Moving the world Annual Report 2009
Business figures Financials FMG Group Group sales and earnings (€ million)
2009
2008
2009 / 2008
Group sales
981.3
1,043.7
- 6.0 %
EBITDA 1) 2)
353.8
346.1
2.2 %
EBIT 1) 2) Group net income 2) 3)
214.1 92.9
204.1 78.8
4.9 % 17.8 %
Group profitability indicators (%)
2009
2008
2009 / 2008
EBITDA margin 1) 2)
36.1
33.2
8.7 %
EBIT margin 1) 2) ROCE 1) 2)
21.8 7.2
19.6 6.6
11.6 % 9.1 %
2008
2009 / 2008
1) EBITDA excl. building lease expense of €44 million in 2009 (2008: €44 million), EBIT excl. leasing interest 2) Earnings excl. accruals of €84 million for Ground Handling (2008: €31 million) 3) Group net income excl. interest on shareholder loans of €10 million (2008: €44 million), not taking into account tax effects
Consolidated balance-sheet and cash flow statement items (€ million)
2009
Cash flow from operations
165.0
214.5
- 23.1 %
Investments
90.5
120.4
- 24.8 %
Depreciation
124.9
124.4
0.4 %
Balance-sheet total
2,951.1
2,964.5
- 0.5 %
Fixed assets Equity
2,789.5 442.1
2,827.5 443.6
- 1.3 % - 0.3 %
Personnel
2009
2008
2009 / 2008
Personnel costs (€ million)
309.3
314.1
- 1.5 %
Employees (average for year)
7,317
7,609
- 3.8 %
2009
2008
Aviation sales
52
53
Non-aviation sales
48
47
Aviation/non-aviation sales
Ten-year overviews
Commercial passenger movements 2000 – 2009 Passengers (millions) 34.0
36
34.5
10.4 %
1.7 %
28.6 26.8
28 23.1
24
8.7 %*
23.6
23.2
2.3 %
- 2.0 %
2001
2002
24.2
2007
2008
431,815
432,296
5.0 %
0.1 %
32.7 - 5.4 %
30.8
32
7.5 %
6.7 %
10.8 %
4.4 %
20 16 12 8 4 0 2000
2003
2004
2005
2006
2009
* Percentage change on prior year
Total aircraft movements 2000 – 2009 Takeoffs and landings 450,000 383,110
400,000 350,000
319,009 6.7 %*
337,653 5.8 %
344,405 2.0 %
355,602
7.7 %
398,383 4.1 %
411,335 3.1 %
396,805 - 8.2 %
3.3 %
300,000 250,000 200,000 150,000 100,000 50,000 0 2000
2001
* Percentage change on prior year
2002
2003
2004
2005
2006
2007
2008
2009
Ten-year overviews
Cargo 2000 – 2009 Flown air freight and air mail (tons) 265,607 270,000
11.6 %
238,075
240,000
218,049 192,167
210,000 180,000 150,000
148,018
145,940
7.6 %*
- 1.4 %
2000
2001
166,884
162,545
14.4 %
- 2.6 %
2002
2003
259,645 - 2.2 %
229,095
9.2 %
- 11.8 %
13.5 %
18.2 %
120,000 90,000 60,000 30,000 0 2004
2005
2006
2007
2008
2009
* Percentage change on prior year
Maximum takeoff mass (MTOM) in all traffic segments 2000 – 2009 MTOM (millions of tons) 16 13.2
14 12 10
9.3
9.7
5.3 %*
4.3 %
9.4 - 3.2 %
9.5 1.8 %
10.7
11.3
12.0
6.2 %
6.5 %
2005
2006
9.6 %
13.8 4.3 %
13.0 - 5.3 %
11.6 %
8 6 4 2 0 2000
2001
* Percentage change on prior year
2002
2003
2004
2007
2008
2009
Ten-year overviews
Commercial workload units 2000 – 2009 Workload units (thousands) 45,000 40,000 33,061
35,000
30,684 28,588
30,000 25,000
24,417
24,943
24,628
8.9 %*
2.2 %
- 1.3 %
2000
2001
2002
25,639
36,549
37,072
10.6 %
1.4 %
34,920 - 5.8 %
7.7 %
7.3 %
11.5 %
4.1 %
20,000 15,000 10,000 5,000 0 2003
2004
2005
2006
2007
2008
2009
Workload units are a unit of measure used to record commercial passenger and goods traffic volumes. One workload unit comprises one passenger with hand luggage (together, roughly 100 kg) flying into or out of an airport, or 100 kg of cargo or air mail handled, or a combination of passengers (arrivals and departures) and local cargo and air mail (unloaded and loaded). * Percentage change on prior year
Transfer passenger growth 2000 – 2009 Transfers as a percentage of departing passengers 40 35 30 27
29
31
31
2002
2003
33
34
34
2005
2006
35
36
37
25 20 15 10 5 0 2000
2001
2004
2007
2008
2009
Traffic figures Air traffic
2009
2008
2009 / 2008
Passenger movements (total)
32,701,759
34,552,189
- 5.4 %
- Commercial traffic
32,681,067
34,530,593
- 5.4 %
- Scheduled and charter traffic
32,657,300
34,501,806
- 5.3 %
71.5
72.8
- 1.3 PP
Aircraft movements (total)
396,805
432,296
- 8.2 %
- Commercial traffic
386,558
420,866
- 8.2 %
- Scheduled and charter traffic
376,770
408,292
- 7.7 %
229,095
259,645
- 11.8 %
13,034,666
13,768,050
- 5.3 %
Load factor (%)
Cargo handled Flown air freight and air mail (t) Maximum takeoff mass (MTOM) in commercial and non-commercial traffic (t)
Munich in comparison Traffic figures for German airports in 2009 (commercial traffic) Passengers (in + out + transit)
Aircraft movements
Cargo - air freight and air mail (t)
Frankfurt/Main
50,932,840
457,868
1,887,717
Munich
32,681,067
386,558
229,095
Berlin (total)
20,977,395
215,493
25,180
Düsseldorf
17,793,493
209,205
65,331
Hamburg
12,229,319
137,449
31,584
Cologne/Bonn
9,739,581
120,675
552,363
Stuttgart
8,934,493
125,486
24,276
Hanover
4,969,799
66,671
11,397
Nuremberg
3,965,743
55,825
8,420
Hahn
3,793,710
36,937
107,956
Bremen
2,448,851
35,901
731
Leipzig/Halle
2,410,812
55,762
507,195
Weeze
2,402,083
19,676
0
Dresden
1,718,923
27,225
481
Dortmund
1,716,516
24,043
21
Münster/Osnabrück
1,382,069
28,873
269
Karlsruhe/Baden-Baden
1,087,909
26,184
777
Paderborn/Lippstadt
983,706
25,921
29
Lübeck
688,302
10,274
0
Friedrichshafen
578,484
13,494
1
Saarbrücken
469,933
12,597
83
270,267 182,175,295
7,403 2,099,520
1,491 3,454,397
Ranking
Passengers (million)
2009/2008
Erfurt Total
Passenger figures for Europe’s top ten airports in 2009 (commercial traffic)
London Heathrow
1
66.0
- 1.5 %
Paris Charles de Gaulle
2
57.9
- 4.9 %
Frankfurt/Main
3
50.9
- 4.7 %
Madrid
4
48.2
- 5.1 %
Amsterdam
5
43.6
- 8.1 %
Rome Fiumicino
6
33.7
- 4.0 %
Munich
7
32.7
- 5.4 %
London Gatwick
8
32.4
- 5.3 %
Istanbul Atatürk Barcelona
9 10
29.9 27.3
+ 4.3 % - 9.7 %
Moving the world. As Europe’s most attractive hub airport, our role is to give individuals, businesses and markets the mobility they need in order to successfully meet today’s and tomorrow’s challenges. Where we stand out is through the speed and efficiency of our processes, our exceptional retail and hospitality base and, above all, our friendly and professional service. Our aim now is to make Munich Airport one of the most appealing, efficient and sustainable aviation hubs in the world.
Contents
2
Contents
Setting directions FMG Group consolidated financial statements | 72 – 103
Grasping opportunities Interview | 14 – 15
Contents
3
Sharing knowledge Highlights | 18 – 21
Safeguarding the future About us | 50 – 69
Opening up markets Business divisions | 24 – 47
Creating value Management | 6 – 11
Munich
Cape Town
Creating value. The world’s cities – booming business capitals, international trade hubs and up-andcoming cultural centers – need reliable access to transport networks. Because functioning infrastructure is crucial to enable ideas, innovations and free enterprise to unfold their full potential.
CEO’s letter
Management
Management 6
CEO’s letter
In 2009, a six-year run of robust growth at Munich Airport came to an end, halted by the global financial and economic crisis and an abrupt downturn in air traffic. During the course of the year, Bavaria’s international aviation hub recorded 32.7 million passenger movements in total, 5 percent fewer than in 2008. The traffic volume contracted particularly fast in the year’s first six months as demand for flights ebbed rapidly industry-wide, above all in the business travel segment. During the summer, however, the decline appeared to bottom out; the first green shoots of recovery began to emerge as we moved into the latter half of the year; and by the fourth quarter, Munich Airport had already seen an initial return to growth in passenger numbers and cargo volumes. One crucial factor that helped cushion the impact of the crisis in 2009 was our hub-and-spoke traffic at Munich Airport. Although passenger movements overall were dropping, the number of transfer passengers remained almost constant, year on year. As a result, the transfer volume in proportion to passenger traffic as a whole increased by a percentage point to 37 percent. In addition, long-haul traffic, an exceptionally important segment for our airport, remained largely unaffected by cutbacks, and we even saw a respectable gain of 6.2 percent in the number of passengers on flights to and from Asia. In the cross-border arena, we continued to compete successfully with rival aviation hubs and retained our number seven ranking among Europe’s busiest passenger airports. Today, thanks to the recovering economy and a noticeable acceleration in demand in the aviation sector, we expect to see a return to robust traffic growth in Munich during 2010. From a business perspective, Munich Airport put in a solid performance in fiscal 2009. We posted a profit of €105 million for the year – significantly more than a year earlier – and total revenue across the whole of the FMG Group exceeded the billion euro mark once again. In light of the improving overall economic situation and the global increase in demand for mobility, promising growth opportunities are emerging for international aviation. Munich Airport, with its highly evolved traffic structure and its demand-driven strategic expansion plans, is ideally placed to share in this growth. Today, we already offer flights to more destinations in Europe than any other airport, and our intercontinental traffic has burgeoned in recent years. Carriers operating out of our hub currently offer 260 long-haul flights a week to attractive destinations all over the world and are serving major cities like Singapore, Tokyo and New York with several flights a day. The efficient access that we as an airport provide to the aviation networks spanning the globe, plus the quality of experience we offer airport users through our outstanding retail, hospitality and services base, have made Munich one of the most popular airports in the world. More than eight million air travelers taking part in the 2009 World Airport Awards survey conducted by the London-based aviation research organization Skytrax, chose Munich as one of the world’s five best airports for the fifth year in succession.
Management
CEO’s letter
7
For every member of our workforce, regardless of rank or role, the recognition accorded to us through such an outstanding rating is a powerful incentive, not just to remain strongly competitive going forward, but to keep trying to best ourselves. We plan to continue developing Munich Airport in line with demand – to create value and jobs and to ensure that Munich and Bavaria retain their strong appeal as a location. This is why our plans to build the airport’s third runway have maximum priority. We’ve already reached a point where our existing two-runway system is insufficient to serve aviation’s current needs. For the most part, we’re no longer in a position to accommodate airlines’ requests for additional departure and arrival slots, irrespective of the time of day. We need a highly capable and efficient airport infrastructure in place if we are to make the most of the opportunities emerging for us as the world’s business regions and cultures forge ever stronger ties. Building the third runway as planned will boost our capacity to schedule takeoffs and landings from around 90 movements an hour to 120. We also intend to expand Terminal 2’s passenger handling capacity by constructing a satellite, complete with an underground people moving system connecting it to the terminal building. These strategic additions to our on-site infrastructure will equip Munich Airport to handle the growth in traffic anticipated by aviation experts. Their most recent forecasts predict that our annual passenger volume in Munich will increase to around 58 million by 2025. As our airport grows, so do our responsibilities as an airport operator, not least toward the environment. This is why we’ve set ourselves the challenging target of achieving carbon-neutral growth by 2020. In addition, as part of our sustainability strategy, we’re rolling out a raft of measures designed to significantly improve our energy efficiency – measures that we hope will serve as a model for the whole of our industry. Our aim is to enable people and goods to move around the world more efficiently. And to accomplish that, we will mobilize all our professional expertise, new and innovative technologies, and our dedicated and highly qualified workforce.
Dr. Michael Kerkloh President and Chief Executive Officer Flughafen München GmbH
Group structure
8
Management
Group structure
Finance and Controlling Human Resources Corporate Communications
Central divisions
Legal Affairs and Security Corporate Development and Environment
Business divisions
Aviation
Corporate Real Estate Management and Development
Retail and Services
Ground Handling
Terminal 2
Engineering and Facilities Information Technology Support divisions Corporate Services Security Planning and Construction
Flughafen München GmbH’s group structure organizes company functions into strategic business divisions, support divisions, and overarching central divisions.
Whereas the business divisions operate independently within their markets, the support divisions primarily operate internally and provide the business divisions with professional expertise and specialized services. The central divisions are responsible for the overall control of the FMG Group of companies.
Flughafen München GmbH (FMG) shareholders
City of Munich 23% Free State of Bavaria 51%
Federal Republic of Germany 26%
Executive board
Walter Vill
Dr. Michael Kerkloh
Thomas Weyer
Vice President and Chief Financial Officer
President and Chief Executive Officer Personnel Industrial Relations Director
Chief Operating Officer
Management team
10
Management
Management team
Rainer Beeck Director Senior Vice President Corporate Real Estate Management and Development
Florian Fischer Director Senior Vice President Terminal 2
Siegfried Pasler Senior Vice President Ground Handling
Andreas von Puttkamer Director Senior Vice President Aviation
Dr. Karl Heinz Schwarzmeier Director Senior Vice President Retail and Services
Johann Bernhard Director Senior Vice President Engineering and Facilities
Michael Ferchland Senior Vice President Planning and Construction (from May 1, 2009)
Thomas Scheidler Director Senior Vice President Corporate Services (until December 21, 2009)
Management
Management team
11
Gerhard Wirth Senior Vice President Security
Michael Zaddach Senior Vice President Information Technology
Dr. Deniz Akitürk Senior Vice President Human Resources
Hans-Joachim Bues Senior Vice President Corporate Communications
Josef-Heinz Loichinger Director (from August 1, 2009) Senior Vice President Finance and Controlling
Thomas Ross Director Senior Vice President Legal Affairs and Security
Gertrud Seidenspinner Senior Vice President Corporate Development and Environment (from January 1, 2009)
Dr. Brigitte Englert Director Corporate Representative for Government Affairs
Munich
Puerto Plata
Grasping opportunities. For us, connecting people with their dream destinations is more than just a duty, it’s a pleasure. We provide outstanding links by air to the world’s vacation spots and welcome travelers from all over the globe who come to visit Munich and Bavaria, one of Europe’s most popular holiday regions.
A flagship location for our company
Interview
Interview 14
A flagship location for our company Interview with Erich Sixt, Chairman of the Managing Board of Sixt AG
With almost 1,900 stations in roughly a hundred countries and more than 500 in Germany alone, Sixt AG is Germany’s largest car rental company. Sixt has been at Munich Airport since 1977, when it was still in Riem. Erich Sixt, how important is Munich Airport as a location for your company? Sixt: For us, Munich Airport is a flagship location. The station we had in Riem was one of the very first we opened at an airport. Today, we lead the market in Germany, especially at the country’s airports, where in some cases our market share is as high as 40 percent. It would be fair to say that the success of Sixt’s airport stations began in Munich. I’d also add that Munich is our home airport: We’re a Munich company and we’re proud of our roots. So it’s almost a matter of pride for us that Munich is our biggest airport station in Germany – and rightly so when you look at our figures: Munich generates the highest revenue of all our airport stations, and that, of course, is a big point in its favor. We have six car rental companies at Munich Airport at present, and customers’ ratings of our car rental center are consistently high. This is partly because it’s new location in the München Airport Center means it’s right in the middle of our passenger handling area. How do you find the new location in terms of processes and procedures? Sixt: The big advantage of the car rental center is that the majority of passenger and visitor streams from Terminal 1 and 2 pass by it. This means large numbers of people see our distinctive orange and black brand color scheme, and we can only gain from a strong location like this. In addition, we were allowed to design our counter to our own wishes and specifications. That also helped us to mount a presence that reflects what we as a company stand for – the “spirit of mobility.” This freedom to create our own design is something we truly appreciate. In addition, we’re keen innovators, and the location
encouraged and inspired us to introduce a number of important innovations. One example is that we now use a chip-based RFID system to manage our vehicles; this means we can always locate the right sets of keys, even at a distance. In the car rental business, innovations are generally rolled out first at big, busy stations like Munich Airport. We’ve also grouped our parking spaces according to customer segments. For instance, this means that frequent customers’ cars are parked close to the counter area. Sixt Diamond customers can even pick up their cars in a separate lounge. These examples, I think, underscore both the quality of our services at Munich Airport and how important the location is for us. In 2009, your company had a workforce of around 3,000 people worldwide, including 2,000 in Germany. How many work at your Munich Airport location? Sixt: We employ around 100 people at Munich Airport. They’re completely committed to giving our customers the best possible service, and they understand that this is a high-profile location with an international clientele where they are ambassadors for our company. In my view, they’re doing a terrific job. The difficult overall economic situation led to a drop in the number of passengers at Munich Airport in 2009. In the year’s final quarter, though, we saw initial signs of a recovery. Was the pattern much the same in the car rental sector, and were you affected by the particularly sharp decline in business travel? Sixt: No. In 2009 demand remained steady and consistently high. Clearly, we noticed companies were cutting business travel budgets, but we were able to compensate for the decline with new business and highly attractive special offers. Another factor that helped us was the strength of the Sixt brand: We have a positive image, and we’re a name that 85 percent of people in Germany recognize.
Interview
A flagship location for our company
15
Airports have long since advanced to become much more than pieces of transport infrastructure. Munich Airport in particular has developed its non-aviation activities enormously. How do you regard the nonaviation business at Munich Airport? Sixt: I have to admit that I’m far more interested in cars than I am in shopping. However, when I visit the airport, I do notice the large numbers of people in the stores, supermarkets, bars and restaurants. Especially at weekends, when there’s a large influx of locals who aren’t flying but just want to browse the stores and have a bite to eat, it’s as if I’m not at an airport at all but in a busy shopping concourse. Obviously, though, that’s good for Sixt.
developing constantly, and we’re keeping pace with it. We plan to continue investing in the intermediate term and intend expanding our logistics at the airport.
At Munich Airport, Sixt does more than just hire out cars, your company also runs prominent ad campaigns and promotes new products here. What are the airport’s advantages as a location? Sixt: For a service business like Sixt, advertising and marketing are key success factors. In my view, Sustainability is a key concern for FMG and today though, our ad campaigns at Munich Airport have plays a central role in our corporate strategy. Sixt, become something of an art in their own right. too, is committed to corporate social responsibilThey’re typically highly conspicuous, spectacular ity. Do you offer customers environment-friendly and, at times, provocative. Take the car made out of vehicles for hire? bones in the plaza, for example: We built a vehicle in the form a dinosaur skeleton and paired it with Sixt: In keeping with our reputation as an innovator in car rentals, the majority of the vehicles we hire the slogan “Thanks to Sixt, expensive rental cars out are equipped with fuel-efficient engines. They are extinct.” Another big eye-catcher, on the way to include cars featuring automakers’ latest advances, the multistory parking garage, was a car that looked such as BMW’s EfficientDynamics, Mercedes-Benz’s as if it had been driven through a wall. The slogan Blue Efficiency, VW’s Blue Motion, smart mhd, and underneath it read “Sixt also has cars with parking assistance.” We cut a Polo in half specially for the ad. numerous others. Our fleet is a leader in terms of its performance-to-consumption ratio. These modern We’re also famous for our giant posters in the P20 engines save our customers – both business and pri- multistory. As you can imagine, we get a lot of fun out of coming up with new eye-catchers, working vate – money at the pumps. And an economical car is an eco-friendly car. with the airport to develop the ideas, and running these ads in this unique architectural environment. You say your company is currently expanding. That’s But it’s also about business, of course: Munich something we’ve noticed at Munich Airport … Airport is an important hub for business travelers, Sixt: Yes, that’s right. In the summer of 2010, we our number one target group. Every day, countless invested in upgrading and expanding our station. decision-makers from all over the world pass through We improved our counter again, even though it was the airport, and I hope that we succeed in making a already state-of-the-art, and we created a more exten- lasting impression on them. sive area with flat screens, quick check-in machines and other advanced technology. Munich Airport is
Munich
Stockholm
Sharing knowledge. Smart networks learn and adapt to changing circumstances. The hubs that drive them work like a brain’s synapses, choosing smarter connections – to move cargo tonnage and millions of passengers efficiently, to transfer knowledge swiftly, and to expedite global communication.
