private Ltd.,
Bangalore/India
Ineuropa Handling Alicante, U.T.E., Madrid/Spain
Ineuropa Handling Madrid, U.T.E., Madrid/Spain
Ineuropa Handling Mallorca, U.T.E., Madrid/Spain
Ineuropa Handling Teneriffa, U.T.E., Madrid/Spain
operational services GmbH & Co. KG,
Frankfurt am Main
Perishable-Center Frankfurt GbR, Frankfurt am Main
Perishable-Center Verwaltungs-GmbH Zentrum
für verderbliche Güter Frankfurt, Frankfurt am Main
Perishable-Center Verwaltungs-GmbH Zentrum für
verderbliche Güter Frankfurt GmbH & Co. Betriebs-KG,
Frankfurt am Main
Philippine Airport and Ground Services Terminals
Holdings, Inc., Pasay City/Philippines (PTH)
Philippine Airport and Ground Services Terminals, Inc.,
Manila/Philippines (PTI)
Philippine Airport and Ground Services, Inc.,
Manila/Philippines (PAGS)
Philippine International Air Terminals Co., Inc.,
Pasay City/Philippines (PIATCO)
THE SQUAIRE GmbH & Co. KG, Frankfurt am Main
1) Company inactive or in liquidation.
2) IFRS result before consolidation.
3) In the equity of commercial partnerships, capital shares as well as shares in profit and loss
of the limited partners are recognized (according to IAS 32, these represent debt).
4) Current financial statements not yet available.
5) There is no influence on financial and business policies.
6) Fiscal year of the company ends on March 31.
7) Equity has been largely or wholly repaid.
8) A control and profit transfer agreement is in place between the company and the other shareholders;
Fraport has no influence on financial and business policies.
9) Company without cash contributions.
10) Pantares Tradeport Asia Ltd. holds in total 37.5 % of capital shares of Tradeport Hong Kong Ltd.
11) Former FRA - Positionsaufsicht GmbH.
Frankfurt am Main, March 4, 2014
Fraport AG
Frankfurt Airport Services Worldwide
The Executive Board
Dr Schulte
Giesen
Müller
Schmitz
Dr Zieschang
Further InformationConsolidated Financial StatementsFraport Annual Report 2013
1 9 2
Fraport Annual Report 2013
Further Information
Fraport Annual Report 2013
Further Information
193
External Activities & Services
More than 1,300,000 square meters...
570,000 passengers started their vacation on just one weekend at the beginning of the 2013 summer vacation.
Added to this are those collecting passengers, employees and visitors to the airport. As the owner, Fraport operates
Frankfurt Airport around the clock, 365 days a year. A good indoor climate is essential for ensuring that the passen-
gers’ stay at the airport is of the highest quality. Spread out over a gross surface area of more than 1,300,000 square
meters – an area bigger than the Frankfurt city center – some 3,000 fans provide a pleasant air quality. To achieve
this, the air-conditioning systems circulate around 5,400,000 cubic meters of air every hour.
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Fraport Annual Report 2013
Further Information
...with fresh air
To operate the air-conditioning system Fraport requires a softer water hardness level than regular mains water. For
this reason, Fraport filters about 25,000 liters an hour into a special water-softening osmosis plant. The absence
of this processing would result in the air-conditioning system becoming blocked and the average temperature in
the terminals would rise. After about three days, the pollution of the air-conditioning technology would be so far
advanced that the system would fail and individual sections of the terminals would have to be shut down. Regular
maintenance and testing of the osmosis plant are therefore essential for Fraport.
Fraport Annual Report 2013
Further Information
193
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Further Information / Responsibility Statement
Responsibility Statement
To the best of our knowledge and in accordance with the applicable accounting principles, the consolidated financial
statements give a true and fair view of the assets, financial and earnings position and profit or loss of the Group.
Furthermore, the management report of the Group includes a fair review of the development and performance of the
business and the position of the Group, together with a description of the principal opportunities and risks associated
with the expected development of the Group.