The year in review
Highlights
Highlights 18
The year in review
March 16, 2009 Local energy utility company Stadtwerke München installs biogas and natural gas refueling points at the Agip filling station on Munich Airport’s Nordallee. Owners of gas-powered automobiles can now fill up with an ecofriendly mix of bio-methane and natural gas at the station’s refueling points. The station, currently one of a kind at an airport in Germany, underscores Flughafen München GmbH’s commitment to sustainability and environmental protection.
January 15, 2009 Terminal 2’s new rooftop passageway opens. Roughly 1,000 meters long, the glass passage added to the roof of the terminal building was built to enable the systematic separation of passenger streams at Munich Airport’s Terminal 2. The new structure was necessary in order to fulfill a European Union directive requiring member states’ airports to segregate departing passengers from incoming passengers not screened to EU security standards. The total costs of the remodeling project ran to around €60 million.
March 29, 2009 Airlines in Munich react to the economic crisis by operating fewer flights. With the start of the new summer season, Munich Airport’s timetable offers services to 49 long-haul, 160 continental and 20 domestic destinations – in total, 229 airports in 70 different countries. Airlines coordinated around 241,000 takeoffs and landings for the summer, roughly 9 percent fewer than a year earlier. Deutsche Lufthansa operates a total of 20 flights a week from Munich to New York’s John F. Kennedy Airport. The carrier also begins flying four times a week to Tel Aviv and expands its network of European routes once again. The additions include a daily service to a brand new destination, Lviv in western Ukraine.
April 2009 Flughafen München GmbH publishes its first ever sponsorship report on its regional outreach and support program. For many years now, the airport operating company has been involved in various initiatives, including youth sport sponsorships in the airport’s neighboring communities, and now supports more than 20,000 young people in around 70 local sports clubs. Other key areas of FMG’s sponsorship activities include support for educational institutions, social welfare organizations and programs, and arts and cultural offerings in the airport’s home region.
Highlights
The year in review
19
April 2009 Allresto Flughafen München Hotel und Gaststätten GmbH, a Flughafen München GmbH subsidiary, is awarded an environmental certificate under the EU’s Eco Management and Audit Scheme. Allresto runs around 40 hospitality operations at Munich Airport, including the only organic bistro at an airport in Germany. After Flughafen München GmbH and the Kempinski Hotel Airport München, Allrestro is the third company at the airport to be certified to both the ISO 14001 and EMAS environmental management standards.
April 22, 2009 Topping out ceremony for the new hotel at Munich Airport: To meet growing demand for on-site overnight accommodation, the airport is building a new three-star-plus, mediumprice-segment hotel with more than 250 rooms. Novotel, a brand of the French hotel group Accor, won the bid to construct the airport’s second on-campus hotel. The new facility is scheduled to open in early 2010.
April 1, 2009 An energy-saving solar-powered air-conditioning system goes into service at the Munich Airport cargo terminal. Used to cool the employee canteen, the new system keeps the room temperature at a constant 21 degrees Celsius. When the canteen does not require cooling, warm water from the system’s solar collectors is used to heat the building and its service water. The system avoids around 25 metric tons of carbon dioxide emissions a year that conventional heating and air-conditioning would generate. This the first climate protection project of its kind to be piloted at a European commercial airport.
May 27, 2009 Munich Airport launches a new web-based service to help travelers plan journeys to and from the airport. Passengers simply pick their flight from the timetable on the airport’s web portal. They are then shown the latest information on the flight plus two links – one to a planner for people traveling by car, and one to an information system for those traveling on public transport. The information service automatically allows for check-in times and walks between terminals and the parking garages, bus stops and train stations. The system also displays a map showing the optimum route on foot.
The year in review
Highlights
20 June 2009 Thanks to a new FMG environmental project, the energy consumed by apron lighting can be cut by roughly a quarter. A computer predicts the exact time a flight will land and, if there is insufficient daylight, switches on the lighting at the assigned parking position with sufficient lead time. When the aircraft leaves the parking position, the lighting is switched off again automatically after a certain time. The project is helping to save almost 980,000 kilowatt hours of power and around 570 tons of carbon emissions annually. If necessary, apron controllers can intervene and override the automatic control system.
October 12, 2009 Munich Airport’s operator, Flughafen München GmbH, celebrates a major anniversary: Sixty years ago, the Free State of Bavaria and its capital, Munich, formed the original operating company, Flughafen München-Riem Gesellschaft mbH. At startup, the company had 134 employees; today, around 30,000 people, including 7,400 in the FMG Group, work for 550 organizations at the airport. In the year the company was formed, the old airport in Riem recorded a total of 28,970 passenger movements; last year, the number exceeded 32.7 million. This means that the passenger volume has increased more than a thousandfold over a 60-year period.
June 2009 In the 2009 World Airport Awards, Munich Airport retains its number five ranking of a year earlier to remain one of the world’s best airports. Worldwide, only Seoul, Hong Kong, Singapore and Zurich ranked higher. The results were based on a survey of 8.6 million passengers conducted by Skytrax, a Londonbased independent aviation research organization. In the categories Best International Transit Airport and Best Immigration Service, Munich ranked even higher, taking third place among the more than 190 airports in the survey.
October 14, 2009 At the 26th International German Project Management Forum in Berlin, FMG receives the prestigious German Project Excellence Award for its outstanding implementation of change processes within the company. Introduced in 1997, the award is bestowed by Deutsche Gesellschaft für Projektmanagement (GPM), Germany’s foremost professional association in the field of project management. The project in question, Munich Airport Project Management (Map), was launched to establish a unified project management approach, company-wide.
October 25, 2009 Airlines coordinate around 154,000 take-offs and landings at Munich Airport for the winter season. The new timetable offers quick and convenient nonstop flights to a total of 195 international cities, including 47 long-haul destinations in Africa, the Americas and Asia. Over the winter season, 90 carriers operate services from Munich Airport to 220 destinations in 65 countries. One new highlight is a service to Muscat, the capital of Oman, operated by Oman Air, and Air Mauritius makes a return to Munich with a service to the vacation paradise in the Indian Ocean.
Highlights
The year in review
December 22, 2009 Flughafen München GmbH is honored with the TOP Health Management Award 2009. The award is bestowed on organizations in recognition of their efforts to promote employee health, performance and motivation. FMG was a winner in more than one instance, achieving not just 94 percent of the maximum possible score in the Health Management category, but also heading up the Work Environment Experience category and ranking among the leading companies in the Special Award category for its exceptional commitment to health management. In the overall rankings, too, FMG won first place along with the title of “Bavaria’s fittest company.” The award competition was held by consultants TG Life Concept GmbH in association with Bavaria’s social welfare ministry and Techniker Krankenkasse, a health insurance carrier.
November 2009 In its latest issue, Monocle, a well-known London global affairs and travel magazine, names Munich Airport as the best in Europe. In a supplement titled The Monocle Travel Top Fifty 2009 / 2010, a team of writers report on their experiences with airlines, airports, hotels and other travel-related businesses around the world and summarize their research findings in 50 categories. Munich wins the Best Airport in Europe category. The writers are particularly impressed by the airport’s hub connections, the quality of the signage, and the architecture.
December 4, 2009 Flughafen München GmbH unveils its first sustainability report. Titled Perspectives, the 110-page document details the company’s concept for a sustainable corporate policy that unites business with environmental and societal goals. The report is prepared in accordance with binding guidelines issued by the internationally respected Global Reporting Initiative (GRI) to encourage transparent and comparable corporate reporting worldwide. The GRI reviews sustainability reports according to a comprehensive catalog of criteria and grades them on a range from A to C, depending on the reports’ scope and depth. Munich Airport’s first such report scored an A – the very first top rating awarded to a European airport for its sustainability reporting.
December 16, 2009 Dr. Michael Kerkloh, Flughafen München GmbH’s CEO, and Serirat Prasutanond, the head of Bangkok’s Suvarnabhumi International Airport, seal a sister airport agreement. FMG played a key role in the successful launch of operations at Bangkok’s new airport in 2006. Besides fostering greater collaboration between the two airports in areas like technology, operations and media relations, the agreement aims to increase air services between Munich and Bangkok.
December 2009 Flughafen München GmbH’s specialists in relocation logistics win a major new order: The company’s experts will be in charge of organizing the transfer logistics and managing trial operations at Berlin-Brandenburg International, the German capital’s major new airport. FMG’s specialists are regarded as the world’s preeminent consultants in the field of Operational Readiness and Airport Transfer (ORAT).
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Munich
Tokyo
Opening up markets. Cities are vibrant marketplaces. More than 35 million people live in the greater Tokyo conurbation, the world’s largest metropolitan area. Our mission is to provide the kind of rapid access to fast-growing population centers that’s vital to our customers’ and partners’ success.
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Aviation Ground Handling Corporate Real Estate Management and Development Retail and Services Terminal 2
Business divisions
Aviation
Aviation
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In spite of the global economic woes, we remained one of Europe’s busiest passenger airports and continued to strengthen our role as an aviation hub. International traffic scored significant gains, particularly on routes to and from the Middle East, and proved to be a steadying factor as the year unfolded.
Hub operations expand in spite of the crisis Munich Airport’s traffic figures for 2009 clearly reflect the impact of the global financial and economic crisis on the aviation sector. Just under 32.7 million passengers – around 5.4 percent fewer than in 2008 – passed through Bavaria’s international aviation gateway last year. Even so, Munich was able to retain its number seven position in the circle of Europe’s leading airports, and continues to rank among the 30 busiest passenger airports worldwide.
In terms of Munich Airport’s role as a major European aviation hub, the crisis had little effect. On the contrary: Transfer passengers accounted for 37 percent of Munich’s traffic, a percentage point higher than a year earlier, so it would seem that the airport’s position as an aviation hub had a generally stabilizing effect on traffic growth.
Traffic figures for commercial airports in Germany 1992– 2009
Transfer passenger flows in 2009
Mean growth rate MUC
ADV (German Airports Association) excl. MUC
Domestic
< 1%
Domestic 17 %
10%
6.1% 5%
Munich Airport
4.4% 3.6% 18 %
0.8% 0% Aircraft movements (total traffic)
Passengers (commercial traffic)
International
65 %
International
Hub traffic helped slow the drop in passenger numbers
Aviation
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Gains on routes to Africa, Asia and the Middle East, in particular
Signs of recovery at the end of 2009 The decline in passenger figures was due first and foremost to a slackening in demand for business travel. The change in the volume of business traffic is doubtless due to the contraction in the economy and attendant efforts by companies all over the world to cut costs. By contrast, private demand for air travel remained relatively stable. The direct relationship between the wider economic climate and the volume of air traffic was also clearly evident as the year unfolded, with traffic growth tracking changes in the economy quarter for quarter and gradually returning toward positive territory: Whereas in the first quarter figures were down by 9.6 percent, traffic growth at Munich Airport was already back to 1.2 percent in the final quarter of 2009.
Passenger growth by quarters in 2009
1.2% 0%
- 3.6%
- 5%
- 10% - 9.6% * Q1
- 9.3% Q2
* Percentage change year on year Source: Flughafen München GmbH
Q3
Q4
Carriers operating larger jets The number of takeoffs and landings in 2009 slipped by 8.2 percent to 396,805 in total. This decline in aircraft movements was steeper than the drop in the number of passengers because airline companies realigned their capacity to reflect the lower demand brought on by the crisis. Carriers combined flights and began operating larger aircraft, causing capacity to increase by five seats per flight and the maximum takeoff mass of aircraft to climb from 66.1 metric tons to 68.2, on average. In 2009 the load factor on flights averaged 71.5 percent, compared to 72.8 percent in 2008. Another reason for the sharper decline in the number of aircraft movements compared to passenger numbers was the discontinuation of a large number of air cargo and air mail flights. Intercontinental traffic still at a high level Passenger growth differed significantly from one traffic segment to another. Whereas passenger numbers on domestic and European routes dropped by 6.5 and 5.9 percent respectively, demand on intercontinental routes dipped just 0.6 percent, with the number of air travelers on long-distance journeys remaining more or less flat, year-on-year, at the high level of around 4.6 million. Thanks in particular to the daily flights to Johannesburg operated by South African Airways, passenger numbers grew 17 percent on routes to Africa. We also registered a gain of 6.2 percent in numbers on services to and from Asia, and Middle East air traffic grew almost 20 percent. In October, a new carrier, Oman Air, joined the ranks of the airline companies in this boom region already serving Munich, alongside Qatar Airways, Emirates, Etihad and Saudi Arabian Airlines. In 2009, the highest passenger numbers we recorded on long-haul routes were on flights between Munich and Dubai, followed by Chicago, Washington and Bangkok.
Business divisions
Aviation
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Spain ranked number one yet again There were significant differences in the way so-called continental traffic developed during 2009. Services to certain Eastern European countries, a key growth region in recent years, were scaled back or discontinued (to Lithuania, Slovakia and Armenia, for example), yet on routes to and from Bulgaria, Latvia and Croatia passenger numbers continued to grow at rates of between 2 and 8 percent. The number of passengers on services to and from Israel surged 17 percent when Lufthansa began serving Tel Aviv with non-stop flights from Munich again. Continuing the pattern we’ve seen in recent years, the countries in the continental segment with the highest passenger numbers in 2009 were Spain with 2.5 million, Italy with 2.3 million, and Great Britain with 1.7 million. The highest passenger numbers were recorded on services to London Heathrow (with around 902,000), Paris Charles de Gaulle (approximately 828,000) and Madrid (around 603,000). Domestic traffic: Hamburg in high demand Given that domestic traffic typically includes a high proportion of business travelers, passenger numbers in this segment were down 6.5 percent in 2009 compared to a year earlier, in line with the general trend in business travel. A total of 9.3 million air travelers used Munich Airport for domestic German flights in 2009.
Just as in 2008, the most in-demand domestic destination was Hamburg with around 1.6 million passenger movements. The second- and third-ranked routes in the statistics were Berlin/Tegel with more than 1.5 million passengers and Düsseldorf with just under 1.5 million. Regular services to 235 destinations In 2009, 173 airlines operated scheduled and charter services to and from Munich. Of these, 94 carriers regularly served 235 destinations in 69 countries. Twenty of these destinations were in Germany, 148 in Europe and 67 in Asia, the Americas and Africa. As in prior years, September was the busiest month with more than 3.1 million passengers. On average we recorded 89,537 passengers and 1,059 aircraft movements a day in the commercial sector. Cargo: A return to growth in the final quarter Our air cargo business was hit much harder than the passenger segment by the economic crisis in 2009. In total, Munich Airport transshipped a total cargo volume of 229,095 metric tons, including flown freight and air mail – 11.8 percent down on 2008. On average, we handled 592 tons of flown freight and air mail each day in the commercial sector. The freight volume in its own right shrank by 10.7 percent, to 216,000 tons. This sharp decline in freight traffic reflects the general situation across the whole of the transportation industry, though some segments were hit significantly harder than others: Rail goods traffic carried by Deutsche Bahn,
On average, 89,537 passengers and 1,059 aircraft movements a day
Aviation
Business divisions
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First clear signs of resurgent cargo growth in the fourth quarter of 2009
for example, dropped by around 20 percent in 2009. Even so, the quarterly figures for air cargo, like passenger traffic, showed a clear upward trend: In the first three months of 2009 we recorded a drop of around 26 percent, yet we concluded the year’s fourth quarter with a strong gain of 8.7 percent. In our view, this is a clear indication of the onset of a recovery, and we expect see momentum build during the course of 2010. We consider this a positive sign because air cargo traffic, as a rule, is a reliable early indicator of wider trends in the economy. Bellyhold freight at 87 percent The steepest decline we recorded occurred in the freight-only segment, in other words with freight carried by dedicated cargo aircraft. Many of the scheduled freight-only services in Munich were discontinued in 2009, particularly those on long-haul routes.
Traffic figures for commercial airports in Germany Mean annual growth rate MUC
ADV (German Airports Association) excl. MUC
10%
6.4% 5% 3.6%
0% Flown cargo (commercial traffic)
At the same time, the percentage of bellyhold freight – air cargo carried on passenger flights – rose from 80 percent in 2008 to around 87 percent in 2009. This meant that the overall tonnage of bellyhold freight dropped by just 3 percent. Air mail on the decline The air mail segment was marked by unusual events: With the introduction of a new transportation strategy, air mail flights were initially discontinued in August 2009. However, this decision was later reversed, and the postal service began operating night-time mail flights again with a service to Hanover. Against the background of these events, we recorded an overall drop of around 25 percent in the volume of air mail handled. Higher takeoff and landing fees Airport charges increased in 2009, primarily as a result of a structural change to the fee schedule that came into effect on January 1, 2009. The system was changed inasmuch as fees for central infrastructure are now no longer collected separately but are covered instead by regular takeoff and landing fees. In effect, this means that FMG now collects fees on behalf of Terminal 2. As a result of the change, earnings in this category grew by 9.4 percent or €32.1 million, to €374.0 million. This was in spite of negative traffic growth, with passenger numbers down 5.4 percent at 32.7 million and scheduled and charter aircraft movements (including ferry flights) down 7.8 percent at 379,300. The price rise introduced in 2009 did not fully offset the decline in traffic. One factor that had a positive effect on earnings (+ €3.3 million) was the introduction of passenger-dependent PRM charges (levied for services for persons with reduced mobility).
Business divisions
Aviation
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Marketing: Focus on Arab markets In 2009, a difficult year for business, we chose to focus our marketing activities on the Arab countries, one of the few remaining growth markets. Oman Air, one of the Middle Eastern airlines, was our only newcomer in the long-haul segment. The carrier’s market entry proved something of a challenge in that Oman Air was an essentially unknown brand in Germany and neighboring countries. We launched a new project, Gateway Arabia, in 2009 with the specific aim of creating the best possible offering for Arab passengers at Munich Airport and positioning the airport not just as a destination but also as a hub for Mid-East transfer passengers. A number of initiatives have already been introduced to improve the offering for guests from this region in areas like hospitality, retail, signage and airport services.
Other initiatives in 2009 included a new advertising campaign specifically targeting the Arab region in an effort to further extend Bavaria’s market leadership among Arab visitors to Germany; we also exhibited at Bahrain International Travel Expo for the first time, where more than 100,000 visitors, mostly from neighboring Saudi Arabia, acquainted themselves with Munich Airport and its home region. We expect to see higher demand from Arab countries in 2010 and will continue to focus our marketing efforts on this crisis-proof region. Marketing to growth markets When South African Airways chose to expand its services in 2009 by offering daily flights to Johannesburg, Flughafen München GmbH organized a road show in collaboration with the carrier over the summer in Cape Town and Johannesburg to market the additional capacity. The show’s emphasis was
Destinations served by freight carriers in 2009 Scheduled freight services
Courier/express services
Moscow
London Liège Paris
Leipzig / Halle Cologne/Bonn Katowica Frankfurt Stuttgart Munich Budapest Ljubljana
Seoul
Bucharest
Athens Hong Kong Tel Aviv
Bahrain
Delhi
An important destination and hub airport for Arab air travelers
Aviation
Business divisions
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A daily service to South Africa – marketing the additional capacity
on promoting Munich as a starting point for South African ski tourists and on positioning the airport as Europe’s foremost aviation hub. Air Malta was another of just a few airlines to step up the frequency of its services in 2009 and demonstrate valuable growth potential – reason enough for Flughafen München GmbH to exhibit at the AMITEX travel show in Malta for the first time, together with the Munich Tourist Office. Munich Airport has since become the number one transfer airport for the carrier’s passengers from Malta and Catania, superseding Air Malta’s prior gateway, London Heathrow. A wider catchment area Close to 100 of the most important tour operators in Russia, the Ukraine, Georgia, Estonia, Lithuania, Latvia, Poland, the Czech Republic, Slovakia, Hungary, Slovenia, Croatia, Bosnia and Herzegovina, Serbia, Romania, Bulgaria and Albania convened in 2009 to
attend a workshop co-organized by Munich Airport with the goal of developing new product ideas and tour packages capable of encouraging a greater influx of tourists to Bavaria from central and eastern European countries. Flughafen München GmbH also co-organized its fifteenth road show in South Tyrol, Austria and BadenWürttemberg – this time in collaboration with the carriers Egyptair, Spanair, Air Canada, Thai Airways, Aer Lingus and Condor. The primary objectives of the show, which reached an audience of more than 1,200 multipliers in the travel and tourism industry, were to expand our market in the airport’s catchment periphery and to showcase new destinations and new airlines serving Munich Airport.