Frankfurt am Main, March 4, 2014
Fraport AG
Frankfurt Airport Services Worldwide
The Executive Board
Dr Schulte
Giesen
Müller
Schmitz
Dr Zieschang
Fraport Annual Report 2013 Further Information / Auditor’s Report
195
Auditor’s Report
We have audited the consolidated financial statements prepared by the Fraport AG Frankfurt Airport Services World-
wide, Frankfurt / Main, comprising the consolidated income statement, the consolidated statement of comprehensive
income, the consolidated statement of financial position, the consolidated statement of cash flows, the consolidated
statement of changes in equity, and the group notes, together with the group management report for the business
year from January 1 to December 31, 2013. The preparation of the consolidated financial statements and the group
management report in accordance with IFRSs, as adopted by the EU, and the additional requirements of German
commercial law pursuant to Section 315a (1) of the HGB [Handelsgesetzbuch “German Commercial Code”] are the
responsibility of the parent company’s Executive Board. Our responsibility is to express an opinion on the consolidated
financial statements and on the group management report based on our audit.
We conducted our audit of the consolidated financial statements in accordance with Section 317 of the HGB and
German generally accepted standards for the audit of financial statements promulgated by the IDW [Institut der
Wirtschaftsprüfer “Institute of Public Auditors in Germany”]. Those standards require that we plan and perform the
audit such that misstatements materially affecting the presentation of the net assets, financial position and results of
operations in the consolidated financial statements in accordance with the applicable financial reporting framework and
in the group management report are detected with reasonable assurance. Knowledge of the business activities and the
economic and legal environment of the Group and expectations as to possible misstatements are taken into account
in the determination of audit procedures. The effectiveness of the accounting-related internal control system and the
evidence supporting the disclosures in the consolidated financial statements and the group management report are
examined primarily on a test basis within the framework of the audit. The audit includes assessing the annual financial
statements of those entities included in consolidation, the determination of entities to be included in consolidation,
the accounting and consolidation principles used and significant estimates made by the Executive Board, as well as
evaluating the overall presentation of the consolidated financial statements and group management report. We believe
that our audit provides a reasonable basis for our opinion.
Our audit has not led to any reservations.
In our opinion, based on the findings of our audit, the consolidated financial statements comply with IFRSs, as adopted
by the EU, the additional requirements of German commercial law pursuant to Section 315a (1) of the HGB and give a
true and fair view of the net assets, financial position and results of operations of the Group in accordance with these
requirements. The group management report is consistent with the consolidated financial statements and as a whole
provides a suitable view of the Group’s position and suitably presents the opportunities and risks of future development.
Frankfurt am Main, March 4, 2014
PricewaterhouseCoopers
Aktiengesellschaft
Wirtschaftsprüfungsgesellschaft
Klaus-Dieter Ruske
Klaus Jäcker
German Public Auditor
German Public Auditor
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Further InformationFraport Annual Report 2013
1 9 6
Further Information / Seven-Year-Overview
Seven-Year-Overview 1)
Consolidated income statement
€ million
Revenue
Change in work-in-process
Other internal work capitalized
Other operating income
Total revenue
Cost of materials
Personnel expenses
Other operating expenses
EBITDA
Depreciation and amortization
Operating result/EBIT
Interest result
Result from associated companies
Income from investments
Write-down on financial assets
Other financial result
Financial result
Result from ordinary operations/EBT
Taxes on income
Group result
thereof profit attributable to non-controlling interests
thereof profit attributable to shareholders of Fraport AG
Earnings per €10 share in € (basic)
Earnings per €10 share in € (diluted)
2013
2012
2011
2010
2009
2008
2007
2,561.4
2,442.0
2,371.2
2,194.6
2,010.3
2,101.6
2,329.0
0.6
35.1
34.3
0.5
44.0
55.8
0.4
40.3
40.9
0.4
36.9
52.1
0.9
39.1
45.3
0.4
33.8
66.1
0.5
24.6
71.7
2,631.4
2,542.3
2,452.8
2,284.0
2,095.6
2,201.9
2,425.8
– 613.0
– 946.8
– 191.4
880.2
– 352.1
528.1
– 177.0
– 13.6
0.0
0.0
3.2
– 187.4
340.7
– 105.0
235.7
14.7
221.0
2.40
2.39
– 558.1
– 942.9
– 192.6
848.7
– 352.7
496.0
– 174.1
11.7
0.0
0.0
30.5
– 131.9
364.1
– 112.6
251.5
13.3
238.2
2.59
2.58
– 541.1
– 906.3
– 203.1
802.3
– 305.7
496.6
– 144.4
11.5
0.0
0.0
– 16.4
– 149.3
347.3
– 96.5
250.8
10.4
240.4
2.62
2.60
– 491.1
– 880.4
– 201.9
710.6
– 279.7
430.9
– 137.7
7.0
0.0
0.0
– 21.5
– 152.2
278.7
– 7.2
271.5
8.6
262.9
2.86
2.85
– 471.6
– 866.9
– 187.4
569.7
– 268.8
300.9
– 99.7
4.3
0.1
– 7.2
– 3.9
– 106.4
194.5
– 42.5
152.0
5.6
146.4
1.60
1.59
– 471.1
– 461.4
– 925.6
– 1,143.3
– 204.5
600.7
– 241.5
359.2
– 71.0
– 15.1
0.1
0.0
24.2
– 61.8
297.4
– 100.5
196.9
7.2
189.7
2.07
2.05
– 240.6
580.5
– 245.2
335.3
– 25.3
2.5
5.3
0.0
0.9
– 16.6
318.7
– 90.5
228.2
5.0
223.2
2.44
2.42
Key figures
2013
2012
2011
2010
2009
2008
2007
EBITDA margin in %
EBIT margin in %
Return on revenue in %
Fraport assets in € million
ROFRA in %
Year-end closing price of the Fraport share in €
Dividend per share in €
Financial position key figures
Profit earmarked for distribution in € million
Net financial debt in € million
Capital employed in € million
Gearing ratio in %
Debt-to-equity ratio in %
Dynamic debt ratio in %
Working capital in € million
34.4
20.6
13.3
34.8
20.3
14.9
33.8
20.9
14.6
32.4
19.6
12.7
28.3
15.0
9.7
28.6
17.1
14.2
24.9
14.4
13.7
5,545.3
5,152.3
4,447.3
4,019.7
3,820.2
3,419.1
3,075.0
9.5
54.39
1.25 2)
9.6
43.94
1.25
11.2
38.00
1.25
10.7
47.16
1.25
7.9
36.28
1.15
10.5
30.91
1.15
10.9
53.87
1.15
Balance at
Dec. 31,
2013
Balance at
Dec. 31,
2012
Balance at
Dec. 31,
2011
Balance at
Dec. 31,
2010
Balance at
Dec. 31,
2009
Balance at
Dec. 31,
2008
Balance at
Dec. 31,
2007
115.4
2,975.4
5,913.1
101.3
31.2
517.6
910.9
115.5
2,934.5
5,731.5
104.9
30.4
530.7
1,057.8
115.4
2,647.0
5,362.1
97.5
28.7
427.8
977.6
115.6
2,024.4
4,626.9
77.8
22.1
356.7
106.2
1,614.5
4,043.5
66.5
18.2
378.5
1,878.4
2,030.0
105.6
925.6
105.3
338.0
3,328.0
2,734.5
38.5
14.1
187.9
919.7
14.1
5.9
67.6
218.0
1) Due to new accounting policies or shifts in Group definitions figures reported in previous years may differ.
2) Proposed dividend.