Long-haul destinations in 2009
Yekaterinburg Calgary Vancouver Salt Lake City San Francisco Los Angeles
Montreal
Tyumen Aktyubinsk
Munich
Toronto Denver Chicago Atlanta
Boston New York Philadelphia Washington Charlotte Orlando Varadero Cancún Puerto Plata La Romana Punta Cana
Sal Boa Vista
Shanghai Hong Kong Bangkok
Male Mombasa
São Paulo
Shenyang Dalian Seoul Busan Tokio
Beijing Sulaymaniyah Amman Dubai Riad Delhi Muscat Doha Jeddah Abu Dhabi Mumbai
Mauritius Windhoek Johannesburg Cape Town
Phuket Singapore
Business divisions
Aviation
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Growing our consulting business In 2009, Flughafen München GmbH again succeeded in extending its consulting activities at the global level, with the result that earnings from its classic Operational Readiness and Airport Transfer (ORAT) consulting package, based on experience acquired during the commissioning of Munich Airport and Terminal 2, grew 50 percent year on year. Our ORAT business alone attracted further new orders worth close to €10 million, including contracts for the relocation of the new Berlin-Brandenburg Airport as well as the startup of new airports in Doha and Qatar and in Durban, South Africa. Other successful projects completed in 2009 included Terminal 3 in Abu Dhabi, the domestic terminal in New Delhi, and Terminal D at Moscow Sheremetyevo.
We also succeeded in widening our consulting business. For instance, Flughafen München GmbH is now providing Bahrain Airport with support in connection with management tasks and is helping Düsseldorf Airport to introduce so-called Airport Collaborative Decision Making (A-CDM). Airport CDM is an operational approach designed to optimize the handling of everything from flight planning to aircraft landings, turnarounds and takeoffs within an end-to-end process framework.
ORAT: FMG consults for airports all over the world
Ground Handling
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Business divisions
Ground Handling
Freight pallets weighing several tons call for the same precise and careful handling as valuable works of art or lightweight vacation luggage. At Ground Handling, we unite high-quality, professional services with the operational flexibility needed to keep connecting times to a minimum, aircraft turnarounds fast and efficient, and airport customers happy. A full-service offering The Ground Handling division and its subsidiaries aerogate, Cargogate, mucground Services and EFM (Gesellschaft für Enteisen und Flugzeugschleppen) operate together as a full-service provider, offering airline companies a comprehensive portfolio of land-side and air-side services at Munich Airport from a single source. These services include aircraft ramp handling, baggage and cargo handling, passenger and crew transports, land-side handling and cargo handling.
Ground Handling: Certification reaffirmed our high quality standards in 2009
Certified quality standards Ground Handling’s core strength lies in its ability to deliver coordinated, interlocking and complex services reliably and to high quality standards. Our work involves supporting ramp-side hub operations at Terminal 2 for Deutsche Lufthansa and its Star Alliance partners, which include United Airlines, US Airways, Air Canada, Air China, Qatar Airways, LOT, Austrian Airlines and Turkish Airlines. In 2009, the long-standing customers we served at Terminal 1 included not just Air Berlin and tourist carriers Condor and TUIfly, but also high-profile airlines like Emirates, Etihad, Saudi Arabian Airlines, Korean Air and Delta Airlines. We also succeeded in winning a new long-haul customer, Oman Air, at Terminal 1. In the cargo sector, several carriers, including DHL, FedEx and UPS, have come to rely on the high standards of service we offer at Ground Handling.
We help to ensure minimum connecting times and rapid turnaround times by delivering flexible, professional and reliable ramp services – the right basis for trusting, enduring and successful partnerships with customer airlines. Driven by a commitment to quality and innovation leadership, our ground handling services in Munich became the first at any airport in Germany to receive DIN EN ISO 2001 certification, back in 1995; we also went on to obtain IATA AHM 804 certification in 2003. We focus on serving the needs of customer airlines, providing high-quality, continuously optimized services based on a mature total quality management system, and developing new products in line with customers’ specific needs and requirements. In 2009, we reaffirmed our commitment to exceptional quality by obtaining recertification to the revised DIN EN ISO 9001:2008 standard. Extensive training programs Our emphasis on making sure that our employees receive a high standard of training is key to our ability to continuously optimize and streamline our service processes. In 2009, Ground Handling and its subsidiaries held 1,111 seminars (54 percent more than in the prior year) for 5,532 attendees (more than twice as many as in 2008), delivering a total of 7,757 attendee-days of employee training. On aver-
Business divisions
Ground Handling
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age, these seminars scored an A grade when rated by recipients, reflecting the consistently high quality of these offerings. Besides regular continued education programs, key areas of training included courses on process optimization and the operation of ramp equipment. Quality assurance and a stable market share We have a comprehensive quality management system in place to monitor service quality, speed and customer satisfaction. This enables us to adjust our processes in line with customers’ needs and to rapidly roll out precisely targeted improvements where necessary. This responsiveness is something customers appreciate. Munich again ranked among the top five international airports in the World Airport
Awards, continuing its run of success in recent years. In 2009, 8.6 million air travelers took part in the award survey conducted by respected London-based opinion researchers Skytrax. This strong result for Munich would not have been possible without smooth and efficient aircraft and baggage handling on the ground. In spite of tough competition at the airport, Flughafen München GmbH’s ground handling business succeeded in commanding a market share of 85.4 percent in 2009. With a workforce of around 2,400 people, the Ground Handling division and its subsidiary mucground handled more than 162,000 aircraft. Due to the general economic crisis, the handling volume was down roughly 9 percent, year on year. More than 140 airline companies chose to source their ground services with us in 2009.
Customers are satisfied with our efficient aircraft and baggage handling
Ground Handling
Business divisions
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Creating competitive conditions and cost structures
Not just the global financial crisis but also the fierce price war in the aviation industry and the massive decline in air fares brought on by low-cost carriers and their cut-price offers continued to heighten the already highly competitive situation and exert pressure on prices in the ground handling sector, just as in 2008. FMG responded by continuing to streamline processes and improve productivity and flexibility.
owned subsidiary with 550 employees. Mucground chiefly specializes in conducting ramp and baggage handling operations. With its competitive cost base and organizational flexibility, the company plays a vital supporting role within the division.
Restructuring efforts continue In 2009 we continued to pursue the restructuring strategy launched in 2005 in an effort to keep Ground Our executive management has stepped up its efforts Handling competitive and to be able to offer services to keep the division within the FMG Group. However, at realistic market prices. Thanks to internal optimizaif we are to succeed in securing all of the jobs in the tion, we were able to improve the division’s overall results. However, the future success of our restrucdivision in the longer term, it is essential that we turing efforts will depend largely on our ability to transform it into a profitable and competitive business unit with rates of pay typical for the industry. If establish a viable long-term competitive framework and cost structures. we cannot succeed in turning Ground Handling into a competitive operation, we may have to withdraw Aerogate: On the expansion track from this area of business. Besides providing passenger handling services, aerogate, a wholly owned subsidiary of FMG, Mucground: Handling and other services is also engaged in a range of other activities at Ground Handling receives extensive, highly efficient Munich Airport. These include running a last-minute assistance in the area of ramp handling from mucground Services Flughafen München GmbH, a wholly travel agency, a IATA ticket agency and the airport lounges, as well as operating the airport’s baggage delivery service and arrival service, and supervising the airport’s ramp areas. In spite of a difficult market environment with three aggressive rival operators competing for business and the ongoing effects of the financial and economic crisis, aerogate succeeded in securing a market share of more than 60 percent in Terminal 1. With its workforce of around 400, the company handled more than 30,000 flights and roughly 2 million passengers in 2009. The company’s customer base in Terminal 1 includes tourist carriers like Air Berlin, TUIfly and LTU as well as more exclusive long-haul customers like Emirates, Etihad, Saudi Arabian Airlines, Korean Air and Delta Airlines. In Terminal 2, aerogate is primarily involved
Business divisions
Ground Handling
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in ticketing and supervision roles for customers like Thai Airways, United Airlines, Qatar and Swiss. Cargogate: A major decline in cargo Cargogate is a wholly owned FMG subsidiary with around 250 employees. It is responsible for cargo handling and storage, documentation, and customs clearance services at Munich Airport. Due to a massive decline in freight volumes triggered by the global financial and economic crisis, Cargogate saw its warehouse inventory levels contract by more than 40 percent. Freight-only services were particularly hard-hit by the collapse in the market, but bellyhold and express carrier tonnages, too, were down significantly. In an effort to weather the decline in its business, the whole of Cargogate’s workforce switched to short-time working on March 1, 2009. Nonetheless, Cargogate succeeded in maintaining a strong position at Munich Airport during the crisis. The company handled around 70,000 metric tons – roughly 40 percent – of the flown freight transshipped in Munich. In addition, Cargogate still has more than 70 percent of the airport’s air cargo customers under contract.
EFM: Strong and efficient performer EFM – Gesellschaft für Enteisen und Flugzeugschleppen am Flughafen München mbH, co-owned by Ground Handling (49 percent) and GGG Service for Airlines GmbH (part of the Lufthansa Group), carries out aircraft pushback and de-icing operations, supplies preconditioned air, and provides a range of training and consulting services. As customers repeatedly reaffirm, EFM and its 120-strong workforce have a strong reputation for exceptional quality of service and cost-efficiency. The company also has effective environmental strategies in place designed to promote sustainable business, and has been certified to ISO 9001 and ISO 14001 quality and environmental management standards. In fiscal 2008 / 2009, EFM conducted around 129,000 pushback and maneuvering operations and de-iced roughly 10,700 aircraft.
Ground Handling and its subsidiaries: Professional, reliable and efficient
Corporate Real Estate Management and Development
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Business divisions
Corporate Real Estate Management and Development
Providing a perfect environment for people to shop, dine and enjoy themselves ensures us high visitor numbers and stable revenue streams. But our attractive mix of retail outlets and extensive choice of places to eat aren’t the only draw: The München Airport Center Forum and the wide variety of events it hosts are a big attraction for air travelers and airport visitors alike.
Sharpening Munich Airport’s appeal
The airport – a place of encounter Besides bringing the big wide world much closer and lifting the boundaries between people, Munich Airport is also a busy place of encounter for visitors and airport employees and a popular location for restaurateurs, retailers, hoteliers and advertisers. However, the needs and expectations of customer groups and partner businesses are shifting constantly, and for Flughafen München GmbH, as the airport operator, creative thinking, dedication, and a sense of responsibility toward our customers are all essential success factors in the corporate real estate sector.
Novotel, part of the French global hospitality group Accor, won the bid to construct the new on-campus hotel, which was inaugurated in early 2010. Besides facilities like a spa area and conference rooms fitted with the very latest technology, the hotel offers guests a shuttle service to either of the airport’s two terminals and the München Airport Center, just a few minutes away. The hotel also has a large car park of its own and direct access to the rapid transit rail line. Demand for overnight stays at Munich Airport is on the rise, not just among business travelers but also among people traveling for pleasure, especially families, so the new hotel is filling a gap rather than competing with the airport’s five-star Hotel Kempinski. Priced in a more affordable category, it perfectly complements the hotel accommodation previously available on campus.
In 2009, a year marked by economic challenges, we remained fully focused on customer needs, rolling out new projects and leases intended to address target groups’ expectations better, optimizing our retail business, and organizing numerous successful events – initiatives all aimed at making Munich Airport an even more engaging and attractive location. Kempinski Hotel to be extended We are also planning to extend the Kempinski Hotel A key addition: The new hotel Airport München, which currently has 343 single and To meet the growing need for overnight accommodouble rooms and 46 suites. The planned extension dation on site, a new three-star-plus, medium-price- to the east wing will consist entirely of rooms for segment hotel with more than 250 rooms has been guests – a further 160 in total. built at the airport – a valuable addition to our extensive service infrastructure. Construction work could begin during the course of 2011, in which case the extension could open
Business divisions
Corporate Real Estate Management and Development
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in 2012 or 2013. It is being designed by the Chicago-based firm of architects Murphy / Jahn, who created the existing Kempinski Hotel and the München Airport Center. Shopping, fine food and fun The retail sector at Munich Airport remained solid in 2009 in spite of the economic crisis, with high standards on a par with and even better than in the past. With retail and hospitality units covering a total area
of more than 35,000 square meters, passengers and airport visitors have a rich and extensive choice of places to shop.
Novotel with 250 beds now open, Hotel Kempinski to be extended
We extended our spa and wellness offering, which already included the Cosmetic Institute and so-called napcabs (rest and sleeping pods), by opening two branches of Be Relax, a French spa chain, which provide services like massages, manicures and pedicures. An additional highlight was the creation of
Corporate Real Estate Management and Development
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More than 35,000 square meters of varied and attractive retail offerings
Pure Brands, a special beauty and skin care zone, designed to appeal primarily to female travelers. Located immediately behind the security checkpoints in Terminal 2, it sells a wide range of upmarket brand products from M.A.C. Cosmetics, Bobbi Brown, Kiehl’s and Jo Malone. Other new additions included stores selling Polo Ralph Lauren’s casual yet elegant range of clothing and the current collection by luggage maker Picard, plus a store operated by Deutsches Museum in Munich, which sells special toys, gift items, books, models and much more. The Lufthansa WorldShop relocated to a larger, specially created new unit bannered “Travel, trends & taste,” where it offers a range of high-quality brand-name travel, life style and sports products. The number-one event in the hospitality sector in 2009 was the opening a new McDonald’s restaurant – at the time, the most modern in the world. Besides the famous burgers and snacks, guests can enjoy specially prepared specialty coffees at McCafé,
check their flight status on the in-store arrivals and departures boards, and print their boarding cards at one of the Lufthansa check-in machines. The McDonald’s drive-in, always popular, is still operating and was given a thorough makeover in 2009. Events in the MAC Forum In 2009, events held in the München Airport Center’s Forum were again the focus of advertisers’ marketing activities. Highpoints included the Airport Beach Weeks and the airport’s eleventh winter market, with its abundantly varied family program and a large artificial ice-skating and curling rink. One new and highly popular initiative in 2009 was Airport Day: The first Saturday of each month is devoted to a special theme – carnival, Easter or the Oktoberfest, for example – chosen to suit the given month. On each Airport Day, we put on a program for visitors featuring exciting events and specials in the airport’s retail stores, plus entertainment especially for youngsters.
Retail space in 2009 Total: 35,324 m² Retail/services: 20,135 m²
Hospitality: 15,189 m²
Air-side retail/services 10,711 m²
Air-side hospitality 4,701 m²
Landside retail/services 9,424 m²
Land-side hospitality 10,488 m²
Business divisions
Corporate Real Estate Management and Development
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Other events in 2009 included a meet-and-greet day for fans of local soccer club TSV 1860 München and a celebration to mark the tenth anniversary of the Edeka supermarket opening at Munich Airport. One particular highlight was a visit by Porsche to the MAC Forum: The Zuffenhausen-based sports car maker chose the venue to launch its brand new Panamera for the world press – and anyone else who happened to be at Munich Airport at the time.
Advertising space on the terminal’s façade In 2009 we introduced a new and revolutionary form of advertising space at Munich Airport which, in terms of sheer scale, thrilled not just advertising professionals but passengers and airport visitors too: the west façade of Terminal 2. This not just the largest contiguous advertising space in the whole of Germany, it also became a prized piece of advertising real estate for major brands like Porsche, Mercedes and Audi and the media group Sky Deutschland AG during 2009.
The airport is a popular venue for promotional events and advertising campaigns
Retail and Services
40
Business divisions
Retail and Services
Everywhere – from shops and restaurants to hotels and car parks – high standards of service make a world of difference. To keep our customers happy and fulfill their wide-ranging needs and expectations, our subsidiaries and their highly dedicated employees focus on delivering quality goods combined with exceptional service. Their results are impressive.
Parking for more than 34,000 vehicles, plus value-added services
Parking and Services: Quality parking, 24 / 7 Our Parking and Services unit operates the parking facilities at Munich Airport – 14 multistory garages and several open-air lots, with a total capacity in excess of 34,000 parking spaces. Its customer base comprises not just air travelers but also airport building tenants and airport employees who park at the airport. The range of services offered includes convenience and secure parking, available in the multistory parking garage P20, plus value-added automobile services, including washing, interior cleaning, and transfers to auto repair shops. Our valet parking, too, is a popular service: Travelers can hand their car over to an airport employee who parks it in a garage of their choice, and when they arrive on their return journey, the car is driven up for them, ready for collection. We also provide XXL parking – extra-wide bays with plenty of space for getting in and out. And lastly, there’s “Park, Sleep & Fly,” a special deal from the Hotel Kempinski Airport München. Bannered “Start your vacation well rested,” this is a package that combines an inexpensive room for a night plus up to eight days of free parking at the airport. Other parking-related services at Munich Airport include the option of making a firm parking reservation online by credit card up to six months in
advance, plus special rates with discounts as high as 48 percent when booking parking through the airport website. A new record: 6.5 million vehicles parked During 2009, around 6.5 million vehicles used the parking facilities at Munich Airport – 1.2 percent more than a year earlier. However, parking stays were generally shorter, resulting is a drop in external parking revenue of 6 percent, to around €62 million in 2009. Allresto: Attractive and innovative hospitality Formed in 1978, Allresto Flughafen München Hotel und Gaststätten GmbH runs around 80 percent of the hospitality operations at Munich Airport. These are organized in separate restaurant, canteen and hotel business units. Restaurants are Allresto’s core business and it runs these itself. They include Airbräu, a Käfer bistro and restaurants, il mondo, Leysieffer, Piazza Monaco, Bamee, Bistro Organic, McDonald’s, and various bars in both terminals, plus the municon conference center. The airport’s five employee canteens and the Hotel Kempinksi are managed by third-party operators – caterers Eurest Deutschland GmbH and hoteliers the Kempinski Group. Through its mixed franchise and license-based model and its own strong brands, Allresto delivers an attractive and innovative hospitality offering to air travelers and visi-
Business divisions
Retail and Services
41
tors at Munich Airport. With its 568 employees (the average headcount over the year), Allresto generated a total revenue of €63.8 million in 2009. Allresto made a number of changes and remodeled several units during the review year to boost their appeal. The Paulaner Bar in Terminal 2, for example, was reconceived and reborn as the Fürst von Metternich Bar, and the coffee garden at the Alfredo Bar in Terminal 1 was redesigned to create a more cozy atmosphere. In addition, the Paulaner Bar in Terminal 2 along with the Coca-Cola and Erdinger Weissbier bars and the Café Alfredo in Terminal 1 were all fitted with redesigned lighting. Allresto is also planning to add a new terrace at the Airbräu pub in Terminal 2.
One major hospitality-sector highlight is the new McDonald’s restaurant with a McDrive and a McCafé, which opened in the München Airport Center in November 2009. Certification and monitoring Environmental performance is a key concern for Allresto, and the company has now been validated under the European Union’s Eco-Management and Audit Scheme as well as the ISO 14001 environmental management standard. Allresto has also been certified as a supplier of organic foods and has been granted the requisite approvals to produce and market its own line of organic goods.
Allresto stands for quality and variety
Retail and Services
Business divisions
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eurotrade sells a highquality range of goods through modern outlets
In addition, Allresto performs regular checks to verify that goods are procured sustainably, that potentially hazardous substances are handled safely, that waste is processed in accordance with sound environmental principles and recycled as far as possible, and that energy is consumed responsibly – through extensive use of power-saving lighting, for example.