Fraport Annual Report 2013
Consolidated statement of financial position
€ million
Goodwill
Investments in airport operating projects
1,006.1
1,031.2
1,067.1
1,073.4
1,098.4
38.6
38.6
38.6
38.6
40.0
Further Information / Seven-Year-Overview
197
Balance at
Dec. 31,
2013
Balance at
Dec. 31,
2012
Balance at
Dec. 31,
2011
Balance at
Dec. 31,
2010
Balance at
Dec. 31,
2009
Balance at
Dec. 31,
2008
Balance at
Dec. 31,
2007
22.7
597.6
33.3
22.7
570.3
43.9
57.8
44.2
43.6
32.4
34.0
5,988.1
5,927.3
5,643.8
5,013.3
4,486.4
3,968.6
3,628.6
47.7
121.2
727.6
169.8
20.3
43.7
34.4
136.6
742.7
117.1
19.5
49.2
74.6
138.0
648.6
33.5
29.6
48.2
34.0
97.1
394.6
20.9
29.6
43.1
34.7
72.9
474.7
20.0
23.6
68.3
9.0
72.4
205.4
42.4
26.6
30.4
10.1
37.1
252.2
58.5
33.5
7.2
8,220.9
8,140.8
7,765.6
6,777.0
6,353.0
5,008.4
4,664.1
75.3
181.6
438.4
2.1
605.1
77.7
180.0
385.2
35.0
821.9
81.4
163.9
280.2
6.2
77.9
178.3
319.2
5.5
54.0
158.4
492.2
5.3
47.4
154.9
205.1
7.8
927.1
1,812.6
1,802.3
1,154.8
–
–
–
–
–
–
39.5
154.6
76.6
13.2
651.3
165.6
1,302.5
1,499.8
1,458.8
2,393.5
2,512.2
1,570.0
1,100.8
922.1
590.2
1,540.8
3,053.1
45.7
3,098.8
4,146.8
50.8
889.4
120.4
26.7
54.1
235.1
921.3
588.0
1,403.2
2,912.5
35.7
2,948.2
4,401.0
64.4
918.8
584.7
1,327.0
2,830.5
29.4
2,859.9
4,034.0
64.9
1,006.4
1,001.0
102.5
27.4
80.2
211.2
110.8
22.9
68.1
201.8
918.4
582.0
1,217.7
2,718.1
21.2
2,739.3
4,256.6
60.0
949.2
105.5
22.1
68.0
147.0
917.7
578.3
1,039.2
2,535.2
22.6
2,557.8
4,126.9
114.7
904.7
143.9
20.3
135.0
129.9
916.1
573.1
1,018.8
2,508.0
60.2
2,568.2
1,685.3
192.9
514.8
123.5
19.0
170.0
101.0
914.6
565.2
1,022.0
2,501.8
33.0
2,534.8
830.6
365.6
451.7
108.3
19.4
163.0
136.2
5,523.3
5,893.1
5,503.5
5,608.4
5,575.4
2,806.5
2,074.8
314.9
162.4
178.4
8.1
237.5
196.6
214.4
163.2
5.3
219.8
219.9
228.9
187.4
2.4
222.4
151.8
274.6
180.5
12.9
203.0
118.9
219.8
147.7
6.7
238.9
555.5
393.8
63.6
1.9
188.9
367.8
441.5
75.7
14.2
185.3
70.8
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a
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r
o
f
n
I
r
e
h
t
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u
F
Other intangible assets
Property, plant and equipment
Investment property
Investments in associated companies
Other financial assets
Other receivables and financial assets
Income tax receivables
Deferred tax assets
Non-current assets
Inventories
Trade accounts receivable
Other receivables and financial assets
Income tax receivables
Cash and cash equivalents
Non-current assets held for sale
Current assets
Issued capital
Capital reserve
Revenue reserves
Equity attributable to shareholders of Fraport AG
Non-controlling interests
Shareholders’ equity
Financial liabilities
Trade accounts payable
Other liabilities
Deferred tax liabilities
Provisions for pensions and similar obligations
Provisions for income taxes
Other provisions
Non-current liabilities
Financial liabilities
Trade accounts payable
Other liabilities
Provisions for income taxes
Other provisions
Liabilities in the context of assets held for sale
–
–
–
–
–
–
Current liabilities
Total assets
Change over the previous year in %
Non-current assets
Shareholders‘ equity (less non-controlling interests
and profit earmarked for distribution)
Share of total assets in %
Non-current assets
Shareholders’ equity ratio
901.3
799.3
861.0
822.8
732.0
9,523.4
9,640.6
9,224.4
9,170.5
8,865.2
1,203.7
6,578.4
1,155.3
5,764.9
Balance at
Dec. 31,
2013
Balance at
Dec. 31,
2012
Balance at
Dec. 31,
2011
Balance at
Dec. 31,
2010
Balance at
Dec. 31,
2009
Balance at
Dec. 31,
2008
Balance at
Dec. 31,
2007
1.0
5.0
86.3
30.8
4.8
3.0
84.4
29.0
14.6
4.3
84.2
29.4
6.7
7.1
73.9
28.4
26.8
1.1
71.7
27.4
7.4
0.2
76.1
36.5
36.4
6.7
80.9
41.6
Table 149
Further InformationFraport Annual Report 2013
1 9 8
Further Information / List of Graphics and Tables
List of Graphics and Tables
List of Graphics
Group Management Report
Page
Graphic
24
25
25
27
28
28
29
46
48
49
49
50
50
51
51
52
52
53
54
55
57
57
58
58
59
60
60
60
61
61
61
62
64
65
66
66
66
68
70
1
Passenger development at Group airports
in which an interest of at least 50 % is held
2 Development of Group revenue, Group EBITDA and Group result
3 Development of key figures of the consolidated statement
of cash flows and the consolidated statement of financial position
4
5
6
7
8
Segment structure
Revenue by region
Employees by region
Agenda 2015
2013 passenger and cargo development at Frankfurt Airport
9 Group revenue and return on revenue
10 Group EBITDA and EBITDA margin
11 Group result and earnings per share
12
13
Aviation
Retail & Real Estate
14 Ground Handling
15
16
17
External Activities & Services
Segment contribution to Group revenue 2013
Segment contribution to Group EBITDA 2013
18 Capital expenditure by segments
19
20
21
22
23
Summary of the statement of cash flows and reconciliation
to the Group liquidity
Structure of the consolidated financial position as at December 31
Allocation of industrial assets
Rating structure of assets
Repayment profile as at December 31, 2013
24 Maturity profile of the floating financial debt and derivatives
25 Group value added before taxes and ROFRA
26 Global satisfaction at Frankfurt Airport
27
28
29
30
31
32
Punctuality rate at Frankfurt Airport
Baggage connectivity at Frankfurt Airport
Equipment availability rate at Frankfurt Airport
Employee satisfaction
Total number of work accidents
Employees and percentage of women as at December 31
33 Development of the Fraport share compared to the market
and European competitors
34 Development of the Fraport share compared to the market
and European competitors as a multi-year overview
Shareholder structure as at December 31, 2013
Allocation of free float
35
36
37 Dividend per share and dividend yield
38
39
Risk managment system
Reporting matrix
List of Tables
Cover
Page
Table
C2
C2
C2
C3
C3
C3
C3
1
Financial performance indicators
2 Non-financial performance indicators
3
4
5
6
7
Employees
Fraport Segments – Aviation
Fraport Segments – Retail & Real Estate
Fraport Segments – Ground Handling
Fraport Segments – External Activities & Services
To our Shareholders
Page
Table
19
20
8 Composition of the Supervisory Board
9 Committees of the Supervisory Board
Group Management Report
Page
Table
25
26
29
40
41
41
41
42
43
44
45
47
47
52
53
54
56
57
59
62
62
64
65
86
86
86
87
87
87
89
10
Target/actual comparison of major forecasts for 2013
11 Composition of the Supervisory Board
12
13
14
15
16
17
Forecasts for the long-term development of global air traffic
Remuneration of the Executive Board 2013
Remuneration of the Executive Board 2013
Remuneration of the Executive Board 2012
Remuneration of the Executive Board 2012
Pension obligations to currently active members
of the Executive Board
18
Remuneration of the Supervisory Board 2013
19 Gross domestic product (GDP)/world trade
20
21
Passenger and cargo development by region
Airports with a Fraport share of at least 50 %
22 Minority-owned airports or airports under management contracts
23 Development of the key Group companies
24 Multi-year overview of capital expenditure
25
26
27
Reconciliation to the cash and cash equivalents
as at the consolidated statement of financial position
Financial debt structure
Asset structure of Fraport AG
28 Development of the value added 2013
29
30
Average number of employees
Average number of employees per segment
31 Development of the share 2013
32
33
34
35
36
37
38
39
Fraport share key figures and data
Reconciliation – Group
Reconciliation – Aviation
Reconciliation – Retail & Real Estate
Reconciliation – Ground Handling
Reconciliation – External Activities & Services
Reconciliation – Asset and financial position
Aggregation of key figures of the business outlook
Consolidated Financial Statements
Page
Table
92
93
94
95
96
98
100
101
40 Consolidated Income Statement
41 Consolidated Statement of Comprehensive Income
42 Consolidated Statement of Financial Position
as at December 31, 2013
43 Consolidated Statement of Cash Flows
44 Consolidated Statement of Changes in Equity
45 Consolidated Statement of Changes in Non-current Assets
46
Segment Reporting
47 Geographical information
Fraport Annual Report 2013 Further Information / List of Graphics and Tables
199
Group Notes
Page
Table
Group Notes
Page
Table
103
104
105
109
115
120
121
121
121
121
122
122
123
124
124
124
125
125
125
126
127
127
128
128
129
129
129
130
130
131
132
132
133
134
134
135
135
136
136
137
137
137
138
140
140
140
141
141
142
142
143
144
144
145
146