Putting customers first As a retail company, eurotrade is committed to meeting customer needs and expectations. This calls not just for an exceptionally dedicated and professional workforce, trained to exacting standards, but also for a high-quality, customer-centric range of goods presented in modern and stylish retail outlets.
eurotrade: High product and service standards The majority of retail outlets at Munich Airport are operated by eurotrade Flughafen München HandelsGmbH. Its primary focus in 2009 remained on delivering high-quality products and a rich variety of brands and on offering passengers outstanding shopping opportunities in the airport’s duty-free and Travel Value stores, fashion, watch and jewelry stores, and newsagent and souvenir shops.
To fine-tune its offering in line with customers’ expectations, eurotrade further expanded its fashion segment, adding a second Hermès boutique, a Polo Ralph Lauren store and an Esprit Collection shop. In the cos-
The overall situation in the economy posed something of a challenge for eurotrade’s businesses at Munich Airport in 2009. However, in spite of the 5.4 percent drop in passenger numbers compared to 2008, eurotrade’s revenues contracted just 3.4 percent year on year. At December 31, 2009, the company had an HR capacity of 775 and reported total sales of €142.4 million.
Sales per departing passenger Retail and hospitality
€15
€13.67
€14.03
€14.45
€14.61
2006
2007
2008
2009
€10 €5 €0
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Retail and Services
43
metics segment, eurotrade introduced Pure Brands, a new style of retail zone showcasing well-known luxury brands at a busy area in Terminal 2; it also widened its overall product portfolio by adding an Optik Air eyewear outlet and a Newspoint Audiobooks store. In addition, a number of outlets, including the Hugo Boss & Ermenegildo Zegna store, were given a facelift to sharpen their appeal.
Airport retail growth (units) Retail / services
Hospitality
250 198
200 150
51
50
147
154
89
100 42
50 0
204
11 31
1992
28 61
1998/1999
2008
2009
MediCare: Healthcare at Munich Airport FMG subsidiary MediCare Flughafen München Medizinisches Zentrum GmbH is responsible for providing healthcare services to air travelers, visitors, and employees at Munich Airport. The subsidiary also runs AirportClinic M, which provides full-service medical treatment to local and international patients. MediCare is co-owned by Flughafen München GmbH with 51 percent and by MAHM GmbH, a company operated by a group of physicians, some of whom are based at Munich Airport, with 49 percent. MediCare restructured internally in 2009, setting up separate business units for its clinic, outpatient services, and corporate healthcare. MediCare currently has a workforce of 67 employees and in 2009 reported total sales of €5.7 million.
MediCare: Healthcare services for travelers, visitors and employees
Terminal 2
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Business divisions
Terminal 2
With an expanded route network and additional frequencies on long-haul services, Terminal 2, our joint project with Deutsche Lufthansa, continues to set standards as an international hub – not just with its world-beating minimum connecting time, but also its superb retail offerings and first-rate dining.
Strategic partnership Our Terminal 2 division comprises Terminal 2 Betriebsgesellschaft mbH & Co oHG, the company responsible for operating the passenger terminal. The company is co-owned by Flughafen München GmbH and Deutsche Lufthansa AG, with respective holdings of 60 percent and 40 percent, and represents the first instance worldwide of an airport operator partnering with an airline company to share the entrepreneurial responsibility for constructing and operating a piece of airport infrastructure. LH and FMG: Jointly responsible for operating Terminal 2
Terminal 2 Betriebsgesellschaft does not function in a production capacity as such; instead, its two corporate parents provide services on its behalf. Other services needed in connection with marketing and operating the building are bought in, mainly from FMG. The subsidiary’s task is to coordinate and integrate services, to optimize processes, and to develop new ideas and strategies. One terminal, many advantages Joining forces to build and operate Terminal 2, which is used exclusively by Lufthansa, its group companies and, above all, other Star Alliance members, brings important benefits for both FMG and Lufthansa. Besides having the use of a passenger building designed from the ground up to handle international hub operations, the carrier can also guide and shape the facility’s future development. For FMG, the terminal has created considerable additional air-
craft and passenger-handling capacity, and secured a long-term commitment to its airport from Germany’s largest airline – a commitment that will help to drive and sustain future growth. Terminal 2 offers a minimum connecting time of just 30 minutes (unmatched among international airports), is a well structured and user-friendly building, and has an extensive range of retail and hospitality outlets. A rich and attractive non-aviation offering Terminal 2’s outstanding non-aviation portfolio comprises 88 retail and service outlets (26 in the public area and 62 in the restricted area) plus 20 bars, cafés and restaurants (seven in the public area and 13 in the restricted area). In 2009, this portfolio was further enhanced and refined through new additions and redesigns. The Lufthansa WorldShop, with its select yet extensive assortment of high-quality brand-name travel, lifestyle and sporting goods, moved to a new, central location in the check-in hall with more than double the floor space. In addition, a new Deutsches Museum store opened in October, at a location close to the security checkpoints. Here, air travelers and airport visitors can purchase a variety of gift items, including a selection of games. On the arrivals level, a new Subway restaurant opened, serving a wide choice of fresh sandwiches and snacks.
Business divisions
Terminal 2
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The terminal’s restricted area now has four new, highly fashionable shops offering a range of skin care and cosmetics products by Bobbi Brown, M.A.C. Cosmetics, Jo Malone und Kiehl’s, plus service with a personal touch. Fashionable and exclusive footwear and accessories from Swiss shoe company Navyboot and high-end casual wear from Polo Ralph Lauren further enriched the retail offering in the Schengen departure area 2009.
In the non-Schengen area, a chic Hermès boutique and a new Picard shop selling an extensive selection of high-quality leather goods and practical travel bags opened in 2009. And to make transfers and waits for flights a more pleasant experience, the area also has a new Be Relax spa where travelers can enjoy a soothing massage plus a range of wellness and cosmetics treatments.
Terminal 2 has an unparalleled minimum connecting time of just 30 minutes
Terminal 2
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Terminal 2: Exclusive stores and smart spa facilities
Services to Dubai, New York and Tel Aviv During the 2009 summer timetable season, Lufthansa further expanded its network of routes from Munich. Besides launching a new daily service from Munich to Lviv in west Ukraine, the carrier also added second daily frequencies to Bilbao in Spain and to Cluj in Romania. Lufthansa also stepped up frequencies in the short- and medium-haul segment on routes to London Heathrow (with eight flights a day), Palma de Mallorca (twice weekly), Cologne/Bonn (ten flights a day) and Paderborn (four flights a day). Lufthansa also added four frequencies a week on its Tel Aviv route, which it serves with widebody Airbus A340 long-haul jets. In addition, the airline increased the frequency of its long-haul flights to New York John F. Kennedy with Airbus A330 aircraft to two a day and began offering six additional business-jet flights a week
from Munich to JFK from mid-May to mid-July. This boosted the carrier’s total weekly flights to New York to 20. During the 2009 summer season, Lufthansa also began offering daily flights with widebody jets to Dubai again for the first time since the summer of 2004. Overall, 27 carriers operated regular services to 116 continental and 24 intercontinental destinations from Terminal 2 during the review year. New rooftop passageway opens Following the opening of Terminal 2’s new rooftop passageway in the middle of January, which enables passenger streams to be strictly segregated in compliance with European Union requirements for airports in EU member states, we continued the process of modifying jet bridges at Terminal 2 to provide direct access to the new passageway. By the middle of April, work on four bridges had been finished, bringing the number completed up to 16 of 24 in total at the terminal.
Business divisions
Terminal 2
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Lower energy consumption and carbon emissions In line with Flughafen München GmbH’s wider sustainability strategy, Terminal 2 Betriebsgesellschaft set up an energy working group. Its task was to identify ways to optimize energy performance and to reduce related carbon emissions at Terminal 2 without impacting on building users’ comfort and convenience. During 2009 we implemented the working group’s ideas and recommendations extensively, with the result that we succeeded in bringing down our power, heating and cooling energy consumption by around 10,000 megawatt hours compared to 2008
– and this in spite of an overall increase in energy requirements due to the new rooftop passageway and the need to ventilate smokers’ lounges. As a result, Terminal 2’s carbon emissions were around 4,500 tons or 10 percent lower than a year earlier. Terminal 2 Betriebsgesellschaft has again set ambitious environmental targets for 2010. We aim to reduce our power consumption and our carbon output by a further 5 percent compared to 2009.
Cutting carbon emissions, but not at the expense of comfort
Munich
Istanbul
Safeguarding the future. Transport arteries sustain modern civilization. They create the connections that enable cultures to grow closer together and open up boundless new opportunities for people and businesses. Today, sustainable mobility is key. Which is why we’ve made sustainability, in all its aspects, a core focus of our business.
About us
About us 50
Sustainability Expanding the airport infrastructure Aviation and climate change Communications and regional relations Personnel
About us
Sustainability
Sustainability
51
To make sustainable use of resources we need intelligent infrastructures, and we’re determined to create them. We’ve elevated sustainability to a core principle across all our business units at Flughafen München GmbH and have enshrined it in our new mission statement: By 2015 we aim to be one of the most attractive, efficient and sustainable hub airports in the world. Beyond environmental responsibility In today’s business world, sustainability has long since ceased to be a purely environmental concept. Climate and environmental stewardship remain essential elements in any sustainability strategy, but there are other factors too that are no less important. A defining characteristic of companies committed to sustainability – organizations like the FMG Group – is their ability to successfully balance their business, environmental, social and societal goals. A cornerstone of corporate strategy The FMG Group’s corporate policy addresses a full gamut of sustainability criteria. This is because our aim is to protect and strengthen the foundations of our business in the long term and, by operating our airport successfully, ensure that we can safeguard not just mobility but also Bavaria’s quality and appeal as a location, now and in the future. At FMG we understand that we need to pursue key sustainability initiatives – like protecting the climate and the environment, developing our human resources, and building strong collaborative relationships with partners in our home region – if we are to remain a success in the long run. This is why we have fully embraced the principle of sustainability as part of our corporate strategy.
Mission 2015: Setting standards In light of this, and because we want to be a leading sustainable business within our industry, sustainability is a core principle in our new mission for the period through to 2015: By 2015 we will be one of the most attractive, efficient and sustainable hub airports in the world. The pursuit of sustainable business practices is thus a core objective for each of our business units. This will give us an important competitive advantage within our industry and will enable us to set standards, not just within Europe but worldwide as well.
Sustainability is central to our 2015 mission
Sustainability
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Strategic sustainability goals The company framed a number of sustainability objectives at a special management workshop in 2008. These objectives informed and defined a number of targets, outlined below, that our company units are now implementing on intermediate and longer-term timelines as part of our strategic sustainability program. In terms of the company and governance, our strategic sustainability objectives are as follows: to sustain value creation through a yield-driven business model and continued investment in our location; to achieve greater customer focus and to build a more attractive product and service portfolio; and to establish management structures that foster responsible corporate leadership. Gradually implementing our sustainability objectives
Our objectives in the area of environmental and climate protection are company-wide expansion of our environmental management system; resource efficiency and reduction of emissions and other impacts; and carbon-neutral growth.
Objectives with regard to our workforce and work environment encompass advancing employees’ knowledge and skills; promoting a performancedriven corporate culture; increasing our attractiveness as an employer; and improving efficiency in our human resource management processes. Our social and stakeholder management objectives are to embrace social responsibility and to develop in partnership with our region. Unified sustainability management The entity responsible for sustainability management within the FMG Group is the Corporate Development and Environment division. Its core tasks are to unify the wide range of sustainability activities within the organization and to deliver transparent internal and external communications on sustainability. Given that numerous sustainability projects are conducted at Group level, we set up a Group-wide panel staffed by people from five divisions: Human Resources, Finance and Controlling, Corporate Development and Environment, Engineering and Facilities, and Corporate Communications. The panel makes fundamental decisions on sustainability projects and reports directly to executive management. Top rating for our first sustainability report In 2009, the FMG Group published its first ever sustainability report. Titled Perspectives, the 110-page document details our concept for sustainable business. The report was prepared in accordance with the third and most recent set of guidelines issued by the Global Reporting Initiative (GRI). The GRI reviewed the report and awarded it a top rating. This made Munich the first airport in Europe to issue a report that satisfies all GRI Application Level A criteria.
About us
Sustainability
53
Materiality matrix
– Career training
– Facilitation of global mobility
– Better integration with mass transit systems
– Reduction of environmental footprint
– Collaboration with home region
– Stakeholder dialogue and communications
Importance for stakeholders
Very important
– Continuous value creation
– Supplier management
– Co-determination – Risk management and anti-corruption initiatives (compliance)
– Airport development and demand-driven capacity expansion – Customer satisfaction and feedback management – Competitive operating structures – Energy efficiency and resource conservation – Safety and security
– Regional sponsorships
Important
– Collaboration with academic institutions
– Cultural diversity in the workforce
– Conservation – Industrial health and safety
– Promotion of employee sustainability awareness
– Political stance and participation in organizations
– Health management
– Sustainable building
– Continued education and HR development
– Waste management – Water and wastewater – Handling of hazardous substances
Important
Very important
Importance for Flughafen München GmbH
A matrix of core topics The report, which we plan to publish on an annual basis from now on, highlights each of our strategic sustainability objectives and covers the primary focuses of company sustainability policy. It also includes a materiality matrix, prepared according to
GRI reporting guidelines, that indicates the priorities assigned to key sustainability issues and their individual importance, both for the company and for its main stakeholder groups. The matrix highlights the core topics covered in the report and charts the course we are pursuing with our sustainability activities.
Prioritizing core sustainability issues
Expanding the airport infrastructure
54
About us
Expanding the airport infrastructure
A hub airport operating at its capacity limits on a near daily basis is a hub airport incapable of responding flexibly and efficiently to growing global demand for mobility. If we’re to sustain and secure continued traffic growth at Munich Airport, we need to build our third runway.
Meeting global mobility needs As globalization continues to gather momentum and today’s international business environment becomes more and more interconnected, meeting society’s growing need for mobility is becoming an increasingly important task, particularly for a leading European hub like Munich Airport. Expanding the airport to meet tomorrow’s traffic needs
Despite this need, the turbulence caused by the global economic slowdown in 2008 and 2009 had a sizeable impact on the international aviation industry. Now, though, economic experts and research organizations concur that there has been a resurgence in Germany’s economy since mid-2009 and, based on current economic forecasts, the trend looks set to continue in the years ahead. With the worst of the recession over, global demand for mobility is on the ascent again, air traveler numbers are growing, and there are clear indications that we are entering a period of steady long-term growth. As this trend unfolds, it’s crucial for Munich Airport to create the requisite conditions to support and sustain a resurgence in air traffic and to be ready to serve tomorrow’s transportation needs efficiently. To ensure that the airport has the capacity to accommodate tomorrow’s air traffic, Flughafen München GmbH on August 24, 2007, submitted an application for the zoning approval required in order to build a third runway.
About us
Expanding the airport infrastructure
55
Third runway needed now The airport has needed a third runway to handle dayto-day operations for a while now: At peak times, we are already operating at our capacity limits. With our current two-runway system, we can only schedule around 90 takeoffs and landings an hour, but airlines have already submitted requests to the airport coordinator for 110 slots.
Capacity bottlenecks and a lack of available takeoff and landing slots are now a part of everyday operations in Munich. The addition of a third runway would boost capacity to at least 120 aircraft movements an hour, giving us the headroom we need to accommodate anticipated traffic growth through to our current planning horizon of 2020 / 2025. The new runway, to be built at the site known as “5b”, will be 4,000 meters
A third runway is crucial to meeting our capacity target of at least 120 takeoffs and landings an hour
Expanding the airport infrastructure
About us
56
long like its two predecessors, and located at a distance of 1,180 meters from the airport’s north runway (center to center), with a threshold offset of 2,100 meters. This will allow it to operate independently of the other two runways.
Passenger volume (million) Growth and projected demand up to 2025
58.2
60 All three runways can operate independently
49.8
48 41.7 36
32.7 23.1
24 12
12.0
0 1992
2000
2009
2015
2020
2025
Source: Flughafen München GmbH (April 2010) Intraplan Consult GmbH: Baseline variant
Aircraft movements (total traffic, thousand) Growth and projected demand up to 2025
590
600 536 471
480 397 360 240
319 192
120 0 1992
2000
2009
2015
Source: Flughafen München GmbH (April 2010) Intraplan Consult GmbH: Baseline variant
2020
2025
The South Bavaria Aviation Office, a department of the regional government of Upper Bavaria, verified the application documents submitted by Flughafen München GmbH and initiated the zoning approval process required under aviation law on October 9, 2007. The application documents were made available for public scrutiny and a review procedure was initiated, during which the regional government received some 140 written statements from bodies representing public interests, plus around 60,000 objections to the project from private individuals. These were all forwarded to Flughafen München GmbH, which examined and responded to them in full by September 30, 2008. Concerns and positions reviewed in detail Once the objections raised had been processed, the zoning authority responsible for approving the airport operator’s application held 59 days of statutory hearings in the period from November 11, 2008, to March 31, 2009, during which the concerns and positions of affected citizens, government agencies, bodies representing public interests, and other entities were discussed and the plans for the runway and its impacts were assessed. As a result of the numerous technical issues raised during the review process as well as the current economic and financial climate, Flughafen München GmbH also had to respond to numerous additional inquiries to underpin and augment the contents of the zoning approval documents in the period immediately following the review. The key points included air traffic forecasts, a review of the quality of these forecasts (commissioned by Upper
About us
Expanding the airport infrastructure
57 The satellite (foreground) planned to augment capacity at Terminal 2
Bavaria’s regional government and conducted by Hamburg-Harburg Technical University’s Institute of Traffic Planning and Logistics), a new technical noise survey required in the wake of amendments to aviation noise legislation, and issues relating to the landscape conservation plan. Since the conclusion of the review process, the regional government has been assessing the documents and statements submitted, preparatory to issuing its zoning approval decision. Sustaining efficiency The aim behind our plans to upgrade capacity at Munich Airport and expand the facility in line with demand is to ensure that the kind of highly efficient airport infrastructure is in place that we need in order to safeguard future aviation demand and our location’s valuable advantages in the longer term. Given our third runway’s importance in terms of securing a competitive future for Munich and Bavaria in the aviation industry, we hope to open it as soon as possible.
A satellite to augment Terminal 2 Besides additional runway system capacity, Munich Airport also needs to create new so-called contact stands (aircraft parking positions at terminal buildings) as well as passenger handling resources if it is to continue to process hub-and-spoke traffic efficiently in the years ahead. To accomplish this, we’re planning to build a satellite to augment capacity at Terminal 2. This new passenger handling building is to be erected on the east apron and connected to the terminal via an underground transportation system. The satellite, a joint project by FMG and Lufthansa, is not a new terminal in its own right, but rather a functional extension to Terminal 2. It will be equipped with 27 contact stands and will boost the terminal’s passenger handling capacity by 11 million. Exploratory planning for the new structure was completed last year, and the project has now progressed to the design stage. We hope to complete construction phase one and open the new building in 2014 or 2015.
Planned location for the third runway (preferred variant “5b” in the airport’s northeast sector)
Aviation and climate change
58
About us
Aviation and climate change
Airports, together with other players in our industry, need to work to improve international aviation’s environmental performance. Our options range from creating more efficient infrastructures to using alternative fuels and engaging in comprehensive programs to conserve energy. Our long-term goal at Munich Airport is carbonneutral growth.
Airports, airlines, ATC and policymakers all want to reduce aviation’s climate impacts
Improving aviation’s environmental performance Flughafen München GmbH (FMG) has introduced a catalog of climate and environmental initiatives aligned with wider, global efforts aimed at reducing aviation’s ecological footprint. Although aviation currently accounts for just 2 percent of global carbon emissions, the International Air Transport Association (IATA), the Airports Council International (ACI) and other international organizations have set tough targets in an effort to reduce the industry’s climate impacts. One key goal is to cut aviation’s specific fuel consumption by an average of 1.5 percent annually through to 2020. If this succeeds, it will mean that aviation can achieve carbon-neutral growth from 2020. In addition, by 2050 the industry aims to reduce its carbon emissions by 50 percent compared to 2005 levels on a like-for-like basis. If these efforts to reduce aviation’s impacts on the world’s climate are to succeed, all industry players – airports, airlines, air traffic control agencies and policymakers – will have to pull in the same direction. At the same time, we can only accomplish our objectives by creating efficient infrastructures and sustainable buildings, by leveraging technological advancements (to enable the use of alternative fuels and energy systems, for instance), by optimizing resource consumption through strategies like continuous descent approaches (CDA) or the use of pre-conditioned air (PCA), and by applying economic levers like emissions-based landing charges.
Target: Carbon-neutral growth by 2020 Although we expect traffic to continue growing, we are determined not to allow those carbon emissions over which we as a company have control – around 160,000 metric tons annually, at present – to increase through to 2020 in comparison with baseline figures for 2005. Were we not to take action of any kind, we could expect these carbon emissions to be between 50,000 and 70,000 tons higher by 2020. To prevent this, FMG has mapped out a rigorous carbon-saving strategy coupled with a group-wide program of measures to conserve energy. One of the focuses of this program is on sustainable construction. Through more extensive use of sustainable energy sources, we aim to cut all our new buildings’ carbon emissions by around 40 percent compared to those of our existing structures. Our biggest project in this context is the Terminal 2 satellite, currently at the planning stage. In addition, we intend to optimize the insulation and energy efficiency of existing airport buildings in line with the current state of the art. We are also reducing the amount of energy consumed by the apron lighting at Munich Airport. As of mid-2009, we began using a computer- and timetable-driven system to control roughly a quarter of our almost 3,000 floodlights based on levels of daylight. By only switching on the floodlights when they’re needed, we expect to save around a million kilowatt hours of power and avoid roughly 570 tons of carbon emissions.
About us
Aviation and climate change
59
Pilot project: The solar air-conditioning system for the cargo terminal canteen
Pilot project: Energy-saving solar air-conditioning In April 2009, we began using an energy-saving solar air-conditioning system to cool the employee canteen at our cargo terminal. To date, this pilot project is the only one of its kind at a European airport. The system takes in warm air from outside the building and dries it by means of a salt solution. Once dried, this air is then cooled to a comfortable 21 degrees Celsius by a heat exchanger and used to cool the employee canteen. To sustain the cycle, the air extracted from the canteen is re-cooled with cascading cold water, and the salt used initially to dry the intake air is itself dried with heat extracted from warm water produced in 76 square meters of solar collectors installed on the roof of the cargo building.
ally equipping all of our jet bridges with compact air-conditioning systems that are hooked up to the airport’s supply network. Going forward, we aim to use these systems to feed aircraft parked on terminal stands with cool or warm air, depending on the season. Once we have upgraded all of our contact stands with these systems, we expect to achieve annual carbon savings as high as 14,000 tons – the equivalent of the average annual output of around 1,000 typical households.
Flughafen München GmbH has now created a webbased database system for tracking reductions in carbon emissions that conforms to Greenhouse Gas Protocol guidelines. Staff in units throughout our organization compute the carbon reductions accomplished through the measures we implement and When the canteen does not need cooling, the warm record the details in the database. We also track all water from the solar collectors is used to heat both of the carbon emissions from other sources on the the building and the building’s service water. The sys- airport campus so that we can work out our annual tem helps protect the environment by saving around carbon footprint in detail, complete with a break25 tons of carbon emissions a year compared to a down of Scope 1, 2 and 3 emissions. conventional air-conditioning system. A new approach method: “Idle” descent Cutting carbon with pre-conditioned air One way for aircraft to reduce carbon emissions is Parallel to its own projects, FMG is also helping to use a continuous descent approach (CDA), a more airlines to use energy more efficiently. One innovaenvironment-compatible approach method which we tive energy project involves supplying aircraft parked trialed at Munich Airport in 2009. With CDA, pilots at contact stands with pre-conditioned air (PCA) leave the aircraft engines at idle speed for as much rather than have them running their own climate of the descent as possible. The result is a continucontrol systems while on the ground. We are graduous descent which can result in kerosene savings of
Several carbon reduction projects are already in progress at Munich Airport
Aviation and climate change
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60
between 50 and 150 kilograms plus carbon savings of between 160 and 470 kilograms per approach, depending on the aircraft type, the distance covered and the weather conditions. Under ideal circumstances, CDA can also have a positive impact on aviation noise.
Raising employees’ awareness for environmental and social responsibility
ous sound pressure level of more than 60 dB(A); seven stations recorded levels between 55 and 60 dB(A); and nine registered levels below 55 dB(A).
To put this in perspective, in 2000, a year with 320,000 aircraft movements – almost 80,000 fewer than in 2009 – five measuring stations recorded a Sustainability training: Motivating employees continuous sound pressure level of between 55 and Given that carbon emissions are caused primarily 60 dB(A), and 11 measured levels below 55 dB(A). by the consumption of energy, the success of any This means that in spite of the significant increase energy-saving strategy depends to a large degree on in the volume of traffic over the years, just two meaemployee buy-in and behavioral change. We addressed suring stations recorded levels in the higher band. this in 2009 by holding sustainability trainings for employees designed to raise awareness and foster The incidence of individual noise events in excess of a sense of responsibility toward the environment and 70 db(A) dropped 5 percent year on year to around society and to encourage our people to embrace and 337,400. Compared to 2008 and to 2000 (a year with actively support our environmental efforts. significantly less traffic), events in excess of 85 dB(A) only occurred twice rather than three times a day on Aviation noise levels are unchanged average in 2009. As a result of the drop in the number of aircraft movements year on year, none of our 16 fixed measuring We conducted 12 mobile aviation noise measurestations at Munich Airport recorded a continuous ments in the airport’s surrounding area in 2009 – one sound pressure level higher than levels registered in less than in 2008. These measurements covered 2008. At nine of the stations, there was zero change 412 days in total. Over the years, demand for mobile in the levels compared to a year earlier, and seven measurements has increased: In 2000, for example, stations recorded levels that were 1 db(A) lower than we only conducted seven mobile measurements. in 2008. None of the stations measured a continu-
About us
Aviation and climate change
61
In 2009 the mean nighttime continuous sound pressure level of 50 dB(A) was not exceeded at any point where aviation routes intersect with the noise abatement zone, and the airport only used up 56 percent of its allotted noise quota, just as in 2008. Airborne pollutants remain at prior-year levels Levels of nitrogen oxide and particulates recorded in 2009 were broadly similar to those registered in prior years – in other words largely in the low-to-middle range. The mean level of nitrogen dioxide, the most important traffic-related pollutant, recorded at our main measuring station during the course of the year was 29 micrograms per cubic meter – close to the levels of 29 – 34 micrograms per cubic meter measured in 2004 – 2008.
The main measuring station for airborne pollutants is located immediately to the east of the airport; the second measuring station is in the west and, again, extremely close to the airport. The levels measured here averaged 27 micrograms per cubic meter, compared to 24 – 31 micrograms per cubic meter in 2004 – 2008. In the case of particulate matter (PM10), the mean annual level was 20 micrograms per cubic meter. The mean levels for 2004 – 2008 ranged from 17 to 28 micrograms per cubic meter.
Carbon-neutral growth Rise in carbon emissions without abatement measures, assuming continued growth/investment, and based on overall energy requirements for buildings and installations on airport campus Potential target curve for carbon-neutral growth based on overall energy requirements for buildings and installations on airport campus Rise in carbon emissions without abatement measures, assuming continued growth/investment as per Scope 1 (airport’s direct emissions from energy production and transportation) and Scope 2 (airport’s indirect emissions from consumption of energy) Potential target curve for carbon-neutral growth as per Scope 1 and Scope 2 CO2 / kt 250 200 150 100 50 0 2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
Aviation noise and airborne pollutants at prior year’s levels
Communications and regional relations
62
About us
Communications and regional relations
In our various roles – as an airport operator, employer and neighbor – we believe in open and reliable communication with customers and partner businesses, our local communities and the public at large. We’re also a committed corporate citizen, engaging in numerous projects in areas like youth sport, culture, social welfare and education.
Three awards for the FMG Group’s annual report
Munich Airport in the media spotlight Given the economic turbulence throughout the aviation industry, the media followed developments at Munich Airport with particular interest in 2009. Flughafen München GmbH (FMG) reported in detail on current events concerning the airport, issuing around 200 press releases plus press photos. We also organized press meetings on the company’s sustainability strategy, hub strategy and other major airport issues, and assisted numerous domestic and foreign journalists writing stories on Munich Airport.
informed, first-hand, about events and developments at the airport forms a key area of our communications work. In 2009, our primary vehicles for this purpose, as in prior years, were our newsletters MUC life, M Dialog, and Flughafen Report, a program of brochures and flyers, FRonline (FMG’s electronic newsletter), and the airport website and corporate intranet. One key publication in 2009 was our sustainability report which, in spite of being our first effort, immediately scored an “A” rating from the Global Reporting Initiative (GRI).
The airport’s expansion plans – above all, its preparations for a third runway – generated considerable interest once again in 2009. Members of the media followed the public hearings held in connection with the zoning approval process particularly closely. Through our communications work, we succeeded in promoting a positive perception of Munich Airport among the public at large and in helping the media to understand the importance of Munich Airport as an economic driver and core piece of national transport infrastructure.
FMG’s annual report collected no less than three international awards in 2009: In the APEX Awards for Publication Excellence, an international competition for communications professionals, it was honored in the Annual Reports category; it won silver in the Galaxy Awards, an international competition for excellence in product and service marketing; and it picked up a coveted Vision Award in the Annual Report Competition of the League of American Communications Professionals (LACP).
Publications win top ratings and awards Keeping Munich Airport’s passengers and visitors, neighboring communities, the interested public, and the FMG Group’s employee base thoroughly
Partnering with our region Our ability to collaborate successfully with others in a wide range of fields and to work closely with neighbors on joint projects in a spirit of mutual trust plays an essential role in the airport’s integration
About us
Communications and regional relations
63
within its home region. In 2009, the airport’s regional relations officer and his team continued to foster close ties and forge strong working relationships between Flughafen München GmbH and neighboring districts and communities. Our goal with these efforts is to ensure that we consistently create winwin situations that benefit local communities, local people, and our airport in equal measure.
In spite of the economic crisis, FMG continued its support for numerous associations, institutions and projects in the Erding and Freising area. Unlike other organizations, which were forced to scale back their sponsorship programs, FMG supported 502 projects in total – roughly a hundred more than in 2008 – in such areas as youth sport, the arts and culture, social welfare, and education. Besides continuing our long-
Communications and regional relations
About us
64
In 2009 FMG sponsored 502 projects in the airport’s local region
standing sponsorship of events like the Erding Jazz Festival and the Freising Summer Drama Festival, we also supported several new projects in 2009, including a hospice association founded recently in Erding to provide local palliative care, and the Dellnhauser Folk Music Festival.
Payouts through the regional support fund Although the zoning approval procedure for the airport’s third runway is still in progress, FMG has already made initial payments toward local projects out of its regional impact fund. In coordination with the Communities Council, a body formed in 2005 to
About us
Communications and regional relations
65
promote information-sharing and dialogue in connection with the airport’s expansion program, the company announced it would set up a €100 million impact fund to provide compensation for exceptional burdens and hardships arising through the construction of the third runway. The fund has already committed two €5 million tranches – one toward the construction of Erding’s north bypass and another toward Freising’s west expressway, both infrastructure projects of major importance for the region. To date, an initial sum of €106,500 has been paid out for the planning of the Erding’s north bypass – sufficient to cover the costs in full without the need for taxpayers’ money.
Stepping up our regional marketing efforts In 2009, we continued to work closely and intensively with the Erding and Freising administrative districts and city councils to market our local region through “Airfolgsregion Erding-Freising,” the initiative we launched jointly in 2005. Besides exhibiting at several trade shows to promote the region as a vacation destination and business-friendly location, the initiative also hired its first employees, a move that will enable it to operate more effectively and to step up its activities on behalf of the region.
Sponsorships in 2009: €425,127 for 502 projects By category
Sport €140,328 33.0 %
Education €58,391 13.7 %
Social welfare €116,385 27.4%
Culture €110,023 25.9%
Working with neighbors to promote the region as a vacation destination and business location
Personnel
66
About us
Personnel
As one of Bavaria’s major employers and vocational training providers, we appreciate the strategic importance of human resources development and its role in shaping the success and the future of our entire organization. We therefore seek to train and advance our employees wherever we can and to be a family-friendly employer.
The FMG Group’s employee base contracted slightly
Weathering the economic crisis The continuing global financial crisis in 2009 left its mark on our human resources, just as it did in other areas. However, in spite of the drops in passenger numbers and aircraft movements, the impact on our HR capacity was relatively minor. We managed to avoid actively shedding headcount, and only one of our units – our subsidiary Cargogate, which serves the especially hard-hit air freight segment – had to resort to short-time working.
In total, the FMG Group had 7,366 employees at December 31, 2009 – 307 fewer than at the end of the previous fiscal. In light of the economic crisis, most FMG companies largely avoided replacing natural wastage; a number of our subsidiaries, however, actually had to increase their headcounts.
HR capacity down slightly At December 31, 2009, Flughafen München GmbH had a total of 4,421 employees – 2 percent or 103 fewer than in 2008 – from 51 different countries. To keep costs down, we began reducing vacation Just as at other companies in the Group, this drop backlogs and overtime and were able to reverse occurred through natural wastage, and people leavaround 50 percent of the financial reserves formed to cover these obligations. Flughafen München ing the company were only replaced in exceptional GmbH’s employees, with their support for these instances. At yearend, 4,190 employees had unlimmeasures, played a crucial role in protecting our busi- ited contracts; women made up 18.2 percent of the ness and helping to safeguard jobs at the company. FMG workforce; and the average employee age was
Breakdown of Flughafen München GmbH personnel costs (€ million)
Wages and salaries (including travel expenses and meal subsidies) Social security levies, costs of retirement plans and related benefits Total personnel expense
2009
2008
174.4
177.4
48.1
49.4
222.5
226.8
About us
Personnel
67
42.7 years. Our mean, cost-relevant HR capacity contracted from 3,941 employee years in 2008 to 3,819 in 2009. FMG’s personnel expense totaled €222.5 million in 2009 – down €4.7 million year on year, largely as a result of the drop in human resources capacity.
of Applied Sciences in Frankfurt/Main, launched in collaboration with other aviation-sector service businesses in 2006, was able to send off its first graduates in August 2009.
Careers orientation In 2009, FMG organized its sixth “Berufsfit” careers orientation show at Munich Airport, an event to help In 2009 FMG again shared its profits with its workyoung people in the region identify a suitable future force in the form of a performance bonus based on trade or career track. Eighty companies looking to the company’s results in 2008. As in the prior year, take on trainees, plus several schools and universiremuneration included a component determined by ties, exhibited at the event, presenting more than personal merit – in other words, bonus payments 280 school and career training and qualification proreflected individuals’ personal performance and grams. The show attracted around 10,000 visitors. achievement of targets. Another example of our activities in this area is our involvement in the “Arbeitskreis Schule-Wirtschaft A leader in vocational training Freising-Erding-Flughafen,” a local business and With 266 vocational trainees in 2009, the FMG Group education working group that promotes networking remains one of the region’s foremost career trainbetween schools, companies and trades businesses ing centers. In September 2009, 79 school-leavers in the region. embarked on vocational training programs and workstudy programs with us. Besides vocational training International exchange programs in classic trades, we also offer a number of new and International networking, too, is an important focus innovative training tracks – in event management, for for us. For example, we are actively involved in Airport example – plus work-study programs culminating in a HR Net Europe, a body that promotes the developBachelor of Science degree (in business IT) or Bachment of efficient and innovative HR management elor of Arts degree (in aviation management). tools, and we participate in Europe’s Leonardo da Vinci education and cultural program. The latter is Flughafen München GmbH’s Bachelor of Arts in a two-way exchange program through which vocaAviation Management program at the University tional trainees and employees at Munich Airport can
An attractive employer and popular vocational training provider
Personnel
About us
68
spend time working at European partner airports like Vienna, Malta, Lisbon, Rome and Athens, and vice versa. We also collaborated closely with two sister airports, Central Japan International (Centrair) and Denver International in 2009, operating exchange programs and holding workshops for management-level employees.
An award for familyfriendly HR policy
Family-friendly employers In 2009, FMG subsidiary mucground was audited by berufundfamilie gGmbH, a non-profit organization devoted to professional and family concerns, and received an award in recognition of its familyaware human resources policy and initiatives to ease balancing careers with family life. Another FMG subsidiary, Aerogate, received its third certificate from the same organization, and parent
company FMG, which was first audited by berufundfamilie gGmbH in 2007, conducted a number of workshops in late 2009 in preparation for re-auditing. Focus: Leadership development One focus of our HR development initiatives at FMG in 2009 was to consult with managementlevel employees and carefully evaluate their leadership potential. The outcomes of these systematic assessments and evaluations, which are designed to provide high potentials with the greatest possible support in their daily work, created the foundations for an onward leadership development program in 2010. We also organized workshops and team trainings for managers in FMG subsidiaries, and conducted
About us
Personnel
69
several assessment centers throughout the FMG Group to select and groom candidates for future managerial posts. The work of an employment advancement circle, set up as a pilot project in 2007 to prepare high potentials for management roles, came to an end in 2009 and concluded with a wrap-up event at which we reviewed the outcomes and benchmarked our performance against other airports.
The Academy’s program also included statutory aviation security training for all employees with access to the airport’s restricted areas as well as basic and onward training for aviation security officers employed by CAP Flughafen München Sicherheits GmbH. In the area of aviation training, which alone accounted for more than 10,000 attendee-days, the main focus was on providing basic training to new aircraft handlers working for mucground Services Flughafen München GmbH.
Reviewing and updating employee qualifications Given the constant changes in markets and customer requirements, it’s crucial that we regularly review our employees’ qualifications and offer them the opportunities they need in order to develop and advance their knowledge and skills in line with current needs. We do this through the Munich Airport Academy, which delivers an extensive range of tailored training and education programs. New additions to our training offering in 2009 in the area of human resources and management included walk-in seminars for self-paced training on industrystandard office software, a modular program on Munich Airport’s project management procedures (MAP), information seminars on how to reduce carbon emissions, and training on updated business administration methods. These additional courses resulted in a rise in the number of attendee-days of training delivered to 21,277 in 2009, from 17,384 in 2008.
In appreciation of their services and with sorrow we remember the following colleagues who passed away in 2009. They will be sadly missed by their fellow employees. Joseph Hirsch Korbinian Heilmeier Barbara Sagmeister Peter Fitz Friedo Bernert Thomas Scheidler
† February 26, 2009 † March 11, 2009 † April 29, 2009 † November 1, 2009 † December 12, 2009 † December 21, 2009
Developing and advancing our employees and leaders
Munich
New York
Setting directions. Cities, with their dense diversity, have consistently inspired new thinking and driven trends and innovation in everything from business and finance to art and culture. By networking the cities of the world, we bring people, markets and continents closer together and promote progress and mutual understanding.
FMG consolidated financial statements 2009
FMG consolidated financial statements 2009 72
Supervisory board’s report Amended consolidated management report Amended consolidated balance sheet Amended consolidated income statement Amended consolidated cash flow statement Amended statement of changes in consolidated equity Amended annex to the consolidated financial statements Independent auditor’s report
FMG consolidated financial statements 2009
Supervisory board’s report
Supervisory board’s report
The supervisory board was informed regularly and in detail by executive management through written reports and at meetings about the company’s situation, its development, and important business events. On the basis of the reports and the information received, the supervisory board monitored the management of the company’s business and made such decisions as it was called upon to make in accordance with its statutory responsibilities. The year-end accounts as at December 31, 2009, and the consolidated management report on Flug hafen München GmbH and its group of companies presented by executive management have been audited and approved by Susat & Partner OHG, the appointed auditors. Having conducted its own review, the supervisory board accepts the auditors’ findings and raises no objections. In accordance with Section 42a, Paragraphs 2 and 4 of the Limited Liability Companies Act (GmbHG) and Section 171, Paragraph 2 of the Stock Corporations Act (AktG), the board approves the yearend accounts of Flugha fen München GmbH and the FMG Group. The supervisory board proposes that the shareholders endorse the yearend accounts of Flughafen München GmbH and the FMG Group.
In fiscal 2009, Councilor Dr. Reinhard Wieczorek, Otto Siegl and Ralf Krüger stepped down from the supervisory board. The board would like to thank them for their expert and committed service to the company. The supervisory board also wishes to express its gratitude and respect for the work carried out and the successes achieved by the company’s executive management and employees in fiscal 2009.