48 Companies included in consolidation
49
50
51
52
53
Joint ventures
Exchange rates
Regular depreciation and amortization
Effects of the retrospective application of IAS 19R
Revenue
54 Minimum lease payments
55 Change in work-in-process
56 Other internal work capitalized
57 Other operating income
58 Cost of materials
59
Personnel expenses and average number of employees
60 Depreciation and amortization
61 Other operating expenses
62 Group auditor fees
63
64
Interest income and interest expenses
Interest from financial instruments measured
at fair value directly recognized in equity
65
Result from associated companies
66 Other financial result
67
68
69
70
Taxes on income
Allocation of deferred taxes
Tax reconciliation
Earnings per share
71 Goodwill
72
Investments in airport operating projects
73 Other intangible assets
74
75
76
77
78
79
Property, plant and equipment
Finance lease contracts (2013)
Finance lease contracts (2012)
Investment property
Investments in associated companies
Financial information regarding associated companies
80 Other financial assets
81 Non-current and current other receivables and financial assets
82
Income tax receivables
83 Deferred tax assets
84
85
Inventories
Trade accounts receivable
86 Default risk analysis
87
Allowances
88 Cash and cash equivalents
89
Equity attributable to shareholders of Fraport AG
90 Development of the floating and treasury shares according
to Section 160 of the AktG
91 Non-controlling interests
92 Non-current and current financial liabilities
93
Trade accounts payable
94 Non-current and current other liabilities
95 Maturity of lease payments
96 Deferred tax liabilities
97 Offsetting
98
99
100
101
Pension obligations (2013)
Pension obligations (2012)
Significant actuarial assumptions
Sensitivity analysis as at December 31, 2013
102 Non-current and current income tax provisions
146
147
148
149
150
151
151
152
152
153
153
155
156
157
157
159
159
160
160
161
162
163
164
164
165
165
166
166
167
169
169
169
170
170
180
180
180
181
181
183
184
184
188
190
190
191
196
103 Non-current and current personnel-related provisions
104 Other provisions
105
106
Financial instruments as at December 31, 2013
Financial instruments as at December 31, 2012
107 Measurement categories according to IFRS 7.27A (2013)
108 Measurement categories according to IFRS 7.27A (2012)
109 Net results of the measurement categories
110 Derivative financial instruments
111
112
Fair values of derivative financial instruments
Interest rate swaps (hedge accounting)
113 Currency forwards
114
Reconciliation to the cash and cash equivalents
as at the consolidated statement of financial position
115 Guarantees and other commitments
116 Order commitments
117 Operate leases
118 Development of the subscription rights issued
119 Conditions of the MSOP tranches
120
121
Fair value of the MSOP tranches
Volatilities and correlations
122 Development of virtual shares issued
123 Measurement parameters (LTIP)
124 Classification of securities
125
126
127
128
129
130
Issuer ratings of securities (2013)
Issuer ratings of securities (2012)
Issuer ratings liquid funds (2013)
Issuer ratings liquid funds (2012)
Liquidity profile as at December 31, 2013
Liquidity profile as at December 31, 2012
131 Currency rate sensitivity
132
Interest sensitivity
133 Components of the control indicators
134
135
136
137
138
139
140
141
Financial debt ratios
Relationships with related parties and the State of Hesse
Remuneration of management
Remuneration of the Executive Board 2013
Remuneration of the Executive Board 2013
Remuneration of the Executive Board 2012
Remuneration of the Executive Board 2012
Pension obligations to currently active members
of the Executive Board
142
Remuneration of the Supervisory Board 2013
143 Mandates of the Executive Board
144 Mandates of the Supervisory Board
145
146
147
Subsidiaries
Joint ventures
Associated companies
148 Other investments
149
Seven-Year-Overview
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Further InformationFraport Annual Report 2013
2 0 0
Glossary
Capital employed
Gearing ratio
Net financial debt + shareholders’ equity 1)
Net financial debt/shareholders’ equity 1)
Debt-to-equity ratio
Net financial debt/total assets
Liquidity
Cash and cash equivalents (as at financial position) + short-term
realizable items in “other financial assets” and “other receivables
Dividend yield
Dividend per share/year-end closing price of the share
and financial assets”
Market capitalization
Dynamic debt ratio
Year-end closing price of the Fraport share × number of shares
Net financial debt/cash flow from operating activities
Net financial debt
EBIT
Non-current financial liabilities + current financial liabilities – liquidity
Abbreviation for: earnings before interest and taxes
EBIT margin
EBIT/revenue
EBITDA
Abbreviation for: earnings before interest, taxes, depreciation
and amortization
EBITDA margin
EBITDA/revenue
EBT
Personnel expense per employee
Personnel expense/average number of employees
Price-earnings ratio
Year-end closing price of the Fraport share/earnings per share (basic)
Return on revenue
EBT/revenue
Return on shareholders’ equity
Profit attributable to shareholders of Fraport AG/shareholders’ equity 1)
Abbreviation for: earnings before taxes
ROCE
EURIBOR
Abbreviation for: European Interbank Offered Rate = Interest rate
ROFRA
used by European banks, when trading fixed-term deposits with
Abbreviation for: return on Fraport assets = EBIT/Fraport assets
Abbreviation for: return on capital employed = EBIT/capital employed
each other. It is one of the most important reference interest rates,
among European bonds, bearing floating interest payments
Shareholders’ equity ratio
Shareholders’ equity 1)/total assets
Fraport assets
Capital required for operations = Goodwill + other intangible
Working capital
assets at cost/2 + investments in airport operating projects at cost/2
Current assets – trade accounts payable – other current liabilities
+ property, plant and equipment at cost/2 + inventories + trade
accounts receivable – construction in progress at cost/2 – current
Yearly performance of the Fraport share
trade accounts payable
(Year-end closing price of the Fraport share + dividend per share)/
previous year-end closing price
Free cash flow
Cash flow from operating activities – investments in airport operating
projects – capital expenditure for other intangible assets – capital
expenditure for property, plant and equipment – investment property
1) Shareholders’ equity less non-controlling interests and profit earmarked for distribution.
Fraport Annual Report 2013 Financial Calendar 2014
Thursday, May 8, 2014
Group Interim Report
January 1 to March 31, 2014
Monday, June 2, 2014
Dividend payment
Online publication, conference call
Thursday, August 7, 2014
with analysts and investors
Group Interim Report
January 1 to June 30, 2014
Friday, May 30, 2014
Online publication, conference call
Annual General Meeting 2014
with analysts and investors
Frankfurt am Main, Jahrhunderthalle
Traffic Calendar 2014
(Online publication)
Thursday, November 6, 2014
Group Interim Report
January 1 to September 30, 2014
Online publication, press conference and
conference call with analysts and investors
Thursday, April 10, 2014
March 2014/3M 2014
Tuesday, August 12, 2014
Wednesday, December 10, 2014
July 2014
November 2014
Tuesday, May 13, 2014
Wednesday, September 10, 2014
Thursday, January 15, 2015
April 2014
August 2014
December 2014/FY 2014
Thursday, June 12, 2014
May 2014
Monday, October 13, 2014
September 2014/9M 2014
Thursday, July 10, 2014
June 2014/6M 2014
Wednesday, November 12, 2014
October 2014
Imprint
Publisher
Fraport AG
Contact Investor Relations
Printing
Stefan J. Rüter
Eberl Print GmbH, Immenstadt i. Allgäu
Frankfurt Airport Services Worldwide
Head of Finance and Investor Relations
60547 Frankfurt am Main
Germany
Telephone: + 49 69 690-74840
Fax: + 49 69 690-74843
Publication Date
March 27, 2014
Telephone: +49 (0) 1806 3724636 1)
Website: www.meet-ir.com
Website: www.fraport.com
E-mail: investor.relations@fraport.de
Editorial Deadline
1) 20 Cents (€) per call within German landline network;
mobile phone rates may vary, maximum 60 Cents (€)
within Germany.
Concept und Design
heureka GmbH, Essen
March 4, 2014
Disclaimer
Photography
In case of any uncertainties which arise due to
errors in translation, the German version of the
Michael Gernhuber, Essen
Annual Report is the binding one.