Munich, July 30, 2010
Flughafen München GmbH The supervisory board Georg Fahrenschon Chairman
73
Amended consolidated management report for 2009
74
FMG consolidated financial statements 2009
Amended consolidated management report for 2009
The object of the Flughafen München Group is to operate Munich Airport and to engage in ancillary lines of business. The FMG Group comprises Flughafen München GmbH and 13 subsidiary companies. Activities and organizational structure Munich Airport is one of Europe’s biggest hub airports and currently ranks seventh in Europe based on total passenger movements. For the purposes of handling air traffic, Munich Airport has two modern, highly efficient terminals and two runways, each 4,000 meters long, that are capable of operating independently. Flughafen München GmbH, Munich Airport’s operating company, engages in both aviation and non-aviation business. Key areas of its non-aviation business are retail and real estate management and development; these essentially comprise retail and hospitality operations, real estate planning and construction, airport parking and related technical services, information technology, security, and general services. Flughafen München GmbH is organized functionally in central, business and support divisions. The business divisions operate and generate revenues independently within their respective markets, whereas the support divisions primarily operate internally and provide the business divisions with professional expertise and specialized services. The central divisions are responsible for the overall control of the airport.
General economic environment and situation in the industry The major factor defining the global business environment in 2009 was the economic and financial crisis – the largest since 1945. According to recent forecasts, the recession appears to have bottomed out, and the global economy should see a return to growth in 2010. After dramatic declines in traffic in 2009, the German Airports Association (ADV) has reported an upward trend in passenger and air cargo demand in 2010. Like other airports, Munich Airport saw demand drop off sharply in 2009, most prominently in the business travel segment, which contracted rapidly, prompting carriers to reduce their numbers of routes and service frequencies in domestic and European networks. By contrast, demand and traffic in the intercontinental market at Munich Airport remained flat, at the prior year’s high level. This had a stabilizing effect overall in fiscal 2009. The steep decline in traffic registered in the year’s first six months began to ease in the third quarter, and by the final quarter volumes had steadied off at roughly the same level as in 2008, indicating that the worst was over. We expect to see demand increase further as 2010 progresses, though growth is likely to remain muted. In fiscal 2009, carriers operated air services on a regular basis to a total of 235 destinations in 69 countries. The number of transfer passengers as
FMG consolidated financial statements 2009
Amended consolidated management report for 2009
75
a proportion of the total passenger volume grew slightly year on year, to 37.0 percent. This renewed gain in our transfer volume is a clear sign that Munich Airport’s importance as an aviation hub is increasing. To drive and sustain our hub-and-spoke traffic and capitalize on growth opportunities in this segment, Munich Airport urgently needs a third runway. The process of zoning approval for the new runway is now at an advanced stage, and we expect it to be granted by the end of 2010. Business trends and earnings Munich Airport’s total passenger movements in 2009 were down by 5.4 percent year on year, at 32.7 million. This sizeable drop in traffic, a direct result of the ongoing global financial and economic crisis, was spearheaded by a rapid cooling of demand for business travel that a concurrent marginal gain in private travel was unable to offset. The number of business travelers as a percentage of the total passenger volume dropped six percentage points to 45 percent, whereas the number of private travelers grew to 55 percent. In an effort to curb continuing high losses in our Ground Handling division, Munich Airport’s executive management has been working closely with the labor unions and the works council for some time to find a solution for overcoming the division’s structural disadvantages compared to competing ground services operators. Given that negotiations have failed to reach a successful outcome and the
fact that a number of contracts for the provision of handling services have been terminated, there is a risk that FMG could gradually lose significant market share in this area. In an effort to end the division’s loss-making situation, we now intend only to conclude handling contracts on terms that enable Ground Handling to cover costs. On account of the inconclusive state of negotiations and the foreseeable loss of market share, the company formed a reserve of €111.4 million for the division in fiscal 2009. In light of the economic crisis and the slower rates of traffic growth that we expect to see in its wake, we reviewed and adjusted our economic plan for the year during the summer of 2009 to address the effects of the negative business growth in fiscal 2009. The revised plan assumed a decline in passenger numbers and an attendant drop in revenue and earnings of 4.9 percent. Based on passenger numbers, Munich Airport ranked seventh among Europe’s leading aviation hubs in 2009, successfully retaining its prior-year position. The drop in the number of transfers – 3 percent – was significantly less than the overall drop in passenger numbers. As a result, transfers as a percentage of total passenger movements were higher in 2009, up 1 percentage point compared to 2008, at 37 percent. The number of takeoffs and landings in the commercial and non-commercial segments in 2009 was down 8.2 percent year on year, at 396,805. This drop was significantly steeper than the decline in the number of passenger movements because airlines combined flights and started serving routes
Amended consolidated management report for 2009
FMG consolidated financial statements 2009
76
with larger aircraft in order to cut costs. The mean maximum takeoff mass of aircraft operating in Munich increased from 66.1 to 68.2 metric tons. The cargo sector was hit much harder by the economic crisis than the passenger sector. In 2009 the volume of cargo handled at Munich Airport slipped to 229,095 tons, down 30,550 tons or 11.8 percent on 2008. This sharp fall in cargo was consistent with the wider situation in the goods transportation industry throughout Germany which, according to figures released by the Federal Statistical Office, shrank 11.2 percent in 2009.
Significant other operating expense and interest, less the reserve formed for the restructuring of Ground Handling, accounted for €219.1 million or 19.8 percent of total pre-tax costs. Our financial income result improved by €37.4 million to negative €86.9 million in 2009, from negative €124.3 million in 2008 (including €43.5 million in interest on shareholder loans, compared to €10.4 million in 2009). This improvement year on year was due primarily to a €36.7 million decrease in interest expense. Depreciation across the Group totaled €124.9 million.
Group net sales in fiscal 2009 totaled €981.3 million, down 6.0 percent year on year, as the general decline in traffic impacted significantly on both aviation and non-aviation earnings. The changes in Group sales and earnings are reviewed below in the sub-section headed “Group business activities.” Materials expense in 2009 was €18.7 million or 6.5 percent lower compared to a year earlier, at €268.2 million. Reductions in human resources capacity at a number of units within the Group, as well as efforts to reduce overtime backlogs and flextime credit, brought personnel expense down €4.8 million year on year, to €309.3 million. Our accounts for fiscal 2009 include a reserve formed in connection with the need to restructure the Ground Handling division. This is reported as an extraordinary charge of €111.4 million.
The FMG Group generated a net loss of €1.4 million in fiscal 2009. Group business activities The FMG Group’s various businesses are assigned organizationally to Aviation, Ground Handling, Retail and Services, Corporate Real Estate Management and Development, and central and support divisions Aviation and Ground Handling The Aviation and Ground Handling divisions are responsible for handling all of Flughafen München GmbH’s air traffic. All of the FMG subsidiaries involved in handling air traffic are assigned organizationally to these divisions. Due to the decline in traffic in fiscal 2009, sales in this segment were down 7.0 percent on 2008, at €511.9 million. Earnings after taxes totaled negative €70.2 million. A significant extraordinary factor in this result was the formation of a reserve for the restructuring of Ground Handling.
FMG consolidated financial statements 2009
Amended consolidated management report for 2009
77
Sales in Aviation and Ground Handling were €38.8 million lower year on year, driven down by the drop in the volume of traffic and intense competitive pressure in the ground services marketplace. Retail and Services Units assigned to this division are the FMG subsidiaries eurotrade Flughafen München Handels-GmbH, Allresto Flughafen München Hotel und Gaststätten GmbH and MediCare Flughafen München Medizinisches Zentrum GmbH, as well as Flughafen München GmbH’s parking business. Eurotrade operates 76 retail units with a total floor space of 12,554 square meters. In 2009, its net sales dropped by 3.4 percent to €142.4 million, from €147.4 million a year earlier. Given the 5.4 percent decline in passenger traffic, the company’s sales per passenger were both stable and positive. Allresto is responsible for the airport restaurants, canteens and hotel. The overall fall in passenger numbers plus massive curbs by businesses on booking conference and hotel facilities caused sales to plunge 14.0 percent to €63.8 million in 2009. As air traffic declined, so did parking fee revenue, contracting 5.1 percent or €3.5 million in 2009 to €63.1 million. In fiscal 2009, the entire Retail and Services division generated €269.9 million in sales, down 4.0 percent on 2008. Aggregate EAT totaled €21.7 million.
Corporate Real Estate Management and Development This division is essentially responsible for marketing the real estate needed to operate the airport. It contributed €170.5 million in sales and an EAT of €46.8 million to the Group’s overall result. Support and central divisions These divisions fulfill a supporting role that enables the Group’s various different units to operate profitably and efficiently and to serve their customers effectively. They unite expertise and information across the entire Group. They also develop strategies, recommend courses of action, and provide services to the whole of the Group. In 2009 they contributed €29.0 million in sales and an EAT of €0.3 million to the Group’s overall result.
Amended consolidated management report for 2009
FMG consolidated financial statements 2009
78
Asset and capital structure December 31, 2009
December 31, 2008
€ million
%
€ million
%
0.1
0.0
0.1
0.0
Assets Unpaid contributions to capital stock Intangible assets
2.9
0.1
3.4
0.1
Tangible assets
2,782.8
94.3
2,821.0
95.2
Financial assets Fixed assets
3.8 2,789.5
0.1 94.5
3.1 2,827.5
0.1 95.4
Inventories
65.0
2.2
65.0
2.2
Receivables
75.5
2.6
64.1
2.1
Liquid assets
17.4
0.6
5.5
0.2
157.9
5.4
134.6
4.5
3.6 2,951.1
0.1 100.0
2.3 2,964.5
0.1 100.0
Capital stock
442.1
15.0
443.6
15.0
Shareholder loans
491.9
16.7
491.9
16.6
Long-term debt
1,483.9
50.3
1,437.1
48.5
Short-term debt Total assets
533.2 2,951.1
18.0 100.0
591.9 2,964.5
19.9 100.0
Current assets Prepaid expenses and deferred charges Total assets Capital
Total assets in comparison with December 31 of the prior year were €13.4 million lower at €2.951 billion. The reasons for this drop in total assets are explained below. Group fixed assets were down €38.0 million year on year at €2.789 billion. Depreciation totaled €124.9 million, compared to asset additions of €90.5 million. Additions of €88.1 million to tangible assets mainly fell into two categories: plots of land, and construction in progress and advances on fixed assets. The additions essentially consisted of land purchases
in connection with the project to build the airport’s third runway. The €723 thousand increase in financial assets, to €3.783 million, is the result of an atequity valuation of associated companies included in the consolidated financial statements. Current assets increased by €23.3 million in total in 2009, but year-on-year changes varied from asset class to asset class: Trade receivables and other assets grew €11.4 million, and liquid assets rose by €11.9 million. Inventories, however, were unchanged year on year.
FMG consolidated financial statements 2009
Amended consolidated management report for 2009
79
The change in equity of negative €1.5 million is the result of Group net losses for the year to the same amount. Shareholder loans remained at their prioryear level of €491.9 million. Compared to the prior fiscal, accruals in 2009 were €83.8 million higher at €309.5 million. This was largely the result of the formation of the reserve for the restructuring of our Ground Handling division. By contrast, accruals formed for anticipated losses were €30.4 million lower in total than in 2008. The FMG Group’s liabilities in 2009 totaled €1.682 billion, down €116.6 million in comparison with the prior year. Liabilities of €43.5 million to the corporate parent’s shareholders in loan interest from fiscal 2008 were paid back in full. However, new interest of €10.4 million on shareholder loans accrued in 2009. Liabilities to banks were reduced by €64.6 million to €1.558 billion, out of cash flow. Trade payables in 2009 were €17.5 million lower than in 2008. However, liabilities to associated companies were €1.2 million higher, at €1.6 million. The rise in this class of liabilities is largely due to an increase in services purchased from EFM. Financial situation Cash flow from operations, most of which originated from the Group’s corporate parent, provided sufficient financial resources to ensure the Group’s liquidity at all times during fiscal 2009. The Group’s companies are all part of a cash pool formed for financing purposes. Capital spending in fiscal 2009 was funded entirely through operating cash flow. In addition, the Group further reduced the size of its bank debts.
Risks The FMG Group’s system of risk management is designed to identify and gauge potential risk facing the enterprise and covers all of its operational and strategic business processes. Risks are assessed based on the likelihood of occurrence and on quantification of the scale of impact in the event of an occurrence. The primary goal of risk management is to take a controlled approach to risk and to define preventive measures to avoid it. All risk information is processed internally on a quarterly basis to enable executive management and division heads to respond swiftly and effectively to shifts in risk scenarios. When the need arises, management responds immediately to new or changing risk situations. The latest risk reports are also made available to the members of the supervisory board on a regular basis. To ensure thorough observance of laws and ordinances as well the company’s own internal rules and guidelines, FMG’s executive management took steps to firmly embed compliance principles into business processes and the Group’s general corporate and management culture during the past year. Compliance is a fundamental part of business integrity and central to managing our business sustainably. We are continuously refining the code of business conduct and principles of legally compliant and ethical employee behavior that we first published in 2008. FMG’s management is also working closely with in-house auditors to reframe existing rules more precisely, to introduce new standards, and to monitor compliance with these rules and standards.
Amended consolidated management report for 2009
FMG consolidated financial statements 2009
80
To minimize possible financial damage, the FMG Group has insurance for appropriate amounts covering key areas of potential loss and liability.
Our security subsidiary faces legal proceedings that could entail back payments of taxes and social security contributions. This presents a degree of risk inasmuch as FMG has issued a declaration of backing for the subsidiary in order to avert a potential balance-sheet insolvency. It is impossible at this time to predict the outcome of the proceedings.
In 2009, the restructuring of our Ground Handling division and attendant issues were rated as a significant internal risk for FMG and scrutinized in detail as part of our reporting process. Restructuring has been underway at the division for several years Financial risks, including risks issuing from various now; however, it continued to make a loss in 2009 in financial instruments (derivatives, and the managespite of major progress on restructuring. ment of receivables, liabilities and financial assets) are reviewed at regular intervals and assessed with The most significant external risk identified in 2009 regard to current price changes and to default and was the cooling of the economy. This increased liquidity risks. Derivative financial instruments are in scale as the year progressed. The effects on now only employed as an interest rate and curFlughafen München GmbH were tracked and rency risk hedge, and require the express approval reviewed in our risk reporting. Additional external of executive management. The total hedge amount risks assessed – with a low likelihood of occurrence is set at FMG Group shareholder meetings. but a potentially severe economic impact – included acts of terror, natural disasters, air accidents and Opportunities and growth projects their consequences, and the loss or impairment of Now that the overall economic climate has the airport’s ability to function as a hub. improved significantly and there has been a noticeable increase in demand in the aviation sector, the Other risks, such as possible industrial action, the outlook for continued hub traffic growth at Munich discontinuation of operations or the reduction of Airport in the intermediate and longer term looks service frequencies by airlines, the loss of market promising. To make the most of the opportunities share to competing ground services operators, or for growth that are emerging, the airport urgently the migration of passengers to regional airports needs a third runway. We expect the current zoning were also taken into account in our system of risk process to result in a grant of approval during the management. course of 2010. This will enable us to systematically advance the expansion programs that are crucial to Besides the possibility of efforts to turn our our airport’s continued development. Ground Handling division not succeeding, which would impact substantially on FMG’s future growth Regardless of current forecasts, future scenarios as a business, we can identify no further risks to and the traffic growth projected for the decades continuity. ahead, the airport already needs a third runway
FMG consolidated financial statements 2009
Amended consolidated management report for 2009
81
now. Our present capacity with our two-runway system, which allows us to schedule 90 takeoffs and landings and hour, is by no means sufficient to cover airlines’ current needs. Munich Airport is already operating at the limits of its capacity, and carriers could readily use as many as 110 slots for as much as eight to ten hours a day if they were available. Besides additional runway capacity, Munich Airport also needs more contact stands at terminals and more passenger-handling resources in order to accommodate its growing hub traffic. To address these needs, we are planning to build a satellite on the east apron as an extension to Terminal 2 in collaboration with Lufthansa. The satellite will be connected to the terminal via an underground people moving system. Preliminary planning was completed in 2009, and the project has now progressed to the design phase. In its initial form, the satellite will provide us with 27 additional contact stands and the capacity to handle a further 11 million passengers annually. With the opening of the Accor group’s new Novotel hotel in May 2010, a facility in the medium-price segment with around 250 rooms, the airport now has additional overnight capacity on campus for air travelers besides the Kempinski Airport Hotel. Strategy and sustainability Munich Airport ranks as one of Europe’s foremost aviation hubs. The FMG Group’s success as an enterprise is the result of its ability to operate efficiently, to sustain business momentum and to focus rigorously on profitable growth.
The airport’s ratings in worldwide customer surveys (by Skytrax) are an affirmation of our business strategy. Like many other companies, though, FMG is also aware of its responsibilities as a corporate citizen and works to unite its business success with sound environmental practices (the sustainability principle). In many areas, the Group already operates in line with the principle of sustainability. One important milestone in this context was FMG’s first sustainability report, published in 2009. The sustainability report gives equal coverage to the company’s environmental and business performance and its social and societal initiatives, and underscores FMG’s commitment to sustainability as a foundation for continuous and viable long-term development. Covering the 2008 fiscal year, the report contains sections on the company and governance, environmental and climate protection, the workforce and work environment, social and stakeholder engagement, and the airport’s region and local communities. It provides a clear and transparent account of a wide range of sustainability activities and measures conducted in the review year, and describes various initiatives aimed at achieving our strategic sustainability targets. For the FMG Group, sustainability is nothing new. Active environmental protection, the growth and advancement of our employees and leaders, and engagement with our neighboring communities and surrounding region have all been fundamental to our corporate policy for many years now. As the report clearly shows, dialogue with stakeholder groups is also of exceptional importance for us.
Amended consolidated management report for 2009
FMG consolidated financial statements 2009
82
Sustainability today is a core objective of the FMG Group and has a firm place in our corporate strategy. In 2008, for example, we set ourselves the target of achieving carbon-neutral growth from 2020, taking 2005 as our baseline year. Keeping our carbon emissions flat in spite of plans to expand the airport may be an ambitious goal, but we have defined an extensive catalog of internal measures aimed at protecting the environment and cutting our energy consumption and costs. One initiative is to ensure that carbon emissions from our new buildings are around 40 percent below those of our current buildings; another is to optimize heat insulation and energy efficiency at existing structures on the airport campus. Human resources In spite of the impacts of the economic crisis and an 8 percent drop in the number of takeoffs and landings at Munich Airport, the FMG Group managed to avoid shedding headcount. However, in January 2010, our Ground Handling division lost a major customer and a significant share of the ground services market. Back in 2005, Flughafen München GmbH had contracts to provide around 90 percent of ground services, but in 2011, our market share will drop to just 65 percent. Another airline company has also announced plans to purchase at least a quarter of its handling services from a third-party operator. Due to our lack of a competitive cost base in the ground services sector, we assume that Ground Handling will continue to lose market share. However, negotiations are continuing, and our aim is to implement a competitive cost structure by 2011,
not least in an effort to preserve jobs. Nonetheless, the loss of share means that the airport will have to reduce its headcount by around 500 people in 2010. During the past fiscal, we continued to implement and advance our comprehensive program of occupational health management. In recognition of these efforts we again received an award, this time in November 2009, from the firm of consultants TG LifeConcept GmbH in association with Bavaria’s social welfare ministry. With this award, Flughafen München GmbH now ranks as “the fittest company in Bavaria.” We also expanded our family and careers project within the FMG Group. Now titled “befamily! 2013,” the project aims to help employees balance their jobs and family life even better than before. To this end, we defined a raft of specific measures, and these will be tracked continuously by berufundfamilie gGmbH, a not-for-profit organization devoted to professional and family concerns. In 2009, the FMG Group kept up its citizenship initiatives to promote training and education in the region in spite of the economic crisis. These included organizing “berufsfit,” a careers orientation show for school students at which numerous businesses in the surrounding area presented their training offerings for school-leavers. In the area of employee training, our primary challenge in 2009 was to instruct our entire workforce on aviation security and related legal requirements. The training was delivered partly through webbased media and partly through classroom tuition
FMG consolidated financial statements 2009
Amended consolidated management report for 2009
83
(for those employees who do not work at personal computers), and succeeded in reaching close to 100 percent of the workforce.
government, the official body responsible for issuing the requisite zoning approval, has now received an expert report prepared by the Hamburg Institute of International Economics (HWWI), which includes Notable events after the end of fiscal 2009 forecasts concerning the overall development in As a result of a court ruling issued on May 28, 2010, the economic situation. The purpose of this report certain parameters applied in valuating the reserve is to help assess the extent to which the current formed for our Ground Handling division may be economic crisis will impact on the economic data reappraised for reasons of comparability. Although framework on which the demand forecast for the we have appealed against this ruling and have third runway is based. sought remedial action, executive management elected to amend the 2009 yearend financial state- HWWI’s researchers state in the report that Germents – in spite of the fact that these had already many’s economy has moved back into a phase of been reviewed and fully approved by the appointed growth that will continue in the years ahead – an auditors on May 21, 2010 – and to re-valuate the assessment consistent with those issued by other reserve for Ground Handling on the grounds that leading economic research organizations. All three the ruling has potentially significant implications for scenarios presented in the HWWI report point to a it. The size of the reserve was adjusted accordingly steady upward trend through to 2020 and a positive to €111.4 million. outlook through to 2025. In the report’s baseline scenario, the one HWWI’s experts consider to be Outlook the most likely, Germany’s economy will grow at With its current two-runway system, Munich an annual rate of 1.3 percent, on average, between Airport is no longer in a position to cover airlines’ 2005 and 2010. This already takes into account demand for slots in peak periods, which means negative growth of 5 percent in 2009. This means that lengthier waits for aircraft at runway heads are that growth in the next few years will likely be now unavoidable. Back in 2005, FMG’s shareholdhigher accordingly – 1.7 percent on average from ers approved plans to build a third runway in order 2009 to 2020. to redress the foreseeable capacity problems we would encounter with the two-runway system. In addition, a discussion of the potential impact of future increases in oil prices shows that this Flughafen München GmbH will pursue a course is a factor that will only influence demand for air of strategic expansion aimed at enabling Munich transport services to a limited degree. Since the Airport to participate in the aviation-sector growth opening of Munich Airport in May 1992, the price of predicted for the years ahead. Our key expanoil has risen 215 percent and has not caused passion project at present is the construction of the senger numbers to drop. On the contrary, the numairport’s third runway. Upper Bavaria’s regional ber of air travelers at Munich Airport has increased by roughly 170 percent over the same period.
Amended consolidated management report for 2009
FMG consolidated financial statements 2009
84
The findings published in the new expert report have been incorporated into calculations conducted by traffic forecast specialists Intraplan to model future aviation-sector growth. Their calculations have confirmed the fundamental level of aviation demand that we aim to meet by expanding our facilities. However, based on the new HWWI forecast data, traffic will likely not reach the volume originally predicted for 2020 until a few years later – probably 2024 or 2025.
To be ready and equipped for the business and financial challenges associated with our expansion program and to address the impacts of the global financial and economic crisis, Flughafen München GmbH has launched JUMP, a new program to improve earnings. JUMP’s aim is to optimize revenue, expense and costs in order to boost the FMG Group’s earning power and create the solid financial foundation we need to fund future expansion projects internally.
We expect that the Upper Bavarian regional govern- Now that the project to build a Transrapid maglev ment will grant zoning approval for the third runway rail link between Munich Airport and the city’s Central Station has fallen through, we have stepped up before the end of 2010. other efforts to improve the airport’s transport conBesides additional runway capacity, Munich Airport nections. An expert review commissioned by the Bavarian Ministry for Economic Affairs, Infrastrucalso needs more contact stands at terminal buildture, Transport and Technology has addressed the ings and more passenger handling resources in need to create a high-speed link to downtown order to process hub traffic efficiently in the years Munich as well as connections to the national ahead. To meet these requirements, we are plantransportation infrastructure, including, in the lonning to build a satellite to expand Terminal 2’s ger term, the country’s mainline rail network. The capacity. The satellite is a separate passenger hanprimary priorities are to provide a high-speed rail dling facility, to be located on the east apron and link to Munich’s Central Station, to add a connecconnected to the current terminal via an undertion via a second commuter rail artery, and to comground people moving system. Preliminary planning for the new structure was completed in 2009, plete the Erding circle line. The state government, and the project is now in the design phase. Accord- the Bavarian parliament and Munich city council have all now approved the proposed solutions, paving to current plans, the satellite, in its initial form, ing the way for project planning and negotiations should be completed and ready to go into service with the federal government on project financing. in 2014 or 2015.
FMG consolidated financial statements 2009
Amended consolidated management report for 2009
85
Given the signs of economic recovery, we expect to see renewed growth in passenger numbers in fiscal 2010. During the 2010 summer season, our offering of flights will expand to include services to Singapore, Tokyo and a daily flight to Newark (near New York City). Other new destinations in the summer timetable include Miami, Teheran and Tashkent, all served by Lufthansa. The carrier is also stepping up frequencies on its routes to South Korea and Tirana. As of May 2010, Munich Airport has a new 250-room, medium-price-segment hotel operated by Novotel to complement the Kempinski Airport Hotel and provide additional on-site overnight capacity for air travelers. Based on cautiously optimistic forecasts, we expect a return in the near future to rates of growth typical for Munich Airport in recent years.
We expect the improvement in the overall economic environment during 2010 to remain muted and assume that passenger traffic will only recover slowly as a result. In our business plan for 2010, we estimate that passenger movements will increase by 3.4 percent. In light of the gradual economic recovery anticipated, we expect to report a profit in fiscal 2010.
Munich, July 9, 2010
Dr. Michael Kerkloh Walter Vill
We are still in negotiations with employee representatives and airlines about the future of our Ground Handling division. Although the framework conditions remain difficult, executive management and FMG’s shareholders are keen to find a solution that will enable the division to continue operating, albeit in a reorganized, restructured and smaller form.
Thomas Weyer
Amended consolidated balance sheet
86
FMG consolidated financial statements 2009
Amended consolidated balance sheet as at December 31, 2009
Assets € A. Outstanding contributions to subscribed capital
Dec. 31, 2009
2008
€
€ thousand
110,249.25
110
B. Fixed assets
I. Intangible assets 1. Franchises, intellectual property, and similar rights
2. Advances on tangible assets
2,918,699.42
3,203
0.00
155 2,918,699.42
3,358
II. Tangible assets
1. Land, rights similar to land, and buildings, including buildings
2. Technical equipment and machinery
3. Other equipment, plant and office equipment
46,102,026.06
45,754
4. Construction in progress and advances on fixed assets
85,744,816.08
114,692
III. Financial assets
1. Investments in associated companies
2. Other loans
2,330,829,579.72
2,305,422
320,158,683.68
355,169
2,782,835,105.54 3,375,226.13
2,821,037 2,558
408,007.98
502 3,783,234.11
3,060
2,789,537,039.07
2,827,455
C. Current assets
I. Inventories 1. Substitute plots of land
2. Raw materials and supplies
3. Finished goods and goods for resale
II. Receivables and other current assets 1. Trade accounts receivable
2. Receivables from associated companies
3. Other current assets
III. Liquid assets
34,358,908.17
34,124
5,880,085.30
5,271
24,750,813.09
25,563 64,989,806.56
D. Prepaid expenses
44,891,133.75
64,958 42,005
152,489.48
1,151
30,440,485.59
20,952 75,484,108.82
64,108
17,383,215.35
5,484
3,595,355.31
2,346
2,951,099,774.36
2,964,461
FMG consolidated financial statements 2009
Amended consolidated balance sheet
87
Liabilities and equity €
Dec. 31, 2009
2008
€
€ thousand
A. Equity
I. Subscribed capital
306,776,000.00
306,776
II. Capital reserves
102,258,376.24
102,258
III. Earnings reserves 7,983,900.23
7,984 15,109
Other reserves
IV. Consolidated net profit
13,576,640.98
V. Minority interests
11,480,706.45
B. Shareholder loans
11,429 442,075,623.90
443,556
491,912,735.89
491,913
C. Accrued liabilities
1. Pension accruals
13,807,114.00
2. Tax accruals
40,717,353.00
43,284
3. Other accruals
255,023,291.24
169,285
13,121
309,547,758.24
225,690
D. Liabilities
1. Liabilities to shareholders
2. Liabilities to banks
3. Trade accounts payable
4. Liabilities to associated companies
5. Other liabilities
E. Deferred income
10,405,246.14
43,492
1,558,454,908.37
1,623,079
43,075,094.67
60,588
1,578,998.23
372
69,054,450.30
71,609 1,682,568,697.71
1,799,140
24,994,958.62
4,162
2,951,099,774.36
2,964,461
Amended consolidated income statement
88
FMG consolidated financial statements 2009
Amended consolidated income statement for the period from January 1 to December 31, 2009
€ 1. Net sales 2. Other capitalized labor, overheads and material 3. Other operating income
2009
2008
€
€ thousand
981,293,070.62
1,043,691
8,792,088.37
8,720
64,421,136.96
50,875
1,054,506,295.95
1,103,286
4. Material expense a) Supplies and raw materials
- 139,336,067.28
b) Purchased services
- 128,837,632.13
- 143,236 - 143,679 - 268,173,699.41
- 286,915
5. Personnel expense a) Wages and salaries b) Social security, pension costs and support
- 246,932,958.11
- 250,667
- 62,390,811.35
- 63,440
of which pension costs €17,254,810.96 (2008: €16.781 million) - 309,323,769.46
- 314,107
6. Depreciation, amortization and write-downs on intangible assets and property, plant and equipment, and on capitalized startup and business expansion expenses
- 124,868,345.86
- 124,400
7. Other operating expense
- 251,163,475.29
- 231,729
- 953,529,290.02
- 957,151
100,977,005.93
146,135
8. Income from investments in associated companies
1,412,072.51
997
9. Other interest and similar income
1,336,920.58
1,108
10. Interest and similar expense
- 89,664,704.39
- 126,427 - 86,915,711.30
- 124,322
11. Income from ordinary activities
14,061,294.63
21,813
12. Taxes on earnings
- 5,474,955.29
- 6,923
13. Other taxes
- 1,859,020.43
- 1,191
14. Losses absorbed under profit-and-loss transfer agreements
- 8,174,264.00
- 9,657
15. Consolidated net loss (2008: net income)
- 1,446,945.09
4,042
16. Minority interest in consolidated net result 17. Transfers to retained earnings 18. Consolidated profit carried forward 19. Consolidated net profit
- 85,743.15
- 46
0.00
- 141
15,109,329.22 13,576,640.98
11,254 15,109
FMG consolidated financial statements 2009
Amended consolidated cash flow statement
Amended consolidated cash flow statement for fiscal 2009
89
2009
2008
€ million
€ million
- 1.4
4.0
124.9
124.4
Increase in medium- and long-term accruals
74.0
33.1
Income from closing a constant maturity swap
- 4.7
0.0
192.8
161.5
Financial resources
Consolidated net income Depreciation, amortization and write-downs on fixed assets and on capitalized startup expenses
Cash earnings according to DVFA/SG Increase in short-term accruals
9.8
14.9
Profit (2008: loss) from the retirement of assets (on balance)
- 0.3
0.1
Increase (2008: decrease) in inventories, trade receivables and other assets not booked under investment or financing activities
- 6.2
6.2
Decrease (2008: increase) in trade payables and other liabilities not booked under investment or financing activities
- 31.1
31.8
Cash flow from operating activities
165.0
214.5
Proceeds from the sale of noncurrent assets Capital expenditure Expenditure on short-term, non-bank cash investments Cash flow from investment activities Proceeds from closing a constant maturity swap Payments to minority shareholders
1.0
7.1
- 87.6
- 121.4
- 6.5
0.0
- 93.1
- 114.3
4.7
0.0
- 0.1
0.0
Proceeds from financing loans
0.0
10.0
Repayment of financing loans
- 64.6
- 121.1
Cash flow from financing activities
- 60.0
- 111.1
11.9
- 10.9
5.5
16.4
17.4
5.5
Change in cash and cash equivalents Cash and cash equivalents at start of period Cash and cash equivalents at end of period
Amended statement of changes in consolidated equity
90
FMG consolidated financial statements 2009
Amended statement of changes in consolidated equity
Parent company
Minority shareholders
Subscribed capital
Capital reserve
Consolidated retained earnings
Equity
Minority capital
Consolidated equity
€
€
€
€
€
€
At Jan. 1, 2008
306,776,000.00
102,258,376.24
19,090,184.95
428,124,561.19
11,533,451.51
439,658,012.70
Other changes
0.00
0.00
6,760.00
6,760.00
- 6,760.00
0.00
Dividends
0.00
0.00
0.00
0.00
- 144,148.00
- 144,148.00
Consolidated comprehensive income
0.00
0.00
3,996,284.50
3,996,284.50
46,236.92
4,042,521.42
At Dec. 31, 2008
306,776,000.00
102,258,376.24
23,093,229.45
432,127,605.69
11,428,780.43
443,556,386.12
At Jan. 1, 2009
306,776,000.00
102,258,376.24
23,093,229.45
432,127,605.69
11,428,780.43
443,556,386.12
Other changes
0.00
0.00
0.00
0.00
0.00
0.00
Dividends
0.00
0.00
0.00
0.00
- 33,817.13
- 33,817.13
0.00
0.00
- 1,532,688.24
- 1,532,688.24
85,743.15
- 1,446,945.09
306,776,000.00
102,258,376.24
21,560,541.21
430,594,917.45
11,480,706.45
442,075,623.90
Consolidated comprehensive income At Dec. 31, 2009
FMG consolidated financial statements 2009
Amended annex to the 2009 consolidated financial statements
Amended annex to the 2009 consolidated financial statements
I. General notes to the consolidated financial statements The consolidated financial statements of Flughafen München GmbH, which had already received the appointed auditors’ unqualified approval and certificate on May 21, 2010, were amended following a significant court ruling affecting a number of parameters applied in the valuation of the financial reserve formed for the restructuring of the Ground Handling division. An expert review of the valuation commissioned by Flughafen München GmbH confirmed both the applicability of the facts and circumstances addressed in the court ruling and the correctness of the valuation of the reserve for the Ground Handling division. In light of these new findings, the consolidated financial statements of Flughafen München GmbH have been amended by executive management subsequent to the receipt of the appointed auditors’ unqualified approval on May 21, 2010, and the new information taken into account in the valuation of the reserve for the restructuring of the Ground Handling division. Flughafen München GmbH (FMG), Munich, manages and coordinates all of the businesses in the FMG Group. FMG, as the parent company, has therefore published consolidated financial statements and a consolidated management report for the FMG Group for fiscal 2009 in accordance with Section 290, Paragraph 1 of the German Commercial Code (HGB).
1. Scope of consolidation The consolidated financial statements also cover the following subsidiaries in addition to corporate parent FMG: − aerogate München Gesellschaft für Luftverkehrsabfertigungen mbH (aerogate), Munich − AeroGround Flughafen München Aviation Support GmbH (AeroGround), Munich − Allresto Flughafen München Hotel und Gaststätten GmbH (Allresto), Munich − CAP Flughafen München Sicherheits-GmbH (CAP), Freising − Cargogate Flughafen München Gesellschaft für Luftverkehrsabfertigungen mbH (Cargogate), Munich − eurotrade Flughafen München Handels-GmbH (eurotrade), Munich − Flughafen München Baugesellschaft mbH (FMBau), Oberding − FM Terminal 2 Immobilien-Verwaltungsgesellschaft mbH & Co oHG (IMMO), Oberding − FMV - Flughafen München Versicherungsvermittlungsgesellschaft mbH (FMV), Freising − MediCare Flughafen München Medizinisches Zentrum GmbH (MediCare), Oberding − Terminal 2 Betriebsgesellschaft mbH & Co oHG (T2BG), Oberding − Beteiligungsgesellschaft mbH der FMG (BetFMG), Freising − mucground Services Flughafen München GmbH (mucground), Freising The yearend accounts of all of the fully consolidated companies are dated December 31, 2009, and have received the full and unqualified approval of the appointed auditor.
91
Amended annex to the 2009 consolidated financial statements
FMG consolidated financial statements 2009
92
2. Principles of consolidation In fiscal 2009, capital consolidation was conducted using the fair-value method in accordance with Section 301, Paragraph 1, Item 2 of the German Commercial Code (HGB). As in the prior year, assets and liabilities were valuated in accordance with German Accounting Standards (DRS), Section 4, “Company acquisitions in consolidated accounts.” EFM – Gesellschaft für Enteisen und Flugzeugschleppen am Flughafen München mbH, Freising, and Bayern Facility Management GmbH, Munich, are reported as associated companies at the value of the proportionate interest in their respective net worth. The two companies were initially consolidated as follows at the value of the proportionate interest in their respective net worth as per Section 312, Paragraph 1, Item 2 of the German Commercial Code: EFM at December 31, 1992, and Bayern Facility Management GmbH at December 31, 2004. EFM’s fiscal year runs from October 1 to September 30. Sales, expenses, earnings, receivables and liabilities within the group of consolidated companies are set off against one another. In fiscal 2009, income from construction projects – comprising €0.5 million for FMG with IMMO, €2.5 million for FMG and FMBau with T2 BG oHG, and €0.3 million for T2 BG oHG and FMBau with FMG – was booked to other capitalized labor, overheads and material for the Group and written down accordingly.
II. Accounting and valuation principles 1. Tangible and intangible assets Changes in Group assets are presented separately. Tangible and intangible assets are valuated at their original cost or at their mandatory capitalized cost of production in accordance with statutory fiscal requirements. Assets with a limited useful life are written down over their anticipated overall service life as per the write-down tables for airport operating companies. The difference between the additional depreciation recorded by Flughafen München GmbH and by FM Terminal 2 Immobilien-Verwaltungsgesellschaft mbH & Co oHG in the accounts prepared for tax purposes and the accounts prepared for financial reporting purposes in fiscal 2009 totaled €24.9 million. This concerns buildings as per Section 7, Paragraph 4, Item 1 of the German Income Tax Code that are operating business assets and are non-residential in character – essentially, buildings belonging to the passenger handling facilities. In accordance with current fiscal regulations, assets costing between €150 and €1,000 are grouped into collective items and depreciated over a period of five years according to the straight-line method, regardless of the assets’ actual useful life.
FMG consolidated financial statements 2009
Amended annex to the 2009 consolidated financial statements
93
2. Financial assets Investments in associated companies are stated at an amount equal to the proportion of the equity stake held in these companies. Other financial assets are stated at the lower of cost or fair value. Low-interest employer loans are stated at their nominal value at the balance-sheet date. 3. Current assets Inventories are mostly stated at their weighted average cost for the past three months and are written down at the lower of cost or fair value to cover risks arising from slow-moving items and drops in price. Substitute plots of land reported as inventories are capitalized at the lower of cost or fair value. Receivables, other current assets, and liquid assets are stated at the lower of nominal or fair value. Identifiable risks are accounted for in valuation adjustments. Appropriate provisions are made to cover general credit risk. 4. Accruals Accruals for pensions are valuated as per Section 6a of the German Income Tax Code (EStG) according to their actuarial value at a 6 percent rate of interest and according to the 2005 G guideline tables produced by Prof. Klaus Heubeck.
Accruals for phased retirement schemes are calculated in accordance with rules issued in a federal finance ministry circular of March 28, 2007 (IV B 2 – S 2175/07/002), as well as guideline tables published by Prof. Klaus Heubeck in 2005, at an interest rate of 5.5 percent. Accruals for anniversaries and benefits, too, are calculated on the basis of Prof. Heubeck’s tables and at an interest rate of 5.5 percent. Other provisions, including tax provisions, take into account all uncertain liabilities and potential losses. They are of a size deemed appropriate to meeting obligations, based on a reasonable commercial assessment. 5. Liabilities Liabilities are valuated at the respective amounts repayable. Liabilities for annuity payments are stated at their cash values. 6. Currency conversion Foreign-currency receivables and liabilities are booked at the respective buying or selling rate and converted at the less favorable rate applicable on the balance-sheet date.
Amended annex to the 2009 consolidated financial statements
FMG consolidated financial statements 2009
94
III. Notes on the balance sheet 1. Changes in Group fixed assets
Acquisition and production costs
At Jan. 1, 2009 €
Additions €
Retirements Reclassifications At Dec. 31, 2009 € € €
26,220,655.40
982,435.05
- 271,884.88
170,814.09
155,174.79
0.00
0.00
- 138,174.79
17,000.00
26,375,830.19
982,435.05
- 271,884.88
32,639.30
27,119,019.66
1. Land, rights similar to land, and buildings, including buildings on land not owned
3,398,962,278.64
30,556,176.45
- 484,535.77
54,914,797.03
3,483,948,716.35
2. Technical equipment and machinery
1,350,359,207.21
12,945,196.89
- 4,799,464.94
3,163,882.01
1,361,668,821.17
3. Other equipment, plant and office equipment
263,891,493.96
10,129,646.90
- 7,942,516.28
2,968,416.11
269,047,040.69
4. Construction in progress and advances on fixed assets
Fixed assets I. Intangible assets
1. Franchises, intellectual property, and similar rights and assets
2. Advances on intangible assets
27,102,019.66
II. Tangible assets
114,691,712.32
34,487,325.46
- 2,354,487.25
- 61,079,734.45
85,744,816.08
5,127,904,692.13
88,118,345.70
- 15,581,004.24
- 32,639.30
5,200,409,394.29
2,557,546.08
1,412,072.51
- 594,392.46
0.00
3,375,226.13
502,402.98
10,000.00
- 104,395.00
0.00
408,007.98
3,059,949.06 5,157,340,471.38
1,422,072.51 90,522,853.26
- 698,787.46 - 16,551,676.58
0.00 0.00
3,783,234.11 5,231,311,648.06
III. Financial assets
1. Investments in associated companies
2. Other loans
FMG consolidated financial statements 2009
Amended annex to the 2009 consolidated financial statements
95
Depreciation
Book values
At Jan. 1, 2009 €
Additions €
Retirements Reclassifications € €
At Dec. 31, 2009 €
At Dec. 31, 2009 At Dec. 31, 2008 € €
- 23,017,996.69
- 1,437,188.43
271,864.88
0.00
- 24,183,320.24
2,918,699.42
0.00
- 17,000.00
0.00
0.00
- 17,000.00
0.00
155,174.79
- 23,017,996.69
- 1,454,188.43
271,864.88
0.00
- 24,200,320.24
2,918,699.42
3,357,833.50
- 1,093,540,689.25
- 59,594,897.38
16,450.00
0.00 - 1,153,119,136.63
- 995,190,332.71
- 51,119,269.22
4,799,464.44
0.00 - 1,041,510,137.49
- 218,136,943.60
- 12,699,990.83
7,891,919.80
0.00
- 222,945,014.63
0.00
0.00
3,202,658.71
2,330,829,579.72 2,305,421,589.39 320,158,683.68
355,168,874.50
46,102,026.06
45,754,550.36
85,744,816.08
114,691,712.32
0.00
0.00
0.00
- 2,306,867,965.56
- 123,414,157.43
12,707,834.24
0.00
0.00
0.00
0.00
0.00
3,375,226.13
2,557,546.08
0.00
0.00
0.00
0.00
0.00
408,007.98
502,402.98
0.00 - 2,329,885,962.25
0.00 - 124,868,345.86
0.00 12,979,699.12
0.00 - 2,417,574,288.75
0.00 0.00 0.00 - 2,441,774,608.99
2,782,835,105.54 2,821,036,726.57
3,783,234.11 3,059,949.06 2,789,537,039.07 2,827,454,509.13
Amended annex to the 2009 consolidated financial statements
FMG consolidated financial statements 2009
96
2. Details of ownership Companies included in the consolidated financial statements
Seat
Share of capital %
aerogate München Gesellschaft für Luftverkehrsabfertigungen mbH
Munich
100.0
AeroGround Flughafen München Aviation Support GmbH
Munich
100.0 1
Allresto Flughafen München Hotel und Gaststätten GmbH
Munich
100.0 1
CAP Flughafen München Sicherheits-GmbH
Freising
76.1
Cargogate Flughafen München GmbH Gesellschaft für Luftverkehrsabfertigungen mbH
Munich
100.0 1
eurotrade Flughafen München Handels-GmbH
Munich
100.0 1
Flughafen München Baugesellschaft mbH
Oberding
FM Terminal 2 Immobilien-Verwaltungsgesellschaft mbH & Co oHG
Oberding
60.0 1
Freising
100.0 1
FMV – Flughafen München Versicherungsvermittlungsgesellschaft mbH MediCare Flughafen München Medizinisches Zentrum GmbH
Oberding
mucground Services Flughafen München GmbH Terminal 2 Betriebsgesellschaft mbH & Co oHG Beteiligungsgesellschaft mbH der FMG 1
60.0
51.0
Freising
100.0 1
Oberding Freising
60.0 1 100.0 1
Seat
Share of capital
xemption provisions apply regarding disclosure of the yearend accounts as per Section 264, Paragraph 3 and Section E 264b of the German Commercial Code.
Associated companies
% Bayern Facility Management GmbH EFM – Gesellschaft für Enteisen und Flugzeugschleppen am Flughafen München mbH
In fiscal 2009, EFM’s carrying value grew from €1.235 million at January 1, 2009, to €2.166 million at December 31, 2009, and the unit generated a proportionate net profit for the year of €1.411 million with a payout of €480 thousand.
Munich Freising
49.0 49.0
The carrying value of Bayern Facility Management GmbH, Munich, contracted from €1.318 million at January 1, 2009, to €1.204 million at December 31, 2009. The company generated a proportionate net profit for the year of €0 thousand with a payout of €114 thousand.
FMG consolidated financial statements 2009
Amended annex to the 2009 consolidated financial statements
97
In accordance with Section 311, Paragraph 2 of the German Commercial Code (HGB), MediCare’s 20 percent stake in Radiologisches Diagnostikzentrum München Airport GmbH is not included at equity in the consolidated financial statements as this investment is of little significance in terms of presenting an accurate picture of the Group’s assets and financial and earnings situation. 3. Receivables and other assets Other assets totaling €14.5 million are due within more than one year. All other receivables and other assets are due within one year. 4. Equity The FMG Group’s retained earnings comprise other retained earnings from Allresto, CAP, eurotrade, and FMG, earnings from consolidation entries, and earnings from subsidiaries’ net income. The Group’s consolidated net income is calculated as follows: Dec. 31, 2009 € thousand Consolidated net loss for the year Minority interest in net loss for the year Profit carried forward Consolidated net income
- 1,447 - 86 15,109 13,576
Minority interests comprise CAP (+ €63 thousand), IMMO (+ €10.00 million), MediCare (+ €196 thousand), T2 BG (+ €1.210 million), and FMBau (+ €12 thousand). The change in consolidated equity is presented separately in the equity table. 5. Accruals Accruals for deferred taxes in the FMG consolidated financial statements comprise €1.3 million for current trade income and corporation tax and €39.4 million for deferred trade income and corporation tax. In the review year, no accruals were formed within the Group for deferred trade income tax or corporate tax in view of the negative trend in the corporate parent’s earnings. In fiscal 2009, the FMG Group had other accruals of €255.0 million. These essentially comprise €111.4 million for the restructuring of the Ground Handling division, €26.9 million for settlement backlogs and future obligations in connection with phased retirement programs, €22.2 million in balance-sheet provisions for the Ground Handling division, €12.7 million for vacation and overtime entitlements and other HR expense, €9.9 million for specific regional impact fund projects, €6.3 million for the fulfillment of statutory requirements concerning fire extinguishing systems, and €38.8 million for maintenance work, major repairs, restoration commitments, and outstanding invoices for construction work.
Amended annex to the 2009 consolidated financial statements
FMG consolidated financial statements 2009
98
6. Liabilities Liabilities table Dec. 31, 2009 Total
Residual term up to 1 year
Residual term 1 to 5 years
Residual term over 5 years
€ 10,405,246.14
€ 10,405,246.14
€ 0.00
€ 0.00
1,558,454,908.37
345,850,390.31
273,873,162.06
938,731,356.00
43,075,094.67
40,022,414.95
2,997,767.10
54,912.62
1,578,998.23
1,578,998.23
0.00
0.00
Other liabilities
69,054,450.30
18,362,491.74
50,391,074.89
300,883.67
of which to insurance companies
43,605,786.34
37,786.34
43,568,000.00
0.00
5,598,961.30
5,598,961.30
0.00
0.00
543,573.06 1,682,568,697.71
543,573.06 416,219,541.37
0.00 327,262,004.05
0.00 939,087,152.29
Liabilities to shareholders Liabilities to banks Trade accounts payable Liabilities to associated companies
of which in taxes of which in social welfare
Dec. 31, 2008 Total
Residual term up to 1 year
Residual term 1 to 5 years
Residual term over 5 years
€ 43,492,081.49
€ 43,492,081.49
€ 0.00
€ 0.00
1,623,078,837.69
351,345,083.57
60,587,956.97
57,594,878.71
2,993,078.26
0.00
372,134.92
372,134.92
0.00
0.00
Other liabilities
71,608,546.58
20,973,600.99
6,722,124.34
43,912,821.25
of which to insurance companies
43,716,869.86
148,869.86
0.00
43,568,000.00
1,561,756.79
1,561,756.79
0.00
0.00
21,252.84 1,799,139,557.65
21,252.84 473,777,779.68
Liabilities to shareholders Liabilities to banks Trade accounts payable Liabilities to associated companies
of which in taxes of which in social welfare
Liabilities to associated companies of €1.6 million consisted entirely of purchased services. To secure all current liabilities to banks (€972.4 million at December 31, 2009) and future liabilities from loans, two subsidiaries have relinquished their entitlements in connection
179,793,162.06 1,091,940,592.06
0.00 0.00 189,508,364.66 1,135,853,413.31
with rents, leases and other transfers of use, as well as entitlements issuing from land-use agreements and loss-adjustment entitlements established in company agreements. In addition, a declaration of assignment is in place concerning rights and entitlements from
FMG consolidated financial statements 2009
Amended annex to the 2009 consolidated financial statements
99
existing and future insurances and any collateral agreements, barring rights and entitlements from third-party liability insurance. In addition, furniture, fittings, movables and production equipment of two subsidiaries, along with the airport buildings of one of these subsidiaries, were assigned to a bank under the transfer of a storage security agreement.
IV. Notes on the income statement The consolidated income statement was prepared according to the total cost method. 1. Proceeds on sales Proceeds on sales are broken down by areas of activity that reflect the internal organizational structure. 2009
2008 1
€ million
%
€ million
%
Aviation, Ground Handling
511.9
52.2
550.7
52.8
Retail and Services
269.9
27.5
285.6
27.3
Corporate Real Estate Management and Development, and Support and Central divisions
199.5
20.3
207.4
19.9
981.3
100.0
1,043.7
100.0
1
he prior-year figures have been adjusted to reflect changes in the allocation of items, in particular parking revenue. In fiscal 2008, sales totaled €281.2 million at ReT tail and Services and €211.8 million at Corporate Real Estate Management and Development and the Support and Central divisions.
2. Own work capitalized/Other operating income For the most part, our own work capitalized in 2009 comprised €5.4 million in planning work for the airport’s third runway. In addition, there were €3.3 million in income from construction work within the Group. Other operating income includes €27.5 million from the reversal of contractual provisions in the Ground Handling division.
Additional other operating income items include €11.3 million for the write-back of current accruals that were formed in the past but were not required in fiscal 2009, €5.1 million in revenue from advertising in subsidiaries, and €4.7 million from the sale of constant maturity swaps.
Amended annex to the 2009 consolidated financial statements
FMG consolidated financial statements 2009
100
V. Additional notes 1. Contingent liabilities To cover risks pertaining to back payments of wage taxes and social security contributions at its security subsidiary and thus avert a potential balance-sheet insolvency, Flughafen München GmbH issued a declaration of backing on behalf of the subsidiary that exceeds the subsidiary’s accruals by an amount of up to €4 million. Given that the court ruling issued on May 28, 2010, which was applied as the basis for the valuation of the reserve for the restructuring of Ground Handling, does not yet have legal force, there remains a theoretical risk of additional payment obligations of up to €76.4 million in connection with the division’s restructuring. 2. Other financial obligations Existing real-estate lease and building rental contracts are expected to incur costs of around €48.9 million in 2010. The burden through to the end of the basic contractual lease term will amount to €224.2 million. Obligations issuing from a subsidiary’s maintenance, upkeep and insurance contracts will amount to €8.4 million through to the end of the contractual terms. Existing construction, supply and service contracts and agreements with planners, architects and engineers pertain essentially to ongoing business operations and are of a scope consistent with FMG’s business operations. The company also has additional obligations in connection with environmental protection measures and the honoring of public-law requirements. Obligations issuing from service agreements and purchasing commitments amount to €5.4 million. 3. Derivative financial instruments The FMG Group had the following derivative financial instruments at the balance-sheet date:
– Twenty-nine payer swaps with a volume of €979.4 million and terms through to 2016. At December 31, 2009, the payer swaps had a market value of negative €72.9 million. – Two receiver swaps with terms through to 2015, a volume of €190 million, and a market value of €10.3 million. – One cap with a term through to 2010, a volume of €25 million and a market value of negative €0.1 million. The market values of all of the derivative financial instruments were supplied by the relevant banks and were computed by these banks using the discounted cash flow method and current interest structure curves. Four constant maturity swaps with a total volume of €178 million were closed out in 2009. The proceeds on these sales totaled €4.7 million. The reserve of €1.3 million formed a year earlier as a hedge against losses was reversed. All other interest rate derivatives on the books at the balance-sheet date were combined with underlying transactions for valuation purposes and are not stated separately in the balance sheet. In addition, two loans in existence at the balancesheet date that were originally taken out in Japanese yen were transferred into euros by means of cross-currency swaps (total volume: €43.6 million). 4. Other disclosures In fiscal 2009, the auditors of the Group’s financial statements received €101.6 thousand for auditing and other services provided to the Group, plus € 33.9 thousand for the subsidiary companies included in the full consolidation. Expenses for auditing services provided by other auditors to other subsidiaries included in the Group’s financial statements totaled € 31.1 thousand in the review year.
FMG consolidated financial statements 2009
Amended annex to the 2009 consolidated financial statements
101
5. Executive board Members of the executive board in 2009: − Dr. Michael Kerkloh President and Chief Executive Officer − Walter Vill Vice President and Chief Financial Officer − Thomas Weyer Chief Operating Officer 6. Supervisory board Members of the supervisory board in 2009: − Georg Fahrenschon Minister of State, Bavarian State Ministry of Finance, Munich, chairman Free State of Bavaria − Josef Poxleitner Director-General, Board of Building and Public Works in the Bavarian State Ministry of Home Affairs − Dr. Hans Schleicher Director-General, Bavarian State Ministry for Economic Affairs, Infrastructure, Transport and Technology − Klaus Weigert Director-General, Bavarian State Ministry of Finance, Munich Federal Republic of Germany − Dr. Dieter Knoll Ministerial councilor, Federal Ministry of Finance, Bonn − Robert Scholl Director-General, Federal Ministry of Transport, Building and Housing
City of Munich − Christian Ude Chief Mayor, City of Munich − Dr. Reinhard Wieczorek Councilor, City of Munich, supervisory board member until March 31, 2009 − Dieter Reiter Councilor, City of Munich, supervisory board member from March 31, 2009 Employee representatives − Thomas Bihler Clerical employee, employee representative − Heinrich Birner Director of the ver.di labor union, Munich region − Michael Börries Certified aircraft handler, works council chairman from July 24, 2009, supervisory board member from July 24, 2009 − Hans-Joachim Bues Senior Vice President Corporate Communications, executive employees’ representative − Willy Graßl Head of Operations, works council chairman until July 24, 2009 − Ralf Krüger Clerical employee, full-time works councilor, supervisory board member until July 24, 2009 − Orhan Kurtulan Certified aircraft handler, full-time works councilor − Anna Müller Clerical employee, full-time works councilor − Sabine Peters Clerical employee, supervisory board member from July 24, 2009 − Otto Siegl Clerical employee, full-time works councilor, supervisory board member until July 24, 2009
Amended annex to the 2009 consolidated financial statements
FMG consolidated financial statements 2009
102
7. Executive board remuneration and loans Remuneration of executive board members consists of a fixed salary and a variable, performance-based amount: Remuneration in 2009
Fixed € thousand
Variable
Total
€ thousand € thousand
Dr. Michael Kerkloh
250.0
113.5
363.5
Walter Vill
196.5
78.2
274.7
Thomas Weyer Total
220.0 666.5
62.8 254.5
282.8 921.0
8. Employees With the introduction of a new collective labor agreement, we stopped differentiating between wage, salaried and temporary employees in our reporting in fiscal 2006. Barring members of executive management but including all employees on unlimited, fixed-term and trainee contracts, the FMG Group had an average headcount of 7,090 employees in fiscal 2009 (2008: 7,379), as defined in Section 267, Paragraph 5 of the German Commercial Code.
In addition, executive board members received In addition, 227 apprentices were undergoing emoluments in kind and contractually agreed fringe vocational training at FMG Group units in 2009 benefits totaling €38.7 thousand in 2009. Reserves (2008: 230). totaling €1.836 million were also formed at December 31, 2009, to cover future pension obligations. Former members of executive management and surviving dependents of former members received emoluments of €565.2 thousand in fiscal 2009. Reserves of €5.177 million were formed to cover future pension payments and accrued pension rights of surviving dependents.
Munich, July 9, 2010
Dr. Michael Kerkloh Walter Vill
Emoluments paid to supervisory board members totaled €16.7 thousand.
Thomas Weyer
FMG consolidated financial statements 2009
Independent auditor’s report
Independent auditor’s report
We have audited the consolidated financial statements prepared by Flughafen München GmbH, Munich, comprising the balance sheet, income statement, cash flow statement, equity statement, and the notes to the consolidated financial statements, together with the consolidated management report for the fiscal year from January 1 to December 31, 2009. The preparation of the consolidated financial statements and the consolidated management report in accordance with German commercial-law requirements is the responsibility of the company’s management. Our responsibility as auditors is to express an opinion, based on our audit, of the consolidated financial statements and of the consolidated management report. We conducted our audit of the consolidated financial statements in accordance with Section 317 of the German Commercial Code (HGB) and with generally accepted standards for the audit of financial statements in Germany as issued by the Institute of Public Auditors in Germany (IDW). These standards require that we plan and perform the audit in such a manner that, under the principles of proper accounting, any misstatements materially affecting the presentation of the net assets, financial position and results of operations in the consolidated financial statements or in the consolidated management report are detected with reasonable assurance. Knowledge of the business activities and the economic and legal environment of Flughafen München GmbH and its group of companies and expectations as to possible misstatements are taken into account in the determination of audit procedures. The effectiveness of the accountingrelated internal control system and the evidence supporting the disclosures in the consolidated financial statements and the consolidated management report are examined primarily on a test basis within the framework of the audit. The audit encompasses 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 applied and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial
statements and the consolidated 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 the statutory requirements and give a true and fair view of the net assets, financial position and results of operations of the FMG Group in accordance with these requirements. The consolidated management report is consistent with the consolidated financial statements and, as a whole, provides a suitable view of the Group’s position as well as the opportunities and risks associated with its future development. This report is issued on the basis of our audit of the consolidated financial statements concluded on May 21, 2010, as well as a supplementary audit concluded on July 12, 2010, that addressed changes in individual balance-sheet items pertaining to equity, reserves and liabilities to shareholders, and to attendant changes in the income statement, equity statement, cash flow statement and consolidated management statement. Account is given for the changes made by the company in the amended annex to the consolidated financial statements. Our supplementary audit has not led to any reservations.
Munich, May 21, 2010/July 12, 2010
SUSAT & PARTNER OHG Appointed auditors Dr. Kirnberger Auditor Schuster Auditor
103
104
Publisher Flughafen München GmbH Finance and Controlling Corporate Communications Tel.: +49 89 975-00 Editor Dr. Reingard Schöttl Internal Communications, Print and Online Media Flughafen München GmbH P.O. Box 23 17 55 85326 München Germany www.munich-airport.de Photographs Alex Tino Friedel Jan Frommel Dr. Werner Hennies Christian Höhn Koch + Partner Architekten und Stadtplaner GmbH Sixt AG Collected by European Space Imaging under the WorldView Global Alliance. © DigitalGlobe, 2010 Design RED, Munich/Krailling Translation Tom Rattray Printing G. Peschke Druckerei GmbH, Munich Paper PhoeniXmotion Xenon
